Hi all,
Many of you have asked for an update from the meeting earlier this month, and I must admit, it’s very hard to put words to the experience. This was my third consecutive meeting and the two lads, now aged 84 and 91 respectively, were at their best for mine. Whilst generous in their sharing of their wisdom, they don’t mince words and very happy to tell it as they see it, no nonsense and easy to understand …. Very, very refreshing, and a benchmark to emulate.
There’s so much to share from the over five hours of Q&A. My notes taken during the monster session won’t convey a lot of the context of the discussion, but were short quips and grabs that appealed to me… see below.
I do have a transcript from the meeting (28pages .. not scribed by myself) if anyone is interested, which will give you a much better feel for the context of each of my titbits below.
I also recommend this short, well written piece from Tom Millner, CEO of BKI, who captured the day beautifully for mine … some great quotes, photos and stories also contained within.
I welcome any calls to discuss if of interest (be careful!), otherwise have a great weekend.
PEARLS AND PEARLERS! – Warren Buffett (WB) And Charlie Munger (CM) – Berkshire Hathaway 50th anniversary shareholders meeting, Omaha Nebraska May 2015
CM: Warren, if people weren’t so often wrong, we wouldn’t be so rich
WB: Culture is everything at BRK … BRK will do fine (post WB/CM)
WB: On sugar consumption … 1.9b 8oz coke products consumed every day in the world … more will be consumed in the yrs ahead.
WB: Gotta be happy with what u r doing
WB: I don’t think I’d still be alive if I ate a lot of broccoli and cauliflower
CM .. Sugar is enormously helpful .. it prevents premature softening of the arteries
WB: I don’t see smiles on the faces of people at Whole Foods
CM: Culture of meritocracy are fabulous businesses
WB: Never done a deal based on macro factors … We know we don’t know what the next 12 months look like
WB: Any business which has an economist has 1 employee too many
WB: Charlie, can u think of anything rude to say that’s havnt already said?
CM: Well it would be hard to top that one
WB: Do the best you got
CM: (On a culture where overly focussed on money) … It’s like a pie eating contest where if you win, you get to eat more pie
WB: That really is a topic I know nothing about .. Charlie?
CM: I know less than you
WB: USD will be the reserve currency in 50yrs time
CM: It’s crazy to sweat at night
WB: Well, over financial things
NOTE: Berkshire – Sitting on $60b of cash
WB: Natural disasters after unnatural booms
On Todd and Ted’s qualities … Now overseeing an increasing part of the Berkshire business
Both: Smart, good sense, know how to deal with people, they don’t take credit for other people’s success
Very bright, very solid … They identify with BRK
Trustworthiness most important
WB: When u get old, you’ll get the reputation you deserve
WB: A must read …. ‘Where are the customers yachts’ ….. Incredible amount of wisdom
WB: also, ‘Wealth of Nations’ … Adam Smith … written in 1776
CM: Let other people do what they do best and make sure you work in the field that is most productive for you
We believe in hammering the same things over and over
CM (on a question from a gentleman as to why Geico car insurance, America’s 2nd largest car insurer & 100% owned by Berkshire, never seemed to be the cheapest for him): If you are paying more for car insurance at 74, not a bad trade off (for being healthy and alive)
WB on giving over 99% of his wealth to charity:
Put money to where does it do the most good?
$ have enormous utility to millions of others around the world … Not to me or my kids
WB: Belief in individual philanthropy … Not corporate philanthropy … Need to take care of shareholders … Let shareholders decide … Philanthropy a personal thing
CM (On Greece being in Euro): You can’t form a business partnership with your frivolous drunken brother in law
WB: Praise by name, criticise by category
WB: You can’t start young enough in building good habits
The chains of habit are too light to be felt until they are too heavy to be broken
WB: That’s all we do at Berkshire …. Copy great people
WB: Find a system to unleash human potential
WB on secrets to success:
Being curious, seeking wisdom, had a lot of fun, better off doing something you love than going to work each day with your teeth clenched
CM: Avoid being a perfect idiot and keep doing what you do day after day and it’s amazing how well you’ll do
CM on what matters to you most question:
Your main duty.. your moral duty… is to become as rational as you possibly can be
Berkshire is a temple of rationality
Be generous
WB on same;
Health
That Berkshire does well … Building something each year that is better than the year before
Enormously enjoyable to me, enjoyed the game, enormously fun
Hate losing someone else’s money
CM: A good doctor doesn’t like it if a patient dies on the table either
CM: If you are just trading / managing own money, I hope you morph into contributing something more to society