Contents of the Q&A:
1. FORMAL BUSINESS MEETING BEGINS
2. GENERAL RE CEO RON FERGUSON DECLINED TO JOIN BOARD
3. DISADVANTAGES OF BEING A CORPORATE DIRECTOR
4. BERKSHIRE DIRECTORS ELECTED
5. FORMAL BUSINESS MEETING ADJOURNS
6. WE BUY BUSINESSES AND DON’T PREDICT STOCK MOVES
7. EXPECTING SLOW SHORT-TERM GROWTH OF GEN RE’S FLOAT
8. HOW BERKSHIRE’S ENORMOUS BID FOR LONG-TERM CAPITAL MANAGEMENT FAILED
9. THE TRUE FIRST HEDGE FUND
10. LTCM: SMART PEOPLE’S DUMB RISKS WITH DERIVATIVES
11. “RIGHT APPROACH” TO ESTIMATING BERKSHIRE’S INTRINSIC VALUE
12. INTERNET WILL HAVE A HUGE IMPACT, BUT HARD TO PREDICT WINNERS
13. BUFFETT PRAISES ANALYST ALICE SCHROEDER
14. DIFFERENT COMPENSATION PLANS WITH THE SAME GOAL
15. LOW-COST FLOAT GENERATES MONEY FOR INVESTING
16. BIG RETURNS ARE EASIER WITH SMALL AMOUNTS OF MONEY
17. “SURPRISINGLY HIGH” RETURN ON EQUITY
18. CORPORATIONS HOOKED ON “CORRUPT” STOCK OPTION ACCOUNTING
19. WHY BUFFETT DISSOLVED HIS PARTNERSHIP IN 1969
20. BUFFETT’S MUSICAL FAMILY
21. SPOTTING A GREAT INDUSTRY DOESN’T GUARANTEE YOU’LL MAKE MONEY
22. THANK YOU, SHAREHOLDERS
23. DO YOU EVER GET TIRED OF BEING WARREN BUFFETT?
24. GOODWILL COSTS SHOULD STAY ON THE BOOKS
25. “WE ARE NOT IN THE BUSINESS OF BEING WHITE KNIGHTS”
26. CHINA OFFERS OPPORTUNITIES, BUT HARD TO PICK WINNERS
27. WE PREFER TO BUY COMPANIES, BUT STOCKS OFFER MORE BARGAINS
28. BEING “WEALTHY” WITHOUT HAVING A LOT OF MONEY
29. “WE BLEW IT” ON PHARMACEUTICAL STOCKS
30. MUNGER DEFENDS “ALMOST OBSCENE AMOUNTS OF MONEY” FOR DRUG COMPANIES
31. WHY BUFFETT BUYS SMALL AMOUNTS OF SOME STOCKS
32. WHY SOME SHAREHOLDERS GET THE ANNUAL REPORT SOONER
33. “DECEPTIVE ACCOUNTING” AT MANY COMPANIES
34. FINANCIAL STRENGTH OF OUR INSURERS IS A BIG ADVANTAGE
35. GEICO AND EXECUTIVE JET BOOSTED INTRINSIC VALUE
36. NO NEED TO “GROOM” POTENTIAL BUFFETT SUCCESSORS
37. ONE WAY TO ADD BERKSHIRE TO S&P 500 WITHOUT MARKET DISRUPTION
38. WHAT WE’D NEED TO MAKE AN INTERNATIONAL ACQUISITION
39. BULLISH ON COCA-COLA DESPITE HIGH P/E AND DOLLAR STRENGTH
40. NOTHING TO SAY ABOUT BERKSHIRE’S INVESTMENT IN SILVER
41. YEAR 2000 COMPUTER PROBLEM WON’T BE A “BIG DEAL”
42. JAPAN’S ECONOMIC SLUMP DOESN’T AFFECT BERKSHIRE
43. MUNGER’S LESSON ON NOT ALLOWING ACCOUNTING “SLOP”
44. ANALYST COVERAGE WON’T AFFECT BERKSHIRE’S STOCK
45. EXECUTIVE JET’S ADVANTAGE
2:52:19 Valuing businesses
3:05:16 Start young, rolling the snowball on a very long hill
3:06:44 You cannot look around for ppl to agree or even know what you are talking about
3:07:50 the first $100,000
3:31:25 Moat, Management
3:34:21 Why do smart ppl do dumb things?
3:35:06 Self-pity, victimizing yourself, the worst
3:50:55 You have to think for yourself
3:51:59 the Warren Buffett’s Portfolio & “Titan” & “Guns, Germs, and Steel”
4:06:29 How and what to read? And investigative, journalistic process, write a story, silver bullets.
4:13:13 BRK Value Adding to subsidiaries
- the float, tax advantage, move faster
- positive association
- enable managers to focus on what they do the bestKeep asking Why Why Why?
