The annual Warren Buffett shareholder meeting was held recently, and this time, Buffett held an online meeting with his long-time partner Charlie Munger.
I read Warren Buffett’s speeches at each conference carefully, and this one was no exception, but I felt that there were not too many highlights that appealed to me.
This time the two old men spoke as usual, bashing Bitcoin, which was no surprise; but one thing that surprised me was Buffett’s regret for selling Apple stock last year.
In Buffett’s investment philosophy, investments in technology companies have always been very cautious because they don’t have a consistent, strong moat, and it’s hard to find times when these companies are priced below “value” almost during their upswing.
Apple is one of the rare tech stocks Warren Buffett buys. I’ve always wondered if Warren Buffett bought Apple because of the huge amount of cash it holds, making its potential value look higher than its price.
It’s often said online that Buffett’s style is such that he can’t invest in companies like Google or Tesla because it’s almost impossible for such companies to make a profit in the early stages, and once they do it often means its success could disrupt the entire industry and take over quickly.
In fact Warren Buffett’s style makes it difficult to invest not only in companies like Tesla, but even more impossible to invest in assets like bitcoin and ethereum. This is because digital currencies, including Bitcoin and Ether, have so far provided absolutely no services or products for humans that contribute to the real economy.
Every investor has their own boundaries of competence, and Warren Buffett is no exception, which Buffett himself admits – he always says don’t buy what you can’t read, that’s the truth. So his failure to invest in Tesla and Bitcoin is not a mistake in my opinion, but something that is bound to happen according to his investment style.
For us digital currency investors, even in the digital currency field, I wouldn’t dare to say that I understand every segment so thoroughly and can see so well, so I can’t catch every dark horse and invest in every potential project.
Recently, there is a popular saying in the circle: Bitcoin has convinced the outsiders, dog coin has convinced the insiders. This phrase graphically describes the FOMO sentiment of these two coins in different circles during this bull market, especially dogcoin which surprised many insiders. From time to time in our recent articles, readers would leave comments asking what the subsequent rise of dogcoin would be.
In an earlier article I had shared my opinion on dogcoin and I was afraid that this luck was not for me. I still have that same opinion now. I bought dogcoin in 2017 before the bull market took off, and the price was very low at that time, but soon after I couldn’t see the value of it and sold it quickly. I haven’t studied dogcoin since then, so I can’t really give good advice or judgment on how it will develop in the future.
In fact, not only dogcoin, but also some other coins that I didn’t buy in the early days because I didn’t see much value in them, but later proved to be amazing.
But I don’t have much regret about it, because I invested in other varieties that I could understand and got satisfactory returns from them, that’s enough.
I think the most important thing about Warren Buffett’s investment experience is not the panacea that can seize all opportunities, but the emotional control and mindset that is applicable to all areas of investment. Emotional control is “I am greedy when the public is fearful, and I am fearful when the public is greedy”. The mindset is “buy what you can understand” as I mentioned earlier.
Among emotional control and mindset, I think it is more difficult for ordinary investors to control their emotions. For example, for us digital currency investors, as long as we have the basic thinking, we know that we should invest in bitcoin and ethereum, but when the bear market really comes, bitcoin and ethereum fall to a miserable, many of us begin to fear, this is typical of the inability to control emotions.
Warren Buffett’s rational approach to investing and investment thinking is played to the ultimate level.
In addition, almost all new online projects have recently been ridiculously overpriced almost as soon as they hit the market, obviously infected by market sentiment, although this also contains many projects that I think are valuable, but I didn’t buy any of them. I am very much looking forward to seeing how far they will fall in the ensuing bear market, when it will be time to pick up treasures all over the place again.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/insights-from-warren-buffetts-shareholder-meeting/
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