Warren Buffett and Charlie Munger made some fantastic observations during the 50th anniversary shareholder meeting this year in Omaha, Nebraska. Since they are two of the greatest investors that the world has ever known, it’s important to quote these two individuals to learn from their memorable life lessons.
Our top five favorite quotes include:
- Dieting – Warren Buffett said: “I am one quarter Coca-Cola… If I had eaten broccoli and Brussel sprouts, I don’t think I would have lived as long.” Then Buffett added, “I don’t see a lot of smiles on the faces of people at Whole Foods.”
- Predicting the future – Buffett made it abundantly clear that Berkshire Hathaway has “never made an acquisition based on macro factors,” and said that this is because “we know we don’t know.” It stressful to worry about interest rates and the global economy and things that you have no control over. So Buffett and Munger focus on things that they can control and predict.
- About risk – Warren Buffett explained that he and Charlie Munger had missed some important opportunities early on in their career and said that they could have “pushed harder.” Munger then replied: “It’s obviously true. If we’d used the leverage that some others did, Berkshire would have been much bigger… But we would have been sweating at night. It’s crazy to sweat at night.” And then Buffett slyly added, “Over financial things.”
- Finding the best people – when the duo were asked about Ted Weschler and Todd Combs, Berkshire Hathaway’s current investment managers, Charlie Munger said: “We want people where… every aspect about their personality makes you want to be around them… Trust first, ability second.” You have to surround yourself with people that you trust and want to be around according to Munger, and this is exceedingly sound advice.
- Reputations – when asked about building the culture of Berkshire Hathaway, Charlie Munger made a suggestion saying that it’s about “behaving well as you go through life.” And then Buffett added, “Over time, you get the reputation you deserve… I believe the same is true for companies.”