Buffett: I made a mistake two years ago and sold some Apple stock

Known as the "Spring Festival Gala in the investment community" , the Buffett Shareholders Meeting came to an end on the evening of May 6, Beijing time.

During more than five hours of interactive sessions, 93-year-old Warren Buffett and 99-year-old Mr. Charlie Munger accepted questions from investors around the world while eating See's candy .

This is the 59th time Buffett has participated in the question and answer session of the shareholder meeting. In this shareholder meeting, two wise investment masters once again shared their philosophies on investment and life with investors, and discussed hot topics such as artificial intelligence , chip industry , new energy , US bank crisis , Apple, etc. that the market is concerned about. were discussed.

Source: The Paper

Master Xin has selected the answers related to artificial intelligence, chip industry, etc. for readers’ reference.

Munger is skeptical of artificial intelligence. In response to a question from Singaporean investors about artificial intelligence, Munger said, "If you go to BYD's factory in China, you will see robots everywhere, and the usage rate is really high, so I think the use of robots will More and more around the world. However, I am a little confused by some of the hype , especially for artificial intelligence. I think some old-fashioned intelligence is still very useful.

Buffett said, "AI can indeed do a lot of things, but it can't tell jokes. Bill Gates has told me before that it can't be humorous. But it can do a lot of things, which makes me think There's some concern because I don't think we have complete control over it ."

At the same time, Buffett believes that we have no choice in whether to accept AI technology. We must accept it, deal with it, and use it . "When you start a new technology, Einstein mentioned it before, it may change the world. I also want to mention that in this part of artificial intelligence, it can change the face of the world, but it cannot change people. thoughts and behaviors.”

Buffett said that Berkshire Hathaway's shareholding in Apple is 5.6%, but it definitely does not account for 35% of the investment portfolio. Buffett also said that holding shares in Apple has made a huge contribution to the company's operating profits . "Apple has a big advantage. They continue to buy back their own shares, and their value goes up. They have a lot of outstanding shares, and our value goes up without us having to do anything."

Buffett used "unparalleled" to describe the close relationship between Apple and consumers. "Consumers are even willing to spend $1,500 to buy an iPhone. Some people may spend $35,000 to buy a second car. But if they were given the choice between giving up their cell phones or their cars, they would give up their cars .”

However, Buffett also said that he made some mistakes and sold some Apple stocks two years ago. " It was a stupid decision at the time ."

Someone asked why Buffett suddenly sold 80% of his US$5 billion stake in TSMC in the past few months ? Buffett did not directly answer this.

But Buffett spoke highly of TSMC. He believes that TSMC is one of the most well-managed and important companies in the world and will not change even in 5 to 20 years.

"I have reassessed that, although many people want to increase chip production capacity in the United States, I think it can only stay in (China) Taiwan. We are involved in some of the chip work in Arizona through a subsidiary purchased by Allegheny, but At least in my opinion, we don't have a company that can compare to TSMC . This company has extraordinary leadership, not to mention they have a 91-year-old founder, this company is great."

An audience member asked Buffett if he thought Elon Musk overestimated himself. Buffett's response was, "Yes, I think Elon Musk overestimates himself, but he's really, really smart . Even if he overestimates himself, he's still a very talented person."

" We were playing games, and he was doing big things . We just chose the easy things to do... and didn't want to have so many failures. Everything he did, it took guts and courage and even a little bit of madness. But It would be torture for us. I like the way I live now, and taking risks like he does, I may not enjoy it, and he won’t enjoy the lifestyle we live.”

A 15-year-old audience asked Buffett and Munger for advice: How can you avoid making big mistakes in your investment career? In this regard, Buffett and Munger put forward a series of advice.

Buffett: You should write your own obituary and then figure out how to achieve the accomplishments mentioned . Secondly, when it comes to corporate mistakes, it doesn’t mean that you can point them out and you won’t make mistakes in the future.

Munger: It’s actually very simple, just spend less than you earn, live within your means , avoid such “toxic” people and “toxic” activities around you , learn as you go , and learn to be grateful. . If you do all this, I'm sure you will succeed. If you don't do it, you'll need a lot of luck. But you don’t want to put your life on luck.

Buffett: Let me add one more point here. You need to know how others mislead others, and then avoid being misled by such people. At the same time, do not mislead others.

Munger: These "toxic" people try to fool you, lie to you, and make empty promises, but one of the most important lessons in life is to get them out of your life, and fast .

BUFFETT: I would also add that it's better to do it strategically, but really get them out of your life.

Munger: Yes, I don’t mind using some good strategies, and it’s okay to even bear some financial costs, but get him out of your life quickly.

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