1997 Annual Meeting
Meeting discussing record stock price, Munger's "awful" long-term view of markets, and Buffett's advice to investors to buy index funds.
1997 Annual Meeting
Date: 1997 Location: Omaha, Nebraska Attendees: Warren Buffett (66), Charlie Munger (73) Source: Full Transcript
Overview
The 1997 annual meeting discussed Berkshire's record stock price, Munger's "awful" long-term view of markets, and Buffett's advice for investors.
Opening
Buffett on the price:
"Our stock hit new highs. But we're not focused on the price."
On fundamentals:
"The businesses are performing well. That's what matters."
Business Results
On the year:
"Record earnings. The businesses are growing."
On insurance:
"Float is growing. We're well positioned."
Key Topics
Stock Price Records
On high prices:
"A high stock price doesn't make us nervous. We focus on value."
On Berkshire's approach:
"We don't care about stock price in the short term."
Munger's View
Munger on markets:
"The long-term view of markets is awful. People get foolish."
On speculation:
"When markets get excited, people forget about value."
On staying rational:
"We don't get caught up in the excitement."
Index Fund Advice
Buffett's simple advice:
"Most investors should buy index funds. They can't beat the market."
On active management:
"Most managers don't add value. Fees eat into returns."
On patience:
"Hold the index. Don't trade."
Investment Philosophy
On understanding:
"Know what you own. If you can't, buy an index."
On long-term:
"Time in the market beats timing the market."
Notable Quotes
"The long-term view of markets is awful. People get foolish."
"Most investors should buy index funds."
"Time in the market beats timing the market."
Key Themes
- Records - Stock at new highs
- Munger's View - Markets get foolish
- Index Funds - Advice for investors
- Patience - Hold for the long term
- Understanding - Know what you own
Related
This summary captures the key topics from the 1997 transcript.