Buffett says the world can change in drastic ways so invest in index funds
Warren Buffett started his presentation with a list of today’s 20 biggest companies in the world and he asked how many of them would still be on the list 30 years from now. These powerhouses include Apple, Saudi Aramco, Microsoft, Amazon, Alphabet and Facebook.
The “Oracle of Omaha” reminded the audience that none of the top 20 companies from 1989 were on today’s list. More than 30 years ago, over half of the largest companies globally were Japanese firms, including banks and industrials. The only U.S. companies on the list were Exxon, GE, Merck, IBM, American Tel & Tel and Philip Morris.
“It tells you that capitalism has worked incredibly well, especially for the capitalists ... The world can change in very, very dramatic ways,” Buffett said, adding that the best way to invest is via index funds.
Munger says unchecked federal spending will ‘end in disaster’
Warren Buffett and his long-time business partner Charlie Munger addressed the combination of high government spending and rock-bottom interest rates, with Munger saying that he didn’t think the extreme scenario was sustainable forever.
Munger said that professional economists had been too confident in their analysis and had been proven wrong about many things, but he said that Modern Monetary Theory, which calls for greater fiscal spending with less regard for budget deficits, was not necessarily the answer.
“The Modern Monetary Theorists are more confident than they ought to be, too. I don’t think any of us know what’s going to happen with this stuff,” Munger said. “I do think there’s a good chance that this extreme conduct is more feasible than everybody thought. But I do know that if you just keep doing it without any limit it will end in disaster.”
Buffett and Munger not worried about potential tax hikes
Warren Buffett and Charlie Munger said the proposed corporate tax rate hike from the Biden administration would be a negative for shareholders but they are not particularly worried about it and the company will adapt.
Buffett noted that some companies try to fear monger by saying the tax rates will be passed through to customers.
“It’s a corporate fiction when they put out statements about the fact that it will be terrible for all of you people,” Buffett said.
Buffett, who is a Democrat and said he voted for Biden, said he doesn’t like to get into policy specifics during Berkshire events. He did point out that the corporate tax rate was significantly higher early in his career, above 50%.
Debt remains a concern for investors, particularly when it comes to AT&T’s dividend streak. The company has not declared a dividend increase since December 2019. Therefore, it will need to announce a raise at some point in the next year to maintain its Dividend Aristocrats status.
That said, the company’s immense free cash flow, in our view, diminishes the importance of this concern. Non-core asset sales will also aid in deleveraging. Due to expected earnings growth, the high dividend yield, and a low valuation, we believe AT&T can provide attractive total returns to shareholders in the coming years. As a result, AT&T stock remains a buy for income and value investors.
Tech stocks not happy with the prospects of (slightly) higher rates
Yellen may not be in the driving seat at the Fed anymore, but Wall Street still respects her opinion on where rates could be headed. And that could be up, according to her comments overnight. In recorded comments, Yellen said that it “may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat”. Whilst she has no direct impact on Powell’s decision on timing, Fed-fighters no doubt feel vindicated as bond yields fell.
![]()
putting in an intermediate support at 117-118 which coincides with previous gap and support and also near short term lower bollinger band.
![]()
117-118 accumulate some, 111 buy more
invalid if RSI turns bearish

tesla now 600PE like nvr be4. wht r u waiting for?Hoping for a crash for tsla so i can enter XD
