A single Berkshire Hathaway share is bigger than most people's entire investment portfolios. Still, Berkshire shares have never been split. Money managers saw an opportunity in this-they started mutual funds that would pool money from smaller investors to clone Berkshire’s portfolio. Warren saw the risks faced by smaller investors in this and found an alternative to stock splits.
Warren Buffett has unconventional views in almost every aspect of investing. He dismissed the use of beta as a measure of risk, did not think he needed diversification to manage risk and called growth investing speculative.
In this episode, covering Buffett’s letters from 1992 to 1996, we travel back in time as we discuss two of his star investments: GEICO and American Express.
00:00 Introduction
00:55 Berkshire’s share price
02:52 Berkshire avoided stock splits
04:15 Agenda and economic scene
05:27 Investments in 1990s
06:09 Fully acquired GEICO
09:02 American Express
10:35 Types of businesses preferred by Buffett
12:25 Not-so-diversified portfolio
14:24 Buffett disliked Beta
17:06 Value vs growth investing
20:15 Is size a problem or an advantage?
23:09 Buffett’s investing mistakes
25:47 Earnings target for 2000
27:27 Alternative to stock split
32:08 Summary
Previous episodes:
Episode 1: • Ep. 1 - Investment Phi...
Episode 2: • Ep. 2 | How Warren and...
Episode 3: • Ep. 3 | Warren and Cha...
Other Important Links
You can put your stock market knowledge to the test by taking the Varsity Certification test here: zerodha.com/varsity/certified/
Open Zerodha Account - zerodha.com/open-account?c=ZM...
Social Media
Twitter - x.com/ZerodhaVarsity
Instagram - instagram.com/zerodhavars...
#warrenbuffett #charliemunger #berkshirehathaway #investmentrisks #beta #diversification #americanexpress #buffett #zerodha #zerodhavarsity #shareholder #value #growth
Негізгі бет Ep. 4 | Buffett's views on stock splits, beta, diversfication | Stories of GEICO, American Express
Пікірлер: 26