My Big Takeaway From Berkshire's Annual Meeting

The dialogue out of the annual Berkshire Hathaway (BRK.A, BRK.B) meeting will be beaten to death this morning, including the three hours of discussion on "Squawk on the Street" this morning, so I am not going to rehash the full five-hour meeting; I'll leave that to others. I want to drill down to one very insightful question, and answer, that deserves a second pass -- both for what it says about Berkshire, and about good investments in general.

One of the first questions started by positing that through most of the company's history, Warren Buffett sought high cash flow, low capex businesses. These wonderful businesses were self-funding and threw off significant cash that could be reinvested in other wonderful businesses, thus putting the magic of compounding to work in growing Berkshire. Now, Berkshire is mainly investing in businesses that are attractive-- not necessarily wonderful -- and require substantial capital investment to maintain their moat. Why the change?...723 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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