Buffett was questioned by a 8 year old female shareholder: he suspects he bought the wrong stock.

category:Hot
 Buffett was questioned by a 8 year old female shareholder: he suspects he bought the wrong stock.


Buffett, the 88 year old chairman of Berkshire, and Charlie Munger, 94, vice chairman, answered questions from shareholders, journalists and analysts at the scene. A 8 year old girl from New York, who said she had been a shareholder of Boxill Hathaway for two years, asked, why Berkshires many investments have deviated from the earlier ideas of early light asset investment, especially why they invest in the BNSF (North Burlington railway) instead of buying light assets. Do companies, for example, have more American Express? Buffett hesitated for a moment: this problem really baffles me. I am even glad that she is under 9 years old. When she was 9 years old, she didnt know how deep questions she would ask. He laughed and said, Im sitting here thinking how Im going to answer this question. I thought I bought this stock right, and now you say I even think Ive made a mistake. He explained that Boxill Hathaway had always preferred companies that could bring a lot of capital returns, such as Sees candy and American Express, which had been very good and had been in a long way. When talking about buying BNSF, Buffett said it was to be able to make better capital deployment, and the price was very reasonable, so it was in the field of this heavy asset. In the investment of these heavy assets, we still get considerable returns. The price we buy is reasonable. We also sell a lot of projects that have a big capital burden on us, and I think the enterprises we want to develop are able to need light assets and give us rewards for a long time. So its a good choice. Buffett said. Munger agreed with the little girl: I really like that young ladys statement, and I think we should stick to this idea (buying light assets) and say yes. I think the rewards for public utilities and the return on railways are actually satisfying. Its not the best, but its good enough. Buffett added that light assets companies, even at reasonable prices, are hard to find. Like apple, it doesnt need much capital, but few companies can offer us such a chance to do such a purchase. Because the company with high returns is hard to find now. He finally smiled at the little girl and said, but in our asset allocation department, there will definitely be a job ready for you to grow up. The source of this article: surging news editor: Yang Qiang _NN6027 Munger agreed with the little girl: I really like that young ladys statement, and I think we should stick to this idea (buying light assets) and say yes. I think the rewards for public utilities and the return on railways are actually satisfying. Its not the best, but its good enough. Buffett added that light assets companies, even at reasonable prices, are hard to find. Like apple, it doesnt need much capital, but few companies can offer us such a chance to do such a purchase. Because the company with high returns is hard to find now. He finally smiled at the little girl and said, but in our asset allocation department, there will definitely be a job ready for you to grow up.