The annual meeting of Berkshire Hathaway traditionally serves as a key indicator of current and future market conditions for investors and financial planners. The 2019 annual meeting, which was held on May 4, 2019, was no exception to this rule and provided some important insights into the investing strategies of this innovative financial company.
Finding Bargains as an Investment Strategy
Warren Buffett, the CEO and Chairman of Berkshire Hathaway, discussed the acquisition of a significant amount of Amazon stock by his company and pointed out that this transaction was based on value investing principles. He focused on the cash flow potential of Amazon rather than the apparent undervaluing of the stock, which reflects a cornerstone of the Berkshire Hathaway investment strategy.
By looking for stocks and investments with growth potential rather than seeking bargains for their own sake, investors can typically make the most practical moves for their financial portfolio.
Buffett also pointed out the value of keeping cash available to take advantage of real bargains and opportunities. ReProp Financial takes a similar approach to funding your loan. We perform all the necessary due diligence to make sure that you receive the right loan for your needs and that the capital provided by our investors is protected against loss. This balanced approach to private money lending is an ideal solution for both investors and for your commercial and residential loan needs.
Aiming for Longevity
Another topic discussed during the Berkshire Hathaway investor meeting is the durability of businesses and brands in the competitive marketplace. Charlie Munger, the Vice Chairman of Berkshire Hathaway, noted that of the companies that comprised the top 100 in 1900, only one company still holds that place today. While centuries of success is obviously not the norm in the business environment, looking for investments that will stand the test of time will allow you to enjoy greater profitability and stability when managing your financial portfolio.
Stockpiling Cash
In recent months, Berkshire Hathaway has been amassing a record amount of cash on hand. The company cited excessively high asking prices as a reason that it has not made any major acquisitions in the last two years. Buffett has indicated that he is actively looking for investments and acquisition opportunities in the U.S. and around the world. By biding their time and waiting for the right investments, however, Buffett and Munger believe they can protect the interests of their shareholders and their position in the financial marketplace.
ReProp Financial has a similar approach as a private money lender. We work with investors to ensure that their money is protected and with borrowers to design loans within their price range. By customizing the terms of our private money loans, we can ensure that we deliver the best solutions.
At ReProp Financial, we are a specialty finance company based in California and serving the West Coast of the United States. Our team is committed to providing the best and most practical private money lending options for every customer we serve. Prospective borrowers sometimes ask to hear about loan programs. This question is difficult because every situation is unique and we want to make a loan that works for everyone. Our loans range from 6 months interest only to 15 years fully amortizing and every iteration in between. If you need a commercial, agri-business, lease residential or construction loan tailored to your specific set of needs, call us today at 1-800-444-2948. We look forward to the opportunity to work with you.
