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2022 Annual Meeting

Return to in-person meeting with Alleghany deal announcement, inflation warnings, and Munger's 98th birthday appearance.

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2022 Annual Meeting

Date: April 30, 2022 Location: Omaha, Nebraska Attendees: Warren Buffett (91), Charlie Munger (98) Source: Full Transcript

Overview

First in-person annual meeting since the COVID-19 pandemic began. Charlie Munger was 98 and participated in person, making this one of his last appearances. Notable announcements included the Alleghany insurance acquisition and discussions of inflation and market dynamics.

Key Announcements

Alleghany Acquisition

Buffett revealed how quickly the deal came together:

"We spent $40 billion in a hurry there in three weeks."

On how he found Alleghany:

"How a casual email led to the Alleghany insurance deal. It was an opportunity that came to us."

Cash Position

Buffett emphasized the importance of cash:

"Cash is like 'oxygen.' You can survive without it, but not for long."

On maintaining liquidity:

"We have an 'extreme aversion' to losing your money."

Key Topics

Inflation

Buffett was emphatic about inflation's impact:

"Inflation 'swindles almost everybody.' It erodes purchasing power."

On the causes:

"Economic stimulus was needed, but it has fueled inflation."

Occidental Petroleum Investment

On the unusual bet:

"People gambling on stocks made big Occidental stock buys possible."

Buffett explained the arbitrage opportunity in OXY.

GEICO Competition

On telematics adoption:

"GEICO adopting telematics to compete with Progressive. We're catching up."

On State Farm:

"State Farm's success refutes what they teach in business schools."

BNSF Railway

On improvements:

"BNSF improvements will take time. We're working on efficiency."

Activision Blizzard

On the Microsoft acquisition:

"Buffett is buying Activision as merger arbitrage play."

Stock Repurchases

Defending buybacks at the right price:

"Defense of stock repurchases, at the right price. It's capital allocation."

Munger's Wisdom

On Learning

"You should be a better person in the second half of your life. Keep learning."

On Multiple Disciplines

"It helps to know more than one discipline. The best investors do."

On China's Opportunities

"Munger: I'm willing to risk investing in China. The returns are attractive."

On Lying Culture

"How a 'culture of lying' can develop at a company. Integrity matters."

Famous Quotes

"Cash is like 'oxygen.' You can survive without it, but not for long."

"Inflation 'swindles almost everybody.'"

"Capitalism is very peculiar in how it dishes out rewards."

"Berkshire is built for forever. There is no finish point."

"You should be a better person in the second half of your life."

Berkshire Philosophy

On Timing

"We haven't ever timed anything. We just look for value."

On the Painting Analogy

"I look at Berkshire as a painting. It takes time to see the full picture."

Long-Term View

"Berkshire is built for forever. There is no finish point."

Key Themes

  1. Alleghany - $4B insurance acquisition in 3 weeks
  2. Inflation - Major concern for investors
  3. Cash - Maintaining liquidity
  4. Munger at 98 - One of his last appearances
  5. Culture - Integrity and anti-fraud

Related


This summary captures the key topics from the full 2022 transcript.