LGI Homes’ Post

Check out our colleague Andrew Souder's appearance on Middle Market Musings! Andy discusses the history & evolution of RAF over the years, as well as some of the themes that we are thinking about currently. https://lnkd.in/eWkKR_v

May all of us strive to be lifelong learners like Charlie Munger. Link attached provides great insight as to a life well led. https://lnkd.in/gERjTJnq

#BerkshireHathaway 2024 Shareholders Meeting: Berkshire Hathaway's annual meeting is scheduled for May 4, where #WarrenBuffett, also known as the Oracle of Omaha, will address inquiries following the company's first-quarter earnings announcement. This is the first Annual General Meeting (AGM) without Buffett's long-time friend and partner, #CharlieMunger, who passed away last year. Munger and Buffett were known for their cleverness and wisdom, and his well-known phrase "nothing to add" will be missed. With Munger no longer present and Buffett at 93, there's curiosity about who will lead Berkshire in the future. Abel and Jain, who became vice chairmen in 2018, have taken on greater responsibilities. Berkshire will announce its first-quarter earnings shortly before the AGM. Investors are waiting for Berkshire's Form 13-F, which reveals changes to its investment portfolio in the first quarter. Berkshire's acquisition of a mystery stock late last year, which was kept confidential from the #SEC, is particularly fascinating. #BerkshireHathaway #WarrenBuffet #AnnualGeneralMeeting #AGM #Investors #BerkshireForm13F #thebusinesscorridor Read here: https://lnkd.in/gDqVXPMr

Finding inspiration and valuable lessons from Warren Buffett's annual letter to Berkshire Hathaway Shareholders. 📚🙌 #InvestmentWisdom #BerkshireHathaway #AnnualLetterLearnings #InvestmentTips #BusinessStrategies #NeverStopLearning"

This is sit-on-your-ass investing, true and true. A business that can efficiently reinvest at return rates higher than the average; that’s a keeper! Investing is fun that way, > No need to constantly check what the market is doing. > No need for charts/ trend lines > No need to tear your hair out over cvertain downtimes in the market, because you understand your investments will outperform others in the long term. Rightly it is difficult to judge good management, people disguise well. In Crypto though, the democratic system it applies has reduced the impact of management in deciding businesses. Nevertheless, inefficiencies remain in activities like treasury management, reinvestment actions & incentivization rations. A rational head is needed to properly discern satisfactory crypto governance. Most people lack the aptitude analyze & select good businesses; a lot within the few that have the ability will still lose out. The issue lies in the irrationality inherent in human nature that makes us lean towards our bias in lieu of true objectivity. That said, I help Investors Analyze, Evaluate & Select great businesses that adds real Value Let’s have a 1-1 chat? : https://lnkd.in/deDnEprk Join our Xclusive Community: https://lnkd.in/dMV4rr4S #business #finance #callme #counseling #consulting #web3 #blockchain #crypto

Honoring the legacy of American leadership, Legacy Financial Partners celebrates Presidents Day with gratitude for the visionary foundations laid by our nation's esteemed presidents, fostering unity, progress, and prosperity for generations to come. - - Securities and advisory services are offered through Madison Avenue Securities, LLC. ("MAS"), Member FINRA & SIPC, and a Registered Investment Advisor. Legacy Financial Partners and MAS are not affiliated entities. - #LFPFinancial #FinancialPlanning #WealthManagement #Investing #RetirementPlanning #FinancialAdvice #MoneyMatters

Warren Buffett published his shareholder letter yesterday. Since The Oracle of Omaha took over Berkshire Hathaway in 1965, the stock increased 33,000x. I read the letter and summarized it in 10 key learnings for you. 1. Tribute to Charlie Munger “Charlie was the “architect” of the present Berkshire, and I acted as the “general contractor” to carry out the day-by-day construction of his vision." 2.⁠ ⁠The power of incentives "Bertie understands the power – for good or bad – of incentives, the weaknesses of humans, the “tells” that can be recognized when observing human behavior. She knows who is “selling” and who can be trusted. In short, she is nobody’s fool." 3.⁠ ⁠Time in the market beats timing the market "I can’t remember a period since March 11, 1942 – the date of my first stock purchase – that I have not had a majority of my net worth in equities, U.S.-based equities. And so far, so good." 4.⁠ ⁠Buy good companies "We want to own either all or a portion of businesses that enjoy good economics that are fundamental and enduring. Within capitalism, some businesses will flourish for a very long time while others will prove to be sinkholes. " 5.⁠ ⁠Focus on companies with plenty of reinvestment opportunities "At Berkshire, we favor the rare enterprise that can deploy additional capital at high returns in the future. Owning only one of these companies can deliver wealth almost beyond measure." 6.⁠ ⁠Buy companies run by great managers "We also hope these favored businesses are run by able and trustworthy managers, though that is a more difficult judgment to make, however, and Berkshire has had its share of disappointments." 7.⁠ ⁠Let your winners run "By both luck and pluck, a few huge winners have emerged from a great many dozens of decisions. And we now have a small cadre of long-time managers who never muse about going elsewhere and who regard 65 as just another birthday."  8.⁠ ⁠Try to be a bit above average for long periods of time "Berkshire should do a bit better than the average American corporation and, more importantly, should also operate with materially less risk of permanent loss of capital." 9.⁠ ⁠Buy when there's blood running through the streets "Berkshire’s ability to immediately respond to market seizures with both huge sums and certainty of performance may offer us an occasional large-scale opportunity." 10.⁠ ⁠Rule Number 1: Never lose money "One investment rule at Berkshire has not and will not change: Never risk permanent loss of capital." 📚Last year, I read everything Warren Buffett ever said and wrote. It’s a 5,000 page document. The good news? I summarized everything for you in a 60-page e-book. You can grab it for free here: https://lnkd.in/eAt_--Xs

One of Warren Buffett's most successful investments is GEICO. In 2024, it produced $5 billion in pretax income for Berkshire Hathaway. But Warren had the courage of Lion to initiate this position at a fraction of its current value. Here's why Buffett pulled the trigger: Warren had been a shareholder of GEICO 26 years earlier in 1950 but sold out quickly at a 50% profit when he was focused on cheap cigar butts. In 1976, the business was going through some headwinds: In the years leading up to 1970, GEICO's profits went from $2.5 million to a loss after it underestimated its reserves. The company was led by Lorimer Davidson, who retired in 1970. To fix the mess, the new CEO, Norman Gidden, attempted to grow policies faster than GEICO had historically. Policies grew at an annual rate of 11% between 1970 and 1974, compared to 7% from 1965 to 1970. As a part of this growth plan GEICO began relaxing its standards. For the first time, it expanded its services to allow blue-collar workers and drivers under 21. This was a demographic with a sketchier history. As a result Auto repair and medical costs rocketed upwards, and underwriting losses increased alarmingly. What was happening to GEICO's share price at the time? It wasn't pretty. GEICO had an all-time high share price of $61 in 1972. In 1973, it had a 50% haircut. In 1974, the price was further pummeled to $10. And by 1975, GEICO had to eliminate its dividends, and the stock dropped further to $7. If you thought things couldn't get any worse, you're mistaken. In 1976, at the annual meeting, Gidden admitted somebody else could have done a better job than he'd done so far. The board appointed John Byrne as CEO, and the stock further dropped to $5. Byrne's first move as CEO was to announce a $76 million convertible preferred stock offering so GEICO could increase its capital base. But shareholders were unimpressed, and the price further fell to $2. But during the worst possible time Buffett began vacuuming up shares. He deployed $4.1 million of capital for 1,294,308 shares, with an average purchase price of $3.18. He nearly bottom-ticked it. He didn't view GEICO as a turnaround. Buffett understood GEICO very well. Despite the company's struggles, GEICO's fundamental advantage as a low-cost provider remained intact. He compared GEICO to American Express and the salad oil scandal. "The GEICO and AMEX situations, extraordinary business franchises with a localized excisable cancer (needing, to be sure, a skilled surgeon) should be distinguished from the true 'turnaround' situation in which the managers expect, and need, to pull of a corporate Pygmalion." Buffett knew drivers were still using GEICO's products, and the fact GEICO's financials were ugly, did not change that fact. The big lesson was that great companies experience events that can cause headwinds. If you understand the business differently than anybody and know the business will triumph, then you'll do very well!

Phil's advice? Keep it liquid if you can. With the exception of Berkshire Hathaway's recent acquisition of Chubb, Warren Buffett alluded to the fact that the pickings are slim when it comes to great companies at great prices on the market right now. Listen in for Phil's takeaways from the 2024 Berkshire Hathaway Annual Meeting.

Look who visited Winward Wealth Advisors: Meet Teddy 🐶