Warren Buffett 2019 Annual Letter to Shareholders

"In the years ahead, we hope to move much of our excess liquidity into businesses that Berkshire will permanently own. The immediate prospects for that, however, are not good: Prices are sky-high for businesses possessing decent long-term prospects."

Warren Buffett on his massive US$112 Billion in cash/cash equivalent (Feb 2019)

To me, that is one of the more important message from Buffett's letter to shareholders. Pretty much clear indication of where the stock market is heading in the short/medium term. I am just wondering whether he will put more of his cash into Kraft Heinz. On Friday the price of Kraft Heinz shares dropped a significant 27%.

Charlie Munger Interesting Advices

Charlie Munger, Vice Chairman of Berkshire Hathaway had an interview with CNBC Becky Quick. Here are a few quotes which I think are interesting:-

On Question whether the golden era of investing is over
"Now is tougher. …… The valuations have come up. And the competition sorting through those opportunities is more intelligent and more aggressive and more numerous. Of course it's harder."

On Munger's generation of investors
"The opportunities that we all remember came from a demoralized period when about 90% of the natural stock buyers got very discouraged with stocks. That's what created the opportunity for these fabulous records that my generation had. And that was a rare opportunity that came to a rare group of people of whom I was one. And Warren was another."

On US politics and government
"Sometimes the Democrats are in, sometimes the Republicans. In my lifetime, the country run better, net, because we had two parties, each of which was partly in control. If either party had been totally in control of all branches of the government, I think we would be way worse off today."

On US national debt which has reached US$22 Trillion
"Yeah, we're in new territory...… Well, I don't worry much, because every era is a cinch that a great nation will, in due time, be ruined. So I -- time and -- whether it's Rome, where is Britain in its heyday, they all pass. And so our turn is bound to come someday. But I don't like thinking about it too much. It's like my own death. Why should I enjoy thinking about it? But is it coming some day? Sure. Of course it is."

Worries on Nuclear Bombs
"Its a nuclear war. A nuclear war would be a real, real disaster. Global warming is something we could cope with if we had to. But a nuclear war is - that's - that is really serious."

Anything that rises to Munger radar screen now that may be under the radar for other people
"Well, nobody knows how much of this money printing we can do..... That we can ignore the whole subject and just print money as convenient. Well, that's the way the Roman Empire behaved, then it was ruined. And that's the way the Weimar Republic was ruined. And - it's - there is a point where it's dangerous. You know, and of course, my attitude when something is big and dangerous is to stay a long way away from it......"

A display in Dachau Concentration Camp showing the effect of printing money in Germany

On what are the secret to life is, to a long and happy life
"You don't have a lot of envy, you don't have a lot of resentment, you don't overspend your income, you stay cheerful in spite of your troubles. You deal with reliable people and you do what you're supposed to do. And all these simple rules work so well to make your life better. And they're so trite.|"
"And-- staying cheerful -- with -- because it's a wise thing to do. Is that so hard? And can you be cheerful when you're absolutely mired in deep hatred and resentment? Of course you can't. So why would you take it on?"

On raising children
"I have not -- many of my children have worked out well. And I've had very little to do with it. I think they come into the world, to a certain extent, pre-made. And you just sit there and watch. I don't think they're -- it's been simply amazing to me a parent to note know much is sort of preordained. The shy baby is the shy adult. The booming, obnoxious, domineering baby is the booming, domineering, obnoxious adult. I've never found a way to fix that. I can be cheerful about it, but I can't fix it. I can change my reaction, but I can't change the outcome."

Feb 2019.
Credit: CNBC

Emirates Economy Class Review

I took Emirates Economy Class to Dubai, a seven hours trip.

Here is my review:-

1) Food - Emirates has better food than Qatar Airlines. The food was tasty enough for me. The drinks were sufficiently served with a bar cart that followed behind the main meal cart. Singapore Airlines has equally good food comparable to Emirates.  However, China Southern Airlines stewardesses routinely walked along the isle asking passengers whether they want water. This service from China Southern Airlines is commendable for long flights

2) Flight Seat - Whether Singapore Airlines, Qatar Airlines or Emirates lines, the space available for economy class does not differ significantly. However, because Qatar and Emirates are flying connecting flights, ie Dubai or Doha are used as a base to consolidate passengers. Their flights are mostly full. This means that the chance of an empty seats is very low.  Singapore Airlines has a higher probability of an empty seat next to you.

3) Service - No difference between Singapore, Qatar or Emirates. You don't see the stewardesses in economy class after the meals are served. China Southern Airlines stewardesses do make routine rounds to address passenger needs. China Southern Airlines stewardess even perform their appreciation message for international flight.

4) Planes - All Singapore, Qatar or Emirates are rather new. I notice that Emirates and Qatar switch on their mood lighting with beautiful stars filled ceiling. Beautiful. Singapore Airlines does not switch on its mood lighting for economy section.

5) Baggage Handling - Both Emirates and Qatar airlines are disappointment. For Emirates, my luggage was found damage after flight. For Qatar, my luggage was found to be opened and my suit soiled after flight. I have no such problem with Singapore Airlines or China Southern Airlines. So it is advisable to bring a durable luggage when travelling with Emirates or Qatar airlines.