Ep. 4 | Buffett's views on stock splits, beta, diversfication | Stories of GEICO, American Express

A single Berkshire Hathaway share is bigger than most people's entire investment portfolios. Still, Berkshire shares have never been split. Money managers saw an opportunity in this-they started mutual funds that would pool money from smaller investors to clone Berkshire’s portfolio. Warren saw the risks faced by smaller investors in this and found an alternative to stock splits.
Warren Buffett has unconventional views in almost every aspect of investing. He dismissed the use of beta as a measure of risk, did not think he needed diversification to manage risk and called growth investing speculative.
In this episode, covering Buffett’s letters from 1992 to 1996, we travel back in time as we discuss two of his star investments: GEICO and American Express.
00:00 Introduction
00:55 Berkshire’s share price
02:52 Berkshire avoided stock splits
04:15 Agenda and economic scene
05:27 Investments in 1990s
06:09 Fully acquired GEICO
09:02 American Express
10:35 Types of businesses preferred by Buffett
12:25 Not-so-diversified portfolio
14:24 Buffett disliked Beta
17:06 Value vs growth investing
20:15 Is size a problem or an advantage?
23:09 Buffett’s investing mistakes
25:47 Earnings target for 2000
27:27 Alternative to stock split
32:08 Summary
Previous episodes:
Episode 1: Ep. 1 - Investment Philosophies of Buffett and Munger | Learn how to pick a stock
Episode 2: Ep. 2 | How Warren and Charlie acquired businesses? Lessons on Textiles, Media, and Insurance
Episode 3: Ep. 3 | Warren and Charlie's 25 Years at Berkshire | Warren's dismissal of Efficient Market Theory
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#warrenbuffett #charliemunger #berkshirehathaway #investmentrisks #beta #diversification #americanexpress #buffett #zerodha #zerodhavarsity #shareholder #value #growth

[@debashishguin3885]

Please also make a video of Buffet thoughts on Heinz shares and why selling Apple shares.

[@sakshamsrivastava7514]

He is selling Apple Shares, because there is a good chance that the US will increase tax on LTCG, so he is getting in a good cash position ( while apple is at an all time high ). So he would have cash to invest further

[@sankuM]

@@sakshamsrivastava7514 💡💡

[@developions8743]

Very informative....
Continue the Series...😊😊

[@abhiagra]

Please add this in playlist

[@Krishyur_YT]

How many parts of series this is going to be ?

[@akshaynaik1719]

Isn't fractional ownership possible in the US? then how does a stock split matter?

[@rishabhjain2690]

I would be very lucky if I get a chance to work under a vineet and gain a lot of knowledge and thank you guys for giving lot of knowledge ❤

[@krushnatpawar6370]

Thanks for all info.❤

[@SaiKumar-kd5yz]

Please continue

[@ajaykumarm7758]

can share the those pdf links

[@mrinmoyroy6531]

please explain how to calculate intensive value..

[@tanmaygumaste2788]

Yadnya se yaha aa gai..
Mujhe bhi switch krna hai yrr

[@gurukulkaithal]

Plz make videos in hindi

[@Rajyou2b]

I invite you for a coffee to talk about my fav movie #tamasha for a whole day. If not, make more such videos on tamasha

[@abinashjued6738]

You are requested to upload warren Buffett letters in hindi so that every indian can understand easily and can relate... thank you... waiting for the response...