1999 Annual Meeting
Internet bubble peak meeting where Munger gave his famous warning about "human cleverness gone wrong" in the stock market.
1999 Annual Meeting
Date: 1999 Location: Omaha, Nebraska Attendees: Warren Buffett (68), Charlie Munger (75) Source: Full Transcript
Overview
The 1999 annual meeting was held at the peak of the internet bubble. Munger gave his famous warning about "human cleverness gone wrong" in the stock market.
Opening
Buffett on the market:
"Internet stocks are commanding high valuations. But fundamentals matter."
On Berkshire:
"We're focused on businesses, not stock prices."
Business Results
On the year:
"The businesses are performing well. We're growing."
On insurance:
"Float is growing. We're well positioned."
Key Topics
Munger's Famous Warning
Munger on speculation:
"Human cleverness has gone wrong in the stock market."
On what's happening:
"People are throwing away wisdom. They're chasing dreams."
On long-term consequences:
"When this ends, people will lose money. A lot of it."
Internet Mania
On the frenzy:
"Every internet IPO soars. People don't ask about earnings."
On Berkshire's approach:
"We don't own internet companies. We don't understand them."
On valuations:
"The price doesn't matter if the business is bad."
Berkshire's Strength
On patience:
"We can wait. We'll find opportunities."
On not speculating:
"We're not going to play a game we don't understand."
Future Outlook
On the bubble ending:
"It will end. When, I don't know. But it will."
On Berkshire:
"We'll be fine. We always are."
Notable Quotes
"Human cleverness has gone wrong in the stock market."
"People are throwing away wisdom. They're chasing dreams."
"When this ends, people will lose money. A lot of it."
Key Themes
- Bubble Peak - Mania at its height
- Munger's Warning - Famous prediction
- Fundamentals - What matters
- Patience - Berkshire's advantage
- Future - It will end
Related
This summary captures the key topics from the 1999 transcript.