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2001 Annual Meeting

Dot-com crash aftermath meeting where Munger dismissed internet valuations as "partying" and Buffett explained why value investing still works.

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2001 Annual Meeting

Date: April 28, 2001 Location: Omaha, Nebraska Attendees: Warren Buffett (70), Charlie Munger (77) Source: Full Transcript

Overview

The 2001 annual meeting was held during the dot-com crash. Munger dismissed internet valuations as "partying," and Buffett explained why value investing principles still work despite the tech frenzy.

Opening

Buffett on the market:

"The bubble has burst. That's healthy."

On dot-com valuations:

"Many companies have no earnings. Some have no revenue. That can't last."

Business Results

On Berkshire:

"We're doing well. Value investing works."

On insurance:

"Float is growing. The business model is sound."

Key Topics

Dot-Com Crash

Munger on valuations:

"The internet speculation was like a party. Now it's over."

On the Hangover:

"When the party ends, you see who was drinking."

On missed warnings:

"We warned people. But they didn't listen."

Value Investing Principles

On fundamentals:

"Earnings matter. Revenue matters. Business models matter."

On speculation:

"Speculation is not investment. People forgot the difference."

On patience:

"The market will correct. It always does."

Berkshire's Approach

On tech:

"We don't understand tech businesses. We stick to what we know."

On avoiding fads:

"We're not swayed by popular opinion. We do our analysis."

Looking Forward

On recovery:

"Good businesses will recover. Speculators will lose."

On value:

"Value investing works. It always has."

Notable Quotes

"The internet speculation was like a party. Now it's over."

"When the party ends, you see who was drinking."

"Earnings matter. Revenue matters. Business models matter."

Key Themes

  1. Dot-Com Crash - Party's over
  2. Value Principles - Fundamentals matter
  3. Speculation - Not investment
  4. Patience - Market will correct
  5. Value Works - Always has

Related


This summary captures the key topics from the 2001 transcript.