7 Lessons & 4 Warnings From Buffett's Letter And Berkshire's Earnings

Buffett's shareholder letter is out alongside Berkshire's earnings for 2023. Growing earnings for BRK but Buffett gives a good perspective on investing in BRK over time and what you should expect.

0:00 Compounding and Risk
0:56 BRK Earnings
2:53 BRK Valuation
3:25 The Economy
3:40 Net Worth
5:07 BRK Returns Ahead
7:03 The Market
8:57 Be Prepared
9:37 BRK Businesses
11:16 Price
11:40 Buybacks
13:06 BRK a Buy

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[andypicken]

I read ever word of Warrens letter, it gave me the impression that it was written by a man that was at the very apex of his profession.
Thats for posting Sven

[johnmcquaid]

This is either the Best video of 2024 or the Greatest video of 2024.

I was anticipating this video & you did not disappoint. Thank-you!

[theodoroseidler]

Nice video. But things to point out are: 1- the position in Apple is very large. And Apple is very expensive atm and buying BRK or S&P500 now seems silly. 2- the largest advantage, as a foreigner, of BRK vs S&P500 is that Berkshire doesn't pay dividends (which are taxed at 30% for foreigners) and the S&P500 pays dividends which must be reinvested after taxes.

[Tucano]

Another great video Sven. But there is a certainty that not even Mr. Buffet can overcome. He is 93 years old. What happens when he inevitably passes away? Will BRK management and investment policies change, what will be the impact on its investors who have engaged in a culkt of personality for so many years?

[SejuaniMedio]

I'm afraid that the right method to valuate that company is the Price/BookValue (it is not an oppinion, it is actually what Buffet says), and that ratio is above the average. So... it is not currently cheap.

[pongop]

Great video! Thank you for sharing the lessons and warnings from Buffet's letter and discussing Berkshire. I'm holding and waiting for lower prices.

[mrjuvy]

been with brk b since 2009, smiling now!

[Slickpete]

*Sven please do an investment analysis video on the big 5 Canadian Bank Stocks, under valued? would be interesting to hear your opinion.*

[davidlazarus]

Great video as always. I bought Berkshire at $307 and i dont think i will sell in my lifetime.
As you mentioned Sven, Berkshire is a better buy than the S&P over the long term. Buffett has mentioned that the returns going forward will probably not be spectacular, given the size of the company, and the rich valuations of many stocks on the S&P. I however believe that the opportunities will present themselves, and Berkshire will be in a cash flush position to take advantage.

[FallenAngelQS]

Hi, Sven! What do you think about WBD now. I remember you analyzed it when the price was 14$ now it is 8, 8$ Very interesting to know your opinion

[mathewwilson]

Great commentary as always. Thank you.

[arbitrage-technologies]

thank u to eat the work for us. u go deep in details, what 80% of the street, dont.

[Pieter]

I love BRK. The only thing that really worries me is Buffett's age. What happens to the stock if he passes away. He's 93 years old

[jingjingwei]

I’m a beginning investor and in the middle age, want to invest for my retirement. Should I wait for a better price to go into or should I invest an amount of money on a regular basis like every month?

[MrGmac]

Hey Sven! Hope you can clarify this question I have. Why do you include the stock portfolio when calculating PE? Shouldn't you just subtract the portfolio value before calculating the PE based on earnings from companies owned and cash. Cause in that case, PE will be around 14. I view the stock portfolio as its own entity. Thanks.

[boglehead]

In your video in October 20th 2018 you said the same thing. Im glad i did not sell my S&P 500 to buy Berkshire. S&P 500 crushed Warren Buffet since then.

[travellingmojo]

Always grateful for your insights into stocks. How do you feel that BRK's biggest position is about 56% in Apple? Isn't it basically an Apple ETF? Or do you feel their portfolio is diverse enough to protect against any potential downsides with Apple?

[jonnes__]

🗽 The BRK stock developed very well... 👍👍
The 37.4 billion $ are the earnings form BRK operations, but w/o the earnings from investments in AAPL, etc.. Is this correct?
.

[dredoctor]

Good lessons. Someone in a discussion said to me, I am waiting untill Warren Buffet dies so the stock will drop in value. I laughed at him for saying such a silly thing. 1 Because it is already a great stock, don't wait for it and 2 "don't you think that what you are doing is trying to find a reason for buying something that is properly valued and others are thinking the same". He than laughed in my face for saying stupid things and I had to answer with "ignorance is bliss".
Thanks Charlie, Warren, Lynch, Kahnemann, Sven and so on and on... teaching lifelong lessons are more important.

[Rough-lavishness]

Hi Sven, love the videos
I would really love to get your opinion on Warner brothers discovery, I'm not invested whatsoever but I have been looking into it recently and it looks like a good business going through a difficult time, but it could also be a value trap