“We have not done anything, because we don’t see anything that attractive to do,” said Buffett, chairman and CEO of Berkshire Hathaway, from the company’s annual shareholder’s meeting in Omaha, Nebraska. “Now that could change very quickly or it may not change.”
Berkshire had a record $137 billion in cash and equivalent instruments by the end of March, according to the company’s latest 10-Q filing.
Berkshire shareholders have been waiting for Buffett to deploy some of that cash, particularly after the coronavirus sparked a massive drop in stock prices. The S&P 500 fell as much as 35% from a record reached Feb. 19 to a March 23 low. Since then, the broader market index has retraced more than half of those losses.
Buffett has used previous price drops to buy companies at a discount or take partial ownership of companies. Buffett made special investments in companies such as Bank of America and Goldman Sachs during the 2008 financial crisis.
“We are willing to do something very big. I mean you could come to me on Monday morning with something that involved $30, or $40 billion or $50 billion. And if we really like what we are seeing, we would do it,” said Buffett. But at the moment, “we haven’t seen anything that attractive.”
00:00welcome digital asset news the top00:01stories and cryptocurrency digital00:02assets and break them down into00:04bite-sized pieces today we’ve got some00:07stories that I can make you feel bad00:08they’re gonna make you wonder some00:10things and at the very end it’s gonna00:12make you actually feel good so stick00:14around for all these at the very end00:16we’re gonna go over scam of the day00:18which is super important but let’s jump00:20into what’s going on today Saturday00:23April 25th so first up let’s take a look00:26at the markets and looks like we’re00:27doing pretty much stagnant looking00:30pretty flat across the board Bitcoin00:33holding strong at 7500 let’s see if they00:35can break that 8 K resistance barrier00:37which I’m hoping it can but etherium00:39almost about to pop above 200 and that00:42would be fantastic news even XR pees up00:44so that’s always awesome and00:45everything’s pretty much flat except for00:47a big winner – all of you dizzy by fans00:51out there or as they call them the digi00:54B’s so there’s the XRP army chain-like00:56Marines and the digi beats which I00:57annoyed to actually exist it and tell00:59someone told me in the comment section01:00and I got to tell you guys are on a roll01:02I mean right now you are coming up at01:0424% I think over time it’s like up three01:07hundred two hundred percent something01:08like that so if anybody can tell me01:11exactly why did you bite is pumping I01:13would love to know let me know in the01:15comment section below because I know01:17it’s a May everybody tells me it’s a01:19great project of course that’s what a01:21lot of people tell me about all their01:22projects how great it is and whatever01:23else but but you by it seems very stable01:26it’s been battle tested and it’s C it’s01:29TPS as transactions per second are like01:32through the roof I think it’s over01:3320,000 TPS that’s pretty amazing so let01:36me know in the comments section below01:37exactly why that is but let’s break into01:40today’s top story which comes from this01:43is from CNBC and it comes to our friend01:46here01:47this is Chamath I’m gonna butcher his01:49last name le hepatitis-a it said that01:51right but he is a early Bitcoin investor01:54he’s a Bitcoin maximalist he was also a01:56big Facebook exec to get Facebook that02:00kind of pretty much rolling with Mark02:02Zuckerberg and that whole crew and now02:03he’s a big investor and I’ve covered him02:06but a week ago or so when he talked02:08about the different traditional stock02:10markets but what he’s gonna say today is02:13to lay the groundwork for what we’re02:15gonna go into our next story as far as02:17inflated markets and what’s really going02:19on behind the scenes and why I believe02:21we’re in a very precarious situation02:23coming over the next three to six months02:26so let’s take a listen Jeff you keep02:27saying propping up zombie companies are02:29you are you arguing to let Airlines for02:32example fail yes why I mean how does02:38that make sense in the broader scheme of02:40the economy it’s not when you look at02:43what it means this is why I’m saying02:45like this is the lie that’s been02:46purported by Wall Street when a company02:49fails it does not fire their employees02:52it goes through a package bankruptcy02:55right if anything what happens is the02:58people who have the pensions inside03:00those companies the employees of these03:02companies end up owning more of the03:05company the people that get wiped out03:07for the speculators that own the03:09unsecured tranches of debt for the folks03:12that own the equity and by the way those03:14are the rules of the game that’s right03:16because these are the people that03:17purport to be the most sophisticated03:18investors in the world they deserve to03:21get wiped out but the employees don’t03:23get wiped out why does anybody deserves03:30using your word to get wiped out from a03:33crisis created like this so that was a03:51little recap and he said that you know03:52we could go over so but that’s on the03:54when I first heard that and then we had03:56talked about on this channel I thought03:58that’s pretty pretty disastrous to talk04:01about and but I mean it’s true it’s all04:04true what he said but when I heard that04:07it may be very angry and then I talked04:10to or I put it all out to all of you and04:13you guys got to watch it and your04:14reaction was the same but the next part04:16well I’m going to what I’m going to show04:17you is gonna make you realize what is04:21going on we’re gonna lift the curtain or04:24take away the curtain so you can see04:25what’s going on behind04:26the scenes and how everything is propped04:28up and it’s just smoke and mirrors and04:30all the things that we’re seeing right04:32now with the traditional markets04:34bounding maybe even going sideways it’s04:36not true it’s not reality so let’s take04:40a listen real quick it’ll be about three04:41to four minutes section and then we’ll04:42go off into where we back this all up04:47why I made the comments that I did and04:50why it touched such a nerve there is an04:54interesting facts thought that you04:55should know which is that since 2009 the04:59500 companies in the S&P 500 so these05:02are the 500 best companies in the world05:03they bought back seven trillion dollars05:07of stock and or issue dividends okay now05:09that turned out to be ninety more than05:12ninety cents of every single dollar of05:14profit that they made over the last 1105:18plus years the federal government as05:22well as the Fed between monetary and05:24fiscal stimulus combined have05:26essentially transferred around seven05:28trillion dollars now back to those said05:30companies as well as you know companies05:33slightly smaller than them and I think05:36why I was frustrated is that I just05:39think that that kind of behavior makes05:42no sense and instead of being punished05:44it has been rewarded and if you ask me05:47why here’s how I would explain it the05:50job of a CEO especially of a public05:53for-profit company is to be a fabulous05:56allocator of resources and there are05:59only two kinds of resources that a CEO06:01controls that matter06:03the first is human capital right the06:05people that work inside of your company06:07and the ideas that they have and the06:08products that they make and the second06:10is financial capital the money that you06:12take to invest in great ideas to protect06:15for the future to prepare for whether06:17it’s a pandemic or a shock or a06:19recession or a competitor and the best06:23capital allocators become the best CEOs06:26so if you take a company like Facebook06:28or Google they’re a very capital asset06:31like business so a lot of their skill is06:33in picking great people so takes up he06:35picks Sheryl Sandberg he picked me he06:37put us in positions to build that06:39business he’s a06:40as human capital allocator on the other06:42end of the spectrum Teague Buffett he06:44has no human capital inside of Berkshire06:46it’s all financial capital but he’s a06:48fabulous capital allottee or you take06:51Jeff Bezos the case in the middle where06:53he has both of those two things in all06:55cases great CEOs or great allocators of06:58capital when you do things like buybacks07:01and dividends what you are essentially07:03saying is you’re throwing your hands up07:04in the air and declaring to the world I07:07do not know what to do with this money07:09and instead of deciding to save that07:12money to try to do M&A to try to invest07:15in R&D to pay your employees more these07:19people have given it back in an open07:21market purchase now let’s look at that07:22for a second why is that a stupid idea07:24well it’s a stupid idea for two reasons07:27the first is that it disproportionately07:29only benefits the executives and the CEO07:33and the board because those are the ones07:34that disproportionately get most of the07:36stock inside of a company and it07:38disproportionately benefits those07:40specific hedge funds that were agitating07:42for that behavior and activity who take07:44a short term position and allow07:45themselves to participate in short-term07:47profits and now what happens is the07:49people that believe least in the company07:52ie the people that sell the stock get07:55rewarded and then who’s left holding the07:57bag the people that believe in the07:59business let’s take a specific example08:01Scott and you can see how bad this is08:03IBM over the last you know decade has08:07spent a hundred and forty billion08:09dollars on buybacks this is a company08:12with a hundred billion dollar market cap08:14the last CEO found a way to oversee 2408:19consecutive orders of revenue decline08:22and four that was still able to08:26compensate herself a hundred million08:28dollars of stock base Cobb08:29now you look at all of this kind of08:31behavior and you can say how is this08:33supported why are all these companies08:35trying to figure out how to be more08:38resilient and it turns out that the08:40incentives were so skewed away from08:43being resilient it was only focused on08:45short-term profiteering for the sake of08:48the managerial class and the hedge funds08:50around that’s of everybody else so two08:52things08:53first of all what he talked about and it08:57totally makes sense right I mean and we08:58can see that with the markets we can see09:00what’s going on we can see what the09:01buybacks and now with this stimulus09:03package that has come about first it was09:052.2 trillion then a couple more trillion09:08now we’re looking at 500 billion and who09:10knows where it’s gonna be but with all09:12those different programs there was a09:14stipulation that we know buybacks that09:16would not happen in the background that09:18was not supposed to be the primary09:19driver but I think we both know that in09:22some way shape or form at some point09:24these corporations are going to find a09:25way to do it that’s why they’re09:27corporations and s corpse and C corpse09:29and they have lawyers and they have09:30everything else so it’s going to happen09:32regardless but you have to take a look09:34at the market itself is propped up on a09:38deck of cards and I don’t know how long09:41it’s gonna take to actually collapse but09:42it at some point will collapse and it09:45will be huge and it’s what it’s one of09:47those things that we talked about09:48yesterday we’re gonna get into the09:50report in a second but it was a 120 page09:52report from Raul Powell who was a macro09:55economists economist and he talks about09:59how he sees things moving over the next10:02three six three to six months to a year10:04to 18 months two years and was not very10:07pretty as for sure so two things though10:10to know is that do you see the thedifference between large corporations inthe average Joe the average person issupposed to sit around and they’resupposed to save at least a six-monthnest egg in case some type ofcatastrophe happens whether that whetherthat be medical would that be financialor something else but yet we have thesebig corporations that keep gettingbailed out and they can’t last over twoto three weeks and they’re already10:34destroyed so I don’t see where the10:38fairness is now let me know what you10:39think in the comment section below I10:40don’t find that to be a type of10:44situation that anybody should have to be10:46in or these corporations should have to10:48be saying hey we can’t do that because10:50we had somebody buybacks in the past so10:52bail us out again and bail us out again10:53and bail us out again the second thing10:55is Warren Buffett when he made a mention10:57there of him now I know that the stock11:00market has gone certain ways but my big11:03thing is to see what is smart money11:04doing what is what are the people doing11:06the Honda seen is not what there11:07there that’s going on but what are theyactually doing so Warren Buffett whetheryou believe is one of the greatestinvestors or if you think he’s just someold fool that maybe has lost his edge Istill think is a great investor he isstill sitting on the sidelines withbillions and billions of dollars justwaiting to get back into the market thisis an article back in March WarrenBuffett has poised a bull to buy whenthere’s blood in the streets OracleObama has 120 billion of spirit cash tobuy stocks during this downturn and yousee what happened in March a little bitof a downturn there don’t you can went11:42up a little bit now we’re kind of11:43trading sideways and it’s interesting to11:45see what could potentially happen and I11:48think that if people think the bottom is11:50in only the bottom is in and it’s the11:52same thing we talked about yesterday and11:53saying they’re going to get in today so11:55this was a report it was called the11:58unfolding and it was just released April12:01this year again us from Ronald Powell12:03you can take you can check out that12:04video that looks just like this and I’ll12:07I’ll put it at the very end so we went12:10over this in detail yesterday but12:12there’s a couple points I want to make12:13and when he just to really go over them12:16and he talks about here he says why does12:19the first week of April metal matter12:21well this is when Europe might possibly12:23see peak rates of COV ID however the12:26next two weeks are gonna see the numbers12:27in Europe and the u.s. increase and of12:30course that did happen it also states12:32that those ultra focused financial12:35market participants notice in advance I12:37mean we do right he’s talked about12:38himself as a hedge fund manager and12:40macroeconomics economist but this Joe12:43public appear the pension fund manager12:44Roger the risk manager or Harry the12:46standard hedge fund manager do they know12:49they’re all trading headlines and are12:51the panic so for all these things that12:53are happening behind the scenes12:55maybe these financial experts12:57quote-unquote don’t know exactly what’s13:01going on and are not looking at the big13:03picture like I think some of us do that13:06are watching this video right now so he13:08says we’re trading the panic and it13:09comes to early April and we’ll see what13:11happens he said but it does there may be13:13or will be a little bit of a correction13:15and he states so I think we have a week13:18or two left of peak fear and that’s when13:20he’s talking about13:20March and then we can plan a largercorrection as everyone looks at hope asa strategyhope is a v-shape or hope it’s a u-shapewhich have we actually seen in themarket encrypt the currency market aswell it’s pretty much been a parallel hesays we’ve seen some of the largestglobal stimulus in all recorded historyboth from the government and centralbank in the past that has always workedand says this is the identical narrativeshift from 1929 to 1930 the six-monthbounced in the 1929 1930 was the GreatDepression and his exact would happen sowe had a huge bunch of economic growthand everything has dropped off the cliffand everybody was a little bit scarednice and then they said oh no it’s gonnabe okthere’s a small correction for aboutthree to six months and then look whathappened all the way down this happened1929 this happened in 2000 this happenedin 2008-2009 accom 2008 p in the housingmarket bubble in 2020 being thispandemic crisis and it’s playing outagain but the big thing was that theseCorrections they can be anywhere fromtwo months three months or maybe sixmonths this is right here this timemaybe the riot last six months maybeit’s three maybe we don’t eat the lastcell relay who knows but he does sayagain that it all falls apart what’sunfolding his elements of all the macroevents of my lifetime plus 1929 I’llrolled into one14:40he says again equity bubble wave14:42retirees of all time he talks about14:44pensions getting just decimated lighters14:46corporate credit bubble which we just14:48talked about student loan bubble auto14:50loan bubble indexation etf falling14:52foreign borrowing bubbles and monetary14:53policy and an EU banking crisis so it’s14:56all kind of converging into one event so14:59when we see the market go up and then we15:05see things move about the question15:07really is is what’s going on behind the15:09scenes and that to me is where all the15:13truth lies let me watch the thing in the15:14comments section below let’s move on to15:16the next story so next up Bitcoin rally15:18stock market stays flat yeah here’s why15:21Scott Melchor says many cryptid15:22believers are making a mistake so first15:24of all stock market stays flat let’s15:26take a look at yes in P 504 yesterday15:30which was Friday Saturday looked like it15:32did pretty well but if you take a look15:34day yeah pretty much flat and a month15:37yeah I would love recovery but pretty15:39much flat sure enough okay and then who15:41is Scott Melkor well he goes by the15:46handle of the wolf of wallstreet all15:49streets got about eighty six thousand15:51followers and a pretty big guy in the15:53financial market so what he says no15:55slouch let’s see what he’s got to say so15:57moving on I’m not gonna read the whole15:59thing because it’s kind of boring but16:01what he says here these these three16:02paragraphs is the truth16:03he says amid the extremely shaky and16:05volatile global economy he has a message16:07for Bitcoin believers he says anyone16:09trying to day trade Bitcoin should16:12probably give it a rest if they truly16:13believe it’s headed for exponential16:15growth in the long run and here’s where16:16it comes down to it he says if you truly16:18believe that bitcoin is going 200k then16:21you should just slowly buy it now if you16:23don’t believe it’s going okay if you16:24don’t think it’s going to zero or just16:2520k or whatever else trade all you want16:27he said regardless of the price check16:30your balances quarterly there’s no need16:31no need to risk trading away your stack16:34before it gets there if you insist on16:35trading do it with fifteen percent of16:37your portfolio or less it’s important to16:41remember this simple fact most people16:43who have made money and markets have16:45never looked at a chart most never even16:47heard of technical analysis investing is16:50greater than trading it’s not even16:51closed even the most successful trader16:53should be an investor first and this is16:56what I’ve been preaching a long time on16:58this channel for as new as this channel17:00is really comes out of this dollar cost17:03average verse technical analysis he17:05looked at a lot of different YouTube17:06channels it’s a lot of TA and I can just17:09tell you I just don’t get into it I17:11don’t see it I’m very boring I’ll be17:14honest with you I’m just dollar-cost17:15average there’s you know so much per17:18week for my seven different projects17:21which so you all know this is exactly17:24what I’m invested in Bitcoin aetherium17:26XRP chain-linked Cardinal vos and now17:29Tasos those are my seven so if I talk17:32about these things a lot it’s because17:33I’m biased but I don’t trade these17:35things because I don’t see the point in17:37putting that much stress and effort17:39everything else into it I see this whole17:42market and if you read the the unfolding17:45or watch the video from yesterday17:47it’s gonna talk about a 10 to a hundred17:49trillion asset class which is going to17:52be cryptocurrencies so why would I mess17:55it all up by trading now if you want to17:57trade it’s all up to you but I got to17:58tell you my personal opinion all you18:00guys who were true guys and gals who are18:02trading and you were leveraging and18:05you’re getting wrecked or just hurting18:06them just it’s just hurting the whole18:07cryptocurrency market and that’s what I18:10said that’s what I believe and I don’t I18:12at least a live in Las Vegas and I can18:14tell you that I knew a lot of gamblers18:16friends were gamblers and they’d always18:17come to me and go hey man had a really18:19good week last week oh yeah how much18:21what would happen I I hit this this this18:23one pot five thousand boom got it oh18:25that’s great jack so how much you up for18:28the year I well I’m down like 20k but18:30last week man 5k that’s how I see a lot18:34of traders and if you’re a successful18:36trader or if you’ve gotten wrecked let18:38me know in the comment section but I18:39just don’t see the point I just don’t18:41get it maybe you like I said like this18:43wolf of Wall Street’s guy ten to fifteen18:45percent of play around but I got their18:47businesses to run so that’s just my18:49thing all right moving on last up fold18:52so I want to make mention of I did a big18:55thing about the fold app and I was18:59talking about a card in an app and all19:01together so real quick there is an app19:03for fold where it gives you for19:05everything every kind of like gift card19:07you buy you get Satoshi’s you know19:08everything’s a reward in fifteen19:10essentially and there is also an app or19:13there’s also a card that I want to talk19:14about and one big thing I need to make19:17mention I don’t get paid for this this19:18isn’t a paid promotion if it was I would19:21put it up put it on the on my my video19:24itself because I have to report these to19:26YouTube the only currency that I have19:28with you guys is trust so why would I19:30blow it on just a stupid card this is to19:33me it looks pretty awesome right you can19:35get a card everything you swipe with or19:37buy with whatever else you can get19:38Satoshi’s and if you think like me19:41that’s going to attend trillion to 10019:43trillion market cap yeah I said it you19:46would want to probably get this card and19:48I cannot wait to get this card honestly19:50so let’s see what it is so first off19:52there’s nice little video can check that19:54out but opt out of points and miles19:58surveillance of debt points I don’t20:01we I mean I get into if it gives me cash20:03back sure but I mean if I can get20:05something like I can get Bitcoin yeah20:06it’s gonna you know actually roll over20:08to actually do a lot in five or ten20:10years why not then it says to opt in you20:14can actually chop privately which is20:16pretty cool the savings twofold sure20:18sure sure there’s one more thing about20:20this it has a single-use virtual card so20:23if you never heard about these these are20:24awesome20:25you can you know how when you sign up20:26for some type of you know free trial and20:30you’re like oh this is cool and that’s20:31like you know and after that’s like20:33$19.99 a month you forget to cancel it20:35and then before you know you’re like20:37shoot I just got I just got dinged or20:39you forget about for two or three months20:40well on this one you can use a20:41single-use virtual card on top of this20:44card and it will just go away so you can20:46pay for it once and then that’s it you20:48don’t worry about it which is pretty20:49awesome20:49so I like all this all this stuff so20:52just so you know it’s like so I can20:55correct myself there is an app which I20:57have and I use and I show in the video20:58which you can watch I’ll link at the21:00very end and you can actually get the21:02card and when you click on the join the21:04wait list what’s cool about that I can’t21:08do this because I already have the app21:09but if you haven’t gotten the app you21:11can get 30,000 Satoshi’s for free just21:13by signing up with your email Twitter or21:15Facebook and again this is not a21:17sponsored ad I just thought it was21:19pretty cool and I could bring it to you21:21now I get offers every single day for21:26promoting something and I’ve turned21:27everything down but I am close to saying21:30yes to one because it’s a reputable21:31company and I think you guys have21:33actually used it but I will tell you21:35exactly21:35this is prade promotion but this is not21:38just some date you can get into so I’ll21:40link this in the comment section below21:42and that’ll be it so look that’s it for21:44today21:44Saturday hopefully you can get out a21:46little bit by wearing maybe wearing your21:48mask as you walk around the deserted21:50streets like I am Legend and get off to21:53it or get into it alright that’s it so21:57thanks for watching if you got a couple21:59minutes stick with me we’ll do the scam22:01of the day and that would really help22:02out to really appreciate it so scam of22:05the day we started this if you’re Union22:08if you’re new to this we started this in22:11January we had a pretty good record22:12because we kept seeing people getting22:14screwed out of their money22:15and I hated that hated scammers I can’t22:17stand them to get to the scam of the day22:19all you have to do is in the description22:21of every one of my videos there’s gonna22:23be a link and it’s gonna say scam of the22:26day when you click on that it can take22:27you this handy-dandy spreadsheet and22:29we’re gonna go over the last five that22:32have been here forever22:33so we used to have really good luck22:35because a lot of people reported them we22:37still have people reporting them but22:38YouTube still doesn’t take it down and22:40just between us since no one’s watching22:42just a couple thousand people or so22:4410,000 20,000 I don’t know yeah Ripple’s22:48gonna sue YouTube so all these things22:52that we’re doing you know YouTube should22:54do this I like YouTube22:56I’ll just stay away I like you too I22:58like watch the videos like the whole22:59platform I love it it’s great it gives23:02us a voice and a lot of countries23:04countries don’t have that opportunity so23:06to YouTube thank you very much but I23:09will say this you need to do better you23:10need to do better you need to do better23:13because you’re leaving these scams up23:15there up here we’re reporting them we’re23:18doing your job for you so you need to23:20get in and get us halfway and if you23:24don’t you know other companies gonna sue23:26you like Ripple23:27just that’s how I see it anyhow my23:30soapbox so here’s how we do it you’re23:31gonna click on this link it’s gonna go23:34to one of our scams right and how we23:36know it’s a scam I mean that looks like23:38cz finance that looks like a sharply23:40dressed young man interviewing him no23:42problems there but so the first thing I23:44want to look at is hey there was a video23:46was talking about yesterday23:48macroeconomists reveals the most23:50exciting scary yeah sure so these are23:53where you can get some insight as to if23:57this is a scam a lot of people say it’s23:58a scam one mullet is really adamant24:00about that all right soft so so maybe24:03these people are all a bunch of haters I24:04don’t know but what we want to look at24:07is is this an asymmetrical giveaway and24:09if you see stuff like this where it says24:11hey if you sent us one Bitcoin we’re24:13gonna airdrop you five if you give us24:15five Bitcoin will give you 2524:17nobody’s doing that okay you’re not24:19special no one loves you that much so24:21what we have to understand is that this24:23is a scam when you report and get out of24:24here as fast possible24:25so now if you don’t believe me that’s24:27fine I’m just24:28guy on YouTube wait we can do is you24:31contact by Nance and say hey by Nance24:34are you guys giving away free Bitcoin24:36they’ll tell you now so go to buy Nance24:38go to their official website go to rip24:40all their official website to join base24:42their official website they’ll tell you24:43all the same thing as soon as you let24:46them know man look at that 1,400 views24:49already24:50that’s awful 14 people probably got24:52scammed or some people got scammed I24:54think half an hour probably from my24:55channel so let’s get rid of it how do we24:59do that we’re gonna downvote we’re gonna25:00click on these three dots right here25:01we’re gonna click report we’re gonna say25:05spanner misleading choose one scam and25:08fraud click Next and why is this a scam25:12it’s just a scam it’s a scam nobody is25:17giving away free Bitcoin use your head25:24and then report you can say whatever you25:27want to right usually I just say this is25:28a scam and that was it but whatever you25:30want to do is great so that’s it so I25:32got to do if you could do all those25:34fantastic new one hey thank you so much25:37I appreciate it and that’s it for25:38today’s video so thanks for sticking25:40with me and see ya on the next one
World Chess Champion Garry Kasparov and billionaire entrepreneur Peter Thiel discuss technology, chess, Russian and American politics as well as human rights and prospects for the world economy.
The youngest world chess champion in history at 22 in 1985, Kasparov remained the top-rated player in the world for 20 years, until his retirement in 2005. He then became a leader of the Russian pro-democracy movement against Vladimir Putin and is currently the chairman of the NY-based Human Rights Foundation. The Kasparov Chess Foundation promotes chess in education around the world with centers in the US, Europe, and Africa with more soon to come. Kasparov speaks and writes frequently on technology, decision-making, and risk. His book, “How Life Imitates Chess,” has been published in more than 20 languages.
(45 min) Warren Buffet, America’s richest man in, does not invest in technology.
Warren Buffett, Charlie Munger and Bill Gates sit down with CNBC’s Becky Quick to discuss the state of the markets as well as the overall economy and the Fed.
.. “The Rebel Allocator” is the opposite of most business novels. Here, the rich capitalist isn’t an evil genius using genetic engineering to hijack the brains of newborn babies. Instead, he is a hero: an investing mastermind who regards allocating capital as a noble calling that improves other people’s lives.
Blunt and bristly, with zero tolerance for stupidity, Mr. Xavier spouts proverbs and zingers. A mash-up of Mr. Munger and Mr. Buffett, he often invokes their ideas.
.. Taking a shine to Nick, Mr. Xavier asks him to write his biography. Like many young people today, Nick wonders if becoming a billionaire is inherently immoral when poverty is still widespread.
Mr. Xavier teaches Nick what separates great businesses from good and bad ones. He uses three drinking straws, labeled “cost,” “price” and “value,” to demonstrate: When a business can charge a higher price than its goods or services cost, the difference is profit. When the value its customers feel they get is greater than price, that difference is brand or pricing power—the ability to raise prices without losing customers.
As Mr. Xavier moves the straws around, Nick learns that investing decisions can make the world a better place: “Good capital allocation means doing more with less to create happier customers,” says Mr. Xavier. “Profit should be celebrated as a signal that an entrepreneur provided value while consuming the least amount of resources to do so.”
.. “I have known no wise people who didn’t read all the time—none, zero,” Mr. Munger once said. “You’d be amazed at how much Warren reads—and at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”
.. The money managers among them are “like a bunch of cod fishermen after all the cod’s been overfished,” Mr. Munger tells me. “They don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”
By that, he presumably means not the bargain companies that have become almost an endangered species, but rather the great companies at fair prices that Mr. Buffett has been favoring for the past couple decades under Mr. Munger’s influence.
Mr. Moynihan, 58 years old, got the top role after CEO Kenneth Lewis unexpectedly announced his retirement in fall 2009. During that period, Bank of America faced major financial problems following acquisitions of Countrywide Financial Corp. and Merrill Lynch & Co. To stay afloat, the bank had to take $45 billion from the government.
.. After Donald Trump’s surprise 2016 election, bank stocks broadly jumped. Bank of America shares surged 74% between then and the end of 2017.
.. For the full year of 2017, the bank posted a $21.1 billion profit, excluding an adjustment from the tax cut, roughly matching the bank’s all-time profit record from 2006.
.. The bank issued millions of new shares during the crisis, however, so its per-share earnings remain far below where they were precrisis. Likewise its shares, unlike those of competitors such as JPMorgan Chase & Co. and Wells Fargo & Co., remain below precrisis levels.
.. “Bank of America has done a sensational job under Brian Moynihan,” Mr. Buffett said
Back then, when we were in the engine room, we all knew that one of the by-products of misguided Agile software development was an increase in technical debt. That to deliver working software at speed, we traded off reuse and generated some level of fragmentation. This sort of waste was acceptable as we worked to prioritise responsiveness over efficiency.
We knew that we had to stop and clean up on an ongoing basis. The technical term for this technique is called refactoring
.. As we matured, we started differentiating between efficiency and effectiveness. We realised that our focus on velocity was killing agility, that technical discipline is necessary to enable and maintain responsiveness.
..There are attempts to aggregate initiatives into roadmaps, evolve the strategy based on insights, and enable better innovation accounting, but if you go through the literature available, the focus is on the process, not the customer.
Andrew Ng warns us that as we move from the Internet Era to the Artificial Intelligence Era, we will likely need to shift our approach radically. In the internet Era, we focused on AB testing, on short cycle times, and on pushing decision making to engineers and product managers. Sounds familiar? It should, these are all linchpins of Agile.
.. When it comes to codifying and envisioning what enterprise/business agility looks like, the Agile movement is falling short of expectations. In parallel, the digital agencies and consulting firms that are stepping into this white space, lack the independence to pull it off successfully no matter how many articles are published in the Harvard Business Review.
.. The companies that were once known for exceptional product design innovation, fail to recognise until it is too late that they are losing their most loyal customers because they neglect to design the experience ecosystem thoughtfully. I decided to use a hardware example to represent best the fragmented experiences customers endure when interacting with the Enterprise. Yes, I’m looking at you Apple, the dongle company.
.. The enterprise found itself owning a multitude of disconnected platforms, solutions, and products. Quality, security, and privacy suffered as the years of decentralised velocity at the edges generated a bloated, complicated, disconnected, and unmanageable digital ecosystem.
.. there was a well-intentioned and healthy tension between effectiveness and responsiveness. A tension we should not shy away from because, as Jim Highsmith framed it many years ago, adaptive leaders understand they must ride the paradox between these two forces.
.. This time, code refactoring wouldn’t save us, what we needed, spoiler alert, was customer-centred, organisational refactoring at scale. And refactoring did occur, in the form of backlash against fragmentation, waste and the following flavour of “agility”, “Why do I need to write a story and wait for a programmer to add some content on the website?”. Why indeed!
THE CUSTOMER EXPERIENCE ERA
.. The darlings of the Gartner Quadrants and Forrester Waves announced that we were now in the Age of Customer Experience
.. they witness velocity killing both agility and their work-life balance.
.. The CIO and the Agile and Lean communities shifted their attention from products to platforms. They refactored architectures to become evolutionary. The epicentre of this mammoth effort was still centred around APIs, technology and operations in service of the business strategy. The focus wasn’t on the customer’s experience.
THE CUSTOMER-CENTRED INTELLIGENCE ERA?
.. The commoditisation of technology and the digitisation of the world helped us to get closer to the customer; in some cases, with analytics and programmatic, we managed to get too close without ever considering their experience and trust. We managed to get close to the customer without being customer-oriented.
Frankly, it was not that astonishing when the news broke of the 87 million Facebook users affected by Cambridge analytica’s election meddling. Or was it election advertising? For some of us, it was an expected and inevitable outcome.
.. Perhaps, the current crisis in customer trust will finally propel us into a true experience age — Intelligent, personal, relentlessly relevant, connected, dynamic, and consensual experiences. What Prophet describes as living and breathing brand systems with the ability to learn and evolve at scale. The goal has always been to continuously respond to customer needs, right?
.. In Agile management, there is no such thing as an “internal customer.” The only purpose of work is the ultimate customer or end-user. Under the Law of the Customer, the original producers not only meet the needs the internal customers: they are given a clear line of sight as to what value is being provided for the ultimate customer. Satisfying so-called internal customers is merely feeding the bureaucratic beast. It is a pretend-version of Agile.
Act 15. How Do We Get There?
- Ask the right (human-centred) questions.
- Design Led. Agile Enabled.
- Transformational, Visionary Leadership.When companies get where they’re sort of living by so-called making the numbers, they do a lot of things that are really counter to the long-term interest of the business.
.. Business Agility is the ability to achieve sustained business growth by responding to customer needs. If you are not focused on gaining a deep understanding of your customer and on delivering exceptional experiences, you can’t be responsive, neither can you assure their privacy, security and safety. If you have all that but lack operating model agility you are not a responsive business.
.. Technology must no longer serve the business; the business must no longer serve the business. If we are shifting the focus of the Enterprise from looking inwards to the needs of their customers and hopefully also to the benefit of their ecosystem and society — if we accept that this is the formula for long-lasting Business growth and sustainability — then it’s time to look beyond Agile.