For decades, our Investment Research Analysts have journeyed to Omaha for this distinct gathering that Warren Buffett and Charlie Munger host. It’s an opportunity to hear astute insights and, as usual, this year’s event did not disappoint.
Here are some highlights from our perspective:
- Berkshire is repurchasing its own shares and they think the stock is selling below its intrinsic value.
- Mr. Buffett and Mr. Munger believe that their insurance business is one of the most valuable in the world. For example:
- The growth and success of GEICO were highlighted.*
- Berkshire’s insurance operations are unmatched in financial strength.
- The company has an immense cash supply that gives them the flexibility to make a large acquisition or buy back more stock.
This annual trek always reaffirms our passion for what we do and why we do it.
When FAM Funds assesses investments, we don’t make macroeconomic predictions. We adhere to a rigorous, systematic, disciplined investment approach. Our team identifies quality businesses that we believe are positioned to increase their intrinsic value over time and then purchases shares in them at what we deem to be discounted prices.
Charlie Munger stated this at a previous meeting, “Microeconomics is what we do, macro is what we have to put up with.” We think this quote exemplifies our process very well. While we are acutely aware of macro events, we take a business-first, bottom-up approach to investing.
*Past performance does not indicate future results.