3 Lessons From Warren Buffett’s NEW Annual Letter

Warren Buffett is someone you must study if you are interested in business and investing. Every year, Buffett writes a letter to shareholders that is packed with valuable information and wisdom. These are must-read letters. Buffett just released a new letter to complete Berkshire’s 2022 Fiscal year. Today, I’m going to share 3 lessons from Warren Buffett’s new annual letter. Specifically one of these lessons, our dividend-focused investors will love. Buffett calls this The Secret Sauce.

My Recent Warren Buffett Videos:

Timestamps:
Overview: 0:00
Lesson 1 (Mistakes & Creative Destruction): 1:37
Lesson 2 (The Secret Sauce): 3:16
Lesson 3 (Share Buybacks): 6:01
Read More: 8:48

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Disclaimer: This is my opinion and not to be considered financial advice

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[DividendData]

What was your favorite part of his 2022 letter?

[jessicamamikina]

There might be an economical turmoil but there is no doubt that this is still the best time to invest.

[smartmoneyadvice]

Just read the letter this morning. I’ve been reading the letters for a decade now. You can learn more in those letters than what you would get with an mba.

[arigutman]

So many timeless insights from Buffett, thank you for sharing some of them.. World needs more Buffett investors, enough of these meme stock investors!

[archoplites]

Buffet, Munger, and Berkshire have been and continue to provide wisdom for the new, old...all investors. I do get disappointed with these so called new modern investors, that call these guys old fossils and their investing style has passed. Buffet and Munger know business fundamentals and don't follow hype.

[elijahethan]

Recently started out an investment manager and it turned out to be exactly what I was looking for. When I look back, 😢 On over 150k my rate of return 3/1.5 % on buy & hold. Disaster. Long story short I wish I could have took this path long ago. The positioning is just different and I know that this will get me on the right track.

[Alphahydro]

These days, I don't consider purchasing companies if they don't do buybacks. Big or small, buybacks can add to your overall position growth.

[anulearner]

Buffet is superior businesses manager!

[howelltaylor]

If you had just invested in all Tobacco stocks reinvested the dividend over the same period of time you would have done better than Buffett.

[shadowninja]

The biggest problem with Share Buybacks is that companies often waste shareholder money on them. Just look at a chart of how much money has been spent annually on Share Buybacks, and put a chart of the S&P500 next to it. You'll see that Buybacks tend to be at their highest when the market is most overvalued, and at their lowest after the market has crashed and stocks are cheap. In other words we talk all the time about how terrible the average investor is, but we never acknowledge that businesses are also terrible investors when it comes to stock buybacks.

[autobotdiva]

get good index and funds and invest to the max, especially when you dont have responsibilites

[TortoiseInvesting]

Buffet is a big inspiration for me, the man knows his stuff and what works!

[Tippix]

I think taxing buybacks is a good Thing. It gives Company the insentive to look for other ways to deploy capital and invest into innovation and creating Jobs.

[emo]

I'm a huge WB fan. The man knows how to make money. He loves to invest in solid companies and healthy dividends are just the cherry on top for him. But if WB becomes a controlling shareholder, he guts or deletes the dividend. OXY is a good example of this. He was asked in an interview why and if ever Berkshire would give a dividend and he said no. His belief is, he and his cohorts know how to use a company's money to reinvest, and retail/wall street shareholders would just squander it. He
will take a company's divs all day long, but will not give/restrict, if he has a controlling stake. I believe, to paraphrase, he said divs are free money for him, but are a foolish business decision. He will take KO, APPL and others in a heartbeat, but if gains enough for control or ownership he again as stated, will gut/restrict the div. Read up on WB's lifeline he threw to QXY. Man is smart like a fox and by following some of his portfolio, he has made me a lot of money. 😎

[bennettbutler]

The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400, 000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

[krum]

Cool. Consider making intro shorter haha

[ChrisCash]

You just sold intel after they made the best business decision in years for sustainability long term. No judgements just thought it was a little funny based on the video subject.

[guyesmith]

Loves dividends. But has he ever paid a dividend to his dedicated shareholders? Wondering.

[russwelday]

Warren Buffett's reasoning on buybacks is self-serving and specious. If a company wants to make more money, sell more product. Buying back shares is almost insider trading as the corp knows 90% of what's going on where the buyer in the open market knows much much less. Management is competing with would be owners. They can even rig events so the stock price falls so they can make buybacks.

[jloos]

BUFFET DID SAY "TAX ME MORE!!!!" CONGRESS JUST DID!....NOW SHUT UP!