Good morning allegedly squad, this is your friendly former financial analyst tom and in today's video i got a lot of bangers for you. We have some bad news for tesla, actually legitimately bad news, not clickbait. Elon's compensation plan is under fire and we have some news from tsmc the chip manufacturers from taiwan, with a surprising announcement about how fast they can actually catch up with the other industry demand. It is way faster than i initially thought again.

There's a disclaimer there to be made, but most importantly, berkshire hathaway and warren buffett actually had their annual meeting yesterday and they brought a banger of a show, including an actual legitimate bombshell again, not clickbait. They actually named a successor which has been in the works for 15 years. We've been waiting to hear who that gon na be, and actually now we already know yesterday they revealed the successor, i'm gon na. Let you know in a second, you know i don't hold you hostage before we get started an important disclaimer.

Everything you hear here is my opinion. By the way you notice they hear here, and it is strictly my opinion. It is not fact it might be inaccurate. It might be completely wrong, it might be the ramblings of a madman.

You got ta, do your own research, allegedly blah blah mother effing blah before we get started. Don't click, nothing, don't smash, nothing! Don't sign up or buy nothing, just listen up and take in the news, because we got a lot to talk about so, first of all, let's start with tesla and giga berlin. Now it seems that the berlin factory is being held up by six months now in any other country. I would say well, this is bad news.

Six months is a massive delay. However, you got ta understand germany and, if you're from europe like me, you know that germany is kind of known for the bureaucracy and the red tape and how hard that is to get down over there. In fact, i believe their airport in berlin was delayed for nine years and it seems that instead of june, the actual launch will be in january, which is not a huge deal, especially given how things work in germany for germany six months delay, it's actually pretty normal. You got ta understand that with every project you always have to expect delays cost overruns.

A lot of things, don't always work out like you plan, especially with massive infrastructure projects, especially in germany, so six months delay actually seems reasonable to me no big deal. However, although i think the tesla people will be speaking out about how horrible the bureaucracy is, i think they're actually happy that they get to delay this by six months, because you have to understand that germany, according to what elon hinted on the call a few days Ago will be the test bed for all the new technology, which means that the new model-wise with the new battery the 4680 are supposed to come out out of giga berlin. Now that thing ain't ready yet because he himself said in the conversation that he had with shareholders a few days ago, that those batteries are at least 12 to 18 months away. If i remember correctly comment below, let me know if my time frame is off, so in fact it seems that this delay is actually good for tesla pr, because it's going to be playing into the hands essentially holding off the production and launching only in january, because I believe they do want to eventually roll out the 4680s from that factory.

Now another news before we go to berkshire hathaway and all that good stuff, so elon's plan actually is again in the middle of the discussion, because everybody's going gaga about elon stocks now elon is probably invested at 32 billion already as far as the stock. He can actually purchase two options and the 32 billion is actually the difference. That's what he actually stands to gain based on his exercise, price, which i think on average, like 70 dollars. Now, here's the thing a lot of people have this urge to go out and get their pitchforks and completely go at elon at this.

Well, nobody should make 32 billion dollars oh hold on their sport. You got to understand that first of all, elon is probably one of the most extraordinary ceos of our generation, so he got a lot of done, so he kind of deserves the money beyond the fact that i want to explain here that elon never took a salary From tesla ever no salary for a good 13 years, so not taking salary going full stock options, compensation means that this guy was betting on the company. He took a lot of risk, so those 32 billion that already invested by the way. That's not the end of it.

He still has a much bigger potential. There actually reflects the risk he took not taking any salary and in fact i definitely think he outperformed and executed. So he deserves the money i have no ill will for him taking that cash. However, what i also want you guys to understand is that elon doesn't really need that money, because he was an independent billionaire before he even invested in tesla.

That's right! A lot of people, don't remember that, but he didn't found tesla he actually invested in it. Then he became the ceo quite early by the way, but he was a billionaire because he sold paypal with peter thiel. So he doesn't really need the money. Beyond that, imagine, if you had tens of billions, would you want to invest in a rocket company that sends rockets into space? That's a losing project? By definition, would you start an eevee company, a boring company or a boring company? As far as you know, just a not interesting one, you would just buy real estate and just live of the interest be independently billionaire for the rest of your life.

He didn't need to take these risks whatsoever. He did it because he wanted to get interesting done, and i applaud him for that. He could have just sat back on his porch hit a mai tai and enjoy his money by investing in real estate or stuff like that. That have pretty much no risk or very little risk investing in these companies which take up 150 of his time, including sleeping at the factory for an extended period of time and actually going and risking your money, your reputation and wasting your time.

It actually means a lot, so he definitely deserves the money. In my opinion, if you have a different one comment below now, moving on to spicy stuff, psmc actually just announced that they're about to catch up with the automotive demand for chips by the end of june, which means next month. Does this mean the crisis is over? Not exactly because you actually have to read the entire interview, not just ahead nut russian accent, not just the headlines. Let me show you yes, and i think you absolutely have to read this paragraph to get some context in this paragraph.

They essentially ask them. Well. Do you think this means that the auto chip shortage will end in two months? He said no, there's a time lag in car chips, particularly the supply chain is long and complex. The supply takes about seven to eight months.

So here's the thing what he was referring to is actually tsmc being able to catch a breath to get to the minimum requirements just to be able to produce. That's definitely not the end of the crisis. He said it seven to eight months, probably looking at q1. Probably q2 of next year for the chip shortage.

So it's really interesting to see that they're putting out these headlines. However, not a lot has changed. We know tsmc are expanding capacity, but we're probably looking at good seven to eight months for this chip shortage to continue and now moving on to the main event, the berkshire hathaway annual shareholders meeting and did we have a banger or what now charlie, munger and warren Buffett, you could not mistake them they're, definitely not acting speaking or thinking their age. These guys are 97 and 90 years old they're at their prime.

Oh, my goodness, you can hate on them. You can say the dinosaurs outdated. Whatever i absolutely love this. They were on fire, including announcing.

Finally, this successor to warren buffet, shelly, monger and warren buffett actually confirmed that the successor to warren buffett once here tires is going to be great able, 59 years old been a long time with the company. He heads the non-insurance business of berkshire hathaway and he's going to be the successor, big news, because now we actually know who's the guy in line. I think they definitely have a succession plan. I believe that greg abel is heavily involved with the management as it is, so it's going to be a smooth transition, however check this out.

This was not even close to being the main event of this thing, because we had a lot of bangers form, warren and charlie monger. We absolutely have to talk about the main highlights, because there's a lot to talk about and as you'd expect, warren buffett went back to the well going hard on how etfs outperform any other investment strategy, especially for retail investors. Now we all know that people like to call them outdated and he's a dinosaur but check out what he said out of the 30 companies, which was the leading companies in 1990, which companies are still on the list 30 years later. None, that's the crazy part.

However, if you just invest in the s p 500 - let's say you just invested in the s p, 500 and by the way, that's my take on this two years ago. If you just invested in the sap product two years ago, you did 40 on your money with literally very low risk. The s p 500 is one of the greatest cheat codes in the investment industry and it's a non-secret and a lot of these financial managers. Money managers, professional managers - they want you to think that they can beat the s p 500, because they have some crazy magic trick up their sleeve or some technique.

They can't consistently over the course of 10 years. Almost no financial manager can consistently beat the s. P. 500 every year, because it's literally betting against the economy, which is never a good thing, so i completely agree with warren buffett.

You can call me a boomer, you can call me a dinosaur, but hey i'll, take my 40 over two years over any other company. Of course, it's always nice to scratch lottery tickets and i'm not saying you should not invest in individual companies. But i have a big chunk of my investment portfolio, which i think you should as well in the s p. 500, because betting against economy is never a good idea.

If you are patient, if you have a five year horizon, that's probably one of the smartest investments you can do because you're not dependent on the performance of any specific company just on the economy growing which, over the long run it always does. And next up we have the odd couple apple and airlines. How does apple and airlines actually combine? Well, warren buffett actually sold airline holdings completely and trimmed apple position just before the big spike and the question was from the audience, taking a little bit of a shot at warren. What does he think about that? He had a different answer for both questions for apple.

He said that might have been a mistake, as i agree with him. I think apple are in front of a major boom that people can't see yet for airlines. He said i'm doubling down, don't like airlines margins are not great. Industry is problematic, travel ain't coming back.

So fast, not the best investment. I see better opportunities out there, but best of luck to airlines apple probably should not have sold. I agree with him. Next up we had charlie monger, actually take some shots at the money.

Printer of the us government, basically saying hey federal spending is going out of control. We can't keep this up. This has got to stop essentially taking some shots at john paul sitting in the printer, basically saying hey, somebody has to pay the tab. For this thing, we can't keep doing this.

We can't just print money. Like nothing happens now. I actually agree with charlie munger here, but check out what he said now. I do think there's a good chance that this extreme conduct is more feasible than everybody thought, which is actually agreeing a little bit with paul here.

But i do know that if you just keep doing it without any limit, it will end in disaster. Essentially saying hey. Dude you just dodged the bullet with this crazy printing. It's time we slow down a little bit, no more stimulus, no more infrastructure spending.

Let things just mellow down! You dodged one, good, let's move on! Essentially what he's warning from here is inflation he's warring from stagnation? A lot of issues that can come up with this crazy spending - i think charlie munger again is on point here, but you didn't really think i would disagree with him right and then, after things warmed up a little bit, we had warren buffett, get off his seat And take some massive shots at spax. Basically saying hey sparks are not here to stay, it's a fad. It will blow over. Essentially, his main issue was, with the structural part of spax, limiting the timeline for two years, putting a lot of pressure on management to actually park.

The money somewhere creates inefficiencies. I agree, but i do not think that this is the main problem with specs, and i want to complement this point by giving another perspective, i think that the inherent flaw with specs is not necessarily the structural problem that he's talking about it's more. The problem of the type of investor you actually attract now, here's the thing when you have people giving money without knowing which company this money will be invested in you have no relationship, that's incredibly dangerous, because, unlike an ipo with this type of investment, the original investor Has no idea where the money is going, meaning he's not emotionally invested in company, he doesn't care, he doesn't necessarily believe in the company. He couldn't care less.

Now, when you have this relationship with win the original investor and the company, you have a massive selling pressure. That's why in specs, you always see this massive spike once it's announced and then a slow decay, because all of these investors are going through the door, basically saying sayonara, because none of them, or at least for the most part most of them. They don't necessarily believe in the company, because the waste packs are structured in an ipo. I got ta love the company to put my money down in a spec.

That's not the case and here's where i see the main issue with pack, but in general i completely agree with the conclusion of warren here. Spacks are definitely not here to stay, it's extremely inefficient and i think in the long run they will fizzle out and of course, as you would expect, we had a charlie monger shot at bitcoin, calling it so disgusting and contrary to the interest of civilization. I lost my breath there for a second, i completely disagree. You know i like charlie, i like warren, i'm a huge fan.

I think that they're extremely smart, but i think they lack the ability to completely understand what this thing really is. As evident by the last thing. He actually said what he said here. I don't welcome a currency that is so useful to kidnappers and extortionists.

I mean this is probably bitcoin's issues about 10 years ago. Bitcoin these days are being adopted by massive institutions, big-time companies - you can actually buy tesla with bitcoin and here's the thing this criticism was valid five six years ago, maybe even seven years ago, bitcoin has completely changed, but it did it so fast that people like buffett, Like monger can't keep up it's a completely new economy, blockchain is the future. So i completely disagree here, but i think it's okay because they run a completely different shop where bitcoin is irrelevant. So let's just leave it at that.

It's one man's opinion, which i respect, but i think it's wrong and you do you. I do me, charlie, does his it's fine and then we had warren buffett, basically issue a warning to robin hood. Actually, gamifying trading, here's what he said. It's become a very significant part of the casino group that has joined into the stock market, and you had charlie and warren actually agree on this point basically saying this is a casino: now these guys are playing a game.

This is a very dangerous game. Beyond the fact that charlie munger basically said hey paying for order flow is a bad idea. It's like waving a red cloth in front of a ball. I think he's right when you're paying for order flow, essentially you're incentivizing the brokerage to provide more deals to the actual market makers, creating a bigger incentive for higher frequency trading versus long-term investing, which is always the best idea for retail investors.

So, where do i stand on this? I think that paying for order flow is quite dangerous. I agree with charlie here. I think that creating this incentive to increase the frequency of trading, because this is how you get paid - is a very problematic concept. I'd rather pay a fee and just haul my stuff forever, not forever, but for a very long time.

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