Q&A
No emotions in business and Investment decisions. GEICO vs. Telemedics, matching rate to risks is what Insurance is all about. Todd is working closely with Ajan Jain, and done a good job.BNSF vs. Precision Scheduled railroding. Balance the needs of our customers
Moved crude across the trumble line?MidAmerica to become BHE
Charlie: "BYD factories in China are full robotics."AI: "Atomic bomb is the most important invention."Commercial real estate are full of bad loans. Hollowing out of downtowns. "How much does the building worth? It depends on how much you can borrow without signing your name." Charlie: "value investors should be prepared to make less. So much money in the hands of so many smart ppl." But Warren argued "there Will be Lots of opportunities because Ppl do dumb things as they like to make money from other ppl." Warren and Charlie were arguing on how the future would look like for investors in the future. Optimistic vs. pessimisticAIG deal: $10B. Estate pplanning. Don't sign a will unless getting discussed with their kids. Investment problems on Munger and estate planning with Buffett. "We are dealing with human beings."Paul Andrews at TTI. Sell to PE and they will think about exit strategies the moment they sign the papers.
During 2nd world war time, federal orders ＋ business ingenuity. In peace time, It's hard to have the urgencies and coordinations among 50 states. "china has one country, America has 50 states.""Don't bet America." Partisan moves to be triblism. Triblism is bad as ppl don't listen to the other side. Charlie:"i don't like everybody going into wealth management. Ppl like MIT." 破除金融精英论Buffett:" Charlie was born in 1924. You don't want go back?'
"I've never looked at schools when i hire our managers."Reinsurance Business. Alleghany is separate operating business. Last 15 years hsve been tough environment for pricing. Margin has been healthy, but we have an imbalance portfolio. But if hurricane in Florida happens again, could loss $15B but gain $7B if it doesn't happen. Buffett said yes in 30 seconds without listening to the numbers.Amazon flywheel. How to balance ST and LT profits. No investor call. Apple: " I don't know about phone that much, But I do know Consumer behaviours. i know why ppl Buy their second cras. Turn over the pages. Buffett just turned over thousands of and thousands of pages of Insurance costs...Japan companies. You get 15% of the one company, on the other hand, You are paying 2%. We can take on the currency cost. Understand the group of companies.Apple: extraordinary business. "People would give up buying a second car, but not an iPhone." Not a lot of good opportunities, diversification is insane. US - China tech/Internet. Economic tensions between US and China are stuipd, stupid, stupid. "We should have more free trade with China. Warren - "Two super powers. How far you can push the other side without the other side reacting? Game theory dilemma. We are just the beginning of it. We had it with Sovit Union. Very close call on Cuba. Mutually assured destruction. Leaders will make sure that ppl know that. Both can prosper, Both can be competitive. Both are imperative for what will happen in the 100 years. There are lot of flammatory talks."TWSC - best managed, very important as well. "I Don't like the location. Reevaluated the situations." Alleghany participate in their Arizon activities. Feel better about Investments in Japan than Taiwan. "Ben Graham did all kinds of things for me, but didn't expect Anything in return." Ben's book continues to be on the 300th list for Amazon's selling list. Graham made more than half of his money in one company GEICO. Tesla and GM EV companies have their own Insurances, impact on GEICO? Margin on writing on Insurance is 4%. Warren " hard to match risk with price." Asset management industry. They don't depend on performance, but AUM. They Hope you to switch higher fees mutual funds. Counter selling the idea that John Bogle started. If you figure out where their self interests are, you can judge what their behaviors will be. Shouldn't listen to Wall Street. Hard to meet earnings projections. "the secret of business is to buy good business."