Our top 10 doses of Warren Buffett wisdom

Owen Rask is joined by Drew Meredith, CFP to reflect on Warren Buffett's latest Berkshire Hathaway (BRK) shareholder letter and share 10 pieces of Buffett's wisdom.

5 of Owen's favourite Buffett ideas are as follows:

1. Buffett the teacher & the Orangutan effect. Teach a monkey and you'll be a better investor.
2. Closing the market for 5 years anchors you to valuation, not price.
3. "Favorable long-term prospects" and what it means. It doesn't mean themes or sectors. It means strong franchises.
4. Staying invested - Buffett has $US144 billion of cash! He's wanted to be 100% equities since the 1960s!
5. Focus on Owner earnings - increasing asset values & dividend income are what matter.

Drew's 5 Buffett's insights:

1. Work-life balance doesn't get you ahead. Buffett eats annual reports for breakfast.
2. Buffett does business-picking, not stock-picking.
3. Compounding returns, not indexing. Buffett is a private equity investor.
4. Buffett's big four & true diversification in action. Insurance & Statutory fund; Apple, Railroads and Energy.
5. Decarbonising the world is going to start at the top.

Resources:

Buffett's annual letters

Drew's article for Wattle Partners

Owen's article for Rask

Buffett's GEICO research from 1951:

Get in touch with Owen or Drew:

Owen's Twitter: https://www.twitter.com/owenrask

Send Drew an email via Wattle Partners: http://www.wattlepartners.com.au/contact-1

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~~ A note for transparency: we receive nothing ~~

Rask, the publisher of the podcast series, is a privately owned company. It's owned and run by Owen. But you should know that Drew is a shareholder in The Rask Group Pty Ltd, and Wattle Partners provides us with operational support (e.g. we share an office space). But to be clear: Rask does not receive anything from Drew or Wattle Partners appearing on the show, or if you decide to his/their services. Owen and Drew are just like-minded investors who want to help people invest better. You can find out more by reading Rask's Financial Services Guide -- or simply by asking Owen or Drew.

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“The best part was the disclaimer” – said no-one ever

This information warning is actually important (that’s why we write it in the same size font... unlike our competitors).

This podcast contains general financial advice only, issued by The Rask Group Pty Ltd. This information does not take into account your needs, goals, or objectives. So please consult a licensed and trusted financial adviser before acting on the information. Investing is risky and can result in capital loss. Nothing in this podcast should be considered as a forecast or guarantee of future returns. Please read Rask Australia's Financial Services Guide (FSG) available on our website to learn more about us, what we offer and our podcasts.

Date of recording: 3 March, 2022

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