Warren Buffett.

Mario Gabelli, John Rogers, and other top investors discussed Warren Buffett’s latest deals.
They welcomed Berkshire Hathaway’s $23 billion of bets on Occidental Petroleum, HP, and Alleghany.
The investors touched on bitcoin, Netflix’s stock plunge, and other subjects.

Warren Buffett’s Berkshire Hathaway is holding its annual shareholders meeting this weekend, after staging it virtually for the past two years due to the COVID-19 pandemic.

Tens of thousands of Berkshire shareholders have made the pilgrimage to Buffett’s hometown of Omaha, which has been described as “Woodstock for Capitalists.” Gabelli Funds, run by the billionaire investor Mario Gabelli, held its Value Investing Conference on Friday morning.

Gabelli, Ariel Investments co-CEO John Rogers, and a slew of other Buffett experts discussed Berkshire’s recent purchases of Occidental and HP stock, and its agreement to acquire Alleghany.

Here are some of the best quotes from the event:

John Rogers, CEO of Ariel Investments:

“Sports companies got cheap during the pandemic. We’ve bought Madison Square Garden Sports and Manchester United, those are two of our favorite stocks right now.” (Rogers, who once captained Princeton’s basketball team, said he was following Buffett’s advice of investing within his circle of competence.)

“Volatility should be our friend. Just take advantage of the fact stocks are trading lower for non-economic reasons that have nothing to do with their cash flows.”

Mario Gabelli, founder and CEO of Gabelli Funds:

“Bitcoin — the pitch is there’s a shortage of them. How many baseball teams are going to be created?” (Reiterating Rogers’ point that sports teams have a natural competitive moat due to their strong brands, fan followings, and restrictions on new teams being created.) 

“Reed Hastings is going to have to adjust to the dynamics of the world, and he will.” (Referring to Netflix’s co-CEO and the challenge of “churn” or users canceling their subscriptions, which has helped drive the stock down more than 60% this year.)

Chris Bloomstran, president and CIO of Semper Augustus Investments:

“Alleghany is a far, far better insurer inside of Berkshire.” (Bloomstran noted Berkshire will likely pay off Alleghany’s debt, and gradually shift the insurer’s investment portfolio from bonds to higher-returning stocks thanks to its superior balance sheet, potentially generating $600 million in additional earnings annually). 

Adam Mead, the author of “The Complete Financial History of Berkshire Hathaway”:

“Uncertainty in markets today is certainly working in Buffett’s favor.” (Mead was likely referring to the combination of rampant inflation, slowing global growth, the Russia-Ukraine war, widespread supply …read more

Source:: Business Insider

      

Mario Gabelli, John Rogers, and other elite investors discussed Warren Buffett’s $23 billion of new bets at Berkshire Hathaway’s annual weekend meeting. Here are the best quotes.

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