The annual fiesta of capitalism that is the Berkshire Hathaway Inc. shareholder meeting returned over the weekend in Omaha, Nebraska, after a three-year absence due to the COVID-19 pandemic.
Warren Buffett, Berkshire's chairman and CEO, and Charlie Munger, its vice chairman, used the platform on Saturday to answer questions about the company and investing, and to comment on the fervent speculation that is permeating the market. The two took aim at Bitcoin and Wall Street in general, meaning the traders, firms, bankers and financial advisers that comprise the capital markets.
The following quotes are taken from videos of the event posted on CNBC.com and YouTube.
“The money is in churning stocks,” Buffett said.
Long-term investors would have been fine if they had bought and held shares of Berkshire Hathaway back in the 1960s, he said. “But your broker would have starved to death. Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism.”
Wall Street, which ranges from bankers to firms to financial advisers, “makes a lot more money when people are gambling than investing,” Buffett said.
"We have computers with algorithms trading against other computers," Munger said. "We’ve got people who know nothing about stocks being advised by stockbrokers who know even less."
"I got some advice for you, too," Munger said. "When you have your own retirement account, and your friendly adviser says put all your money into Bitcoin, just say no."
Federal prosecutors say the scheme used fake investment accounts and a fictitious financial advisor to lure victims into romance-fueled fraud.
Morgan Stanley sought to claw back recruiting bonus money from Darryl Cohen.
Referrals from centers of influence may open the door, but the real key to success for advisors comes from clarity about their ideal clients and where they want to show up.
Three advisor groups overseeing more than $700M in combined client assets head to new firms.
New research finds most Americans fear a US retirement crisis, while skepticism grows toward AI financial advice and crypto in retirement plans.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
