Protection of capital is our main concern. We maintain our Underperform ratings on all the Spanish banking stocks we cover This time around we focus on general issues which will help our clients understand our approach to research: the difference between a medium of exchange and a store of value, the definition of inflation, the misguided focus on consumption, the bond bubble, how interaction with complex systems generates unintended consequences that are impossible to predict, how incentives drive behaviour and our (very different) approach to valuation – price defines risk. We have learnt to pay extra attention to: a) second-level thinking, b) conventional wisdom (which is frequently wrong), c) tail risk events (which are always underestimated), d) the power of incentives and e) the unintended consequences of seemingly harmless actions. It is impossible to summarise the value investment philosophy in just a few lines but we continue with our tiny contribution to the investment world, adapting our thinking process to what we believe to be a very rational system. Value investing is the cornerstone of our research approach. Learning from The Sage and Charlie is an opportunity we always cherish. Berkshire’s Woodstock for Capitalists is unique and so different that we believe is well worth the effort. Last weekend we travelled halfway round the world, together with 40,000 other Buffett and Munger fans, to attend Berkshire’s 50th Anniversary Jamboree. It is not intended as a piece of relative recommendation investment advice and should not be read as such. This note is a personal reflection of Exane’s Spanish banks analyst’s trip to Berkshire Hathaway’s 50th Anniversary event. Esperamos haber trasladado lo mejor de sus reflexiones. La recensión de su amplia nota sobre la conferencia es responsabilidad exclusiva nuestra. Recordemos que Santiago es uno de los mejores analistas europeos del sector bancario. Francamente interesante sus reflexiones personales que muestra su opinión particular que no tiene por qué coincidir con la de BNP. Reproducimos su opinión personal en ingles sobre el evento. A continuación puedes leer el relato en primera persona que el analista de Exane BNP, Santiago López Díaz, ha hecho de su asistencia a la Convención anual de Berkshire Hathaway en Omaha.

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