2021年股东信
伯克希尔哈撒韦公司致股东:
根据美国公认会计准则(GAAP),伯克希尔2020年的盈利为425亿美元。这一数字的四个组成部分是219亿美元的营业利润,49亿美元的实现资本利得,我们持有的股票中存在的净未实现资本利得增加所带来的267亿美元收益,最后,我们拥有的一些子公司和附属公司的价值减记导致的110亿美元损失。所有项目均在税后基础上列示。
营业利润是最重要的,即使它们不是我们公认会计准则总额中最大的项目。我们在伯克希尔的重点是增加我们的这部分收入和收购大的处于有利位置的企业。但去年,我们两个目标都没有实现:伯克希尔没有进行大规模收购,营业利润下降了9%。不过,通过保留收益和回购约5%的股票,我们确实提高了伯克希尔的每股内在价值。
与资本利得或损失(无论是已实现或未实现)相关的两个公认会计准则组成部分每年都在反复波动,这反映了股票市场的波动。无论今天的数据如何,我和我的长期合作伙伴查理·芒格都坚信,随着时间的推移,伯克希尔的投资收益将是可观的。
正如我多次强调的那样,查理和我将伯克希尔持有的上市股票(截至去年年底价值2810亿美元)视为一个企业集合。我们并不控制这些公司的运营,但我们确实按比例分享了它们的长期繁荣。然而,从会计角度来看,我们的那部分利润并没有包括在伯克希尔的收益中。相反,只有这些被投资方支付给我们的股息才会被记录在我们的账簿上。根据公认会计准则,被投资方代表我们保留的巨额资金也变成无形资产。
然而,这些看不见的东西不应该被忽视:这些未记录的留存收益通常为伯克希尔创造价值 —— 大量价值。被投资方利用这些留存资金来扩大业务、进行收购、偿还债务,通常还会回购股票(这种行为增加了我们在他们未来收益中所占的份额)。
正如我们在去年的股东信中指出的那样,留存收益在整个美国历史上推动了美国企业的发展。对卡内基和洛克菲勒行之有效的方法多年来对数百万股东也行之有效。
当然,我们的一些投资人会令人失望,他们留存的收益几乎没有增加他们公司的价值。但其他公司会超额完成任务,其中少数公司表现出色。总而言之,我们预计自己在伯克希尔非控股业务(别人会认为是我们的股票投资组合)留存的巨额收益中所占的份额,最终会给我们带来等量或更多的资本利得。在我们56年的任期中,这一期望一直得到满足。
我们GAAP数据的最后一个组成部分——丑陋的110亿美元减记——几乎是全部量化我在2016年犯的一个错误。那一年,伯克希尔收购了精密铸件公司(Precision Castparts,“PCC”),我付了太多的钱。
没有人以任何方式误导我——我只是对PCC的正常盈利潜力过于乐观。去年,作为PCC最重要的客户来源,整个航空航天业的不利发展,暴露了我的误判。
在收购PCC的过程中,伯克希尔收购了一家很好的公司,同行业中最好的一家。PCC的首席执行官马克-多尼根是一位充满激情的经理,他一如既往地将同样的精力投入到我们收购的业务中。我们很幸运有他来管理。
我认为我的结论是正确的,PCC将随着时间的推移,在其运营中部署的净有形资产上获得良好的回报。然而,我对未来收益的判断是错误的,因此,我也就错误地计算出了为收购该企业支付的合理价格。
PCC远非我犯下的第一个错误。但这是一个大错误。
我们的弓上有两根弦
伯克希尔哈撒韦经常被贴上“综合企业集团”的标签,这是一个贬义词,指的是拥有大量不相关业务的控股公司。是的,这是对伯克希尔正确的描述——但只是部分描画。为了更好理解我们如何以及为什么不同于其他综合性企业集团,让我们回顾一下历史。
长期以来,综合企业集团通常会局限于收购整个企业。然而,这一战略带来了两个大问题。有一个问题是无解的:大多数真正伟大的企业都无意让别人接管。因此,渴望收购的企业集团不得不专注于那些缺乏重要和持久竞争优势的一般公司。那不是一个钓鱼的好池塘。
除此之外,当联合企业不得不收购平庸的公司时,他们常常发现自己需要支付惊人的“控制权”溢价,以诱捕他们的猎物。一些精明的企业集团知道如何解决这个“超额支付”的问题:他们只需让自己公司估值变得高得离谱,来作为昂贵收购的“货币”。(“我愿意花1万美元买你的狗,做法是把我单价5000美元的两只猫给你。”)
通常,让综合企业集团股票估值过高的手段包括促销和“富有想象力的”会计操作,这些手段充其量是欺骗性的,有时甚至会越界成为欺诈。当这些招数“成功”时,这家集团会将自己的股价推至商业价值的三倍,以便收购估值是实际价值两倍的目标公司。
投资幻想可以持续相当长的时间。华尔街喜欢并购交易产生的费用,而媒体则喜欢精彩的推介者提供的故事。同样,有时候,一只被推销的股票飙升的价格本身也可以成为投资幻想就是现实的“证据”。
最终,当然,盛宴结束,许多商业“皇帝”没穿衣服。金融历史上充斥着许多著名企业集团的名字,这些企业家最初被记者、分析师和投资银行家誉为商业天才,但后来却被抛进商业垃圾场。
大集团声名狼藉。
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芒格和我希望我们的企业集团拥有具有良好财务状况和优秀经理人的多元化企业集团的全部或部分,而伯克希尔是否控制这些业务对我们来说并不重要。
我花了好一会儿才明白过来。但是芒格,还有我在伯克希尔继承的纺织业务中苦苦挣扎的20年经验,最终说服了我,拥有一个很棒的企业的不控股股权,要比拥有控股100%的挣扎在边缘企业更有利可图,更愉快,更少工作量。
基于这些原因,我们的企业集团将继续由可控的和非可控的业务组成。芒格和我会根据一家公司持久的竞争优势,管理能力和特点,以及价格,将资金配置到我们认为最合理的地方。
如果这一战略不需要我们付出多少努力,那就更好了。与跳水比赛使用的计分系统不同,你在商业活动中不会因为有“难度”而得分。此外,正如罗纳德-里根告诫的那样:“据说努力工作不会导致死亡,但我要说为什么要冒这个险呢?”
家族的珠宝以及我们如何增加你的珠宝份额
在A-1页,我们列出了伯克希尔旗下的子公司,这些公司在去年年底雇佣了36万名员工。
您可以在本报告后面的10-K中阅读到更多关于这些控股公司的信息。我们主要的头寸集中在我们拥有少量股权,但不控股的公司,这些公司列在这封信的第7页。这部分也同样非常庞大和多样化。
然而,伯克希尔的大部分价值存在于四大业务,其中三大业务为我们的控股业务,我们仅持有第四大业务5.4%的股权。四大业务都是珠宝。
价值最大的是我们的财产/意外险业务,53年来一直是伯克希尔的核心业务。我们的保险家族在保险领域是独一无二的。它的负责人Ajit Jain在1986年加入了伯克希尔哈撒韦公司,他也是独一无二的。
总的来说,我们保险业务的运营资金远远超过其全球竞争对手。我们的财务实力,加上伯克希尔每年从其非保险业务中获得的巨额现金流,使我们的保险公司能安全地遵循以购买股票为主的投资策略,这对绝大多数保险公司来说是不可行的。那些保险公司,出于监管和信用评级的原因,必须以购买债券为主。
现在债券并不是好的投资标的。你能相信最近10年期美国国债的收益率是0.93%——比1981年9月的15.8%的收益率下降了94%吗?在某些重要的大国,如德国和日本,投资者从数万亿美元的主权债务中获得负回报。全球范围内的固定收益投资者——无论是养老基金、保险公司还是退休人员——都面临着暗淡的未来。
一些保险公司,以及其他债券投资者,可能会试图通过将购买转移到由不稳定的借款人支持的债券,来为目前可怜的回报提供动力。然而,高风险贷款并不是解决利率不足问题的办法。30年前,一度强大的储蓄和贷款行业毁了自己,部分原因是忽视了这条箴言。
伯克希尔现在拥有1380亿美元的保险“浮动”资金 —— 这些资金不属于我们,但我们可以配置,无论是配置债券、股票还是美国国库券等现金等价物。浮动资金与银行存款有一些相似之处:保险公司每天都有现金进进出出,但保险公司持有的现金总额变化很小。伯克希尔持有的巨额资产很可能会在未来许多年保持在目前的水平,而且从累计角度看对我们来说是没有成本的。当然,这个令人高兴的结果可能会改变 —— 但是,随着时间的推移,我会喜欢我们的胜算。
在我每年给你们的信中,我已经重复地 —— 有些人可能会说没完没了地 —— 解释了我们的保险业务。因此,今年我会请希望更多了解我们保险业务和“浮动资金”的新股东阅读2019年报告的相关部分,今年再次刊发在A-2页。重要的是您要了解我们从事保险业务所存在的风险和机会。
我们第二和第三大最有价值的资产是伯克希尔对以货运量计美国最大铁路公司BNSF的100%持股,以及我们对苹果公司5.4%的持股。排名第四的是我们持有91%的伯克希尔哈撒韦能源公司(BHE)。这是一个非常不同寻常的公用事业公司,在我们拥有它的21年里,它的年收入从1.22亿美元增长到了34亿美元。
关于BNSF和BHE在这封信后面我将做更多说明。然而,现在,我想把重点放在伯克希尔会定期使用的一种做法上,以提高你对它的“四大资产”以及伯克希尔拥有的许多其他资产的兴趣。
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去年,我们花247亿美元回购了相当于80,998股伯克希尔哈撒韦A股的股票,对伯克希尔的资产扩张表现出了热情。这一行动使你们在伯克希尔旗下所有企业的持股比例增加了5.2%,而你们根本不需要动用你们的钱包。
按照查理和我长期以来推荐的标准,我们进行了这些回购,因为我们相信,它们既能持续提高持股人的每股内在价值,也能让伯克希尔拥有充足的资金来应对可能遇到的任何机会或问题。
我们绝不认为伯克希尔的股票应该以任何价格回购。我之所以强调这一点,是因为美国的CEO们有过这样一个尴尬的记录:在股价上涨时,他们投入更多公司资金用于回购,而不是股价下跌时。我们的做法恰恰相反。
伯克希尔对苹果的投资生动地说明了回购的力量。我们从2016年末开始购买苹果股票,到2018年7月初,我们持有的苹果股票(经拆股调整后)略多于10亿股。说到这里,我指的是伯克希尔总账户中持有的投资,而不包括随后被出售的非常少的、单独管理的苹果股票。当我们在2018年年中完成购买时,伯克希尔的一般账户持有苹果5.2%的股份。
我们的投资成本是360亿美元。从那以后,我们都享受了定期股息,平均每年约7.75亿美元,而且在2020年,通过出售我们头寸的一小部分,我们还获得了额外的110亿美元。
尽管有出售 —— 你们瞧! —— 伯克希尔目前仍持有苹果5.4%的股份。这一增长对我们来说是没有成本的,因为苹果一直在回购其股票,从而大幅减少了目前的流通股票数量。
但这远不是所有的好消息。因为我们还在两年半内回购了伯克希尔的股票,你现在间接拥有的苹果资产和未来收益比2018年7月整整多10%。
这种令人愉快的动态仍在继续。伯克希尔自去年底以来回购了更多股票,并且将来可能会进一步减少其股票数量。苹果也公开表示有意回购其股票。随着流通股的减少,伯克希尔的股东不仅将在我们的保险集团、BNSF(北伯林顿铁路公司)和BHE(伯克希尔·哈撒韦能源公司)中拥有更大的利益,而且还会发现他们对苹果的间接所有权也在增加。
回购的数学看似缓慢,但随着时间的推移会产生强大的力量。该过程为投资者提供了一种简单的方式,让他们拥有不断扩大的企业份额。正如性感女星梅·韦斯特(Mae West)向我们保证的那样: “太多的好东西都可以是美好的”。
投资
下面我们列出了15笔年底市值最大的普通股投资。我们排除了卡夫亨氏的持股——325,442,152股——因为伯克希尔是一个控股集团的一部分,因此必须使用“权益”法来计算这笔投资。在伯克希尔的资产负债表上,卡夫亨氏持有的卡夫亨氏资产按公认会计准则计算为133亿美元,这一数字代表伯克希尔在2020年12月31日经审计的卡夫亨氏资产净值中所占的份额。但请注意,2020年12月31日我们这些股票的市值只有113亿美元。
股数* 公司名称 持股比例 成本** 市值(后二者单位为百万美元)
25,533,082 艾伯维. . . . 1.4% $2,333 $2,736
151,610,700 美国运通. . . 18.8% 1,287 18,331
907,559,761 苹果公司 . . .5.4% 31,089 120,424
1,032,852,006 美国银行. 11.9% 14,631 31,306
66,835,615 纽约梅隆银行. . 7.5% 2,918 2,837
225,000,000 比亚迪 . . . . 8.2% 232 5,897
5,213,461 特许通讯 . . . . 2.7% 904 3,449
48,498,965 雪佛龙 . . 2.5% 4,024 4,096
400,000,000 可口可乐 . . . .9.3% 1,299 21,936
52,975,000 通用汽车 . . . . 3.7% 1,616 2,206
81,304,200 伊藤忠商事 . . . 5.1% 1,862 2,336
28,697,435 默沙东 . . . . . 1.1% 2,390 2,347
24,669,778 穆迪 . . . . . . 13.2% 248 7,160
148,176,166 美国合众银行 . . . 9.8% 5,638 6,904
146,716,496 威瑞森通讯 3.5% 8,691 8,620
其他*** . . . . . . 29458 40585
股票投资总计 . . . . . . $108620 $281170
*注:
*不包括伯克希尔旗下子公司的养老基金持有的股票。
**这是我们的实际购买价格,也是我们的计税依据。
***包括对西方石油公司(Occidental Petroleum)的100亿美元投资,包括优先股和购买普通股的认股权证,目前组合估值为90亿美元。
双城记
在美国,成功的故事俯拾皆是。自我们国家诞生以来,那些有理想、有抱负,但往往只有微薄资本的人,通过创造新东西或用旧东西改善顾客体验,取得了超出他们梦想的成功。
查理和我曾游历全美,与这些人或他们的家人相遇。在西海岸,我们从1972年收购喜诗糖果(See’s Candy)开始了这一惯例。整整一个世纪前,玛丽·时思(Mary See)开始推出一种古老的产品,她用特殊的配方对其进行了改造。除了她的商业计划之外,她还开设了一些古色古香的商店,里面有友好的销售人员。她在洛杉矶开的第一家小专卖店最终发展成了几百家商店,遍布整个西部。
今天,时思女士的作品继续令客户感到愉悦,同时为成千上万的男女提供终身就业机会。伯克希尔的工作就是不干涉公司的成功。当企业生产和分销一种非必需的消费品时,客户就是老板。而且,100年后,客户向伯克希尔传递的信息依然清晰:“不要乱动我的糖果。(喜诗糖果的网址是 https://www.sees.com/,可以试试他们的花生糖。)
接下来让我们跨越大陆来到华盛顿特区。1936年,利奥·古德温和他的妻子莉莲开始相信,汽车保险——一种通常从代理商那里购买的标准化产品——可以直接以低得多的价格出售。两人怀揣10万美元,与拥有1000倍甚至更多资本的大型保险公司展开了较量。政府雇员保险公司(后来简称为GEICO)由此开始了其漫漫征程。
幸运的是,我在整整70年前就了解到了这家公司的潜力。它立刻成为了我的初恋(在投资方面)。接下来的故事大家都知道了:伯克希尔最终100%拥有了GEICO,这家84岁年历史公司一直在微调,但没有改变利奥和莉莲的愿景。
当然,该公司的规模发生了变化。1937年,也就是GEICO运营的第一个整年,其完成了238,288美元的业务。去年的数字是350亿美元。
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今天,沿海地区汇聚了大量金融、媒体、政府和科技机构,人们很容易忽视美国中部发生的很多奇迹。让我们关注两个社区,它们为我们全国各地的人才和雄心提供了令人惊叹的例证。
我从奥马哈开始,你们不会感到奇怪,
1940年,毕业于奥马哈中心高中(也是查理、我父亲、我第一任妻子、我们的三个孩子和两个孙儿的母校)的杰克·林格沃特(Jack Ringwalt)决定用12.5万美元的资本创办一家财产/意外伤害保险公司。
杰克的梦想似乎是荒谬的,因为这要求他的小公司——有点浮夸地被命名为国民保险公司(National Indemnity)——与大型保险公司竞争,而这些公司都拥有充足的资本。此外,这些竞争对手凭借遍布全国的、资金雄厚的、历史悠久的当地代理商网络而牢固地确立了自己的地位。
在杰克的计划中,与GEICO不同的是,国民保险公司本身会使用任何屈尊接受它的机构,因此在收购业务时没有成本优势。为了克服这些可怕的障碍,国民保险将重点放在了被大公司认为不重要的“古怪”风险上。不可思议的是,这一策略成功了。
杰克诚实、精明、讨人喜欢,还有点古怪。他尤其不喜欢监管机构。每当他对他们的监督感到厌烦时,他就会有卖掉公司的冲动。
幸运的是,有一次我就在附近。杰克想加入伯克希尔,于是我们在1967年达成了交易,只用了15分钟就达成了。我从没要求过审计。
今天,国民保险公司是世界上唯一一家愿意为某些巨大风险承保的公司。是的,它的总部仍然在奥马哈,距离伯克希尔的总部只有几英里。
多年来,我们又从奥马哈家族手中收购了四家企业,其中最著名的是内布拉斯加州家具市场(NFM)。该公司的创始人罗斯-布卢姆金(Rose Blumkin,B夫人)是俄罗斯移民,在1915年来到西雅图,她既不会读也不会说英语。几年后,她定居在奥马哈。在1936年,她攒下了2500美元,用这笔钱开了一家家具店。
竞争对手和供应商忽视了她,而他们的判断在当时无疑是正确的:第二次世界大战让她的生意停滞了。在1946年底,公司的净资产仅增长到72,264美元。现金,不论是在收银台里还是在存款里,总共是50美元(没有打错字)。
然而,有一笔无价的财富没有在1946年的数字中记录下来:B夫人唯一的儿子路易-布卢姆金(Louie Blumkin)在美国军队服役四年后重新加入了这家商店。在诺曼底登陆后,路易参加了诺曼底奥马哈海滩的战斗,并因在Bulge战役中受伤而获得了紫心勋章,最终在1945年11月乘船回国。
一旦B夫人和路易重聚,就没有什么能阻止这家家具店的发展了。在梦想的驱使下,母亲和儿子不分昼夜地工作。其结果是创造了零售业的一个奇迹。
到1983年,两人已经让家具店的业务规模达到了6000万美元。那一年,在我生日那天,伯克希尔收购了NFM 80%的股份。同样,我们没有对这家家具店进行审计。我指望布卢姆金的家族成员来经营企业。今天,NFM正由第三代和第四代布卢姆金的家族成员管理着。需要指出的是,B夫人每天都在工作,直到103岁——在查理和我看来,这是一个可笑的过早退休年龄。
NFM目前拥有美国最大的三家家居用品商店,尽管NFM的门店因新冠关闭了疫情六周多,但这三家商店在2020年都创下了销售记录。
这个故事的后记说明了一切:每当B夫人的一大家子人聚在一起过节吃饭时,她总是要求他们在吃饭前唱首歌。她的选择从未改变过:欧文-柏林(Irving Berlin)的《上帝保佑美国》(God Bless America)。
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让我们向东转移到田纳西州的第三大城市诺克斯维尔。在那里,伯克希尔拥有两家引人注目的公司——克莱顿住宅(Clayton Homes)(100%持股)和Pilot Travel Centers(目前持股38%,但到2023年将达到80%)。
每一家公司都是由一位毕业于田纳西大学并留在诺克斯维尔的年轻人创立的。这两个年轻人都没有足够的资金,父母也不富裕。
但是,那又怎样?如今,克莱顿和Pilot的每人的年税前利润都超过了10亿美元。这两家公司共雇用了大约4.7万名男女员工。
吉姆-克莱顿(Jim Clayton)在经历了几次商业冒险之后,于1956年以小本经营的方式创建了克莱顿住宅(Clayton Homes)。1958年,“大个子吉姆”(Big Jim Haslam)以6000美元的价格购买了一个服务站,创建了后来的Pilot Travel Centers。后来,他俩的儿子也都加入了他们的父亲的公司,他们的儿子有着和他们父亲一样的激情、价值观和头脑。有时候基因太有魔力了。
现年90岁的“大吉姆”Haslam最近写了一本鼓舞人心的书,他在书中讲述了Jim Clayton的儿子Kevin是如何鼓励Haslam家族将大部分的Pilot Travel Centers卖给伯克希尔的。每个零售商都知道满意的顾客是商店的最佳销售人员。当企业易手时也是如此。
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当您下次飞越诺克斯维尔或奥马哈时,向Clayton家族、Haslam家族和Blumkin家族,以及遍布全国各地的成功企业家们脱帽致敬吧。这些创造者需要美国的繁荣框架(它始于1789年进行的一次独特实验)才能发挥潜力。反过来,美国需要像这些杰出的公民来实现我们开国元勋所追求的奇迹。
如今,许多人在世界各地创造了类似的奇迹,创造了使全人类受益的繁荣。然而,在其短暂的232年中,还没有其他像美国这样可以释放人类潜能的孵化器。尽管出现了严重的中断,但我国的经济发展却令人叹为观止。
除此之外,我们保留着成为“更完美联盟”的宪政愿望。在这方面的进展缓慢,不平衡且经常令人沮丧。但是,我们已经向前迈进,并将继续前进。
我们坚定的结论:绝不与美国作对赌。
伯克希尔的伙伴关系
伯克希尔是特拉华州的一家公司,我们的董事必须遵守该州的法律。其中包括要求董事会成员必须为公司及其股东的最佳利益行事。我们的董事们拥护这一原则。
此外,伯克希尔公司的董事当然希望公司能取悦客户,发展和奖励其36万名员工的才能,与放贷人的往来光明正大,并在许多我们运营业务的城市和州被视为良好公民。我们重视这四个重要的群体。
但这些团体中,没有任何一个团体在确定诸如股息、战略方向,首席执行官人选、并购和资产剥离之类的事情上有投票权。这些方面的责任完全是伯克希尔公司董事们的责任,他们必须忠实地代表公司及其所有者的长期利益。
除了法律要求之外,查理和我还对伯克希尔的许多个人股东负有一种特殊的义务。一些个人经历可能会帮助您了解我们不寻常的关系,以及它何影响我们的行为。
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在我执掌伯克希尔之前,我通过一系列合伙企业为许多个人管理资金,其中最早的3家合伙企业成立于1956年。随着时间的流逝,同时运营多个实体变得难以控制,在1962年,我们将12个合伙企业合并为一个独立的实体,即巴菲特合伙有限公司(Buffett Partnership Ltd.“ BPL”)。
到那一年,几乎所有我自己的钱,以及我妻子所有的钱,都一起投入了我的许多有限合伙公司的基金。我没有薪水,也没有费用收入。相反,作为普通合伙人,我的有限合伙公司只有在他们获得的年度回报率高于6%的门槛之后,才会给我报酬。如果收益未能达到该水平,差额部分就从我未来的应得利润中扣除。(幸运的是,从未发生过这种事:合伙人回报率总是超过6%的“标准杆”。)随着岁月的流逝,我父母、兄弟姐妹、姨妈姑婶、叔叔舅舅、表兄弟和姻亲都将大部分资金投资给了上述合伙企业。
查理在1962年成立了合伙公司,运作方式和我差不多。我们都没有任何机构投资者,我们的合作伙伴中也很少有金融行家。那些加入我们公司的人相信我们会像对待自己的钱一样对待他们的钱。这些人——要么凭直觉,要么依靠朋友们的建议——正确地得出了这样的结论:查理和我对资本的永久亏损有着极端的厌恶,除非我们预期他们的钱会做得相当不错,否则我们不会接受他们的钱。
1965年BPL收购伯克希尔哈撒韦的控制权后,我无意中进入了企业管理领域。后来,在1969年,我们决定解散BPL。年底后,这家合伙企业按比例分配了所有现金和三支股票,其中价值最高的是BPL在伯克希尔哈撒韦的70.5%股权。
与此同时,查理在1977年结束了其公司的运营。在他分配给合伙人的资产中,有Blue Chip Stamps的主要股份,这是他的合伙人、伯克希尔和我共同控制的一家公司。Blue Chip也是我的合伙公司解散时分配的三支股票之一。
1983年,伯克希尔和Blue Chip合并,使伯克希尔的注册股东基础从1900人扩大到2900人。查理和我希望所有人——新老股东和潜在股东——都能步调一致达成共识。
因此,在1983年的年报中——首当其冲——列出了伯克希尔的“主要商业原则”。第一条原则这样开始:“虽然我们的形式是公司,但我们的态度是合作关系。”“这定义了我们在1983年的关系,这样是我们对今天的定义。查理和我——以及我们的董事们——相信这句格言在未来几十年里将对伯克希尔大有裨益。
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伯克希尔的所有权现在分为五个大“桶”,其中一个由我作为“创始人”占据。那一桶肯定会空,因为我拥有的股票每年都会分配给各种慈善机构。
其余四桶中有两桶由机构投资者占据,各自负责管理他人的资金。然而,这就是这两个桶之间的不同之处:它们的投资程序截然不同。
一个机构类型是指数基金,这是投资界一个规模庞大、迅速发展的领域。这些基金只是紧跟它们追踪的指数。指数投资者最喜欢的是标普500指数(S&P 500),伯克希尔哈撒韦是该指数的成份股。应该强调的是,指数基金之所以持有伯克希尔的股票,只是因为它们被要求这么做。他们处于自动驾驶状态,买卖只是为了“权重”目的。
另一个机构类型则是管理客户资金的专业人士,不管这些资金属于富人、大学、退休人员或任何人。这些职业经理人的职责是根据他们对估值和前景的判断,将资金从一项投资转移到另一项投资。这是一个光荣而艰难的职业。
我们很高兴为这个“活跃的”团体工作,同时他们也在寻找更好的地方来配置客户资金。可以肯定的是,一些基金经理着眼长远,很少进行交易。还有一些人使用计算机,利用算法可以在一纳秒内指导股票的买卖。一些专业投资者会根据他们的宏观经济判断来回操作。
第四类是个人股东,他们的运作方式与我刚才描述的积极型机构经理人类似。可以理解的是,当这些股东看到另一项令他们兴奋的投资时,他们会把自己持有的伯克希尔股票视为可能的资金来源。我们对这种态度没有异议,这与我们看待我们在伯克希尔持有的一些股票的方式类似。
综上所述,如果查理和我对我们的第五桶没有特别的亲缘感,那我们就没有人性了。第五桶就是超过百万的个人投资者,他们相信我们会代表他们的利益,不管未来会发生什么。他们加入我们并不打算离开,他们的心态与我们最初的合作伙伴相似。事实上,在我们合伙期间的许多投资者,以及/或他们的后代,仍然是伯克希尔的主要所有者。
斯坦·特鲁尔森(Stan Truhlsen)就是这些老合作伙伴中的一个典型代表,他是奥马哈市一位开朗慷慨的眼科医生,也是一位私人朋友,他在2020年11月13日迎来了自己的100岁生日。1959年,斯坦和其他10名年轻的奥马哈医生与我结成了伙伴关系。他们创造性地将自己的公司命名为Emdee, Ltd。每年,他们都会和我和妻子一起在家里举行庆祝晚餐。
当我们的合伙人在1969年分配伯克希尔股票时,所有的医生都保留了他们得到的股票。他们可能不知道投资或会计的来龙去脉,但他们知道在伯克希尔他们将被视为合伙人。
斯坦的两名来自Emdee的朋友现龄都90多岁了,他们仍然持有伯克希尔的股票。这一群体惊人的持久性——加上查理和我分别是97岁和90岁的事实——提出了一个有趣的问题:持有伯克希尔的股票会让人长寿吗?
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伯克希尔不同寻常且备受重视的个人股东家族,可能会让你更加理解我们不愿讨好华尔街分析师和机构投资者。我们已经有了我们想要的投资者,总的来说,我们不认为他们会被通过替代品来升级。
可供伯克希尔拥有的席位有限,也就是流通股。我们非常喜欢已经拥有了它们的人。
当然,“合伙人”也会发生一些变动。不过,查理和我希望这种变动很微小。毕竟,谁会寻求朋友、邻居或婚姻的快速转变呢?
1958年,菲尔·费舍尔写了一本关于投资的极好的书。在这篇文章中,他将经营一家上市公司比作经营一家餐厅。他说,如果你在寻找食客,无论是汉堡配可乐还是带有异国情调的葡萄酒配法国美食,你都可以吸引顾客并获得成功。但是,费雪警告说,你不能随意地从一个口味转换到另一个:你给潜在客户的信息必须与他们进入你的场所后发现的一致。
在伯克希尔,我们提供汉堡和可乐已经56年了。我们珍惜这一票价所吸引的顾客。
美国和其他地方的数千万其他投资者和投机者有各种各样的股票选择,以符合他们的口味。他们将会找到拥有诱人想法的首席执行官和市场专家。如果他们想要价格目标,管理收益和“故事”,他们不会缺少追求者。“技术人员”将充满信心地指导他们,告诉他们图表上的一些波动预示着股票的下一步走势。要求采取行动的呼声永远不会停止。
我要补充的是,这些投资者中的许多人会做得很好。毕竟,持有股票在很大程度上是一个“正和”博弈。事实上,一个耐心且头脑冷静的猴子,通过向标普500的上市公司投掷50支飞镖构建的投资组合,随着时间的推移,只要它不受诱惑改变原来的“选择”,它就将会享受股息和资本收益。
生产性资产,如农场、房地产,当然还有企业所有权,都能产生财富——大量的财富。大多数拥有这些资产的人都会得到回报。所需要的只是时间的流逝、内心的平和、充足的多元化以及交易和费用的最小化。不过,投资者决不能忘记,他们的支出就是华尔街的收入。而且,和我的猴子不一样,华尔街的人可不是为了花生而工作的。
当伯克希尔有空位时——我们希望这样的空位很少——我们希望它们能被那些了解并渴望我们所提供的东西的新来者所占据。经过几十年的管理,查理和我仍然不能承诺结果。然而,我们可以并确实保证将你们视为合作伙伴。
我们的后继者也会如此。
伯克希尔的一个可能令你吃惊的数字
最近,我了解到一个我从未怀疑过的关于我们公司的事实:伯克希尔拥有的位于美国的房地产、工厂和设备——这类资产构成了我们国家的“商业基础设施”——它们的公认会计准则估值超过了任何其他美国公司所拥有的数量。伯克希尔的这些国内“固定资产”的折旧成本为1540亿美元。紧随其后的是AT&T,其拥有的房地产、厂房和设备价值1270亿美元。
我应该补充一点,我们在固定资产所有权方面的领导地位,其本身并不意味着投资的胜利。最好的结果出现在那些只需要很少资产就能开展高利润业务的公司,以及那些提供只需要很少额外资本就能扩大销售额的产品或服务的公司。事实上,我们拥有一些这样的杰出企业,但他们相对较小,发展也比较缓慢。
然而,重资产的公司可以是很好的投资。事实上,我们很高兴看到我们的两大巨头——BNSF和BHE。2011年,也就是伯克希尔拥有BNSF的第一个整年,这两家公司的利润合计为42亿美元。2020年,对很多企业来说都是艰难的一年,但这两家公司却赚了83亿美元。
BNSF和BHE在未来几十年将需要大量的资本支出。好消息是,两者都可能带来适当的增量投资回报。
让我们先看看BNSF。它的铁路运输了美国境内所有非本地货物(按吨英里计算)的15%,无论是通过铁路、卡车、管道、驳船还是飞机。BNSF的负载远远超过任何其他承运人。
美国铁路的历史很有趣。在经历了150年左右的疯狂建设、欺诈、过度建设、破产、重组和合并之后,铁路行业终于在几十年前成熟并合理化了。
BNSF于1850年开始运营,在伊利诺伊州东北部修建了一条12英里长的线路。如今,BNSF有390个前身,他们的铁路被收购或合并。这家公司广泛的血统分布可以参看http://www.bnsf.com/bnsf-resources/pdf/about-bnsf/History_and_Legacy.pdf.
伯克希尔在2010年初收购了BNSF。自从被我们收购以来,这家铁路公司在固定资产上投资了410亿美元,超过了折旧费用200亿美元。铁路是一项户外运动,火车必须在极冷和极热的环境下可靠地行驶,因为它们总是会遇到从沙漠到山脉的各种地形。大规模洪水周期性发生。BNSF拥有23000英里的铁路,遍布28个州,必须不惜一切代价在其庞大的系统中最大限度地提高安全性和服务。
尽管如此,BNSF(北伯林顿铁路公司)还是向伯克希尔支付了大量股息——总计418亿美元。然而,铁路公司只会在满足其业务需求和保持20亿美元现金余额后,再付给我们剩下的钱。这种保守的政策允许BNSF以较低的利率借款,而不依赖伯克希尔对其债务的任何担保。
关于BNSF的另一个点是:去年,该公司首席执行官卡尔·艾尔(Carl Ice)和他的二号人物凯蒂•法默(Katie Farmer)在控制开支方面做了出色的工作,同时克服了业务的严重低迷。尽管载货量下降了7%,但这两位实际上使BNSF的利润率提高了2.9个百分点。卡尔如计划的那样,在年底退休了,凯蒂接任了首席执行官一职。因此,BNSF的管理依然优秀。
与BNSF不同的是,BHE(伯克希尔·哈撒韦能源公司)不支付普通股股息,这在电力行业很不常见。我们拥有该公司21年了,这种斯巴达式的政策贯穿了整个时期。与铁路不同,我们国家的电力设施需要大规模的改造,最终的成本是惊人的。这一努力将在未来几十年吸收BHE的全部收入。我们欢迎挑战,相信增加的投资将得到适当的回报。
让我来告诉你BHE的一项努力——它承诺投入180亿美元,对已经过时的电网进行改造和扩建,这些电网现在正在向整个西部输送电力。BHE在2006年开始这个项目,预计在2030年完成——是的,2030年。
可再生能源的出现使我们的项目成为社会的必需品。从历史上看,长期以来盛行的燃煤发电都位于人口密集的地区。然而,新世界风能和太阳能发电的最佳地点往往是在偏远地区。当BHE在2006年评估情况时,对西部输电线路进行巨额投资已不是什么秘密。然而,在计算项目成本后,当时很少有公司或政府机构有财力接手。
应该指出的是,BHE的决定是基于它对美国政治、经济和司法体系的信任。要获得可观的收入,需要投入数十亿美元。输电线路必须跨越各州和其他司法管辖区的边界,每个州都有自己的规则和选区。BHE还需要与数百名土地所有者打交道,并与生产可再生能源的供应商和向客户输送电力的遥远的公用事业公司签订复杂的合同。竞争激烈的利益集团和旧秩序的捍卫者,以及渴望立即出现一个新世界的不切实际的梦想家,都必须加入进来。
惊喜和延迟都是肯定的。然而,同样可以肯定的是,BHE具备管理才能、机构承诺和财力来履行其承诺。虽然我们的西部输电项目要多年才能完成,但我们今天正在寻找其他类似规模的项目来承担。
无论遇到何种障碍,BHE都将成为提供更清洁能源的领导者。
年度会议
去年2月22日,我写信告诉你,我们计划召开一个盛大的年会。不到一个月,这个计划就被废弃了。
由梅丽莎·夏皮罗(Melissa Shapiro)和伯克希尔首席财务官马克·汉伯格(Marc Hamburg)领导的总部小组迅速重组。他们的即兴表演奇迹般地奏效了。伯克希尔副董事长之一格雷格·阿贝尔(Greg Abel)和我一起上台,面对着一个黑暗的舞台、1.8万个空座位和一台摄像机。没有彩排:我和格雷格在“表演时间”开始前45分钟到达。
我令人难以置信的助手Debbie Bosanek于47年前加入伯克希尔,当时她年仅17岁,她整理了约25张幻灯片,这些幻灯片展示了我在家中整理的各种事实和人物。幻灯片由一个匿名但非常能干的计算机和摄像头操作团队以适当的顺序投影到屏幕上。
雅虎将整个过程向创纪录的国际听众直播。CNBC的Becky Quick在新泽西州的家中工作,在Greg和我上台的四个小时内,从观众通过她的电子邮箱提交的成千上万个问题中挑选出问题。See’s花生脆和软糖,以及可口可乐,为我们提供食品。
今年,5月1日,我们计划举办一次更好的活动。同样,我们将依靠Yahoo和CNBC完美无缺的表现。雅虎将于美国东部时间下午1点开始直播。直播网址请登录 https://finance.yahoo.com/brklivestream
我们的正式董事会议将于美东时间下午5:00开始,应在下午5:30结束。在此之前,在1:30-5:00之间,我们将回答Becky Quick转交的问题。和往常一样,我们不知道问题是什么。将您有趣的话发送到BerkshireQuestions@cnbc.com。雅虎直播将在5:30之后结束。
现在——此处应有掌声——惊喜来了。今年,我们的会议将在洛杉矶举行……而查理将会上台,在整个3个半小时的问答环节中回答问题并发表意见。去年(他没来)我想念他,更重要的是,你们显然也想念他。我们宝贵的副主席Ajit Jain和Greg Abel也将与我们一起回答有关其业务领域的问题。
欢迎通过Yahoo观看我们的会议。将您真正棘手的问题转给查理!我们会很开心的,希望您也一样。
当然,更好的是我们面对面相见的那一天,我希望并期待能在2022年相见。奥马哈市民、我们的参展子公司以及我们所有在总部工作的人,都迫不及待地希望您参加真正的伯克希尔式大会。
2021年2月27日
沃伦·巴菲特
董事会主席
2020年股东信
2月22日,伯克希尔.哈撒韦公布了其2019年四季度及全年业绩报告,公司在四季度取得净利润291.59亿美元,较上年同期的亏损253.92美元实现扭亏。其中四季度取得投资收益245.27亿美元,相比去年同期为亏损276.13亿美元。
全年来看,伯克希尔.哈撒韦2019年全年取得净利润814.17亿美元,远高于2018年的40.21亿美元。其中A类普通股美股收益为49828美元,高于去年同期的2446美元;B类普通股每股收益33.22美元,上年同期为每股收益1.63美元。
与年报一同公布的则是股神巴菲特每年的惯例《致股东的公开信》,其中第一页仍然如往年一样对比伯克希尔.哈撒韦业绩与标准普尔500指数历年的表现。从1965年-2019年的55年间,伯克希尔.哈撒韦的年度复合增长为20.3%,而同期的标准普尔500指数的增速为10%;公司在历史总利得为2,744,062%,而标准普尔500指数则仅为19,784%。
以下为巴菲特2020年致股东公开信全文翻译:
伯克希尔哈撒韦的各位股东:
伯克希尔2019财年基于通用会计准则(GAAP)的盈利为814亿美元。具体而言,这一总数当中包含240亿美元运营盈利,以及我们所持有股票产生的37亿美元已兑现资本利得和537亿美元的未兑现资本利得。前列所有均为税后数据。
关于这537亿美元利得,必须做一个补充说明。根据2018年生效的新版通用会计准则,一家企业所持有的证券,即便是尚未兑现的利得和亏损净变化也必须计入盈利数据。正如我们在去年股东信当中所澄清的,无论是我,还是和我一起管理伯克希尔的伙伴查理·芒格(Charlie Munger),我们对这种新规其实都持保留态度。
这种新规会被推出和采用,本质上说来,其实是标志着会计专业理念的一次重大改变。
2018年之前,通用会计准则坚持认为,除非一家企业的生意就是证券交易本身,不然的话,投资组合当中未兑现的资本利得任何时候都不该被计入盈利,而未兑现的亏损也只有在被认为是“非暂时性”的情况下才可以计入。现在,根据新规,伯克希尔必须将这些数据计入每个季度的盈利之中,不管这些证券的涨涨跌跌不管有多么起伏不定,可能会造成怎样的影响——对于众多投资者、分析师和评论家来说,这也成了他们必须掌握的新知识。
伯克希尔2018年和2019年的具体数据其实正清楚地证明了我们对新规的判断的正当性。正如我们发布的数据所显示的,2018年是股市遭遇不顺的一年,我们未兑现的利得缩减了206亿美元之多,于是我们当年度的通用会计准则盈利就只剩下了40亿美元。至于2019年,如前所述,由于股票价格的上涨,我们未兑现的利得猛增了537亿美元,使得通用会计准则盈利达到了前面所报告的814亿美元。换言之,股市行情的变化使得我们的通用会计准则盈利猛增了令人瞠目结舌的1900%!
然而,与会计世界不同的是,在我们认为的现实世界当中,伯克希尔所持有的股票总规模这两年一直保持在大约2000亿美元的水平,这些股票的内在价值也基本上都是在稳步而坚实地增长。
查理和我呼吁大家专注于运营盈利——我们的这一数据2019年较之前一年基本没有大的变化——同时不要去在意投资的季度或年度的利得或亏损,不管是已经兑现的还是尚未兑现的。
我们的这种建议绝不是忽视或贬低伯克希尔这些投资的价值。查理和我都预计,我们的股票投资,虽然其一时间表现出的具体形态可能难以预测,高度不规律,但是长期角度而言,注定会为我们创造巨大的利得。我们为何会如此乐观?下面的章节将会展开讨论。
保留盈利的力量
1924年,一位名声并不是那么显赫的经济学家、理财顾问埃德加·劳伦斯 ·史密斯(Edgar Lawrence Smith)完成了一本《普通股的长期投资》(CommonStocks as Long Term Investments),这虽然只是一本薄薄的册子,但是却改变了整个投资世界的面貌。事实上,撰写这本书的经历也改变了史密斯本人,迫使他开始重新评估自己的投资信条。
刚开始写作的时候,他最初想要说明的观点是,在通货膨胀周期当中,股票的表现要好于债券,而在通货紧缩周期当中,债券的回报则好过股票。看上去,这样的观点是合情合理的。可是接下来,史密斯自己都吃了一惊。
事实上,在这本书的最开头,史密斯就承认:“这些研究本身就是对失败的记录——事实并不能支持预设的观点。”然而,这却是投资者的幸事,因为失败迫使史密斯更加深入地思考,去探索到底该如何评估股票的价值。
要把握住史密斯到底洞见了些什么,我想最好还是引述一段关于他著作的最早期评论,来自约翰·梅纳德·凯恩斯(John Maynard Keynes):“我一直读完全书,才大致搞清楚了史密斯先生最新奇的,当然也是最重要的观点到底是什么。
那些真正优秀的工业企业管理层是不会将他们每年所获的利润都全部派发给股东的,这是一个基本原则。
哪怕不是所有年景,至少在好的年景下,这些企业都会留下一部分利润,将其重新投入到其业务本身。这样就创造出一种有利于可靠的工业投资的复利运营模式。经年累月,这笔可靠的工业财富的真实价值就会以复利速度增长,更不必说股东们还得到了源源不断的股息。”
得到了这位经济学大家的加持,史密斯一夜成名。
在史密斯的这本著作出版之前,保留盈利的做法居然会让股东们都感到不满,这样的逻辑,今人已经很难理解了。毕竟,我们现在都知道,当年的卡耐基、洛克菲勒和福特等大家族之所以能够积累起令人瞠目结舌的巨大财富,靠的就是保留住很大一部分企业盈利,将其投入未来的成长,创造出更大的利润。事实上,不光是这些巨头们,在全美的范围内,真不知有多少具体而微的资本家们是靠着重复同样的剧本而发家致富的。
然而,事实就是,在史密斯之前的年代当中,当企业所有权被分割成无数小片——“股票”,后者的购买者们通常都将自己的投资视作是针对市场行情变动的短期赌博,往最好听里说也不过就是投机而已——真正的绅士们青睐的是债券。
不管投资者们变聪明的速度有多么迟缓,到今天,保留盈利用于再投资的数学公式都已经被大家充分理解了。曾经被凯恩斯评为“新奇”的观念,对于现在的高中生都已经是常识了——将储蓄和复利结合,就可以创造奇迹。
在伯克希尔,查理和我一直以来都高度重视有效地运用保留盈利。有些时候,这份工作其实是很轻松的,可是在另外一些时候,这份工作用“困难”来形容都嫌不足——尤其是我们面对着体量巨大,而且还在持续膨胀的现金的时候。
我们想要将自己所保留的这些资金投入使用,首选的目标就是投资于我们业已拥有的数量众多、种类繁杂的生意当中。单单在过去十年时间里,伯克希尔的折旧支出就累计达到650亿美元,而内部的地皮、厂房和设备投资累计更达到1210亿美元。再投资于运营资产永远都是我们的优先考虑对象。
此外,我们还在持续寻求买进新的企业的机会,只要后者能够符合三个标准。首先,他们运营的净有形资本必须能够创造得体的回报。其次,经理人必须是德才兼备,既有能力又诚实。最后,买进价格必须合理。
一旦我们找到了这样的企业,只要条件允许,我们都会希望将其100%全部收购下来。遗憾的是,符合我们前面全部要求的大规模收购机会其实颇为稀有。在更多的时候,我们还是只能去把握住股市波动当中涌现出的机会,去收购那些符合标准的上市公司的大量股份,但是往往并不能达到控股的程度。
无论我们到底是如何进行的投资——是控股了这些企业,还是只通过市场购入了一大笔股权——伯克希尔的财务表现很大程度上都将取决于我们所投资的这些企业的未来盈利能力。只不过,投资者必须明白,这两种投资方式在会计层面是存在着巨大差异的。
那些我们控股的企业(具体定义为伯克希尔持有50%以上股权),他们各自的盈利都会直接计入我们报告的运营盈利数据。各位看到的就是实实在在的盈利。
至于那些非控股企业,即我们拥有相当数量股票的企业,只有他们的股息才会被计入伯克希尔报告的运营盈利数据。当然,他们也会有自己的保留盈利,用来投入运转、创造更多附加值,但是这一切都不会从伯克希尔发布的盈利数据当中直接体现出来。
在几乎所有其他的大企业财报当中,投资者都不会看到伯克希尔这种高度重视和列出“未实现盈利”的做法。可是,对于我们而言,这却是一项非常重大,不容忽略的内容,必须详细列出如下。
以下,我们将列出我们通过股市投资的10支最重要成份股。
显然,这些我们只是部分拥有的企业,我们最终能够记录下来的已兑现利得是不会与他们保留盈利当中根据“我们”持股比例计算出的结果准确对应的。虽然遗憾,但是也不能不承认,有些时候,保留盈利也可能会无功而返。只不过,不管是根据逻辑常识,还是根据我们过往的经验,我们都更加倾向于相信,这些企业和股票最终将实现的资本利得至少会与他们保留盈利当中属于我们的份额相当,很可能还会犹有过之。(需要补充的是,当我们最终卖掉这些股票,实现利得,我们必须按照当时的税率缴纳联邦所得税,目前的适用税率为21%。)
可以肯定地说,伯克希尔从这10家公司,以及我们做了股票投资的其他许多家公司所获取的回报未来还将以极不规则的形态持续呈现。有时可能是基于某家企业自身的问题,有时可能是因为股市大盘的缘故,亏损总会周期性发生。与此同时,在另外一些时间段当中,我们的利得则可能会爆炸式增长,比如去年就是个例子。整体而言,我们投资兑现的保留盈利对于伯克希尔自身价值的增长无疑是具有重大意义的。
史密斯完全正确。
非保险业务
汤姆·墨菲(Tom Murphy)是伯克希尔的重要董事,他是史上伟大的企业经理人之一。很早之前,他就给过我一些有关收购的重要建议:“要获得优秀经理人的美誉,只需确保你收购的是好企业即可。”
多年来,伯克希尔收购了许多公司,最初我全部将它们视为“好生意”。” 但是,最后有些公司却令人失望,有不少简直是彻底的灾难。另一方面,有不少公司却超出了我的期望。
回顾我时好时坏的投资记录时,我得出的结论是,收购就好比婚姻:当然,一开始婚姻是令人开心的,但随后,现实开始偏离婚前的期望。美妙的是,有些时候,新婚夫妇为双方带来了超出预期的幸福。而在另外一些情况下,幻灭也来得很快。将这些画面放到公司收购上面,我不得不说,一般是收购者遇到不愉快的意外情况。在追求收购的阶段,我们总是容易满眼乐观。
按照这种类比,我想说我们的“婚姻”记录大部分还算差强人意,各方皆大欢喜,都很满意很久之前所做的决定。我们的一些合作关系如同田园般惬意。但是,有不少情况,事后很快会使我很纳闷我在“求婚”(编者注:意指提出收购)时到底在想什么,才会做出当时的决定。
幸运的是,我的许多错误导致的后果因大多数令人失望的业务所具有的特点而有所减小:随着时间的流逝,“表现不佳”的公司趋于停滞,随即进入一种状态:即它们的业务对伯克希尔资本的需要占比越来越小。与此同时,“表现良好”的公司往往会继续增长,并以有吸引力的速度找到投资更多资本的机会。由于这两种截然相反的轨迹,伯克希尔的投资胜出者使用的资产逐渐成为我们总资本的一部分。
我们拿伯克希尔最初的纺织业务为例,这是金融运作的一个极端例子。我们于1965年初获得了该公司的控制权,而这个陷入困境的业务几乎需要伯克希尔的全部资本。因此,在一段时间内,伯克希尔的未盈利纺织资产给我们的总体回报拖了严重的后腿。好在最终我们收购了一批“表现良好”的企业,1980年代初的这一转变使得萎缩的纺织业务仅占去了我们一小部分资本。
如今,我们将你们的大部分资金投在能为运营所需的净有形资产带来良好乃至优异回报的可控制企业。我们的保险业务一直是佼佼者。这一业务具有特殊的特征,赋予其校准成功的独特指标,这是许多投资者不熟悉的。我们将在下一章节再作具体讨论。
在接下来的几段中,我们将各种非保险业务按收入规模分组(扣除利息、折旧、税项、非现金补偿、重组费用之后 –所有这些令人讨厌但非常实际的成本,公司的首席执行官们和华尔街有时会告诉投资者们不要理会)。你们可在K-6 – K-21和K-40 – K-52页上阅读有关这些业务的更多信息。
我们的BNSF铁路和伯克希尔哈撒韦能源公司(“ BHE”) – 伯克希尔非保险业务的两大领头羊– 2019年的共计收入83亿美元(仅纳入我们占BHE的91%份额),较2018年增长6%。
按照盈利排名(但下文中是按字母顺序排列的),接下来的五家非保险子公司ClaytonHome、International MetalWorking、Lubrizol、Marmon和PrecisionCastpart在2019年的总盈利为48亿美元,与它们在2018年的收入相比变化不大。
再下来的五家子公司(Berkshire Hathaway Automotive、Johns Manville、NetJets、Shaw和TTI,同样是按字母顺序排列的)2019年的总盈利为19亿美元,高于2018年的17亿美元。
伯克希尔拥有的其余非保险业务——此类业务有很多——2019年的总盈利为27亿美元,相比之下2018年为28亿美元。
2019年,我们控制的非保险业务净收入总额为177亿美元,较2018年的172亿美元增长了3%。收购和出售对这些结果几乎没有净影响。
我必须补充一点,强调伯克希尔公司的广泛业务范围。2011年,我们收购了总部位于俄亥俄州的Lubrizol公司,这是一家在全球范围内生产和销售石油添加剂的公司。2019 年9月26日,Lubrizol所属的一家法国大型工厂遭遇了一场大火。
这场大火造成了严重的财产损失,路博润的业务也因此遭到了严重破坏。即使如此,公司的财产损失和业务中断损失将通过路博润大量的保险追偿得到缓解。
但是,正如已故的保罗·哈维(Paul Harvey)在他著名的广播节目中所说的,“接下来是故事的结局。”
Lubrizol最大的保险公司之一是伯克希尔旗下的公司。
在马太福音6:3中,圣经指示我们:“你施舍的时候,不要让你的左手知道右手所做的。” 你们的董事长显然是遵照了圣经的嘱咐。
财产/意外险
1967年以来,财产/意外险(P/ C)业务一直是伯克希尔业绩增长的引擎。1967年,伯克希尔以860万美元收购了国民保险公司(National Indemnity)及其姊妹公司国民火灾及海事保险公司(National Fire&Marine)。
如今,以净资产衡量,国民保险公司是世界上最大的财产/意外险公司。保险业务重在履行承诺,而伯克希尔履行承诺的能力是无人能比的。
我们被P / C业务吸引的原因之一是该行业的商业模式:P / C保险公司先收取保费后赔付。在极端情况下,一些理赔(如接触石棉,或严重的工作场所事故)的赔付可能持续数十年。
这种“先收取保费,后赔付”的模式让P / C公司持有大笔资金 - 我们称之为“浮存金” - 最终会赔付给其他人。与此同时,保险公司会将这笔浮存金拿去投资获利。虽然个人的保单和理赔来来去去,但保险公司持有的保费收入相关的浮存金一般较为稳定。因此,随着保险业务的增长,浮存金也随之增长。下表所示为浮存金的具体增长情况:
我们偶尔也会遇到浮存金回落。如果浮存出现下滑,下滑幅度将是非常缓慢的- 单一年度最多不超过3%。我们的保险合同的性质决定了我们拥有的现金资源肯定可以满足短期或即时的偿付需求。这种结构是精心设计的,是我们保险公司无与伦比的财力的关键组成部分。这方面的能力绝不会受到冲击。
如果保费收入超过我们的费用和最终损失的总额,保险业务就实现承保利润,从而增加浮存金产生的投资收入。当赚得这样的利润时,我们就可以使用免费资金,而且更好的是,我们还会因为持有这些资金而获得回报。
对于整个财产与意外险行业而言,目前浮存金的财务价值远低于多年前。这是因为几乎所有财产与意外险企业的标准投资战略都严重且恰当地倾向于高级别债券。因此,利率变化对这些企业至关重要,而在过去十年里,债券市场提供的利率低得可怜。
由于保险公司年复一年地被迫(通过到期日或发行人赎回条款)将其“旧”投资组合转换成收益率更低的新持仓,所以保险公司也受到了影响。这些保险公司曾经可以安全地从每一美元的浮存金中赚取5美分或6美分,但现在他们只赚到2美分或3美分(如果他们的业务集中在深陷负利率泥潭的国家,甚至更少)。
一些保险公司可能会试图通过购买低质量债券或承诺高收益的非流动性“另类”投资来减少收入损失。但是,这些都是危险的游戏和活动,大多数机构都没有足够的装备参与这样的危险游戏和活动。
伯克希尔的情况总体上比保险公司要好。最重要的是,我们无与伦比的巨额资本、充裕的现金和多样化的非保险收入,使我们拥有比业内其他公司更大的投资灵活性。我们拥有很多选择,这些选择总是对我们很有利,有时会给我们提供重大的机会。
与此同时,我们的财产与意外险公司有着良好的承保记录。在过去的17年里,伯克希尔有16年实现了承保利润运营,只有2017年例外,当时我们的税前亏损高达32亿美元。在整整17年的时间里,我们的税前利润总计275亿美元,其中2019年实现了4亿美元。
这种记录并非偶然:严格的风险评估是我们保险经理日常关注的焦点,他们知道,糟糕的承保业绩可能会淹没浮存金的回报。所有保险公司都只是嘴上说说而已。
但在伯克希尔,这是一种宗教,旧约风格的宗教。
正如我过去一再做过的那样,我现在要强调的是,保险业的美好结局远非一件确定无疑的事情:在未来17年的16年里,我们几乎肯定不会获得承保利润。危险总是隐藏其中。
评估保险风险的错误可能是巨大的,可能需要很多年甚至几十年的时间才能显现和成熟。一场使卡特里娜飓风和迈克尔飓风相形见绌的大灾难将会发生,也许是明天,也许是几十年后。“最大的灾难”可能来自传统来源,如风或者地震,也可能是完全出乎意料的,比如网络攻击的灾难性后果超出了保险公司目前的预期。当这样的大灾难来袭时,伯克希尔就会得到它的损失份额,而且损失将会很大,非常大。然而,与许多其他保险公司不同,处理损失不会接近于耗尽我们的资源,我们将急于在第二天就增加我们的业务。
闭上眼睛,试着想象一个可能会产生动态财产与意外险保险公司的地方。纽约?伦敦?硅谷?
威尔克斯-巴里(Wilkes-Barre)怎么样?
2012年末,我们保险业务非常宝贵的经理阿吉特-杰恩(Ajit Jain)打电话告诉我,他将以2.21亿美元(约合当时公司的资产净值)的价格收购宾夕法尼亚州那个小城的一家小公司 - GUARD Insurance Group。他还说,GUARD首席执行官赛-福格尔(Sy Foguel)将成为伯克希尔的明星。GUARD和赛都是我的新名字。
转眼之间:2019年,GUARD的保费收入达到19亿美元,较2012年增长了379%,承保利润也令人满意。自从加入伯克希尔以来,赛带领公司进入了新产品和新地区,并将GUARD的浮存金增加了265%。
1967年,奥马哈似乎不太可能成为一个财产与意外险的巨头跳板。威尔克斯-巴里很可能会带来类似的惊喜。
伯克希尔哈撒韦能源公司(Berkshire HathawayEnergy)
伯克希尔哈撒韦能源公司正在庆祝其在我们旗下的第20个年头。周年纪念日表明我们应该在赶超公司的成就。
我们就从电价这个话题开始。当伯克希尔在2000年进入公用事业领域时,它收购了BHE 76%的股份,该公司在爱荷华州的居民客户的平均千瓦时电价为8.8美分。
自那之后,居民客户的电价每年上涨不到1%,我们承诺,到2028年,基本电价不会上涨。相比之下,爱荷华州另一家大型投资公司的情况是:去年,该公司对居民客户收取的电价比BHE高出61%。最近,公用事业公司的费率上涨,将使这一差距扩大到70%。
我们和他们之间的巨大差异很大程度上是由于我们在将风能转化为电能方面取得的巨大成就。2021年,我们预计BHE在爱荷华州的运营将通过其拥有和运营的风力涡轮机产生约2520万兆瓦时的电力。这样的电力产量将完全满足其爱荷华州客户的年度需求,其约为2460万兆瓦时。换句话说,我们的公用事业公司将在爱荷华州实现风能自给自足。
与此形成鲜明对比的是,爱荷华州的另一家公用事业公司,风力发电不足总发电量的10%。此外,据我们所知,到2021年,无论在哪里,其他投资者拥有的公用事业公司都不可能实现风能自给自足。2000年,BHE服务于农业经济;如今,它的五大客户中有三个客户是高科技巨头。我认为,他们在爱荷华州建厂的决定部分是基于BHE提供可再生、低成本能源的能力。
当然,风是断断续续的,我们在爱荷华州的叶片只转动了部分时间。在某些时段,当空气静止时,我们依靠非风力发电的能力来保证我们所需的电力。在情况相反的时候,我们将风能提供给我们的多余电力卖给其他公用事业公司,通过所谓的“电网”为他们服务。我们卖给他们的电力替代了他们对碳资源的需求,比如煤或者天然气。
伯克希尔哈撒韦目前与小沃尔特-斯科特(Walter Scott, Jr.)和格雷格-阿贝尔(Greg Abel)共同持有BHE 91%的股份。自从我们收购以来,BHE从未向伯克希尔哈撒韦支付过股息,而且随着时间的流逝,BHE保留了280亿美元的盈利。这种模式在公用事业领域是个例外,公用事业公司通常会支付高额股息,有时甚至超过80%的盈利。我们的观点是:我们可以投资的越多,我们就越青睐它。
今天,BHE拥有运营人才和经验来管理真正的大型公用事业项目,这些项目需要1000亿美元或更多的投资,能够支持造福我们的国家、我们的社区和我们的股东的基础设施。
投资
以下所列出的是截至去年年底我们所持市值最大的15只普通股。在此,我们排除了卡夫亨氏的持股(325442152股),因为伯克希尔本身只是控股集团的一部分,所以必须用“股权”的方法来解释这笔投资。在伯克希尔的资产负债表上,若按通用会计准则计算,伯克希尔所持卡夫亨氏的股份价值138亿美元,相当于2019年12月31日伯克希尔在卡夫亨氏经审计的净值中所占份额。到去年年底,我们在卡夫亨氏的持股市值仅为105亿美元。
伯克希尔持股市值最大的15只股票(截止2019年12月31日):
* 不包括伯克希尔子公司的养老基金所持有的股份。
** 这是我们的实际购买价格,也是我们的计税基础。
***包括对西方石油公司数额为100亿美元的投资。这笔投资由优先股以及可购买普通股的认股权证组成。
查理和我都没有把以上这些股票(总计持股市值2480亿美元)当作是精心收集的潜力股。当前这场金融闹剧将要结束,因为“华尔街”的降级、美联储可能采取的行动、可能出现的政治动向、经济学家的预测,或者其他任何可能成为当前热门话题的东西,都将终止这场闹剧。
相反,我们把这些公司看作是一个我们进行部分持股的集合。若按加权计算,这些公司运营业务所需的有形净资产净利超过20%。这些公司不需要过度举债就可以盈利。
在任何情况下,那些规模巨大、成熟且易于理解的企业的订单回报率都是引人瞩目的。与很多投资者在过去十年里所接受的债券回报率(比如说30年期美国国债的收益率是2.5%或更低)相比,这些公司的回报率的确令人感到兴奋。
查理和我从来不喜欢玩预测利率的游戏,因为我们不知道未来一年、十年或三十年里利率的平均值是多少。我们或许有些偏见地认为,在这个话题上发表意见的权威人士,恰恰是通过这种行为,透露出的更多的是和他们自己有关的信息,而不是关于未来的信息。
我们可以说的是,如果在未来几十年里和当前利率接近的利率占上风,公司税也维持在企业当下正在享受着的低水平,那么几乎可以肯定的是,随着时间的推移,股票的表现将远远好于长期固定利率债务工具。
在给出这一乐观预测的同时,我们也要发出一项警告:未来股价可能会发生任何变化。有时,股市会暴跌,幅度可能是50%,也可能会更大。但是,对于那些不用借钱来炒股、且能够控制自己情绪的人来说,去年我曾在文章中写过的“美国经济顺风车”,再加上史密斯所谓的“复合奇迹”,会助推股票成为更好的长期选择。其他人呢?当心!
未来的路
30年前,我的朋友约瑟夫·罗森菲尔德(家住美国中西部),收到了当地一家报纸发来的一封信。这封信让罗森菲尔德很恼火,当时他已经80多岁了。报纸直截了当地要求乔提供一些生平数据,准备在他去世后用在他的讣告中。罗森菲尔德没有回信。接下来怎么样呢?1个月后,他收到了那家报纸发来的第二封信,而且还是封加急信。
查理和我很糟就已经进入了类似的“加急”阶段。对于我们来说,这显然不是什么喜讯。但是,伯克希尔的股东们不必焦虑:你的公司已经为我们的离开做好了百分百的准备。
我们之所以如此乐观,主要基于五大原因:
第一,伯克希尔的资产部署在各种各样的全资或部分拥有的企业身上,这些企业的资本回报率很吸引人。
第二,伯克希尔将旗下所控制业务定位在一个单一实体,这种现状赋予了该公司一些重要且持久的经济优势。
第三,伯克希尔将一如既往地以一种可让本公司抵御极端外部冲击的方式来管理财务事务。
第四,我们拥有经验丰富且忠心耿耿的顶尖经理人。对于他们来说,管理伯克希尔远远不止是一份高薪和/或有声望的工作。
第五,伯克希尔的董事们——你们的监护人——一直专注于股东的福利,以及培育一种在超大型企业中很罕见的文化。(拉里-坎宁安和斯蒂芬妮-古巴在合著的新书《信任的边缘》中探讨了这种文化的价值。在我们的年会上,可以看到这本书。)
还有一些特别实际的原因促使查理和我想要确保伯克希尔在我们离开后的日子里继续繁荣昌盛:芒格家族持有的伯克希尔股票规模,远超过该家族的其他投资;我高达99%的净身价靠的是伯克希尔股票。我从来没有卖过伯克希尔股票,以后也不打算这么做。
除了慈善捐赠和送人小礼物之外,我唯一一次动过伯克希尔股票,是在1980年。当年,我和其他被选出的伯克希尔股东们,用伯克希尔的一些股票换了伊利诺斯州一家银行的股票。早在1969年,伯克希尔收购了这家银行。1980年,因为银行控股公司法的变化,我们必须卸载该行。
今天,我在遗嘱中已经明确指明了执行人——以及在遗嘱关闭后接替他们管理我的遗产的受托人——不要出售伯克希尔股票。我的遗嘱还免除了遗嘱执行人和受托人的责任,因为他们要维持的显然是极度集中的资产。
根据我的遗嘱,执行人以及受托人每年会将我的一部分A股转换成B股,然后将B股分发给不同的基金会。这些基金会将被要求迅速分配所获得的捐款。总的来说,据我估算,在我去世12年-15年后我所持有的伯克希尔股票会进入市场。
没有我遗嘱的指令,直到安排好的分配日期之前,我所持有的所有伯克希尔股票应该不会易主。在安排好的日期,我的遗嘱执行人和受托人将会在他们的临时控制下出售伯克希尔股票,并且对到期的美国国债进行再投资。这样的策略将使受托人免受公众的批评,也免于因未能按照“谨慎的人”标准行事而承担个人责任的可能性。
我本人感到安心的是,在处置期内,伯克希尔的股票将可提供一种安全的、有回报的投资。也许会发生一些事件证明我是错的,这种可能性总是存在的——可能性不大,但也不能忽略不计。但我相信,与传统的行动方案相比,我的指示很可能会为社会提供更多的资源。
就我“只限伯克希尔”的指示而言,其关键在于我对伯克希尔的董事们未来的判断力和忠诚度抱有信心。他们经常都会面临华尔街人士的考验,与其争夺服务费。对许多公司来说,这些华尔街“超级销售员”可能会胜出。但我预计,在伯克希尔不会出现这种情况。
董事会
近年以来,企业董事会的构成及其宗旨都已成为人们关注的热点问题。在以前,有关董事会责任的争论在很大程度上仅限于在律师们之间展开;而在今天,机构投资者和政治家们也加入了进来。
就讨论企业治理的问题而言,我的资历包括,在过去62年时间里,我曾担任21家上市公司(详见下文横线以下部分)的董事。除了两家公司之外,我在其他公司中都持有并代表着大量股权。在少数公司中,我曾试图实施重要的改变。
在我服务于这些公司的最初30年左右的时间里,董事会中很少会有女性,除非她代表着企业的控股家族。应该指出的是,今年是第19修正案出台100周年,该修正案保障了美国妇女投票发声的权利。她们在董事会中获得类似地位的工作则仍在进行中。
多年以来,许多有关董事会组成和职责的新规则和指导方针已经出台。然而,董事们面临的根本挑战一如既往:找到并留住一位才华横溢的首席执行官——当然,还需要诚实正直的品质——并将自己的整个商业生涯都奉献给公司。通常情况下,这项任务是艰巨的。但是,一旦董事们做对这件事情,其他就什么都不用做了。但是,如果他们搞砸了这件事……
审计委员会会比以往更加努力地工作,并且几乎总是以严苛的态度看待这项工作。尽管如此,但是这些委员会的目标与管理者的期望不符,这实际上是一种“犯罪行为”,因为收益“指导”的祸害和首席执行官“达到预期数字”的愿望鼓励了这一行为。根据我与曾与公司数字CEO打交道的直接经验(谢天谢地,只是有限的经验)表明,更多情况下,他们通常是自我推动,而不是出于对经济利益的渴望。
薪酬委员会现在比以往更多地依赖顾问。因此,补偿安排变得更加复杂-哪个委员会成员能够解释为一个简单的计划年复一年地支付大笔费用?而且阅读代理材料已成为一种令人麻木的经历。
公司治理方面的一项非常重要的改进已得到授权:定期组织董事“执行会议”,禁止首席执行官参加。在此之前,很少有关于首席执行官的职能,收购决策和薪酬的坦率讨论。
收购提案对于董事会成员而言仍然是一个特别棘手的问题。进行交易的法律流程已得到完善和扩展(也恰当地描述了相关的费用)。但是我还没有看到渴望进行收购的首席执行官会招来一位熟悉内情且理智的批评家来反对他。是的,这一点也包括我在内。
伯克希尔、Blue Chip Stamp、Cap Cities-ABC、可口可乐、Data Documents、Dempster、General Growth、吉列、卡夫亨氏、Maracaibo Oil、Munsingears、奥马哈国民银行、Pinkerton’s、PortlandGas Light、所罗门公司、Sanborn Map、TribuneOil、美国航空、Vornado、华盛顿邮报公司、Wesco Financial。
总体而言,如今台面上摆满了首席执行官和他/她员工们喜闻乐见的交易方案。对于一家公司来说,聘请两名“专家”收购顾问(一名赞成,一名反对)向董事会传达他或她对拟议中交易的看法将是一项有趣的做法。比方说,最终意见获得采纳的顾问将获得另一位顾问酬劳的10倍作为奖励。但不要屏息等待这项改革(的到来):当前的制度,无论对股东来说有什么缺点,对首席执行官和许多享受交易的顾问和其他专业人士来说都非常有效。当我们考虑到华尔街的建议时,一个古老的警告永远是正确的:不要问理发师你是否需要理发。
多年来,董事会“独立性”已成为一个新的值得关注的话题。然而,与这个话题相关的一个关键点几乎总是被忽视,那就是董事薪酬现在飙升到了一个水平,一个不可避免地使薪酬成为影响许多并不富裕董事成员潜意识行为的水平。试想一下,一位董事一年六次左右,花上几天“舒适”时间开董事会会议,收入就可以在25万至30万美元之间。通常,拥有一个这样董事职位人的收入是美国家庭年收入中位数的三到四倍(我曾错过了这样一个富足的机会:在20世纪60年代初,作为PortlandGas Light的董事,我每年的服务报酬为100美元。为了赚到这笔可观的收入,我每年需要往返缅因州四次)。
现在(董事)工作有保障吗?是的。董事会成员可能会被“礼貌地”忽视,但他们却很少被解雇。取代之的是,相当宽松的年龄限制(通常是70岁或更高)被视为是礼貌驱逐公司董事的标准行事方法。
难怪一位不富有的董事(non-wealthy director,简称“NWD”)现在希望、甚至渴望被邀请加入第二家公司的董事会,从而帮助自己跃升至50-60万美元的收入阶层。为了实现这一目标,NWD将需要一些帮助。一家寻找董事会成员的公司CEO几乎肯定会向NWD的现任CEO核实NWD是否是一个“好”董事。当然,所谓的“好”只是个暗号。如果NWD严重挑战他/她现任CEO的薪酬或收购梦想,他/她的(董事)候选人资格将悄无声息地抹去。在寻找董事时,首席执行官们并不是在寻找斗牛犬,只有可卡犬会被带回家。
尽管不合逻辑,但如今几乎所有董事都被归类为“独立(董事)”,然而许多拥有与公司兴衰密切相关的董事又被认为缺乏这一独立性。不久前,我查看了一家美国大公司的委托书材料,发现有8名董事从未用自己的钱购买过该公司股票(当然,他们得到了股票奖励,作为自己丰厚现金薪酬的补充)。这家公司长期以来一直(表现)落后,但董事们待遇却非常好。
当然,用自己的钱购买所有权并不能创造智慧,也不能确保商业成功。然而,当我们投资组合内公司的董事有用他们自己钱购买股票的经验,而不是简单地获赠时,我会感觉更好。
在这里,我应该停顿一下:我想让你知道,这些年来我见过的几乎所有董事都很像样、讨人喜欢且聪明。他们衣着光鲜,是好邻居、也是好公民,我很享受他们的陪伴。在这群人中,有一些人如果不是因为我们共同的董事会服务,我是不会认识他们的,他们如今已经成为了我亲密的朋友。
然而,这些善良的人中有许多是我永远不会选择来处理金钱或商业事务的人。因为这根本不是他们的游戏场。
反过来,他们也永远不会在拔牙、装修房子或改善高尔夫球技方面向我求助。此外,如果我被安排在“与星共舞”(Dancing With The Stars)节目中露面,我会立即寻求证人保护计划的庇护。我们总会在这件事或那件事上无所建树。对于我们大多数人来说,这个(无所建树的)清单很长。但需要认识到的重要一点是,如果你是鲍比·费舍尔(Bobby Fischer,美国国际象棋棋手),你必须为了钱而下棋。
在伯克希尔,我们将继续寻找精通商业的董事,他们以主人翁精神为导向,并对我们的公司有强烈的特定兴趣。思想和原则,而不是机器人(10.220, -0.20, -1.92%)般的“流程”将指导他们的行动。当然,在代表你的利益(进行投资)时,他们会寻找用心取悦客户、珍惜自己同事、努力成为自己所在社区和国家好公民的经理人。
这些目标并不新鲜。这是60年前有能力CEO们的目标,现在仍是如此。否则又有谁该具备这些能力呢?
其他内容
在过去的报告中,我们已经讨论了股票回购的意义和无用性。我们的想法归结为:伯克希尔只有在以下情况下才会回购股票:a)查理和我认为它的售价低于其价值,以及b)公司在完成回购后,仍会拥有充足的现金。
(股票)内在价值的计算很不精确。因此,我们两人都没有对以非常真实的95美分购买估值为1美元的商品感到任何紧迫性,。2019年,伯克希尔的价格/价值等式有时是适度有利(股票回购)的,我们花了50亿美元回购了公司约1%的股份。
随着时间的推移,我们希望伯克希尔的股票数量下降。如果股价低于实际价值的情况(正如我们估计的那样)继续发生,我们很可能会在回购股票上变得更加积极。然而,我们不会在任何水平支撑股价。
持有价值至少2000万美元A类股或B类股,并有意向伯克希尔出售股票的股东可能希望他们的经纪人联系伯克希尔的马克·米勒德(Mark Millard),电话是402-346-1400。我们需要您在打定主意出售股票的情况下,在中部时间上午8:00-8:30或下午3:00-3:30之间给马克打电话。
2019年,伯克希尔向美国财政部汇出36亿美元,用于支付当前所得税。同期,美国政府收到了2430亿美元的企业所得税。从这些统计数据中,你可以为你的公司缴纳了美国所有公司缴纳联邦所得税的1.5%而感到自豪。
55年前,当伯克希尔进入当下的企业集团结构时,公司无需缴纳联邦所得税(这也是有充分理由的:因为在此前十年里,这家苦苦挣扎的企业录得净亏损)。从那时起,由于伯克希尔保留了几乎所有的收益,这项政策的受益者已不仅仅是公司股东,联邦政府也同样受益。(因为)在未来的大部分时间里,我们都希望并期待着向财政部上缴更大的金额。
在A-2-A-3页,您可以找到我们将于2020年5月2日举行年会的详细情况。像往常一样,雅虎将在全球范围内直播这一活动。然而,我们的形式将有一个重要的变化:股东、媒体和董事会成员建议,让我们的两位关键运营经理阿吉特·贾因(Ajit Jain)和格雷格·阿贝尔(Greg Abel)在年会上有更多的曝光率。这一变化非常有意义。无论是作为经理人还是个人,他们都是杰出的个体,你应该从他们那里听到更多。
今年发送问题给我们三名长期任职新闻人员的股东可以指定向阿吉特或格雷格提出问题。就像查理和我一样,他们也将完全不知道这些问题是什么。
记者将与观众轮流提问,观众也可以直接向我们四个人中的任何一个提问。所以,请擦亮你的獠牙。
今年5月2日,欢迎来奥马哈。在这里见见你的资本家同行,购买一些伯克希尔产品,尽情享受。查理和我,还有整个伯克希尔家庭都期待着见到你。
2020年2月22日
沃伦·E·巴菲特。
董事局主席
https://www.youtube.com/watch?v=gx-OzwHpM9k
20 00:09:41,747 –> 00:09:46,418 WELCOME TO THE YAHOO FE
21 00:09:44,216 –> 00:09:48,354 EXCLUSIVE LIVE STREAM, THE 2021
22 00:09:46,485 –> 00:09:49,922 BERKSHIRE HATHAWAY ANNUAL
23 00:09:48,421 –> 00:09:50,989 SHAREHOLDERS MEETING.
24 00:09:49,989 –> 00:09:52,390 IT’S THE MOST WATCHED BUSINESS
25 00:09:51,056 –> 00:09:53,225 EVENT OF THE YEAR AND YOU HAVE A
26 00:09:52,457 –> 00:09:55,460 FRONT ROW SEAT.
27 00:09:53,292 –> 00:09:57,095 ONE OF THE MOST SUCCESSFUL
28 00:09:55,527 –> 00:10:00,032 INVESTORS EVER, BERKSHIRE
29 00:09:57,162 –> 00:10:02,768 HATHAWAY CHAIRMAN AND CEO WARREN
30 00:10:00,099 –> 00:10:04,870 BUFFETT AND VICE CHAIRMAN
31 00:10:02,835 –> 00:10:07,172 CHARLIE MUNGER ARE SET TO GIVE
32 00:10:04,937 –> 00:10:07,673 US THEIR UNIQUE TAKE ON AN
33 00:10:07,239 –> 00:10:09,575 INCREDIBLE YEAR.
34 00:10:07,740 –> 00:10:11,410
YOU CAN BET ON AMERICA, BUT
35 00:10:09,641 –> 00:10:13,379 YOU’RE GOING TO HAVE TO BE
36 00:10:11,477 –> 00:10:17,082 CAREFUL ABOUT HOW YOU BET.
37 00:10:13,446 –> 00:10:20,686
A COVID CRISIS, A BRUTAL
38 00:10:17,149 –> 00:10:22,087 RECESSION, AN UNPRECEDENTED
39 00:10:20,753 –> 00:10:23,355 GOVERNMENT STIMULUS FEEDING INTO
40 00:10:22,154 –> 00:10:25,324 THIS RAGING BULL MARKET.
41 00:10:23,422 –> 00:10:27,793 HEAR WHAT THEY’LL SAY ABOUT THE
42 00:10:25,390 –> 00:10:31,697 BITCOIN BOOM AND THE MEME STOCKS
43 00:10:27,860 –> 00:10:33,732 LED BY THE REDDIT ARMY THAT BLEW
44 00:10:31,764 –> 00:10:33,965 UP THE BALANCE OF POWER ON WALL
45 00:10:33,799 –> 00:10:35,668 STREET.
46 00:10:34,032 –> 00:10:37,536 A ONCE IN A LIFETIME OPPORTUNITY
47 00:10:35,735 –> 00:10:37,870 FOR INVESTORS WILLING TO STOMACH
48 00:10:37,603 –> 00:10:41,173 IT ALL.
49 00:10:37,937 –> 00:10:41,573
IF YOU CAN’T HANDLE IT
50 00:10:41,240 –> 00:10:44,009 PSYCHOLOGICALLY.
51 00:10:41,640 –> 00:10:45,077
WHAT’S NEXT FOR BUFFETT,
52 00:10:44,076 –> 00:10:47,479 BERKSHIRE, THE MARKET AND YOUR
53 00:10:45,144 –> 00:10:48,814 MONEY, JOIN US FOR YAHOO
54 00:10:47,546 –> 00:10:52,351 FINANCE’S EXCLUSIVE COVERAGE OF
55 00:10:48,880 –> 00:10:56,355 THE BERKSHIRE HATHAWAY ANNUAL
56 00:10:52,418 –> 00:11:00,159 SHAREHOLDERS MEETING.
57 00:10:56,422 –> 00:11:01,593
HELLO AND WELCOME TO YAHOO
58 00:11:00,226 –> 00:11:04,329 FINANCE’S EXCLUSIVE BROADCAST OF
59 00:11:01,660 –> 00:11:07,999 THE 2021 BERKSHIRE HATHAWAY
60 00:11:04,396 –> 00:11:11,870 ANNUAL SHAREHOLDERS MEETING
61 00:11:08,066 –> 00:11:15,874 SPONSORED BY YAHOO!.
62 00:11:11,937 –> 00:11:20,345 EXCUSE ME, SPONSORED BY MOMO.
63 00:11:15,941 –> 00:11:23,782 I’M ANDY SERWER, EDITOR IN CHIEF
64 00:11:20,412 –> 00:11:24,917 OF YAHOO! FINANCE COMING AT YOU
65 00:11:23,849 –> 00:11:28,120 FROM LOS ANGELES.
66 00:11:24,984 –> 00:11:29,621 BEHIND ME IS WARREN BUFFETT AND
67 00:11:28,186 –> 00:11:31,323 CHARLIE MUNGER WHO WILL APPEAR
68 00:11:29,688 –> 00:11:32,624 IN ONE HOUR SPEAKING TO
69 00:11:31,390 –> 00:11:34,827 INVESTORS ABOUT BERKSHIRE’S
70 00:11:32,691 –> 00:11:36,995 BUSINESS, THE STOCK MARKET AND
71 00:11:34,894 –> 00:11:38,397 THE HEALTH OF THE U.S. ECONOMY.
72 00:11:37,062 –> 00:11:38,597 THERE’S SO MUCH TO TALK ABOUT
73 00:11:38,464 –> 00:11:39,297 TODAY.
74 00:11:38,664 –> 00:11:41,467 THERE WILL BE QUESTIONS ABOUT
75 00:11:39,364 –> 00:11:43,668 THE BUSINESS ITSELF, SUCCESSION,
76 00:11:41,534 –> 00:11:46,238 THE REUNION OF CHARLIE MUNGER
77 00:11:43,735 –> 00:11:49,040 AND WARREN BUFFETT AND
78 00:11:46,305 –> 00:11:52,344 SHAREHOLDER PROPOSALS ABOUT
79 00:11:49,107 –> 00:11:52,544 CLIMATE CHANGE, DIVERSITY AND
80 00:11:52,411 –> 00:11:56,348 MORE.
81 00:11:52,611 –> 00:12:00,853 TO DISCUSS A ALL OF THIS, LET ME
82 00:11:56,415 –> 00:12:02,554 BRING IN OUR PANEL.
83 00:12:00,920 –> 00:12:04,289 MILES, LET ME START WITH YOU.
84 00:12:02,621 –> 00:12:05,324 THE COMPANY JUST ANNOUNCED
85 00:12:04,356 –> 00:12:06,859 EARNINGS THIS MORNING.
86 00:12:05,391 –> 00:12:09,895 BREAK IT DOWN FOR US.
87 00:12:06,926 –> 00:12:10,529
YEAH, I MEAN, THIS IS AN
88 00:12:09,962 –> 00:12:12,731 ANNUAL MEETING.
89 00:12:10,596 –> 00:12:13,999 WE DO HAVE FIRST QUARTER RESULTS
90 00:12:12,798 –> 00:12:17,068 OUT FROM BERKSHIRE.
91 00:12:14,065 –> 00:12:18,704 THE TOP LINE THAT WE WOULD
92 00:12:17,135 –> 00:12:21,540 TRADITIONALLY LOOK AT WE SEE
93 00:12:18,771 –> 00:12:22,707 HERE ON OUR GRAPHIC, $64.6
94 00:12:21,607 –> 00:12:25,377 BILLION IN REVENUE FROM THE
95 00:12:22,774 –> 00:12:27,646 BERKSHIRE HATHAWAY EMPIRE.
96 00:12:25,444 –> 00:12:29,247 INVESTMENT GAINS, $5.7 BILLION.
97 00:12:27,713 –> 00:12:31,717 I’M SURE WE’LL HEAR FROM WARREN
98 00:12:29,314 –> 00:12:32,651 AND CHARLIE A LOT ABOUT THAT
99 00:12:31,784 –> 00:12:33,819 INVESTMENT PORTFOLIO, THE
100 00:12:32,718 –> 00:12:35,654 ACCOUNTING CHANGE THAT BERKSHIRE
101 00:12:33,886 –> 00:12:37,322 AND ALL COMPANIES ARE REQUIRED
102 00:12:35,720 –> 00:12:38,490 TO GO THROUGH A COUPLE OF YEARS
103 00:12:37,389 –> 00:12:39,992 AGO.
104 00:12:38,557 –> 00:12:41,059 OPERATING PROFITS, JUST OVER $7
105 00:12:40,059 –> 00:12:42,561 BILLION IN THE FIRST QUARTER.
106 00:12:41,126 –> 00:12:44,630 THE COMPANY PROVIDED A LITTLE
107 00:12:42,628 –> 00:12:49,501 BIT OF COLOR THAT I DO WANT TO
108 00:12:44,697 –> 00:12:51,036 CALL OUT IN ITS UTILITIES
109 00:12:49,568 –> 00:12:53,471 BUSINESS, EARNINGS UP 20%.
110 00:12:51,103 –> 00:12:55,273 WE ARE LACKING SOME COVID
111 00:12:53,538 –> 00:12:56,508 COMPARABLES AND WE’VE SEEN THAT
112 00:12:55,340 –> 00:12:57,075 THROUGHOUT THE LAST COUPLE OF
113 00:12:56,575 –> 00:12:58,310 WEEKS.
114 00:12:57,142 –> 00:12:59,711 THEN IN ITS MANUFACTURING
115 00:12:58,377 –> 00:13:01,146 SERVICE AND RETAILING BUSINESSES
116 00:12:59,778 –> 00:13:04,282 THOSE EARNINGS WERE UP JUST
117 00:13:01,213 –> 00:13:05,684 UNDER 30%, 28.5% DURING THE
118 00:13:04,349 –> 00:13:07,485 FIRST QUARTER.
119 00:13:05,751 –> 00:13:09,321 WE HEAR SO OFTEN FROM MAJOR
120 00:13:07,552 –> 00:13:11,423 CORPORATIONS ABOUT THE WAY THAT
121 00:13:09,388 –> 00:13:13,225 THE PANDEMIC RECOVERY OR WE
122 00:13:11,490 –> 00:13:15,393 SHOULD JUST SAY THE RECOVERY OUT
123 00:13:13,292 –> 00:13:16,762 OF THE PANDEMIC-INDUCED
124 00:13:15,460 –> 00:13:17,262 RECESSION IS HELPING THEIR
125 00:13:16,829 –> 00:13:19,632 BUSINESSES.
126 00:13:17,329 –> 00:13:21,533 IT SEEMS SO FAR LIKE BERKSHIRE
127 00:13:19,698 –> 00:13:23,435 HATHAWAY IS NO EXCEPTION.
128 00:13:21,600 –> 00:13:24,736 JULIA LaROCHE, SOMETHING ELSE
129 00:13:23,502 –> 00:13:26,238 WE’VE SEEN IN THIS EARNINGS
130 00:13:24,803 –> 00:13:28,707 RELEASE AND WE KNOW WE’RE GOING
131 00:13:26,305 –> 00:13:30,442 TO HEAR FROM WARREN AND CHARLIE
132 00:13:28,774 –> 00:13:31,510 ABOUT IS THE CASH AND THE BUY
133 00:13:30,509 –> 00:13:32,811 BACK PROGRAM THAT CONTINUED IN
134 00:13:31,576 –> 00:13:33,879 THE FIRST QUARTER.
135 00:13:32,877 –> 00:13:36,281
THAT’S RIGHT, MYLES.
136 00:13:33,946 –> 00:13:37,549 I’M SURE WE’LL GET SOME COLOR ON
137 00:13:36,348 –> 00:13:41,253 THOSE SHARE REPURCHASES AND
138 00:13:37,616 –> 00:13:42,921 SHARE REPURCHASES HITTING A
139 00:13:41,320 –> 00:13:44,590 RECORD IN 2020 AND CONTINUING IN
140 00:13:42,988 –> 00:13:46,091 THE FIRST QUARTER.
141 00:13:44,657 –> 00:13:46,658 SOMETHING SHAREHOLDERS ALWAYS
142 00:13:46,158 –> 00:13:50,762 LOOK TOWARD.
143 00:13:46,725 –> 00:13:55,033 ONE OF THE THINGS THAT I WILL
144 00:13:50,829 –> 00:13:58,036 CERT
145 00:13:55,100 –> 00:13:58,604 CERTAINLY BE FOLLOWING IS THE
146 00:13:58,103 –> 00:14:00,873 INCREDIBLE FRIENDS.
147 00:13:58,671 –> 00:14:03,475 WHEN YOU TALK TO WARREN BUFFETT,
148 00:14:00,940 –> 00:14:06,211 HE TALKS ABOUT HOW CHARLIE
149 00:14:03,542 –> 00:14:07,279 MUNGER MADE HIM A, QUOTE, BETTER
150 00:14:06,278 –> 00:14:09,248 PERSON.
151 00:14:07,346 –> 00:14:11,417 WHILE BUFFETT IS OFTEN VIEWED AS
152 00:14:09,315 –> 00:14:12,818 THE PUBLIC FACE OF BERKSHIRE
153 00:14:11,483 –> 00:14:15,154 HATHAWAY, THE COMPANY AS WE KNOW
154 00:14:12,885 –> 00:14:17,656 IT TODAY WAS ACTUALLY BUILT IN
155 00:14:15,220 –> 00:14:19,791 THE BLUEPRINT OF CHARLIE MUNGER,
156 00:14:17,723 –> 00:14:20,892 WHO IS ALSO – YOU KNOW, DOES
157 00:14:19,858 –> 00:14:22,694 DABBLE IN ARCHITECTURE.
158 00:14:20,959 –> 00:14:24,229 I THINK THIS WILL BE A MOMENT
159 00:14:22,761 –> 00:14:26,265 WHERE THERE WILL BE A LOT MORE
160 00:14:24,296 –> 00:14:27,933 ATTENTION ON MUNGER.
161 00:14:26,332 –> 00:14:31,537 HE’S 97 YEARS OLD.
162 00:14:28,000 –> 00:14:36,074 A POLY MATH INVESTOR WITH
163 00:14:31,603 –> 00:14:37,342 KNOWLEDGE, HUMOR, WITT.
164 00:14:36,141 –> 00:14:38,610 ALWAYS SOME COLORFUL LANGUAGE AT
165 00:14:37,409 –> 00:14:39,878 THE BERKSHIRE MEETING.
166 00:14:38,677 –> 00:14:40,612 IT IS BEING HELD IN LOS ANGELES
167 00:14:39,945 –> 00:14:42,948 THIS YEAR.
168 00:14:40,679 –> 00:14:48,586 BECAUSE OF THE PANDEMIC BUFFETT
169 00:14:43,014 –> 00:14:52,991 WAS IN THE CHI HELP ARENA AND
170 00:14:48,653 –> 00:14:56,962 WITHOUT HIS LONG-TIME COLLEAGUE.
171 00:14:53,058 –> 00:14:59,464 WE HAD A GREAT COLUMN FROM ANDY
172 00:14:57,029 –> 00:15:01,032 SERWER AND AKIKO, I KNOW YOU’LL
173 00:14:59,531 –> 00:15:02,534 BE MONITORING THAT CASH PILE
174 00:15:01,099 –> 00:15:03,802 THAT SEEMS TO BE GROWING.
175 00:15:02,601 –> 00:15:05,971 I KNOW IT GREW IN THE QUARTER.
176 00:15:03,869 –> 00:15:07,672 IF WE’LL GET ANY COLOR FROM THE
177 00:15:06,038 –> 00:15:08,340 INVESTORS ON WHAT THEY’LL DO
178 00:15:07,739 –> 00:15:10,409 WITH THAT.
179 00:15:08,407 –> 00:15:12,244
YEAH, NO QUESTION ABOUT THAT.
180 00:15:10,476 –> 00:15:15,714 MYLES JUST ELUDED TO IT.
181 00:15:12,311 –> 00:15:16,915 WE’RE TALKING ABOUT $155.4
182 00:15:15,781 –> 00:15:18,784 BILLION IN CASH IN THE END OF
183 00:15:16,981 –> 00:15:22,120 THE FIRST QUARTER.
184 00:15:18,851 –> 00:15:23,221 WE’VE HEARD WARREN BUFFETT TAUT
185 00:15:22,187 –> 00:15:25,123 THIS ACQUISITION.
186 00:15:23,288 –> 00:15:27,292 LAST YEAR AT THE MEETING HE SAID
187 00:15:25,190 –> 00:15:28,327 HE HASN’T DONE ANYTHING YET.
188 00:15:27,359 –> 00:15:29,695 HE HASN’T FOUND ANYTHING THAT IS
189 00:15:28,394 –> 00:15:31,563 THAT ATTRACTIVE.
190 00:15:29,762 –> 00:15:33,265 I’D BE CURIOUS TO SEE IF HE’S
191 00:15:31,630 –> 00:15:35,401 GOT HIS EYE ON SOMETHING NOW, IF
192 00:15:33,332 –> 00:15:35,701 HIS THOUGHTS HAVE CHANGED ON
193 00:15:35,467 –> 00:15:37,135 THAT FRONT.
194 00:15:35,768 –> 00:15:38,603 IT WILL BE ALSO INTERESTING TO
195 00:15:37,202 –> 00:15:39,504 SEE HOW HE’S VIEWING THE MARKET
196 00:15:38,670 –> 00:15:42,140 CONDITIONS RIGHT NOW.
197 00:15:39,571 –> 00:15:43,208 REMEMBER A YEAR AGO HE MADE SOME
198 00:15:42,207 –> 00:15:46,044 HEADLINES WHEN HE EXITED THOSE
199 00:15:43,275 –> 00:15:47,546 BIG POSITIONS IN AIRLINES,
200 00:15:46,111 –> 00:15:48,180 UNITED, DELTA, SOUTHWEST,
201 00:15:47,613 –> 00:15:50,182 AMERICAN.
202 00:15:48,247 –> 00:15:51,883 SINCE THEN WE HAVE SEEN SOME OF
203 00:15:50,249 –> 00:15:53,752 THOSE STOCKS RALLY TRIPLE DIGITS
204 00:15:51,950 –> 00:15:54,786 SINCE THE PANDEMIC LOW.
205 00:15:53,819 –> 00:15:55,721 IS HE MAYBE RECONSIDERING SOME
206 00:15:54,853 –> 00:15:56,788 OF THOSE POSITIONS?
207 00:15:55,788 –> 00:16:00,125 SOMETHING TO THINK ABOUT.
208 00:15:56,855 –> 00:16:02,227 AND THEN FINALLY SOMETHING THAT
209 00:16:00,192 –> 00:16:03,795 ANDY JUST ALLUDED TO IN THE
210 00:16:02,294 –> 00:16:06,097 OPENING IS HOW HE’S LOOKING AT
211 00:16:03,862 –> 00:16:08,333 WHAT WE’VE HEARD OVER AND OVER
212 00:16:06,164 –> 00:16:10,202 AS THE FROTH IN THE MARKET.
213 00:16:08,400 –> 00:16:12,337 BITCOIN CERTAINLY I IMAGINE WILL
214 00:16:10,269 –> 00:16:12,537 COME UP AS A POINT OF DISCUSSION
215 00:16:12,404 –> 00:16:14,305 HERE.
216 00:16:12,604 –> 00:16:16,241 WE’VE HEARD WARREN BUFFETT
217 00:16:14,372 –> 00:16:18,777 DISMISS THEM, THE CRYPTOCURRENCY
218 00:16:16,308 –> 00:16:20,746 AS HAVING NO VALUE BEFORE,
219 00:16:18,844 –> 00:16:22,981 CALLING IT RAT POISON SQUARED.
220 00:16:20,813 –> 00:16:26,017 CHARLIE MUNGER CERTAINLY NO FAN
221 00:16:23,048 –> 00:16:27,386 SAYING PURSUIT OF THE UNEATABLE
222 00:16:26,084 –> 00:16:29,554 BY THE UNSPEAKABLE.
223 00:16:27,453 –> 00:16:31,923 WE’RE SITTING HERE TALKING ABOUT
224 00:16:29,621 –> 00:16:39,998 BITCOIN RALLYING, WHAT, 90% SO
225 00:16:31,990 –> 00:16:41,800 FAR THIS YEAR.
226 00:16:40,065 –> 00:16:43,035 IT’S REQUES’S GOING TO BE INTER
227 00:16:41,866 –> 00:16:46,071 SEE WHAT HE HAS TO SAY.
228 00:16:43,102 –> 00:16:48,340 WE HAVE CAR REN WALLACE,
229 00:16:46,138 –> 00:16:48,640 MORNINGSTAR DIRECTOR OF INVESTOR
230 00:16:48,407 –> 00:16:50,375 EDUCATION.
231 00:16:48,707 –> 00:16:52,010 KAREN, YOU’VE HEARD US PREVIEW
232 00:16:50,442 –> 00:16:53,945 OF WHAT COULD COME UP
233 00:16:52,077 –> 00:16:55,780 POTENTIALLY AS QUESTIONS IN THIS
234 00:16:54,012 –> 00:16:56,448 SHAREHOLDER MEETING.
235 00:16:55,847 –> 00:16:57,249 WHAT SPECIFICALLY ARE YOU GOING
236 00:16:56,514 –> 00:17:00,051 TO BE LOOKING FOR?
237 00:16:57,316 –> 00:17:01,319
A LOT OF THE THINGS YOU’RE
238 00:17:00,118 –> 00:17:02,120 MENTIONING HAVE BEEN ON MY MIND
239 00:17:01,386 –> 00:17:04,389 AS WELL.
240 00:17:02,187 –> 00:17:05,023 THE FEAR OF MISSING OUT.
241 00:17:04,456 –> 00:17:06,925 SPECULATION.
242 00:17:05,090 –> 00:17:09,627 YOU KNOW, BUFFETT AND MUNGER
243 00:17:06,992 –> 00:17:11,263 DON’T REALLY LIKE TO SPECULATE
244 00:17:09,694 –> 00:17:13,298 WITH THEIR SHAREHOLDERS MONEY.
245 00:17:11,330 –> 00:17:16,167 THE THING ABOUT WARREN BUFFETT,
246 00:17:13,365 –> 00:17:18,303 HE DIDN’T STRIKE OIL OR DEVELOP
247 00:17:16,234 –> 00:17:20,805 SOFTWARE AND INHERIT A BIG PILE
248 00:17:18,370 –> 00:17:22,607 OF MONEY, HE BUILT HIS FORTUNE
249 00:17:20,872 –> 00:17:24,209 BY PICKING SOLID BUSINESSES THAT
250 00:17:22,674 –> 00:17:25,277 GENERATE A LOT OF CASH AND HE
251 00:17:24,276 –> 00:17:25,644 BELIEVES WILL CONTINUE TO DO
252 00:17:25,344 –> 00:17:27,612 WELL.
253 00:17:25,711 –> 00:17:27,845 YOU KNOW, HE TAKES THE CASH FROM
254 00:17:27,679 –> 00:17:30,015 THAT.
255 00:17:27,912 –> 00:17:31,516 HE REINVESTS.
256 00:17:30,082 –> 00:17:33,552 HE HOLDS ON FOR THE LONG TERM.
257 00:17:31,583 –> 00:17:35,754 HE LOOKS FOR NEW OPPORTUNITIES.
258 00:17:33,619 –> 00:17:37,589 HE WANTS BUSINESSES THAT HE CAN
259 00:17:35,821 –> 00:17:40,358 UNDERSTAND, WHICH IS A BIG PART
260 00:17:37,656 –> 00:17:41,259 OF IT, THEN YOU CAN MORE
261 00:17:40,425 –> 00:17:42,660 ACCURATELY VALUE A BUSINESS IF
262 00:17:41,326 –> 00:17:44,262 YOU UNDERSTAND WHAT IT DOES.
263 00:17:42,727 –> 00:17:47,165 HE WANTS BUSINESSES THAT HAVE
264 00:17:44,329 –> 00:17:49,167 GOOD LONG-TERM PROSPECTS.
265 00:17:47,232 –> 00:17:49,434 FEAR OF MISSING OUT IS HIS
266 00:17:49,234 –> 00:17:50,902 THING.
267 00:17:49,501 –> 00:17:52,203 HE WANTS BUSINESSES RUN BY
268 00:17:50,969 –> 00:17:54,639 HONEST AND COMPETENT PEOPLE
269 00:17:52,270 –> 00:17:57,275 BECAUSE THIS IS A LONG-TERM
270 00:17:54,706 –> 00:17:58,776 RELATIONSHIP AND HE WANTS ALL OF
271 00:17:57,342 –> 00:18:01,646 THAT AT AN ATTRACTIVE PRICE
272 00:17:58,843 –> 00:18:03,582 WHICH AS YOU’RE BOTH ALLUDING
273 00:18:01,713 –> 00:18:04,683 TO, THERE’S NOT TOO MANY
274 00:18:03,649 –> 00:18:06,451 OPPORTUNITIES OUT THERE.
275 00:18:04,750 –> 00:18:08,653 YOU KNOW, HIGH QUALITY
276 00:18:06,518 –> 00:18:10,755 BUSINESSES LIKE THIS DON’T GO ON
277 00:18:08,720 –> 00:18:12,824 SALE VERY OFTEN BUT BUFFETT IS A
278 00:18:10,822 –> 00:18:14,592 PATIENT – HE’S A PATIENT
279 00:18:12,891 –> 00:18:15,727 INVESTOR AND HE CAN WAIT FOR
280 00:18:14,659 –> 00:18:18,563 EXACTLY THE RIGHT PITCH.
281 00:18:15,794 –> 00:18:19,631 TO INCREASE HIS SUCCESS RATE HE
282 00:18:18,630 –> 00:18:21,232 DOES LOOK FOR COMPANIES THAT ARE
283 00:18:19,698 –> 00:18:23,468 SELLING FOR LESS THAN HIS
284 00:18:21,299 –> 00:18:25,470 ESTIMATE OF THEIR FAIR VALUE
285 00:18:23,535 –> 00:18:27,139 WHICH GIVES HIM SOME LEEWAY IN
286 00:18:25,537 –> 00:18:27,739 CASE HIS ESTIMATE ISN’T EXACTLY
287 00:18:27,206 –> 00:18:28,740 RIGHT.
288 00:18:27,806 –> 00:18:30,608 BUT ANOTHER REALLY IMPORTANT
289 00:18:28,807 –> 00:18:32,277 PART OF HIS STRATEGY IS LOOKING
290 00:18:30,675 –> 00:18:33,311 FOR COMPANIES THAT HAVE
291 00:18:32,343 –> 00:18:38,817 COMPETITIVE ADVANTAGES OR WHAT
292 00:18:33,378 –> 00:18:41,986 HE REFERS TO AS ECONOMIC MOATS,
293 00:18:38,884 –> 00:18:44,990 MOATS AROUND THE CASTLE
294 00:18:42,053 –> 00:18:45,257 PROTECTING THE CASTLE AND THE
295 00:18:45,057 –> 00:18:46,525 BUSINESS.
296 00:18:45,324 –> 00:18:48,893
KAREN, LET ME ASK YOU ABOUT
297 00:18:46,591 –> 00:18:54,632 REPORTS THAT INDICATE THAT SOME
298 00:18:48,960 –> 00:18:56,634 SHAREHOLDERS MIGHT BE A LITTLE
299 00:18:54,699 –> 00:18:58,136 DISGRUNTLED ABOUT THE
300 00:18:56,701 –> 00:19:00,872 PERFORMANCE OF THE BERKSHIRE
301 00:18:58,203 –> 00:19:01,940 STOCK AND THE DIVERSITY AND
302 00:19:00,939 –> 00:19:02,774 INCLUSION, CLIMATE CHANGE,
303 00:19:02,007 –> 00:19:03,775 DIRECTORS AND COMPENSATION.
304 00:19:02,841 –> 00:19:07,278 WHAT DO YOU MAKE OF THAT?
305 00:19:03,842 –> 00:19:09,280
WELL, YOU KNOW, HE HAS TRIED
306 00:19:07,345 –> 00:19:11,917 TO KIND OF PUT THAT INTO THE
307 00:19:09,347 –> 00:19:12,250 HANDS OF THE COMPANY MANAGEMENT
308 00:19:11,984 –> 00:19:14,285 BEFORE.
309 00:19:12,317 –> 00:19:15,553 IT’LL BE INTERESTING TO SEE HOW
310 00:19:14,352 –> 00:19:18,089 THAT QUESTION IS ANSWERED
311 00:19:15,620 –> 00:19:18,824 BECAUSE I THINK A LOT MORE
312 00:19:18,156 –> 00:19:20,825 PRESSURE, OBVIOUSLY I HAVEN’T
313 00:19:18,890 –> 00:19:22,260 BEEN TO THE SHAREHOLDER MEETING
314 00:19:20,892 –> 00:19:23,661 PERSONALLY SINCE 2019, BUT I
315 00:19:22,327 –> 00:19:28,767 REMEMBER A LOT MORE QUESTIONS
316 00:19:23,728 –> 00:19:30,401 COMING UP ABOUT THAT.
317 00:19:28,834 –> 00:19:31,736 IT’LL BE INTERESTING TO SEE HOW
318 00:19:30,468 –> 00:19:35,573 THAT’S ANSWERED BECAUSE I REALLY
319 00:19:31,803 –> 00:19:37,709 DO KIND OF THINK THAT HIS VIEW
320 00:19:35,640 –> 00:19:39,978 IS THAT, YOU KNOW, THE COMPANY
321 00:19:37,776 –> 00:19:43,414 MANAGERS KIND OF ALLOCATE THEIR
322 00:19:40,045 –> 00:19:44,750 OWN CAPITAL AND THEY MAKE THEIR
323 00:19:43,481 –> 00:20:13,711 DECISIONS FOR THEMSELVES, BUT IT
324 00:19:44,816 –> 00:20:15,213 IS BECOMING SOMETHING MORE.
325 00:20:13,778 –> 00:20:17,148
WHY DO YOU THINK THIS IS SUCH
326 00:20:15,280 –> 00:20:20,285 A PARTICULARLY IMPORTANT MEETING
327 00:20:17,215 –> 00:20:22,387 FOR THEM TO PAY ATTENTION TO?
328 00:20:20,352 –> 00:20:25,790
WELL, YOU KNOW, THE CORNER
329 00:20:22,454 –> 00:20:27,492 STONE OF OUR EQUITY VALUATION AT
330 00:20:25,857 –> 00:20:29,894 MORNINGSTAR, WE BORROWED A LOT
331 00:20:27,559 –> 00:20:31,529 OF BUFFETT’S WISDOM.
332 00:20:29,961 –> 00:20:33,765 YOU KNOW, WE LOOK FOR COMPANIES
333 00:20:31,596 –> 00:20:36,701 THAT – YOU KNOW, SO WHEN A
334 00:20:33,832 –> 00:20:39,771 COMPANY’S KIND OF – WHEN ITS
335 00:20:36,768 –> 00:20:41,906 RETURNS ON CAPITAL ARE EXCEEDING
336 00:20:39,838 –> 00:20:43,875 COST ON CAPITAL FOR A LONG TIME,
337 00:20:41,973 –> 00:20:44,076 THEY’RE DOING SOMETHING RIGHT,
338 00:20:43,942 –> 00:20:45,910 RIGHT?
339 00:20:44,142 –> 00:20:48,346 THE BUSINESSES OFTEN HAVE SOME
340 00:20:45,977 –> 00:20:49,648 SORT OF COMPETITIVE ADVANTAGE,
341 00:20:48,413 –> 00:20:52,651 SUSTAINABLE, OR THAT’S ENDURING,
342 00:20:49,715 –> 00:20:53,785 AND BUFFETT REFERS TO THAT AS AN
343 00:20:52,718 –> 00:20:57,255 ECONOMIC MOAT.
344 00:20:53,852 –> 00:20:59,324 I THINK SEARCHING FOR THESE
345 00:20:57,322 –> 00:20:59,991 MOATS IS MORE IMPORTANT THAN
346 00:20:59,391 –> 00:21:01,025 EVER.
347 00:21:00,058 –> 00:21:02,026 ESPECIALLY IF YOU LOOK AT THE
348 00:21:01,092 –> 00:21:03,361 KINDS OF BUSINESS THAT
349 00:21:02,093 –> 00:21:04,329 BUFFETT – THE KINDS OF
350 00:21:03,428 –> 00:21:06,064 BUSINESSES THAT BUFFETT IS
351 00:21:04,396 –> 00:21:08,233 INTERESTED IN INVESTING IN,
352 00:21:06,131 –> 00:21:10,268 THEY’RE CASH POWERHOUSES, THINGS
353 00:21:08,300 –> 00:21:12,003 LIKE INSURANCE, BANKING,
354 00:21:10,335 –> 00:21:12,804 CONSUMER PRODUCTS,
355 00:21:12,070 –> 00:21:14,072 PHARMACEUTICALS.
356 00:21:12,871 –> 00:21:18,610 YOU KNOW, THESE ARE THINGS THAT
357 00:21:14,139 –> 00:21:21,212 KIND OF HOLD UP WELL, YOU KNOW,
358 00:21:18,676 –> 00:21:23,715 AND THERE’S A LOT OF OPPORTUNITY
359 00:21:21,279 –> 00:21:25,050 FOR HIM TO REINVEST IN THE
360 00:21:23,782 –> 00:21:27,151 BUSINESS, TO BUY BACK SHARES,
361 00:21:25,117 –> 00:21:29,153 TO, YOU KNOW, INVEST IN THE
362 00:21:27,218 –> 00:21:30,789 STOCK AND BOND MARKETS AS WELL,
363 00:21:29,220 –> 00:21:32,890 EVEN IN THE ABSENCE OF, YOU
364 00:21:30,856 –> 00:21:35,026 KNOW, A BIG, ATTRACTIVE
365 00:21:32,957 –> 00:21:35,259 ACQUISITION THAT COULD MOVE THE
366 00:21:35,093 –> 00:21:37,895 NEEDLE.
367 00:21:35,326 –> 00:21:40,332 YOU KNOW, IT’S HARD FOR BUFFETT
368 00:21:37,962 –> 00:21:44,669 TO FIND – HARD FOR BERKSHIRE TO
369 00:21:40,399 –> 00:21:47,305 FIND SOMETHING LARGE ENOUGH FOR
370 00:21:44,736 –> 00:21:48,807 IT TO MOVE THE NEEDLE IN TERMS
371 00:21:47,372 –> 00:21:50,375 OF OUR EARNINGS, YOU KNOW, IN
372 00:21:48,873 –> 00:21:51,976 TERMS OF MAKING A DIFFERENCE ON
373 00:21:50,442 –> 00:21:52,243 THE OVERALL EARNINGS OF THE
374 00:21:52,043 –> 00:21:53,845 COMPANY.
375 00:21:52,310 –> 00:21:55,747
KAREN, I’M CURIOUS ALSO ABOUT
376 00:21:53,912 –> 00:21:59,984 THE STRUCTURE OF BERKSHIRE.
377 00:21:55,814 –> 00:22:00,217 AS A CONGLOMERATE, IT’S OUT
378 00:22:00,051 –> 00:22:02,653 MOATED.
379 00:22:00,284 –> 00:22:04,556 NEW INVESTORS DON’T REALIZE THE
380 00:22:02,720 –> 00:22:04,856 HISTORY OF THE CONGLOMERATE
381 00:22:04,623 –> 00:22:06,658 STRUCTURE.
382 00:22:04,923 –> 00:22:08,326 BUFFETT WROTE ABOUT THAT IN THIS
383 00:22:06,725 –> 00:22:09,360 YEAR’S ANNUAL LETTER.
384 00:22:08,393 –> 00:22:10,828 I’M WONDERING IF YOU WERE
385 00:22:09,427 –> 00:22:15,467 THINKING ABOUT BERKSHIRE AS THE
386 00:22:10,895 –> 00:22:16,968 LAST OF ITS KIND OFR DO SOME OF
387 00:22:15,533 –> 00:22:18,903 THE BIG COMPANIES TRY TO EMULATE
388 00:22:17,035 –> 00:22:19,838 THAT STRUCTURE AS THEY MATURE IN
389 00:22:18,970 –> 00:22:21,439 THEIR LIFE CYCLE?
390 00:22:19,905 –> 00:22:23,274
YOU KNOW, IT’S INTERESTING
391 00:22:21,506 –> 00:22:27,412 BECAUSE IT’S A COLLECTION –
392 00:22:23,341 –> 00:22:29,447 IT’S SORT OF A COLLECTION OF
393 00:22:27,479 –> 00:22:31,315 MOATY BUSINESSES.
394 00:22:29,514 –> 00:22:32,483 OUR ANALYST GREG WARREN TALKS
395 00:22:31,382 –> 00:22:35,119 ABOUT INSURANCE ISN’T THE KIND
396 00:22:32,550 –> 00:22:36,488 OF BUSINESS THAT HAS A MOAT,
397 00:22:35,186 –> 00:22:39,690 IT’S A COMMODITY BUSINESS.
398 00:22:36,555 –> 00:22:41,726 THEY OWN A LOT OF REALLY GOOD,
399 00:22:39,757 –> 00:22:44,128 HIGH QUALITY INSURANCE NAMES.
400 00:22:41,793 –> 00:22:46,364 THEY DO ALSO INVEST IN A LOT OF
401 00:22:44,195 –> 00:22:50,635 BUSINESSES THAT ARE INTANGIBLE
402 00:22:46,431 –> 00:22:53,104 ASSETS, ONE OF THE MOAT SOURCES.
403 00:22:50,702 –> 00:22:53,571 THEY OWN THINGS LIKE J&J MERCK,
404 00:22:53,171 –> 00:22:55,907 BRISTOL-MYERS.
405 00:22:53,638 –> 00:22:57,275 APPLE AND COKE WITH THEIR STRONG
406 00:22:55,974 –> 00:22:59,911 BRAND LOYALTY.
407 00:22:57,342 –> 00:23:00,979 THOSE ARE ALSO EXAMPLES OF
408 00:22:59,978 –> 00:23:02,747 INTANGIBLE ASSETS.
409 00:23:01,046 –> 00:23:04,148 THEY ALSO HAVE THINGS LIKE
410 00:23:02,814 –> 00:23:06,217 RAILROADS, PIPE LINES THAT
411 00:23:04,215 –> 00:23:07,852 BENEFIT FROM EFFICIENT SCALE.
412 00:23:06,284 –> 00:23:09,787 THERE MIGHT ONLY BE ONE PROVIDER
413 00:23:07,919 –> 00:23:13,024 IN A CERTAIN AREA THAT IS
414 00:23:09,854 –> 00:23:14,625 PROVIDING THE SERVICE SO, YOU
415 00:23:13,091 –> 00:23:16,661 KNOW, THE NICHE MARKET IS
416 00:23:14,692 –> 00:23:17,429 EFFECTIVELY SERVED BY A FEW
417 00:23:16,728 –> 00:23:21,332 COMPANIES.
418 00:23:17,496 –> 00:23:23,334 THERE’S ALSO A NETWORK, EFFECT.
419 00:23:21,399 –> 00:23:26,037 AMERICAN EXPRESS HAS A CLOSED
420 00:23:23,401 –> 00:23:27,438 LOOP OF MERCHANTS, CARDHOLDERS.
421 00:23:26,104 –> 00:23:28,807 A LOT OF PEOPLE USING THE
422 00:23:27,505 –> 00:23:30,775 SERVICE BECOMES MORE VALUABLE TO
423 00:23:28,874 –> 00:23:32,310 PEOPLE AS MORE PEOPLE USE IT.
424 00:23:30,842 –> 00:23:35,179 SWITCHING COSTS.
425 00:23:32,377 –> 00:23:37,648 LIKE WHEN IT WOULD BECOME MORE
426 00:23:35,246 –> 00:23:40,618 EXPENSIVE TO STOP USING A
427 00:23:37,715 –> 00:23:42,053 PRODUCT OR IT’S A BIG PAIN, A
428 00:23:40,685 –> 00:23:44,856 HASSLE, SOME OF THE BIG BANKS
429 00:23:42,120 –> 00:23:45,990 THAT BERKSHIRE HAS HAS THAT AND
430 00:23:44,923 –> 00:23:47,758 THEY HAVE COST ADVANTAGES AND
431 00:23:46,057 –> 00:23:49,394 THEY CAN UNDERCUT THEIR
432 00:23:47,825 –> 00:23:49,928 COMPETITORS AND STILL EARN A
433 00:23:49,461 –> 00:23:51,262 PROFIT.
434 00:23:49,995 –> 00:23:52,263 SO, YOU KNOW, BERKSHIRE HAS A
435 00:23:51,329 –> 00:23:55,633 COLLECTION OF THESE BUSINESSES
436 00:23:52,330 –> 00:23:57,301 AND IT’S A DIVERSIFIED BUSINESS.
437 00:23:55,700 –> 00:23:58,470 IT HELPS IT GOING IN A LOT OF
438 00:23:57,368 –> 00:24:01,739 DIFFERENT MARKETS.
439 00:23:58,537 –> 00:24:02,807 IT’S A UNIQUE SORT OF COMPANY IN
440 00:24:01,806 –> 00:24:05,476 THAT WAY.
441 00:24:02,874 –> 00:24:09,147 YOU KNOW, KIND OF BUILT UP THAT
442 00:24:05,543 –> 00:24:12,884 WAY AS A STOCK PICKER’S
443 00:24:09,214 –> 00:24:13,218 CONGLOMERATE, YOU KNOW?
444 00:24:12,951 –> 00:24:16,988
ALL RIGHT.
445 00:24:13,284 –> 00:24:18,189 GREAT STUFF THERE, CAR REN
446 00:24:17,055 –> 00:24:20,024 WALLACE, MORNINGSTAR.
447 00:24:18,256 –> 00:24:20,692 DIRECTOR OF INVESTOR EDUCATION.
448 00:24:20,091 –> 00:24:24,028 THANK YOU VERY MUCH.
449 00:24:20,759 –> 00:24:24,462 COMING UP, HOW TO LIVE RICHER,
450 00:24:24,095 –> 00:24:27,265 WISER, HAPPIER.
451 00:24:24,529 –> 00:24:30,067 WHO DOESN’T WANT TO DO THAT?
452 00:24:27,332 –> 00:24:31,402 WE’LL TALK TO AUTHOR WILLIAM
453 00:24:30,134 –> 00:24:32,871 GREENE AND WHAT HE LEARNED FROM
454 00:24:31,469 –> 00:24:33,104 THE LIFE AND LEGACY OF CHARLIE
455 00:24:32,937 –> 00:24:35,240 MUNGER.
456 00:24:33,171 –> 00:24:35,240 BACK IN TWO MINUTES.
457 00:24:40,312 –> 00:24:45,416
YAHOO FINANCE’S LIVE
458 00:24:42,680 –> 00:24:46,017 COVERAGE IS BROUGHT TO YOU BY
459 00:24:45,483 –> 00:24:47,685 MOOMOO.
460 00:24:46,084 –> 00:24:48,886 A ONE STOP SMART TRADING
461 00:24:47,752 –> 00:24:50,721 PLATFORM OF STOCKS, OPTIONS,
462 00:24:48,953 –> 00:24:50,721 ETFs AND MORE.
463 00:27:06,391 –> 00:27:10,494
YAHOO! FINANCE’S LIVE
464 00:27:08,559 –> 00:27:12,330 COVERAGE OF THE BERKSHIRE
465 00:27:10,561 –> 00:27:15,366 HATHAWAY ANNUAL SHAREHOLDER
466 00:27:12,397 –> 00:27:15,599 MEETING IS BROUGHT TO YOU BY
467 00:27:15,433 –> 00:27:18,569 MOOMOO.
468 00:27:15,666 –> 00:27:22,640 ONE STOP TRADING PLATFORM OF
469 00:27:18,636 –> 00:27:25,209 STOCKS, OPTIONS, AND MORE.
470 00:27:22,707 –> 00:27:25,977
WELCOME BACK TO YAHOO!
471 00:27:25,276 –> 00:27:27,745 FINANCE.
472 00:27:26,044 –> 00:27:29,914 WE ARE NOW JUST 45 MINUTES AWAY
473 00:27:27,812 –> 00:27:31,949 FROM THE START OF THE BERKSHIRE
474 00:27:29,981 –> 00:27:32,950 HATHAWAY ANNUAL SHAREHOLDERS
475 00:27:32,016 –> 00:27:33,150 MEETING IN LOS ANGELES THIS
476 00:27:33,017 –> 00:27:35,186 YEAR.
477 00:27:33,217 –> 00:27:38,456 JOINING US NOW IS WILLIAM GREEN,
478 00:27:35,253 –> 00:27:40,825 AUTHOR OF A NEW BOOK “RICHER,
479 00:27:38,523 –> 00:27:43,494 WISER, AND HAPPIER HOW THE
480 00:27:40,892 –> 00:27:44,829 WORLD’S INVESTORS WIN IN THE
481 00:27:43,561 –> 00:27:46,697 MARKETS AND LIFE.”
482 00:27:44,896 –> 00:27:48,833 ONE OF THE INVESTORS YOU DID
483 00:27:46,764 –> 00:27:49,066 SPEAK TO FOR THIS BOOK, CHARLIE
484 00:27:48,900 –> 00:27:50,701 MUNGER.
485 00:27:49,133 –> 00:27:52,203 I WONDER IF WE START WITH THE
486 00:27:50,768 –> 00:27:55,439 BIG TAKE AWAY FROM YOU.
487 00:27:52,270 –> 00:27:56,473 WHAT YOU TOOK AWAY FROM YOUR
488 00:27:55,506 –> 00:27:59,110 CONVERSATION WITH HIM IN TERMS
489 00:27:56,540 –> 00:28:01,512 OF THE KEY TO BUILDING WEALTH.
490 00:27:59,176 –> 00:28:03,014
TO ME, ONE OF THE MOST
491 00:28:01,579 –> 00:28:05,616 FASCINATING THINGS ABOUT CHARLIE
492 00:28:03,081 –> 00:28:06,884 MUNGER, YOU HAVE ONE OF THE
493 00:28:05,683 –> 00:28:09,420 GREATEST GUYS ALIVE.
494 00:28:06,951 –> 00:28:11,589 HE CAN SEE THE ESSENCE OF WHAT
495 00:28:09,487 –> 00:28:12,823 ANY SUBJECT IS ABOUT BEFORE
496 00:28:11,656 –> 00:28:14,058 YOU’VE EVEN FINISHED THE
497 00:28:12,890 –> 00:28:15,860 SENTENCE AND YET WHAT CHARLIE
498 00:28:14,125 –> 00:28:18,295 DOES THAT I THINK IS
499 00:28:15,927 –> 00:28:19,464 EXTRAORDINARILY HELPFUL FOR ANY
500 00:28:18,362 –> 00:28:23,167 OF US, BOTH IN INVESTING AND
501 00:28:19,531 –> 00:28:24,568 LIFE, IS HE FOCUSES ON REDUCING
502 00:28:23,234 –> 00:28:26,837 STANDARD STUPIDITIES.
503 00:28:24,635 –> 00:28:31,042 IF YOU REALLY WANT TO SUCCEED,
504 00:28:26,904 –> 00:28:39,783 BOTH AS AN INVESTOR AND IN LIFE,
505 00:28:31,109 –> 00:28:40,084 YOU WANT TO FOCUS ON BEING N
506 00:28:39,850 –> 00:28:41,819 NON-IDIOTIC.
507 00:28:40,150 –> 00:28:42,887 HE COLLECTS ABSURD, DUMB,
508 00:28:41,886 –> 00:28:44,756 FOOLISH THINGS PEOPLE DO AND
509 00:28:42,954 –> 00:28:45,690 THEN HE ASKS HIMSELF, WELL, WHAT
510 00:28:44,823 –> 00:28:47,025 CAUSED THOSE THINGS?
511 00:28:45,757 –> 00:28:49,594 WHAT CAUSED THIS DISASTER?
512 00:28:47,091 –> 00:28:50,728 THEN HE SAYS, LET ME FOCUS ON
513 00:28:49,660 –> 00:28:51,695 NOT DOING THAT.
514 00:28:50,795 –> 00:28:54,031 IF YOU THINK ABOUT THIS AS A
515 00:28:51,762 –> 00:28:56,300 TAKE AWAY FOR ANY INVESTOR,
516 00:28:54,098 –> 00:28:58,770 THINK ABOUT THE WAYS MOST OF US
517 00:28:56,367 –> 00:28:59,370 MESS UP AS INVESTORS.
518 00:28:58,837 –> 00:29:00,838 WE’RE IMPATIENT.
519 00:28:59,437 –> 00:29:02,807 WE TRY TO TIME THE MARKET.
520 00:29:00,905 –> 00:29:03,107 WE SPECULATE ON THINGS WE DON’T
521 00:29:02,874 –> 00:29:04,976 UNDERSTAND.
522 00:29:03,174 –> 00:29:06,477 WE TRADE IN AND OUT.
523 00:29:05,043 –> 00:29:08,112 WE’RE MUCH TOO EMOTIONAL.
524 00:29:06,543 –> 00:29:10,248 WE GET CAUGHT UP IN FACTS.
525 00:29:08,179 –> 00:29:12,383 HERE YOU HAVE CHARLIE AND WARREN
526 00:29:10,315 –> 00:29:15,253 BASICALLY JUST AVOIDING ALL OF
527 00:29:12,450 –> 00:29:17,221 THOSE STANDARD STUPIDITIES.
528 00:29:15,320 –> 00:29:18,589 IT’S ACTUALLY EASIER TO AVOID
529 00:29:17,288 –> 00:29:20,925 BEING STUPID THAN TO BE SMART.
530 00:29:18,656 –> 00:29:22,426 I THOUGHT THAT WAS A WONDERFUL
531 00:29:20,992 –> 00:29:23,494 PARADOX THAT YOU HAVE THE
532 00:29:22,493 –> 00:29:26,964 SMARTEST GIA LIVE JUST TRYING TO
533 00:29:23,560 –> 00:29:29,667 BE SYSTEMATICALLY LESS STUPID.
534 00:29:27,031 –> 00:29:30,968
WILLIAM, I WANT TO FOLLOW-UP
535 00:29:29,734 –> 00:29:33,304 ON THAT POINT.
536 00:29:31,035 –> 00:29:35,106 WHEN CHARLIE AND WARREN TALK, IT
537 00:29:33,371 –> 00:29:37,241 SOUNDS SO EASY AND YOU LISTEN TO
538 00:29:35,173 –> 00:29:39,376 IT AND YOU GO, YUP, I’M GOING TO
539 00:29:37,308 –> 00:29:41,445 DO THAT, I’M GOING TO DO THAT,
540 00:29:39,443 –> 00:29:43,347 I’M GOING TO DO THAT AND THEN
541 00:29:41,512 –> 00:29:43,614 YOU TRY TO DO IT, YOU CAN’T DO
542 00:29:43,414 –> 00:29:46,684 IT.
543 00:29:43,681 –> 00:29:48,619 WHY IS THERE THIS GAP?
544 00:29:46,751 –> 00:29:51,255
CHARLIE ALWAYS SAYS ABOUT
545 00:29:48,686 –> 00:29:51,455 INVESTING, IT’S SIMPLE, NOT
546 00:29:51,322 –> 00:29:52,857 EASY.
547 00:29:51,522 –> 00:29:54,325 ONE OF THE THINGS YOU HAVE TO
548 00:29:52,924 –> 00:29:55,993 UNDERSTAND, YOU HAVE TO START BY
549 00:29:54,392 –> 00:29:57,395 SAYING, WELL, THERE ARE THESE
550 00:29:56,060 –> 00:29:59,297 PRINCIPLES BE THAT I NEED TO
551 00:29:57,462 –> 00:30:00,097 UNDERSTAND ABOUT HOW INVESTING
552 00:29:59,364 –> 00:30:02,100 WORKS.
553 00:30:00,164 –> 00:30:03,134 LIKE, FOR EXAMPLE, YOU WANT TO
554 00:30:02,166 –> 00:30:05,069 BE PATIENT.
555 00:30:03,201 –> 00:30:06,470 YOU WANT TO BUY ASSETS WHEN
556 00:30:05,136 –> 00:30:08,105 THEY’RE WORTH CONSIDERABLY MORE
557 00:30:06,537 –> 00:30:08,305 THAN THE MARKET THINKS THEY’RE
558 00:30:08,172 –> 00:30:10,641 WORTH.
559 00:30:08,372 –> 00:30:10,841 SO THERE’S A MARGIN OF SAFETY
560 00:30:10,708 –> 00:30:12,109 THERE.
561 00:30:10,908 –> 00:30:13,377 THEN THINK ABOUT THE DIFFICULTY
562 00:30:12,176 –> 00:30:15,746 OF ACTUALLY BUYING THINGS THAT
563 00:30:13,444 –> 00:30:17,982 ARE UNPOPULAR, THAT EVERYONE
564 00:30:15,813 –> 00:30:20,651 ELSE THINKS ARE UNDER VALUED –
565 00:30:18,049 –> 00:30:21,986 THAT EVERYONE ELSE THINKS ARE
566 00:30:20,718 –> 00:30:22,653 ACTUALLY CHEAP BECAUSE THEY
567 00:30:22,053 –> 00:30:25,222 DESERVE TO BE CHEAP.
568 00:30:22,720 –> 00:30:26,290 I THINK THERE’S A TREMENDOUS
569 00:30:25,289 –> 00:30:27,825 PSYCHOLOGICAL PRESSURE.
570 00:30:26,357 –> 00:30:30,127 WHEN I LOOK AT CHARLIE AND
571 00:30:27,892 –> 00:30:31,529 WARREN, I THINK ONE OF THEIR
572 00:30:30,194 –> 00:30:34,065 GREATEST ADVANTAGES IS JUST THAT
573 00:30:31,596 –> 00:30:35,699 THEY’RE ENTIRELY UNEMOTIONAL.
574 00:30:34,132 –> 00:30:37,068 THEY’RE NOT REALLY SUCKED UP BY
575 00:30:35,766 –> 00:30:38,469 THE EMOTIONS OF THE CROWD.
576 00:30:37,135 –> 00:30:40,137 WHEN I WENT TO INTERVIEW CHARLIE
577 00:30:38,536 –> 00:30:42,106 I SAID TO HIM DURING THE MARKET
578 00:30:40,204 –> 00:30:43,974 CRASH IN 2009 WHEN YOU WERE
579 00:30:42,173 –> 00:30:46,543 BUYING THINGS LIKE WELLS FARGO
580 00:30:44,041 –> 00:30:48,612 AT THE BOTTOM TICK OF THE CRASH
581 00:30:46,610 –> 00:30:51,983 IN MARCH 2009, DID YOU FEEL
582 00:30:48,679 –> 00:30:52,350 THESE EMOTIONS, LIKE FEAR,
583 00:30:52,050 –> 00:30:54,418 ANXIETY, WORRY?
584 00:30:52,417 –> 00:30:55,152 HE SAID, NO, I JUST DIDN’T FEEL
585 00:30:54,485 –> 00:30:57,187 THEM AT ALL.
586 00:30:55,219 –> 00:30:59,356 I SAID, DOES WARREN FEEL IT?
587 00:30:57,254 –> 00:31:00,157 HE SAID, NO, HE’S WIRED EXACTLY
588 00:30:59,423 –> 00:31:05,896 THE SAME WAY.
589 00:31:00,224 –> 00:31:07,765 SO I THINK THERE’S A TREMENDOUS
590 00:31:05,963 –> 00:31:13,170 TEMPERAMENTAL ADVANTAGE, WHICH
591 00:31:07,832 –> 00:31:15,406 IS BECAUSE THEY DON’T FEEL THEM
592 00:31:13,237 –> 00:31:17,241 AND EVERYONE IS SAYING, I CAN’T
593 00:31:15,473 –> 00:31:19,110 BELIEVE THEY HAVE $145 BILLION
594 00:31:17,308 –> 00:31:20,211 IN CASH AND THEY’RE NOT DOING
595 00:31:19,177 –> 00:31:21,178 ANYTHING, WHY DON’T THEY DO
596 00:31:20,278 –> 00:31:23,314 SOMETHING?
597 00:31:21,245 –> 00:31:24,482 THEY’RE JUST SUBLIMELY
598 00:31:23,381 –> 00:31:25,549 INDIFFERENT TO THE CRIES FROM
599 00:31:24,549 –> 00:31:27,385 THE CROWD.
600 00:31:25,616 –> 00:31:28,719 WARREN JUST SAID, WE’RE NOT PAID
601 00:31:27,452 –> 00:31:29,520 FOR ACTIVITY, WE’RE PAID FOR
602 00:31:28,786 –> 00:31:32,022 BEING RIGHT.
603 00:31:29,587 –> 00:31:33,657
AND YET TO ANDY’S POINT,
604 00:31:32,089 –> 00:31:35,426 EASIER SAID THAN DONE, TO BREAK
605 00:31:33,724 –> 00:31:36,460 AWAY FROM ALL THE NOISE THAT’S
606 00:31:35,493 –> 00:31:38,629 OUT THERE.
607 00:31:36,527 –> 00:31:39,997 THE PRINCIPLE – THE GUIDING
608 00:31:38,696 –> 00:31:41,899 PRINCIPLES WHEN YOU THINK ABOUT
609 00:31:40,064 –> 00:31:45,102 WARREN BUFFETT AND CHARLIE
610 00:31:41,966 –> 00:31:45,436 MUNGER, EXTREME PATIENCE AND
611 00:31:45,169 –> 00:31:47,371 SELECTIVENESS.
612 00:31:45,502 –> 00:31:49,674 HOW DO INVESTORS AT HOME APPLY
613 00:31:47,438 –> 00:31:53,077 THAT THOUGH TO THEIR PORTFOLIO?
614 00:31:49,741 –> 00:31:54,278
CHARLIE HAS THIS BEAUTIFUL
615 00:31:53,144 –> 00:31:54,545 IMAGE THAT I TAKE VERY
616 00:31:54,344 –> 00:31:57,014 SERIOUSLY.
617 00:31:54,611 –> 00:31:58,783 HE SAYS, YOU SHOULD BE LIKE A
618 00:31:57,081 –> 00:32:00,451 SPEAR FISHERMAN.
619 00:31:58,850 –> 00:32:01,652 YOU SHOULD BE STANDING BY THE
620 00:32:00,518 –> 00:32:04,155 SIDE OF THE STREAM MOST OF THE
621 00:32:01,719 –> 00:32:08,492 TIME DOING ABSOLUTELY NOTHING.
622 00:32:04,222 –> 00:32:10,361 ONCE IN A WHILE A FAT, JUICY
623 00:32:08,559 –> 00:32:10,528 SALMON COMES BY AND YOU SPEAR
624 00:32:10,428 –> 00:32:12,963 IT.
625 00:32:10,594 –> 00:32:14,765 THEN IT MAY BE FOR THE NEXT SIX
626 00:32:13,030 –> 00:32:21,705 MONTHS NOTHING COMES ALONG.
627 00:32:14,832 –> 00:32:22,940 ONE OF THE GREAT TAKE AWAYS IS
628 00:32:21,772 –> 00:32:24,842 IT DOESN’T ALWAYS HELP YOU.
629 00:32:23,007 –> 00:32:26,276 IF PRICE IS BEING PRICED IN A
630 00:32:24,909 –> 00:32:27,678 WAY THAT IS NOT PARTICULARLY
631 00:32:26,343 –> 00:32:29,246 ATTRACTIVE WHICH IS GENERALLY
632 00:32:27,745 –> 00:32:31,015 SPEAKING THE CASE AT THE MOMENT,
633 00:32:29,313 –> 00:32:31,615 YOU WANT TO TREAD WITH EXTREME
634 00:32:31,081 –> 00:32:33,384 CAUTION.
635 00:32:31,682 –> 00:32:34,118 THEN AT THE MOMENTS WHERE
636 00:32:33,451 –> 00:32:35,586 SUDDENLY THE BIPARTISAN MARKET
637 00:32:34,185 –> 00:32:39,923 GOES THE OTHER DIRECTION, IS
638 00:32:35,653 –> 00:32:42,793 GOING NUTS, IS PRESENTING YOU
639 00:32:39,990 –> 00:32:44,094 WITH LOTS OF FAT, JUICY SALMONS,
640 00:32:42,860 –> 00:32:45,863 THAT’S WHEN YOU WANT TO STRIKE
641 00:32:44,161 –> 00:32:46,197 WITH WHAT CHARLIE CALLS
642 00:32:45,930 –> 00:32:48,666 GUMPTION.
643 00:32:46,264 –> 00:32:48,966 SET YOURSELF UP COUNTER
644 00:32:48,733 –> 00:32:50,834 CULTURALLY.
645 00:32:49,033 –> 00:32:53,104 WHILE EVERYONE ELSE IS
646 00:32:50,901 –> 00:32:55,072 HYPERACTIVE SAYING I MUST DO
647 00:32:53,171 –> 00:32:56,907 SOMETHING, BITCOIN IS SURGING,
648 00:32:55,139 –> 00:33:00,444 TESLA IS SURGING, I MUST ACT.
649 00:32:56,974 –> 00:33:01,946 HERE ARE CHARLIE AND WARREN
650 00:33:00,511 –> 00:33:04,081 ACTING CALMLY.
651 00:33:02,013 –> 00:33:07,417 SPEAR FISHERMEN, HAPPY TO WAIT
652 00:33:04,148 –> 00:33:08,819 BY THE STREAM, FISH AND TWIDDLE
653 00:33:07,484 –> 00:33:11,055 THEIR THUMBS.
654 00:33:08,886 –> 00:33:13,691 THEY’VE SET THEIR LINES UP IN A
655 00:33:11,122 –> 00:33:15,259 WAY AS HEROICALLY INACTIVE.
656 00:33:13,758 –> 00:33:16,994 THEY’RE PLAYING BRIDGE, READING
657 00:33:15,326 –> 00:33:18,429 FOR HOURS A DAY, THEY’RE
658 00:33:17,061 –> 00:33:20,664 FISHING, GOLFING, CHATTING WITH
659 00:33:18,496 –> 00:33:23,034 FRIENDS AND JUST READING TONS OF
660 00:33:20,731 –> 00:33:23,334 ANNUAL REPORTS AND TONS OF
661 00:33:23,101 –> 00:33:24,968 BIOGRAPHIES.
662 00:33:23,401 –> 00:33:26,971 SO I THINK YOU WANT TO ACTUALLY
663 00:33:25,035 –> 00:33:29,206 TRY TO STRUCTURE A LIFE IN A WAY
664 00:33:27,038 –> 00:33:32,677 THAT ENABLES YOU TO BE MUCH MORE
665 00:33:29,273 –> 00:33:35,012 PATIENT SO THAT YOU’RE NOT
666 00:33:32,743 –> 00:33:35,913 GETTING SUCKED INTO THE HYPER
667 00:33:35,079 –> 00:33:37,648 ACTIVITY OF THE MARKET.
668 00:33:35,980 –> 00:33:40,785
I LIKE THAT IMAGE THAT YOU
669 00:33:37,715 –> 00:33:42,086 JUST PUT OUT THERE, WILLIAM, TWO
670 00:33:40,852 –> 00:33:42,887 FISHERMEN SPEAR FISHING ON THE
671 00:33:42,153 –> 00:33:44,121 SIDE OF THE RIVER.
672 00:33:42,954 –> 00:33:45,456 BUT YOU TALK ABOUT THE TWO OF
673 00:33:44,188 –> 00:33:47,491 THEM TOGETHER, HOW IMPORTANT IS
674 00:33:45,523 –> 00:33:49,259 THAT PARTNERSHIP, DO YOU THINK?
675 00:33:47,558 –> 00:33:51,062 JULIA LaROCHE IS TALKING ABOUT
676 00:33:49,326 –> 00:33:53,397 THEM BEING REUNITED THIS YEAR.
677 00:33:51,129 –> 00:33:56,500 HOW IMPORTANT IS THAT TO ACHIEVE
678 00:33:53,464 –> 00:33:59,303 INVESTING RESULTS, TO HAVE
679 00:33:56,567 –> 00:34:06,010 SOMEONE TO BOUNCE SOMETHING OFF
680 00:33:59,370 –> 00:34:06,610 OF LIKE THAT.
681 00:34:06,077 –> 00:34:08,612 CHARLIE TALKS ABOUT HAPPENING
682 00:34:06,677 –> 00:34:10,347 OUT WITH THE EMINENT DEAD.
683 00:34:08,679 –> 00:34:10,981 ONE THAT HE HANGS OUT WITH IS
684 00:34:10,414 –> 00:34:12,382 DARWIN.
685 00:34:11,048 –> 00:34:14,318 WHAT HE LEARNED FROM DARWIN IS
686 00:34:12,449 –> 00:34:14,585 DARWIN WAS SEEKING DISCONFIRMING
687 00:34:14,385 –> 00:34:16,887 EVIDENCE.
688 00:34:14,652 –> 00:34:18,489 HE WASN’T TRYING TO SUPPORT HIS
689 00:34:16,954 –> 00:34:19,457 RELIGIOUS VIEWS WITH HIS
690 00:34:18,556 –> 00:34:21,592 INVESTIGATIONS INTO EVOLUTION.
691 00:34:19,524 –> 00:34:23,694 HE WAS TRYING TO DESTROY HIS OWN
692 00:34:21,659 –> 00:34:24,028 MOST CHERISHED BELIEFS IN A
693 00:34:23,761 –> 00:34:26,397 SENSE.
694 00:34:24,095 –> 00:34:27,531 I THINK PART OF WHAT THIS
695 00:34:26,464 –> 00:34:29,233 RELATIONSHIP BETWEEN CHARLIE AND
696 00:34:27,598 –> 00:34:31,368 WARREN ENABLES THEM TO DO IS TO
697 00:34:29,300 –> 00:34:33,837 TEST EACH OTHER’S BELIEFS.
698 00:34:31,435 –> 00:34:36,707 WARREN FAMOUSLY HAS DESCRIBED
699 00:34:33,904 –> 00:34:37,975 CHARLIE AS THE A BOMB MIN NABL
700 00:34:36,774 –> 00:34:39,510 NO MAN.
701 00:34:38,042 –> 00:34:41,011 TO HAVE THIS MECHANISM,
702 00:34:39,577 –> 00:34:43,648 STRUCTURE WHERE SOMEBODY IS
703 00:34:41,078 –> 00:34:44,314 CHALLENGING YOUR BELIEFS AND IS
704 00:34:43,714 –> 00:34:48,185 SMART ENOUGH TO BE ABLE TO
705 00:34:44,381 –> 00:34:50,121 CHALLENGE YOU, I THINK THAT’S
706 00:34:48,252 –> 00:34:54,625 HUGELY POWERFUL.
707 00:34:50,188 –> 00:34:54,925 WE’RE NOT GOING TO HAVE THAT
708 00:34:54,692 –> 00:34:57,027 OPPORTUNITY.
709 00:34:54,992 –> 00:34:58,729 WE CAN BE CONSTANTLY SEARCHING
710 00:34:57,094 –> 00:35:01,698 FOR DISCONFIRMING INFORMATION.
711 00:34:58,796 –> 00:35:04,868 IF YOU’RE POLITICALLY LIBERAL
712 00:35:01,765 –> 00:35:06,470 YOU READ “THE WALL STREET
713 00:35:04,935 –> 00:35:09,340 JOURNAL” OP ED PAGE.
714 00:35:06,537 –> 00:35:09,840 THIS IS SOMETHING THAT CHARLIE
715 00:35:09,406 –> 00:35:11,342 VERY CONSCIOUSLY DOES.
716 00:35:09,907 –> 00:35:13,010 I THINK IT’S INTERESTING THAT
717 00:35:11,409 –> 00:35:14,645 YOU HAVE WARREN AS A DEMOCRAT,
718 00:35:13,077 –> 00:35:16,647 CHARLIE AS A REPUBLICAN, THEY’VE
719 00:35:14,712 –> 00:35:17,781 HAD THIS KIND OF WONDERFUL
720 00:35:16,714 –> 00:35:19,083 RELATIONSHIP WHERE THEY’RE
721 00:35:17,848 –> 00:35:20,251 ACTUALLY SEEKING OUT VIEWS THAT
722 00:35:19,150 –> 00:35:22,085 ARE DIFFERENT FROM THEIR OWN AND
723 00:35:20,318 –> 00:35:23,987 THEN AT THE SAME TIME I THINK
724 00:35:22,152 –> 00:35:28,392 TREATING EACH OTHER WITH
725 00:35:24,054 –> 00:35:30,227 TREMENDOUS DECENCY AND KINDNESS.
726 00:35:28,459 –> 00:35:31,428 I THINK THAT’S SOMETHING WE’RE
727 00:35:30,294 –> 00:35:33,664 ALL EXCITED ABOUT.
728 00:35:31,495 –> 00:35:34,331 IT’S IN A SENSE THE REUNION OF
729 00:35:33,731 –> 00:35:36,400 THIS ODD COUPLE.
730 00:35:34,398 –> 00:35:39,436 ON THE OCCASIONS THAT I’VE BEEN
731 00:35:36,467 –> 00:35:40,871 TO OMAHA FOR THE BERKSHIRE
732 00:35:39,503 –> 00:35:42,472 MEETING, ONE OF THE MOST JOYOUS
733 00:35:40,938 –> 00:35:43,974 AND MEMORABLE THINGS, IT’S
734 00:35:42,539 –> 00:35:46,143 ALMOST LIKE A COMEDY ACT.
735 00:35:44,041 –> 00:35:50,447 IT’S AS IF YOU’RE WATCHING
736 00:35:46,210 –> 00:35:51,649 WALTER MATTOW AND JACK LEMON
737 00:35:50,514 –> 00:35:53,350 WISE CRACKING TOGETHER.
738 00:35:51,716 –> 00:35:58,422 THERE’S SOMETHING ABOUT THAT
739 00:35:53,417 –> 00:36:03,394 PARTNERSHIP AND THEN THE FACT
740 00:35:58,489 –> 00:36:04,861 THEY TREAT THEM.
741 00:36:03,461 –> 00:36:06,430 IT’S ONE OF THE REASONS WE’VE
742 00:36:04,928 –> 00:36:08,966 ALL BEEN COMING BACK YEAR AFTER
743 00:36:06,497 –> 00:36:10,501 YEAR AND WHY WE’RE ALL HAPPY TO
744 00:36:09,032 –> 00:36:12,903 SEE CHARLIE BACK THIS YEAR AFTER
745 00:36:10,568 –> 00:36:15,906 BEING ABSENT LAST YEAR.
746 00:36:12,970 –> 00:36:17,942
WILLIAM GREENE, AUTHOR OF
747 00:36:15,973 –> 00:36:19,443 “RICHER, WEISER, HAPPIER.”
748 00:36:18,008 –> 00:36:21,645 THANK YOU FOR COMING ON.
749 00:36:19,510 –> 00:36:23,180 I SHOULD MENTION WARREN BUFFETT
750 00:36:21,712 –> 00:36:24,615 HAS JUST COME INTO THE ROOM.
751 00:36:23,247 –> 00:36:26,684 THEY’RE DOING SOME TESTS HERE.
752 00:36:24,682 –> 00:36:28,719 WE’RE HALF AN HOUR AWAY FROM THE
753 00:36:26,751 –> 00:36:30,487 BEGINNING OF THE ANNUAL MEETING.
754 00:36:28,786 –> 00:36:31,689 IN THE MEANTIME, I WANT TO TALK
755 00:36:30,554 –> 00:36:34,391 ABOUT CHOCOLATE.
756 00:36:31,756 –> 00:36:36,527 IT IS THE ULTIMATE COMFORT FOOD.
757 00:36:34,458 –> 00:36:38,462 SALES OF CHOCOLATE WAY, WAY UP.
758 00:36:36,594 –> 00:36:40,564 CANDY SALES HIT A RECORD $44
759 00:36:38,529 –> 00:36:45,302 BILLION LAST YEAR.
760 00:36:40,631 –> 00:36:46,504 THAT’S GREAT FOR C’S CANDIES AND
761 00:36:45,369 –> 00:36:48,139 THE CEO PAT EGAN JOINS US NEXT
762 00:36:46,570 –> 00:36:48,139 HERE.
763 00:39:00,004 –> 00:39:02,739
I’M PLEASED TO BRING TO YOU
764 00:39:01,672 –> 00:39:05,008 ALL THIS CONVERSATION WITH ONE
765 00:39:02,806 –> 00:39:11,515 OF OUR VERY FAVORITE BOOTHS AT
766 00:39:05,075 –> 00:39:11,748 THE BERKSHIRE HATHAWAY ANNUAL
767 00:39:11,582 –> 00:39:15,352 MEETING.
768 00:39:11,815 –> 00:39:17,454 THAT IS SEE’S CANDY.
769 00:39:15,419 –> 00:39:17,821 PAT, SO GREAT TO HAVE YOU JOIN
770 00:39:17,521 –> 00:39:19,089 US.
771 00:39:17,888 –> 00:39:21,392 100th ANNIVERSARY.
772 00:39:19,156 –> 00:39:23,794 I WISH WE COULD BE IN PERSON.
773 00:39:21,459 –> 00:39:23,994
I WISH I COULD BE THERE TOO,
774 00:39:23,861 –> 00:39:24,928 JULIA.
775 00:39:24,061 –> 00:39:26,229 THANKS FOR THE OPPORTUNITY.
776 00:39:24,995 –> 00:39:27,631 WE’RE LOOKING FORWARD TO NEXT
777 00:39:26,296 –> 00:39:29,266 YEAR COMING BACK.
778 00:39:27,698 –> 00:39:29,566 OMAHA IS ALWAYS A BIG DEAL FOR
779 00:39:29,333 –> 00:39:31,268 US.
780 00:39:29,633 –> 00:39:32,336 WE’RE GOING TO MISS IT.
781 00:39:31,335 –> 00:39:32,536 HOPEFULLY WE’RE BACK THERE NEXT
782 00:39:32,403 –> 00:39:33,770 YEAR.
783 00:39:32,603 –> 00:39:34,538
CERTAINLY HOPE WE’RE BACK
784 00:39:33,837 –> 00:39:37,274 NEXT YEAR.
785 00:39:34,605 –> 00:39:40,444 WE’RE SO USED TO SEEING TONS OF
786 00:39:37,340 –> 00:39:43,046 CANDY AT THAT BOOTH IN OMAHA.
787 00:39:40,511 –> 00:39:44,014 I THINK A LOT OF FOLKS ARE
788 00:39:43,113 –> 00:39:45,182 INTERESTED, PAT.
789 00:39:44,081 –> 00:39:45,916 HOW HAS BUSINESS BEEN FOR YOU
790 00:39:45,248 –> 00:39:48,118 ALL IN THE LAST YEAR?
791 00:39:45,983 –> 00:39:49,453
WELL, I LIKE TO SAY THE LAST
792 00:39:48,185 –> 00:39:50,354 YEAR’S BEEN THE LONGEST DECADE
793 00:39:49,520 –> 00:39:51,922 OF MY LIFE.
794 00:39:50,421 –> 00:39:54,057 WE’VE BEEN THROUGH A LOT.
795 00:39:51,989 –> 00:39:55,225 LAST YEAR IT’S A TALE OF A
796 00:39:54,124 –> 00:39:56,994 COUPLE OF DIFFERENT QUARTERS.
797 00:39:55,291 –> 00:39:57,294 THE FIRST QUARTER WAS
798 00:39:57,061 –> 00:39:58,929 TREMENDOUS.
799 00:39:57,361 –> 00:40:00,897 WE STARTED OFF REALLY HOT AT THE
800 00:39:58,996 –> 00:40:02,533 BEGINNING OF 2020 AND WE ENDED
801 00:40:00,964 –> 00:40:04,368 PRETTY GOOD.
802 00:40:02,600 –> 00:40:05,669 THE SECOND AND THIRD QUARTERS WE
803 00:40:04,435 –> 00:40:07,471 ESSENTIALLY IN THE MIDDLE OF
804 00:40:05,736 –> 00:40:09,306 MARCH WHEN THIS FIRST REALLY
805 00:40:07,538 –> 00:40:11,141 HIT, WE SHUT DOWN ALL OF OUR
806 00:40:09,373 –> 00:40:14,011 STORES IN THE SPAN OF FIVE DAYS.
807 00:40:11,208 –> 00:40:15,745 SO ABOUT 245 STORES WE CLOSED IN
808 00:40:14,078 –> 00:40:17,414 A MATTER OF DAYS AND THEN ABOUT
809 00:40:15,812 –> 00:40:19,950 A WEEK AND A HALF LATER WE
810 00:40:17,481 –> 00:40:21,552 CLOSED OUR eCOMMERCE FULFILLMENT
811 00:40:20,017 –> 00:40:21,852 CENTER DOWN IN SOUTHERN
812 00:40:21,619 –> 00:40:24,921 CALIFORNIA.
813 00:40:21,919 –> 00:40:26,089 FOR A PERIOD OF TIME THERE WE
814 00:40:24,988 –> 00:40:30,560 ESSENTIALLY COMPLETELY STOPPED
815 00:40:26,156 –> 00:40:32,029 AND THE REASON FOR IT WAS WE
816 00:40:30,627 –> 00:40:33,297 OPERATE AND ARE HEADQUARTERED IN
817 00:40:32,095 –> 00:40:35,299 THE BAY AREA.
818 00:40:33,364 –> 00:40:35,733 THAT WAS ONE OF THE FIRST ORDERS
819 00:40:35,366 –> 00:40:37,767 ISSUED NATIONALLY.
820 00:40:35,799 –> 00:40:39,569 AND SO WE RESPECTED AND STOPPED
821 00:40:37,834 –> 00:40:41,805 AND THEN WE JUST – WE WENT
822 00:40:39,636 –> 00:40:43,473 THROUGH ALL OF THE STATES THAT
823 00:40:41,872 –> 00:40:44,208 WERE SUCCESSIVELY THAT WEEK
824 00:40:43,540 –> 00:40:45,675 SHUTTING DOWN.
825 00:40:44,275 –> 00:40:47,477 SO FROM THAT POINT FORWARD WHAT
826 00:40:45,742 –> 00:40:49,679 WE DID WAS WE JUST SAID WE’RE
827 00:40:47,544 –> 00:40:51,381 NOT GOING TO REOPEN STORES OR
828 00:40:49,746 –> 00:40:53,216 REOPEN OUR PLANTS UNTIL WE CAN
829 00:40:51,448 –> 00:40:54,885 CREATE A SAFE OPERATING
830 00:40:53,283 –> 00:40:55,152 ENVIRONMENT FOR ALL OF OUR
831 00:40:54,952 –> 00:40:56,920 EMPLOYEES.
832 00:40:55,219 –> 00:40:58,522 THAT TOOK A WHILE AND BY THE
833 00:40:56,987 –> 00:41:00,790 TIME WE RESTORED AT THE END OF
834 00:40:58,588 –> 00:41:02,225 THE SUMMER WE SAW CUSTOMERS
835 00:41:00,857 –> 00:41:05,562 COMING BACK IN, BUT FOR THAT
836 00:41:02,292 –> 00:41:05,795 PERIOD OF TIME, IT WAS PRETTY
837 00:41:05,629 –> 00:41:07,364 ROUGH.
838 00:41:05,862 –> 00:41:08,832
HOW ABOUT RIGHT NOW, HOW ARE
839 00:41:07,431 –> 00:41:11,401 THINGS FOR YOU ALL?
840 00:41:08,899 –> 00:41:13,703 HOW ARE YOUR STORE REOPENINGS?
841 00:41:11,468 –> 00:41:16,072 I SUPPOSE YOU’RE PROBABLY DOING
842 00:41:13,770 –> 00:41:19,577 A LOT OF BUSINESS ONLINE.
843 00:41:16,139 –> 00:41:21,678 I KNOW AROUND VALENTINE’S DAY I
844 00:41:19,643 –> 00:41:23,247 WAS LOOKING TO ORDER CANDIES FOR
845 00:41:21,745 –> 00:41:23,580 SOME OF THE SPECIAL FOLKS IN MY
846 00:41:23,314 –> 00:41:24,982 LIFE.
847 00:41:23,647 –> 00:41:26,817 HOW ARE THINGS NOW?
848 00:41:25,049 –> 00:41:27,217
THANK YOU FOR YOUR BUSINESS,
849 00:41:26,884 –> 00:41:28,051 JULIE.
850 00:41:27,284 –> 00:41:29,753 IT’S GREAT.
851 00:41:28,118 –> 00:41:31,421 WE’RE FULLY BACK, I BELIEVE.
852 00:41:29,820 –> 00:41:32,656 WE’VE HAD OUR BEST JANUARY EVER,
853 00:41:31,488 –> 00:41:35,359 OUR BEST FEBRUARY EVER.
854 00:41:32,723 –> 00:41:35,893 WE JUST COMPLETED OUR BEST FIRST
855 00:41:35,426 –> 00:41:38,562 QUARTER EVER.
856 00:41:35,960 –> 00:41:39,997 AS YOU MENTIONED eCOMMERCE, WE
857 00:41:38,629 –> 00:41:43,633 HAD A GREAT GROWTH LAST YEAR.
858 00:41:40,064 –> 00:41:44,768 WE GREW 70% JUST IN LOOKING AT
859 00:41:43,700 –> 00:41:46,336 TOTAL PACKAGES SHIPPED.
860 00:41:44,835 –> 00:41:47,571 WHAT YOU MIGHT EXPECT WOULD BE
861 00:41:46,403 –> 00:41:48,872 THAT WHEN THE STORES REOPENED,
862 00:41:47,638 –> 00:41:49,406 THAT THAT WOULD TRAIL OFF A
863 00:41:48,939 –> 00:41:50,441 LITTLE BIT.
864 00:41:49,473 –> 00:41:54,144 IT HASN’T.
865 00:41:50,507 –> 00:41:55,679 OUR FIRST QUARTER WE WERE UP
866 00:41:54,211 –> 00:41:56,246 160% OVER THE FIRST QUARTER OF
867 00:41:55,746 –> 00:41:58,415 LAST YEAR.
868 00:41:56,313 –> 00:42:00,117 SO WHAT WE’VE SEEN IS THE
869 00:41:58,482 –> 00:42:01,851 TRAFFIC COMING BACK INTO STORES.
870 00:42:00,184 –> 00:42:03,620 IT’S BEEN GRADUAL, BUT WE’RE
871 00:42:01,918 –> 00:42:05,188 ALMOST BACK TO 100%.
872 00:42:03,687 –> 00:42:07,290 OUR eCOMMERCE, WHICH HAS MORE
873 00:42:05,255 –> 00:42:08,625 THAN DOUBLED, HAS ACTUALLY
874 00:42:07,357 –> 00:42:10,393 STAYED AT THAT LEVEL.
875 00:42:08,692 –> 00:42:11,662 WE’RE JUST FINE WITH IT NOT
876 00:42:10,460 –> 00:42:13,764 COMING BACK TO EARTH.
877 00:42:11,729 –> 00:42:16,066 IT CREATES DIFFERENT OPERATIONAL
878 00:42:13,831 –> 00:42:17,334 CHALLENGES BUT WE’VE DEFINITELY
879 00:42:16,133 –> 00:42:22,306 EXPANDED OUR CUSTOMER BASE.
880 00:42:17,401 –> 00:42:24,074
ONE OF THE THINGS THAT’S VERY
881 00:42:22,373 –> 00:42:25,809 INTERESTING ABOUT SEE’S, THE
882 00:42:24,141 –> 00:42:27,978 CUSTOMER SERVICE IN THE STORES.
883 00:42:25,876 –> 00:42:28,312 PAT, YOU COME FROM AN ENERGY
884 00:42:28,045 –> 00:42:29,713 BACKGROUND.
885 00:42:28,378 –> 00:42:32,349 THE LAST TIME WE TALKED TO YOU
886 00:42:29,780 –> 00:42:33,050 WAS AT THE ANNUAL MEETING IN
887 00:42:32,416 –> 00:42:34,451 2019.
888 00:42:33,117 –> 00:42:36,753 YOU WERE A FEW DAYS ON THE JOB,
889 00:42:34,518 –> 00:42:38,121 A COUPLE OF YEARS ON THE JOB.
890 00:42:36,820 –> 00:42:39,990 COMING INTO RETAIL, WHAT HAS
891 00:42:38,188 –> 00:42:42,192 BEEN THE BIGGEST TAKE AWAYS FOR
892 00:42:40,057 –> 00:42:43,293 YOU, SOME OF YOUR BIGGEST
893 00:42:42,259 –> 00:42:43,994 LEARNINGS IN YOUR ROLE?
894 00:42:43,360 –> 00:42:44,828
YEAH.
895 00:42:44,061 –> 00:42:47,497 A COUPLE OF THINGS.
896 00:42:44,895 –> 00:42:48,432 AS YOU MENTIONED, OUR FOCUS ON
897 00:42:47,564 –> 00:42:52,636 CUSTOMER SERVICE.
898 00:42:48,499 –> 00:42:54,504 I FEEL SO FORTUNATE, I PINCH
899 00:42:52,703 –> 00:42:55,472 MYSELF THAT OUR PRODUCTS ARE
900 00:42:54,571 –> 00:42:56,406 TREMENDOUS AND CUSTOMER SERVICE
901 00:42:55,539 –> 00:42:58,475 IS AMAZING.
902 00:42:56,472 –> 00:42:59,643 WE WANT TO MAKE SURE THAT WHEN
903 00:42:58,542 –> 00:43:01,111 CUSTOMERS COME INTO OUR STORE,
904 00:42:59,710 –> 00:43:02,679 THAT THEY LEAVE WITH A SMILE AND
905 00:43:01,178 –> 00:43:03,413 THAT THEY’RE HAPPIER THAN WHEN
906 00:43:02,746 –> 00:43:05,616 THEY STARTED.
907 00:43:03,480 –> 00:43:07,317 I LIKE TO SAY, WE SELL JOY.
908 00:43:05,683 –> 00:43:07,951 MY BACKGROUND IN ENERGY IS A
909 00:43:07,383 –> 00:43:09,186 LITTLE DIFFERENT.
910 00:43:08,018 –> 00:43:11,255 NO DOUBT ABOUT IT.
911 00:43:09,253 –> 00:43:12,656 BUT I LEARNED SO MANY GOOD
912 00:43:11,321 –> 00:43:14,224 LESSONS THERE THAT I HOPE HAVE
913 00:43:12,723 –> 00:43:17,060 SERVED US WELL HERE, AND THAT IS
914 00:43:14,291 –> 00:43:18,495 THAT IT’S NOT EASY TO MAKE AN
915 00:43:17,127 –> 00:43:18,762 ENERGY CUSTOMER HAPPY ALL THE
916 00:43:18,562 –> 00:43:20,097 TIME.
917 00:43:18,829 –> 00:43:22,265 WHEN YOU’RE INTERACTING WITH
918 00:43:20,164 –> 00:43:24,334 THEM, IT’S USUALLY ABOUT A BILL
919 00:43:22,332 –> 00:43:25,669 OR YOU’VE HAD AN OUTAGE.
920 00:43:24,401 –> 00:43:27,203 WE TRY TO MAKE BOTH OF THOSE
921 00:43:25,736 –> 00:43:29,206 THINGS AS MINIMAL AS POSSIBLE,
922 00:43:27,270 –> 00:43:32,042 BUT I REALLY WORK VERY HARD WITH
923 00:43:29,273 –> 00:43:33,677 A GREAT TEAM THERE TO FOCUS ON
924 00:43:32,109 –> 00:43:35,379 WHAT DOES THE CUSTOMER NEED?
925 00:43:33,744 –> 00:43:35,546 I WILL SAY THAT IS THE BERKSHIRE
926 00:43:35,446 –> 00:43:36,813 WAY.
927 00:43:35,612 –> 00:43:38,748 THAT’S PART OF WHAT I’M PROUD
928 00:43:36,880 –> 00:43:41,485 ABOUT AND I CAN SEE THE
929 00:43:38,815 –> 00:43:42,753 TRANSITION FROM ENERGY INTO
930 00:43:41,552 –> 00:43:45,922 CANDY, THE COMMON THREAD IS THAT
931 00:43:42,820 –> 00:43:47,924 WE TAKE CARE OF OUR CUSTOMERS
932 00:43:45,989 –> 00:43:50,127 AND SEE’S HAS DONE IT FOR A
933 00:43:47,991 –> 00:43:50,327 CENTURY AND DONE IT TREMENDOUSLY
934 00:43:50,194 –> 00:43:52,396 WELL.
935 00:43:50,394 –> 00:43:54,330
WARREN BUFFETT’S MANAGEMENT
936 00:43:52,463 –> 00:43:55,331 STYLE, THE HANDS OFF MANAGEMENT
937 00:43:54,397 –> 00:43:56,099 STYLE FOR THE DIFFERENT
938 00:43:55,398 –> 00:43:58,235 PORTFOLIO COMPANIES.
939 00:43:56,166 –> 00:44:00,070 I IMAGINE WHEN WE THINK ABOUT
940 00:43:58,302 –> 00:44:01,371 BUFFETT, HE OFTEN TALKS ABOUT
941 00:44:00,137 –> 00:44:03,073 WANTING TO BE REMEMBERED AS A
942 00:44:01,438 –> 00:44:05,408 TEACHER, WHAT’S BEEN THE MOST
943 00:44:03,140 –> 00:44:06,376 IMPORTANT LESSON YOU’VE LEARNED
944 00:44:05,475 –> 00:44:08,679 FROM WARREN?
945 00:44:06,443 –> 00:44:11,348
INTEGRITY.
946 00:44:08,745 –> 00:44:13,049 I REGULARLY REVIEW HIS QUOTES.
947 00:44:11,415 –> 00:44:15,318 HE’S VERY – YOU’RE RIGHT, HE’S
948 00:44:13,116 –> 00:44:16,920 HANDS OFF, BUT HE’S VERY
949 00:44:15,385 –> 00:44:18,388 EFFICIENT AND VERY EFFECTIVE IN
950 00:44:16,987 –> 00:44:20,223 CONVEYING THE MESSAGE, WHICH IS
951 00:44:18,455 –> 00:44:21,258 DO THE RIGHT THING.
952 00:44:20,290 –> 00:44:22,959 TAKE CARE OF THE CUSTOMER.
953 00:44:21,324 –> 00:44:23,894 TAKE CARE OF YOUR EMPLOYEES AND
954 00:44:23,026 –> 00:44:27,163 THE RESULTS WILL FOLLOW.
955 00:44:23,961 –> 00:44:28,865 AND I HAD THE GREAT FORTUNE OF
956 00:44:27,230 –> 00:44:29,633 WORKING WITH GREG ABEL IN THE
957 00:44:28,932 –> 00:44:32,436 ENERGY BUSINESS.
958 00:44:29,700 –> 00:44:32,636 HE IS VERY MUCH A DEVOTEE OF
959 00:44:32,503 –> 00:44:33,870 THAT.
960 00:44:32,703 –> 00:44:36,039 JUST LIVING UP TO THAT AND
961 00:44:33,937 –> 00:44:37,340 MAKING SURE THAT WE FOLLOW
962 00:44:36,106 –> 00:44:38,442 THROUGH ON THOSE PRINCIPLES IS
963 00:44:37,407 –> 00:44:40,677 FIRST AND FOREMOST.
964 00:44:38,509 –> 00:44:42,879 AND, YOU KNOW, AS A TEACHER, HE
965 00:44:40,744 –> 00:44:45,015 LEADS BY EXAMPLE ALL THE TIME.
966 00:44:42,946 –> 00:44:46,616 HE’S VERY FOCUSED ON GETTING THE
967 00:44:45,082 –> 00:44:47,084 RIGHT OUTCOMES CERTAINLY FOR OUR
968 00:44:46,683 –> 00:44:48,786 CUSTOMERS.
969 00:44:47,151 –> 00:44:51,221 I THINK HE’S A GREAT CITIZEN OF
970 00:44:48,852 –> 00:44:52,556 THE COUNTRY AND THE WORLD AND A
971 00:44:51,288 –> 00:44:54,224 GREAT LEADER IN THAT REGARD.
972 00:44:52,622 –> 00:44:55,225 KIND OF BOILING IT DOWN TO THE
973 00:44:54,291 –> 00:44:56,526 SIMPLE WHAT ARE THE RESULTS AND
974 00:44:55,292 –> 00:44:59,496 HOW ARE YOU GETTING THERE
975 00:44:56,593 –> 00:45:00,630 WITHOUT GETTING TOO CUTE ABOUT
976 00:44:59,563 –> 00:45:01,865 THINGS AND MAKING SURE YOU’RE
977 00:45:00,697 –> 00:45:07,404 FOCUSED ON THE RIGHT THINGS.
978 00:45:01,932 –> 00:45:08,238
WELL, PAT EGAN, CEO OF SEE’S
979 00:45:07,471 –> 00:45:10,207 CANDIES, THANK YOU FOR JOINING
980 00:45:08,305 –> 00:45:10,774 US AHEAD OF THE SHAREHOLDERS
981 00:45:10,274 –> 00:45:14,478 MEETING.
982 00:45:10,841 –> 00:45:14,711 HOPEFULLY WE SEE YOU IN OMAHA IN
983 00:45:14,545 –> 00:45:15,345 2022.
984 00:45:14,778 –> 00:45:16,413 THANK YOU AGAIN.
985 00:45:15,412 –> 00:45:17,180
I LOOK FORWARD TO IT.
986 00:45:16,480 –> 00:45:19,215 THANK YOU VERY MUCH.
987 00:45:17,247 –> 00:45:21,818
WE HEAR THAT IN ADDITION TO
988 00:45:19,282 –> 00:45:24,187 THAT ICONIC PEANUT BRITTLE,
989 00:45:21,885 –> 00:45:26,456 WARREN AND CHARLIE WILL HAVE
990 00:45:24,254 –> 00:45:27,590 SEE’S NEWEST PRODUCT CHOCOLATE
991 00:45:26,523 –> 00:45:30,827 COVERED COFFEE BEANS.
992 00:45:27,657 –> 00:45:32,796
UP NEXT, RON OLSON JOINS
993 00:45:30,894 –> 00:45:33,296 ANDY SERWER WITH HIS PREVIEW OF
994 00:45:32,863 –> 00:45:36,867 THE BIG ANNUAL MEETING.
995 00:45:33,363 –> 00:45:36,867 STAY WITH US.
996 00:47:58,842 –> 00:48:01,411
HELLO.
997 00:47:59,776 –> 00:48:03,079 WELCOME BACK TO THE BERKSHIRE
998 00:48:01,478 –> 00:48:04,514 HATHAWAY ANNUAL SHAREHOLDERS
999 00:48:03,146 –> 00:48:07,483 MEETING 2021.
1000 00:48:04,581 –> 00:48:10,553 I’M ANDY SERWER.
1001 00:48:07,550 –> 00:48:11,888 I’M HERE WITH RON OLSEN.
1002 00:48:10,620 –> 00:48:13,223 RON, GREAT TO SEE YOU.
1003 00:48:11,955 –> 00:48:14,557
ANDY, GREAT TO SEE YOU.
1004 00:48:13,290 –> 00:48:16,860 GREAT TO SEE YOU IN LOS ANGELES.
1005 00:48:14,624 –> 00:48:19,095
THANK YOU, RON.
1006 00:48:16,927 –> 00:48:21,164
I – MY RECOLLECTION IS WE
1007 00:48:19,162 –> 00:48:23,399 USUALLY ENCOUNTER EACH OTHER ON
1008 00:48:21,231 –> 00:48:24,334 AN AIRPLANE HEADED TO OMAHA AT
1009 00:48:23,466 –> 00:48:24,868 THIS TIME OF YEAR.
1010 00:48:24,401 –> 00:48:26,536
THAT’S RIGHT.
1011 00:48:24,935 –> 00:48:28,939 THINGS ARE VERY DIFFERENT.
1012 00:48:26,603 –> 00:48:30,473 LET’S JUMP OFF AT THIS POINT.
1013 00:48:29,006 –> 00:48:31,942 WHAT ARE YOU LOOKING FOR THIS
1014 00:48:30,540 –> 00:48:32,242 YEAR THAT’S DIFFERENT FROM PRIOR
1015 00:48:32,009 –> 00:48:34,711 YEARS.
1016 00:48:32,309 –> 00:48:36,179 WE HAVE A DIFFERENT GEOGRAPHY.
1017 00:48:34,778 –> 00:48:37,948
LET ME TELL YOU WHAT I’M
1018 00:48:36,246 –> 00:48:38,915 LOOKING FOR THAT’S THE SAME, THE
1019 00:48:38,015 –> 00:48:41,385 CHARLIE AND WARREN SHOW.
1020 00:48:38,982 –> 00:48:44,621 TO ME, IT’S IRREPLACEABLE AND IT
1021 00:48:41,451 –> 00:48:45,255 IS THE DELIGHT AND MOST
1022 00:48:44,688 –> 00:48:48,991 MEANINGFUL PART OF THE MEETING.
1023 00:48:45,322 –> 00:48:51,494 IN ADDITION, YOU KNOW, IT’S NICE
1024 00:48:49,058 –> 00:48:53,263 TO HAVE AN EXCUSE TO BE IN
1025 00:48:51,561 –> 00:48:53,630 OMAHA – I MEAN, BE IN LOS
1026 00:48:53,330 –> 00:48:54,898 ANGELES.
1027 00:48:53,697 –> 00:48:59,002 I ALSO LOOK FORWARD TO RETURNING
1028 00:48:54,964 –> 00:49:01,304 TO OMAHA NEXT YEAR.
1029 00:48:59,069 –> 00:49:03,106 HAVING ALL THE PEOPLE AROUND AND
1030 00:49:01,371 –> 00:49:05,041 THE FUN THAT WE DO, THESE
1031 00:49:03,173 –> 00:49:06,309 VIRTUAL THINGS ARE A GOOD
1032 00:49:05,108 –> 00:49:06,843 SUBSTITUTE BUT NOT AS MUCH FUN.
1033 00:49:06,376 –> 00:49:09,379
RIGHT.
1034 00:49:06,910 –> 00:49:09,813 SO THIS YEAR IS A BIT OF A
1035 00:49:09,446 –> 00:49:10,913 HYBRID.
1036 00:49:09,880 –> 00:49:11,247 NO SHAREHOLDERS, BUT WE DO
1037 00:49:10,980 –> 00:49:13,583 HAVE –
1038 00:49:11,314 –> 00:49:13,917
WELL, A FEW OF US ARE
1039 00:49:13,650 –> 00:49:14,284 SHAREHOLDERS.
1040 00:49:13,983 –> 00:49:17,053
THAT’S RIGHT.
1041 00:49:14,350 –> 00:49:18,121 THE DIRECTORS ARE SHAREHOLDERS.
1042 00:49:17,120 –> 00:49:19,455 BASICALLY THIS ROOM RIGHT HERE
1043 00:49:18,188 –> 00:49:20,223 IS GOING TO HAVE THE DIRECTORS
1044 00:49:19,522 –> 00:49:21,558 IN IT.
1045 00:49:20,290 –> 00:49:23,259 YOU CAN SEE THE STAGE, AS IT
1046 00:49:21,625 –> 00:49:26,329 WERE, IS UP THERE WHERE WARREN
1047 00:49:23,326 –> 00:49:27,563 AND CHARLIE AND I CAN SEE GREG
1048 00:49:26,396 –> 00:49:29,599 ABEL IS ALREADY UP THERE.
1049 00:49:27,630 –> 00:49:32,068
GREG IS THERE, AJIT WILL BE
1050 00:49:29,666 –> 00:49:33,503 THERE AND WARREN AND CHARLIE.
1051 00:49:32,135 –> 00:49:34,971 THEY’VE GOT A BANK OF CAMERAS IN
1052 00:49:33,570 –> 00:49:36,906 FRONT OF THEM AND THERE’S A
1053 00:49:35,038 –> 00:49:40,343 PLACE WHERE BECKY QUICK’S GOING
1054 00:49:36,973 –> 00:49:44,080 TO BE SITTING OFF SCREEN
1055 00:49:40,410 –> 00:49:47,917 PROBABLY BUT, YOU KNOW, IT’S –
1056 00:49:44,147 –> 00:49:51,788 IT’S I THINK WORKED OUT VERY,
1057 00:49:47,984 –> 00:49:53,156 VERY WELL.
1058 00:49:51,855 –> 00:49:53,756 THE COMPANY JUST ANNOUNCED
1059 00:49:53,223 –> 00:49:55,024 EARNINGS THIS MORNING.
1060 00:49:53,823 –> 00:49:57,894 WHAT DO YOU MAKE OF THOSE AND
1061 00:49:55,091 –> 00:49:59,029 WHERE IS THE COMPANY GOING?
1062 00:49:57,961 –> 00:50:00,663
UP.
1063 00:49:59,096 –> 00:50:03,066 THE BIG COMPANIES THAT WARREN
1064 00:50:00,730 –> 00:50:05,668 FEATURES IN HIS LETTER EACH
1065 00:50:03,133 –> 00:50:07,437 YEAR, YOU KNOW, ENERGY COMPANY,
1066 00:50:05,735 –> 00:50:10,106 INSURANCE BUSINESSES AND SO ON,
1067 00:50:07,504 –> 00:50:13,410 I MEAN, THEY’RE DOING
1068 00:50:10,173 –> 00:50:14,811 SENSATIONAL, JUST SENSATIONAL.
1069 00:50:13,477 –> 00:50:17,914 WE HAVE EVERY REASON TO BELIEVE
1070 00:50:14,878 –> 00:50:18,214 THAT THAT CLIMB IS GOING TO
1071 00:50:17,981 –> 00:50:19,549 CONTINUE.
1072 00:50:18,281 –> 00:50:21,384 BY AND LARGE INSURANCE
1073 00:50:19,616 –> 00:50:23,954 THROUGHOUT THE PANDEMIC PERIOD
1074 00:50:21,451 –> 00:50:27,256 HAS DONE VERY, VERY WELL.
1075 00:50:24,020 –> 00:50:29,926 AND SO DID THE ENERGY BUSINESS
1076 00:50:27,323 –> 00:50:30,326 AND BNSF, THEY HELD UP VERY
1077 00:50:29,993 –> 00:50:33,529 WELL.
1078 00:50:30,393 –> 00:50:35,531 SOME OF THE RETAIL BUSINESSES,
1079 00:50:33,596 –> 00:50:38,501 YOU KNOW, THEY WERE VERY
1080 00:50:35,598 –> 00:50:38,902 SERIOUSLY HURT DURING THE
1081 00:50:38,568 –> 00:50:42,572 PANDEMIC.
1082 00:50:38,969 –> 00:50:44,774 AND THOSE THAT HAD A LOT
1083 00:50:42,638 –> 00:50:47,010 INVESTED IN THE MALL ACCESS, I
1084 00:50:44,840 –> 00:50:50,079 THINK PARTICULARLY SO.
1085 00:50:47,077 –> 00:50:52,248 AND SO THOSE ARE CLIMBING BUT
1086 00:50:50,146 –> 00:50:52,882 NOT – YOU KNOW, THEY’RE NOT OUT
1087 00:50:52,315 –> 00:50:54,851 OF THE HOLE.
1088 00:50:52,949 –> 00:50:57,053 IT’S GOING TO BE A LONG HAUL, I
1089 00:50:54,918 –> 00:50:58,788 THINK, FOR SOME OF THE
1090 00:50:57,120 –> 00:51:00,523 BUSINESSES, BUT BY AND LARGE
1091 00:50:58,855 –> 00:51:02,725 WE’RE – I’M VERY, VERY PLEASED
1092 00:51:00,590 –> 00:51:04,460 WITH WHAT WE’RE DOING.
1093 00:51:02,792 –> 00:51:06,763
WHAT IS IT LIKE BEING A
1094 00:51:04,527 –> 00:51:08,198 DIRECTOR OF BERKSHIRE HATHAWAY?
1095 00:51:06,830 –> 00:51:09,999 HOW OFTEN DO YOU TALK?
1096 00:51:08,265 –> 00:51:11,201 HOW OFTEN DOES WARREN BUFFETT
1097 00:51:10,066 –> 00:51:12,802 TALK TO YOU GUYS?
1098 00:51:11,268 –> 00:51:13,837 WHAT IS THE COMMUNICATION LIKE?
1099 00:51:12,869 –> 00:51:14,237 WHAT’S IT LIKE BEHIND THE
1100 00:51:13,903 –> 00:51:20,677 SCENES?
1101 00:51:14,304 –> 00:51:24,614
WELL, WE HAVE BASICALLY TWO
1102 00:51:20,744 –> 00:51:27,383 BIG IN-PERSON MEETINGS A YEAR
1103 00:51:24,681 –> 00:51:29,719 AND THEN A NUMBER OF OTHER
1104 00:51:27,450 –> 00:51:31,954 DIRECTOR MEETINGS DURING THE
1105 00:51:29,786 –> 00:51:33,690 COURSE OF THE YEAR OFTEN
1106 00:51:32,021 –> 00:51:34,958 DEPENDING UPON PARTICULAR
1107 00:51:33,757 –> 00:51:35,558 CIRCUMSTANCES, AN ACQUISITION OR
1108 00:51:35,025 –> 00:51:37,861 SOMETHING LIKE THAT.
1109 00:51:35,625 –> 00:51:40,697 IN ADDITION TO THAT, I THINK YOU
1110 00:51:37,928 –> 00:51:42,866 KNOW, WARREN’S A COMMUNICATOR.
1111 00:51:40,764 –> 00:51:44,601 CHARLIE’S A COMMUNICATOR AND, OF
1112 00:51:42,933 –> 00:51:46,369 COURSE, WITH CHARLIE, HE’S IN
1113 00:51:44,668 –> 00:51:46,870 LOS ANGELES AND HE AND I TALK
1114 00:51:46,436 –> 00:51:49,339 OFTEN.
1115 00:51:46,937 –> 00:51:52,341 WARREN AND I TEND TO TALK ON
1116 00:51:49,406 –> 00:51:56,045 SUNDAYS, AND HE DOES THAT WITH
1117 00:51:52,408 –> 00:51:56,479 OTHER DIRECTORS THROUGHOUT THE
1118 00:51:56,112 –> 00:51:58,314 YEAR.
1119 00:51:56,546 –> 00:51:59,516 HE’S ON THE PHONE WITH THE
1120 00:51:58,381 –> 00:52:01,651 MANAGERS ALL THE TIME.
1121 00:51:59,583 –> 00:52:04,354 I MEAN – SO THERE’S A LOT OF
1122 00:52:01,718 –> 00:52:06,222 COMMUNICATION IN THIS COMPANY.
1123 00:52:04,421 –> 00:52:06,589 COMMUNICATION UP, COMMUNICATION
1124 00:52:06,289 –> 00:52:08,491 DOWN.
1125 00:52:06,656 –> 00:52:10,360 A LOT OF TRANSPARENCY.
1126 00:52:08,558 –> 00:52:11,761
SUNDAYS, HUH?
1127 00:52:10,427 –> 00:52:13,663 IT SOUNDS LIKE YOU’RE WORKING
1128 00:52:11,828 –> 00:52:15,264 SEVEN DAYS A WEEK HERE?
1129 00:52:13,730 –> 00:52:16,799
ANY TIME YOU’RE TALKING TO
1130 00:52:15,331 –> 00:52:17,167 WARREN YOU’RE HAVING FUN.
1131 00:52:16,866 –> 00:52:20,469
RIGHT.
1132 00:52:17,234 –> 00:52:22,138 WE TALKED ABOUT AJIT JAIN AND
1133 00:52:20,536 –> 00:52:23,873 GREG ABEL UP THERE ON THE STAGE.
1134 00:52:22,205 –> 00:52:24,173 HAVE TO ASK YOU ABOUT
1135 00:52:23,940 –> 00:52:25,074 SUCCESSION.
1136 00:52:24,240 –> 00:52:26,543 PEOPLE ALWAYS ASK YOU ABOUT
1137 00:52:25,141 –> 00:52:27,744 THAT, BUT IS THERE ANYTHING THAT
1138 00:52:26,610 –> 00:52:28,044 WE NEED TO KNOW IN THAT
1139 00:52:27,811 –> 00:52:31,314 DEPARTMENT?
1140 00:52:28,111 –> 00:52:32,515
WELL, YOU HAVEN’T MISSED THAT
1141 00:52:31,381 –> 00:52:33,616 SUCCESSION QUESTION IN AS I
1142 00:52:32,582 –> 00:52:34,717 REMEMBER ABOUT THE LAST FOUR
1143 00:52:33,683 –> 00:52:38,521 YEARS WITH ME.
1144 00:52:34,784 –> 00:52:40,123 YOU KNOW, PEOPLE TALK ABOUT
1145 00:52:38,588 –> 00:52:42,158 SUCCESSION PLANNING, AND I THINK
1146 00:52:40,190 –> 00:52:44,260 YOU COULD LOOK AT THE FACT THAT
1147 00:52:42,225 –> 00:52:49,065 WE HAVE TWO NEW VICE CHAIR MEN
1148 00:52:44,327 –> 00:52:49,699 IN THE LAST FEW YEARS WITH
1149 00:52:49,132 –> 00:52:52,034 EXPANDED RESPONSIBILITIES.
1150 00:52:49,766 –> 00:52:53,135 AJIT THROUGHOUT THE INSURANCE
1151 00:52:52,101 –> 00:52:55,205 BUSINESSES AND GREG THROUGHOUT
1152 00:52:53,202 –> 00:52:57,106 THE NON-INSURANCE BUSINESSES.
1153 00:52:55,272 –> 00:52:58,208 YOU COULD LOOK ON THAT AS
1154 00:52:57,173 –> 00:53:00,143 SUCCESSION PLANNING.
1155 00:52:58,275 –> 00:53:01,744 YOU COULD LOOK ON THE – OUR TWO
1156 00:53:00,210 –> 00:53:06,916 GREAT INVESTORS THAT HAVE BEEN
1157 00:53:01,811 –> 00:53:08,751 BROUGHT IN, TED AND TODD, AS
1158 00:53:06,983 –> 00:53:09,519 SUCCESSION PLANNING.
1159 00:53:08,818 –> 00:53:11,053 ME?
1160 00:53:09,586 –> 00:53:14,757 I LIKE TO DESCRIBE IT AS
1161 00:53:11,120 –> 00:53:16,493 MANAGEMENT EXTENSION.
1162 00:53:14,824 –> 00:53:24,033 THERE’S NO QUESTION THAT THE
1163 00:53:16,559 –> 00:53:26,970 ACTIVITIES OF GREG, AJIT, TWO Ts
1164 00:53:24,100 –> 00:53:28,871 HAVE GIVEN NEW – IN MY OPINION,
1165 00:53:27,037 –> 00:53:30,239 NEW OPPORTUNITIES FOR WARREN AND
1166 00:53:28,938 –> 00:53:32,808 CHARLIE TO CONTINUE DOING WHAT
1167 00:53:30,306 –> 00:53:35,645 THEY DO SO WELL AND, YOU KNOW,
1168 00:53:32,875 –> 00:53:37,280 GREG DOES A LOT MORE TRAVELING
1169 00:53:35,712 –> 00:53:39,215 THAN WARREN DOES THESE DAYS TO
1170 00:53:37,346 –> 00:53:40,950 THE RESPECTIVE BUSINESSES.
1171 00:53:39,282 –> 00:53:42,385 NOW IF YOU ASK WARREN ANY
1172 00:53:41,017 –> 00:53:43,953 QUESTION ABOUT ANY OF THE
1173 00:53:42,452 –> 00:53:46,122 BUSINESSES HE’S GOT IT ON THE
1174 00:53:44,020 –> 00:53:48,624 TIP OF HIS TONGUE, READING ALL
1175 00:53:46,189 –> 00:53:52,828 THE TIME, BUT IN TERMS OF
1176 00:53:48,691 –> 00:53:59,269 SHOWING UP FOR THE CELEBRATION
1177 00:53:52,895 –> 00:54:00,470 OF A TENTH ANNIVERSARY OF THE
1178 00:53:59,336 –> 00:54:01,004 CEO.
1179 00:54:00,537 –> 00:54:04,407 FWR
1180 00:54:01,070 –> 00:54:06,042 GREG IS THERE – WE LOST A GREAT
1181 00:54:04,474 –> 00:54:07,210 ONE, PAUL ANDREWS FOR TTI, JUST
1182 00:54:06,109 –> 00:54:08,911 IN THE LAST FEW WEEKS.
1183 00:54:07,277 –> 00:54:12,315 I KNOW WARREN WAS AT THAT
1184 00:54:08,978 –> 00:54:15,718 FUNERAL WITH GREG.
1185 00:54:12,382 –> 00:54:18,688 IT IS – IN MY MIND, WHY WOULD
1186 00:54:15,785 –> 00:54:21,758 WE WANT TO THROW AWAY THE
1187 00:54:18,755 –> 00:54:23,426 LIFETIME OF EXPERIENCE THESE TWO
1188 00:54:21,825 –> 00:54:25,361 GUYS HAVE HAD AND BRING TO BEAR
1189 00:54:23,493 –> 00:54:26,562 ON EVERY IMPORTANT JUDGMENT THIS
1190 00:54:25,428 –> 00:54:29,999 COMPANY MAKES?
1191 00:54:26,629 –> 00:54:30,900 SO THERE’S NO REPLACEMENT
1192 00:54:30,066 –> 00:54:33,436 TIMETABLE.
1193 00:54:30,967 –> 00:54:34,937 EVERY MEETING WE DIRECTORS TALK
1194 00:54:33,503 –> 00:54:36,972 ABOUT SUCCESSION.
1195 00:54:35,004 –> 00:54:38,408 IF SOMETHING HAPPENED TOMORROW,
1196 00:54:37,039 –> 00:54:40,176 WE KNOW EXACTLY WHAT WE’RE GOING
1197 00:54:38,475 –> 00:54:41,544 TO DO, BUT THAT’S ABOUT AS FAR
1198 00:54:40,243 –> 00:54:44,246 AS I GO WITH THIS QUESTION.
1199 00:54:41,611 –> 00:54:47,016 AND I WOULD SAY THIS, YOU KNOW,
1200 00:54:44,313 –> 00:54:48,451 LOOK AT HOW – IN ADDITION TO
1201 00:54:47,082 –> 00:54:53,856 THE TWO VICE CHAIRS, THE WAY
1202 00:54:48,518 –> 00:54:57,327 THIS COMPANY OPERATES, IT’S
1203 00:54:53,923 –> 00:54:59,962 CREATED MANAGEMENT THAT HAVE HAD
1204 00:54:57,394 –> 00:55:02,165 THE EXPERIENCE EVER BEING THEIR
1205 00:55:00,029 –> 00:55:04,333 OWN BUSINESS BOSSES.
1206 00:55:02,232 –> 00:55:05,702 IT’S A GREAT WAY TO GROW TALENT
1207 00:55:04,400 –> 00:55:07,437 AS WELL AS GROW THE COMPANY.
1208 00:55:05,768 –> 00:55:08,237
QUICK LAST QUESTION, RON.
1209 00:55:07,504 –> 00:55:10,139 ANYTHING WE SHOULD KNOW ABOUT
1210 00:55:08,304 –> 00:55:11,374 THE SHAREHOLDER PROPOSALS THAT
1211 00:55:10,206 –> 00:55:12,975 ARE BEING PUT FORTH TODAY?
1212 00:55:11,441 –> 00:55:17,213
I DON’T THINK ANYTHING THAT
1213 00:55:13,042 –> 00:55:19,582 ISN’T IN OUR PROXY.
1214 00:55:17,280 –> 00:55:23,252 YOU KNOW, I’M CONFIDENT THAT OUR
1215 00:55:19,649 –> 00:55:25,555 SHAREHOLDERS ARE GOING TO BACK
1216 00:55:23,319 –> 00:55:28,257 OUR RECOMMENDATIONS BUT, YOU
1217 00:55:25,622 –> 00:55:30,059 KNOW, THERE’S – ALL OF IT IS
1218 00:55:28,324 –> 00:55:30,760 BEING PRESENTED, YOU TAKE
1219 00:55:30,126 –> 00:55:33,029 CLIMATE CHANGE.
1220 00:55:30,827 –> 00:55:35,231 WE TAKE THAT SERIOUSLY.
1221 00:55:33,096 –> 00:55:37,066 AND YOU LOOK AT WHAT THE
1222 00:55:35,298 –> 00:55:40,069 UTILITIES ARE DOING, YOU LOOK AT
1223 00:55:37,133 –> 00:55:43,172 WHAT BANF ARE DOING, WE’VE GOT
1224 00:55:40,136 –> 00:55:46,543 LOTS OF EXAMPLES OUT THERE OF US
1225 00:55:43,239 –> 00:55:50,613 BECOMING MORE EFFICIENT, ADDING
1226 00:55:46,609 –> 00:55:50,880 I THINK TO THE STRENGTH OF OUR
1227 00:55:50,680 –> 00:55:53,716 COMPANIES.
1228 00:55:50,947 –> 00:55:56,752 AND IT’S – WE’RE – I THINK
1229 00:55:53,783 –> 00:55:59,655 THEY WILL BE DEFEATED BUT THAT’S
1230 00:55:56,819 –> 00:56:02,258 FOR US TO FIND OUT LATER TODAY.
1231 00:55:59,722 –> 00:56:02,759
RON OLSON, BERKSHIRE HATHAWAY
1232 00:56:02,325 –> 00:56:03,426 DIRECTOR.
1233 00:56:02,826 –> 00:56:08,798 THANK YOU SO MUCH FOR YOUR TIME.
1234 00:56:03,493 –> 00:56:12,135
THANK YOU, ANDY.
1235 00:56:08,865 –> 00:56:15,371
YAHOO! FINANCE’S COVERAGE OF
1236 00:56:12,201 –> 00:56:18,408 THE ANNUAL SHAREHOLDERS MEETING
1237 00:56:15,438 –> 00:56:20,743 IS BROUGHT TO YOU BY MOOMOO.
1238 00:56:18,475 –> 00:56:22,612 A TRADING PLATFORM OF STOCKS,
1239 00:56:20,810 –> 00:56:22,612 OPTIONS, ETFs AND MORE.
1240 00:58:38,114 –> 00:58:41,918
WELCOME BACK TO YAHOO!
1241 00:58:40,483 –> 00:58:43,920 FINANCE’S EXCLUSIVE COVERAGE OF
1242 00:58:41,984 –> 00:58:45,755 THE ANNUAL MEETING.
1243 00:58:43,987 –> 00:58:47,790 WE’RE ABOUT TEN MINUTES OUT WHEN
1244 00:58:45,822 –> 00:58:49,625 WE EXPECT WARREN BUFFETT AND
1245 00:58:47,857 –> 00:58:50,893 CHARLIE MUNGER TO TAKE QUESTIONS
1246 00:58:49,691 –> 00:58:51,894 FOR THE NEXT FOUR OR FIVE HOURS
1247 00:58:50,960 –> 00:58:53,229 OR SO.
1248 00:58:51,961 –> 00:58:54,597 IN THE INTERIM, IN OUR BUILDUP
1249 00:58:53,296 –> 00:58:56,632 TO THE COVERAGE, WE’RE TALKING
1250 00:58:54,664 –> 00:58:57,733 TO FOLKS ABOUT WHAT THEY WOULD
1251 00:58:56,699 –> 00:58:59,835 EXPECT, WHAT THEY’D LIKE TO HEAR
1252 00:58:57,800 –> 00:59:01,971 AND WHAT THEY’VE LEARNED FROM
1253 00:58:59,902 –> 00:59:05,374 BUFFETT AND MUNGER.
1254 00:59:02,038 –> 00:59:05,641 WE HAVE THE FOUNDER OF BROWN
1255 00:59:05,440 –> 00:59:06,943 GIRLS DO.
1256 00:59:05,707 –> 00:59:07,743 THANK YOU FOR JUMPING ON THIS
1257 00:59:07,010 –> 00:59:09,211 MORNING.
1258 00:59:07,810 –> 00:59:10,680 I’D LOVE TO START WITH WHAT
1259 00:59:09,278 –> 00:59:13,215 YOU’VE LEARNED FROM THESE COUPLE
1260 00:59:10,747 –> 00:59:14,783 OF GUYS TALK, NOW THE FIFTH YEAR
1261 00:59:13,282 –> 00:59:16,152 YAHOO! FINANCE HAS STREAMED THE
1262 00:59:14,850 –> 00:59:17,753 LIVE COVERAGE AND I THINK OPENED
1263 00:59:16,219 –> 00:59:19,622 UP, YOU KNOW, THE WORLD OF
1264 00:59:17,820 –> 00:59:21,324 WISDOM WE’VE HEARD ABOUT FOR SO
1265 00:59:19,689 –> 00:59:21,524 MANY YEARS TO FOLKS AROUND THE
1266 00:59:21,391 –> 00:59:22,457 GLOBE.
1267 00:59:21,591 –> 00:59:24,360
ABSOLUTELY.
1268 00:59:22,524 –> 00:59:25,427 THANK YOU FOR HAVING ME.
1269 00:59:24,427 –> 00:59:27,196 THERE IS SO MUCH THAT I’VE
1270 00:59:25,494 –> 00:59:28,897 LEARNED FROM WARREN BUFFETT AS
1271 00:59:27,263 –> 00:59:33,269 WELL AS CHARLIE MUNGER.
1272 00:59:28,964 –> 00:59:35,771 FOR ONE, THEY’VE TALKED OVER THE
1273 00:59:33,336 –> 00:59:36,004 YEARS TO NOT INVEST WITH YOU’RE
1274 00:59:35,838 –> 00:59:37,707 MOTION.
1275 00:59:36,071 –> 00:59:38,941 IT’S SO EASY FOR US TO DO THAT.
1276 00:59:37,774 –> 00:59:40,343 THERE ARE THOUSANDS OF STOCKS
1277 00:59:39,007 –> 00:59:42,978 THAT ARE ON THE MARKET.
1278 00:59:40,410 –> 00:59:43,779 WE CAN DEFINITELY FALL INTO WHAT
1279 00:59:43,045 –> 00:59:45,081 IS TRENDY.
1280 00:59:43,846 –> 00:59:46,715 WHAT ARE THE BUZZ WORDS.
1281 00:59:45,148 –> 00:59:48,817 HOWEVER, WHEN IT COMES TO BEING
1282 00:59:46,782 –> 00:59:51,921 A SUCCESSFUL INVESTOR, WE HAVE
1283 00:59:48,884 –> 00:59:53,355 TO MAKE SURE THAT WE ARE PULLING
1284 00:59:51,988 –> 00:59:55,357 OURSELVES AWAY FROM THE CROWD
1285 00:59:53,422 –> 00:59:57,259 AND INVESTING IN WHAT WE KNOW
1286 00:59:55,424 –> 00:59:58,560 AND WHAT WE HAVE RESEARCHED.
1287 00:59:57,326 –> 01:00:00,229 WHAT I’VE LEARNED FROM WARREN
1288 00:59:58,627 –> 01:00:03,132 OVER THE YEARS IS TO MAKE SURE
1289 01:00:00,296 –> 01:00:05,000 THAT I DO MY RESEARCH, AND IF I
1290 01:00:03,199 –> 01:00:07,236 CANNOT UNDERSTAND A BUSINESS,
1291 01:00:05,067 –> 01:00:09,705 THEN I MOST DEFINITELY WOULD NOT
1292 01:00:07,303 –> 01:00:12,207 INVEST IN IT.
1293 01:00:09,772 –> 01:00:13,275 AND WITH THAT BEING SAID,
1294 01:00:12,274 –> 01:00:14,877 LOOKING AT STOCKS THAT I BELIEVE
1295 01:00:13,342 –> 01:00:16,845 ARE UNDER PRICED BY THE MARKET
1296 01:00:14,944 –> 01:00:20,649 AND THE ONES THAT I FEEL AS
1297 01:00:16,912 –> 01:00:24,420 THOUGH THE PRICES WILL
1298 01:00:20,716 –> 01:00:25,655 EVENTUALLY RISE SIGNIFICANTLY
1299 01:00:24,487 –> 01:00:28,924 OVER TIME.
1300 01:00:25,722 –> 01:00:29,892
BAHIYAH, TELL US ABOUT BROWN
1301 01:00:28,991 –> 01:00:30,660 GIRLS DO INVEST.
1302 01:00:29,959 –> 01:00:32,227 WHAT IS THAT ORGANIZATION?
1303 01:00:30,727 –> 01:00:32,862
OH, MY GOODNESS, THANK YOU
1304 01:00:32,294 –> 01:00:34,697 FOR ASKING.
1305 01:00:32,928 –> 01:00:36,865 BROWN GIRLS DO INVEST IS A
1306 01:00:34,764 –> 01:00:37,967 NONPROFIT ORGANIZATION, AND WE
1307 01:00:36,932 –> 01:00:40,269 TEACH AFRICAN-AMERICAN WOMEN HOW
1308 01:00:38,034 –> 01:00:42,938 TO INVEST IN THE STOCK MARKET,
1309 01:00:40,336 –> 01:00:45,675 HOW TO INVEST IN REAL ESTATE AS
1310 01:00:43,005 –> 01:00:46,475 WELL AS ACQUIRE MULTIPLE STREAMS
1311 01:00:45,742 –> 01:00:49,144 OF INCOME.
1312 01:00:46,542 –> 01:00:50,379 WE BASICALLY FOLLOW WHAT WARREN
1313 01:00:49,211 –> 01:00:51,380 BUFFETT TEACHES ABOUT, WHICH IS
1314 01:00:50,446 –> 01:00:53,416 VALUE INVESTING.
1315 01:00:51,447 –> 01:00:55,484 WE MAKE SURE THAT WHEN WE ARE
1316 01:00:53,483 –> 01:00:57,186 INVESTING, IT’S FOR A LONG-TERM
1317 01:00:55,551 –> 01:00:59,021 STRATEGY AS OPPOSED TO SOMETHING
1318 01:00:57,253 –> 01:01:00,155 SHORT TERM.
1319 01:00:59,088 –> 01:01:01,790 THERE’S SO MANY PEOPLE WHO WANT
1320 01:01:00,222 –> 01:01:03,092 TO MAKE SURE THAT THEY’RE
1321 01:01:01,857 –> 01:01:05,961 EARNING MONEY AS QUICKLY AS
1322 01:01:03,159 –> 01:01:08,063 POSSIBLE, HOWEVER, WE WANT TO
1323 01:01:06,028 –> 01:01:09,498 MAKE SURE THAT PEOPLE WHO
1324 01:01:08,130 –> 01:01:11,300 UNDERSTAND THEIR RISK TOLERANCE
1325 01:01:09,565 –> 01:01:14,703 BY ASKING A FEW QUESTIONS,
1326 01:01:11,367 –> 01:01:15,371 DETERMINING THEIR AGE, AS WELL
1327 01:01:14,770 –> 01:01:16,805 AS WHEN THEY’RE GOING TO RETIRE
1328 01:01:15,437 –> 01:01:22,011 AND TO UNDERSTAND ONE OF THE
1329 01:01:16,872 –> 01:01:23,679 BEST STRATEGIES IS TO HOLD ON AS
1330 01:01:22,078 –> 01:01:24,714 WELL AS ADDRESS SOME OF THE
1331 01:01:23,746 –> 01:01:26,482 INFLATION THAT IS GOING ON THAT
1332 01:01:24,780 –> 01:01:27,349 IS NOT GOING TO BE CONDUCIVE TO
1333 01:01:26,549 –> 01:01:29,585 OUR BUYING POWER.
1334 01:01:27,416 –> 01:01:31,086 WHEN YOU THINK ABOUT WHAT WARREN
1335 01:01:29,652 –> 01:01:32,421 BUFFETT DOES WITH HIS STRATEGY
1336 01:01:31,153 –> 01:01:35,457 AS FAR AS BUY AND HOLD AND LOOK
1337 01:01:32,488 –> 01:01:40,296 AT OVER THE PAST 14 YEARS HOW
1338 01:01:35,524 –> 01:01:43,432 STOCKS IN THE UNITED STATES HAVE
1339 01:01:40,363 –> 01:01:43,733 EARNED 9.2%, YOU CANNOT GO
1340 01:01:43,499 –> 01:01:45,367 WRONG.
1341 01:01:43,800 –> 01:01:47,436 SO WITH BROWN GIRLS DO INVEST,
1342 01:01:45,434 –> 01:01:50,005 WE MAKE SURE THAT WE EDUCATE ON
1343 01:01:47,503 –> 01:01:50,238 HOW TO INVEST IN THE STOCK
1344 01:01:50,072 –> 01:01:52,708 MARKET.
1345 01:01:50,305 –> 01:01:54,610
YOU KNOW, BAHIYAH, SOMETHING
1346 01:01:52,775 –> 01:01:56,011 I KNOW WE’RE GOING TO HEAR FROM
1347 01:01:54,677 –> 01:01:57,379 WARREN AND CHARLIE ABOUT TODAY,
1348 01:01:56,078 –> 01:01:58,914 WHAT’S BEEN HAPPENING WITH
1349 01:01:57,446 –> 01:02:00,649 CRYPTO, THE MEME STOCKS.
1350 01:01:58,981 –> 01:02:06,923 THE ABILITY FOR PEOPLE TO INVEST
1351 01:02:00,716 –> 01:02:07,689 ON THINGS LIKE ROBINHOOD.
1352 01:02:06,989 –> 01:02:09,458 IT’S DRIVEN INTEREST IN STOCKS
1353 01:02:07,756 –> 01:02:10,559 AND I’M SURE YOU’VE SEEN THAT IN
1354 01:02:09,525 –> 01:02:11,960 YOUR WORK AS WELL.
1355 01:02:10,626 –> 01:02:14,130 I’M CURIOUS HOW YOU’VE GONE
1356 01:02:12,027 –> 01:02:16,265 ABOUT EDUCATING PEOPLE TRYING TO
1357 01:02:14,197 –> 01:02:18,233 GET IN AND OUT ON A DAY’S BASIS,
1358 01:02:16,332 –> 01:02:20,135 A WEEK OR A MONTH’S BASIS, THAT
1359 01:02:18,300 –> 01:02:22,538 WILL LIKELY, LIKELY ERODE YOUR
1360 01:02:20,202 –> 01:02:23,438 GAINS OVER TIME AND HOW THAT
1361 01:02:22,604 –> 01:02:35,451 CONVERSATION HAS MAYBE CHANGED
1362 01:02:23,505 –> 01:02:37,086 OVER THE LAST YEAR WHEN INTEREST
1363 01:02:35,517 –> 01:02:37,720 IN THE STOCKS AND THE MARKET HAS
1364 01:02:37,153 –> 01:02:38,387 GONE UP.
1365 01:02:37,786 –> 01:02:40,189
THAT’S RIGHT.
1366 01:02:38,454 –> 01:02:41,223 DON’T ENGAGE IN THE BUZZ WORD.
1367 01:02:40,256 –> 01:02:45,728 NOT TO DO WHAT YOU FEEL AS
1368 01:02:41,290 –> 01:02:48,163 THOUGH YOUR NEIGHBOR IS DOING
1369 01:02:45,795 –> 01:02:50,332 AND TO MAKE SURE YOU ARE
1370 01:02:48,230 –> 01:02:50,599 INVESTING OFF OF YOUR INVESTMENT
1371 01:02:50,399 –> 01:02:52,467 NEEDS.
1372 01:02:50,666 –> 01:02:53,135 ALTHOUGH WE HAVE THE
1373 01:02:52,534 –> 01:02:58,807 CRYPTOCURRENCY AND OTHER THINGS
1374 01:02:53,201 –> 01:03:00,776 TO INVEST IN OVER THE YEARS, TO
1375 01:02:58,874 –> 01:03:02,444 MAKE SURE WE TELL INVESTORS TO
1376 01:03:00,843 –> 01:03:05,147 DO WHAT BUFFETT ENCOURAGES US TO
1377 01:03:02,511 –> 01:03:05,380 DO, WHICH IS TO RESEARCH THE
1378 01:03:05,214 –> 01:03:08,617 COMPANY.
1379 01:03:05,447 –> 01:03:13,422 IF YOU ARE TRYING TO ENGAGE IN
1380 01:03:08,684 –> 01:03:15,224 BUZZ WORDS OR STRTRENDY THINGS T
1381 01:03:13,488 –> 01:03:15,424 ARE OCCURRING, YOU DO NOT HAVE
1382 01:03:15,291 –> 01:03:17,426 TIME.
1383 01:03:15,491 –> 01:03:18,794 IN ADDITION TO RESEARCHING THE
1384 01:03:17,493 –> 01:03:20,295 COMPANY, YOU HAVE TO MAKE SURE
1385 01:03:18,861 –> 01:03:21,964 WHATEVER YOU ARE INVESTING IN
1386 01:03:20,362 –> 01:03:23,565 HAS A STRONG LEADERSHIP TEAM AS
1387 01:03:22,030 –> 01:03:25,133 WELL AS ARE THEY PROFITABLE.
1388 01:03:23,632 –> 01:03:26,668 LOOK AT THEIR PERFORMANCE AND
1389 01:03:25,200 –> 01:03:30,039 THEIR RETURN ON INVESTMENT AND
1390 01:03:26,735 –> 01:03:31,807 TRY TO AVOID OVER VALUED STOCKS.
1391 01:03:30,106 –> 01:03:33,809 AGAIN, THE THING WITH INVESTING
1392 01:03:31,874 –> 01:03:35,144 IS TO MAKE SURE THAT YOU ARE
1393 01:03:33,876 –> 01:03:35,444 INVESTING LONG TERM, NOT
1394 01:03:35,211 –> 01:03:36,745 TRADING.
1395 01:03:35,511 –> 01:03:39,248 AND THAT’S SOMETHING THAT WE
1396 01:03:36,812 –> 01:03:42,784 TALK ABOUT WHEN IT COMES TO
1397 01:03:39,315 –> 01:03:44,286 CRYPTOCURRENCY AS WELL AS ANY
1398 01:03:42,851 –> 01:03:44,820 OTHER OPPORTUNITIES THAT ARE IN
1399 01:03:44,353 –> 01:03:45,454 THE STOCK MARKET.
1400 01:03:44,887 –> 01:03:49,258
ALL RIGHT.
1401 01:03:45,521 –> 01:03:52,428 WE’RE GOING TO HAVE TO LEAVE IT
1402 01:03:49,325 –> 01:03:53,796 THERE.
1403 01:03:52,495 –> 01:03:54,597 BAYIHAY, THANK YOU SO MUCH FOR
1404 01:03:53,863 –> 01:03:55,031 JOINING US.
1405 01:03:54,664 –> 01:03:57,700
WELCOME.
1406 01:03:55,097 –> 01:04:00,102
EMPIRE RESEARCH FOUNDER AND
1407 01:03:57,767 –> 01:04:02,237 CEO WHITNEY TILLSON JOINS US ON
1408 01:04:00,169 –> 01:04:04,139 A DISCUSSION ON THE U.S.
1409 01:04:02,304 –> 01:04:08,344 ECONOMIC RECOVERY AND HOW
1410 01:04:04,206 –> 01:04:08,678 BERKSHIRE COULD STAND TO BENEFIT
1411 01:04:08,411 –> 01:04:08,678 COMING UP NEXT.
1412 01:06:24,013 –> 01:06:26,681
WELCOME BACK.
1413 01:06:25,781 –> 01:06:28,850 WARREN BUFFETT AND CHARLIE
1414 01:06:26,748 –> 01:06:30,552 MUNGER ARE SET TO TAKE THEIR
1415 01:06:28,917 –> 01:06:32,421 SEATS AT ANY MINUTE NOW AS WE
1416 01:06:30,619 –> 01:06:34,456 AWAIT THE START OF THE 2021
1417 01:06:32,488 –> 01:06:35,090 BERKSHIRE HATHAWAY ANNUAL
1418 01:06:34,523 –> 01:06:37,760 SHAREHOLDERS MEETING.
1419 01:06:35,156 –> 01:06:40,929 JOINING US IS EMPIRE FINANCIAL
1420 01:06:37,826 –> 01:06:41,797 MANAGER AND CEO WHITNEY TILLSON.
1421 01:06:40,996 –> 01:06:43,699 THANKS FOR JOINING US.
1422 01:06:41,863 –> 01:06:44,900 WHAT ARE YOU LOOKING FOR AT THIS
1423 01:06:43,766 –> 01:06:47,302 PARTICULAR MEETING THIS YEAR?
1424 01:06:44,967 –> 01:06:48,637
WELL, I DON’T THINK THERE’S
1425 01:06:47,369 –> 01:06:55,711 ANYTHING EARTH SHATTERING GOING
1426 01:06:48,703 –> 01:06:57,345 ON RIGHT NOW.
1427 01:06:55,778 –> 01:06:58,847 BERKSHIRE’S BUSINESS IS FIRING
1428 01:06:57,412 –> 01:07:03,085 ON ALL CYLINDERS.
1429 01:06:58,914 –> 01:07:04,820 IT’S GOTTEN A TERRIFIC TAILWIND
1430 01:07:03,152 –> 01:07:06,221 AND ONE OF THE THINGS THAT’S
1431 01:07:04,887 –> 01:07:08,090 ADDING ROCKET FUEL TO BERKSHIRE
1432 01:07:06,288 –> 01:07:10,826 RIGHT NOW IS JUST IN THE LAST
1433 01:07:08,157 –> 01:07:11,694 THREE QUARTERS A REAL RAMP UP OF
1434 01:07:10,892 –> 01:07:14,896 SHARING PURCHASES.
1435 01:07:11,760 –> 01:07:16,398 THE SHARE COUNT IS DOWN 5.5%
1436 01:07:14,963 –> 01:07:17,899 YEAR OVER YEAR.
1437 01:07:16,465 –> 01:07:19,134 BERKSHIRE HAS JOINED THE RANKS
1438 01:07:17,966 –> 01:07:20,702 OF THE BIGGEST BLUE CHIP
1439 01:07:19,201 –> 01:07:22,671 COMPANIES DOING THE BIGGEST
1440 01:07:20,769 –> 01:07:25,007 SHARE BUYBACKS AND THAT’S
1441 01:07:22,738 –> 01:07:27,175 TURNING MID SINGLE DIGIT TO HIGH
1442 01:07:25,074 –> 01:07:29,711 SINGLE DIGIT SORT OF EMBEDDED
1443 01:07:27,242 –> 01:07:32,247 GROWTH WITH THE BIG ECONOMIC
1444 01:07:29,778 –> 01:07:33,949 BOOM YOU’RE SEEING OPERATING
1445 01:07:32,314 –> 01:07:36,818 EARNINGS GROWING 20% YEAR OVER
1446 01:07:34,016 –> 01:07:39,020 YEAR AND THEN YOU THROW IN A 5%
1447 01:07:36,885 –> 01:07:41,390 REDUCTION IN SHARE COUNT AND
1448 01:07:39,087 –> 01:07:42,924 EARNINGS PER SHARE ARE GOING UP
1449 01:07:41,457 –> 01:07:45,561 AND IT’S GOING UP EVEN FASTER.
1450 01:07:42,991 –> 01:07:47,996
HEY, WHITNEY.
1451 01:07:45,628 –> 01:07:48,397 I’M GLAD YOU BROUGHT UP SHARE
1452 01:07:48,063 –> 01:07:49,965 REPURCHASES.
1453 01:07:48,464 –> 01:07:50,666 THAT IS EXACTLY WHAT I WANTED TO
1454 01:07:50,032 –> 01:07:52,067 TALK TO YOU ABOUT.
1455 01:07:50,733 –> 01:07:53,502 WE DID SPEAK ABOUT THAT BACK
1456 01:07:52,134 –> 01:07:55,070 WHEN YOU PUT OUT THE ANNUAL
1457 01:07:53,569 –> 01:07:57,306 LETTER AS YOU MENTIONED.
1458 01:07:55,137 –> 01:07:58,273 ANOTHER 6.6 BILLION.
1459 01:07:57,373 –> 01:07:59,675 LET’S TALK ABOUT YOUR OWN VIEW
1460 01:07:58,340 –> 01:07:59,942 OF THE STOCK AND THE STOCK
1461 01:07:59,742 –> 01:08:01,710 PRICE.
1462 01:08:00,009 –> 01:08:02,877 IT SOUNDS TO ME LIKE YOU SEE
1463 01:08:01,777 –> 01:08:04,446 FURTHER UP SIDE HERE.
1464 01:08:02,944 –> 01:08:06,515 WHAT ARE YOU KIND OF EXPECTING
1465 01:08:04,513 –> 01:08:06,748 TO BE THE CATALYST GOING
1466 01:08:06,582 –> 01:08:07,683 FORWARD?
1467 01:08:06,815 –> 01:08:10,119
YEAH.
1468 01:08:07,750 –> 01:08:11,453 WELL, LOOK, THE STOCK HIT AN
1469 01:08:10,186 –> 01:08:12,888 ALL-TIME HIGH ON THURSDAY,
1470 01:08:11,520 –> 01:08:15,790 PULLED BACK A LITTLE ON FRIDAY
1471 01:08:12,955 –> 01:08:17,559 AND IT’S RESTING BUT
1472 01:08:15,857 –> 01:08:19,194 NEVERTHELESS I JUST RECALCULATED
1473 01:08:17,626 –> 01:08:22,497 BASED ON THE Q1 NUMBERS THIS
1474 01:08:19,261 –> 01:08:23,966 MORNING USING JUST A VERY SIMPLE
1475 01:08:22,564 –> 01:08:26,768 VALUATION METHODOLOGY.
1476 01:08:24,033 –> 01:08:29,805 I’VE USED IT FOR 20 YEARS.
1477 01:08:26,835 –> 01:08:33,108 IT’S PROVED TO BE VERY ACCURATE.
1478 01:08:29,872 –> 01:08:33,408 IT’S WHAT BUFFETT AND MUNGER
1479 01:08:33,175 –> 01:08:37,479 USE.
1480 01:08:33,475 –> 01:08:38,914 PUT AN 11 MULTIPLE ON THE PRETAX
1481 01:08:37,546 –> 01:08:41,016 EARNINGS AND MY LATEST
1482 01:08:38,981 –> 01:08:43,285 CALCULATION IS IS THAT
1483 01:08:41,083 –> 01:08:48,357 BERKSHIRE’S A SHARES INTRINSIC
1484 01:08:43,351 –> 01:08:50,259 VALUE IS $473,000 PER A SHARE.
1485 01:08:48,424 –> 01:08:53,495 THAT’S $316 PER B SHARE.
1486 01:08:50,326 –> 01:08:54,896 THE STOCK CLOSED ON FRIDAY AT
1487 01:08:53,562 –> 01:08:57,900 412,000 PER A SHARE MEANING THE
1488 01:08:54,963 –> 01:08:59,234 STOCK TODAY IS TRADING AT A 13%
1489 01:08:57,967 –> 01:09:01,169 DISCOUNT TO INTRINSIC VALUE.
1490 01:08:59,301 –> 01:09:08,410 GIVEN THE STOCK IS UP ALMOST 20%
1491 01:09:01,236 –> 01:09:08,643 THIS YEAR, INTRINSIC VALUE IS UP
1492 01:09:08,710 –> 01:09:12,581 10%, BUT I CHALLENGE YOU IN A
1493 01:09:10,379 –> 01:09:16,718 STOCK MARKET AT ALL-TIME HIGHS
1494 01:09:12,648 –> 01:09:19,755 TODAY, CHALLENGE YOU TO SHOW ME
1495 01:09:16,785 –> 01:09:22,324 ANY BIG CAP BLUE CHIP THAT IS AS
1496 01:09:19,822 –> 01:09:22,524 SAFE TRADING AT 13% TO INTRINSIC
1497 01:09:22,391 –> 01:09:24,859 VALUE.
1498 01:09:22,591 –> 01:09:27,796 I LOVE THE STOCK AND I’M
1499 01:09:24,926 –> 01:09:27,996 DELIGHTED BUFFETT IS BUYING
1500 01:09:27,863 –> 01:09:29,331 BACK.
1501 01:09:28,063 –> 01:09:32,667 WHEN YOU ARE BUYING BACK BELOW
1502 01:09:29,398 –> 01:09:35,337 INTRINSIC VALUE, THAT INCREASES
1503 01:09:32,734 –> 01:09:35,671 INTRINSIC VALUE FOR REMAINING
1504 01:09:35,404 –> 01:09:37,706 SHAREHOLDERS.
1505 01:09:35,737 –> 01:09:39,074
WE’RE TALKING ABOUT $145
1506 01:09:37,773 –> 01:09:40,943 BILLION RIGHT NOW.
1507 01:09:39,141 –> 01:09:42,277 ASIDE FROM THE BUYBACKS, HOW DO
1508 01:09:41,009 –> 01:09:43,345 YOU THINK THEY SHOULD BE PUTTING
1509 01:09:42,344 –> 01:09:47,115 THE CASH TO WORK?
1510 01:09:43,412 –> 01:09:47,883
WELL, IT’S TOUGH BECAUSE IT’S
1511 01:09:47,182 –> 01:09:50,685 A TOUGH ENVIRONMENT OUT THERE.
1512 01:09:47,950 –> 01:09:52,721 THERE ARE ONLY TWO WAYS –
1513 01:09:50,752 –> 01:09:53,355
WHITNEY, I’M SORRY TO
1514 01:09:52,788 –> 01:09:56,391 INTERRUPT YOU.
1515 01:09:53,422 –> 01:09:56,792 WE HAVE TO GO OVER TO WARREN
1516 01:09:56,458 –> 01:09:59,728 BUFFETT.
1517 01:09:56,859 –> 01:10:01,029 THE 2021 BERKSHIRE HATHAWAY
1518 01:09:59,795 –> 01:10:04,766 ANNUAL MEETING HAS GONE.
1519 01:10:01,096 –> 01:10:05,033
WE DID IT ON SHORT NOTICE
1520 01:10:04,833 –> 01:10:07,736 LAST YEAR.
1521 01:10:05,100 –> 01:10:11,239 WE HAD MORE WARNING THIS TIME
1522 01:10:07,803 –> 01:10:12,641 AND SO WE CAME TO LOS ANGELES
1523 01:10:11,306 –> 01:10:13,975 AND THE REASON WE’RE DOING IT
1524 01:10:12,708 –> 01:10:16,044 FROM HERE IS BECAUSE OF THE MAN
1525 01:10:14,042 –> 01:10:18,079 ON MY LEFT, NOT BECAUSE HE ASKED
1526 01:10:16,111 –> 01:10:20,382 FOR IT BUT BECAUSE ALL OF US
1527 01:10:18,146 –> 01:10:24,353 WANTED TO DO IT WITH CHARLIE
1528 01:10:20,449 –> 01:10:27,623 HERE IN LOS ANGELES.
1529 01:10:24,420 –> 01:10:29,725 SO I’LL INTRODUCE THE THREE VICE
1530 01:10:27,690 –> 01:10:30,092 CHAIR MEN OF BERKSHIRE IN A
1531 01:10:29,792 –> 01:10:36,632 MINUTE.
1532 01:10:30,159 –> 01:10:36,899 I’LL SHOW YOU THE FIRST QUARTER
1533 01:10:36,699 –> 01:10:40,802 EARNINGS.
1534 01:10:36,966 –> 01:10:44,773 WON’T TAKE MUCH TIME ON THAT.
1535 01:10:40,869 –> 01:10:47,309 I’LL HAVE ONE OR TWO VERY SHORT
1536 01:10:44,840 –> 01:10:48,910 LESSONS FOR PERHAPS THE NEW
1537 01:10:47,375 –> 01:10:50,178 INVESTORS WHO ARE NOT
1538 01:10:48,977 –> 01:10:51,646 NECESSARILY IN BERKSHIRE
1539 01:10:50,245 –> 01:10:52,580 HATHAWAY BUT PEOPLE WHO HAVE
1540 01:10:51,713 –> 01:10:54,282 ENTERED THE STOCK MARKET IN THE
1541 01:10:52,647 –> 01:10:55,650 PAST YEAR, I THINK THERE HAVE
1542 01:10:54,349 –> 01:10:56,785 BEEN A RECORD NUMBER THAT HAVE
1543 01:10:55,717 –> 01:10:58,353 ENTERED THE STOCK MARKET.
1544 01:10:56,852 –> 01:11:00,221 I’LL HAVE A COUPLE OF EXAMPLES
1545 01:10:58,420 –> 01:11:05,594 FOR THEM AND THEN WE’LL SWING
1546 01:11:00,288 –> 01:11:09,097 INTO A Q&A LED BY BECKY QUICK,
1547 01:11:05,661 –> 01:11:11,800 WHO’S LOOKED AT THOUSANDS OF
1548 01:11:09,164 –> 01:11:12,967 QUESTIONS THAT HAVE BEEN
1549 01:11:11,867 –> 01:11:14,135 SUBMITTED BUT MORE CAN BE
1550 01:11:13,034 –> 01:11:19,941 SUBMITTED DURING THIS MEETING
1551 01:11:14,202 –> 01:11:21,743 AND WE WILL PUT UP ON CAMERA
1552 01:11:20,008 –> 01:11:22,544 FROM TIME TO TIME THE WAY YOU
1553 01:11:21,810 –> 01:11:24,045 CAN COMMUNICATE DIRECTLY WITH
1554 01:11:22,611 –> 01:11:25,947 HER IF YOU WANT TO SEND
1555 01:11:24,112 –> 01:11:28,050 QUESTIONS IN DURING THE MEETING.
1556 01:11:26,014 –> 01:11:28,317 SHE GOT FLOODED WITH THEM LAST
1557 01:11:28,117 –> 01:11:30,452 TIME.
1558 01:11:28,384 –> 01:11:31,720 SHE MIRACULOUSLY KEEPS SORTING
1559 01:11:30,519 –> 01:11:33,789 THEM OUT.
1560 01:11:31,787 –> 01:11:35,090 SO FEEL FREE TO SEND IN A
1561 01:11:33,856 –> 01:11:37,059 QUESTION AND WE WILL HAVE A
1562 01:11:35,157 –> 01:11:37,359 QUESTION PERIOD FOR ABOUT 3 1/2
1563 01:11:37,126 –> 01:11:41,029 HOURS.
1564 01:11:37,426 –> 01:11:44,900 THEN WE WILL FINALLY HAVE THE
1565 01:11:41,096 –> 01:11:47,302 ANNUAL MEETING, WHICH WON’T TAKE
1566 01:11:44,967 –> 01:11:50,271 LONG, AT THE END.
1567 01:11:47,369 –> 01:11:52,240 SO WITH THAT, I WOULD LIKE TO
1568 01:11:50,338 –> 01:11:55,477 FIRST INTRODUCE THE THREE VICE
1569 01:11:52,307 –> 01:11:57,112 CHAIR MEN OF BERKSHIRE HATHAWAY.
1570 01:11:55,544 –> 01:11:58,680 I’LL TELL YOU JUST A LITTLE BIT
1571 01:11:57,179 –> 01:12:03,118 ABOUT THEM AND THEN I’LL HAVE A
1572 01:11:58,747 –> 01:12:04,553 MILD SURPRISE FOR YOU AT THE END
1573 01:12:03,185 –> 01:12:08,323 PERHAPS.
1574 01:12:04,620 –> 01:12:14,763 ON MY LEFT IS CHARLIE MUNGER,
1575 01:12:08,389 –> 01:12:21,069 AND I MET CHARLIE 62 YEARS AGO.
1576 01:12:14,830 –> 01:12:21,970 HE WAS PRACTICING LAW IN LOS
1577 01:12:21,136 –> 01:12:23,671 ANGELES.
1578 01:12:22,037 –> 01:12:27,409 HE WAS BUILDING A HOUSE AT THAT
1579 01:12:23,738 –> 01:12:29,944 TIME A FEW MILES FROM HERE, AND
1580 01:12:27,476 –> 01:12:30,679 62 YEARS LATER HE’S STILL LIVING
1581 01:12:30,011 –> 01:12:31,747 IN THE SAME HOUSE.
1582 01:12:30,746 –> 01:12:35,517 KIND OF INTERESTING BECAUSE I
1583 01:12:31,813 –> 01:12:37,252 WAS BUYING A HOUSE JUST A FEW
1584 01:12:35,584 –> 01:12:38,620 MONTHS BEFORE 62 YEARS AGO AND
1585 01:12:37,319 –> 01:12:38,820 I’M STILL LIVING IN THE SAME
1586 01:12:38,687 –> 01:12:41,489 HOUSE.
1587 01:12:38,887 –> 01:12:43,425 SO YOU’VE GOT A COUPLE OF FAIRLY
1588 01:12:41,556 –> 01:12:48,663 PECULIAR GUYS JUST TO START WITH
1589 01:12:43,492 –> 01:12:51,266 IN TERMS OF THEIR LOVE AFFAIR
1590 01:12:48,730 –> 01:12:56,505 WITH THEIR HOMES.
1591 01:12:51,333 –> 01:12:58,039 AND CHARLIE – CHARLIE AND I HIT
1592 01:12:56,572 –> 01:13:02,844 IT OFF IMMEDIATELY.
1593 01:12:58,106 –> 01:13:04,446 I WOULD SAY HE’S – HE’S
1594 01:13:02,911 –> 01:13:06,615 PROBABLY THE VICE CHAIRMAN IN
1595 01:13:04,513 –> 01:13:08,683 CHARGE OF CULTURE, AMONG OTHER
1596 01:13:06,682 –> 01:13:10,618 THINGS, BUT IF I EVER WANT TO
1597 01:13:08,750 –> 01:13:12,921 GET QUESTIONS ABOUT WHERE TRUE
1598 01:13:10,685 –> 01:13:16,458 NORTH IS, I TALK TO CHARLIE AND
1599 01:13:12,988 –> 01:13:18,460 HE HAS BEEN AN ENORMOUS HELP.
1600 01:13:16,525 –> 01:13:20,262 HE’S DONE IT WITH A LOT FEWER
1601 01:13:18,527 –> 01:13:22,197 HOURS AND A LOT LESS TALKING AND
1602 01:13:20,329 –> 01:13:24,566 EVERYTHING THAT I’VE HAD, BUT
1603 01:13:22,264 –> 01:13:26,134 HE’S CONTRIBUTED IN AN
1604 01:13:24,633 –> 01:13:29,805 INCREDIBLE WAY TO BERKSHIRE.
1605 01:13:26,201 –> 01:13:32,374 SO CHARLIE’S BEEN OUT HERE IN
1606 01:13:29,871 –> 01:13:38,113 LOS ANGELES FOR 60 PLUS YEARS.
1607 01:13:32,441 –> 01:13:41,449 ON MY RIGHT, YOUR LEFT, I HAVE
1608 01:13:38,180 –> 01:13:44,986 THE VICE CHAIRMAN IN CHARGE OF
1609 01:13:41,516 –> 01:13:46,621 EVERYTHING EXCEPT INSURANCE AND
1610 01:13:45,053 –> 01:13:51,393 INVESTMENTS, GREG ABEL.
1611 01:13:46,688 –> 01:13:52,461 GREG WAS BORN AND RAISED IN
1612 01:13:51,460 –> 01:13:53,028 EDMONTON, ALBERTA.
1613 01:13:52,528 –> 01:13:55,764 CANADIAN.
1614 01:13:53,095 –> 01:13:58,934 PLAYS HOCKEY.
1615 01:13:55,831 –> 01:14:02,404 80-YEAR-OLD, PLAYS HOCKEY.
1616 01:13:59,001 –> 01:14:05,474 AND HE CAME TO THE UNITED STATES
1617 01:14:02,471 –> 01:14:10,645 SOMETIME AFTER HE GRADUATED FROM
1618 01:14:05,541 –> 01:14:15,483 COLLEGE IN CANADA AND HE IS IN
1619 01:14:10,712 –> 01:14:18,653 CHARGE OF A BUSINESS WHICH HAS
1620 01:14:15,550 –> 01:14:22,324 WELL OVER 150 BILLION IN SALES
1621 01:14:18,720 –> 01:14:26,528 AND EMPLOYS 200 – MORE THAN
1622 01:14:22,391 –> 01:14:26,862 250,000, PROBABLY 275,000
1623 01:14:26,595 –> 01:14:29,697 PEOPLE.
1624 01:14:26,929 –> 01:14:31,433 AND DOES A MUCH BETTER JOB AT
1625 01:14:29,764 –> 01:14:31,900 DOING THAT THAN I WAS DOING
1626 01:14:31,500 –> 01:14:39,007 PREVIOUSLY.
1627 01:14:31,967 –> 01:14:40,408 AND ON MY FAR LEFT, YOUR RIGHT,
1628 01:14:39,074 –> 01:14:42,110 WE HAVE AJIT JAIN.
1629 01:14:40,475 –> 01:14:44,045 AJIT WAS BORN AND RAISED IN
1630 01:14:42,177 –> 01:14:44,346 INDIA AND GRADUATED FROM COLLEGE
1631 01:14:44,112 –> 01:14:49,317 THERE.
1632 01:14:44,413 –> 01:14:52,420 I MET AJIT ON A SATURDAY IN
1633 01:14:49,384 –> 01:14:54,222 1986, AND I’VE BEEN IN THE
1634 01:14:52,487 –> 01:14:55,190 INSURANCE BUSINESS – BERKSHIRE
1635 01:14:54,289 –> 01:14:56,491 HAD BEEN IN THE INSURANCE
1636 01:14:55,257 –> 01:14:58,326 BUSINESS FOR A WHILE.
1637 01:14:56,558 –> 01:14:59,528 I WAS STUMBLING AROUND IN A
1638 01:14:58,393 –> 01:15:01,229 NUMBER OF WAYS.
1639 01:14:59,595 –> 01:15:03,298 AJIT CAME INTO THE OFFICE.
1640 01:15:01,296 –> 01:15:06,334 SATURDAY I WAS OPENING THE MAIL.
1641 01:15:03,365 –> 01:15:08,069 I SAID, YOU KNOW, ABOUT
1642 01:15:06,401 –> 01:15:11,339 INSURANCE AND HE SAID, NOTHING.
1643 01:15:08,136 –> 01:15:13,975 I SAID, WELL, NOBODY’S PERFECT.
1644 01:15:11,406 –> 01:15:15,443 LET’S TALK ABOUT IT SOME.
1645 01:15:14,042 –> 01:15:18,513 AND BY THE END OF THE MORNING I
1646 01:15:15,510 –> 01:15:21,249 KNEW I HAD SOMEBODY THAT WAS
1647 01:15:18,580 –> 01:15:23,118 GOING TO BUILD A GREAT INSURANCE
1648 01:15:21,316 –> 01:15:25,754 BUSINESS, AND STARTING FROM THAT
1649 01:15:23,185 –> 01:15:29,657 POINT THIS IMPROBABLE LITTLE
1650 01:15:25,821 –> 01:15:31,526 COMPANY IN OMAHA BECAME THE
1651 01:15:29,724 –> 01:15:33,695 LARGEST PROPERTY CASUALTY
1652 01:15:31,593 –> 01:15:33,928 COMPANY IN THE WORLD IN TERMS OF
1653 01:15:33,762 –> 01:15:36,197 NETWORK.
1654 01:15:33,995 –> 01:15:38,767 IT WRITES RISKS THAT – IT
1655 01:15:36,264 –> 01:15:42,437 WRITES RISKS OCCASIONALLY AND IN
1656 01:15:38,834 –> 01:15:43,104 A 24-HOUR PERIOD THAT OTHER
1657 01:15:42,504 –> 01:15:44,172 COMPANIES SIMPLY COULDN’T TAKE
1658 01:15:43,171 –> 01:15:46,141 ON THEMSELVES.
1659 01:15:44,239 –> 01:15:47,742 THEY’D HAVE TO ASSEMBLE OTHER
1660 01:15:46,208 –> 01:15:51,613 PEOPLE AND IT WOULD TAKE THEM A
1661 01:15:47,809 –> 01:15:52,547 LONG TIME TO COME TO A DECISION.
1662 01:15:51,680 –> 01:15:53,248 THAT WAS VARIOUS AT OTHER TIMES
1663 01:15:52,614 –> 01:15:54,849 IN THE PAST.
1664 01:15:53,315 –> 01:15:57,586 NOT SO IMPORTANT NOW.
1665 01:15:54,916 –> 01:15:59,020 HE’S BUILT AN INCREDIBLE – THE
1666 01:15:57,653 –> 01:16:00,355 WORLD’S LEADING PROPERTY AND
1667 01:15:59,087 –> 01:16:05,827 CASUALTY INSURANCE COMPANY.
1668 01:16:00,422 –> 01:16:08,163 SO HERE WE HAVE CHARLIE FROM
1669 01:16:05,894 –> 01:16:09,798 L.A., 60 SOME YEARS.
1670 01:16:08,230 –> 01:16:11,966 WE’VE GOT GREG FROM CANADA.
1671 01:16:09,865 –> 01:16:16,004 WE’VE GOT AJIT FROM INDIA AND
1672 01:16:12,033 –> 01:16:22,010 THE ONE THING IN COMMON THAT
1673 01:16:16,071 –> 01:16:22,344 THESE THREE FELLOWS HAVE ASIDE
1674 01:16:22,077 –> 01:16:24,479 F
1675 01:16:22,410 –> 01:16:26,981 BERKSHIRE AND DOING A GREAT JOB,
1676 01:16:24,546 –> 01:16:28,883 THE AT ONE PERIOD OF TIME OR
1677 01:16:27,048 –> 01:16:31,820 ANOTHER THEY LIVED WITHIN A MILE
1678 01:16:28,950 –> 01:16:38,159 OF ME IN OMAHA, NEBRASKA.
1679 01:16:31,887 –> 01:16:40,862 AND CHARLIE IN 1934 MOVED ABOUT
1680 01:16:38,226 –> 01:16:43,498 100 YARDS AWAY FROM WHERE I NOW
1681 01:16:40,929 –> 01:16:45,700 LIVED AND WENT TO HIGH SCHOOL,
1682 01:16:43,565 –> 01:16:46,901 EVENTUALLY WENT INTO THE SERVICE
1683 01:16:45,767 –> 01:16:51,206 AND KNOWS THE NEIGHBORHOOD AS
1684 01:16:46,968 –> 01:16:52,640 WELL AS I DO.
1685 01:16:51,273 –> 01:16:58,713 WENT TO THE SAME GRADE SCHOOL MY
1686 01:16:52,707 –> 01:17:02,517 KIDS WENT TO AND SO ON.
1687 01:16:58,780 –> 01:17:04,152 GREG SPENT SIGNIFICANT TIME IN
1688 01:17:02,584 –> 01:17:06,788 LIVING IN OMAHA.
1689 01:17:04,219 –> 01:17:10,959 LIVED ABOUT FIVE OR SIX BLOCKS
1690 01:17:06,855 –> 01:17:11,226 FROM ME AND NOW LIVES IN DES
1691 01:17:11,026 –> 01:17:13,594 MOINES.
1692 01:17:11,293 –> 01:17:17,065 AND AJIT WAS IN OMAHA, ABOUT A
1693 01:17:13,661 –> 01:17:17,265 MILE AWAY, FOR A COUPLE OF
1694 01:17:17,132 –> 01:17:19,400 YEARS.
1695 01:17:17,332 –> 01:17:22,337 SO WE STARTED IN VERY DIFFERENT
1696 01:17:19,467 –> 01:17:23,905 PLACES AND SORT OF CAME TOGETHER
1697 01:17:22,404 –> 01:17:28,743 AND NOW GO OUR SEPARATE WAYS,
1698 01:17:23,972 –> 01:17:31,680 BUT IT’S ALL WORKED VERY WELL.
1699 01:17:28,810 –> 01:17:31,946 I WOULD – AND YOU’LL HEAR FROM
1700 01:17:31,747 –> 01:17:33,514 THEM.
1701 01:17:32,013 –> 01:17:34,749 I URGE YOU TO SEND QUESTIONS IF
1702 01:17:33,581 –> 01:17:36,517 YOU’RE SAYING YOU COULD DIRECT
1703 01:17:34,816 –> 01:17:39,020 THEM TO ME OR YOU COULD DIRECT
1704 01:17:36,584 –> 01:17:41,322 THEM TO ANY ONE OF THE OTHER
1705 01:17:39,086 –> 01:17:42,490 THREE AND IT WILL BE A BIG
1706 01:17:41,389 –> 01:17:47,696 RELIEF TO ME IF YOU DIRECT A
1707 01:17:42,557 –> 01:17:49,264 FAIR NUMBER TO THE OTHER PEOPLE.
1708 01:17:47,763 –> 01:17:53,468 SO WE THIS MORNING, AS WE ALWAYS
1709 01:17:49,331 –> 01:17:55,737 DO, WE ALWAYS DO IT ON A S
1710 01:17:53,535 –> 01:17:57,238 SATURDAY, WE PUBLISHED OUR 10Q
1711 01:17:55,804 –> 01:17:59,441 WHICH GAVE THE QUARTERLY
1712 01:17:57,305 –> 01:18:02,043 EARNINGS THAT’S UP ON OUR
1713 01:17:59,508 –> 01:18:03,477 WEBSITE, BERKSHIREHATHAWAY.COM.
1714 01:18:02,110 –> 01:18:07,549 AND IT’S VERY INTERESTING.
1715 01:18:03,544 –> 01:18:08,850 WE PUT THESE OUT ON SATURDAY
1716 01:18:07,616 –> 01:18:10,618 MORNING, THAT’S NOT BECAUSE THE
1717 01:18:08,917 –> 01:18:12,286 MEDIA LIKES US TO DO IT THAT
1718 01:18:10,685 –> 01:18:14,055 WAY, THAT’S NOT BECAUSE THE
1719 01:18:12,353 –> 01:18:16,057 ANALYSTS LIKE TO DO IT THAT WAY,
1720 01:18:14,122 –> 01:18:22,430 BUT WE WANT TO GIVE YOU THE
1721 01:18:16,124 –> 01:18:23,664 MAXIMUM TIME TO DYE IGEST AN AW
1722 01:18:22,497 –> 01:18:24,766 LOT OF INFORMATION THAT’S IN
1723 01:18:23,731 –> 01:18:26,701 THAT 10Q.
1724 01:18:24,833 –> 01:18:27,602 IT CAN’T BE SUMMARIZED IN A
1725 01:18:26,768 –> 01:18:30,639 PERFECT WAY.
1726 01:18:27,669 –> 01:18:32,373 WE’LL GIVE YOU SOME SUMMARY
1727 01:18:30,705 –> 01:18:33,207 FIGURES, BUT THEY’RE REALLY A
1728 01:18:32,440 –> 01:18:36,611 STUDENT OF THE PLACE.
1729 01:18:33,274 –> 01:18:38,813 MOST OF OUR INVESTORS SIMPLY
1730 01:18:36,678 –> 01:18:42,650 HAVE FAITH IN THESE OTHER THREE
1731 01:18:38,880 –> 01:18:44,919 FELLOWS TO DO A GOOD JOB.
1732 01:18:42,717 –> 01:18:47,488 AND IT’S NOT A MISPLACED FAITH,
1733 01:18:44,986 –> 01:18:50,859 BUT IF YOU REALLY ENJOY GOING
1734 01:18:47,555 –> 01:18:54,429 INTO THE DETAILS AND YOU WANT TO
1735 01:18:50,926 –> 01:18:56,998 UNDERSTAND THE NUTS AND BOLTS OF
1736 01:18:54,496 –> 01:19:00,335 THE VARIOUS OPERATIONS, YOU
1737 01:18:57,065 –> 01:19:03,371 SHOULD READ THAT 10Q.
1738 01:19:00,402 –> 01:19:04,439 IT WILL TAKE YOU – IT MAY TAKE
1739 01:19:03,438 –> 01:19:06,307 YOU A COUPLE OF HOURS.
1740 01:19:04,506 –> 01:19:08,042 I MEAN, IT’S NOT A SMALL
1741 01:19:06,374 –> 01:19:09,477 INVESTMENT OF TIME, BUT IT’S GOT
1742 01:19:08,109 –> 01:19:11,245 A LOT OF INFORMATION ABOUT ALL
1743 01:19:09,544 –> 01:19:13,881 OF OUR VARIOUS BUSINESSES AND
1744 01:19:11,312 –> 01:19:16,417 FOR THOSE OF YOU WHO ARE
1745 01:19:13,948 –> 01:19:20,922 BUSINESS STUDENTS OF A SORT, I
1746 01:19:16,484 –> 01:19:23,458 RECOMMEND YOU GO TO IT.
1747 01:19:20,989 –> 01:19:25,593 THE SUMMARY FIGURES YOU SEE
1748 01:19:23,525 –> 01:19:29,664 HERE, WHICH ARE THE ONES WE PUT
1749 01:19:25,660 –> 01:19:31,900 IN OUR PRESS RELEASE, SHOW KIND
1750 01:19:29,730 –> 01:19:32,133 OF AN INTERESTING PAIR OF
1751 01:19:31,967 –> 01:19:36,337 NUMBERS.
1752 01:19:32,200 –> 01:19:38,906 DOWN THERE AT THE BOTTOM.
1753 01:19:36,404 –> 01:19:40,474 YOU KNOW, WE HAVE – LAST
1754 01:19:38,973 –> 01:19:41,642 YEAR – WHEN YOU SEE THOSE
1755 01:19:40,541 –> 01:19:43,344 BRACKETS AROUND NUMBERS, YOU’VE
1756 01:19:41,709 –> 01:19:47,815 GOT TO START WORRYING.
1757 01:19:43,411 –> 01:19:50,752 AND FIRST QUARTER WE ACTUALLY
1758 01:19:47,882 –> 01:19:50,985 SHOWED A LOSS OF ALMOST $50
1759 01:19:50,819 –> 01:19:52,286 BILLION.
1760 01:19:51,052 –> 01:19:55,723 I NEVER THOUGHT I WOULD SEE A
1761 01:19:52,353 –> 01:19:58,159 FIGURE LIKE THAT.
1762 01:19:55,790 –> 01:20:00,228 THINKING BACK, I WAS TRYING TO
1763 01:19:58,226 –> 01:20:01,629 REMEMBER WHETHER I HAD GONE ON
1764 01:20:00,295 –> 01:20:03,464 VACATION DURING THAT QUARTER AND
1765 01:20:01,696 –> 01:20:05,400 TURNED THINGS OVER TO THE OTHER
1766 01:20:03,531 –> 01:20:07,602 GUYS OR WHAT?
1767 01:20:05,467 –> 01:20:08,236 BUT I CHECKED THE CALENDAR AND
1768 01:20:07,669 –> 01:20:10,505 THAT WAS ME.
1769 01:20:08,303 –> 01:20:15,977 THAT FIGURE THIS YEAR IS A
1770 01:20:10,572 –> 01:20:18,346 POSITIVE FIGURE UP 11.7 BILLION,
1771 01:20:16,044 –> 01:20:20,515 AND NEITHER FIGURE IS VERY
1772 01:20:18,413 –> 01:20:22,817 MEANINGFUL IN ITSELF.
1773 01:20:20,582 –> 01:20:25,720 THE ACCOUNTING STANDARDS BOARD A
1774 01:20:22,884 –> 01:20:28,289 FEW YEARS AGO FOR MANY, MANY,
1775 01:20:25,787 –> 01:20:33,194 MANY, MANY YEARS UNREALIZED
1776 01:20:28,356 –> 01:20:35,863 GAINS OR LOSSES OF A COMPANY
1777 01:20:33,261 –> 01:20:37,432 LIKE BERKSHIRE WHERE THEY MADE
1778 01:20:35,930 –> 01:20:39,066 ADJUSTMENTS TO THE KNELT WORTH
1779 01:20:37,499 –> 01:20:40,001 OF BERKSHIRE BUT THEY DID NOT
1780 01:20:39,133 –> 01:20:43,338 RUN THROUGH EARNINGS.
1781 01:20:40,068 –> 01:20:46,674 AND A FEW YEARS AGO THE RULE WAS
1782 01:20:43,405 –> 01:20:50,444 CHANGED SO THAT EVERY TIME
1783 01:20:46,741 –> 01:20:52,247 STOCKS GO UP OR DOWN, IT GOES
1784 01:20:50,511 –> 01:20:54,048 THROUGH OUR EARNINGS ACCOUNT.
1785 01:20:52,314 –> 01:20:57,085 SO IN THE FIRST QUARTER OF LAST
1786 01:20:54,115 –> 01:21:02,890 YEAR WHEN STOCKS WENT DOWN A
1787 01:20:57,152 –> 01:21:04,425 LOT, WE HAD A HUGE SUM OF
1788 01:21:02,957 –> 01:21:07,261 UNREALIZED – WELL, IT WAS A
1789 01:21:04,492 –> 01:21:08,763 REDUCTION OF UNREALIZED GAINS
1790 01:21:07,328 –> 01:21:10,398 AND WHEN YOU START SAYING THINGS
1791 01:21:08,830 –> 01:21:14,869 LIKE THAT YOU START LOSING
1792 01:21:10,465 –> 01:21:16,070 PEOPLE BUT THAT ITEM, MILD PLUS
1793 01:21:14,936 –> 01:21:17,939 THIS YEAR.
1794 01:21:16,137 –> 01:21:20,341 IF WE REPORTED EARNINGS DAILY
1795 01:21:18,006 –> 01:21:23,011 YOU WOULD SEE EARNINGS ONE DAY
1796 01:21:20,408 –> 01:21:23,878 OF 3 BILLION, NEXT DAY MINUS 2
1797 01:21:23,078 –> 01:21:24,779 BILLION.
1798 01:21:23,945 –> 01:21:26,280 IT’S AN ACCOUNTING TREATMENT
1799 01:21:24,846 –> 01:21:28,316 THAT WE DON’T THINK IS
1800 01:21:26,347 –> 01:21:33,821 PARTICULARLY APPROPRIATE BUT
1801 01:21:28,383 –> 01:21:36,724 IT’S REQUIRED AND WE’VE
1802 01:21:33,888 –> 01:21:39,427 EXPLAINED VERY CAREFULLY AND I
1803 01:21:36,791 –> 01:21:40,929 TRY TO WRITE IN MY LETTER AND
1804 01:21:39,494 –> 01:21:42,430 EXPLAIN I DON’T THINK THAT’S THE
1805 01:21:40,996 –> 01:21:45,099 WAY TO LOOK AT BERKSHIRE.
1806 01:21:42,497 –> 01:21:46,267 WE THINK OVER TIME WE WILL HAVE
1807 01:21:45,166 –> 01:21:48,636 INVESTMENT GAINS FOR REASONS I
1808 01:21:46,334 –> 01:21:50,538 LAY OUT IN MY LETTER.
1809 01:21:48,703 –> 01:21:53,307 OVER A PERIOD OF TIME THE
1810 01:21:50,605 –> 01:21:55,042 COMPANIES WE OWN STOCK IN,
1811 01:21:53,374 –> 01:21:57,345 RETAIN EARNINGS, AND THEY USE
1812 01:21:55,109 –> 01:21:58,846 THOSE REINVESTED EARNINGS
1813 01:21:57,412 –> 01:22:00,648 USUALLY TO OUR BENEFIT AND THAT
1814 01:21:58,913 –> 01:22:00,982 SHOWS UP IN CAPITAL GAINS SOME
1815 01:22:00,715 –> 01:22:02,650 DAY.
1816 01:22:01,049 –> 01:22:08,156 BUT REPORTED EARNINGS FOR A
1817 01:22:02,717 –> 01:22:10,892 COMPANY THAT HAS A LOT OF COMMON
1818 01:22:08,223 –> 01:22:12,927 STOCKS, MARGINABLE STOCKS LIKE
1819 01:22:10,959 –> 01:22:13,695 OURS, YOU DON’T WANT TO LOOK AT
1820 01:22:12,994 –> 01:22:17,398 THE FINAL LINE.
1821 01:22:13,762 –> 01:22:18,166 YOU DO WANT TO LOOK AT THE
1822 01:22:17,465 –> 01:22:22,003 OPERATING EARNINGS LINE.
1823 01:22:18,233 –> 01:22:25,507 NOW I WOULD SAY THAT IF YOU HAD
1824 01:22:22,070 –> 01:22:27,074 TAKEN THE FIRST TWO MONTHS OF
1825 01:22:25,573 –> 01:22:28,509 LAST YEAR AND COMPARED TO THE
1826 01:22:27,141 –> 01:22:29,777 FIRST TWO MONTHS OF THIS YEAR,
1827 01:22:28,576 –> 01:22:31,445 THOSE FIGURES WOULD HAVE BEEN
1828 01:22:29,844 –> 01:22:35,683 QUITE COMPARABLE, BUT OF COURSE
1829 01:22:31,512 –> 01:22:37,218 IN MARCH OF 2020 THE ECONOMY WAS
1830 01:22:35,750 –> 01:22:41,389 SHUT DOWN IN EFFECT.
1831 01:22:37,285 –> 01:22:43,624 I MEAN, IT WAS A SELF-INDUCED
1832 01:22:41,456 –> 01:22:49,063 RECESSION, AND AN ABRUPT ONE,
1833 01:22:43,691 –> 01:22:53,668 VERY ABRUPT.
1834 01:22:49,130 –> 01:22:57,405 SO THE ECONOMY WENT OFF A CLIFF.
1835 01:22:53,735 –> 01:23:00,575 IN MARCH IT WAS RESURRECTED IN
1836 01:22:57,472 –> 01:23:06,080 AN EXTRAORDINARILY EFFECTIVE WAY
1837 01:23:00,642 –> 01:23:08,216 BY FEDERAL RESERVE ACTION AND
1838 01:23:06,147 –> 01:23:09,483 LATER ON THE FISCAL FRONT BY
1839 01:23:08,283 –> 01:23:20,361 CONGRESS, AND WE’LL GET INTO
1840 01:23:09,550 –> 01:23:24,532 THAT LATER, BUT THE FIGURE YOU
1841 01:23:20,428 –> 01:23:29,404 S
1842 01:23:24,599 –> 01:23:29,671 SEE, THE DIFFERENCE WAS MARCH
1843 01:23:29,471 –> 01:23:31,773 BASICALLY.
1844 01:23:29,738 –> 01:23:33,441 WHAT OUR BUSINESSES HAVE DONE
1845 01:23:31,840 –> 01:23:34,075 WE’LL GET INTO MORE SPECIFICS
1846 01:23:33,508 –> 01:23:35,143 LATER.
1847 01:23:34,142 –> 01:23:35,376 OUR BUSINESSES HAVE DONE QUITE
1848 01:23:35,210 –> 01:23:37,445 WELL.
1849 01:23:35,443 –> 01:23:40,348 THIS HAS BEEN A VERY, VERY, VERY
1850 01:23:37,512 –> 01:23:44,985 UNUSUAL RECESSION IN THAT IT’S
1851 01:23:40,415 –> 01:23:48,289 BEEN LOCALIZED AS THE INDUSTRY
1852 01:23:45,052 –> 01:23:51,625 TO AN EXTRAORDINARY EXTENT.
1853 01:23:48,356 –> 01:23:53,461 RIGHT NOW BUSINESS IS REALLY
1854 01:23:51,692 –> 01:23:55,263 VERY GOOD.
1855 01:23:53,528 –> 01:23:57,398 GREAT IN MANY SEGMENTS OF THE
1856 01:23:55,329 –> 01:23:58,900 ECONOMY WHICH WE’LL TALK ABOUT
1857 01:23:57,465 –> 01:24:00,901 LATER, BUT THERE’S STILL
1858 01:23:58,967 –> 01:24:03,438 PROBLEMS IF YOU’RE IN A FEW
1859 01:24:00,968 –> 01:24:05,940 TYPES OF BUSINESSES THAT HAVE
1860 01:24:03,505 –> 01:24:07,108 BEEN DECIMATED SUCH AS
1861 01:24:06,007 –> 01:24:07,308 INTERNATIONAL TRAVEL AND THE
1862 01:24:07,175 –> 01:24:09,077 SORT.
1863 01:24:07,375 –> 01:24:11,012 SO WITH THAT, WE’LL GO BACK TO
1864 01:24:09,143 –> 01:24:13,014 THE FIGURES LATER ON.
1865 01:24:11,079 –> 01:24:13,581 PERHAPS IN SOME OF THE
1866 01:24:13,081 –> 01:24:16,517 QUESTIONS.
1867 01:24:13,648 –> 01:24:18,452 I WOULD LIKE TO JUST GO OVER TWO
1868 01:24:16,584 –> 01:24:22,890 ITEMS THAT WOULD LIKE
1869 01:24:18,519 –> 01:24:25,993 PARTICULARLY NEW ENTRANTS TO THE
1870 01:24:22,957 –> 01:24:29,230 STOCK MARKET TO PONDER JUST A
1871 01:24:26,060 –> 01:24:33,267 BIT BEFORE THEY TRY AND DO 30 OR
1872 01:24:29,297 –> 01:24:35,736 40 TRADES A DAY IN ORDER TO
1873 01:24:33,334 –> 01:24:40,608 PROFIT FROM WHAT LOOKS LIKE A
1874 01:24:35,803 –> 01:24:45,980 VERY EASY GAME.
1875 01:24:40,675 –> 01:24:52,587 I WOULD LIKE TO GO TO SLIDE L1.
1876 01:24:46,046 –> 01:24:57,758 PUT THAT UP.
1877 01:24:52,654 –> 01:24:59,793 AND THESE – ON MARCH 31st I RAN
1878 01:24:57,825 –> 01:25:05,699 OFF A LIST OF THE 20 LARGEST
1879 01:24:59,860 –> 01:25:07,568 COMPANIES IN THE WORLD BY STOCK
1880 01:25:05,766 –> 01:25:09,303 MARKET VALUE, AND THOSE NAMES, A
1881 01:25:07,635 –> 01:25:10,771 GOOD MANY OF WHICH WILL BE
1882 01:25:09,370 –> 01:25:13,541 FAMILIAR TO YOU, BUT THEY WERE
1883 01:25:10,838 –> 01:25:16,377 LED BY APPLE THAT’S SLIGHTLY
1884 01:25:13,608 –> 01:25:18,412 OVER 2 TRILLION.
1885 01:25:16,444 –> 01:25:21,149 AND IT WENT DOWN TO THE NUMBER
1886 01:25:18,479 –> 01:25:25,519 20th WAS WORTH 330 ODD BILLION.
1887 01:25:21,216 –> 01:25:27,121 THOSE ARE THE 20 LARGEST
1888 01:25:25,586 –> 01:25:29,157 COMPANIES IN THE WORLD BY MARKET
1889 01:25:27,188 –> 01:25:30,858 VALUE ON MARCH 31st.
1890 01:25:29,224 –> 01:25:33,327 NOW IF I HAD A LITTLE – I WAS
1891 01:25:30,925 –> 01:25:35,229 HOPING I COULD GET A LITTLE QUIZ
1892 01:25:33,394 –> 01:25:39,500 MACHINE SO I COULD HAVE EVERYONE
1893 01:25:35,296 –> 01:25:42,069 WEIGH IN ON THIS ANSWER AND WE
1894 01:25:39,567 –> 01:25:43,671 COULD FLASH IT UP LATER.
1895 01:25:42,136 –> 01:25:45,373 WHAT I WOULD LIKE YOU TO DO IS
1896 01:25:43,738 –> 01:25:49,477 LOOK AT THAT LIST.
1897 01:25:45,440 –> 01:25:52,513 STARTS OFF WITH APPLE, SAUDI
1898 01:25:49,544 –> 01:25:53,514 ARAMCO’S A SPECIALIZED
1899 01:25:52,580 –> 01:25:55,783 COUNTRY – COMPANY.
1900 01:25:53,581 –> 01:25:58,052 I DON’T KNOW WHETHER IT’S 95%
1901 01:25:55,850 –> 01:26:01,689 OWNED BY THE GOVERNMENT OR WHAT,
1902 01:25:58,119 –> 01:26:05,293 BUT IT’S ESSENTIALLY A COUNTRY
1903 01:26:01,756 –> 01:26:05,893 FOR SALE IN TERMS OF THAT
1904 01:26:05,360 –> 01:26:09,030 BUSINESS.
1905 01:26:05,960 –> 01:26:10,464 THE TOP – OF THE TOP SIX
1906 01:26:09,097 –> 01:26:10,898 COMPANIES, FIVE OF THEM ARE
1907 01:26:10,531 –> 01:26:14,268 AMERICAN.
1908 01:26:10,965 –> 01:26:17,838 I CAN HEAR PEOPLE SAY AMERICA
1909 01:26:14,335 –> 01:26:22,143 HAS – IT’S NOT WORKING VERY
1910 01:26:17,905 –> 01:26:24,111 WELL OR SOMETHING OF THE SORT.
1911 01:26:22,210 –> 01:26:25,846 SIX TOP COMPANIES IN VALUE, FIVE
1912 01:26:24,178 –> 01:26:27,214 OF THEM ARE IN THE UNITED STATES
1913 01:26:25,913 –> 01:26:29,617 AND IF YOU THINK ABOUT IT, WE
1914 01:26:27,281 –> 01:26:29,817 TALKED A LITTLE ABOUT THIS LAST
1915 01:26:29,684 –> 01:26:34,288 YEAR.
1916 01:26:29,884 –> 01:26:36,857 IN 1790 WE HAD 1/2 OF 1% OF THE
1917 01:26:34,355 –> 01:26:40,294 WORLD’S POPULATION.
1918 01:26:36,924 –> 01:26:42,163 A LITTLE LESS.
1919 01:26:40,361 –> 01:26:43,531 OOF,000 PEOPLE WERE SLAVES.
1920 01:26:42,230 –> 01:26:46,601 IRELAND HAD MORE PEOPLE THAN THE
1921 01:26:43,598 –> 01:26:50,805 UNITED STATES HAD.
1922 01:26:46,668 –> 01:26:53,641 RUSSIA HAD AS MANY TIMES AS –
1923 01:26:50,872 –> 01:26:53,874
UKRAINE HAD TWICE AS MANY
1924 01:26:53,708 –> 01:26:57,845 PEOPLE.
1925 01:26:53,941 –> 01:27:02,216 WHAT DID WE HAVE?
1926 01:26:57,912 –> 01:27:04,051 WE HAD A MAP OF THE FUTURE,
1927 01:27:02,283 –> 01:27:08,189 ASPIRATIONAL MAP THAT SOMEHOW
1928 01:27:04,118 –> 01:27:13,260 NOW ONLY 200 – WELL, AFTER THE
1929 01:27:08,256 –> 01:27:16,463 CONSTITUTION, 232 YEARS LATER
1930 01:27:13,327 –> 01:27:20,301 LEAVES SUS WITH FIVE OF THE TOP
1931 01:27:16,530 –> 01:27:21,969 SIX COMPANIES IN THE WORLD.
1932 01:27:20,368 –> 01:27:24,739 THAT’S NOT AN ACCIDENT AND IT’S
1933 01:27:22,036 –> 01:27:26,774 NOT BECAUSE WE WERE WAY SMARTER,
1934 01:27:24,806 –> 01:27:28,075 WAY STRONGER OR ANYTHING OF THE
1935 01:27:26,841 –> 01:27:32,747 SORT.
1936 01:27:28,142 –> 01:27:34,782 WE HAD GOOD SOIL, DECENT
1937 01:27:32,814 –> 01:27:37,351 CLIMATE, BUT SO DID SOME OF THE
1938 01:27:34,848 –> 01:27:43,024 OTHER COUNTRIES I NAMED.
1939 01:27:37,418 –> 01:27:45,059 THIS SYSTEM HAS WORKED VERY
1940 01:27:43,091 –> 01:27:48,696 WELL.
1941 01:27:45,126 –> 01:27:54,935 IMAGINE THINKING OF A COUNTRY
1942 01:27:48,763 –> 01:27:56,303 WITH 1/2 OF THE LIST.
1943 01:27:55,002 –> 01:27:58,706 WHAT I WOULD LIKE YOU TO DO IS
1944 01:27:56,370 –> 01:28:02,209 LOOK AT THAT LIST FOR A MINUTE
1945 01:27:58,773 –> 01:28:08,816 OR TWO IF YOU WANT TO AND THEN
1946 01:28:02,276 –> 01:28:09,183 MAKE AN ESTIMATE, YOUR YOEN OWN
1947 01:28:08,882 –> 01:28:14,254 GUEST.
1948 01:28:09,250 –> 01:28:14,555 HERE THEY ARE, THESE POWE
1949 01:28:14,321 –> 01:28:16,190 POWERHOUSES.
1950 01:28:14,622 –> 01:28:20,795 IT’S NOT GOING TO BE ALL 20.
1951 01:28:16,257 –> 01:28:22,163 IT MAY NOT BE ALL 20 TODAY OR
1952 01:28:20,862 –> 01:28:27,735 TOMORROW.
1953 01:28:22,230 –> 01:28:28,569 THIS WAS MARCH 31st, BUT WHAT
1954 01:28:27,802 –> 01:28:30,771 WOULD YOU GUESS?
1955 01:28:28,636 –> 01:28:32,239 THINK ABOUT THAT YOURSELF.
1956 01:28:30,838 –> 01:28:33,440 WOULD YOU PUT DOWN FIVE, EIGHT?
1957 01:28:32,306 –> 01:28:36,643 WHATEVER IT WOULD BE, I WOULD
1958 01:28:33,507 –> 01:28:41,482 NOW INVITE YOU TO LOOK AT SLIDE
1959 01:28:36,710 –> 01:28:45,786 2 – WELL, 2, WHICH GOES BACK A
1960 01:28:41,549 –> 01:28:51,625 LITTLE MORE THAN 30 YEARS.
1961 01:28:45,853 –> 01:28:54,261 LOOK AT THE TOP 20 FROM 1989 AND
1962 01:28:51,692 –> 01:28:55,696 IF YOU LOOK AT THE TOP 20 FROM
1963 01:28:54,328 –> 01:28:57,197 1989, THERE ARE TWO THINGS THAT
1964 01:28:55,763 –> 01:29:00,101 SHOULD GRAB YOUR INTEREST, AT
1965 01:28:57,264 –> 01:29:02,803 LEAST TWO.
1966 01:29:00,168 –> 01:29:05,706 NONE OF THE 20 FROM 30 YEARS AGO
1967 01:29:02,870 –> 01:29:08,976 ARE ON THE PRESENT LIST, NONE,
1968 01:29:05,773 –> 01:29:11,245 ZERO.
1969 01:29:09,043 –> 01:29:12,680 DUH, THERE WERE SIX U.K.
1970 01:29:11,312 –> 01:29:13,681 COMPANIES ON THE LIST AND THEIR
1971 01:29:12,747 –> 01:29:15,382 NAMES ARE FAMILIAR TO YOU.
1972 01:29:13,748 –> 01:29:21,756 WE HAVE GENERAL ELECTRIC, WE
1973 01:29:15,449 –> 01:29:28,329 HAVE EXXON, IBM CORP.
1974 01:29:21,823 –> 01:29:32,333 MERCK HAS DONE THEIR NUMBER.
1975 01:29:28,396 –> 01:29:35,102 YUN MADE IT.
1976 01:29:32,399 –> 01:29:38,906 I ASKED YOU TO PLAY THE QUIZ.
1977 01:29:35,169 –> 01:29:42,643 I DON’T THINK IT WILL BE ZERO
1978 01:29:38,973 –> 01:29:43,410 BUT IT IS A REMINDER OF WHAT
1979 01:29:42,710 –> 01:29:47,748 EXTRAORDINARY THINGS ARE GOING
1980 01:29:43,477 –> 01:29:49,617 TO HAPPEN, THINGS THAT SEEM
1981 01:29:47,815 –> 01:29:51,618 OBVIOUS TO YOU.
1982 01:29:49,684 –> 01:29:52,720 JAPAN HAD THIS WONDERFUL BULL
1983 01:29:51,685 –> 01:29:59,626 MARKET FOR A LONG TIME.
1984 01:29:52,787 –> 01:30:02,496 YOU HAD A NUMBER OF JAPANESE
1985 01:29:59,693 –> 01:30:07,134 COUPLES ON THE CASE.
1986 01:30:02,563 –> 01:30:08,936 UNITED STATES HAS THE 6, AND I
1987 01:30:07,200 –> 01:30:13,641 WOULD INVITE YOU TO LOOK AT ONE
1988 01:30:09,003 –> 01:30:14,141 OTHER THING AS YOU LOOK AT THIS
1989 01:30:13,708 –> 01:30:14,575 ADD
1990 01:30:14,208 –> 01:30:20,981 ADDRESS.
1991 01:30:14,642 –> 01:30:22,550 WE WEREN’T JUST KISS COVERING
1992 01:30:21,048 –> 01:30:23,684 CAPITALISM.
1993 01:30:22,617 –> 01:30:26,487 PEOPLE THOUGHT THEY WERE IN.
1994 01:30:23,751 –> 01:30:28,222 IT WAS NOT A BACKWARD TIME AND
1995 01:30:26,554 –> 01:30:30,624 IF YOU LOOKED AT THE TOP COMPANY
1996 01:30:28,288 –> 01:30:33,260 AT THAT TIME HAD A MARKET VALUE
1997 01:30:30,691 –> 01:30:37,064 OF 104 BILLION.
1998 01:30:33,327 –> 01:30:40,300 SO THE LARGEST COMPANY IN THE
1999 01:30:37,131 –> 01:30:43,937 WORLD OF TITLE IN JUST A SHADE
2000 01:30:40,367 –> 01:30:45,172 OVER 30 YEARS HAS GONE FROM 100
2001 01:30:44,004 –> 01:30:49,443 BILLION TO 2 TRILLION.
2002 01:30:45,239 –> 01:30:56,817 AT THE BOTTOM THE NUMBER 20 HAS
2003 01:30:49,510 –> 01:30:59,153 GONE FROM 34, A LITTLE OVER TEN
2004 01:30:56,884 –> 01:31:03,958 TIMES THAT.
2005 01:30:59,220 –> 01:31:06,694 THIS TELLS YOU WHAT’S HAPPENED.
2006 01:31:04,025 –> 01:31:08,028 IT TELLS YOU A LITTLE BIT ABOUT
2007 01:31:06,761 –> 01:31:10,064 INFLATION, BUT THIS WAS NOT A
2008 01:31:08,095 –> 01:31:10,331 HIGHLY INFLATIONARY PERIOD AS A
2009 01:31:10,131 –> 01:31:16,036 WHOLE.
2010 01:31:10,398 –> 01:31:19,139 BUT IT TELLS YOU THAT CAPITALISM
2011 01:31:16,103 –> 01:31:22,877 HAS WORKED INCREDIBLY WELL,
2012 01:31:19,206 –> 01:31:23,644 ESPECIALLY IF YOU’RE THE
2013 01:31:22,944 –> 01:31:28,516 CAPITALIST.
2014 01:31:23,711 –> 01:31:28,749 IT’S A PRETTY A STAUNDING
2015 01:31:28,583 –> 01:31:32,352 NUMBER.
2016 01:31:28,816 –> 01:31:36,524 DO YOU THINK YOU COULD TAKE 2
2017 01:31:32,419 –> 01:31:36,791 TRILLION FOR THE THE R FINE
2018 01:31:36,590 –> 01:31:38,158 COMPANIES.
2019 01:31:36,857 –> 01:31:39,527 THAT’S FOR THE LEADER.
2020 01:31:38,225 –> 01:31:42,229 IT SEEMS IMPOSSIBLE.
2021 01:31:39,594 –> 01:31:43,130 MAYBE IT IS IMPOSSIBLE.
2022 01:31:42,296 –> 01:31:45,899 WE WERE JUST AS SURE OF
2023 01:31:43,197 –> 01:31:48,869 OURSELVES AS INVESTORS OUT OF
2024 01:31:45,966 –> 01:31:59,246 WALL STREET WAS IN 1989 AS WE
2025 01:31:48,936 –> 01:32:00,047 ARE TODAY, BUT THE WORLD DIDN’T
2026 01:31:59,313 –> 01:32:03,350 CHANGE.
2027 01:32:00,114 –> 01:32:06,353 I’LL JUST GIVE YOU ONE OTHER
2028 01:32:03,417 –> 01:32:13,727 EXAMPLE YOU MIGHT PONDER.
2029 01:32:06,420 –> 01:32:17,498 ONE THING IT SHOWS IS THAT IT’S
2030 01:32:13,794 –> 01:32:18,565 A GREAT ARGUMENT.
2031 01:32:17,564 –> 01:32:19,900 THE AMAZING THING WAS TO BE
2032 01:32:18,632 –> 01:32:21,735 ABOARD A SHIP.
2033 01:32:19,967 –> 01:32:23,503 THEY WERE GOING TO A BETTER
2034 01:32:21,802 –> 01:32:28,208 PROMISED LAND, THEY DIDN’T KNOW
2035 01:32:23,570 –> 01:32:31,011 WHICH ONE THEY NIECELY GOT ON.
2036 01:32:28,275 –> 01:32:35,215 YOU OO OO GROUP.
2037 01:32:31,078 –> 01:32:36,383
THEY NEED U.S. EQUITIES, MY
2038 01:32:35,282 –> 01:32:40,187 PURPOSE.
2039 01:32:36,450 –> 01:32:44,391 DO A HOLDOVER, YEAR-TO-YEAR
2040 01:32:40,254 –> 01:32:53,533 PERIOD.
2041 01:32:44,458 –> 01:32:54,368
IF YOU THINK HELEN WILL
2042 01:32:53,600 –> 01:32:56,837 REBUILD THESE.
2043 01:32:54,435 –> 01:33:04,812 OVERALL EQUITIES WERE ABSOLUTELY
2044 01:32:56,904 –> 01:33:08,649 THE PLACE TO BE.
2045 01:33:04,879 –> 01:33:13,420 SECONDLY, PEOPLE GET ENORMOUSLY
2046 01:33:08,716 –> 01:33:15,122 ATTRACTED TO VARIOUS INDUSTRIES.
2047 01:33:13,487 –> 01:33:20,094 I MEAN, DO YOU THINK IF PEOPLE
2048 01:33:15,189 –> 01:33:26,800 SAY IT’S IN THE X, Y, Z COMPANY.
2049 01:33:20,161 –> 01:33:30,404 YOU CAN SEM I P OOs MP YOU KNOW,
2050 01:33:26,867 –> 01:33:34,942 IT’S THE PLACE TO BE.
2051 01:33:30,471 –> 01:33:37,211 SO BERKSHIRE HATHAWAY, WHERE WAS
2052 01:33:35,008 –> 01:33:43,450 THE PLACE TO BE IN 1903 WHEN MY
2053 01:33:37,277 –> 01:33:46,153 DAD WAS BORN IN 1903?
2054 01:33:43,517 –> 01:33:52,826 THAT’S BIG NEWS.
2055 01:33:46,220 –> 01:33:54,495 THIS HAS HAD A COUPLE OF TIMES
2056 01:33:52,893 –> 01:33:57,031 BEFORE.
2057 01:33:54,562 –> 01:33:58,565 HE WAS GREAT.
2058 01:33:57,098 –> 01:34:00,134 WITHOUT THE AUTOS, WE WOULDN’T
2059 01:33:58,632 –> 01:34:03,671 HAVE GEICO.
2060 01:34:00,201 –> 01:34:07,775 BUT IT TRANSFORMED THE COUNTRY.
2061 01:34:03,738 –> 01:34:08,676 AND HENRY FORD BROUGHT IN THE $5
2062 01:34:07,842 –> 01:34:10,444 DAILY WAGE.
2063 01:34:08,743 –> 01:34:14,748 THAT WAS A HUGE THING.
2064 01:34:10,511 –> 01:34:16,016 SIMPLY LINES OUT THE WHOLE
2065 01:34:14,815 –> 01:34:16,350 THING.
2066 01:34:16,083 –> 01:34:18,485 A
2067 01:34:16,416 –> 01:34:22,389 AUTO, LET’S JUST ASSUME THAT YOU
2068 01:34:18,552 –> 01:34:30,531 HAD SEEN A QUICK GLANCE BACK IN
2069 01:34:22,456 –> 01:34:30,898 1903 AFTER YOU WILL THE EE
2070 01:34:30,598 –> 01:34:32,666 FINANCE.
2071 01:34:30,965 –> 01:34:34,101 EVERYTHING ABOUT IT SAID, WELL,
2072 01:34:32,733 –> 01:34:35,269 THIS IS PRETTY EASY.
2073 01:34:34,168 –> 01:34:39,473 IT’S GOING TO BE CARS.
2074 01:34:35,336 –> 01:34:43,777 IT’S GOING TO BE AUTOS.
2075 01:34:39,540 –> 01:34:45,379 WELL, BERKSHIRE ZSH LET’S SEE
2076 01:34:43,844 –> 01:34:47,614 WHAT WE’VE GOT UP THERE.
2077 01:34:45,446 –> 01:34:48,081 YEAH, NO, STAY WHERE YOU WERE.
2078 01:34:47,681 –> 01:34:54,088 GO BACK.
2079 01:34:48,148 –> 01:34:54,255 I DON’T WANT TO CHANGE SLIDES
2080 01:34:54,155 –> 01:34:56,323 YET.
2081 01:34:54,321 –> 01:34:57,758 GO BACK.
2082 01:34:56,390 –> 01:35:01,128 BERKSHIRE BY ACCIDENT – WELL,
2083 01:34:57,825 –> 01:35:05,065 WE OWN A COMPANY CALLED MARMON.
2084 01:35:01,195 –> 01:35:06,700 WE BOUGHT IT SOME YEARS AGO.
2085 01:35:05,132 –> 01:35:08,602 PRITZKERS HAD BUILT THIS
2086 01:35:06,767 –> 01:35:10,470 BUSINESS FROM MANY, MANY, MANY
2087 01:35:08,669 –> 01:35:12,873 COMPANIES THAT THEY HAD ACQUIRED
2088 01:35:10,537 –> 01:35:14,842 AND THE NAME OF THEIR COMPANY
2089 01:35:12,940 –> 01:35:19,146 WAS CALLED MARMOM.
2090 01:35:14,909 –> 01:35:21,882 I DON’T KNOW EXACTLY WHY THEY
2091 01:35:19,213 –> 01:35:31,091 DECIDED TO NAME IT MARMAN, BUT
2092 01:35:21,948 –> 01:35:31,391 THEY DID OWN A COMPANY CALLED
2093 01:35:31,158 –> 01:35:35,962 HARMON.
2094 01:35:31,458 –> 01:35:37,464 THE MARMON COMPANY – GETTING
2095 01:35:36,029 –> 01:35:41,268 SLIGHTLY AHEAD OF ME ON THE
2096 01:35:37,531 –> 01:35:43,670 SLIDES AGAIN BUT THAT’S OKAY.
2097 01:35:41,335 –> 01:35:47,107 WE CALLED IT – IT WAS – THEY
2098 01:35:43,737 –> 01:35:53,480 OWNED THIS COMPANY, MARMON,
2099 01:35:47,174 –> 01:35:57,851 WHICH IN 1911 HAD BEEN A – THE
2100 01:35:53,547 –> 01:35:58,652 COMPANY WHOSE CAR WON THE FIRST
2101 01:35:57,918 –> 01:36:00,321 INDIANAPOLIS 500.
2102 01:35:58,719 –> 01:36:02,422 MAYBE THAT’S WHY THEY CALLED
2103 01:36:00,387 –> 01:36:05,458 THEM MARMON.
2104 01:36:02,489 –> 01:36:14,168 THEY FOUNDED THE COMPANY THEN
2105 01:36:05,525 –> 01:36:14,368 AND WON THE FIRST INDIANAPOLIS
2106 01:36:14,235 –> 01:36:20,173
2107 01:36:14,435 –> 01:36:21,842
I’M NOT SURE THAT WAS A BIG
2108 01:36:20,240 –> 01:36:24,211 CONTRIBUTION TO SOCIETY.
2109 01:36:21,909 –> 01:36:26,847 THE CAR THAT WAS ENTERED IN THE
2110 01:36:24,278 –> 01:36:30,317 INDIANAPOLIS 500, THE GUY WHO
2111 01:36:26,914 –> 01:36:32,285 SATURDAY NEXT TO HIM AND LOOKED
2112 01:36:30,384 –> 01:36:33,220 BACKWARDS, THEY INVENTED THE
2113 01:36:32,352 –> 01:36:37,390 REAR-VIEW MIRROR.
2114 01:36:33,287 –> 01:36:39,459 LET’S JUST ASSUME THAT THEY
2115 01:36:37,457 –> 01:36:41,661 DECIDED THAT AUTOS WERE THIS
2116 01:36:39,526 –> 01:36:43,397 INCREDIBLE THING AND SOME DAY
2117 01:36:41,728 –> 01:36:46,266 THERE WOULD BE AN INDIANAPOLIS
2118 01:36:43,464 –> 01:36:51,438 500, THEY WOULD HAVE REAR VIEW
2119 01:36:46,333 –> 01:36:54,441 MIRRORS AND 290 MILLION CARS
2120 01:36:51,505 –> 01:36:58,445 WOULD BE BUZZING.
2121 01:36:54,508 –> 01:37:03,650 AND SO I DECIDED TO LOOK AT THE
2122 01:36:58,512 –> 01:37:08,688 HISTORY AND I THOUGHT I PUT UP A
2123 01:37:03,717 –> 01:37:10,090 LIST FROM THE – AND I WAS
2124 01:37:08,755 –> 01:37:12,259 ORIGINALLY GOING TO PUT UP THE
2125 01:37:10,157 –> 01:37:15,062 Ms SO I COULD GET THEM ON ONE
2126 01:37:12,326 –> 01:37:18,699 SLIDE BUT WHEN I WENT TO THE Ms,
2127 01:37:15,129 –> 01:37:20,433 I WENT ON AND ON AND ON.
2128 01:37:18,766 –> 01:37:21,435 I DECIDED TO PUT UP ONES THAT
2129 01:37:20,500 –> 01:37:25,705 STARTED WITH MA.
2130 01:37:21,502 –> 01:37:29,943 AS YOU CAN SEE, THERE WERE
2131 01:37:25,772 –> 01:37:36,350 ALMOST 40 COMPANIES THAT WENT
2132 01:37:30,010 –> 01:37:36,750 INTO THE AUTO BUSINESS.
2133 01:37:36,417 –> 01:37:39,186 MA.
2134 01:37:36,817 –> 01:37:46,159 MARCHMAN PRODUCT.
2135 01:37:39,253 –> 01:37:49,462 1930s WERE REALLY QUITE SPECIAL.
2136 01:37:46,226 –> 01:37:53,299 THERE WERE AT LEAST 2,000
2137 01:37:49,529 –> 01:37:57,537 COMPANIES THAT ENTERED THE AUTO
2138 01:37:53,366 –> 01:37:58,772 BUSINESS BECAUSE IT CLEARLY HAD
2139 01:37:57,604 –> 01:38:03,110 THIS INCREDIBLE FUTURE.
2140 01:37:58,839 –> 01:38:05,045 OF COURSE, YOU REMEMBER THAT IN
2141 01:38:03,177 –> 01:38:06,647 2009 THERE WERE THREE LEFT, TWO
2142 01:38:05,112 –> 01:38:10,784 OF WHICH WENT BANKRUPT.
2143 01:38:06,714 –> 01:38:13,987 SO THERE WAS A LOT MORE TO
2144 01:38:10,851 –> 01:38:18,491 PICKING STOCKS THAN TRYING TO
2145 01:38:14,054 –> 01:38:22,496 FIGURE OUT WHAT’S GOING TO BE A
2146 01:38:18,558 –> 01:38:24,464 WONDERFUL FUTURE THE MAIN
2147 01:38:22,563 –> 01:38:25,399 STREET – THERE WAS NEBRASKA
2148 01:38:24,531 –> 01:38:27,067 MOTOR COMPANY.
2149 01:38:25,466 –> 01:38:28,335 EVERYBODY STARTED CAR COMPANIES
2150 01:38:27,134 –> 01:38:30,103 JUST LIKE EVERYBODY IS STARTING
2151 01:38:28,402 –> 01:38:33,573 SOMETHING NOW WHERE YOU CAN GET
2152 01:38:30,170 –> 01:38:37,410 MONEY FROM PEOPLE.
2153 01:38:33,640 –> 01:38:38,645 BUT THERE WERE VERY, VERY, VERY
2154 01:38:37,477 –> 01:38:40,313 FEW PEOPLE THAT PICKED THE
2155 01:38:38,712 –> 01:38:41,581 WINNER AND GOT THE OPPORTUNITY
2156 01:38:40,380 –> 01:38:43,717 AT FORD MOTOR.
2157 01:38:41,648 –> 01:38:45,319 HENRY FORD HAD A FEW PARTNERS
2158 01:38:43,784 –> 01:38:49,523 THAT HE DIDN’T LIKE AND HE
2159 01:38:45,386 –> 01:38:52,959 FIGURED, WAY TO BUY THEM OUT.
2160 01:38:49,590 –> 01:38:56,062 THAT WAS SORT OF THE – IT WAS
2161 01:38:53,026 –> 01:38:59,333 SORT OF THE BEGINNING OF THE
2162 01:38:56,129 –> 01:39:02,869 AUTO FINANCE.
2163 01:38:59,400 –> 01:39:11,378 THAT’S A LONG STORY.
2164 01:39:02,936 –> 01:39:13,413
GENERAL MOTORS BECAME THE
2165 01:39:11,445 –> 01:39:16,216 DOMINANT COMPANY.
2166 01:39:13,479 –> 01:39:17,818 THEY SHIFTED FROM THE MODEL T TO
2167 01:39:16,282 –> 01:39:19,552 THE MODEL A VERY QUICKLY.
2168 01:39:17,885 –> 01:39:21,188 I JUST WANT TO TELL YOU, IT’S
2169 01:39:19,619 –> 01:39:26,359 NOT AS EASY AS THAT SOUNDS.
2170 01:39:21,255 –> 01:39:30,964 WITH THAT, WE WILL GO TO BECKY
2171 01:39:26,426 –> 01:39:33,233 QUICK AND SHE WILL ASK ANY OF
2172 01:39:31,030 –> 01:39:34,801 THE FOUR OF US QUESTIONS SHE HAS
2173 01:39:33,300 –> 01:39:41,842 SELECTED AND WHICH WE DON’T –
2174 01:39:34,868 –> 01:39:44,444 SHE DOESN’T SHARE WITH US AND WE
2175 01:39:41,909 –> 01:39:45,379 WILL DO THAT FOR A CONSIDERABLE
2176 01:39:44,511 –> 01:39:46,546 PERIOD OF TIME.
2177 01:39:45,446 –> 01:39:51,484 YOU CAN BE SENDING IN QUESTIONS
2178 01:39:46,613 –> 01:39:53,486 TO HER AND THEN LATER ON AFTER
2179 01:39:51,551 –> 01:39:54,954 ABOUT 3 1/2 HOURS WE WILL HAVE
2180 01:39:53,553 –> 01:39:56,123 THE ANNUAL MEETING WHICH WON’T
2181 01:39:55,021 –> 01:39:56,756 TAKE LONG.
2182 01:39:56,190 –> 01:39:58,191 BECKY, OVER TO YOU.
2183 01:39:56,823 –> 01:39:59,359
THANKS, WARREN.
2184 01:39:58,258 –> 01:40:01,061 HELLO TO EVERYBODY.
2185 01:39:59,426 –> 01:40:03,263 THIS FIRST QUESTION THAT CAME IN
2186 01:40:01,128 –> 01:40:06,666 CAME IN FROM ANDY SEAS.
2187 01:40:03,330 –> 01:40:07,634 HE SAID HE’S THE OWNER OF NOT
2188 01:40:06,733 –> 01:40:11,871 NEARLY ENOUGH B SHARES.
2189 01:40:07,701 –> 01:40:14,040 MR. BUFFETT, YOU’RE WELL KNOWN
2190 01:40:11,938 –> 01:40:18,578 TO SAY BE FEARFUL WHEN OTHER
2191 01:40:14,107 –> 01:40:19,780 PEOPLE ARE GREEDY.
2192 01:40:18,645 –> 01:40:21,515 DUMPING AIRLINE STOCKS AT OR
2193 01:40:19,846 –> 01:40:22,916 NEAR THE LOW, NOT TAKING
2194 01:40:21,581 –> 01:40:25,018 ADVANTAGE OF THE FEAR OF
2195 01:40:22,983 –> 01:40:33,193 GRIPPING THE MARKET TO BUY
2196 01:40:25,085 –> 01:40:36,296 SHARES OF PUBLIC COMPANIES AND
2197 01:40:33,260 –> 01:40:38,932 BEING INFLEXIBLE.
2198 01:40:36,363 –> 01:40:39,533 BERKSHIRE APPROACHED THE
2199 01:40:38,999 –> 01:40:41,568 DECISION MAKING SPECIFICALLY
2200 01:40:39,600 –> 01:40:43,303 AFTER IT WAS ASSURED THROUGH THE
2201 01:40:41,635 –> 01:40:47,107 C.A.R.E.S. ACT IT WOULD PROVIDE
2202 01:40:43,370 –> 01:40:47,340 A ROBUST BACKSTOP IN THE
2203 01:40:47,174 –> 01:40:49,109 MARKETS.
2204 01:40:47,407 –> 01:40:53,046
UNTIL BOTH MONETARY AND
2205 01:40:49,176 –> 01:41:00,587 FISCAL POLICY KICKED IN – WELL,
2206 01:40:53,113 –> 01:41:03,089 WE HAD AN INCREDIBLE PROBLEM.
2207 01:41:00,654 –> 01:41:05,291 JUST AS CHARLIE IS THE CHIEF
2208 01:41:03,156 –> 01:41:06,260 CULTURE OFFICER, I’M CHIEF RISK
2209 01:41:05,358 –> 01:41:07,027 OFFICER AT BERKSHIRE.
2210 01:41:06,326 –> 01:41:09,295 THAT’S MY JOB.
2211 01:41:07,094 –> 01:41:11,864 WE HOPE WE DO WELL BUT WE WANT
2212 01:41:09,362 –> 01:41:13,867 TO BE SURE WE DON’T DO TERRIBLY.
2213 01:41:11,931 –> 01:41:18,037 BUT WE DIDN’T SELL A
2214 01:41:13,934 –> 01:41:20,306 SUBSTANTIAL – WE’RE A COMPANY
2215 01:41:18,104 –> 01:41:22,142 WITH 6, PROBABLY $700 BILLION
2216 01:41:20,373 –> 01:41:24,210 WORTH OF BUSINESSES, SOME WE OWN
2217 01:41:22,209 –> 01:41:24,811 IN THEIR ENTIRETY, SOME WE OWN A
2218 01:41:24,277 –> 01:41:27,514 PIECE OF.
2219 01:41:24,877 –> 01:41:29,683 AND I DON’T KNOW WHETHER WE WERE
2220 01:41:27,581 –> 01:41:34,054 SELLERS IN MAYBE 1% OF THE VALUE
2221 01:41:29,750 –> 01:41:36,256 OF ALL THE BUSINESSES WE HAD BUT
2222 01:41:34,121 –> 01:41:37,190 JUST GOT TO MENTION THE AIRLINE
2223 01:41:36,323 –> 01:41:40,360 BUSINESSES IN PARTICULAR AND
2224 01:41:37,257 –> 01:41:42,062 THEN I’LL GET ON WITH WHAT WAS
2225 01:41:40,427 –> 01:41:45,698 DONE IN FISCAL MONETARY POLICY.
2226 01:41:42,129 –> 01:41:48,301 WE HAD A FEW PEOPLE, VARIOUS
2227 01:41:45,765 –> 01:41:51,738 AREAS OF BERKSHIRE, THAT WANTED
2228 01:41:48,368 –> 01:41:54,874 TO GO IN FOR HELP FROM THE
2229 01:41:51,805 –> 01:41:56,843 GOVERNMENT AND IN SOME CASES
2230 01:41:54,941 –> 01:41:58,945 THEY HAD MINORITY SHAREHOLDERS
2231 01:41:56,910 –> 01:42:02,248 OWNING A FEW PERCENT.
2232 01:41:59,012 –> 01:42:04,317 WE’RE GOING TO GET KILLED BY
2233 01:42:02,315 –> 01:42:07,053 WHAT’S HAPPENING WITH THE
2234 01:42:04,384 –> 01:42:08,421 REGULATIONS THAT ARE BEING PUT
2235 01:42:07,120 –> 01:42:09,756 OUT STOPPING THE ECONOMY.
2236 01:42:08,488 –> 01:42:13,026 THEY SAID, EVERYBODY’S GOING IN
2237 01:42:09,822 –> 01:42:16,263 FOR THEM, WHY DON’T WE GO IN?
2238 01:42:13,093 –> 01:42:19,499 I SAID, BERKSHIRE CAN HANDLE IT.
2239 01:42:16,330 –> 01:42:22,802 THIS IS FOR PEOPLE THAT CAN’T
2240 01:42:19,566 –> 01:42:24,337 HANDLE IT SO WE’RE NOT APPLYING
2241 01:42:22,869 –> 01:42:27,907 FOR IT.
2242 01:42:24,404 –> 01:42:33,413 THE AIRLINES WERE THE MOST
2243 01:42:27,974 –> 01:42:38,485 PROMINENT BENEFICIARIES OF WHAT
2244 01:42:33,480 –> 01:42:41,855 TOOK PLACE IMMEDIATELY AT THIS.
2245 01:42:38,552 –> 01:42:46,560 GRANTS NOT LOANS.
2246 01:42:41,922 –> 01:42:46,793 AND I THINK THAT WAS FINE PUBLIC
2247 01:42:46,627 –> 01:42:50,863 POLICY.
2248 01:42:46,860 –> 01:42:51,931 I WISH IT COULD GO TO EVERY pRE
2249 01:42:50,930 –> 01:42:53,533 BUSINESS THAT WAS OUT OF
2250 01:42:51,998 –> 01:42:55,301 BUSINESS AND HAD NO – THEY
2251 01:42:53,600 –> 01:42:58,838 WERE – THEY WERE – THEY WERE
2252 01:42:55,368 –> 01:43:00,006 MADE TOAST OF BASICALLY, BUT THE
2253 01:42:58,905 –> 01:43:02,375 AIRLINES CLEARLY WHAT HAPPENED
2254 01:43:00,073 –> 01:43:03,843 WAS NOT THEIR FAULT IN ANY WAY,
2255 01:43:02,442 –> 01:43:11,684 SHAPE, OR FORM.
2256 01:43:03,910 –> 01:43:14,487 IT WASN’T LIKE IN 2008-2009 –
2257 01:43:11,751 –> 01:43:15,088
NOW AIRLINES OPERATE IN
2258 01:43:14,554 –> 01:43:17,056 BANKRUPTCY.
2259 01:43:15,155 –> 01:43:18,157 THREE OF THE FOUR VICTIMS WENT
2260 01:43:17,123 –> 01:43:21,227 THROUGH A BANKRUPTCY.
2261 01:43:18,224 –> 01:43:26,499 THE AIRLINES WERE BECOMING USED
2262 01:43:21,294 –> 01:43:28,735 TO OPERATING IN – IT WAS
2263 01:43:26,566 –> 01:43:29,436 PERFECTLY PROPER FOR THE AIRLINE
2264 01:43:28,802 –> 01:43:31,271 INDUSTRY.
2265 01:43:29,503 –> 01:43:32,305 YOU LOOK AT THE FIGURES OF 2
2266 01:43:31,338 –> 01:43:34,140 TRILLION FOR APPLE.
2267 01:43:32,372 –> 01:43:37,277 THE ENTIRE BIG FOUR AIRLINES,
2268 01:43:34,207 –> 01:43:38,645 THEY WERE – THEY SOLD FOR ABOUT
2269 01:43:37,344 –> 01:43:40,080 $100 BILLION ALMOST.
2270 01:43:38,712 –> 01:43:40,913 VERY, VERY SMALL.
2271 01:43:40,147 –> 01:43:43,416 COMBINED THEY WOULDN’T COME
2272 01:43:40,980 –> 01:43:45,084 CLOSE TO MAKING THE CUT.
2273 01:43:43,483 –> 01:43:45,885 I MEAN, THEY WOULDN’T BE IN THE
2274 01:43:45,151 –> 01:43:47,988 TOP 50.
2275 01:43:45,952 –> 01:43:48,288 SO, ANYWAY, THEY WENT INTO THE
2276 01:43:48,055 –> 01:43:49,622 GOVERNMENT.
2277 01:43:48,355 –> 01:43:53,760 THEY NEEDED THE GOVERNMENT HELP
2278 01:43:49,689 –> 01:43:58,231 OR THEY NEEDED – OR THEY WOULD
2279 01:43:53,827 –> 01:44:00,967 GO BANKRUPT, SOME OF THEM.
2280 01:43:58,298 –> 01:44:03,170 AND REALLY CONGRESS AND STEVE
2281 01:44:01,034 –> 01:44:05,238 MNUCHIN TOO, THEY DECIDED THEY
2282 01:44:03,236 –> 01:44:08,642 DESERVED HELP, WHICH I DO NOT
2283 01:44:05,305 –> 01:44:11,745 QUARREL WITH AT ALL, BUT IMAGINE
2284 01:44:08,709 –> 01:44:14,147 IF BERKSHIRE WAS THE 10% HOLDER,
2285 01:44:11,812 –> 01:44:15,815 WHICH THEY HAD BEEN.
2286 01:44:14,214 –> 01:44:19,319 BERKSHIRE, IT WOULD BE LIKE ONE
2287 01:44:15,882 –> 01:44:21,254 OF OUR – THEY MIGHT VERY WELL
2288 01:44:19,386 –> 01:44:22,656 HAVE HAD A VERY, VERY, VERY
2289 01:44:21,321 –> 01:44:26,192 DIFFERENT RESULT IF THEY HAD HAD
2290 01:44:22,723 –> 01:44:29,095 A VERY, VERY, VERY RICH
2291 01:44:26,259 –> 01:44:33,199 SHAREHOLDER THAT OWNED 8 OR 9%.
2292 01:44:29,162 –> 01:44:34,634 THEY DIDN’T HAVE THAT.
2293 01:44:33,266 –> 01:44:35,402 YOU MIGHT NOT HAVE GOTTEN THE
2294 01:44:34,701 –> 01:44:37,203 SAME RESULT.
2295 01:44:35,469 –> 01:44:38,838 IN FACT, YOU PROBABLY WOULDN’T.
2296 01:44:37,270 –> 01:44:40,440 I CAN SEE THE HEADLINES BECAUSE
2297 01:44:38,905 –> 01:44:42,242 YOU’VE SEEN THE HEADLINES ON
2298 01:44:40,507 –> 01:44:43,810 SOME COMPANIES THAT TOOK 100
2299 01:44:42,309 –> 01:44:45,178 MILLION, THE AIRLINE DIDN’T NEED
2300 01:44:43,877 –> 01:44:50,684 IT, SOME OF THEM GAVE IT BACK.
2301 01:44:45,245 –> 01:44:52,419 MOST OF THEM GAVE IT BACK.
2302 01:44:50,751 –> 01:44:53,720 BUT YOU’RE ACTUALLY LOOKING AT A
2303 01:44:52,486 –> 01:44:54,788 DIFFERENT RESULT THAN IF WE HAD
2304 01:44:53,787 –> 01:45:00,660 KEPT OUR STOCK.
2305 01:44:54,855 –> 01:45:03,963 BUT IN ANY EVENT, AN INDUSTRY
2306 01:45:00,727 –> 01:45:05,432 THAT WAS SELLING FOR LESS THAN
2307 01:45:04,030 –> 01:45:07,633 $100 MILLION.
2308 01:45:05,499 –> 01:45:08,501 THEY LOST A SIGNIFICANT AMOUNT
2309 01:45:07,700 –> 01:45:12,872 OF MONEY.
2310 01:45:08,568 –> 01:45:16,476 THEY LOST PERSPECTIVE EARNING
2311 01:45:12,939 –> 01:45:20,613 POWER.
2312 01:45:16,543 –> 01:45:29,255 I WOULD SAY THE ECONOMIC
2313 01:45:20,680 –> 01:45:33,927 RECOVERY HAS GONE FAR BETTER AND
2314 01:45:29,322 –> 01:45:36,196 I CUT BACK SOME OF THE BANK
2315 01:45:33,994 –> 01:45:40,900 INVESTMENT.
2316 01:45:36,263 –> 01:45:46,873 BASICALLY OUR NET SALES WERE
2317 01:45:40,967 –> 01:45:48,741 1.5%.
2318 01:45:46,940 –> 01:45:52,044 I CONSIDERED IT A GREAT MOMENT
2319 01:45:48,808 –> 01:45:54,013 IN BERKSHIRE HISTORY BUT WE’VE
2320 01:45:52,111 –> 01:45:55,381 GOT MORE NET WORTH THAN ANY
2321 01:45:54,080 –> 01:45:56,149 OTHER COMPANY IN THE UNITED
2322 01:45:55,448 –> 01:46:00,353 STATES UNDER ACCOUNTING
2323 01:45:56,216 –> 01:46:02,255 PRINCIPLES AND WE’VE GOT 6 OR
2324 01:46:00,420 –> 01:46:03,923 700 BILLION IN BUSINESSES AND AS
2325 01:46:02,322 –> 01:46:05,425 I THINK THE AIRLINE BUSINESSES
2326 01:46:03,990 –> 01:46:06,659 HAVE DONE BETTER BECAUSE WE SOLD
2327 01:46:05,492 –> 01:46:10,196 AND I WISH THEM WELL.
2328 01:46:06,726 –> 01:46:11,698 I STILL WOULDN’T WANT TO BUY THE
2329 01:46:10,263 –> 01:46:15,067 AIRLINE BUSINESS INTERNATIONAL.
2330 01:46:11,765 –> 01:46:19,272 PEOPLE REALLY WANT TO – THEY
2331 01:46:15,134 –> 01:46:21,107 WANT TO TRAVEL FOR PERSONAL
2332 01:46:19,339 –> 01:46:22,208 REASONS AND BUSINESS TRAVEL IS
2333 01:46:21,173 –> 01:46:24,010 THE OTHER THING.
2334 01:46:22,275 –> 01:46:25,011 WE’VE GOT A BIG EXPOSURE TO
2335 01:46:24,077 –> 01:46:27,480 BUSINESS TRAVEL, OF COURSE,
2336 01:46:25,077 –> 01:46:31,617 THROUGH THE FACT THAT WE OWN 19%
2337 01:46:27,547 –> 01:46:33,085 OF AMERICAN EXPRESS AND WE OWN
2338 01:46:31,684 –> 01:46:34,387 PRECISION GAS PARTS WHICH
2339 01:46:33,152 –> 01:46:37,256 SERVICES THE AIR BUSINESS.
2340 01:46:34,454 –> 01:46:41,227 WE’VE STILL GOT A BIG BUSINESS
2341 01:46:37,323 –> 01:46:42,262 INVESTMENT IN AIR TRAVEL, A BIG
2342 01:46:41,294 –> 01:46:46,433 COMMITMENT TO IT.
2343 01:46:42,329 –> 01:46:48,067 WE WISH THE BIG 4 THE BEST AND I
2344 01:46:46,500 –> 01:46:48,634 THINK OUR MANAGEMENT’S HAVE DONE
2345 01:46:48,134 –> 01:46:51,604 A VERY GOOD JOB DURING THIS
2346 01:46:48,701 –> 01:46:53,673 PERIOD.
2347 01:46:51,671 –> 01:46:54,874
MORE SPECIFICALLY BEYOND THE
2348 01:46:53,740 –> 01:46:56,242 AIRLINES THOUGH, JUST THE IDEA
2349 01:46:54,941 –> 01:46:58,010 THAT – AND THIS CAME FROM
2350 01:46:56,309 –> 01:47:03,583 SEVERAL QUESTIONS, TOO,
2351 01:46:58,077 –> 01:47:06,686 INCLUDING ONE FROM CHRIS BLAINE.
2352 01:47:03,650 –> 01:47:09,656 YOU SPENT YEARS INSISTING YOU
2353 01:47:06,753 –> 01:47:10,957 HAD YOUR ELEPHANT GUN READY.
2354 01:47:09,723 –> 01:47:13,326 YOU SAT ON YOUR HANDS.
2355 01:47:11,024 –> 01:47:13,593 PLEASE HELP ME UNDERSTAND WHAT I
2356 01:47:13,393 –> 01:47:15,395 MISSED.
2357 01:47:13,660 –> 01:47:18,097
I DIDN’T GET THE LAST PART.
2358 01:47:15,462 –> 01:47:18,431
PLEASE HELP ME UNDERSTAND
2359 01:47:18,164 –> 01:47:19,832 WHAT I MISSED.
2360 01:47:18,497 –> 01:47:20,700 WHY DIDN’T YOU USE MORE OF THE
2361 01:47:19,899 –> 01:47:23,603 CASH AT HAND?
2362 01:47:20,767 –> 01:47:26,573
WELL, WE HAVE ABOUT – OUR
2363 01:47:23,669 –> 01:47:31,444 CASH ON HAND HAS BEEN ABOUT 15%
2364 01:47:26,639 –> 01:47:38,318 OF OUR VALUES OF OUR BUSINESSES
2365 01:47:31,510 –> 01:47:42,055 AND THAT’S A HEALTHY CHUNK.
2366 01:47:38,385 –> 01:47:46,059 I SAY I’LL NEVER GET BELOW 20
2367 01:47:42,121 –> 01:47:50,430 BILLION BUT WE’RE GOING TO RAISE
2368 01:47:46,126 –> 01:47:54,100 THE SIZE.
2369 01:47:50,497 –> 01:47:56,436 WE COULD HAVE DEPLOYED 50 OR 75
2370 01:47:54,166 –> 01:48:00,640 BILLION AND RIGHT BEFORE THE FED
2371 01:47:56,503 –> 01:48:02,809 ACT – I MEAN, AT A POINT WHERE
2372 01:48:00,707 –> 01:48:04,443 THE CALLS WERE – TWO CALLS CAME
2373 01:48:02,876 –> 01:48:07,714 IN, BUT THERE WAS TWO OR THREE
2374 01:48:04,510 –> 01:48:11,317 DAYS THAT NOTHING COULD HAPPEN.
2375 01:48:07,781 –> 01:48:13,253 WHEN JAY POWELL ACTED AS HE DID,
2376 01:48:11,384 –> 01:48:14,887 THAT WAS INCREDIBLY IMPORTANT.
2377 01:48:13,320 –> 01:48:18,824 I MEAN, I SHOULD SAY THE FED
2378 01:48:14,954 –> 01:48:21,794 ACTED AS THEY DID, BUT THEY
2379 01:48:18,891 –> 01:48:23,696 MOVED WITH SPEED AND A
2380 01:48:21,861 –> 01:48:27,333 DECISIVENESS ON MARCH 23rd THAT
2381 01:48:23,763 –> 01:48:29,001 CHANGED THE SITUATION WHERE THE
2382 01:48:27,400 –> 01:48:31,037 ECONOMY HAD STOPPED, THE
2383 01:48:29,068 –> 01:48:31,471 GOVERNMENT BOND MARKET WAS EVEN
2384 01:48:31,104 –> 01:48:32,738 DISRUPTED.
2385 01:48:31,538 –> 01:48:36,909 BERKSHIRE HATHAWAY PROBABLY
2386 01:48:32,805 –> 01:48:40,346 COULD NOT HAVE GONE OUT WITH A
2387 01:48:36,976 –> 01:48:42,281 DEBT OFFERING THE DAY BEFORE.
2388 01:48:40,413 –> 01:48:44,116 DIDN’T GET A LOT OF PUBLICITY,
2389 01:48:42,348 –> 01:48:45,852 BUT THERE WAS A RUN ON MONEY
2390 01:48:44,183 –> 01:48:46,119 MARKET FUNDS, VERY SUBSTANTIAL
2391 01:48:45,919 –> 01:48:47,553 RUN.
2392 01:48:46,186 –> 01:48:48,788 AND IF YOU LOOK AT THE
2393 01:48:47,620 –> 01:48:51,023 NUMBERS – DAILY NUMBERS ON
2394 01:48:48,855 –> 01:48:53,993 THAT, IT WAS A REPEAT OF
2395 01:48:51,090 –> 01:48:56,329 SEPTEMBER 2008.
2396 01:48:54,060 –> 01:48:58,698 AND THIS TIME I GIVE GREAT
2397 01:48:56,396 –> 01:49:01,400 CREDIT TO WHAT BERNANKE AND
2398 01:48:58,765 –> 01:49:03,736 PAULSEN DID, BUT THIS TIME THE
2399 01:49:01,467 –> 01:49:05,338 FED KNEW THAT SAYING WHATEVER IT
2400 01:49:03,803 –> 01:49:07,006 TAKES AND SAYING IT AND
2401 01:49:05,405 –> 01:49:09,775 DEMONSTRATING IT, WHICH THEY DID
2402 01:49:07,073 –> 01:49:11,310 ON MARCH 23rd, THEY TOOK A
2403 01:49:09,842 –> 01:49:12,745 MARKET WHERE BERKSHIRE COULDN’T
2404 01:49:11,377 –> 01:49:15,581 SELL BONDS ON THE DAY BEFORE AND
2405 01:49:12,812 –> 01:49:18,517 TURNED IT INTO ONE WHERE
2406 01:49:15,648 –> 01:49:23,155 CARNIVAL CRUISE LINES, A DAY OR
2407 01:49:18,584 –> 01:49:24,657 TWO LATER, RECORD ISSUANCE OF
2408 01:49:23,222 –> 01:49:27,794 CORPORATE DEBT.
2409 01:49:24,724 –> 01:49:29,162 COMPANIES LOSING MONEY.
2410 01:49:27,861 –> 01:49:29,429 COMPANIES WERE CLOSED.
2411 01:49:29,229 –> 01:49:31,197 WHATEVER.
2412 01:49:29,496 –> 01:49:31,965 IT WAS THE MOST DRAMATIC MOVE
2413 01:49:31,264 –> 01:49:33,633 THAT YOU COULD IMAGINE.
2414 01:49:32,032 –> 01:49:35,801 AND AT THE TIME AS I REMEMBER
2415 01:49:33,699 –> 01:49:37,970 THE CHAIRMAN SAYING, YOU KNOW,
2416 01:49:35,868 –> 01:49:38,771 HOW ABOUT A LITTLE HELP ON THE
2417 01:49:38,037 –> 01:49:41,807 FISCAL FRONT?
2418 01:49:38,838 –> 01:49:43,943 AND THEN CONGRESS ACTED VERY,
2419 01:49:41,874 –> 01:49:46,245 VERY BIG AGAIN IN 2008 AND NINE,
2420 01:49:44,010 –> 01:49:48,014 THEY ARGUED ABOUT, YOU KNOW, WE
2421 01:49:46,312 –> 01:49:52,118 DON’T WANT TO GIVE MONEY TO
2422 01:49:48,081 –> 01:49:52,418 THOSE DIRTY BANKS, THAT SORT OF
2423 01:49:52,185 –> 01:49:53,620 THING.
2424 01:49:52,485 –> 01:49:54,120 THIS TIME THERE WAS NOBODY TO
2425 01:49:53,687 –> 01:49:59,291 BLAME.
2426 01:49:54,187 –> 01:50:00,727 THEY SAW WHAT WAS NECESSARY AND
2427 01:49:59,358 –> 01:50:02,294 CONGRESS RESPONDED IN A WAY THAT
2428 01:50:00,794 –> 01:50:04,230 WAS INCREDIBLE AND IT DID THE
2429 01:50:02,361 –> 01:50:06,032 JOB AND IT DID – I THINK IT DID
2430 01:50:04,297 –> 01:50:09,369 A BETTER JOB THAN EITHER THE FED
2431 01:50:06,099 –> 01:50:09,736 OR THE TREASURY OR ANYBODY
2432 01:50:09,436 –> 01:50:17,243 EXPECTED.
2433 01:50:09,803 –> 01:50:19,378 THIS ECONOMY RIGHT NOW IS – 85%
2434 01:50:17,310 –> 01:50:24,884 OF IT IS RUNNING IN SUPER HIGH
2435 01:50:19,445 –> 01:50:26,085 GEAR AND PEOPLE CAN’T – AND
2436 01:50:24,951 –> 01:50:27,353 YOU’RE SEEING SOME INFLATION AND
2437 01:50:26,152 –> 01:50:29,389 ALL OF THAT.
2438 01:50:27,420 –> 01:50:29,956 IT’S RESPONDED IN AN INCREDIBLE
2439 01:50:29,456 –> 01:50:32,091 WAY.
2440 01:50:30,023 –> 01:50:33,526 WE’VE LEARNED SOMETHING OUT OF
2441 01:50:32,158 –> 01:50:34,927 2008 AND 9 BUT I DON’T THINK IT
2442 01:50:33,592 –> 01:50:35,160 WAS A SURE THING THAT WOULD
2443 01:50:34,994 –> 01:50:39,031 HAPPEN.
2444 01:50:35,227 –> 01:50:40,666 THE ONE THING ABOUT BERKSHIRE,
2445 01:50:39,098 –> 01:50:42,001 WE NEVER WANT – WE DON’T WANT
2446 01:50:40,733 –> 01:50:43,036 TO DEPEND ON ANYBODY.
2447 01:50:42,068 –> 01:50:44,904 WE’RE NOT A BANK.
2448 01:50:43,103 –> 01:50:46,472 WE CAN’T GO TO THE FEDERAL
2449 01:50:44,970 –> 01:50:48,641 RESERVE IF WE NEED MONEY.
2450 01:50:46,539 –> 01:50:51,343 WE’VE GOT TO BE SURE THAT UNDER
2451 01:50:48,708 –> 01:50:52,845 ANY CIRCUMSTANCES, ANY
2452 01:50:51,410 –> 01:51:00,886 CIRCUMSTANCES WE CAN’T SOLVE
2453 01:50:52,912 –> 01:51:04,356 NUCLEAR WAR AND WE CAN’T – BUT
2454 01:51:00,953 –> 01:51:06,726 IN “A STREET CAR NAMED DESIRE”
2455 01:51:04,423 –> 01:51:07,393 SAID I DEPEND ON THE KINDNESS OF
2456 01:51:06,793 –> 01:51:11,297 STRANGERS.
2457 01:51:07,460 –> 01:51:12,465 YOU CAN’T DEPEND ON OTHERS IF
2458 01:51:11,364 –> 01:51:13,733 THINGS ARE STOPPED.
2459 01:51:12,532 –> 01:51:14,567 WE WERE SEEING IT IN THE MIDDLE
2460 01:51:13,800 –> 01:51:16,002 OF MARCH.
2461 01:51:14,634 –> 01:51:16,669 EVERYBODY WAS DRAWING DOWN THEIR
2462 01:51:16,069 –> 01:51:18,805 CREDIT LINES.
2463 01:51:16,736 –> 01:51:20,740 THE BANKS DID NOT EXPECT THAT.
2464 01:51:18,872 –> 01:51:22,441 THEY JUST WEREN’T SURE THEY WERE
2465 01:51:20,807 –> 01:51:24,343 GOING TO BE ABLE TO DRAW DOWN
2466 01:51:22,508 –> 01:51:24,543 THEIR CREDIT LINES TEN DAYS
2467 01:51:24,410 –> 01:51:25,812 LATER.
2468 01:51:24,610 –> 01:51:29,382 THEY DREW THEM DOWN.
2469 01:51:25,879 –> 01:51:29,582 TOOK MONEY OUT OF MONEY MARKET
2470 01:51:29,449 –> 01:51:32,218 FUNDS.
2471 01:51:29,649 –> 01:51:34,020 WE GOT – I GIVE GREAT CREDIT ON
2472 01:51:32,285 –> 01:51:34,754 THE MONETARY FISCAL SIDE WHAT
2473 01:51:34,087 –> 01:51:35,955 WAS DONE.
2474 01:51:34,821 –> 01:51:36,956 I DIDN’T THINK IT WAS A SURE
2475 01:51:36,022 –> 01:51:38,758 THING THAT WOULD HAPPEN.
2476 01:51:37,023 –> 01:51:39,058 I DIDN’T KNOW HOW IT WOULD BE
2477 01:51:38,825 –> 01:51:41,393 IMPLEMENTED.
2478 01:51:39,125 –> 01:51:45,030 I THINK IT’S WORKED BETTER THAN
2479 01:51:41,460 –> 01:51:47,399 JUST ABOUT ANYBODY HAS EXPECTED
2480 01:51:45,097 –> 01:51:50,636 AND I THINK – WELL, YOU’RE
2481 01:51:47,466 –> 01:51:51,837 SEEING IT NOW.
2482 01:51:50,703 –> 01:51:52,605 CHARLIE’S GOT SOME VIEWS ON
2483 01:51:51,904 –> 01:51:54,240 THIS, TOO.
2484 01:51:52,672 –> 01:51:56,943 WE SHOULDN’T LEAVE HIM OUT OF
2485 01:51:54,307 –> 01:52:02,581 IT.
2486 01:51:57,010 –> 01:52:04,850
WELL, IT’S CRAZY TO THINK
2487 01:52:02,648 –> 01:52:06,218 ANYBODY IS GOING TO BE SMART
2488 01:52:04,917 –> 01:52:08,921 ENOUGH TO HAVE MONEY AND COME
2489 01:52:06,285 –> 01:52:10,490 OUT ON THE TAKE IN SOME CRAZY
2490 01:52:08,988 –> 01:52:11,624 CRISIS AND SPEND IT ALL.
2491 01:52:10,557 –> 01:52:14,927 THERE’S ALWAYS SOME PERSON THAT
2492 01:52:11,691 –> 01:52:15,962 DOES IT BY ACCIDENT BUT THAT’S
2493 01:52:14,994 –> 01:52:17,563 TRUE TO STANDARD.
2494 01:52:16,029 –> 01:52:20,333 ANYBODY WHO EXPECTS THAT OF
2495 01:52:17,630 –> 01:52:20,533 BERKSHIRE HATHAWAY IS OUT OF HIS
2496 01:52:20,400 –> 01:52:21,767 MIND.
2497 01:52:20,600 –> 01:52:23,736
CHARLIE AND I WERE NEVER
2498 01:52:21,834 –> 01:52:24,703 REALLY GOOD AT DANCING BUT WE
2499 01:52:23,803 –> 01:52:26,839 CAN DO THAT DANCE.
2500 01:52:24,770 –> 01:52:27,707
NO, WE CAN’T.
2501 01:52:26,906 –> 01:52:29,775 ALMOST NOBODY ELSE CAN.
2502 01:52:27,774 –> 01:52:30,610
NOT WITH TENS OF BILLIONS OR
2503 01:52:29,842 –> 01:52:32,645 HUNDREDS OF BILLIONS.
2504 01:52:30,677 –> 01:52:35,514 BUT IT’S WORKED OUT WELL.
2505 01:52:32,712 –> 01:52:38,884 WE FORGOT TO SHOW ON THE
2506 01:52:35,581 –> 01:52:40,286 FINANCIAL SIDE BACK TO THE
2507 01:52:38,951 –> 01:52:42,021 BALANCE SHEET.
2508 01:52:40,353 –> 01:52:43,256 WE DID BUY IN.
2509 01:52:42,088 –> 01:52:45,457 YOU’LL SEE THE SHARES
2510 01:52:43,323 –> 01:52:47,193 OUTSTANDING IF YOU GO BACK TO
2511 01:52:45,524 –> 01:52:54,000 WHAT IS IT E-3.
2512 01:52:47,260 –> 01:52:56,602
E-2.
2513 01:52:54,067 –> 01:52:57,904
I THINK IT’S E-2.
2514 01:52:56,669 –> 01:52:59,839 THE BALANCE SHEET.
2515 01:52:57,971 –> 01:53:02,475
THERE IT SHOWS THE SHARES
2516 01:52:59,906 –> 01:53:05,277 OUTSTANDING IN THE BOTTOM.
2517 01:53:02,542 –> 01:53:07,113 WE HAVE – WE SPENT ABOUT 25
2518 01:53:05,344 –> 01:53:09,182 BILLION IN THE FIRST QUARTER AND
2519 01:53:07,180 –> 01:53:11,818 MORE MONEY SINCE THEN.
2520 01:53:09,249 –> 01:53:13,485 IT’S THE BEST THING.
2521 01:53:11,885 –> 01:53:15,054 WE CAN’T BUY COMPANIES AND WE
2522 01:53:13,552 –> 01:53:18,758 CAN’T BUY STOCKS AS CHEAP AS WE
2523 01:53:15,120 –> 01:53:20,459 CAN BUY OUR OWN.
2524 01:53:18,825 –> 01:53:23,930 WE’VE DONE THAT WITH A FAIR
2525 01:53:20,526 –> 01:53:26,932 AMOUNT OF MONEY.
2526 01:53:23,997 –> 01:53:28,668 I MEAN, YOU KNOW, DEFINITELY WE
2527 01:53:26,999 –> 01:53:32,271 COULD HAVE DONE BETTER THINGS.
2528 01:53:28,735 –> 01:53:34,173 WE WOULD HAVE SOLD – WE WOULD
2529 01:53:32,338 –> 01:53:35,474 HAVE SOLD AIRLINES AND CUT BACK
2530 01:53:34,240 –> 01:53:37,210 ON BANKS REGARDLESS.
2531 01:53:35,541 –> 01:53:38,611 WHETHER WE SHOULD HAVE BOUGHT
2532 01:53:37,276 –> 01:53:39,412 SOMETHING ELSE AT THE SAME TIME
2533 01:53:38,678 –> 01:53:40,947 IS ANOTHER QUESTION.
2534 01:53:39,478 –> 01:53:42,448
THIS QUESTION COMES FROM A
2535 01:53:41,014 –> 01:53:44,016 LONG-TERM SHAREHOLDER WHO’S BEEN
2536 01:53:42,515 –> 01:53:45,785 HERE FOR MORE THAN 25 YEARS.
2537 01:53:44,083 –> 01:53:48,154 HIS NAME IS BEN KNOLL.
2538 01:53:45,852 –> 01:53:48,421 HE’S FROM MINNEAPOLIS,
2539 01:53:48,221 –> 01:53:50,590 MINNESOTA.
2540 01:53:48,488 –> 01:53:52,224 HE SAYS, MR. MUNGER AND MR.
2541 01:53:50,657 –> 01:53:53,993 BUFFETT, AFTER A 15 YEAR PERIOD
2542 01:53:52,291 –> 01:53:55,694 OF MARKET UNDER PERFORMANCE,
2543 01:53:54,060 –> 01:53:57,096 YOU’RE CAUTIOUS PREDICTING
2544 01:53:55,761 –> 01:53:59,065 BERKSHIRE BEING ABLE TO
2545 01:53:57,163 –> 01:53:59,298 OUTPERFORM THE MARKET IN THE
2546 01:53:59,132 –> 01:54:00,466 FUTURE.
2547 01:53:59,365 –> 01:54:02,401 GIVEN THIS WHAT DO YOU SEE IS
2548 01:54:00,533 –> 01:54:03,702 THE MARKETS OF LONG-TIMESHARE
2549 01:54:02,468 –> 01:54:06,605 HOLDERS HOLDING THEIR STOCKS
2550 01:54:03,769 –> 01:54:07,773 VERSUS DIVERSIFYING THEIR RISK
2551 01:54:06,672 –> 01:54:09,575 ACROSS AN INDEX?
2552 01:54:07,840 –> 01:54:09,775
CHARLIE, YOU WANT TO ANSWER
2553 01:54:09,642 –> 01:54:10,643 THAT?
2554 01:54:09,842 –> 01:54:12,411
SURE.
2555 01:54:10,710 –> 01:54:16,716 WELL, I PERSONALLY PREFER
2556 01:54:12,478 –> 01:54:21,621 HOLDING BERKSHIRE TO HOLDING THE
2557 01:54:16,783 –> 01:54:22,488 MARKET SO I’M QUITE COMFORTABLE
2558 01:54:21,687 –> 01:54:24,189 HOLDING BERKSHIRE.
2559 01:54:22,555 –> 01:54:26,392 I THINK OUR BUSINESSES ARE
2560 01:54:24,256 –> 01:54:27,793 BETTER THAN THE AVERAGE.
2561 01:54:26,458 –> 01:54:29,462
IS IT BECAUSE YOU DON’T THINK
2562 01:54:27,860 –> 01:54:31,030 THE MARKET VALUES IT FAIRLY?
2563 01:54:29,529 –> 01:54:32,631
WELL, THESE ARE JUST
2564 01:54:31,097 –> 01:54:35,034 ACCIDENTS OF HISTORY AND THINGS
2565 01:54:32,698 –> 01:54:38,004 ARE FLUCTUATING AT ALL TIMES.
2566 01:54:35,101 –> 01:54:39,105 ON A COMPOSITE BASIS, I’D BET ON
2567 01:54:38,071 –> 01:54:42,842 BERKSHIRE OVER THE MARKET.
2568 01:54:39,172 –> 01:54:44,977 THAT’S ASSUMING WE’RE ALL DEAD.
2569 01:54:42,909 –> 01:54:47,947
I RECOMMEND IT.
2570 01:54:45,044 –> 01:54:49,915 I RECOMMEND THE S&P 500 INDEX
2571 01:54:48,014 –> 01:54:51,617 FUND AND HAVE FOR A LONG, LONG
2572 01:54:49,982 –> 01:54:55,821 TIME TO PEOPLE.
2573 01:54:51,684 –> 01:54:57,523 AND I’VE NEVER RECOMMENDED
2574 01:54:55,888 –> 01:54:59,458 BERKSHIRE TO ANYBODY BECAUSE I
2575 01:54:57,589 –> 01:55:01,226 DON’T WANT PEOPLE TO BUY IT
2576 01:54:59,525 –> 01:55:02,795 BECAUSE THEY THINK I’M TIPPING
2577 01:55:01,293 –> 01:55:05,064 THEM – NO MATTER WHAT IT WAS
2578 01:55:02,862 –> 01:55:08,033 SELLING FOR.
2579 01:55:05,131 –> 01:55:12,905 AND, YOU KNOW, I MADE IT PUBLIC.
2580 01:55:08,100 –> 01:55:16,208 ON MY DEATH THERE’S A FUND FOR
2581 01:55:12,972 –> 01:55:18,711 MY – THAT THEN WIDOW AND 90%
2582 01:55:16,275 –> 01:55:21,047 WILL GO INTO AN S&P 500 INDEX
2583 01:55:18,778 –> 01:55:23,082 FUND, 10% INTO TREASURY.
2584 01:55:21,114 –> 01:55:26,251 ON THE OTHER HAND, I’M VERY
2585 01:55:23,149 –> 01:55:26,852 HAPPY HAVING MY FUTURE
2586 01:55:26,318 –> 01:55:30,356 CONTRIBUTIONS TO A GROUP OF
2587 01:55:26,919 –> 01:55:35,828 CHARITIES THAT WE SPREAD OVER.
2588 01:55:30,423 –> 01:55:37,230 I THINK THE ODDS ARE
2589 01:55:35,895 –> 01:55:40,199 BERKSHIRE – BERKSHIRE IS – I
2590 01:55:37,296 –> 01:55:45,204 LIKE IT BUT I’M NOT – I
2591 01:55:40,266 –> 01:55:47,906 DON’T – I DO NOT THINK THE
2592 01:55:45,271 –> 01:55:49,775 AVERAGE PERSON CAN PICK STOCKS.
2593 01:55:47,973 –> 01:55:53,545 WE HAPPEN TO HAVE A LARGE GROUP
2594 01:55:49,842 –> 01:55:54,414 OF PEOPLE THAT DIDN’T PICK
2595 01:55:53,612 –> 01:55:57,282 STOCKS BUT THEY PICKED CHARLIE
2596 01:55:54,480 –> 01:55:58,451 AND ME TO MANAGE MONEY FOR THEM
2597 01:55:57,349 –> 01:56:00,486 50, 60 YEARS AGO.
2598 01:55:58,518 –> 01:56:02,554 WE HAVE A VERY UNUSUAL GROUP OF
2599 01:56:00,553 –> 01:56:06,558 SHARE HOLD I THINK WHO LOOK AT
2600 01:56:02,621 –> 01:56:07,993 BERKSHIRE AS A LIFETIME SAVINGS
2601 01:56:06,625 –> 01:56:10,362 VEHICLE AND ONE THEY DON’T HAVE
2602 01:56:08,060 –> 01:56:11,864 TO THINK ABOUT AND ONE THAT
2603 01:56:10,429 –> 01:56:15,067 THEY’LL – YOU KNOW, THEY DON’T
2604 01:56:11,930 –> 01:56:17,102 LOOK AT IT AGAIN FOR 10 OR 20
2605 01:56:15,134 –> 01:56:18,671 YEARS THAT WILL HAVE TAKEN CARE
2606 01:56:17,169 –> 01:56:23,575 OF THE MONEY REASONABLY WELL.
2607 01:56:18,738 –> 01:56:24,677 I WOULDN’T ARGUE THE S&P 500
2608 01:56:23,642 –> 01:56:29,481 OVER TIME.
2609 01:56:24,744 –> 01:56:31,016 I LIKE BERKSHIRE BUT I – I
2610 01:56:29,548 –> 01:56:34,653 THINK THAT THE PERSON WHO
2611 01:56:31,083 –> 01:56:36,388 DOESN’T KNOW ANYTHING ABOUT THE
2612 01:56:34,720 –> 01:56:37,823 STOCKS AT ALL AND DOESN’T HAVE
2613 01:56:36,455 –> 01:56:39,625 ANY SPECIAL FEELINGS ABOUT
2614 01:56:37,890 –> 01:56:42,461 BERKSHIRE, I THINK THEY OUGHT TO
2615 01:56:39,692 –> 01:56:46,232 BUY THE S&P 500 INDEX.
2616 01:56:42,528 –> 01:56:48,200
AS A FOLLOW-UP TO THAT,
2617 01:56:46,299 –> 01:56:50,470 GERALD SILVER WRITES IN THE
2618 01:56:48,267 –> 01:56:55,974 TRUSTEES TO YOUR STATE – I
2619 01:56:50,536 –> 01:56:57,343 BELIEVE YOU’VE DIRECTED THE
2620 01:56:56,041 –> 01:56:58,944 MANAGERS TO INVEST IN THE FUND.
2621 01:56:57,410 –> 01:56:59,244 ISN’T THAT A VOTE OF NO
2622 01:56:59,011 –> 01:57:00,979 CONFIDENCE?
2623 01:56:59,311 –> 01:57:02,748
NO, WE’RE TALKING WAY LESS
2624 01:57:01,046 –> 01:57:04,917 THAN 1% OF MY ESTATE.
2625 01:57:02,815 –> 01:57:06,585 ONE THING I’M GOING TO DO,
2626 01:57:04,984 –> 01:57:08,654 INCIDENTALLY – ALL RICH PEOPLE
2627 01:57:06,652 –> 01:57:10,256 GET ADVISED BY THEIR LAWYERS TO
2628 01:57:08,721 –> 01:57:10,923 SET UP A TRUST SO NOBODY CAN SEE
2629 01:57:10,323 –> 01:57:13,025 YOUR WILL.
2630 01:57:10,990 –> 01:57:13,258 MY WILL IS GOING TO BE PUBLIC
2631 01:57:13,092 –> 01:57:14,960 RECORD.
2632 01:57:13,325 –> 01:57:16,295 YOU CAN CHECK AT SOME POINT IF
2633 01:57:15,027 –> 01:57:19,432 I’VE BEEN TELLING YOU THE TRUTH
2634 01:57:16,362 –> 01:57:23,068 ABOUT WHAT’S GOING TO GET DONE.
2635 01:57:19,499 –> 01:57:26,205 99.7% ROUGHLY OF MY ESTATE WILL
2636 01:57:23,135 –> 01:57:30,242 EITHER GO TO PHILANTHROPIES OR
2637 01:57:26,272 –> 01:57:31,743 TO THE FEDERAL GOVERNMENT AND
2638 01:57:30,309 –> 01:57:33,178 BEFORE IT DOES T I THINK
2639 01:57:31,810 –> 01:57:33,913 BERKSHIRE IS A VERY GOOD THING
2640 01:57:33,245 –> 01:57:37,516 TO HOLD.
2641 01:57:33,980 –> 01:57:40,953 BUT FOR A GIVEN INDIVIDUAL,
2642 01:57:37,583 –> 01:57:43,189 PARTICULARLY MY WIFE, I JUST
2643 01:57:41,020 –> 01:57:44,523 THINK THAT HAVING A TINY
2644 01:57:43,256 –> 01:57:46,225 FRACTION, WHICH IS ALL IT TAKES
2645 01:57:44,590 –> 01:57:49,361 FOR HER TO DO VERY WELL FOR THE
2646 01:57:46,292 –> 01:57:53,065 REST OF HER LIFE, I THINK THAT
2647 01:57:49,428 –> 01:57:56,368 THE BEST THING TO DO IS TO BUY
2648 01:57:53,132 –> 01:57:58,337 90% IN AN S&P 500 INDEX FUND.
2649 01:57:56,435 –> 01:58:02,541 NOW THE INDEX FUND PEOPLE
2650 01:57:58,404 –> 01:58:04,676 NATURALLY HAVE STARTED OVER THE
2651 01:58:02,608 –> 01:58:06,111 TIME THEY MARKET MORE AND MORE
2652 01:58:04,743 –> 01:58:07,079 PRODUCTS THAT GO TO OTHER
2653 01:58:06,178 –> 01:58:08,614 INDICES AND EVERYTHING.
2654 01:58:07,146 –> 01:58:09,982 THEY’RE REALLY STARTING TO SAY
2655 01:58:08,681 –> 01:58:13,452 TO THE AMERICAN PUBLIC, THEY’RE
2656 01:58:10,049 –> 01:58:15,821 SAYING, WELL, YOU CAN PICK WHAT
2657 01:58:13,518 –> 01:58:16,088 TO INVEST IN AND WE’LL SELL YOU
2658 01:58:15,888 –> 01:58:18,590 SOMETHING.
2659 01:58:16,155 –> 01:58:21,727 WHEN THEY HAVE GOTTEN THROUGH,
2660 01:58:18,657 –> 01:58:22,928 YOU DON’T KNOW ANYTHING IN
2661 01:58:21,794 –> 01:58:24,630 STOCKS.
2662 01:58:22,995 –> 01:58:28,367 SO I NAMED THE 500 INDEXES ONE
2663 01:58:24,697 –> 01:58:30,269 BUT IT’S A TINY PORTION BUT IT
2664 01:58:28,434 –> 01:58:30,569 WILL BE – IT WILL BE HER
2665 01:58:30,336 –> 01:58:31,937 LIVELIHOOD.
2666 01:58:30,636 –> 01:58:34,039 SHE’LL HAVE ALL THE MONEY SHE
2667 01:58:32,004 –> 01:58:35,107 NEEDS AND WAY BEYOND IT AND
2668 01:58:34,106 –> 01:58:40,980 THAT’S THAT.
2669 01:58:35,174 –> 01:58:42,915 I DON’T MIND HAVING THE 99.7%.
2670 01:58:41,047 –> 01:58:48,854 A LARGE PORTION OF IT, ASSUMING
2671 01:58:42,982 –> 01:58:50,322 THE LAW’S THE SAME AS NOW GO TO
2672 01:58:48,921 –> 01:58:54,460 PHILANTHROPY, IT WILL BE KEPT IN
2673 01:58:50,389 –> 01:58:55,861 BERKSHIRE UNTIL THEY FINALLY ARE
2674 01:58:54,527 –> 01:58:57,663 DISPOSED OF.
2675 01:58:55,928 –> 01:58:58,797
THIS QUESTION COMES FROM
2676 01:58:57,730 –> 01:59:00,532 ANDREW DICKSON IN THE U.K.
2677 01:58:58,864 –> 01:59:02,334 HE SAYS, MY QUESTION IS IN
2678 01:59:00,599 –> 01:59:03,702 RELATION TO THE OIL AND GAS
2679 01:59:02,401 –> 01:59:04,370 BUSINESS AND YOUR PURCHASE OF
2680 01:59:03,769 –> 01:59:06,238 CHEVRON STOCK.
2681 01:59:04,437 –> 01:59:08,207 WHEN BEING ASKED A QUESTION ON
2682 01:59:06,305 –> 01:59:09,141 TOBACCO STOCKS IN 1997 YOU
2683 01:59:08,274 –> 01:59:11,009 MENTIONED THAT INDIVIDUALS AND
2684 01:59:09,208 –> 01:59:12,144 COMPANIES OCCASIONALLY HAVE TO
2685 01:59:11,076 –> 01:59:12,945 DRAW MORAL LINES ABOUT WHAT
2686 01:59:12,211 –> 01:59:14,547 THEY’RE WILLING TO DO.
2687 01:59:13,012 –> 01:59:16,315 YOU STATED AT THE TIME THAT YOU
2688 01:59:14,613 –> 01:59:18,217 WERE NOT COMFORTABLE IN MAKING A
2689 01:59:16,382 –> 01:59:19,852 BIG COMMITMENT IN TOBACCO STOCKS
2690 01:59:18,284 –> 01:59:21,020 AND YOU WERE UNCOMFORTABLE ABOUT
2691 01:59:19,919 –> 01:59:22,588 THEIR PROSPECTS.
2692 01:59:21,087 –> 01:59:24,489 CHARLIE HAS ALSO REFERENCED
2693 01:59:22,654 –> 01:59:25,757 PASSING ON A PRIVATE TOBACCO
2694 01:59:24,556 –> 01:59:27,760 DEAL THAT YOU KNEW WAS A CINCH
2695 01:59:25,824 –> 01:59:28,561 AND YOU HAD NO REGRETS SAYING NO
2696 01:59:27,827 –> 01:59:30,563 TO THE TRANSACTION.
2697 01:59:28,628 –> 01:59:32,130 I’M NOT SUGGESTING THAT THE OIL
2698 01:59:30,629 –> 01:59:34,767 AND GAS BUSINESS HAS THE SAME
2699 01:59:32,197 –> 01:59:36,302 KNOWN NEGATIVE EXTERNALITIES AS
2700 01:59:34,834 –> 01:59:37,736 CIGARETTES, THEY DO NOT.
2701 01:59:36,369 –> 01:59:39,939 WITH TOBACCO THE CAUSE AND
2702 01:59:37,803 –> 01:59:40,339 EFFECT IS DIRECT, OBVIOUS AND
2703 01:59:40,006 –> 01:59:42,841 MEASURABLE.
2704 01:59:40,406 –> 01:59:45,544 WITH HYDROCARBONS THE SOCIETAL
2705 01:59:42,908 –> 01:59:46,912 COSTS AN BENEFITS ARE FAR MORE
2706 01:59:45,611 –> 01:59:49,148 COMPLEX TO DEBATE.
2707 01:59:46,979 –> 01:59:50,916 IT’S DRAWING THEIR LINES IN SUCH
2708 01:59:49,214 –> 01:59:52,551 A WAY THAT THEIR PAINTING DOES
2709 01:59:50,983 –> 01:59:52,851 NOT INCLUDE HYDROCARBONS,
2710 01:59:52,618 –> 01:59:56,755 PERIOD.
2711 01:59:52,918 –> 01:59:59,458 MY QUESTION IS AS THE ALARMISM
2712 01:59:56,822 –> 02:00:01,894 FROM THE CLIMATE COMMUNITY
2713 01:59:59,525 –> 02:00:08,200 BECOME PERVASIVE ENOUGH TO WHERE
2714 02:00:01,961 –> 02:00:10,937 IT’S IRRATIONAL.
2715 02:00:08,267 –> 02:00:12,671 IS THIS BECOMING AN OVERLY
2716 02:00:11,003 –> 02:00:14,974 EXPENSIVE TASK?
2717 02:00:12,738 –> 02:00:16,708 CAN WE GATHER FROM YOUR PURCHASE
2718 02:00:15,041 –> 02:00:17,943 OF CHEVRON STOCK YOU DO NOT
2719 02:00:16,775 –> 02:00:19,911 BELIEVE THE HOWLING FROM
2720 02:00:18,010 –> 02:00:23,282 SOCIETY, REGULATORS AND
2721 02:00:19,978 –> 02:00:24,850 POLITICIANS WILL IMPACT AND
2722 02:00:23,349 –> 02:00:29,255 CHEVRON FOR THE NEXT TEN YEARS?
2723 02:00:24,917 –> 02:00:30,989 CAN CONSUMERS ASSUME THIS CAN
2724 02:00:29,321 –> 02:00:35,127 GENERATE A SUFFICIENT RETURN ON
2725 02:00:31,056 –> 02:00:37,563 CAPITAL FOR A LONG TIME TO COME?
2726 02:00:35,194 –> 02:00:42,601
WELL, I’LL GIVE YOU A
2727 02:00:37,630 –> 02:00:43,636 TEN-WORD ANSWER TO THAT.
2728 02:00:42,668 –> 02:00:44,870 I CAN’T REMEMBER ALL OF THE
2729 02:00:43,702 –> 02:00:46,204 QUESTIONS THAT WERE THERE, BUT I
2730 02:00:44,937 –> 02:00:48,206 WOULD SAY THAT PEOPLE THAT ARE
2731 02:00:46,271 –> 02:00:51,710 ON THE EXTREMES OF BOTH SIDES
2732 02:00:48,273 –> 02:00:54,046 ARE A LITTLE NUTS.
2733 02:00:51,777 –> 02:00:55,414 I WOULD HATE TO HAVE ALL THE
2734 02:00:54,113 –> 02:00:55,948 HYDROCARBONS BANNED IN THREE
2735 02:00:55,481 –> 02:00:57,449 YEARS.
2736 02:00:56,015 –> 02:00:59,117 YOU KNOW, YOU WOULDN’T WANT A
2737 02:00:57,516 –> 02:01:01,887 WORLD – IT WOULDN’T WORK AND ON
2738 02:00:59,184 –> 02:01:03,322 THE OTHER HAND, YOU KNOW, WHAT’S
2739 02:01:01,954 –> 02:01:05,891 HAPPENING WILL BE ADAPTED TO
2740 02:01:03,389 –> 02:01:10,229 OVER TIME JUST AS WE’VE ADAPTED
2741 02:01:05,958 –> 02:01:11,830 TO ALL KINDS OF THINGS.
2742 02:01:10,296 –> 02:01:12,231 I’M INTERESTED IN THE QUOTE FROM
2743 02:01:11,897 –> 02:01:13,232 1997.
2744 02:01:12,298 –> 02:01:15,868 WE’VE TALKED ABOUT THIS BEFORE.
2745 02:01:13,299 –> 02:01:19,571 WE HAVE NO PROBLEM OWNING COSTCO
2746 02:01:15,935 –> 02:01:21,840 OR WALMART AND A SUBSTANTIAL
2747 02:01:19,638 –> 02:01:23,976 NUMBER OF THEIR STORES.
2748 02:01:21,907 –> 02:01:26,178 YOU KNOW, THEY SELL CIGARETTES.
2749 02:01:24,043 –> 02:01:26,878 BIG ITEM.
2750 02:01:26,245 –> 02:01:27,446 IT’S SOMETHING THAT BRINGS
2751 02:01:26,945 –> 02:01:30,649 PEOPLE IN.
2752 02:01:27,513 –> 02:01:33,319 THEY KNOW THE PRICE OF
2753 02:01:30,715 –> 02:01:34,053 CIGARETTES AND THEY PUT THEM OUT
2754 02:01:33,386 –> 02:01:35,421 FRONT.
2755 02:01:34,120 –> 02:01:37,089 IT’S A VERY TOUGH SITUATION.
2756 02:01:35,487 –> 02:01:39,592 WE MADE THAT DECISION A LONG
2757 02:01:37,156 –> 02:01:40,893 TIME AGO WHEN WE WENT TO MEMPHIS
2758 02:01:39,658 –> 02:01:43,095 AND WE LOOKED AT A BUSINESS THAT
2759 02:01:40,960 –> 02:01:44,996 WAS A VERY, VERY GOOD BUSINESS.
2760 02:01:43,162 –> 02:01:46,398 IT WAS MUCH LESS HARMFUL, AT
2761 02:01:45,063 –> 02:01:47,599 LEAST FROM EVERYTHING I COULD
2762 02:01:46,465 –> 02:01:51,970 FIND OUT.
2763 02:01:47,666 –> 02:01:53,372 IT WAS MUCH LESS HARMFUL THAN
2764 02:01:52,037 –> 02:01:53,639 SMOKING TOBACCO, CHEWING TOBACCO
2765 02:01:53,439 –> 02:01:54,873 WAS.
2766 02:01:53,706 –> 02:01:56,408 THESE WERE DECENT PEOPLE.
2767 02:01:54,940 –> 02:01:58,243 THEY WERE RUNNING A LEGAL
2768 02:01:56,475 –> 02:01:59,010 BUSINESS AND THEY ALL CHEWED
2769 02:01:58,310 –> 02:02:00,545 TOBACCO THEMSELVES.
2770 02:01:59,077 –> 02:02:02,647 THEY TOLD ME THAT THEIR MOTHER
2771 02:02:00,612 –> 02:02:03,782 WAS 100 AND CHEWING TOBACCO AND
2772 02:02:02,714 –> 02:02:05,584 ALL OF THESE THINGS.
2773 02:02:03,849 –> 02:02:07,919 CHARLIE AND I DID GO DOWN IN THE
2774 02:02:05,651 –> 02:02:09,588 LOBBY OF THAT HOTEL AND WE JUST
2775 02:02:07,986 –> 02:02:10,823 SAID TO OURSELVES, THIS IS
2776 02:02:09,655 –> 02:02:11,790 PROBABLY THE BEST BUSINESS WE’VE
2777 02:02:10,890 –> 02:02:14,860 EVER SEEN.
2778 02:02:11,857 –> 02:02:17,062 I CALLED MY THEN SON-IN-LAW, HE
2779 02:02:14,927 –> 02:02:19,932 HAD STUDIED CHEWING TOBACCO AND
2780 02:02:17,129 –> 02:02:21,700 ITS EFFECTS WHEN HE WAS WORKING
2781 02:02:19,998 –> 02:02:26,872 FOR A NADER RELATED ORGANIZATION
2782 02:02:21,767 –> 02:02:29,208 AND WE DECIDED NOT TO DO IT.
2783 02:02:26,939 –> 02:02:31,343 YOU KNOW, I SEE – I USED TO SEE
2784 02:02:29,275 –> 02:02:32,978 ADS IN OUR PAPER FROM FINANCIAL
2785 02:02:31,410 –> 02:02:33,679 COMPANIES WHERE I KNEW THEY WERE
2786 02:02:33,045 –> 02:02:37,383 TERRIBLE.
2787 02:02:33,746 –> 02:02:38,517 IT’S A VERY TOUGH THING TO
2788 02:02:37,449 –> 02:02:39,385 DECIDE WHETHER YOU GET IN OR OUT
2789 02:02:38,584 –> 02:02:41,720 OF A BUSINESS.
2790 02:02:39,451 –> 02:02:43,689 VERY TOUGH TIME TO DECIDE WHAT
2791 02:02:41,787 –> 02:02:44,490 COMPANIES BENEFIT SOCIETIES MORE
2792 02:02:43,756 –> 02:02:46,325 THAN OTHERS.
2793 02:02:44,557 –> 02:02:49,061 I DON’T KNOW WHETHER I THINK
2794 02:02:46,391 –> 02:02:50,529 CHEVRON’S BENEFITTED SOCIETIES
2795 02:02:49,128 –> 02:02:53,833 IN ALL KINDS OF WAYS AND I THINK
2796 02:02:50,596 –> 02:02:55,100 IT WILL CONTINUE TO.
2797 02:02:53,899 –> 02:03:01,306 I DO THINK THAT THE WORLD’S
2798 02:02:55,166 –> 02:03:04,510 MOVING AWAY FROM THEM, TOO.
2799 02:03:01,373 –> 02:03:06,077 THAT COULD CHANGE.
2800 02:03:04,577 –> 02:03:07,412 I DON’T LIKE MAKING THE MORAL
2801 02:03:06,144 –> 02:03:08,847 JUDGMENTS ON STOCKS IN TERMS OF
2802 02:03:07,479 –> 02:03:11,416 ACTUALLY RUNNING THE BUSINESSES,
2803 02:03:08,914 –> 02:03:13,118 BUT THERE’S SOMETHING ABOUT
2804 02:03:11,483 –> 02:03:18,624 EVERY BUSINESS THAT YOU KNEW
2805 02:03:13,185 –> 02:03:26,031 WHAT YOU WOULDN’T LIKE AND, YOU
2806 02:03:18,691 –> 02:03:28,400 KNOW, MEAT PACK ERS, YOU KNOW.
2807 02:03:26,098 –> 02:03:29,835 IF YOU EXPECT PERFECTION IN YOUR
2808 02:03:28,467 –> 02:03:32,304 SPOUSE OR YOUR FRIENDS OR IN
2809 02:03:29,902 –> 02:03:32,938 COMPANIES, YOU’RE NOT GOING TO
2810 02:03:32,371 –> 02:03:36,408 FIND IT.
2811 02:03:33,005 –> 02:03:39,144 WHAT YOU ELECT TO DO YOURSELF,
2812 02:03:36,475 –> 02:03:41,246 IF YOU OWN AN INDEX FUND, YOU
2813 02:03:39,211 –> 02:03:44,817 OWN – BELIEVE ME, CHEVRON IS
2814 02:03:41,313 –> 02:03:48,787 NOT AN EVIL COMPANY IN THE LEAST
2815 02:03:44,884 –> 02:03:49,955 AND I HAVE NO COMPUNCTION ABOUT
2816 02:03:48,854 –> 02:03:51,290 OWNING – IN THE LEAST ABOUT
2817 02:03:50,022 –> 02:03:52,925 OWNING CHEVRON.
2818 02:03:51,357 –> 02:03:55,193 AND IF WE OWNED THE ENTIRE
2819 02:03:52,992 –> 02:03:56,094 BUSINESS, I WOULD NOT FEEL
2820 02:03:55,260 –> 02:03:57,062 UNCOMFORTABLE ABOUT BEING IN
2821 02:03:56,161 –> 02:03:57,295 THAT BUSINESS.
2822 02:03:57,129 –> 02:04:00,933 CHARLIE?
2823 02:03:57,362 –> 02:04:03,735
WELL, I AGREE.
2824 02:04:01,000 –> 02:04:07,439 YOU CAN IMAGINE TWO THINGS.
2825 02:04:03,802 –> 02:04:08,207 YOUNG MAN MARRIES INTO YOUR
2826 02:04:07,506 –> 02:04:15,781 FAMILY.
2827 02:04:08,274 –> 02:04:17,916 HE’S AN ENGLISH PROFESSOR AT
2828 02:04:15,848 –> 02:04:18,617 SWARTHMOREAR HE WORKS FOR
2829 02:04:17,983 –> 02:04:20,786 CHEVRON?
2830 02:04:18,684 –> 02:04:21,119 WHICH WOULD YOU PICK SIGHT
2831 02:04:20,853 –> 02:04:22,787 UNSEEN?
2832 02:04:21,186 –> 02:04:24,556 I WILL ADMIT I WOULD TAKE THE
2833 02:04:22,854 –> 02:04:28,660 GUY FROM CHEVRON.
2834 02:04:24,623 –> 02:04:30,195
I HOPE YOUR DAUGHTERS AGREE
2835 02:04:28,727 –> 02:04:32,431 WITH YOU.
2836 02:04:30,262 –> 02:04:33,065
ON THE OTHER SIDE OF THAT
2837 02:04:32,498 –> 02:04:35,567 ARGUMENT, BECAUSE THERE WERE
2838 02:04:33,132 –> 02:04:37,436 LOTS OF EMAILS THAT CAME IN ON
2839 02:04:35,634 –> 02:04:37,703 BOTH SIDES OF THESE ESG
2840 02:04:37,503 –> 02:04:40,372 QUESTIONS.
2841 02:04:37,770 –> 02:04:42,641 THIS ONE COMES FROM CHRISTINA
2842 02:04:40,439 –> 02:04:43,875 GALAGOS WHO’S BEEN A
2843 02:04:42,708 –> 02:04:47,479 SHAREHOLDERS SINCE 2018.
2844 02:04:43,942 –> 02:04:48,147 ON ITEMS 2 AND 3 OF THE PROXY
2845 02:04:47,546 –> 02:04:49,848 MATERIALS THE BOARD RECOMMENDED
2846 02:04:48,213 –> 02:04:51,616 VOTING AGAINST REGARDING THE
2847 02:04:49,915 –> 02:04:52,718 REPORTING OF CLIMATE RELATED
2848 02:04:51,683 –> 02:04:54,953 RISKS AND OPPORTUNITIES AS WELL
2849 02:04:52,784 –> 02:04:56,755 AS ON THE SHAREHOLDER PROPOSAL
2850 02:04:55,020 –> 02:04:57,890 REGARDING DIVERSITY AND
2851 02:04:56,822 –> 02:04:59,357 INCLUSION REPORTING.
2852 02:04:57,957 –> 02:05:02,160 BERKSHIRE IS SUCH A FORCE FOR
2853 02:04:59,424 –> 02:05:03,929 GOOD WHEN IT COMES TO FINANCIAL
2854 02:05:02,227 –> 02:05:05,564 LITERACY, WHY NOT BE A FORCE FOR
2855 02:05:03,996 –> 02:05:07,232 GOOD AND EXAMPLE WHEN IT COMES
2856 02:05:05,631 –> 02:05:07,465 TO THESE TWO VERY IMPORTANT
2857 02:05:07,299 –> 02:05:10,435 ISSUES?
2858 02:05:07,532 –> 02:05:11,436 PLEASE SHARE WITH US MORE ABOUT
2859 02:05:10,502 –> 02:05:15,774 THE AGAINST RECOMMENDATION.
2860 02:05:11,503 –> 02:05:17,609
WELL, I MEAN, GREG CAN TALK A
2861 02:05:15,841 –> 02:05:22,714 LITTLE BIT ABOUT WHAT BERKSHIRE
2862 02:05:17,676 –> 02:05:24,349 HAS DONE AS OPPOSED TO – IN
2863 02:05:22,781 –> 02:05:26,485 TERMS OF THE ENVIRONMENTAL.
2864 02:05:24,416 –> 02:05:27,986 I WOULD SAY THIS.
2865 02:05:26,552 –> 02:05:29,655 IT’S VERY INTERESTING.
2866 02:05:28,053 –> 02:05:31,723 WITH EVERYTHING THAT’S BEING
2867 02:05:29,722 –> 02:05:34,426 RELEASED, I THINK WE HAVE OVER 1
2868 02:05:31,790 –> 02:05:36,194 MILLION SHAREHOLDERS.
2869 02:05:34,493 –> 02:05:37,663 CAN’T BE SURE BECAUSE OF THE
2870 02:05:36,261 –> 02:05:37,963 STREET NAME AND DUPLICATE
2871 02:05:37,730 –> 02:05:42,868 ACCOUNTS.
2872 02:05:38,030 –> 02:05:44,269 SEEMS VERY, VERY LIKELY.
2873 02:05:42,935 –> 02:05:45,771 I’VE HAD – AND I GET THE
2874 02:05:44,336 –> 02:05:49,608 LETTERS THAT ARE WRITTEN TO ME.
2875 02:05:45,838 –> 02:05:51,876 I DON’T THINK I’VE HAD – I
2876 02:05:49,675 –> 02:05:57,182 DON’T THINK I’VE HAD THREE
2877 02:05:51,943 –> 02:05:57,516 LETTERS IN THE LAST YEAR FROM
2878 02:05:57,249 –> 02:06:01,687 SHAREHOLDERS.
2879 02:05:57,582 –> 02:06:04,222 OUR VOTE ON THIS, AS YOU’LL SEE
2880 02:06:01,754 –> 02:06:06,024 LATER, IS THAT OVERWHELMINGLY
2881 02:06:04,289 –> 02:06:07,993 THE PEOPLE THAT BOUGHT BERKSHIRE
2882 02:06:06,091 –> 02:06:08,794 WITH THEIR OWN MONEY VOTED
2883 02:06:08,060 –> 02:06:10,361 AGAINST THOSE.
2884 02:06:08,861 –> 02:06:12,097 MOST OF THE VOTES FOR IT WERE
2885 02:06:10,428 –> 02:06:13,999 BY – CAME FROM PEOPLE WHO NEVER
2886 02:06:12,164 –> 02:06:16,702 PUT A DIME OF THEIR OWN MONEY
2887 02:06:14,066 –> 02:06:18,937 INTO BERKSHIRE.
2888 02:06:16,769 –> 02:06:20,639 AND SO THEY – AND I DON’T THINK
2889 02:06:19,004 –> 02:06:22,007 THEY READ OUR ANNUAL REPORTS AND
2890 02:06:20,706 –> 02:06:23,875 I DON’T THINK THEY READ THE
2891 02:06:22,073 –> 02:06:25,610 REPORTS OF BERKSHIRE HATHAWAY
2892 02:06:23,942 –> 02:06:27,278 ENERGY AND I DON’T THINK THEY
2893 02:06:25,677 –> 02:06:29,948 KNOW – YOU KNOW, I TALK ABOUT
2894 02:06:27,345 –> 02:06:32,484 WHAT WE’RE DOING IN HIGH VOLTAGE
2895 02:06:30,015 –> 02:06:34,519 TRANSMISSION, WE’RE DOING MORE
2896 02:06:32,551 –> 02:06:34,752 THAN ANY OTHER COMPANY IN THE
2897 02:06:34,586 –> 02:06:36,121 COUNTRY.
2898 02:06:34,819 –> 02:06:37,756 THE PRESIDENT TALKED ABOUT WHAT
2899 02:06:36,188 –> 02:06:42,728 THE GOVERNMENT’S GOING TO DO,
2900 02:06:37,823 –> 02:06:45,464 HOW IMPORTANT IT IS, YOU KNOW?
2901 02:06:42,795 –> 02:06:47,199 WE HAVE A RECORD THAT OVERALL IS
2902 02:06:45,531 –> 02:06:49,067 INCREDIBLY GOOD, BUT WE HAVE A
2903 02:06:47,265 –> 02:06:50,635 GROUP OF ORGANIZATIONS, JUST
2904 02:06:49,134 –> 02:06:52,170 GENERALLY, AND THEY’RE NICE
2905 02:06:50,702 –> 02:06:54,973 PEOPLE BUT THEY WANT US TO
2906 02:06:52,237 –> 02:06:57,075 ANSWER A BUNCH OF QUESTIONS
2907 02:06:55,040 –> 02:07:00,712 THEIR WAY SO THEY WANT US TO GO
2908 02:06:57,142 –> 02:07:03,248 TO DAIRY QUEEN, BORSHIMES, ALL
2909 02:07:00,779 –> 02:07:06,251 OF THOSE PEOPLE ARE FILLING OUT
2910 02:07:03,315 –> 02:07:06,752 REPORTS AND SHOW A BUNCH OF
2911 02:07:06,318 –> 02:07:08,887 FIGURES.
2912 02:07:06,819 –> 02:07:11,023 THE REPORTS THAT COUNT ARE THE
2913 02:07:08,954 –> 02:07:11,290 REPORTS GREG GETS ON BERKSHIRE
2914 02:07:11,090 –> 02:07:13,692 HATHAWAY.
2915 02:07:11,357 –> 02:07:15,761 YOU TALK ABOUT THREE OF OUR
2916 02:07:13,759 –> 02:07:16,395 COMPANIES, YOU’VE COVERED 95% OF
2917 02:07:15,828 –> 02:07:18,764 IT.
2918 02:07:16,462 –> 02:07:22,067 IT’S ASININE FRANKLY IN MY VIEW.
2919 02:07:18,831 –> 02:07:23,602 WE DO SOME OTHER ASININE THINGS
2920 02:07:22,134 –> 02:07:24,469 BECAUSE WE’RE REQUIRED TO DO
2921 02:07:23,669 –> 02:07:28,440 THEM.
2922 02:07:24,536 –> 02:07:28,874 WE’LL DO THEM BECAUSE WE’RE
2923 02:07:28,507 –> 02:07:31,209 REQUIRED.
2924 02:07:28,941 –> 02:07:33,778 TO HAVE THE PEOPLE AT BUSINESS
2925 02:07:31,276 –> 02:07:35,680 WIRE, DAIRY QUEEN, ALL THOSE
2926 02:07:33,845 –> 02:07:36,715 PLACES FILLING OUT REPORTS AND
2927 02:07:35,747 –> 02:07:38,717 MAKING SOME COMMON REPORT THAT
2928 02:07:36,782 –> 02:07:39,985 COMES IN, WE DON’T DO THAT STUFF
2929 02:07:38,784 –> 02:07:43,689 AT BERKSHIRE.
2930 02:07:40,052 –> 02:07:44,990 WE’VE GOT – DURING THE PANDEMIC
2931 02:07:43,756 –> 02:07:46,992 WE PROBABLY HAVE ABOUT 12 PEOPLE
2932 02:07:45,057 –> 02:07:54,199 THAT COME INTO HEADQUARTERS.
2933 02:07:47,059 –> 02:07:56,601 WE’VE GOT 360,000 PEOPLE WORKING
2934 02:07:54,266 –> 02:07:58,603 IN THE COMPANY THAT – ALL KINDS
2935 02:07:56,668 –> 02:08:00,305 OF DIVERSE ACTIVITIES AND IT’S
2936 02:07:58,670 –> 02:08:01,807 BUILT – I DON’T WANT TO GET
2937 02:08:00,372 –> 02:08:03,675 INTO THE WHOLE THING.
2938 02:08:01,874 –> 02:08:08,980 IT’S BUILT ON AUTONOMY.
2939 02:08:03,741 –> 02:08:10,215 I AM PROBABLY THE ONLY CEO OF AN
2940 02:08:09,047 –> 02:08:13,651 S&P 500 COMPANY THAT DOES NOT
2941 02:08:10,282 –> 02:08:14,619 GET A CONSOLIDATED INCOME
2942 02:08:13,718 –> 02:08:17,789 STATEMENT EVERY MONTH.
2943 02:08:14,686 –> 02:08:18,990 I MEAN, EVERY OTHER COMPANY I’LL
2944 02:08:17,856 –> 02:08:20,525 BET IN THE S&P 500 PRINTS OUT
2945 02:08:19,057 –> 02:08:22,360 THE EARNINGS THEY HAD AT THE
2946 02:08:20,592 –> 02:08:24,996 END, YOU KNOW, FROM FEBRUARY AND
2947 02:08:22,427 –> 02:08:26,565 MARCH AND CEO GETS THEM AND A
2948 02:08:25,063 –> 02:08:26,765 WHOLE BUNCH OF OTHER PEOPLE GET
2949 02:08:26,632 –> 02:08:28,233 IT.
2950 02:08:26,832 –> 02:08:29,267 I DON’T GET IT.
2951 02:08:28,300 –> 02:08:32,671 I DON’T NEED IT.
2952 02:08:29,334 –> 02:08:33,838 I COULD PUT 60 OR 70 COMPANIES
2953 02:08:32,738 –> 02:08:35,273 THROUGH A WHOLE LOT OF TROUBLE
2954 02:08:33,905 –> 02:08:36,441 AND EVERYTHING, THEY’D HAND ME
2955 02:08:35,340 –> 02:08:37,175 SOMETHING AND I KNOW THE ANSWER
2956 02:08:36,508 –> 02:08:38,643 TO IT ALREADY.
2957 02:08:37,242 –> 02:08:40,312 IT DOESN’T MAKE ANY DIFFERENCE.
2958 02:08:38,710 –> 02:08:43,348 THEY’VE GOT THE MONEY THEY NEED.
2959 02:08:40,379 –> 02:08:44,516 SO WE DON’T DO THINGS JUST
2960 02:08:43,415 –> 02:08:45,950 BECAUSE WE’VE GOT A DEPARTMENT
2961 02:08:44,583 –> 02:08:48,753 OF THIS OR A DEPARTMENT OF THAT
2962 02:08:46,017 –> 02:08:51,957 AND WE DON’T WANT TO SET UP A
2963 02:08:48,820 –> 02:08:54,626 LOT OF DEPARTMENTS LIKE THAT.
2964 02:08:52,024 –> 02:08:56,427 WHAT’S IMPORTANT IS WHAT WE’RE
2965 02:08:54,693 –> 02:08:58,597 DOING – WELL, PRIMARILY
2966 02:08:56,494 –> 02:08:59,264 BERKSHIRE HATHAWAY AND THE
2967 02:08:58,664 –> 02:09:02,000 RAILROAD.
2968 02:08:59,331 –> 02:09:07,172 I’LL LET GREG TELL YOU ABOUT
2969 02:09:02,067 –> 02:09:10,075 THAT IN JUST ONE SECOND.
2970 02:09:07,239 –> 02:09:11,709 BUT – p» I DON’T THINK WE THI
2971 02:09:10,142 –> 02:09:13,344 KNOW THE ANSWER TO ALL OF THESE
2972 02:09:11,776 –> 02:09:14,279 QUESTIONS ABOUT GLOBAL WARMING
2973 02:09:13,411 –> 02:09:16,014 AND SO FORTH.
2974 02:09:14,346 –> 02:09:18,049 PEOPLE WHO ASK THE QUESTIONS
2975 02:09:16,081 –> 02:09:19,918 THINK THEY KNOW THE ANSWERS,
2976 02:09:18,116 –> 02:09:22,020 WE’RE JUST MORE MODEST.
2977 02:09:19,985 –> 02:09:23,788
WELL, BUT EVEN IF WE KNEW THE
2978 02:09:22,087 –> 02:09:25,424 ANSWER, IN TERMS OF THE REPORTS
2979 02:09:23,855 –> 02:09:27,392 WE WOULD – WE WOULD NOT COLLECT
2980 02:09:25,490 –> 02:09:30,729 A WHOLE LOT OF THINGS THAT DON’T
2981 02:09:27,459 –> 02:09:33,364 MEAN ANYTHING TO US TO SATISFY
2982 02:09:30,795 –> 02:09:35,100 PEOPLE WHO ACTUALLY DON’T KNOW
2983 02:09:33,431 –> 02:09:37,535 WHAT THEY’RE TALKING ABOUT.
2984 02:09:35,167 –> 02:09:38,804 IN MANY CASES I CAN TELL THEY
2985 02:09:37,602 –> 02:09:41,773 HAVEN’T READ OUR REPORT.
2986 02:09:38,871 –> 02:09:43,141 WE, AS I POINT OUT IN THE ANNUAL
2987 02:09:41,840 –> 02:09:44,309 REPORT, I NEVER – NOBODY WOULD
2988 02:09:43,208 –> 02:09:46,945 HAVE GUESSED IT.
2989 02:09:44,376 –> 02:09:48,213 PEOPLE THINK WE’RE A BUNCH OF
2990 02:09:47,012 –> 02:09:49,681 GUYS THAT OWN STOCKS AND ALL OF
2991 02:09:48,280 –> 02:09:55,086 THAT SORT OF THING.
2992 02:09:49,748 –> 02:09:56,388 BERKSHIRE HATHAWAY OWNS BY GAP
2993 02:09:55,153 –> 02:09:58,122 ACCOUNTING MORE PROPERTY PLANT
2994 02:09:56,455 –> 02:09:58,656 EQUIPMENT, BUSINESS
2995 02:09:58,189 –> 02:09:59,725 INFRASTRUCTURE WHAT THE
2996 02:09:58,723 –> 02:10:02,327 PRESIDENT GOT THROUGH TALKING
2997 02:09:59,791 –> 02:10:02,694 ABOUT WEDNESDAY NIGHT,
2998 02:10:02,394 –> 02:10:07,232 INFRASTRUCTURE.
2999 02:10:02,761 –> 02:10:09,168 WE HAVE MEASURED BY GAP
3000 02:10:07,299 –> 02:10:10,335 ACCOUNTING THAN ANYBODY ELSE,
3001 02:10:09,234 –> 02:10:12,704 MORE THAN ANY OF THOSE COMPANIES
3002 02:10:10,402 –> 02:10:14,839 ON THE LIST OF LARGEST COMPANIES
3003 02:10:12,771 –> 02:10:15,774 AND WE’VE GOT IT BY A
3004 02:10:14,906 –> 02:10:18,410 SUBSTANTIAL MARGIN.
3005 02:10:15,841 –> 02:10:22,380 SO WE HAVE AN INVESTMENT IN WHAT
3006 02:10:18,477 –> 02:10:23,982 MAKES THIS COUNTRY MOVE AND
3007 02:10:22,447 –> 02:10:26,017 WORK.
3008 02:10:24,049 –> 02:10:27,786 15% OF THE INTERSTATE GOODS MOVE
3009 02:10:26,084 –> 02:10:29,554 ON OUR RAILROAD.
3010 02:10:27,853 –> 02:10:36,127 WE’RE BUILDING TRANSMISSION AND
3011 02:10:29,621 –> 02:10:38,796 WE STARTED IN 2006 OR 7 PLANNING
3012 02:10:36,194 –> 02:10:40,565 HOW WE WOULD CLOSE COAL PLANTS
3013 02:10:38,863 –> 02:10:42,467 BUT YOU CAN’T CLOSE COAL PLANTS
3014 02:10:40,631 –> 02:10:45,704 UNTIL YOU GET THE ELECTRICITY
3015 02:10:42,534 –> 02:10:45,971 FROM WHERE IT’S GENERATED TO THE
3016 02:10:45,771 –> 02:10:51,543 CUSTOMER.
3017 02:10:46,038 –> 02:10:57,082 IF YOU ARE GOING TO GENERATE IT
3018 02:10:51,609 –> 02:11:00,685 IN WYOMING – THAT’S THE WAY IT
3019 02:10:57,148 –> 02:11:01,086 WAS DONE 350 YEARS AGO, 75 YEAR
3020 02:11:00,752 –> 02:11:02,453 AGO.
3021 02:11:01,153 –> 02:11:04,188 THERE’S NO REASON TO HAVE THE
3022 02:11:02,520 –> 02:11:06,024 WIND BLOWING IN WYOMING AND
3023 02:11:04,255 –> 02:11:06,591 TRYING TO TURN ON THE LIGHTS IN
3024 02:11:06,091 –> 02:11:08,393 LAS VEGAS.
3025 02:11:06,658 –> 02:11:11,796 WE WENT ON THE PLAN A LOT
3026 02:11:08,460 –> 02:11:12,230 EARLIER THAN PEOPLE WERE TALKING
3027 02:11:11,863 –> 02:11:13,531 ABOUT.
3028 02:11:12,297 –> 02:11:15,267 WE SAID 16 BILLION OR WHATEVER
3029 02:11:13,598 –> 02:11:15,534 IT WAS IN THE ANNUAL REPORT
3030 02:11:15,334 –> 02:11:17,468 UNDERWAY.
3031 02:11:15,601 –> 02:11:20,972 WE JUST ADDED 2 BILLION SINCE
3032 02:11:17,535 –> 02:11:22,840 THE ANNUAL REPORT AND THERE’S NO
3033 02:11:21,039 –> 02:11:24,009 UTILITY IN THE COUNTRY COMING
3034 02:11:22,907 –> 02:11:25,477 ANYWHERE CLOSE TO THAT.
3035 02:11:24,076 –> 02:11:26,511 TELL THEM A LITTLE BIT ABOUT IT.
3036 02:11:25,544 –> 02:11:27,345
SURE.
3037 02:11:26,578 –> 02:11:32,284 THANK YOU.
3038 02:11:27,412 –> 02:11:36,821 AS WARREN TOUCHED ON, BHE AND
3039 02:11:32,351 –> 02:11:37,923 BHMF HAVE THE SIGNIFICANT CARBON
3040 02:11:36,888 –> 02:11:38,356 FOOTPRINT WHEN YOU TALK ABOUT
3041 02:11:37,990 –> 02:11:39,924 IT.
3042 02:11:38,423 –> 02:11:40,892 YOU’VE TALKED ABOUT THE
3043 02:11:39,991 –> 02:11:42,026 DISCLOSURE GOING ALL THE WAY
3044 02:11:40,959 –> 02:11:47,398 BACK TO 2007.
3045 02:11:42,093 –> 02:11:49,567 I DID PULL THOSE TWO INVESTOR
3046 02:11:47,465 –> 02:11:52,370 PRESENTATIONS FROM 2007 AND THE
3047 02:11:49,634 –> 02:11:55,273 MOST RECENT ONE FROM 2021.
3048 02:11:52,437 –> 02:11:56,507 IF WE CAN PULL UP BHE 1 AS A
3049 02:11:55,340 –> 02:11:59,010 SLIDE, IT WOULD HIGHLIGHT GOING
3050 02:11:56,574 –> 02:12:00,345 ALL THE WAY BACK TO 2007 WE’VE
3051 02:11:59,077 –> 02:12:01,479 BEEN DOING INVESTOR
3052 02:12:00,411 –> 02:12:05,383 PRESENTATIONS FOR OUR – WHAT WE
3053 02:12:01,546 –> 02:12:06,584 CALL OUR FIXED INCOME INVESTORS
3054 02:12:05,450 –> 02:12:08,320 AND WE’VE DONE THAT THROUGH –
3055 02:12:06,651 –> 02:12:11,490 EVERY YEAR THROUGH 2021.
3056 02:12:08,387 –> 02:12:13,558 WE’VE PROVIDED VERY SIMILAR
3057 02:12:11,556 –> 02:12:15,593 DISCLOSURES TO OUR BOARD ON AN
3058 02:12:13,625 –> 02:12:20,365 ANNUAL BASIS AND HAD DISCUSSIONS
3059 02:12:15,660 –> 02:12:23,435 AROUND BERKSHIRE HATHAWAY’S
3060 02:12:20,432 –> 02:12:26,104 ENERGY TO DECASH BOW NIEZ.
3061 02:12:23,502 –> 02:12:27,472 IF YOU GO BACK TO THE INCOME
3062 02:12:26,171 –> 02:12:30,208 CONFERENCE, WE WERE HAVING A
3063 02:12:27,539 –> 02:12:34,746 CONFERENCE AT THAT TIME, WE HAVE
3064 02:12:30,275 –> 02:12:34,979 THIRD PARTY DEBT, CAPITAL IS
3065 02:12:34,813 –> 02:12:37,582 RAISED.
3066 02:12:35,046 –> 02:12:41,219 IT’S USED ACROSS THE REGULATED
3067 02:12:37,649 –> 02:12:42,420 ENTITIES TO MANAGE OUR TOTAL
3068 02:12:41,286 –> 02:12:43,888 COSTS TO THE UMS CAN.
3069 02:12:42,487 –> 02:12:45,957 WE HAVE INVESTORS.
3070 02:12:43,955 –> 02:12:46,157 WE’RE HIGHLIGHTING ON AN ANNUAL
3071 02:12:46,024 –> 02:12:48,426 BASIS.
3072 02:12:46,224 –> 02:12:50,395 IF YOU GO BACK TO THAT 2007
3073 02:12:48,493 –> 02:12:50,729 INVESTOR CONFERENCE, IT’S
3074 02:12:50,462 –> 02:12:52,430 INTERESTING.
3075 02:12:50,795 –> 02:12:53,331 IN THAT PRESENTATION WE’RE
3076 02:12:52,497 –> 02:12:56,634 HIGHLIGHTING CLIMATE CHANGE,
3077 02:12:53,398 –> 02:12:58,836 THAT IT’S A FUNDAMENTAL RISK AND
3078 02:12:56,701 –> 02:12:59,170 WE DISCUSS WHAT GOOD POLICY
3079 02:12:58,903 –> 02:13:03,274 WOULD BE.
3080 02:12:59,237 –> 02:13:04,609 WE DISCUSSED INNOVATION.
3081 02:13:03,341 –> 02:13:05,677 WE DISCUSSED MARKET
3082 02:13:04,676 –> 02:13:07,612 TRANSFORMATION AND THE
3083 02:13:05,743 –> 02:13:09,247 IMPORTANCE OF SETTING TARGETS AT
3084 02:13:07,679 –> 02:13:10,915 THAT POINT IN TIME.
3085 02:13:09,314 –> 02:13:14,686 AND WE HAD RECOMMENDATIONS FOR
3086 02:13:10,982 –> 02:13:16,487 OUR INDUSTRY.
3087 02:13:14,753 –> 02:13:19,357 THEN SINCE THEN EACH YEAR WE’VE
3088 02:13:16,554 –> 02:13:21,692 PRESENTED REALLY A PLAN AND A
3089 02:13:19,424 –> 02:13:23,861 STRATEGY AROUND HOW EACH OF OUR
3090 02:13:21,759 –> 02:13:26,097 BUSINESSES IN DHE BUT EACH OF
3091 02:13:23,928 –> 02:13:27,966 OUR REGULATED ENTITIES, HOW
3092 02:13:26,164 –> 02:13:30,068 THEY’RE GOING TO TRANSFORM.
3093 02:13:28,033 –> 02:13:32,404 THE WHOLE TRANSFORMATION HAS
3094 02:13:30,135 –> 02:13:35,206 BEEN AROUND DECARBONIZATION.
3095 02:13:32,471 –> 02:13:38,943 MANAGING THAT RISK ON BEHALF OF
3096 02:13:35,273 –> 02:13:43,515 OUR STAKEHOLDERS IN MANY STATES,
3097 02:13:39,010 –> 02:13:44,416 CUSTOMERS WE SEARCH, AND FOR
3098 02:13:43,582 –> 02:13:45,783 BERKSHIRE’S SHAREHOLDERS.
3099 02:13:44,483 –> 02:13:47,085 AS YOU GO THROUGH THOSE
3100 02:13:45,850 –> 02:13:48,553 PRESENTATIONS THERE’S A COMMON
3101 02:13:47,151 –> 02:13:48,786 THEME AND WARREN TOUCHED ON IT
3102 02:13:48,620 –> 02:13:52,757 ALREADY.
3103 02:13:48,853 –> 02:13:54,992 YOU HAVE TO BUILD THE FOUNDATION
3104 02:13:52,824 –> 02:13:57,195 FIRST AND THAT FOUNDATION IS
3105 02:13:55,059 –> 02:13:58,329 AROUND BUILDING THE HIGH
3106 02:13:57,262 –> 02:13:58,763 VOLTAGE, THE TRANSMISSION
3107 02:13:58,396 –> 02:14:00,531 SYSTEM.
3108 02:13:58,830 –> 02:14:01,933 WARREN TOUCHED ON IT IN HIS
3109 02:14:00,598 –> 02:14:02,166 ANNUAL REPORT THIS YEAR AND
3110 02:14:01,999 –> 02:14:04,569 LETTER.
3111 02:14:02,233 –> 02:14:06,404 HE HIGHLIGHTED THAT AT BERKSHIRE
3112 02:14:04,636 –> 02:14:10,442 HATHAWAY ENERGY WILL BE SPENDING
3113 02:14:06,471 –> 02:14:10,975 JUST IN THE WEST $18 BILLION ON
3114 02:14:10,509 –> 02:14:12,744 TRANSMISSION.
3115 02:14:11,042 –> 02:14:17,115 5 BILLION OF THAT’S ALREADY BEEN
3116 02:14:12,811 –> 02:14:19,450 SPENT AS WE SIT HERE TODAY AND
3117 02:14:17,182 –> 02:14:24,155 THAT 13 BILLION WILL BE SPEND
3118 02:14:19,517 –> 02:14:30,294 OVER THE NEXT TEN YEARS.
3119 02:14:24,222 –> 02:14:32,463 THAT’S A FOUNDATION THAT WORKS
3120 02:14:30,361 –> 02:14:34,666 AT BERKSHIRE HATHAWAY ENERGY AND
3121 02:14:32,530 –> 02:14:36,601 WELL BEYOND THAT.
3122 02:14:34,733 –> 02:14:38,069 I WOULD HIGHLIGHT WE’VE BEEN
3123 02:14:36,668 –> 02:14:39,237 BUILDING THE TRANSMISSION
3124 02:14:38,136 –> 02:14:42,307 INFRASTRUCTURE IN PLACE, WE HAVE
3125 02:14:39,304 –> 02:14:44,742 BEEN BUILDING RENEWABLES.
3126 02:14:42,374 –> 02:14:48,713 IF YOU LOOK AT OUR INVESTMENT
3127 02:14:44,809 –> 02:14:50,681 THROUGH THE END MUCH 2020 WE’VE
3128 02:14:48,779 –> 02:14:52,884 INVESTED $30 BILLION OR IN
3129 02:14:50,748 –> 02:14:54,886 EXCESS OF $30 BILLION INTO
3130 02:14:52,951 –> 02:14:57,455 RENEWABLES AND HAVE REALLY
3131 02:14:54,953 –> 02:14:59,490 COMPLETELY CHANGED THE WAY OUR
3132 02:14:57,522 –> 02:15:01,059 BUSINESSES DO BUSINESS, I.E.,,
3133 02:14:59,557 –> 02:15:03,227 OUR UTILITY BASES.
3134 02:15:01,126 –> 02:15:05,397 THEY’VE BEEN DECARBONIZING AND
3135 02:15:03,294 –> 02:15:08,699 DELIVERING A VALUE PRODUCT TO
3136 02:15:05,463 –> 02:15:09,267 OUR STAKEHOLDERS, TO OUR
3137 02:15:08,766 –> 02:15:11,202 CUSTOMERS.
3138 02:15:09,334 –> 02:15:14,205 AND I THINK THE – AND I THINK
3139 02:15:11,269 –> 02:15:15,340 THE RESULTS ARE REALLY AMAZING
3140 02:15:14,272 –> 02:15:16,741 WHEN YOU LOOK AT THEM.
3141 02:15:15,407 –> 02:15:17,375 I’LL GIVE YOU A COUPLE OF
3142 02:15:16,808 –> 02:15:20,044 REFERENCE POINTS.
3143 02:15:17,442 –> 02:15:26,884 IF YOU GO BACK TO 2015 WHEN THE
3144 02:15:20,111 –> 02:15:29,153 U.S. WAS DISCUSSING, EXCUSE ME,
3145 02:15:26,951 –> 02:15:30,588 JOINING THE PARIS AGREEMENT,
3146 02:15:29,220 –> 02:15:30,855 VERY SPECIFIC TARGETS WERE BEING
3147 02:15:30,655 –> 02:15:32,623 SET.
3148 02:15:30,922 –> 02:15:35,192 PRIOR TO THE TARGETS BEING SET
3149 02:15:32,690 –> 02:15:36,695 BERKSHIRE HATHAWAY AND 12 OTHER
3150 02:15:35,259 –> 02:15:41,199 COMPANIES INCLUDING THE APPLES
3151 02:15:36,761 –> 02:15:44,202 OF THE WORLD, GOOGLE, WALMART
3152 02:15:41,266 –> 02:15:45,503 COMMITTED TO TARIFFS AND TARGETS
3153 02:15:44,269 –> 02:15:50,976 NEEDED TO BE SET.
3154 02:15:45,570 –> 02:15:51,209 BERKSHIRE HATHAWAY WAS ONE OF
3155 02:15:51,042 –> 02:15:56,281 THOSE.
3156 02:15:51,276 –> 02:15:56,915
HOW MANY OTHER COMMIT WRMTS
3157 02:15:56,348 –> 02:15:57,782 THERE.
3158 02:15:56,982 –> 02:15:59,750
THERE WERE NONE.
3159 02:15:57,849 –> 02:16:00,652 I’M HAPPY TO REPORT WE MADE A
3160 02:15:59,817 –> 02:16:02,387 VARIETY OF PLEDGES.
3161 02:16:00,719 –> 02:16:04,889 ONE OF THEM WAS AT THAT POINT WE
3162 02:16:02,454 –> 02:16:06,457 HAD INVESTED $15 BILLION IN
3163 02:16:04,956 –> 02:16:08,159 RENEWABLES AND WE WOULD COMMIT
3164 02:16:06,524 –> 02:16:11,763 30 BILLION IN TOTAL.
3165 02:16:08,226 –> 02:16:12,997 WELL, WE’VE FAR EXCEEDED THAT
3166 02:16:11,829 –> 02:16:15,099 TOTAL NOW.
3167 02:16:13,064 –> 02:16:25,443 THERE’S BEEN A CLEAR COMMITMENT
3168 02:16:15,166 –> 02:16:26,077 TO REDUCE DECASH BOW NEEDING THE
3169 02:16:25,510 –> 02:16:26,644 BUSINESS.
3170 02:16:26,144 –> 02:16:27,045 THERE ARE IDENTIFIABLE AND
3171 02:16:26,711 –> 02:16:28,946 THAT’S IMPORTANT.
3172 02:16:27,111 –> 02:16:30,682 IF YOU LOOK AT THE STANDARDS
3173 02:16:29,013 –> 02:16:32,350 THAT ARE SET WITH THE ORIGINAL
3174 02:16:30,749 –> 02:16:33,718 U.S. GOVERNMENT’S COMMITMENTS
3175 02:16:32,417 –> 02:16:36,621 ASSOCIATED WITH THE PARIS
3176 02:16:33,785 –> 02:16:43,895 AGREEMENT, THE TARGET WAS 26 TO
3177 02:16:36,688 –> 02:16:50,234 28% REDUCTIONS IN CARBON FOOT
3178 02:16:43,962 –> 02:16:53,371 PRINDS GOING BACK TO OO O 5 –
3179 02:16:50,301 –> 02:16:56,507
NO, WE COMMITTED TO THAT AT
3180 02:16:53,438 –> 02:16:57,942 BHE AND I’M HAPPY TO REPORT AND
3181 02:16:56,574 –> 02:16:59,177 WE BRIEFED OUR BOARD, WE
3182 02:16:58,009 –> 02:17:01,946 ACHIEVED THAT IN 2020.
3183 02:16:59,244 –> 02:17:04,815 SO WE MET OUR PLEDGE AND WE MET
3184 02:17:02,013 –> 02:17:06,685 THE COMMITMENT UNDER THE PARIS
3185 02:17:04,882 –> 02:17:08,219 AGREEMENT AND THEN IF YOU FAST
3186 02:17:06,751 –> 02:17:11,022 FORWARD TO THE DISCUSSIONS THAT
3187 02:17:08,286 –> 02:17:13,758 ARE OCCURRING RIGHT NOW OR HAVE
3188 02:17:11,089 –> 02:17:16,060 OCCURRED AROUND REJOINING THE
3189 02:17:13,825 –> 02:17:18,062 PARIS AGREEMENT, THE CURRENT
3190 02:17:16,127 –> 02:17:21,098 ADMINISTRATION HAS PROPOSED
3191 02:17:18,129 –> 02:17:23,635 THAT, AGAIN, USING 2005 AS THE
3192 02:17:21,165 –> 02:17:28,739 STARTING POINT, THAT THE
3193 02:17:23,702 –> 02:17:32,277 EMISSION GOALS OR REDUCTIONS
3194 02:17:28,806 –> 02:17:34,478 SHOULD BE 2/3.
3195 02:17:32,344 –> 02:17:35,747 I’M HAPPY TO BRIEF TO OUR
3196 02:17:34,545 –> 02:17:37,848 SHAREHOLDERS AND BRIEFINGS WE’VE
3197 02:17:35,814 –> 02:17:40,751 PROVIDED TO OUR BOARD, BUT
3198 02:17:37,915 –> 02:17:43,988 BERKSHIRE HATHAWAY ENERGY WILL
3199 02:17:40,818 –> 02:17:46,891 ACHIEVE THAT BY 2030.
3200 02:17:44,055 –> 02:17:54,365 AGAIN, THE REASON WE CAN DO IT
3201 02:17:46,958 –> 02:17:55,533 IS WE’VE BUILD THE FOUNDATION.
3202 02:17:54,432 –> 02:17:57,101 WARREN’S HIGHLIGHTED IT AND
3203 02:17:55,600 –> 02:17:58,870 FOLLOWED IT UP WITH SPECIFIC
3204 02:17:57,168 –> 02:17:59,103 INVESTMENTS ON THE RENEWABLE
3205 02:17:58,937 –> 02:18:02,507 SIDE.
3206 02:17:59,170 –> 02:18:04,008 I HAVE ONE INCREMENTAL SLIDE
3207 02:18:02,573 –> 02:18:07,512 THAT I DON’T – THINK SORT OF
3208 02:18:04,075 –> 02:18:14,619 HOLDS IT ALTOGETHER AND THAT’S
3209 02:18:07,579 –> 02:18:15,853 VHAE 2 BECAUSE AS PEOPLE DISCUSS
3210 02:18:14,686 –> 02:18:17,522 COAL UNITS.
3211 02:18:15,920 –> 02:18:18,723 HOW MANY HAVE YOU OWNED, HOW
3212 02:18:17,588 –> 02:18:20,491 MANY HAVE YOU CLOSED?
3213 02:18:18,789 –> 02:18:22,794
THERE’S NO QUESTION THAT CAN
3214 02:18:20,558 –> 02:18:25,630 BE AN IMPORTANT METRIC BUT IT IS
3215 02:18:22,861 –> 02:18:27,098 A TRANSITION AND WE HAVE VERY
3216 02:18:25,697 –> 02:18:30,167 MUCH FOCUSED ACROSS THE THREE
3217 02:18:27,165 –> 02:18:31,369 UTILITIES WE OWN AND THE ONES
3218 02:18:30,234 –> 02:18:33,504 WE’VE HIGHLIGHTED ON THE SLIDE
3219 02:18:31,436 –> 02:18:35,639 IS TO TRANSITION FROM OUR
3220 02:18:33,571 –> 02:18:39,744 EXISTING FLEET TO RENEWABLES
3221 02:18:35,706 –> 02:18:43,080 USING TRANSMISSION.
3222 02:18:39,811 –> 02:18:44,649 WE HAVE NOT BECOME OVERLY
3223 02:18:43,147 –> 02:18:44,882 RESISTANT ON TRANSITIONING TO
3224 02:18:44,716 –> 02:18:49,854 GAS.
3225 02:18:44,949 –> 02:18:51,022 OVER A PERIOD OF TIME OUR COAL
3226 02:18:49,921 –> 02:18:52,790 REQUIREMENTS WILL DECLINE.
3227 02:18:51,089 –> 02:18:54,926 I’M PLEASED TO REPORT THROUGH
3228 02:18:52,857 –> 02:18:55,193 2020 WE’VE CLOSED 16 UNITS TO
3229 02:18:54,993 –> 02:18:59,130 DATE.
3230 02:18:55,260 –> 02:19:01,465 IF YOU LOOK AT FROM 2021 THROUGH
3231 02:18:59,197 –> 02:19:03,467 2030 THERE WILL BE AN
3232 02:19:01,532 –> 02:19:05,636 INCREMENTAL 16 UNITS CLOSED AND
3233 02:19:03,534 –> 02:19:09,440 THEN IF YOU GO THROUGH TO THE
3234 02:19:05,703 –> 02:19:12,343 END OF 2049 OUR REMAINING 14
3235 02:19:09,507 –> 02:19:19,517 UNITS WILL BE CLOSED AND AT THAT
3236 02:19:12,410 –> 02:19:19,884 POINT IN TIME ALL OUR UNITS
3237 02:19:19,584 –> 02:19:22,253 CLOSE.
3238 02:19:19,951 –> 02:19:23,454 THAT’S AN AGGREGATION OF ALL OF
3239 02:19:22,319 –> 02:19:25,556 THE ACTIVITIES OUR BUSINESS
3240 02:19:23,521 –> 02:19:27,024 UNITS HAVE BEEN TAKING TO HELP
3241 02:19:25,623 –> 02:19:31,128 FACILITATE THAT TRANSITION AND
3242 02:19:27,091 –> 02:19:33,164 REALLY TRANSITIONING TO A –
3243 02:19:31,195 –> 02:19:35,099 DECASH BOW NIEZING THOSE UNITS
3244 02:19:33,231 –> 02:19:37,068 AND DECASH BOW NIEZING OUR
3245 02:19:35,166 –> 02:19:38,903 BUSINESSES ON BEHALF OF FIRST
3246 02:19:37,134 –> 02:19:40,505 AND FOREMOST OUR CUSTOMERS, THE
3247 02:19:38,970 –> 02:19:44,342 MANY STAKEHOLDERS THEY REPRESENT
3248 02:19:40,572 –> 02:19:45,676 IN THE VARIOUS STATES AND THEN
3249 02:19:44,409 –> 02:19:47,144 EQUALLY IMPORTANT DECAR BOW
3250 02:19:45,743 –> 02:19:49,847 NIEZING THOSE BUSINESSES ON
3251 02:19:47,211 –> 02:19:50,815 BEHALF OF OUR BERKSHIRE HATHAWAY
3252 02:19:49,914 –> 02:19:52,583 SHAREHOLDERS.
3253 02:19:50,882 –> 02:19:54,919 THE ONLY OTHER THING I WOULD
3254 02:19:52,650 –> 02:20:00,057 ADD, BECAUSE IT IS THE ENTITY
3255 02:19:54,986 –> 02:20:05,463 THAT HAS A SECOND LARGEST
3256 02:20:00,124 –> 02:20:06,330 FOOTPRINT IN BERKSHIRE AND WHEN
3257 02:20:05,530 –> 02:20:08,032 YOU COMBINE THEM, YOU’RE TALKING
3258 02:20:06,397 –> 02:20:11,335 THE MATERIAL SET OF EMISSIONS
3259 02:20:08,099 –> 02:20:13,204 WITHIN BERKSHIRE, BNSF HAS ALSO
3260 02:20:11,402 –> 02:20:17,909 BEEN VERY ACTIVE IN MANAGING
3261 02:20:13,271 –> 02:20:20,111 THEIR CARBON PROFILE.
3262 02:20:17,976 –> 02:20:20,778 THEY’VE COMMITTED TO HAVE
3263 02:20:20,178 –> 02:20:22,780 SCIENCE-BASED TARGETS
3264 02:20:20,845 –> 02:20:24,548 ESTABLISHED FOR 2030 SO, AGAIN,
3265 02:20:22,847 –> 02:20:28,619 THOSE TARGETS WILL AGAIN BE
3266 02:20:24,615 –> 02:20:29,053 CONSISTENT WITH THE PARIS
3267 02:20:28,686 –> 02:20:30,387 AGREEMENT.
3268 02:20:29,120 –> 02:20:33,291 WE’VE SEEN WHAT THE OTHER
3269 02:20:30,454 –> 02:20:35,059 PARTICIPANTS OR SOME OF THEM IN
3270 02:20:33,357 –> 02:20:37,695 THE CLASS – IN THE INDUSTRY
3271 02:20:35,126 –> 02:20:39,730 THAT HAVE COMMITTED TO AND OUR
3272 02:20:37,762 –> 02:20:47,538 COMMITMENT WILL BE VERY SIMILAR,
3273 02:20:39,797 –> 02:20:52,243 I.E.,, IT WILL BE CONSISTENT.
3274 02:20:47,605 –> 02:20:54,579 SO, AGAIN, IF YOU LOOK AT OUR –
3275 02:20:52,310 –> 02:20:54,946 AND THAT’S BEEN PUBLICLY
3276 02:20:54,646 –> 02:20:58,683 DISCLOSED.
3277 02:20:55,013 –> 02:21:00,284 THAT’S ON THE BSNF WEBSITE.
3278 02:20:58,750 –> 02:21:03,487 EVERYTHING I’VE DISCUSSED IS ON
3279 02:21:00,351 –> 02:21:05,422 THEIR WEBSITE, FILED IN 8Ks,
3280 02:21:03,554 –> 02:21:06,524 COMPLETELY ACCESSIBLE BY OUR
3281 02:21:05,489 –> 02:21:08,359 MANY SHAREHOLDERS.
3282 02:21:06,591 –> 02:21:10,761 WHEN I LOOK AT IT FROM THE
3283 02:21:08,426 –> 02:21:12,130 PERSPECTIVE OF OUR BERKSHIRE
3284 02:21:10,828 –> 02:21:15,033 SHAREHOLDERS, I REALLY BELIEVE
3285 02:21:12,196 –> 02:21:16,801 THIS RISK IS BEING WELL MANAGED
3286 02:21:15,099 –> 02:21:21,272 AND IN POSITIONING OURSELVES FOR
3287 02:21:16,867 –> 02:21:23,073 THE LONG TERM.
3288 02:21:21,339 –> 02:21:25,009
INCIDENTALLY, THE PRESIDENT
3289 02:21:23,140 –> 02:21:27,178 THE OTHER NIGHT TALKED ABOUT 100
3290 02:21:25,076 –> 02:21:29,847 BILLION FOR INFRASTRUCTURE.
3291 02:21:27,245 –> 02:21:30,348 WE’D LOVE TO SPEND 100 BILLION
3292 02:21:29,914 –> 02:21:34,952 ON IT.
3293 02:21:30,415 –> 02:21:38,089 HE WAS TALKING ABOUT, YOU KNOW,
3294 02:21:35,019 –> 02:21:38,322 TRANSMISSION IS REALLY THE
3295 02:21:38,156 –> 02:21:40,758 PROBLEM.
3296 02:21:38,389 –> 02:21:42,126 A BIG PROBLEM.
3297 02:21:40,825 –> 02:21:46,263 YOU’VE GOT TO GET MORE OF THE
3298 02:21:42,193 –> 02:21:48,465 SUN IS SHINING AND WHERE THE
3299 02:21:46,330 –> 02:21:52,236 WIND IS BLOWING ESSENTIALLY TO
3300 02:21:48,532 –> 02:21:56,340 CONCENTRATIONS OF POPULATION.
3301 02:21:52,303 –> 02:21:59,410 AND IT’LL BE – YOU CROSS STATE
3302 02:21:56,407 –> 02:22:00,111 LINES AND YOU GO THROUGH
3303 02:21:59,477 –> 02:22:01,812 PEOPLE’S BACKYARDS.
3304 02:22:00,178 –> 02:22:03,181 IT’S – IT’S – WHETHER THE
3305 02:22:01,879 –> 02:22:04,448 FEDERAL GOVERNMENT HAS A BETTER
3306 02:22:03,247 –> 02:22:06,317 LUCK IN JUST SAYING THIS IS THE
3307 02:22:04,515 –> 02:22:08,118 WAY IT’S GOING TO BE DONE,
3308 02:22:06,383 –> 02:22:09,754 RAMMING IT DOWN THE THROATS OF
3309 02:22:08,185 –> 02:22:11,856 WHERE THEY GO AND GETTING IT
3310 02:22:09,821 –> 02:22:18,262 DONE, I MEAN, THEY MAY HAVE THAT
3311 02:22:11,923 –> 02:22:22,199 POWER AND THEY’LL BE ABLE TO DO
3312 02:22:18,329 –> 02:22:24,969 IT FASTER THAN WE CAN.
3313 02:22:22,266 –> 02:22:27,137 THE SPEED, WE BOUGHT CARBON IN
3314 02:22:25,036 –> 02:22:30,341 2006, WE HAD A BUNCH OF
3315 02:22:27,204 –> 02:22:31,976 CUSTOMERS IN THE WEST AND THEY
3316 02:22:30,408 –> 02:22:33,577 HAD PEOPLE SERVING THEM.
3317 02:22:32,043 –> 02:22:35,813 TO CHANGE THAT YOU HAVE TO GO
3318 02:22:33,644 –> 02:22:40,885 WHERE WIND BLOWS AND DELIVER IT.
3319 02:22:35,880 –> 02:22:43,020 SO IT’S – BUT IT IS INTERESTING
3320 02:22:40,952 –> 02:22:43,320 THAT WE HAVE PUBLISHED THIS
3321 02:22:43,087 –> 02:22:45,289 INFORMATION.
3322 02:22:43,387 –> 02:22:47,658 WE SPENT FAR MORE THAN ANY
3323 02:22:45,356 –> 02:22:49,026 UTILITY IN TERMS OF RENEWABLES
3324 02:22:47,725 –> 02:22:49,293 AND TRANSMISSION IN THE UNITED
3325 02:22:49,093 –> 02:22:55,232 STATES.
3326 02:22:49,360 –> 02:22:56,901 WE SHARED IT WITH ENOUGH BUT
3327 02:22:55,299 –> 02:22:58,869 OUR – THE PEOPLE WHO BOUGHT THE
3328 02:22:56,968 –> 02:22:59,704 STOCK WITH THEIR OWN MONEY, THE
3329 02:22:58,936 –> 02:23:01,906 INDIVIDUALS, THEY SEEM TO
3330 02:22:59,771 –> 02:23:02,473 UNDERSTAND IT AND THEY READ THE
3331 02:23:01,973 –> 02:23:04,041 REPORTS.
3332 02:23:02,540 –> 02:23:05,576 WE GET CALLS AND THEY SAY, WELL,
3333 02:23:04,108 –> 02:23:06,444 WE WANT TO COME OUT AND TALK TO
3334 02:23:05,642 –> 02:23:08,812 YOU ABOUT IT.
3335 02:23:06,511 –> 02:23:09,647 WE’RE NOT TALKING TO THEM AND
3336 02:23:08,879 –> 02:23:11,249 IGNORING THE MILLION PEOPLE THAT
3337 02:23:09,714 –> 02:23:13,050 HAVE BEEN WITH US OVER TIME AND
3338 02:23:11,315 –> 02:23:17,121 BOUGHT IT WITH THEIR OWN MONEY.
3339 02:23:13,117 –> 02:23:21,459 WE WILL NOT GIVE SPECIAL
3340 02:23:17,188 –> 02:23:27,598 TREATMENT TO EITHER THE ANALYSTS
3341 02:23:21,525 –> 02:23:29,500 OR TO THE INSTITUTIONS, WHO
3342 02:23:27,665 –> 02:23:31,936 TRUST US WITH THEIR SAVINGS.
3343 02:23:29,566 –> 02:23:32,803
THIS QUESTION IS FOR WARREN
3344 02:23:32,003 –> 02:23:35,206 ENERGY.
3345 02:23:32,870 –> 02:23:37,775 IT COMES FROM FERNANDO LEWIS.
3346 02:23:35,273 –> 02:23:40,377 AS A SHAREHOLDER THAT INTENDS TO
3347 02:23:37,842 –> 02:23:41,312 REMAIN SO FOR MANY DECADES, MY
3348 02:23:40,444 –> 02:23:42,746 BIGGEST CONCERN IS AROUND
3349 02:23:41,378 –> 02:23:44,649 POSSIBLE LOSSES ARISING FROM
3350 02:23:42,813 –> 02:23:45,182 HIGHER THAN EXPECTED INSURANCE
3351 02:23:44,716 –> 02:23:46,950 LOSSES.
3352 02:23:45,249 –> 02:23:50,554 WE’VE SEEN THIS IN OTHER
3353 02:23:47,017 –> 02:23:51,188 COMPANIES WHERE UNDERWRITING
3354 02:23:50,621 –> 02:23:51,522 MISTAKES CRIPPLE BUSINESSES THAT
3355 02:23:51,255 –> 02:23:54,758 ARE EXEMPLAR.
3356 02:23:51,589 –> 02:23:56,627 I UNDERSTAND BERKSHIRE’S CULTURE
3357 02:23:54,825 –> 02:23:57,595 IS UNIQUE, THIS IS A RISK THAT
3358 02:23:56,694 –> 02:24:00,631 CONCERNS ME.
3359 02:23:57,662 –> 02:24:03,600 MANY OF US SHAREHOLDERS FEEL
3360 02:24:00,698 –> 02:24:04,268 COMFORTABLE NOW GIVEN THE
3361 02:24:03,667 –> 02:24:05,302 PRIVILEGE OF HAVING YOU LOOK AT
3362 02:24:04,334 –> 02:24:07,304 THESE DEALS, HOWEVER, THERE WILL
3363 02:24:05,369 –> 02:24:08,205 BE A DAY WHEN THIS IS NO LONGER
3364 02:24:07,371 –> 02:24:11,108 THE CASE.
3365 02:24:08,272 –> 02:24:12,342 IS IT REASONABLE TO THINK OVER
3366 02:24:11,175 –> 02:24:17,181 THE LONG TERM THEY SHOULD LOOK
3367 02:24:12,409 –> 02:24:20,551 AT GEICO AND REDUCE THE
3368 02:24:17,248 –> 02:24:22,520 LONG-TAIL RISK?
3369 02:24:20,618 –> 02:24:24,488 I HAVE THE BEST GRATITUDE.
3370 02:24:22,587 –> 02:24:27,258 I’M CONFIDENT WE HAVE THE TALENT
3371 02:24:24,555 –> 02:24:27,458 TO REMAIN LEADERS FOR DECADES TO
3372 02:24:27,325 –> 02:24:30,527 COME.
3373 02:24:27,525 –> 02:24:31,395 THIS IS BEARSED ON THE INHERENT
3374 02:24:30,594 –> 02:24:33,597 OPAQUENESS AND RISK.
3375 02:24:31,462 –> 02:24:33,964
AJIT, DO YOU WANT TO LEAD
3376 02:24:33,664 –> 02:24:36,500 OFF?
3377 02:24:34,031 –> 02:24:39,337
I MEAN, CLEARLY CONTRACT
3378 02:24:36,567 –> 02:24:41,138 CERTAINTY IS AN ISSUE FOR US IN
3379 02:24:39,403 –> 02:24:44,908 THE INSURANCE INDUSTRY.
3380 02:24:41,205 –> 02:24:47,277 IT IS AN ISSUE THAT CUTS ACROSS
3381 02:24:44,975 –> 02:24:49,647 THE LONG TAIL LINE BUT EVEN
3382 02:24:47,344 –> 02:24:53,117 SHORT TAIL PROPERTY FOCUS LINES.
3383 02:24:49,714 –> 02:24:54,351 MOST RECENT EXAMPLE IS BUSINESS
3384 02:24:53,183 –> 02:24:56,887 INTERRUPTION WHICH IS AN
3385 02:24:54,418 –> 02:25:01,225 INTEGRAL PART OF ANY INSURANCE
3386 02:24:56,954 –> 02:25:01,525 POLICY BOUGHT AND SOLD BY
3387 02:25:01,292 –> 02:25:05,796 CRPORATIONS.
3388 02:25:01,592 –> 02:25:07,631 IT IS A RISK EVERY TIME WE ISSUE
3389 02:25:05,863 –> 02:25:09,500 A CONTRACT THAT EITHER BECAUSE
3390 02:25:07,698 –> 02:25:11,769 OF SLOPPINESS IN HOW THAT
3391 02:25:09,567 –> 02:25:12,703 CONTRACT IS WRITTEN OR BECAUSE
3392 02:25:11,836 –> 02:25:16,440 OF THE REGULATORY ENVIRONMENT WE
3393 02:25:12,770 –> 02:25:17,875 ALL HAVE TO LIVE IN THAT THE
3394 02:25:16,506 –> 02:25:18,142 WORDS IN THE CONTRACT MAY BE
3395 02:25:17,942 –> 02:25:19,877 TORTURED.
3396 02:25:18,209 –> 02:25:21,545 NORMALLY WHEN THEY ARE TORTURED,
3397 02:25:19,944 –> 02:25:24,415 THEY END UP GOING AGAINST THE
3398 02:25:21,612 –> 02:25:24,715 INSURANCE INDUSTRY, NOT IN THEIR
3399 02:25:24,482 –> 02:25:26,617 FAVOR.
3400 02:25:24,782 –> 02:25:28,552 SO IT IS A RISK.
3401 02:25:26,684 –> 02:25:30,755 IT’S AN UNKNOWN RISK IN TERMS OF
3402 02:25:28,619 –> 02:25:32,857 HOW BAD IT CAN BE.
3403 02:25:30,822 –> 02:25:34,792 I HOPE WE PRICE FOR IT WHEN WE
3404 02:25:32,923 –> 02:25:36,293 PRICE FOR THE PRODUCT, THROW IN
3405 02:25:34,859 –> 02:25:37,394 SOMETHING FOR THE UNKNOWN
3406 02:25:36,360 –> 02:25:42,600 UNKNOWNS, IF YOU WILL.
3407 02:25:37,461 –> 02:25:44,935 WE TRY AND AGGREGATE EXPOSURES
3408 02:25:42,666 –> 02:25:46,504 BY RISK CATEGORIES.
3409 02:25:45,002 –> 02:25:49,173 HOPEFULLY THAT WILL GIVE US SOME
3410 02:25:46,571 –> 02:25:50,507 COMFORT IN TERMS OF SOME
3411 02:25:49,239 –> 02:25:51,275 BOUNDARIES ON WHAT THE EXPOSURE
3412 02:25:50,574 –> 02:25:53,443 REALLY CAN BE.
3413 02:25:51,342 –> 02:25:54,278 THERE’S NO QUESTION THE
3414 02:25:53,510 –> 02:25:56,146 REGULATORS PLAY AN IMPORTANT
3415 02:25:54,345 –> 02:25:57,515 ROLE IN TERMS OF THE ECONOMICS
3416 02:25:56,213 –> 02:26:00,518 OF THE BUSINESS, ESPECIALLY IN
3417 02:25:57,581 –> 02:26:01,752 THE U.S. WHERE THE 50 STATE
3418 02:26:00,585 –> 02:26:04,822 REGULATORS WHO WE HAVE TO DEAL
3419 02:26:01,819 –> 02:26:05,723 WITH IN TERMS OF PRICING, IN
3420 02:26:04,889 –> 02:26:09,026 TERMS OF CONTRACTS.
3421 02:26:05,790 –> 02:26:12,096
MOST OF THOSE SURPRISES IN
3422 02:26:09,093 –> 02:26:12,730 INSURANCE, MOST OF THEM ARE
3423 02:26:12,163 –> 02:26:13,030 UNPL
3424 02:26:12,797 –> 02:26:16,800 UNPLEASANT.
3425 02:26:13,097 –> 02:26:17,535 YOU GET THE PREMIUM UNFRONT,
3426 02:26:16,867 –> 02:26:20,604 THAT’S PLEASANT.
3427 02:26:17,602 –> 02:26:20,837 YOU GET SOME VERY IMAGINATIVE
3428 02:26:20,671 –> 02:26:26,611 LOSSES.
3429 02:26:20,904 –> 02:26:27,912 WE ARE WILLING TO LOSE IN TERMS
3430 02:26:26,677 –> 02:26:29,313 OF THE OUTSIDE LIMIT.
3431 02:26:27,979 –> 02:26:32,616 WE’RE WILLING TO LOSE $10
3432 02:26:29,380 –> 02:26:34,484 BILLION IN A SINGLE EVENT.
3433 02:26:32,683 –> 02:26:35,719 WE WANT TO GET PAID VERY
3434 02:26:34,551 –> 02:26:40,191 APPROPRIATELY FOR THAT, BUT
3435 02:26:35,786 –> 02:26:40,991 WE’VE GOT THE RESOURCE TOSS DO
3436 02:26:40,258 –> 02:26:45,462 IT.
3437 02:26:41,058 –> 02:26:46,062 BUT WE DON’T WANT TO LOSE 10
3438 02:26:45,529 –> 02:26:47,198 BECO
3439 02:26:46,129 –> 02:26:48,499 BILLION IN SOMETHING WHERE WE
3440 02:26:47,265 –> 02:26:52,736 THOUGHT WE WOULD LOSE 50 MILLION
3441 02:26:48,566 –> 02:26:54,071 OR SOMETHING LIKE THAT.
3442 02:26:52,803 –> 02:26:55,673 THE CURRENT SITUATION, FOR
3443 02:26:54,138 –> 02:26:57,341 EXAMPLE, WITH THE BOY SCOUTS OF
3444 02:26:55,740 –> 02:26:58,508 AMERICA, I THINK THERE WERE 1100
3445 02:26:57,408 –> 02:27:00,277 CLAIMS OR SOMETHING LIKE THAT
3446 02:26:58,575 –> 02:27:00,911 THAT HAD BEEN FILED AND NOW
3447 02:27:00,344 –> 02:27:04,315 THERE’S 17,000 –
3448 02:27:00,978 –> 02:27:07,017
NO, NO, CLOSE TO 100,000.
3449 02:27:04,382 –> 02:27:10,254 UP BY 50 TIMES.
3450 02:27:07,084 –> 02:27:10,454
THESE GO BACK TO 1950 AND
3451 02:27:10,321 –> 02:27:12,656 1960.
3452 02:27:10,521 –> 02:27:13,591 YOU HAVE PEOPLE ADVERTISING FOR
3453 02:27:12,723 –> 02:27:19,797 CLAIMS.
3454 02:27:13,658 –> 02:27:20,531 I’M SURE A LOT OF THEM ARE VALID
3455 02:27:19,864 –> 02:27:22,666 OR INVALID?
3456 02:27:20,598 –> 02:27:23,567
IT GOES BACK TO THE ISSUE
3457 02:27:22,733 –> 02:27:25,202 THAT YOU JUST RAISED.
3458 02:27:23,634 –> 02:27:28,539 THE REASON WHY THE NUMBER OF
3459 02:27:25,269 –> 02:27:30,674 CLAIMS HAS SKYROCKETED FROM LESS
3460 02:27:28,606 –> 02:27:33,143 THAN 200,000 IS BECAUSE THE
3461 02:27:30,741 –> 02:27:34,578 STATUTE OF LIMITATIONS HAD
3462 02:27:33,210 –> 02:27:36,680 EXPIRED, BUT IN SEVERAL STATES
3463 02:27:34,645 –> 02:27:38,448 IF NOT IN MORE STATES THEY HAVE
3464 02:27:36,747 –> 02:27:39,884 UNILATERALLY EXTENDED THE
3465 02:27:38,515 –> 02:27:41,652 DEADLINE BY WHEN YOU CAN MAKE
3466 02:27:39,951 –> 02:27:43,621 CLAIMS AND EXPANDED IT BY A FEW
3467 02:27:41,719 –> 02:27:49,093 YEARS AS A RESULT OF WHICH A LOT
3468 02:27:43,687 –> 02:27:49,994 OF MORE CLAIMS APPEARED.
3469 02:27:49,160 –> 02:27:51,862 FUNDED BY PLAINTIFF LAWYERS THAT
3470 02:27:50,061 –> 02:27:52,529 ARE VERY WELL FUNDED.
3471 02:27:51,929 –> 02:27:56,367 THAT RESULTS IN CLAIMS JUST
3472 02:27:52,596 –> 02:27:57,134 SKYROCKETING.
3473 02:27:56,434 –> 02:28:00,838
YEAH.
3474 02:27:57,201 –> 02:28:02,773 A LOT OF UNPLEASANT SURPRISES IN
3475 02:28:00,905 –> 02:28:04,775 INSURANCE.
3476 02:28:02,840 –> 02:28:05,542 WE’VE GOT A VERY – I’M VERY
3477 02:28:04,842 –> 02:28:07,511 BIASED ON THIS.
3478 02:28:05,609 –> 02:28:10,014 I THINK WE’VE GOT THE BEST
3479 02:28:07,578 –> 02:28:11,949 INSURANCE OPERATION IN THE WORLD
3480 02:28:10,081 –> 02:28:12,116 AND AJIT IS THE GUY THAT CREATED
3481 02:28:12,016 –> 02:28:16,187 IT.
3482 02:28:12,182 –> 02:28:19,823 THE PEOPLE AT GEICO, WE BOUGHT
3483 02:28:16,253 –> 02:28:21,558 THAT AND DID WONDERFULLY OVER
3484 02:28:19,890 –> 02:28:23,227 TIME TO CONTRIBUTE TO IT.
3485 02:28:21,625 –> 02:28:27,197 OTHER PEOPLE HAVE.
3486 02:28:23,294 –> 02:28:30,667 AJIT IS A SYMPHONY CONDUCTOR.
3487 02:28:27,264 –> 02:28:31,535
THIS QUESTION COMES FROM
3488 02:28:30,734 –> 02:28:33,504 HENRY ZOO.
3489 02:28:31,602 –> 02:28:34,939 IT LOOKS LIKE CHARLIE AND WARREN
3490 02:28:33,571 –> 02:28:36,407 HAVE SOME DIFFERENT OPINIONS
3491 02:28:35,006 –> 02:28:36,640 RECENTLY LIKE COSTCO, WELLS
3492 02:28:36,473 –> 02:28:40,177 FARGO.
3493 02:28:36,707 –> 02:28:41,879 WHERE IS THAT TAKING BERKSHIRE?
3494 02:28:40,244 –> 02:28:46,550
CHARLIE?
3495 02:28:41,946 –> 02:28:52,723
WE’RE NOT ALL THAT DIFFERENT.
3496 02:28:46,617 –> 02:28:55,192 AND COSTCO IS A COMPANY I VERY
3497 02:28:52,790 –> 02:28:58,128 MUCH ADMIRE AND I HAVE ENJOYED
3498 02:28:55,259 –> 02:29:01,265 MY LONG ASSOCIATION WITH IT,
3499 02:28:58,195 –> 02:29:06,070 WITH THAT COMPANY.
3500 02:29:01,332 –> 02:29:17,481 AND BERKSHIRE, TOO.
3501 02:29:06,137 –> 02:29:17,915 SO – AND LUCKILY THERE’S NO
3502 02:29:17,548 –> 02:29:20,484 CONFLICT.
3503 02:29:17,982 –> 02:29:21,251
WE HAVE NEVER HAD AN
3504 02:29:20,551 –> 02:29:22,086 ARGUMENT.
3505 02:29:21,318 –> 02:29:23,687 62 YEARS.
3506 02:29:22,153 –> 02:29:27,992 IT’S NOT THAT WE AGREE ON
3507 02:29:23,754 –> 02:29:29,893 EVERYTHING, BUT WE LITERALLY IN
3508 02:29:28,059 –> 02:29:30,694 62 YEARS – WE’VE NEVER GOTTEN
3509 02:29:29,960 –> 02:29:30,961 MAD AT EACH OTHER.
3510 02:29:30,760 –> 02:29:31,127
NO.
3511 02:29:31,027 –> 02:29:34,631 NO.
3512 02:29:31,194 –> 02:29:38,102
JUST DOESN’T HAPPEN.
3513 02:29:34,698 –> 02:29:38,369
THIS QUESTION’S FROM JASON
3514 02:29:38,169 –> 02:29:40,938 PLANNER.
3515 02:29:38,436 –> 02:29:41,972 HE SAID MR. JAIN AND MR. ABEL,
3516 02:29:41,004 –> 02:29:43,940 THIS QUESTION IS FOR YOU.
3517 02:29:42,039 –> 02:29:45,709 ONE OF THE SUCCESSFUL FEATURES
3518 02:29:44,007 –> 02:29:47,944 IS THE STRONG BOND BETWEEN MR.
3519 02:29:45,776 –> 02:29:49,847 BUFFETT AND MR. MUNGER WHO
3520 02:29:48,011 –> 02:29:50,781 MANAGE IT BETTER BECAUSE THEY
3521 02:29:49,913 –> 02:29:51,949 HAD EACH OTHER.
3522 02:29:50,848 –> 02:29:53,584 CAN YOU PLEASE TELL US ABOUT HOW
3523 02:29:52,016 –> 02:29:56,420 YOU INTERACT WITH EACH OTHER OR
3524 02:29:53,651 –> 02:29:59,790 SOME OF THE OTHER INCREDIBLY
3525 02:29:56,487 –> 02:30:01,024 COMPETENT BERKSHIRE MANAGERS YOU
3526 02:29:59,857 –> 02:30:03,594 SEEK FOR ADVICE.
3527 02:30:01,091 –> 02:30:05,496
WHO’S THAT DIRECTED AT?
3528 02:30:03,661 –> 02:30:05,929
AT GREG AND AJIT.
3529 02:30:05,563 –> 02:30:08,465
OKAY.
3530 02:30:05,996 –> 02:30:09,900
THERE’S NO QUESTION THE
3531 02:30:08,532 –> 02:30:11,435 RELATIONSHIP WARREN HAS WITH
3532 02:30:09,967 –> 02:30:13,470 CHARLIE IS UNIQUE.
3533 02:30:11,502 –> 02:30:15,372 IT’S NOT GOING TO BE DUPLICATED,
3534 02:30:13,537 –> 02:30:17,174 CERTAINLY NOT BY ME AND GREG.
3535 02:30:15,439 –> 02:30:19,209 I CAN’T THINK OF ANYBODY THAT
3536 02:30:17,241 –> 02:30:20,911 CAN DUPLICATE T. NEVERTHELESS,
3537 02:30:19,276 –> 02:30:22,345 BOTH GREG AND I, AT LEAST
3538 02:30:20,978 –> 02:30:24,882 CERTAINLY FROM MY PERSPECTIVE
3539 02:30:22,412 –> 02:30:25,449 AND I’M SURE GREG WILL SPEAK FOR
3540 02:30:24,949 –> 02:30:26,650 HIMSELF.
3541 02:30:25,516 –> 02:30:27,317 WE’VE KNOWN EACH OTHER FOR A
3542 02:30:26,717 –> 02:30:29,086 VERY LONG TIME.
3543 02:30:27,384 –> 02:30:31,088 I CERTAINLY HAVE A LOT OF
3544 02:30:29,153 –> 02:30:32,289 RESPECT, BOTH AT A PROFESSIONAL
3545 02:30:31,155 –> 02:30:34,558 LEVEL AND PERSONAL LEVEL IN
3546 02:30:32,356 –> 02:30:35,892 TERMS OF WHAT GREG’S ABILITIES
3547 02:30:34,625 –> 02:30:37,861 ARE, WE DO NOT INTERACT WITH
3548 02:30:35,959 –> 02:30:39,329 EACH OTHER AS OFTEN AS WARREN
3549 02:30:37,928 –> 02:30:42,399 AND CHARLIE DO, BUT EVERY
3550 02:30:39,396 –> 02:30:47,938 QUARTER WE WILL TALK TO EACH
3551 02:30:42,466 –> 02:30:48,672 OTHER ABOUT OUR RESPECTIVE
3552 02:30:48,005 –> 02:30:49,573 DECISIONS.
3553 02:30:48,739 –> 02:30:52,342 DURING THE COURSE OF THE QUARTER
3554 02:30:49,640 –> 02:30:58,281 WHILE WE MAY NOT HAVE ANY FORMAL
3555 02:30:52,409 –> 02:30:59,950 MEETINGS, IF YOU WILL, BUT EVERY
3556 02:30:58,348 –> 02:31:00,584 TIME THEY’LL PICK UP THE PHONE
3557 02:31:00,017 –> 02:31:02,653 AND CALL ME.
3558 02:31:00,651 –> 02:31:04,421 IF THERE’S ANY QUESTION RELATING
3559 02:31:02,720 –> 02:31:05,922 TO THE NON-INSURANCE OPERATION
3560 02:31:04,488 –> 02:31:07,357 THAT GREG IS IN CHARGE OF LIKE
3561 02:31:05,989 –> 02:31:09,159 WE HAD RECENTLY WHERE A CLIENT
3562 02:31:07,424 –> 02:31:10,360 OF MINE IS LOOKING FOR – TRYING
3563 02:31:09,226 –> 02:31:12,362 TO FIND A BUYER.
3564 02:31:10,427 –> 02:31:13,864 I PICKED UP THE PHONE AND TALKED
3565 02:31:12,429 –> 02:31:14,598 TO GREG ABOUT, YOU KNOW, HOW
3566 02:31:13,931 –> 02:31:16,700 BEST TO PROCEED.
3567 02:31:14,665 –> 02:31:17,534 SO THERE’S THAT THAT HAPPENS
3568 02:31:16,767 –> 02:31:17,801 DURING THE COURSE OF THE
3569 02:31:17,601 –> 02:31:23,440 QUARTER.
3570 02:31:17,868 –> 02:31:25,642 EVERY QUARTER WE EXCHANGE NOTES.
3571 02:31:23,507 –> 02:31:26,577 WE HAVE A PERFECTLY
3572 02:31:25,709 –> 02:31:27,944 WELL-FUNCTIONING RELATIONSHIP
3573 02:31:26,644 –> 02:31:29,713 BETWEEN THE TWO OF US, AND I
3574 02:31:28,011 –> 02:31:30,180 HOPE IT REMAINS THAT WAY.
3575 02:31:29,780 –> 02:31:31,048 GREG?
3576 02:31:30,247 –> 02:31:32,950
YES.
3577 02:31:31,115 –> 02:31:36,353 WELL, AJIT, WELL SAID.
3578 02:31:33,017 –> 02:31:38,956 AND AS HE TOUCHED ON, WARREN AND
3579 02:31:36,420 –> 02:31:39,690 CHARLIE HAVE AN EXCEPTIONAL
3580 02:31:39,023 –> 02:31:40,024 RELAT
3581 02:31:39,757 –> 02:31:41,124 RELATIONSHIP.
3582 02:31:40,090 –> 02:31:42,126 VERY PROUD OF THE RELATIONSHIP
3583 02:31:41,191 –> 02:31:44,227 I’VE HAD.
3584 02:31:42,193 –> 02:31:45,496 AS AJIT TOUCHED ON, IT’S
3585 02:31:44,294 –> 02:31:47,397 DEVELOPED OVER MANY YEARS.
3586 02:31:45,563 –> 02:31:50,834 WE’VE HAD THE OPPORTUNITY OR
3587 02:31:47,464 –> 02:31:56,607 I’VE SEEN THE OPPORTUNITY TO SEE
3588 02:31:50,901 –> 02:31:57,941 HOW AJIT’S ONE THE BUSINESS.
3589 02:31:56,674 –> 02:31:58,442 I’VE HAD THE ABILITY TO OBSERVE
3590 02:31:58,008 –> 02:32:01,044 THAT.
3591 02:31:58,509 –> 02:32:02,179 EQUALLY OVER THE YEARS THAT
3592 02:32:01,111 –> 02:32:04,582 RELATIONSHIP HAS JUST BUILT AND
3593 02:32:02,246 –> 02:32:07,918 BECOME GREATER AND GREATER AND
3594 02:32:04,648 –> 02:32:09,219 AS AJIT TOUCHED ON, I HAVE MORE
3595 02:32:07,985 –> 02:32:10,888 RESPECT FOR HIM BOTH PERSONALLY
3596 02:32:09,286 –> 02:32:12,322 AND PROFESSIONALLY.
3597 02:32:10,955 –> 02:32:13,990 EVEN THOUGH THE INTERACTION MAY
3598 02:32:12,389 –> 02:32:16,059 BE DIFFERENT THAN SAY HOW WARREN
3599 02:32:14,057 –> 02:32:19,830 AND CHARLIE DO IT, AS AJIT
3600 02:32:16,126 –> 02:32:20,664 TOUCHED ON, THERE IS A REGULAR
3601 02:32:19,897 –> 02:32:22,465 DIALOGUE BOTH AROUND
3602 02:32:20,731 –> 02:32:28,338 OPPORTUNITIES WITHIN OUR TWO
3603 02:32:22,532 –> 02:32:29,907 BUSINESSES AND UNITS, BOTH IF WE
3604 02:32:28,405 –> 02:32:31,408 SEE INDIVIDUAL SHOOTS THERE.
3605 02:32:29,974 –> 02:32:32,809 WE MAKE SURE WE’RE ALWAYS
3606 02:32:31,474 –> 02:32:34,144 FOLLOWING UP WITH EACH OTHER BUT
3607 02:32:32,876 –> 02:32:36,780 IT GOES BEYOND THAT.
3608 02:32:34,211 –> 02:32:38,215 AJIT HAS A GREAT UNDERSTANDING
3609 02:32:36,847 –> 02:32:39,750 OF THE BERKSHIRE CULTURE.
3610 02:32:38,282 –> 02:32:41,752 I STRONGLY BELIEVE I DO, TOO.
3611 02:32:39,817 –> 02:32:45,255 ANY TIME WE SEE ANYTHING UNUSUAL
3612 02:32:41,819 –> 02:32:46,256 IN ONE OF OUR BUSINESSES, IT’S
3613 02:32:45,322 –> 02:32:47,724 AJIT WHO I’M GOING TO CALL AND
3614 02:32:46,323 –> 02:32:51,995 SAY ARE YOU COMFORTABLE THAT
3615 02:32:47,791 –> 02:32:54,931 WE’RE TAKING THIS APPROACH?
3616 02:32:52,062 –> 02:32:55,933 IS IT CONSISTENT WITH HOW YOU
3617 02:32:54,998 –> 02:32:57,601 THINK ABOUT IT.
3618 02:32:55,999 –> 02:32:59,035 IT GOES BEYOND DISCUSSING THE
3619 02:32:57,668 –> 02:33:00,804 BUSINESSES BUT THAT MAINTAINING
3620 02:32:59,102 –> 02:33:02,806 THE EXCEPTIONAL CULTURE WE HAVE
3621 02:33:00,871 –> 02:33:03,006 AT BERKSHIRE AND BUILDING UPON
3622 02:33:02,873 –> 02:33:06,443 THAT.
3623 02:33:03,073 –> 02:33:08,511 VERY FORTUNATE TO HAVE AJIT AS A
3624 02:33:06,509 –> 02:33:11,782 COLLEAGUE AND IMMENSELY ENJOY
3625 02:33:08,578 –> 02:33:12,349 WORKING WITH HIM EVERY DAY.
3626 02:33:11,849 –> 02:33:15,285 THANK YOU.
3627 02:33:12,416 –> 02:33:15,552
THIS QUESTION COMES FROM GLEN
3628 02:33:15,352 –> 02:33:17,120 GREENBERG.
3629 02:33:15,619 –> 02:33:19,456 HE SAYS – IT’S ON THE
3630 02:33:17,187 –> 02:33:22,192 PROFITABILITY OF GEICO AND BNSF.
3631 02:33:19,523 –> 02:33:23,627 HE SAID WHY DO THEY OPERATE AT
3632 02:33:22,259 –> 02:33:24,895 MEANINGFULLY LOWER PROFIT
3633 02:33:23,693 –> 02:33:26,696 MARGINS THAN THEIR MAIN
3634 02:33:24,961 –> 02:33:27,598 COMPETITORS, PROGRESSIVE AND
3635 02:33:26,763 –> 02:33:30,267 UNION PACIFIC?
3636 02:33:27,665 –> 02:33:31,735 CAN WE EXPECT CURRENT MANAGEMENT
3637 02:33:30,334 –> 02:33:33,169 TO ACHIEVE PARITY?
3638 02:33:31,802 –> 02:33:34,571
GEICO AND –
3639 02:33:33,236 –> 02:33:36,373
BNSF.
3640 02:33:34,638 –> 02:33:40,510
OH, ACTUALLY IF YOU LOOK AT
3641 02:33:36,440 –> 02:33:45,982 THE FIRST QUARTER FIGURES YOU’LL
3642 02:33:40,577 –> 02:33:49,720 SEE THAT THE BERKSHIRE HATHAWAY
3643 02:33:46,049 –> 02:33:49,953 UNION PACIFIC PERSON HAS GOTTEN
3644 02:33:49,787 –> 02:33:52,055 BETTER.
3645 02:33:50,020 –> 02:33:55,959 K.T. FARMER IS DOING AN
3646 02:33:52,122 –> 02:33:57,094 INCREDIBLE JOB AT BNSF.
3647 02:33:56,026 –> 02:33:58,795 BE AN INTERESTING QUESTION
3648 02:33:57,160 –> 02:34:01,731 WHETHER FIVE YEARS FROM NOW OR
3649 02:33:58,862 –> 02:34:04,334 15 YEARS FROM NOW BNSF OR UNION
3650 02:34:01,798 –> 02:34:06,169 PACIFIC HAS HAD HIGHER EARNINGS.
3651 02:34:04,401 –> 02:34:06,470 WE’VE HAD HIGHER EARNINGS IN THE
3652 02:34:06,236 –> 02:34:12,676 PAST.
3653 02:34:06,537 –> 02:34:14,978 THE FIRST QUARTER YOU CAN LOOK
3654 02:34:12,743 –> 02:34:17,681 AT AND, YOU KNOW, THEY THINK
3655 02:34:15,045 –> 02:34:17,948 THEY’VE GOT A SLIGHTLY BETTER
3656 02:34:17,748 –> 02:34:19,983 FRANCHISE.
3657 02:34:18,015 –> 02:34:21,318 WE THINK WE’VE GOT A SLIGHTLY
3658 02:34:20,050 –> 02:34:23,520 BETTER FRANCHISE.
3659 02:34:21,385 –> 02:34:24,321 WE’RE LARGER THAN UNION PACIFIC.
3660 02:34:23,587 –> 02:34:27,424 WE SHOULD.
3661 02:34:24,388 –> 02:34:29,660 WE SHOULD MAKE A LITTLE MORE
3662 02:34:27,491 –> 02:34:33,730 MONEY THAN WE DID BUT WE HAVEN’T
3663 02:34:29,727 –> 02:34:35,766 THE LAST FEW YEARS.
3664 02:34:33,797 –> 02:34:37,901 IT’S QUITE A RARE ROAD.
3665 02:34:35,833 –> 02:34:42,139 I FEEL PRETTY GOOD ABOUT THAT.
3666 02:34:37,968 –> 02:34:42,406 I SHOULD GO BACK TO THE PREVIOUS
3667 02:34:42,206 –> 02:34:44,074 QUESTION.
3668 02:34:42,473 –> 02:34:44,341 PEOPLE TALK ABOUT THE AGING
3669 02:34:44,141 –> 02:34:47,010 CULTURE.
3670 02:34:44,408 –> 02:34:47,444 I ASSUME THEY’RE TALKING ABOUT
3671 02:34:47,077 –> 02:34:49,913 CHARLIE.
3672 02:34:47,511 –> 02:34:51,682 I WOULD LIKE TO POINT OUT IN
3673 02:34:49,980 –> 02:34:53,883 THREE MORE YEARS CHARLIE WILL BE
3674 02:34:51,749 –> 02:34:59,656 AGING AT 1% A YEAR AND HE IS
3675 02:34:53,950 –> 02:34:59,923 THE – NO ONE’S AGING LESS THAN
3676 02:34:59,723 –> 02:35:01,725 CHARLIE.
3677 02:34:59,990 –> 02:35:03,427 IF YOU COULD TAKE SOME OF THESE
3678 02:35:01,791 –> 02:35:05,462 NEW COMPANIES WITH 25-YEAR-OLDS,
3679 02:35:03,494 –> 02:35:08,765 THEY’RE AGING AT 4% A YEAR.
3680 02:35:05,529 –> 02:35:10,600 WE WILL HAVE THE SLOWEST AGING
3681 02:35:08,832 –> 02:35:12,702 MANAGEMENT PERCENTAGEWISE BY FAR
3682 02:35:10,667 –> 02:35:16,440 THAN ANY CORPORATE COMPANY –
3683 02:35:12,769 –> 02:35:18,274 ANY AMERICAN COMPANY HAS.
3684 02:35:16,507 –> 02:35:19,642
DID YOU WANT TO TALK ABOUT
3685 02:35:18,341 –> 02:35:21,978 GEICO VERSUS PROGRESSIVE?
3686 02:35:19,709 –> 02:35:23,680 I HAVE A LOT OF QUESTIONS ON
3687 02:35:22,045 –> 02:35:26,016 THAT PROGRESSIVE HAS HAD THE
3688 02:35:23,747 –> 02:35:27,517 BEST OPERATION IN THE LAST – IN
3689 02:35:26,083 –> 02:35:29,086 RECENT YEARS IN TERMS OF
3690 02:35:27,584 –> 02:35:30,987 MATCHING RATE TO RISK.
3691 02:35:29,153 –> 02:35:33,890 THAT’S WHAT INSURANCE IS ALL
3692 02:35:31,054 –> 02:35:35,926 ABOUT, AMONG OTHER THINGS.
3693 02:35:33,957 –> 02:35:38,061 YOU HAVE TO HAVE THE RIGHT RATE.
3694 02:35:35,993 –> 02:35:39,162 IF YOU THINK 90-YEAR-OLDS AND
3695 02:35:38,128 –> 02:35:40,898 20-YEAR-OLDS HAVE AN EQUAL
3696 02:35:39,229 –> 02:35:42,566 CHANCE OF DYING, YOU’RE GOING TO
3697 02:35:40,964 –> 02:35:44,067 BE OUT OF BUSINESS VERY QUICKLY,
3698 02:35:42,633 –> 02:35:46,002 THE LIFE INSURANCE BUSINESS.
3699 02:35:44,134 –> 02:35:47,871 YOU WILL GET ALL OF THE
3700 02:35:46,069 –> 02:35:53,176 90-YEAR-OLD RISKS AND THE OTHER
3701 02:35:47,938 –> 02:35:53,710 GUY WILL GET ALL OF THE AUTO
3702 02:35:53,243 –> 02:35:55,412 INSURANCE.
3703 02:35:53,777 –> 02:35:56,747 THERE’S A DIFFERENCE BETWEEN
3704 02:35:55,479 –> 02:36:01,818 60-YEAR-OLD MALES AND
3705 02:35:56,814 –> 02:36:02,051 40-YEAR-OLD MARRIED, EMPLOYED
3706 02:36:01,885 –> 02:36:05,054 PEOPLE.
3707 02:36:02,118 –> 02:36:08,958 SO THE COMPANIES THAT DO THE
3708 02:36:05,121 –> 02:36:10,393 BEST JOB OF ACTUALLY HAVING THE
3709 02:36:09,025 –> 02:36:12,228 APPROPRIATE RATE FOR EVERY ONE
3710 02:36:10,460 –> 02:36:13,764 OF THEIR POLICYHOLDERS IS GOING
3711 02:36:12,295 –> 02:36:16,366 TO DO VERY WELL.
3712 02:36:13,831 –> 02:36:17,801 PROGRESSIVE HAS DONE A VERY GOOD
3713 02:36:16,433 –> 02:36:21,872 JOB AT THAT.
3714 02:36:17,868 –> 02:36:25,342 WE’RE DOING A MUCH BETTER JOB ON
3715 02:36:21,939 –> 02:36:27,978 THAT ALREADY.
3716 02:36:25,409 –> 02:36:30,847 TODD COMBS HAS GONE THERE.
3717 02:36:28,045 –> 02:36:35,218 VERY INTERESTING BUSINESS.
3718 02:36:30,914 –> 02:36:39,790 BOTH PROGRESSIVE AND GEICO WERE
3719 02:36:35,285 –> 02:36:41,524 STARTED IN THE 30s.
3720 02:36:39,857 –> 02:36:43,459 WE HAVE HAD THE BETTER PRODUCT
3721 02:36:41,591 –> 02:36:47,798 FOR A LONG, LONG TIME IN TERMS
3722 02:36:43,526 –> 02:36:52,869 OF COST AND HERE WE ARE 85 YEARS
3723 02:36:47,865 –> 02:36:57,540 LATER IN OUR CASE AND WE HAVE
3724 02:36:52,936 –> 02:36:59,876 ABOUT 13% OR SO IN THE MARKET,
3725 02:36:57,607 –> 02:37:00,143 THE TWO ARE AT 25% IN THE
3726 02:36:59,943 –> 02:37:01,879 MARKET.
3727 02:37:00,210 –> 02:37:04,280 THE HUGE MARKET AFTER 87 YEARS
3728 02:37:01,945 –> 02:37:06,115 OF HAVING A BETTER PRODUCT, SO
3729 02:37:04,347 –> 02:37:07,150 IT’S A VERY SLOW CHANGING
3730 02:37:06,182 –> 02:37:08,985 COMPETITIVE SITUATION BUT
3731 02:37:07,217 –> 02:37:10,420 PROGRESSIVE HAS DONE A VERY,
3732 02:37:09,052 –> 02:37:13,990 VERY GOOD JOB RECENTLY.
3733 02:37:10,487 –> 02:37:17,761 WE’VE DONE A VERY GOOD JOB OVER
3734 02:37:14,057 –> 02:37:19,696 THE YEARS.
3735 02:37:17,828 –> 02:37:22,199 WE HAVE MADE SOME ARE VERY
3736 02:37:19,763 –> 02:37:23,633 SIGNIFICANT IMPROVEMENT.
3737 02:37:22,266 –> 02:37:24,568 OUR PROFITABILITY IN THE FIRST
3738 02:37:23,700 –> 02:37:26,536 QUARTER WAS GOOD.
3739 02:37:24,635 –> 02:37:30,907 BUT WE GAVE BACK MORE MONEY
3740 02:37:26,603 –> 02:37:33,776 UNDER OUR GIVEBACK ARRANGEMENT
3741 02:37:30,974 –> 02:37:35,812 WHEN THE VIRUS BROKE OUT, 2.8
3742 02:37:33,843 –> 02:37:37,314 BILLION ON THE GIVEBACK PROGRAM
3743 02:37:35,879 –> 02:37:37,981 THAT WAS LARGER THAN ANY COMPANY
3744 02:37:37,381 –> 02:37:39,716 AS WELL.
3745 02:37:38,048 –> 02:37:43,186 ONE OF THE LARGEST, I THINK, IN
3746 02:37:39,783 –> 02:37:46,022 THE COUNTRY.
3747 02:37:43,253 –> 02:37:47,324 AND GEICO AND PROGRESSIVE ARE
3748 02:37:46,089 –> 02:37:48,558 BOTH GOING TO DO VERY WELL IN
3749 02:37:47,390 –> 02:37:50,827 THE FUTURE.
3750 02:37:48,625 –> 02:37:52,562 UNION PACIFIC AND BNSF ARE GOING
3751 02:37:50,894 –> 02:37:54,297 TO DO WELL IN THE FUTURE.
3752 02:37:52,629 –> 02:37:55,632 IN EACH CASE WE WANT TO DO
3753 02:37:54,364 –> 02:37:56,266 BETTER THAN THE OTHER GUY.
3754 02:37:55,699 –> 02:37:56,866
CAN I JUST –
3755 02:37:56,333 –> 02:37:58,701
YEAH.
3756 02:37:56,933 –> 02:38:00,070
THERE’S NO QUESTION
3757 02:37:58,768 –> 02:38:02,839 PROGRESSIVE IS A MACHINE.
3758 02:38:00,137 –> 02:38:03,240 THEY ARE VERY GOOD AT WHAT THEY
3759 02:38:02,906 –> 02:38:04,607 DO.
3760 02:38:03,307 –> 02:38:05,475 UNDERWRITING IN TERMS OF WHAT
3761 02:38:04,674 –> 02:38:09,846 WARREN TALKED ABOUT.
3762 02:38:05,542 –> 02:38:11,448 HAVING SAID THAT, I THINK GEICO
3763 02:38:09,913 –> 02:38:13,416 IS CATCHING UP WITH PROGRESSIVE.
3764 02:38:11,515 –> 02:38:15,986 MORE THAN A YEAR AGO – ABOUT A
3765 02:38:13,483 –> 02:38:18,889 YEAR AGO PROGRESSIVE HAD MARGINS
3766 02:38:16,053 –> 02:38:24,561 ALMOST TWICE AS MUCH AS GEICO.
3767 02:38:18,956 –> 02:38:25,295 GROWTH RATES TWICE AS MUCH AS
3768 02:38:24,628 –> 02:38:27,297 GEICOS.
3769 02:38:25,362 –> 02:38:28,498 IF YOU LOOK AT IT NOW,
3770 02:38:27,364 –> 02:38:29,633 PROGRESSIVE IS CRUSHING IT IN
3771 02:38:28,565 –> 02:38:31,267 TERMS OF GROWTH.
3772 02:38:29,700 –> 02:38:34,104 GEICO HAS CAUGHT UP WITH
3773 02:38:31,334 –> 02:38:38,575 PROGRESSIVE IN TERMS OF MARGIN.
3774 02:38:34,171 –> 02:38:38,909 HOPEFULLY THAT GAP WILL BE
3775 02:38:38,642 –> 02:38:44,714 NONEXISTENT.
3776 02:38:38,975 –> 02:38:47,450
THE SECOND I WANT TO TALK
3777 02:38:44,781 –> 02:38:49,118 ABOUT IS THE VALUE.
3778 02:38:47,517 –> 02:38:53,356 THEY HAVE WOKEN UP TO THE FACT
3779 02:38:49,185 –> 02:38:53,556 THAT TELEMATICS HAS PLAYED A BIG
3780 02:38:53,423 –> 02:38:55,124 ROLE.
3781 02:38:53,623 –> 02:38:56,092 THEY HAVE A NUMBER OF
3782 02:38:55,191 –> 02:38:58,161 INITIATIVES AND HOPEFULLY WILL
3783 02:38:56,159 –> 02:39:01,497 SEE THE LIGHT OF DAY BEFORE NOT
3784 02:38:58,228 –> 02:39:01,965 TOO LONG AND WILL ALLOW THEM TO
3785 02:39:01,564 –> 02:39:03,666 CATCH UP.
3786 02:39:02,031 –> 02:39:05,201
I WILL PREDICT THAT FIVE
3787 02:39:03,733 –> 02:39:07,671 YEARS FROM NOW STATE FARM IS
3788 02:39:05,268 –> 02:39:10,406 STILL THE LARGEST AUTO INSURER.
3789 02:39:07,738 –> 02:39:12,609 I WILL PREDICT THAT FIVE YEARS
3790 02:39:10,473 –> 02:39:15,812 FROM NOW IT’S VERY LIKELY THAT
3791 02:39:12,676 –> 02:39:17,280 THE TOP TWO WILL BE GEICO AND
3792 02:39:15,879 –> 02:39:19,749 PROGRESSIVE AND IN WHICH ORDER
3793 02:39:17,347 –> 02:39:28,458 WE’LL SEE, BUT BOTH COMPANIES
3794 02:39:19,816 –> 02:39:31,728 ARE GOING TO DO VERY WELL IN MY
3795 02:39:28,525 –> 02:39:33,063 GEICO’S DONE EXTREMELY WELL BUT
3796 02:39:31,794 –> 02:39:34,798 PROGRESSIVE WAS BETTER AT
3797 02:39:33,129 –> 02:39:39,235 SETTING THE RIGHT RATE AND WE’RE
3798 02:39:34,865 –> 02:39:39,468 CATCHING UP, I THINK FAIRLY
3799 02:39:39,302 –> 02:39:40,637 FAST.
3800 02:39:39,535 –> 02:39:41,938
EXCUSE ME.
3801 02:39:40,704 –> 02:39:44,174 PROGRESSIVE HAS DONE BETTER BUT
3802 02:39:42,004 –> 02:39:46,343 WHEN IT COMES TO BRANDING,
3803 02:39:44,241 –> 02:39:48,612 GEICO, I THINK, IS MILES AHEAD
3804 02:39:46,409 –> 02:39:51,848 OF PROGRESSIVE AND IN TERMS OF
3805 02:39:48,679 –> 02:39:53,517 MANAGING EXPENSES, I THINK GEICO
3806 02:39:51,915 –> 02:39:55,051 DOES A MUCH BETTER JONATHAN
3807 02:39:53,583 –> 02:39:59,522 ANYONE ELSE IN THE INDUSTRY.
3808 02:39:55,118 –> 02:40:03,259
THIS QUESTION COMES FROM
3809 02:39:59,589 –> 02:40:06,363 AGRIRCI FROM SWEATSHIRTSERLAND.
3810 02:40:03,326 –> 02:40:07,897 DID BERKSHIRE SELL SOME OF THE
3811 02:40:06,429 –> 02:40:11,101 DEMONSTRATE STOCKS?
3812 02:40:07,964 –> 02:40:14,104 WHY DIDN’T BERKSHIRE BUY MORE
3813 02:40:11,168 –> 02:40:17,607 APPLE STOCKS IN 2020?
3814 02:40:14,171 –> 02:40:17,907 THIS SEEMS TO BE COUNTERINTU
3815 02:40:17,674 –> 02:40:20,677 ACTIVE.
3816 02:40:17,974 –> 02:40:21,444
WE HAVE 5.3% OR SOMETHING
3817 02:40:20,743 –> 02:40:24,280 RIGHT NOW.
3818 02:40:21,511 –> 02:40:26,316 WE PAT IN OUR SHARES WHICH HELPS
3819 02:40:24,347 –> 02:40:28,952 OUR OWN SHAREHOLDERS EXPAND
3820 02:40:26,382 –> 02:40:31,421 THEIR INTEREST IN APPLE WITHOUT
3821 02:40:29,018 –> 02:40:33,623 LAYING OUT A PENNY AND APPLE
3822 02:40:31,488 –> 02:40:36,493 JUST ANNOUNCED ANOTHER
3823 02:40:33,690 –> 02:40:38,561 REPURCHASE PROGRAM, SO LET’S SAY
3824 02:40:36,560 –> 02:40:42,666 TSH WE LOOK AT APPLE, THE
3825 02:40:38,628 –> 02:40:45,001 BUSINESS THAT WE OWN, 5.3%.
3826 02:40:42,733 –> 02:40:48,138 WE’VE GOT – IT’S A MARKETABLE
3827 02:40:45,068 –> 02:40:49,706 SECURITY, SO IT SHOWS UP AS WAY
3828 02:40:48,205 –> 02:40:50,940 GREATER THAT ANY OTHER
3829 02:40:49,773 –> 02:40:54,544 MARKETABLE SECURITY WE HAVE, BUT
3830 02:40:51,007 –> 02:40:56,846 OF COURSE, IF YOU LOOK AT OUR
3831 02:40:54,611 –> 02:40:59,216 RAILROAD, AND WE MENTIONED –
3832 02:40:56,913 –> 02:41:01,251 WELL YUP PACIFIC IS SELLING FOR
3833 02:40:59,282 –> 02:41:03,653 ABOUT 150 BILLION IN THE MARK.
3834 02:41:01,318 –> 02:41:05,588 WE TOOK ONE THAT TOOK LARGER
3835 02:41:03,719 –> 02:41:10,994 THAN UNION PACIFIC AND MAKING IT
3836 02:41:05,655 –> 02:41:15,732 LESS MONEY, BUT NOT MUCH LESS.
3837 02:41:11,061 –> 02:41:17,767 SO IT’S A – IT’S AN
3838 02:41:15,798 –> 02:41:23,073 EXTRAORDINARILY APPLE – IT’S
3839 02:41:17,834 –> 02:41:24,841 GOT – GOT A FANTASTIC – HE WAS
3840 02:41:23,140 –> 02:41:27,444 UNDER APPRECIATED FOR A WHILE.
3841 02:41:24,908 –> 02:41:29,545 I’VE SEEN A LOT OF MANAGERS,
3842 02:41:27,510 –> 02:41:31,648 HE’S ONE OF THE BEST.
3843 02:41:29,612 –> 02:41:32,382 HE’S GOT A PRODUCT THAT PEOPLE
3844 02:41:31,715 –> 02:41:35,785 ABSOLUTELY LOVE.
3845 02:41:32,449 –> 02:41:39,355 THERE’S A SOLID BASE OF PEOPLE
3846 02:41:35,852 –> 02:41:42,459 AND THE DISSATISFACTION RATES OF
3847 02:41:39,422 –> 02:41:46,028 99% AND I GET THE FIGURES FROM
3848 02:41:42,525 –> 02:41:47,564 FURNITURE MART AS TO WHAT’S
3849 02:41:46,095 –> 02:41:51,267 BEING SOLD.
3850 02:41:47,631 –> 02:41:52,836 IF PEOPLE COME IN THEY WANT
3851 02:41:51,334 –> 02:41:55,338 ANDROID PHONE.
3852 02:41:52,903 –> 02:41:57,741 IF THEY WANT AN APPLE, YOU
3853 02:41:55,405 –> 02:41:59,442 CAN’T – THE BRAND AND THE
3854 02:41:57,808 –> 02:42:02,912 PRODUCT, IT’S AN INBREBL
3855 02:41:59,509 –> 02:42:03,780 PRODUCT, A HUMAN, HUGE BARGAIN
3856 02:42:02,979 –> 02:42:05,949 TO PEOPLE.
3857 02:42:03,847 –> 02:42:07,050 THE PART IT PLAYS IN THEIR LIVES
3858 02:42:06,016 –> 02:42:09,219 IS HUGE.
3859 02:42:07,117 –> 02:42:12,055 I USE IT AS A PHONE.
3860 02:42:09,286 –> 02:42:13,089 I’M THE ONLY PERSON IN THE
3861 02:42:12,122 –> 02:42:15,825 COUNTRY, MAYBE ALEXANDER GRAHAM
3862 02:42:13,156 –> 02:42:17,894 BELL IS DOING THE SAME THING,
3863 02:42:15,892 –> 02:42:22,532 BUT IT IS INDISPENSABLE TO
3864 02:42:17,961 –> 02:42:24,968 PEOPLE, AND IT COSTS – COSTS
3865 02:42:22,599 –> 02:42:27,403 $35,000 AND I’M SURE SOME PEOPLE
3866 02:42:25,035 –> 02:42:31,575 WILL BE ASKING IF THEY HAD TO
3867 02:42:27,470 –> 02:42:33,777 GIVE UP THEIR APPLE OR GIVE UP
3868 02:42:31,641 –> 02:42:35,145 THE CAR, YOU KNOW, AND REALLY
3869 02:42:33,843 –> 02:42:36,112 MAKE THE CHOICE FOR THE NEXT
3870 02:42:35,211 –> 02:42:38,114 FIVE YEARS.
3871 02:42:36,179 –> 02:42:40,316 WHO KNOWS WHAT THEY DO?
3872 02:42:38,181 –> 02:42:47,023 BUT IT IS – AND WE GOT A CHANCE
3873 02:42:40,383 –> 02:42:49,726 TO BUY IT AND I SOLD SOME STOCK
3874 02:42:47,089 –> 02:42:50,860 LAST YEAR, ALTHOUGH OUR
3875 02:42:49,793 –> 02:42:52,996 SHAREHOLDERS HAD THEIR
3876 02:42:50,927 –> 02:42:53,930 PERCENTAGE GO UP BECAUSE WE
3877 02:42:53,063 –> 02:42:56,599 REPURCHASED SHARE.
3878 02:42:53,997 –> 02:43:00,303 BUT THAT WAS PROBABLY A MISTAKE.
3879 02:42:56,666 –> 02:43:02,839 IN FACT, CHARLIE IN HIS USUAL
3880 02:43:00,370 –> 02:43:05,241 LOW-KEY WAY LET ME KNOW THAT HE
3881 02:43:02,905 –> 02:43:06,709 THOUGHT IT WAS A MISTAKE, TOO,
3882 02:43:05,308 –> 02:43:07,477 DIDN’T YOU CHARLIE?
3883 02:43:06,776 –> 02:43:09,679
YES.
3884 02:43:07,544 –> 02:43:11,982
I COULD ONLY DO SO MANY
3885 02:43:09,746 –> 02:43:14,884 THINGS THAT I CAN GET AWAY WITH
3886 02:43:12,048 –> 02:43:19,556 CHARLIE AND I KIND OF USED THEM
3887 02:43:14,951 –> 02:43:22,459 UP BETWEEN COSTCO AND APPLE.
3888 02:43:19,623 –> 02:43:25,128 SO – AND VERY LIKELY WAS RIGHT
3889 02:43:22,525 –> 02:43:28,331 IN BOTH CIRCUMSTANCES.
3890 02:43:25,195 –> 02:43:35,738 IT’S AN EXTRAORDINARY BUSINESS.
3891 02:43:28,398 –> 02:43:40,376 BUT I DO WANT TO EMPHASIZE THAT
3892 02:43:35,805 –> 02:43:43,046 IN ITS OWN WAY, IT’S A DIFFERENT
3893 02:43:40,443 –> 02:43:45,015 WAY, BUT TEN FOCUS – WE SEE A
3894 02:43:43,112 –> 02:43:47,050 LOT OF MANAGERS OF A LOT OF
3895 02:43:45,081 –> 02:43:49,485 BUSINESSES AND YOU’RE LOOKING AT
3896 02:43:47,117 –> 02:43:49,853 TWO GREAT ONES ON BOTH ENDS
3897 02:43:49,552 –> 02:43:53,056 HERE.
3898 02:43:49,920 –> 02:43:53,990 HE’S HANDLED THAT BUSINESS SO
3899 02:43:53,123 –> 02:43:55,558 WELL.
3900 02:43:54,057 –> 02:44:01,598 HE COULDN’T DO WHAT STEVE JOBS
3901 02:43:55,625 –> 02:44:01,898 OBVIOUSLY COULD DO IN TERMS OF
3902 02:44:01,665 –> 02:44:04,067 CREATION.
3903 02:44:01,965 –> 02:44:06,069 BUT I DON’T – BUT STEVE JOBS
3904 02:44:04,134 –> 02:44:09,472 COULDN’T REALLY, I DON’T THINK,
3905 02:44:06,135 –> 02:44:10,173 DO WHAT TIM COOK WAS DONE IN
3906 02:44:09,538 –> 02:44:12,876 MANY RESPECTS.
3907 02:44:10,240 –> 02:44:16,980
I ALSO THINK IT’S CLEAR THAT
3908 02:44:12,943 –> 02:44:18,615 THAT LIST YOU SHOWED OF THE
3909 02:44:17,046 –> 02:44:19,883 AMERICAN COMPANIES, IT’S BEEN
3910 02:44:18,682 –> 02:44:23,086 VERY IMPORTANT FOR AMERICA THAT
3911 02:44:19,949 –> 02:44:25,488 WE’VE DONE SO WELL IN THIS NEW
3912 02:44:23,153 –> 02:44:28,725 TECH FIELD AND I PERSONALLY
3913 02:44:25,555 –> 02:44:30,326 WOULD NOT LIKE TO SEE OUR
3914 02:44:28,792 –> 02:44:34,931 PRESENT GIANTS BROUGHT DOWN TO
3915 02:44:30,393 –> 02:44:35,231 SOME LOW LEVEL BY SOME
3916 02:44:34,998 –> 02:44:37,000 REASONINGS.
3917 02:44:35,298 –> 02:44:38,868 I DON’T THINK THEY’RE DOING A
3918 02:44:37,066 –> 02:44:39,736 LOT OF HARM, ANYWAY, A
3919 02:44:38,935 –> 02:44:41,571 COMPETITIVE ONE.
3920 02:44:39,803 –> 02:44:43,873 I THINK THERE’S A CREDIT TO
3921 02:44:41,638 –> 02:44:44,207 AMERICANS, CREDIT TO OUR
3922 02:44:43,940 –> 02:44:45,008 CIVILIZATION.
3923 02:44:44,273 –> 02:44:46,609 AND THEY’RE HUGE.
3924 02:44:45,075 –> 02:44:50,346 AND THEY’RE HUGE, AND THAT’S
3925 02:44:46,675 –> 02:44:53,983 GOOD FOR US.
3926 02:44:50,413 –> 02:44:54,717
WELL, LET ME ASK A FOLLOW-UP
3927 02:44:54,050 –> 02:44:58,187 QUESTION.
3928 02:44:54,784 –> 02:45:00,924 THIS COMES FROM JACK ZANE WHO
3929 02:44:58,254 –> 02:45:04,327 SAYS WHAT’S YOUR MIND SET WHEN
3930 02:45:00,991 –> 02:45:10,900 YOU SEE THESE HIGH FLYERS.
3931 02:45:04,394 –> 02:45:13,169 THE BIG TECH GROWTH STOCKS, 200%
3932 02:45:10,967 –> 02:45:17,807 ETC. IN A MATTER OF OR LESS.
3933 02:45:13,236 –> 02:45:19,342 HOW DO YOU ASSESS IF THESE HIGH
3934 02:45:17,874 –> 02:45:19,742 FLYERS ARE CAPABLE OF
3935 02:45:19,409 –> 02:45:23,212 INVESTMENT?
3936 02:45:19,809 –> 02:45:26,049
WE DON’T THINK THEY’RE CRAZY.
3937 02:45:23,279 –> 02:45:31,921 BUT WE DON’T – AT LEAST
3938 02:45:26,116 –> 02:45:34,724 CHARLIE – I FEEL THAT I
3939 02:45:31,987 –> 02:45:38,695 UNDERSTAND APPLE AND IT’S FUTCH
3940 02:45:34,790 –> 02:45:40,129 WITH CONSUMERS AROUND THE WORLD
3941 02:45:38,761 –> 02:45:45,668 BETTER THAN I UNDERSTAND SOME OF
3942 02:45:40,196 –> 02:45:48,771 THE OTHERS, BUT I DON’T REGARD
3943 02:45:45,735 –> 02:45:52,175 PRICES AND THAT GETS BACK –
3944 02:45:48,838 –> 02:45:52,909 WELL, IT GETS BACK TO SOMETHING
3945 02:45:52,242 –> 02:45:56,546 FUNDAMENTAL AS INVESTMENTS.
3946 02:45:52,976 –> 02:46:00,450 I MEAN, INTEREST RATES, YOU
3947 02:45:56,613 –> 02:46:02,952 KNOW, BASICALLY ARE TO THE VALUE
3948 02:46:00,517 –> 02:46:07,323 OF ASSETS WHAT GRAVITY IS TO
3949 02:46:03,019 –> 02:46:09,926 MATTER, ESSENTIALLY, AND ON THE
3950 02:46:07,390 –> 02:46:11,661 WAY OUT HERE, I TORE OUT A
3951 02:46:09,992 –> 02:46:13,129 LITTLE CLIPPING FROM THE WALL
3952 02:46:11,728 –> 02:46:15,264 STREET JOURNAL YESTERDAY.
3953 02:46:13,196 –> 02:46:17,266 PROBABLY THE ONLY ONE READ IT,
3954 02:46:15,331 –> 02:46:17,700 SO SMALL, HAVE TROUBLE FINDING
3955 02:46:17,333 –> 02:46:21,071 IT.
3956 02:46:17,767 –> 02:46:25,875 BUT ANYWAY, ON THURSDAY, THE
3957 02:46:21,137 –> 02:46:31,514 U.S. PRESSURERY SOLD SOME
3958 02:46:25,942 –> 02:46:32,648 EIGHT – SOME FOUR WEEK NOTES
3959 02:46:31,581 –> 02:46:36,052 TREASURE BILLS AND THE PRICE
3960 02:46:32,715 –> 02:46:37,854 WAS – IF YOU LOOKED AT THE WALL
3961 02:46:36,119 –> 02:46:39,222 STREET JOURNAL IN A LITTLE
3962 02:46:37,921 –> 02:46:42,925 CORNER NEXT TO THE LAST PAGE IN
3963 02:46:39,289 –> 02:46:45,094 MY PAPER, IN THE VERY BOTTOM
3964 02:46:42,992 –> 02:46:47,430 CORNER, THEY – HERE IT IS.
3965 02:46:45,161 –> 02:46:48,031 THE RESULTS OF THE TREASURY
3966 02:46:47,497 –> 02:46:49,866 AUCTION.
3967 02:46:48,098 –> 02:46:52,101 LITTLE TINY THING.
3968 02:46:49,933 –> 02:46:56,672 THEY SOLD FOUR – THEY HAD
3969 02:46:52,168 –> 02:46:58,241 APPLICATIONS ON THE FOUR WEEK
3970 02:46:56,739 –> 02:46:59,108 TREASURY BILLS FOR A HUNDRED AND
3971 02:46:58,308 –> 02:47:02,612 SOME BILLION.
3972 02:46:59,175 –> 02:47:08,852 THEY ACCEPTED BIDS FOR 40 – 43
3973 02:47:02,678 –> 02:47:15,925 BILLION WORTH, AND IT SAYS
3974 02:47:08,918 –> 02:47:16,225 AVERAGE – AVERAGE PRICE,
3975 02:47:15,992 –> 02:47:19,629 100.000000.
3976 02:47:16,292 –> 02:47:21,698 SIX ZEROS.
3977 02:47:19,696 –> 02:47:24,467 AND ESSENTIALLY, PEOPLE WERE
3978 02:47:21,764 –> 02:47:27,070 GIVING 40-SOME BILLION TO THE
3979 02:47:24,533 –> 02:47:28,071 TREASURY AND THEY OFFERED 30
3980 02:47:27,137 –> 02:47:29,038 BILLION, WHATEVER THE AMOUNT
3981 02:47:28,138 –> 02:47:32,942 WAS.
3982 02:47:29,105 –> 02:47:36,846 THE TREASURY RECEIVED THE MONEY
3983 02:47:33,009 –> 02:47:38,514 AT ZERO AND JANET YELLEN HAS
3984 02:47:36,912 –> 02:47:39,181 TALKED A COUPLE OF TIMES ABOUT
3985 02:47:38,581 –> 02:47:41,284 THE REDUCED CARRYING COST OF THE
3986 02:47:39,248 –> 02:47:44,587 DEBT.
3987 02:47:41,351 –> 02:47:48,324 I THINK IN THE LAST FISCAL
3988 02:47:44,654 –> 02:47:49,826 QUARTER, U.S. TREASURY, WHICH
3989 02:47:48,391 –> 02:47:52,795 U.S. GOVERNMENT WHICH HOLDS A
3990 02:47:49,892 –> 02:47:54,263 FEW BILLION – A FEW TRILLION
3991 02:47:52,861 –> 02:47:56,666 DOLLARS THAN A YEAR AGO.
3992 02:47:54,330 –> 02:47:59,802 THE EXPENSE WAS DOWN 8%, SO YOU
3993 02:47:56,732 –> 02:48:02,872 HAD THIS INCREDIBLE REDUCTION IN
3994 02:47:59,869 –> 02:48:05,908 THE SO-CALLED SUPER RISK-FREE
3995 02:48:02,939 –> 02:48:08,411 GROUP, THE SHORT-TERM TREASURY
3996 02:48:05,975 –> 02:48:10,313 BILL, AND THAT IS THE YARD STICK
3997 02:48:08,478 –> 02:48:10,580 AGAINST WHICH OTHER VALUES ARE
3998 02:48:10,380 –> 02:48:15,718 MEASURED.
3999 02:48:10,647 –> 02:48:19,322 I MEAN, IF I COULD REDUCE
4000 02:48:15,785 –> 02:48:22,658 GRAVITY, IGRAVITY’S PULL BY ABOT
4001 02:48:19,389 –> 02:48:24,727 80%, I’D BE IN THE TOKYO
4002 02:48:22,725 –> 02:48:27,430 OLYMPICS JUMPING.
4003 02:48:24,794 –> 02:48:29,966 ESSENTIALLY IF INTEREST RATES
4004 02:48:27,497 –> 02:48:31,968 WERE 10% VALUATIONS, THIS
4005 02:48:30,032 –> 02:48:35,872 INCREDIBLE CHANGE IN THE
4006 02:48:32,034 –> 02:48:39,108 VALUATION OF EVERYTHING THAT
4007 02:48:35,938 –> 02:48:41,310 PRODUCES MONEY, BECAUSE THE RISK
4008 02:48:39,175 –> 02:48:41,543 FREE RATE PRODUCES REALLY SHORT
4009 02:48:41,377 –> 02:48:43,079 ENOUGH.
4010 02:48:41,610 –> 02:48:44,113 RIGHT NOW, NOTHING.
4011 02:48:43,146 –> 02:48:48,184 VERY INTERESTING.
4012 02:48:44,180 –> 02:48:52,655 I BROUGHT THIS BOOK ALONG,
4013 02:48:48,250 –> 02:48:56,392 BECAUSE FOR 25 OR MORE YEARS,
4014 02:48:52,721 –> 02:48:57,627 PAUL SANDALSON’S BOOK WAS THE
4015 02:48:56,459 –> 02:48:59,795 DEFINITIVE BOOK ON ECONOMICS.
4016 02:48:57,694 –> 02:49:02,231 IT’S TAUGHT IN EVERY SCHOOL.
4017 02:48:59,862 –> 02:49:07,103 AND PAUL WAS THE FIRST – HE WAS
4018 02:49:02,298 –> 02:49:09,138 THE FIRST NOBEL PRIZE WINNER.
4019 02:49:07,170 –> 02:49:11,774 IT’S SORTS OF A COUSIN TO THE
4020 02:49:09,204 –> 02:49:13,075 NOBEL PRICE.
4021 02:49:11,841 –> 02:49:15,411 THEY STARTED GIVING IT TO
4022 02:49:13,142 –> 02:49:17,480 ECONOMICS IN THE EARLY 60s.
4023 02:49:15,478 –> 02:49:19,349 PAUL SAMUELSSON.
4024 02:49:17,547 –> 02:49:20,917 AMAZINGLY ENOUGH, THE SECOND
4025 02:49:19,415 –> 02:49:25,021 WINNER THAT IS KEN ARROW AND
4026 02:49:20,983 –> 02:49:26,322 BOTH OF THEM ARE THE UNCLES OF
4027 02:49:25,088 –> 02:49:29,091 LARRY SOMERS.
4028 02:49:26,389 –> 02:49:31,093 HE HAS THE FIRST TWO AS UNCLES.
4029 02:49:29,158 –> 02:49:34,163 PAUL WAS A WONDERFUL GUY, A
4030 02:49:31,160 –> 02:49:40,236 WONDERFUL WRITER, THE DEFINITIVE
4031 02:49:34,230 –> 02:49:43,172 WRITER, AND SO I GOT OUT TO ‘73
4032 02:49:40,302 –> 02:49:45,241 ECONOMICS BOOK AND BEAR IN MIND
4033 02:49:43,238 –> 02:49:46,742 ECONOMICS STARTED AS KIND OF AN
4034 02:49:45,308 –> 02:49:49,145 INTERESTING SCIENCE.
4035 02:49:46,809 –> 02:49:51,847 ADAM SMITH WROTE THE WEALTH OF
4036 02:49:49,212 –> 02:49:54,651 NATIONS IN 1776, SOME BOOKS, BUT
4037 02:49:51,914 –> 02:49:57,787 SORT OF DATE IT FROM KIND OF
4038 02:49:54,717 –> 02:50:00,489 WHAT OUR COUNTRY STARTED AND YOU
4039 02:49:57,853 –> 02:50:02,791 HAVE ALL THESE GREAT ECONOMISTS.
4040 02:50:00,556 –> 02:50:04,727 I LOOKED UP IN THE BACK UNDER
4041 02:50:02,858 –> 02:50:05,962 INTEREST RATES, I LOOKED FOR
4042 02:50:04,793 –> 02:50:07,463 NEGATIVE INTEREST RATES.
4043 02:50:06,029 –> 02:50:12,201 THERE’S NOTHING THERE.
4044 02:50:07,530 –> 02:50:15,104 SO I FINALLY FOUND ZERO INTEREST
4045 02:50:12,268 –> 02:50:17,607 RATES AND PAUL SAMUELSSON,
4046 02:50:15,170 –> 02:50:19,642 BRILLIANT MAN, AFTER A COUPLE
4047 02:50:17,674 –> 02:50:22,979 HUNDRED YEARS WE’VE HAD OF
4048 02:50:19,708 –> 02:50:27,850 STUDYING ECONOMICS, BASICALLY,
4049 02:50:23,046 –> 02:50:29,485 HE SAID THAT – HE SAID YOU CAN
4050 02:50:27,917 –> 02:50:31,587 CONCEIVABLY, TECHNICALLY, YOU
4051 02:50:29,552 –> 02:50:34,023 CAN COP SIEVE PERHAPS OF
4052 02:50:31,653 –> 02:50:36,459 NEGATIVE INTEREST RATES, BUT IT
4053 02:50:34,090 –> 02:50:39,262 CAN’T EVER REALLY HAPPEN.
4054 02:50:36,526 –> 02:50:41,631 AND THAT WAS IN THE 1970s.
4055 02:50:39,329 –> 02:50:43,866 THIS WASN’T IN DARK AGES.
4056 02:50:41,698 –> 02:50:45,334 NO ECONOMIST ROLLED UP AND SAID
4057 02:50:43,932 –> 02:50:47,637 THIS IS A TERRIBLE LINE.
4058 02:50:45,401 –> 02:50:49,672 AND HERE WE ARE IN THIS WORLD
4059 02:50:47,703 –> 02:50:52,074 WHERE WE HAD ZERO INTEREST RATES
4060 02:50:49,739 –> 02:50:58,214 LAST YEAR – I MEAN LAST WEEK –
4061 02:50:52,141 –> 02:50:59,982 OR THIS WEEK OUT OF FOUR WEEK
4062 02:50:58,281 –> 02:51:01,517 NOTE, AND BERKSHIRE HATHAWAY
4063 02:51:00,049 –> 02:51:03,786 WHICH HAS MORE THAN THIS BUT
4064 02:51:01,583 –> 02:51:05,721 LET’S SAY WE HAD A HUNDRED
4065 02:51:03,853 –> 02:51:07,857 BILLION IN TREASURY BILLS.
4066 02:51:05,788 –> 02:51:10,760 WE HAVE MORE THAN THAT.
4067 02:51:07,924 –> 02:51:12,495 BEFORE THE EPIDEMIC – PANDEMIC,
4068 02:51:10,827 –> 02:51:15,464 WE WERE GETTING ABOUT A BILLION
4069 02:51:12,561 –> 02:51:18,067 AND A HALF FROM THAT A YEAR.
4070 02:51:15,531 –> 02:51:21,771 AT PRESENT RATES, IF IT’S TWO
4071 02:51:18,134 –> 02:51:22,471 BASIS POINTS, WE’D GET 20
4072 02:51:21,838 –> 02:51:24,774 MILLION.
4073 02:51:22,538 –> 02:51:29,211 IMAGINE YOUR WAGES GOING FROM
4074 02:51:24,841 –> 02:51:31,714 $15 TO $1.20 AN HOUR.
4075 02:51:29,278 –> 02:51:33,416 IT’S BEEN A SEA CHANGE.
4076 02:51:31,781 –> 02:51:35,084 IT WAS DESIGNED TO BE THAT.
4077 02:51:33,483 –> 02:51:35,584 THAT’S WHY THE FED MOVED THE WAY
4078 02:51:35,151 –> 02:51:39,555 THEY DID.
4079 02:51:35,651 –> 02:51:43,359 THEY WANTED TO GIVE A MASSIVE
4080 02:51:39,622 –> 02:51:43,626 PUSH LIKE MARIO DRAGGY DID IN
4081 02:51:43,426 –> 02:51:45,761 EUROPE.
4082 02:51:43,693 –> 02:51:49,131 HE SPED WHATEVER IT TAKES AND
4083 02:51:45,828 –> 02:51:51,734 THEY WENT TO NEGATIVE RATES, AND
4084 02:51:49,198 –> 02:51:56,872 WE – FAIR TOO SAY DIDN’T WANT
4085 02:51:51,800 –> 02:51:59,475 TO GO TO NEGATIVE RATES.
4086 02:51:56,939 –> 02:52:01,477 BUT IF PRESENT RATES WERE
4087 02:51:59,541 –> 02:52:03,179 DESTINED TO BE APPROPRIATE,
4088 02:52:01,544 –> 02:52:07,850 TEN-YEAR SHOULD REALLY BE AT THE
4089 02:52:03,246 –> 02:52:10,753 PRICE IT IS, THOSE COMPANIES
4090 02:52:07,916 –> 02:52:12,054 THAT WAS MENTIONED IN THIS
4091 02:52:10,820 –> 02:52:15,257 QUESTION, THEY’RE – THEY HAVE
4092 02:52:12,120 –> 02:52:18,327 THE ABILITY TO DELIVER CASH AT A
4093 02:52:15,324 –> 02:52:21,564 RATE THAT’S IF YOU DISCOUNT IT
4094 02:52:18,394 –> 02:52:22,198 BACK AND YOU’RE DISCOUNTING AT
4095 02:52:21,631 –> 02:52:23,432 PRESENT INTEREST RATES, STOCKS
4096 02:52:22,265 –> 02:52:25,501 ARE VERY, VERY CHEAP.
4097 02:52:23,499 –> 02:52:27,036 NOW THE QUESTION IS WHAT
4098 02:52:25,568 –> 02:52:28,871 INTEREST RATES DO OVER TIME.
4099 02:52:27,103 –> 02:52:31,207 BUT THERE’S A VIEW OF WHAT THE
4100 02:52:28,937 –> 02:52:33,576 RATES WILL BE BASED ON YIELD OUT
4101 02:52:31,274 –> 02:52:36,212 30 YEARS AND SO ON.
4102 02:52:33,643 –> 02:52:38,247 IT’S A FASCINATING TIME.
4103 02:52:36,279 –> 02:52:40,149 WE’VE NEVER REALLY SEEN WHAT
4104 02:52:38,313 –> 02:52:44,787 SHOVELING MONEY IN ON THE BASIS
4105 02:52:40,216 –> 02:52:46,922 THAT WE’RE DOING IT ON A FISCAL
4106 02:52:44,853 –> 02:52:49,792 BASIS WHILE FOLLOWING A MONETARY
4107 02:52:46,989 –> 02:52:51,761 POLICY IN THE CLOSE ZERO
4108 02:52:49,858 –> 02:52:52,495 INTEREST RATES AND IT IS
4109 02:52:51,828 –> 02:52:54,764 ENORMOUSLY PLEASANT.
4110 02:52:52,562 –> 02:52:55,398 BUT IN ECONOMICS THERE’S ONE
4111 02:52:54,831 –> 02:52:56,999 THING ALWAYS.
4112 02:52:55,465 –> 02:52:59,502 YOU CAN NEVER DO ONE THING.
4113 02:52:57,066 –> 02:52:59,702 YOU ALWAYS HAVE TO SAY AND THEN
4114 02:52:59,569 –> 02:53:08,911 WHAT.
4115 02:52:59,769 –> 02:53:13,082 AND WE’RE SENDING OUT HUGE SUMS,
4116 02:53:08,978 –> 02:53:15,351 I MEAN, PRESIDENT SEND ON 85%
4117 02:53:13,148 –> 02:53:17,553 ARE GOING TO GET A CHECK.
4118 02:53:15,418 –> 02:53:20,022 COUPLE OF YEARS AGO WE WERE
4119 02:53:17,620 –> 02:53:22,558 SAYING 40% COULD NEVER COME UP
4120 02:53:20,089 –> 02:53:24,727 WITH $400 OF CASH.
4121 02:53:22,625 –> 02:53:27,897 WE’VE GOT 85% OF THE PEOPLE
4122 02:53:24,793 –> 02:53:28,831 GETTING THOSE SUMS AND SO FAR
4123 02:53:27,964 –> 02:53:29,932 WE’VE HAD NO PLEASANT
4124 02:53:28,898 –> 02:53:33,736 CONSEQUENCES ABOUT IT.
4125 02:53:29,999 –> 02:53:37,507 PEOPLE WHO GET THE MONEY FEEL
4126 02:53:33,803 –> 02:53:39,742 BETTER AND PEOPLE WHO ARE
4127 02:53:37,573 –> 02:53:42,111 LENDING MONEY DOESN’T.
4128 02:53:39,809 –> 02:53:44,046 IT CAUSES AN ELECTRIC TO BE
4129 02:53:42,177 –> 02:53:45,214 HAPPY AND WE’LL SEE IF IT CAUSES
4130 02:53:44,113 –> 02:53:47,283 ANYTHING ELSE.
4131 02:53:45,281 –> 02:53:48,718 AND IF IT DOESN’T CAUSE ANYTHING
4132 02:53:47,350 –> 02:53:51,153 ELSE, YOU CAN COUNT ON IT
4133 02:53:48,784 –> 02:53:52,588 CONTINUING IN A VERY BIG WAY.
4134 02:53:51,220 –> 02:53:55,624 BUT THERE ARE CONSEQENCES TO
4135 02:53:52,654 –> 02:53:59,762 EVERYTHING IN ECONOMICS.
4136 02:53:55,691 –> 02:54:02,231 THAT IS – THAT IS WHY THE
4137 02:53:59,829 –> 02:54:04,300 APPLES WHEN WE OPEN MICROSOFT,
4138 02:54:02,297 –> 02:54:06,135 BUT THEY ARE INCREDIBLE
4139 02:54:04,367 –> 02:54:06,368 COMPANIES IN WHAT THEY EARN ON
4140 02:54:06,202 –> 02:54:08,337 CAPITAL.
4141 02:54:06,435 –> 02:54:11,006 THEY DON’T REQUIRE A LOT OF
4142 02:54:08,404 –> 02:54:13,909 CAPITAL AND THEY GUSH OUT MORE
4143 02:54:11,073 –> 02:54:16,111 MONEY, AND IF YOU’RE TRYING TO
4144 02:54:13,976 –> 02:54:17,780 POINT BONDS THAT GUSH OUT MORE
4145 02:54:16,178 –> 02:54:20,749 MONEY FROM THE FEDERAL
4146 02:54:17,847 –> 02:54:21,016 GOVERNMENT, WE GOT A HUNDRED
4147 02:54:20,816 –> 02:54:23,486 BILLION.
4148 02:54:21,083 –> 02:54:26,489 LIKE 30 OR $40 MILLION A YEAR,
4149 02:54:23,553 –> 02:54:28,257 WHATEVER IT MAY BE, DEPENDING ON
4150 02:54:26,556 –> 02:54:30,793 THE SHORT-TERM INTEREST RATE.
4151 02:54:28,324 –> 02:54:32,261 WHICH PUT THE PRESSURE ON, WHICH
4152 02:54:30,860 –> 02:54:32,561 IS EXACTLY WHAT THE AUTHORITIES
4153 02:54:32,328 –> 02:54:34,530 WANT.
4154 02:54:32,628 –> 02:54:36,299 I MEAN, THAT’S – THEY ARE
4155 02:54:34,597 –> 02:54:38,334 PUSHING THE ECONOMY IN A – AND
4156 02:54:36,365 –> 02:54:40,636 THEY’RE DOING IT IN EUROPE, EVEN
4157 02:54:38,401 –> 02:54:44,306 MORE EXTREME, AND THEY’RE
4158 02:54:40,702 –> 02:54:46,742 PUSHING IT AND WE’RE AIDING IT
4159 02:54:44,373 –> 02:54:48,410 WITH FISCAL POLICY.
4160 02:54:46,809 –> 02:54:49,512 PEOPLE HAVE BECOME NUMB TO
4161 02:54:48,477 –> 02:54:53,682 NUMBERS.
4162 02:54:49,579 –> 02:54:54,283 TRILLIONS DON’T MEAN ANYTHING TO
4163 02:54:53,749 –> 02:54:56,919 ANYBODY.
4164 02:54:54,350 –> 02:54:57,219 AND $1400 DOES MEAN SOMETHING TO
4165 02:54:56,986 –> 02:54:59,155 THEM.
4166 02:54:57,286 –> 02:55:01,390 WE’LL SEE WHERE IT ALL LEADS,
4167 02:54:59,221 –> 02:55:03,492 BUT CHARLIE AND I CONSIDER THE
4168 02:55:01,456 –> 02:55:05,694 MOST INTERESTING MOVIE BY FAR
4169 02:55:03,559 –> 02:55:06,061 WE’VE EVER SEEN IN TERMS OF
4170 02:55:05,761 –> 02:55:09,198 ECONOMICS.
4171 02:55:06,128 –> 02:55:10,900
YES, AND THE PROFESSIONAL
4172 02:55:09,265 –> 02:55:11,700 ECONOMISTS ARE VERY SURPRISED BY
4173 02:55:10,967 –> 02:55:14,670 WHAT’S HAPPENED.
4174 02:55:11,767 –> 02:55:14,870 IT REMINDS ME OF WHAT CHURCHILL
4175 02:55:14,737 –> 02:55:17,807 SAID.
4176 02:55:14,937 –> 02:55:20,576 HE SAID HE WAS A MODEST MAN AND
4177 02:55:17,873 –> 02:55:22,011 A GREAT DEAL MODEST ABOUT AND
4178 02:55:20,643 –> 02:55:24,680 THAT’S EXACTLY WHAT’S HAPPENING
4179 02:55:22,077 –> 02:55:26,549 WITH THE ECONOMISTS.
4180 02:55:24,747 –> 02:55:29,952 THEY’RE SO COMMON ON EVERYTHING
4181 02:55:26,616 –> 02:55:33,088 TURNS OUT THE WORLD IS MORE
4182 02:55:30,018 –> 02:55:35,891 COMPLICATED THAN THEY THOUGHT.
4183 02:55:33,155 –> 02:55:39,127
AS A FOLLOW-UP TO THAT,
4184 02:55:35,957 –> 02:55:42,131 WHAT’S YOUR OPINION ABOUT THE
4185 02:55:39,194 –> 02:55:44,533 ECONOMIC THEORY MMT, ESPECIALLY
4186 02:55:42,198 –> 02:55:46,735 THE UNITED STATES BECAUSE IT’S
4187 02:55:44,600 –> 02:55:50,172 THE RESERVE KURPSY OF THE WORLD.
4188 02:55:46,802 –> 02:55:52,008
I THINK THE MONETARY THEY’RE
4189 02:55:50,238 –> 02:55:53,309 LISTS ARE MORE CONFIDENT THAN
4190 02:55:52,074 –> 02:55:54,843 THEY NEED TO BE.
4191 02:55:53,376 –> 02:55:56,078 I DON’T THINK ANYBODY OF US KNOW
4192 02:55:54,910 –> 02:55:58,213 WHAT’S GOING TO HAPPEN.
4193 02:55:56,145 –> 02:56:00,449 I DO THINK THERE’S A GOOD CHANCE
4194 02:55:58,280 –> 02:56:03,118 THAT THERE’S EXTREME CONDUCT IS
4195 02:56:00,515 –> 02:56:03,351 MORE FEASIBLE THAN EVERYBODY
4196 02:56:03,185 –> 02:56:05,154 THOUGHT.
4197 02:56:03,418 –> 02:56:09,125 I KNOW IF YOU KEEP DOING IT
4198 02:56:05,221 –> 02:56:10,426 WITHOUT ANY LIMIT, IT WILL END
4199 02:56:09,191 –> 02:56:13,362 IN DISASTER.
4200 02:56:10,493 –> 02:56:17,833
UNRELATED QUESTION, AL CANDLE
4201 02:56:13,429 –> 02:56:20,135 WROTE IN ON THIS TOO AND SAID IF
4202 02:56:17,900 –> 02:56:22,871 YOU CAN BORROW MONEY FOR A LOW
4203 02:56:20,202 –> 02:56:23,739 INTEREST RATE, IS IT STILL WORTH
4204 02:56:22,938 –> 02:56:27,276 BORROWING THAT MONEY?
4205 02:56:23,806 –> 02:56:31,113
IT REDUCES THE VALUE BY A
4206 02:56:27,343 –> 02:56:33,115 SUBSTANTIAL AMOUNT, AND WE HAVE
4207 02:56:31,180 –> 02:56:34,183 THE FLEXIBILITY THAT VIRTUALLY
4208 02:56:33,182 –> 02:56:36,585 NO ONE HAS.
4209 02:56:34,250 –> 02:56:42,692 I’VE WRITTEN ABOUT THIS IN THE
4210 02:56:36,651 –> 02:56:45,828 ANNUAL LETTER, BUT THE – THE
4211 02:56:42,758 –> 02:56:46,595 VALUE HAS GONE DOWN
4212 02:56:45,895 –> 02:56:48,163 DRAMATICALLY, BECAUSE EVERYTHING
4213 02:56:46,662 –> 02:56:50,833 IS – EVERYTHING IS OFF OF
4214 02:56:48,230 –> 02:56:55,337 INTEREST RATES,S AND WHEN YOU
4215 02:56:50,900 –> 02:56:57,339 GET TO NEGATIVE INTEREST RATES,
4216 02:56:55,404 –> 02:57:00,109 THE COUNTRY CAN BORROW NEGATIVE
4217 02:56:57,405 –> 02:57:02,344 INTEREST RATES, YOU GET
4218 02:57:00,175 –> 02:57:03,078 SOMETHING ABOUT THE ST.
4219 02:57:02,411 –> 02:57:05,948 PETERSBURG PARADOX.
4220 02:57:03,145 –> 02:57:08,283 THOSE OF YOU WHO WANT TO GO TO
4221 02:57:06,015 –> 02:57:11,520 CHURCH.
4222 02:57:08,350 –> 02:57:12,921 IT’S A CRAZY GLIMPSE OF A BUNCH
4223 02:57:11,587 –> 02:57:17,959 OF ABSTRACT MATHEMATICS FOR YOU
4224 02:57:12,988 –> 02:57:19,394 TO GET THERE, BUT YOU’LL LOSE
4225 02:57:18,026 –> 02:57:23,332 GRAVITY ENTIRELY AND YOU KNOW,
4226 02:57:19,461 –> 02:57:24,833 IF YOU TELL ME THAT THAT I’M
4227 02:57:23,399 –> 02:57:26,802 GOING TO HAVE TO LEND MONEY FOR
4228 02:57:24,900 –> 02:57:28,470 THE GOVERNMENT AT MINUS 2% A
4229 02:57:26,869 –> 02:57:31,006 YEAR AND I’M TALKING PHENOMENAL
4230 02:57:28,537 –> 02:57:32,975 FIGURES, NOT – YOU KNOW, YOU’RE
4231 02:57:31,073 –> 02:57:33,442 TALKING HOW I’LL GO BROKE OVER
4232 02:57:33,042 –> 02:57:35,778 TIME.
4233 02:57:33,509 –> 02:57:38,847 IF I DO THAT.
4234 02:57:35,845 –> 02:57:40,215 SO IT PUSHES YOU TO DO OTHER
4235 02:57:38,914 –> 02:57:40,382 THINGS, AND OF COURSE WE’VE SEEN
4236 02:57:40,282 –> 02:57:42,518 IT.
4237 02:57:40,448 –> 02:57:46,889 WE SAW THE ROAST OF THE WORLD DO
4238 02:57:42,585 –> 02:57:49,825 IT IN MORE EXTREME FASHION, BUT
4239 02:57:46,956 –> 02:57:50,059 NOBODY, SAMUELSSON, BRILLIANT
4240 02:57:49,892 –> 02:57:51,393 MAN.
4241 02:57:50,126 –> 02:57:51,660 NOBODY THOUGHT YOU COULD DO
4242 02:57:51,460 –> 02:57:53,529 THIS.
4243 02:57:51,727 –> 02:57:55,331 WE DON’T REALLY KNOW WHAT THE
4244 02:57:53,595 –> 02:57:57,399 CONSEQUENCES ARE BUT WE KNOW
4245 02:57:55,397 –> 02:57:57,800 THERE ARE CONSEQUENCES
4246 02:57:57,466 –> 02:58:00,002 OBVIOUSLY.
4247 02:57:57,867 –> 02:58:02,371
THIS QUESTION COMES FROM SAM
4248 02:58:00,069 –> 02:58:04,039 BUTLER AND IT SAYS HE’S BEEN A
4249 02:58:02,437 –> 02:58:06,108 SHAREHOLDER FOR MANY YEARS AND
4250 02:58:04,105 –> 02:58:10,713 ASKS WHAT DOES THE IMPACT OF THE
4251 02:58:06,175 –> 02:58:13,148 LIVES OF SO MANY NEW SPACS TO
4252 02:58:10,780 –> 02:58:15,818 FIND AND CLOSE NEW OPPOSITIONS.
4253 02:58:13,215 –> 02:58:18,354
WELL, IT’S A KILLER.
4254 02:58:15,885 –> 02:58:20,956 THE SPACS GENERALLY HAVE TO
4255 02:58:18,420 –> 02:58:21,890 SPEND THEIR MONEY IN TWO YEARS,
4256 02:58:21,023 –> 02:58:23,625 AS I UNDERSTAND IT.
4257 02:58:21,957 –> 02:58:26,428 IF YOU HAVE TO BUY A BUSINESS IN
4258 02:58:23,692 –> 02:58:28,564 TWO YEARS, YOU PUT A GUN TO MY
4259 02:58:26,495 –> 02:58:30,733 HEAD AND SAID YOU GOT TO BUY A
4260 02:58:28,631 –> 02:58:32,401 BUSINESS IN TWO YEARS, I’D BUY
4261 02:58:30,799 –> 02:58:32,701 ONE BUT IT WOULDN’T BE MUCH OF
4262 02:58:32,468 –> 02:58:35,471 ONE.
4263 02:58:32,768 –> 02:58:37,339 WE LOOKED AND LOOKED AND NOW
4264 02:58:35,537 –> 02:58:37,740 THERE ARE – I DON’T KNOW HOW
4265 02:58:37,406 –> 02:58:38,841 MANY.
4266 02:58:37,807 –> 02:58:40,509 THERE’S HUNDREDS – THERE’S
4267 02:58:38,908 –> 02:58:41,509 ALWAYS BEEN THE PRESSURE FROM
4268 02:58:40,575 –> 02:58:43,779 PRIVATE EQUITY FUNDS.
4269 02:58:41,576 –> 02:58:45,013 IF YOU’RE RUNNING MONEY FOR
4270 02:58:43,845 –> 02:58:47,015 SOMEBODY ELSE AND YOU GET A FEE
4271 02:58:45,080 –> 02:58:49,317 AND YOU GET THE UP SIDE AND YOU
4272 02:58:47,082 –> 02:58:51,653 DON’T HAVE THE DOWN SIDE, YOU
4273 02:58:49,384 –> 02:58:54,623 GOT TO BUY SOMETHING.
4274 02:58:51,720 –> 02:58:57,226 I COULD TELL YOU, BUT I HAD A
4275 02:58:54,689 –> 02:58:59,294 VERY FAMOUS – I HAD A CALL FROM
4276 02:58:57,293 –> 02:59:01,997 A VERY FAMOUS FIGURE MANY YEARS
4277 02:58:59,361 –> 02:59:03,632 AGO THAT WAS INVOLVED IN AND
4278 02:59:02,063 –> 02:59:04,733 WONDERED ABOUT REINSURANCE.
4279 02:59:03,699 –> 02:59:07,302 I SAID I DON’T THINK IT’S A VERY
4280 02:59:04,799 –> 02:59:10,272 GOOD BUSINESS.
4281 02:59:07,369 –> 02:59:12,208 HE SAID, YEAH, THE MONEY IN SIX
4282 02:59:10,339 –> 02:59:13,375 MONTHS AND I HAVE TO GIVE IT
4283 02:59:12,274 –> 02:59:15,877 BACK TO THE VERSE.
4284 02:59:13,442 –> 02:59:17,612 IT’S A DIFFERENT EQUATION WHERE
4285 02:59:15,944 –> 02:59:20,115 YOU WORK WITH OTHER PEOPLE’S
4286 02:59:17,679 –> 02:59:22,618 MONEY WHERE YOU GET THE UP SIDE
4287 02:59:20,182 –> 02:59:24,920 AND YOU HAVE TO GIVE IT BACK TO
4288 02:59:22,685 –> 02:59:25,921 THEM IF NOTHING – THAT WILL GO
4289 02:59:24,987 –> 02:59:27,990 ON FOREVER.
4290 02:59:25,988 –> 02:59:29,424 IT’S WHERE THE MONEY IS NOW AND
4291 02:59:28,056 –> 02:59:31,660 WALL STREET GOES WHERE THE MONEY
4292 02:59:29,491 –> 02:59:34,163 IS AND IT DOES ANYTHING,
4293 02:59:31,727 –> 02:59:35,965 BASICALLY, THAT – THE WORKS,
4294 02:59:34,230 –> 02:59:39,735 AND SPACS HAVE BEEN WORKING FOR
4295 02:59:36,031 –> 02:59:41,770 A WHILE AND YOU SEEK STICK A
4296 02:59:39,802 –> 02:59:44,173 FAMOUS NAME ON IT, YOU CAN SELL
4297 02:59:41,836 –> 02:59:46,609 ALMOST ANYTHING, AND I GUESS –
4298 02:59:44,240 –> 02:59:53,682 ICE AN EXAGGERATED VERSION OF
4299 02:59:46,675 –> 02:59:56,852 WHAT WE’VE SEEN IN KIND OF –
4300 02:59:53,749 –> 03:00:00,956 WELL, GAMBLING DONE TYPE MARKET.
4301 02:59:56,919 –> 03:00:02,858 I DID HAVE A COLT FROM KANES
4302 03:00:01,022 –> 03:00:06,962 THAT WE MIGHT PUT UP ON THE –
4303 03:00:02,925 –> 03:00:08,898 LET’S SEE IF I’VE GOT – YEAH.
4304 03:00:07,029 –> 03:00:11,066 THIS IS PROBABLY THE MOST – ONE
4305 03:00:08,964 –> 03:00:11,333 OF THE MOST FAMOUS QUOTES IN
4306 03:00:11,133 –> 03:00:12,668 HISTORY.
4307 03:00:11,400 –> 03:00:15,470 BECAUSE IT REALLY SUMS UP THE
4308 03:00:12,735 –> 03:00:16,205 PROBLEM OF THE FACT WE’VE GOT
4309 03:00:15,537 –> 03:00:17,873 THE GREATEST MARKETS THE WORLD
4310 03:00:16,272 –> 03:00:18,874 COULD EVER IMAGINE.
4311 03:00:17,940 –> 03:00:20,542 IMAGINE BEING ABLE TO OWN PARTS
4312 03:00:18,941 –> 03:00:22,678 OF THE BIGGEST BUSINESSES IN THE
4313 03:00:20,609 –> 03:00:24,379 WORLD AND PUTTING BILLIONS OF
4314 03:00:22,744 –> 03:00:26,148 DOLLARS AND TAKE IT OUT, YOU
4315 03:00:24,446 –> 03:00:28,550 KNOW, TWO DAYS LATER.
4316 03:00:26,215 –> 03:00:30,352 I MEAN, COMPARED TO FARMS OR
4317 03:00:28,616 –> 03:00:31,287 APARTMENT HOUSES OR OFFICE
4318 03:00:30,419 –> 03:00:33,989 BUILDINGS WHERE IT TAKES MONTHS
4319 03:00:31,353 –> 03:00:35,891 TO CLOSE A DEAL, THE MARKETS OFF
4320 03:00:34,056 –> 03:00:39,394 A CHANCE TO PARTICIPATE IN
4321 03:00:35,957 –> 03:00:42,564 INVEST – IN EARNING ASSETS ON A
4322 03:00:39,461 –> 03:00:43,732 BASIS THAT’S VERY, VERY LOW
4323 03:00:42,631 –> 03:00:44,900 COST.
4324 03:00:43,799 –> 03:00:46,768 INSTANTANEOUS, HUGE, ALL KINDS
4325 03:00:44,967 –> 03:00:48,370 OF GOOD THINGS.
4326 03:00:46,835 –> 03:00:51,874 IT MAKES IT REAL MONEY IF THEY
4327 03:00:48,437 –> 03:00:55,777 CAN GET THE GAMBLERS TO COME IN.
4328 03:00:51,941 –> 03:00:56,278 THEY’RE WILLING TO TAKE MORE
4329 03:00:55,844 –> 03:01:00,849 ACTION.
4330 03:00:56,345 –> 03:01:03,686 YOU HAVE THIS INCREDIBLE, HUGE
4331 03:01:00,916 –> 03:01:05,554 ASSET TO HUMANITY BUT IT REALLY
4332 03:01:03,752 –> 03:01:06,622 MAKES US MONEY WHEN PEOPLE ARE
4333 03:01:05,620 –> 03:01:08,924 DOING STUPID THINGS.
4334 03:01:06,689 –> 03:01:09,157 THAT’S WHERE THE MONEY REALLY
4335 03:01:08,991 –> 03:01:12,194 IS.
4336 03:01:09,224 –> 03:01:14,563 GAINES WROTE THIS IN 1936.
4337 03:01:12,261 –> 03:01:19,368 IT SAYS IS 39 ON THE SLIDE BUT
4338 03:01:14,629 –> 03:01:21,637 HE WROTE IT IN 1936.
4339 03:01:19,435 –> 03:01:23,572 SPECULATORS, MANY DO NO HARM AS
4340 03:01:21,704 –> 03:01:26,107 BUBBLES ON THE STEADY STREAM OF
4341 03:01:23,638 –> 03:01:28,510 ENTERPRISE BUT THE POSITION IS
4342 03:01:26,174 –> 03:01:29,912 SERIOUS WHEN ENTERPRISE BECOMES
4343 03:01:28,576 –> 03:01:31,346 THE BUBBLE ON SPECULATION.
4344 03:01:29,979 –> 03:01:32,514 WHEN THE CAPITAL DEVELOPMENT OF
4345 03:01:31,413 –> 03:01:35,717 THE COUNTRY BECOMES A BYPRODUCT
4346 03:01:32,580 –> 03:01:40,322 OF THE TIFS OF A CASINO, THE JOB
4347 03:01:35,784 –> 03:01:42,658 IS LIKELY TO BE ILL DONE.
4348 03:01:40,389 –> 03:01:44,359 WE’VE HAD A LOT OF PEOPLE IN THE
4349 03:01:42,725 –> 03:01:46,428 CASINO, THE LAST YEAR.
4350 03:01:44,426 –> 03:01:48,063 MILLIONS AND MILLIONS OF PEOPLE
4351 03:01:46,494 –> 03:01:51,233 HAVE SET UP ACCOUNTS WHERE
4352 03:01:48,129 –> 03:01:52,935 THEY’RE DAY TRADING, PUTS AND
4353 03:01:51,300 –> 03:01:54,903 CALLS, AND I’D SAY YOU HAVE THE
4354 03:01:53,002 –> 03:01:56,739 GREATEST INCREASE IN THE NUMBER
4355 03:01:54,970 –> 03:01:58,741 OF GAMBLERS, ESSENTIALLY,
4356 03:01:56,805 –> 03:02:00,876 THAT – AND THERE’S NOTHING
4357 03:01:58,807 –> 03:02:02,711 WRONG WITH GAMBLING.
4358 03:02:00,943 –> 03:02:04,980 THEY GOT BETTER ODDS THAN THEY
4359 03:02:02,778 –> 03:02:06,648 PLAY THE STATE LOTTERY, BUT
4360 03:02:05,047 –> 03:02:06,949 THEY’VE HAD CASH IN THEIR
4361 03:02:06,715 –> 03:02:08,583 POCKET.
4362 03:02:07,016 –> 03:02:10,419 THEY’VE HAD ACTION, AND THEY
4363 03:02:08,650 –> 03:02:13,756 ACTUALLY HAVE A LOT OF GOOD
4364 03:02:10,485 –> 03:02:15,958 RESULTS AND IF THEY JUST BOUGHT
4365 03:02:13,822 –> 03:02:19,461 STOCKS THEY’D DO FINE, AND HELD
4366 03:02:16,025 –> 03:02:21,029 THEM, BUT THE GAMBLING IMPULSES
4367 03:02:19,527 –> 03:02:22,664 IN VERY STRONG IN PEOPLE
4368 03:02:21,096 –> 03:02:25,567 WORLDWIDE AND OCCASIONALLY IT
4369 03:02:22,731 –> 03:02:30,305 GETS AN ENORMOUS SHOVE AND
4370 03:02:25,633 –> 03:02:32,374 CONDITIONS LEAD TO THIS WHERE
4371 03:02:30,372 –> 03:02:33,976 MORE PEOPLE ARE BUYING.
4372 03:02:32,441 –> 03:02:36,945 THEY’RE LEAVING EVERY DAY AND
4373 03:02:34,042 –> 03:02:38,847 THAT CREATES ITS OWN RAEMT FOR A
4374 03:02:37,012 –> 03:02:43,252 WHILE AND NOBODY TELLS YOU WHEN
4375 03:02:38,914 –> 03:02:47,889 THE CLOCK IS GOING TO STRIKE
4376 03:02:43,318 –> 03:02:48,657 MIDNIGHT AND IT ALL TURNS INTO
4377 03:02:47,956 –> 03:02:50,659 PUMPKINS.
4378 03:02:48,724 –> 03:02:52,995 WHEN THE COMPETITION IS PLAYING
4379 03:02:50,725 –> 03:02:53,962 WITH OTHER PEOPLE’S MONEY OR
4380 03:02:53,061 –> 03:02:57,866 WHETHER THEY’RE – AND IF
4381 03:02:54,028 –> 03:02:58,567 THEY’RE PLAYING TOOLISHLY WITH
4382 03:02:57,933 –> 03:03:00,402 THEIR OWN MONEY BUT THE BIG
4383 03:02:58,633 –> 03:03:01,169 STUFF IS DONE WITH OTHER
4384 03:03:00,469 –> 03:03:03,205 PEOPLE’S MONEY.
4385 03:03:01,236 –> 03:03:05,040 THEY’RE GOING TO BEAT US.
4386 03:03:03,272 –> 03:03:06,508 WE’RE NOT – WE’RE NOT – THAT’S
4387 03:03:05,106 –> 03:03:08,076 A DIFFERENT GAME AND THEY’VE
4388 03:03:06,574 –> 03:03:09,878 GOT – THEY’VE GOT A LOT OF
4389 03:03:08,143 –> 03:03:12,914 MONEY, SO WE’RE NOT GOING TO
4390 03:03:09,945 –> 03:03:16,351 HAVE MUCH LUCK ON ACQUISITIONS
4391 03:03:12,981 –> 03:03:17,886 WHILE IS THIS SORT OF A PERIOD
4392 03:03:16,418 –> 03:03:18,186 CONTINUES, BUT IT’S HAPPENED
4393 03:03:17,953 –> 03:03:20,955 BEFORE.
4394 03:03:18,253 –> 03:03:27,829 THIS IS ABOUT AS EXTREME AS
4395 03:03:21,022 –> 03:03:28,062 WE’VE SEEN ITS, HASN’T, CHARLIE?
4396 03:03:28,129 –> 03:03:31,533 I CALL IT FEE DEVELOPMENT.
4397 03:03:29,665 –> 03:03:34,069 THE ADVISOR GETS A FEE, AND OF
4398 03:03:31,600 –> 03:03:36,671 COURSE, THE MORE THAT YOU GET,
4399 03:03:34,135 –> 03:03:38,406 THE SILLIER YOUR CIVILIZATION IS
4400 03:03:36,738 –> 03:03:41,276 GETTING, AND TO SOME EXTENT IT’S
4401 03:03:38,473 –> 03:03:43,211 A MORAL FAILING, TOO.
4402 03:03:41,343 –> 03:03:47,382 BECAUSE THE EASY MONEY MADE BY
4403 03:03:43,278 –> 03:03:49,317 THINGS LIKE SPACS AND RETURN
4404 03:03:47,448 –> 03:03:52,888 DERIVATIVES AND SO ON AND SO ON.
4405 03:03:49,384 –> 03:03:54,456 YOU PUSH THAT TO EXCESS, IT
4406 03:03:52,954 –> 03:03:55,691 CAUSES HORRIBLE PROBLEMS IN
4407 03:03:54,523 –> 03:03:57,025 CIVILIZATION AND REFLECTS NO
4408 03:03:55,757 –> 03:03:59,628 CREDIT ON THE PEOPLE WHO ARE
4409 03:03:57,092 –> 03:04:01,463 DOING IT AND NO CREDIT ON THE
4410 03:03:59,694 –> 03:04:04,199 PEOPLE – THE REGULATORS.
4411 03:04:01,530 –> 03:04:05,634 I THINK WE HAVE A LOT TO BE
4412 03:04:04,266 –> 03:04:06,068 ASHIEMD OF IN CURRENT
4413 03:04:05,701 –> 03:04:07,736 CONDITIONS.
4414 03:04:06,135 –> 03:04:10,372 BUT IT’S WHERE THE MONEY IS.
4415 03:04:07,803 –> 03:04:12,340 IT’S SHAMEFUL WHAT’S GOING ON.
4416 03:04:10,439 –> 03:04:14,443 IT’S NOT JUST STUPID, IT’S
4417 03:04:12,407 –> 03:04:17,045 SHAMEFUL.
4418 03:04:14,510 –> 03:04:18,981 IT’S NOT – I DON’T REGARD IT AS
4419 03:04:17,112 –> 03:04:21,950 A SHAMEFUL ON A LOT – THE
4420 03:04:19,047 –> 03:04:25,353 PEOPLE THAT GAMBLE.
4421 03:04:22,017 –> 03:04:26,321 I MEAN – GAMBLING IS A HUMAN
4422 03:04:25,420 –> 03:04:28,557 INSTINCT AND THEY’VE GOT MONEY
4423 03:04:26,388 –> 03:04:32,027 IN THEIR POCKET AND THEY KNOW
4424 03:04:28,623 –> 03:04:33,996 SOMEBODY ELSE THAT’S MADE MONEY
4425 03:04:32,094 –> 03:04:35,163 THAT THEY DON’T THINK ARE
4426 03:04:34,062 –> 03:04:36,198 SMARTER THAN THEM.
4427 03:04:35,230 –> 03:04:38,967 I DON’T LIKE THE PROFESSIONALS
4428 03:04:36,265 –> 03:04:40,335 THAT TAKE THE SUCKERS.
4429 03:04:39,034 –> 03:04:42,404
ALL RIGHT.
4430 03:04:40,402 –> 03:04:44,573 MOSHE LAVINE WRITES IN – HE’S
4431 03:04:42,470 –> 03:04:47,676 AN AMERICAN LIVING IN ISRAEL.
4432 03:04:44,640 –> 03:04:50,045 HE SAID IF YOU DEEM STOCK PRICES
4433 03:04:47,743 –> 03:04:51,747 TO BE OVERVALUED DO YOU THINK
4434 03:04:50,111 –> 03:04:53,582 I’S BETTER TO HOLD IN CASH OR
4435 03:04:51,813 –> 03:04:55,317 WOULD IT BE A BETTER IDEA TO
4436 03:04:53,648 –> 03:04:58,153 INVEST THIS MONEY IN SOME WAY
4437 03:04:55,384 –> 03:04:59,321 WHILE WAITING FOR STOCK PRICES
4438 03:04:58,220 –> 03:05:01,556 ARE FAIR AGAIN AND SELL THE
4439 03:04:59,388 –> 03:05:03,191 INVESTMENT TO BUY THE STOCKS.
4440 03:05:01,623 –> 03:05:05,093
CHARLIE AND I HAVE HAD THAT
4441 03:05:03,257 –> 03:05:07,129 DISCUSSION ON A LOT OF THINGS.
4442 03:05:05,160 –> 03:05:09,364 WE BOUGHT SOME STOCKS WE REALLY
4443 03:05:07,196 –> 03:05:13,235 DON’T KNOW THAT MUCH ABOUT BUT
4444 03:05:09,431 –> 03:05:14,102 I’M NOT REALLY COMFORTABLE DOING
4445 03:05:13,302 –> 03:05:17,172 THAT.
4446 03:05:14,169 –> 03:05:19,774 YOU USED TO SHOOTING FISH IN A
4447 03:05:17,239 –> 03:05:20,375 BARREL, BUT THAT’S GOTTEN
4448 03:05:19,841 –> 03:05:25,147 HARDER.
4449 03:05:20,442 –> 03:05:28,350 WE’VE GOT PROBABLY 10 TO 15% OF
4450 03:05:25,213 –> 03:05:30,385 OUR TOTAL ASSETS IN CASH BEYOND
4451 03:05:28,416 –> 03:05:33,088 WHAT I WOULD LIKE TO HAVE JUST
4452 03:05:30,451 –> 03:05:36,491 AS A WAY OF PROTECTING OUR –
4453 03:05:33,155 –> 03:05:37,926 THE OWNERS, THE PEOPLE THAT ARE
4454 03:05:36,558 –> 03:05:41,396 PARTNERS FROM EVER HAVING –
4455 03:05:37,993 –> 03:05:45,267 HAVING US EVER GET IN A PICKLE.
4456 03:05:41,463 –> 03:05:48,637 WE REALLY RUN BERKSHIRE THAT –
4457 03:05:45,333 –> 03:05:50,272 WE DON’T WANT TO LOSE OTHER
4458 03:05:48,703 –> 03:05:52,741 PEOPLE’S MONEY WHO STICK WITH US
4459 03:05:50,339 –> 03:05:55,010 FOR YEARS.
4460 03:05:52,808 –> 03:05:57,212 WE CAN’T HELP IF SOMEBODY BUYS
4461 03:05:55,077 –> 03:05:59,080 IT TODAY AND SELLS IT TOMORROW.
4462 03:05:57,279 –> 03:06:00,916 WE’VE GOT A GENE THAT PUSHES US
4463 03:05:59,147 –> 03:06:04,052 IN THAT DIRECTION.
4464 03:06:00,983 –> 03:06:06,988 BUT WE’VE GOT PROBABLY 70 OR 80
4465 03:06:04,119 –> 03:06:09,858 BILLION, SOMETHING LIKE THAT,
4466 03:06:07,055 –> 03:06:10,125 MAYBE, THAT WE’D LOVE TO PUT TO
4467 03:06:09,925 –> 03:06:16,298 WORK.
4468 03:06:10,192 –> 03:06:17,565 BUT THAT’S 10% OF OUR ASERSETS,
4469 03:06:16,365 –> 03:06:20,401 ROUGHLY, AND WE PROBABLY
4470 03:06:17,632 –> 03:06:22,471 WON’T – WELL, WE WILL GET A
4471 03:06:20,468 –> 03:06:24,773 CHANCE UNDER THESE CONDITIONS,
4472 03:06:22,537 –> 03:06:26,541 BUT CONDITIONS CHANGE VERY,
4473 03:06:24,840 –> 03:06:28,777 VERY, VERY RAPIDLY SOMETIMES IN
4474 03:06:26,608 –> 03:06:32,214 MARKETS, AND WE DO HAVE PEOPLE
4475 03:06:28,843 –> 03:06:34,115 THAT WOULD LIKE TO JOIN US, BUT
4476 03:06:32,280 –> 03:06:36,351 THE MARKET OPTION THEY HAVE IS
4477 03:06:34,182 –> 03:06:38,520 JUST – IS TOO GREAT FOR THEM.
4478 03:06:36,418 –> 03:06:40,922 IF THEY’RE PUBLICLY TRADED, I
4479 03:06:38,587 –> 03:06:42,891 MEAN, THEY BASICALLY CAN’T –
4480 03:06:40,989 –> 03:06:44,760 THEY WOULD HAVE GREAT DIFFICULTY
4481 03:06:42,958 –> 03:06:47,429 MAKING A DEAL WITH US BECAUSE
4482 03:06:44,826 –> 03:06:48,530 SOMEBODY ELSE WOULD A COME ALONG
4483 03:06:47,496 –> 03:06:50,966 USING OTHER PEOPLE’S MONEY.
4484 03:06:48,597 –> 03:06:53,635 IT’S – YOU KNOW, WE MAY BE
4485 03:06:51,033 –> 03:06:55,904 UNHAPPY ABOUT THE 70 BILLION BUT
4486 03:06:53,702 –> 03:06:56,638 WE’RE VERY HAPPY ABOUT THE OTHER
4487 03:06:55,971 –> 03:06:57,339 700 BILLION.
4488 03:06:56,705 –> 03:07:02,911 IT’S NOT LIKE WE SHOULD
4489 03:06:57,406 –> 03:07:05,714 COMPLAIN.
4490 03:07:02,978 –> 03:07:07,416
WHEN WE SPOKE AT THE ANNUAL
4491 03:07:05,781 –> 03:07:09,117 MEETING YOU SAID IT WAS OK IF I
4492 03:07:07,482 –> 03:07:09,751 ASKED A FOLLOW-UP.
4493 03:07:09,184 –> 03:07:11,920
YEAH.
4494 03:07:09,818 –> 03:07:13,955
YOU SAID YOU BOUGHT A LOT OF
4495 03:07:11,987 –> 03:07:14,222 STOCKS THAT YOU DON’T KNOW
4496 03:07:14,022 –> 03:07:14,856 ABOUT.
4497 03:07:14,289 –> 03:07:17,558 WHAT ARE THEY?
4498 03:07:14,923 –> 03:07:21,730
I WILL NOT GET INTO NAMING
4499 03:07:17,625 –> 03:07:23,498 THE STOCKS, AND IT MAY BE THAT
4500 03:07:21,796 –> 03:07:25,734 THERE’S SOME THERE THAT I THINK
4501 03:07:23,565 –> 03:07:25,967 I DON’T KNOW ABOUT BUT I KNOW
4502 03:07:25,801 –> 03:07:28,904 ABOUT.
4503 03:07:26,034 –> 03:07:31,440 CHARLIE AND I, I MEAN, WE KNOW
4504 03:07:28,970 –> 03:07:33,541 THE BUSINESS JIMMY BUT WE DON’T
4505 03:07:31,506 –> 03:07:37,045 HAVE ANY INSIGHTS, AND THEY ARE
4506 03:07:33,608 –> 03:07:38,546 AS A GROUP – IF I HAD TO –
4507 03:07:37,112 –> 03:07:40,815 TOLD ME I WAS GOING TO BE
4508 03:07:38,613 –> 03:07:43,485 SHOCKED AS I GOT THE BEST
4509 03:07:40,882 –> 03:07:45,353 RESULT, I’D RATHER OWN THOSE
4510 03:07:43,552 –> 03:07:47,689 STOCKS THAN THE TREASURY BILLS
4511 03:07:45,420 –> 03:07:50,792 THAT WE OWN BUT WE WORK WITH
4512 03:07:47,755 –> 03:07:52,527 QUANTITIES OF MONEY WHERE BE WE
4513 03:07:50,859 –> 03:07:55,563 PUT 50 BILLION, THINGS I’M KIND
4514 03:07:52,593 –> 03:07:56,631 OF SOCIAL ABOUT, BUT BETTER THAN
4515 03:07:55,630 –> 03:07:58,300 TREASURY BILLS.
4516 03:07:56,698 –> 03:08:00,802 I’M NOT WILDLY COMFORTABLE ABOUT
4517 03:07:58,367 –> 03:08:01,102 THAT, EVEN THOUGH IT CONCLUDE
4518 03:08:00,869 –> 03:08:02,904 UNDONE.
4519 03:08:01,169 –> 03:08:04,406 SELLING 50 BILLION WHEN IT’S
4520 03:08:02,971 –> 03:08:06,841 REALLY ATTRACTIVE TO BUY
4521 03:08:04,472 –> 03:08:08,443 SOMETHING ELSE, THERE’S A LOT OF
4522 03:08:06,908 –> 03:08:10,378 SLIPPAGE THAT’S GOING TO HAPPEN
4523 03:08:08,509 –> 03:08:12,713 IN MOVING SUMS LIKE THAT AROUND.
4524 03:08:10,445 –> 03:08:13,415 THAT’S SOMETHING WE TALK ABOUT A
4525 03:08:12,780 –> 03:08:15,283 LOT OF TIME.
4526 03:08:13,482 –> 03:08:15,817 THEY’RE GOOD COMPANIES, FINE
4527 03:08:15,350 –> 03:08:17,586 COMPANIES.
4528 03:08:15,884 –> 03:08:19,854 BUT DO WE KNOW SOMETHING ABOUT
4529 03:08:17,652 –> 03:08:20,856 THOSE COMPANIES OR HAVE A WAY OF
4530 03:08:19,921 –> 03:08:24,025 EVALUATING THAT GIVES US THE
4531 03:08:20,922 –> 03:08:26,861 EDGE O, THE ANSWER, I THINK –
4532 03:08:24,091 –> 03:08:28,263 WHAT DO YOU FEEL ABOUT IT,
4533 03:08:26,928 –> 03:08:29,931 CHARLIE.
4534 03:08:28,330 –> 03:08:31,933 WE’VE TALKED ABOUT IT A LOT.
4535 03:08:29,998 –> 03:08:34,936 OF COURSE, IT’S ALL HARDER.
4536 03:08:32,000 –> 03:08:37,238 I THINK ONE CONSEQUENCE OF THE
4537 03:08:35,003 –> 03:08:39,808 PRESENT SITUATION IS THAT BERNIE
4538 03:08:37,305 –> 03:08:41,243 SANDERS HAS BASICALLY WON AND
4539 03:08:39,874 –> 03:08:42,811 THAT’S BECAUSE THE – WITH
4540 03:08:41,309 –> 03:08:45,413 THE – EVERYTHING BOOMED UP SO
4541 03:08:42,877 –> 03:08:48,049 HIGH AND INTEREST RATES SO LOW,
4542 03:08:45,480 –> 03:08:49,951 WHAT’S GOING TO HAPPEN IS THE
4543 03:08:48,116 –> 03:08:52,187 MILLENNIAL GENERATION IS GOING
4544 03:08:50,017 –> 03:08:53,755 TO HAVE A HELL OF A TIME GETTING
4545 03:08:52,253 –> 03:08:54,655 RATES COMPARED TO OUR
4546 03:08:53,822 –> 03:08:56,858 GENERATION, SO THE DIFFERENCES
4547 03:08:54,722 –> 03:08:59,361 BETWEEN THE RICH AND THE POOR IN
4548 03:08:56,925 –> 03:09:01,496 THE GENERATION THAT’S RISING IS
4549 03:08:59,427 –> 03:09:03,531 GOING TO BE A LOT LESS.
4550 03:09:01,563 –> 03:09:06,935 SO BERNIE HAS WON.
4551 03:09:03,598 –> 03:09:07,602 THEY IT BY ACCIDENT, BUT HE WON.
4552 03:09:07,002 –> 03:09:10,872
ALL RIGHT.
4553 03:09:07,669 –> 03:09:14,075 THIS QUESTION COMES FROM DENNY
4554 03:09:10,939 –> 03:09:16,778 POLAND FROM PITTSBURGH.
4555 03:09:14,142 –> 03:09:20,315 A PROMINENT SENATOR RECENTLY
4556 03:09:16,844 –> 03:09:23,418 CATEGORIZED SHARE BUY BACKS AS
4557 03:09:20,381 –> 03:09:24,686 MARKET MA LIP LAS VEGAS.
4558 03:09:23,485 –> 03:09:26,521 COULD YOU AND CHARLIE PLEASE
4559 03:09:24,753 –> 03:09:28,223 ELABORATE ON THE HIGHER ORDER
4560 03:09:26,588 –> 03:09:31,493 EFFECT THAT THE SHARE
4561 03:09:28,290 –> 03:09:34,429 REPURCHASES HAVE ON SOCIETY?
4562 03:09:31,560 –> 03:09:35,764
THEIR WAY ESSENTIALLY OF
4563 03:09:34,495 –> 03:09:39,467 DISTRIBUTING CASH TO THE PEOPLE
4564 03:09:35,831 –> 03:09:41,503 THAT WANT THE CASH WHEN OTHER
4565 03:09:39,534 –> 03:09:41,870 CO-OWNERS MOSTLY WANT YOU TO
4566 03:09:41,570 –> 03:09:43,004 REINVEST.
4567 03:09:41,937 –> 03:09:45,907 IT’S A SAVINGS VEHICLE.
4568 03:09:43,071 –> 03:09:48,476 IF THE FOUR OF US SITTING AT
4569 03:09:45,974 –> 03:09:51,179 THIS TABLE DECIDED WE’D FORM A
4570 03:09:48,543 –> 03:09:52,914 LITTLE CUP P COMPANY AND BUY A
4571 03:09:51,245 –> 03:09:56,251 FEW FRANCHISES.
4572 03:09:52,981 –> 03:09:58,286 WE EACH PUT IN A BILLION,
4573 03:09:56,317 –> 03:09:58,686 SOMETHING LIKE THAT, AND BUY THE
4574 03:09:58,353 –> 03:10:01,623 FRANCHISE.
4575 03:09:58,753 –> 03:10:05,326 THREE OF THE FOUR OF US WANT TO
4576 03:10:01,689 –> 03:10:07,462 KEEP BUYING DWRAR QUEEN
4577 03:10:05,393 –> 03:10:08,930 FRANCHISES, AND WE’RE IN THE
4578 03:10:07,528 –> 03:10:10,965 WEALTH CREATION BUSINESS AND THE
4579 03:10:08,997 –> 03:10:13,268 FOURTH ONE SAYS, I’VE GOTTEN
4580 03:10:11,032 –> 03:10:15,937 RICH ENOUGH, I’D RATHER TAKE
4581 03:10:13,334 –> 03:10:18,339 SOME MONEY OUT AND, WELL,
4582 03:10:16,004 –> 03:10:20,275 THERE’S ONLY TWO WAYS TO DO IT.
4583 03:10:18,406 –> 03:10:23,878 WE CAN PAY DIVIDENDS ALL FOUR OF
4584 03:10:20,342 –> 03:10:26,014 US, THREE OF US WHO DON’T WANT
4585 03:10:23,945 –> 03:10:29,851 IT AND WE CAN REPURCHASE THE
4586 03:10:26,081 –> 03:10:31,653 SHARE AT A FAIR PRICE, THE
4587 03:10:29,918 –> 03:10:34,355 FOURTH ONE NATION A FAIR PRICE
4588 03:10:31,720 –> 03:10:36,925 AND GETS BOUGHT OUT.
4589 03:10:34,422 –> 03:10:37,659 IT – I FIND IT ALMOST
4590 03:10:36,992 –> 03:10:39,494 IMPOSSIBLE TO BELIEVE SOME OF
4591 03:10:37,725 –> 03:10:41,930 THE ARGUMENTS THAT ARE MADE THAT
4592 03:10:39,561 –> 03:10:43,398 IT’S TERRIBLE TO DO REPURCHASE
4593 03:10:41,996 –> 03:10:46,034 SHARES FROM A PARTNER IF THEY
4594 03:10:43,465 –> 03:10:49,103 WANT TO GET OUT OF SOMETHING AND
4595 03:10:46,101 –> 03:11:00,114 YOU’RE ABLE TO DO IT AT PRICES
4596 03:10:49,170 –> 03:11:00,114 ADD ADVANTAGE D VANDAL TABLES.
4597 03:11:00,247 –> 03:11:03,718 WE HAD A VOTE ON.
4598 03:11:01,883 –> 03:11:05,520 WE’VE GOT SAVERS.
4599 03:11:03,785 –> 03:11:06,488 THAT’S PARTLY BECAUSE WE’VE
4600 03:11:05,587 –> 03:11:08,389 ADVERTISED OURSELVES AS BEING
4601 03:11:06,554 –> 03:11:11,225 THAT SORT OF A VEHICLE.
4602 03:11:08,456 –> 03:11:14,963 WE’VE CREATED THAT AND STUCK
4603 03:11:11,292 –> 03:11:18,266 WITH IT FOR 50-SOMETHING YEARS.
4604 03:11:15,030 –> 03:11:20,769 A HUGE NUMBER OF PEOPLE LOOK AT
4605 03:11:18,333 –> 03:11:22,203 BERKSHIRE THAT THEY’RE GOING TO
4606 03:11:20,835 –> 03:11:24,672 OWN TILL THEY DIE.
4607 03:11:22,270 –> 03:11:24,905 THE SAVERS GENERALLY KEEP
4608 03:11:24,739 –> 03:11:28,610 SAVING.
4609 03:11:24,972 –> 03:11:32,080 WE JUST RECENTLY HAD SOMEBODY
4610 03:11:28,676 –> 03:11:33,715 THAT FATHER CAME US 60 YEARS AGO
4611 03:11:32,147 –> 03:11:37,552 AND BILLIONS OF DOLLARS.
4612 03:11:33,782 –> 03:11:39,420 THEY JUST – THEY WEREN’T SAVING
4613 03:11:37,619 –> 03:11:41,589 EXACTLY FOR THEIR OLD AGE.
4614 03:11:39,487 –> 03:11:44,926 IT’S JUST SORT OF BUILT INTO
4615 03:11:41,656 –> 03:11:47,094 THEM THAT THEY DO IT.
4616 03:11:44,993 –> 03:11:51,165 IT’S THE MOST – WHAT COULD BE
4617 03:11:47,161 –> 03:11:53,635 MORE LOGICAL THAN IF A VERY
4618 03:11:51,232 –> 03:11:56,905 SMALL NORTH MINORITY OF YOUR
4619 03:11:53,702 –> 03:11:58,640 HOLDERS WANT TO GET IN AND THE
4620 03:11:56,972 –> 03:12:01,576 OTHERS WANT TO STAY IN.
4621 03:11:58,707 –> 03:12:03,645 YOU GIVE THE MONEY TO THE ONE
4622 03:12:01,643 –> 03:12:05,747 WHO WANTS IT AND YOU DO IT AT A
4623 03:12:03,712 –> 03:12:06,080 PRICE THAT IS BENEFICIAL TO MOST
4624 03:12:05,814 –> 03:12:07,882 PARTIES.
4625 03:12:06,147 –> 03:12:08,917 ON A PRIVATE DEAL YOU’D WORK OUT
4626 03:12:07,949 –> 03:12:10,552 THE FAIR VALUE.
4627 03:12:08,984 –> 03:12:13,454 THE MARKET TELLS YOU THE VALUE
4628 03:12:10,618 –> 03:12:14,856 IN THE CASE OF A PUBLICLY TRADED
4629 03:12:13,521 –> 03:12:15,924 COMPANY.
4630 03:12:14,923 –> 03:12:20,395 CHARLIE, GOT ANY –
4631 03:12:15,991 –> 03:12:23,665
WELL, I – WHEN PURCHASING
4632 03:12:20,462 –> 03:12:27,002 STOCK, JUST A BULLET HIGHER,
4633 03:12:23,732 –> 03:12:28,169 IT’S DEEPLY IMMORAL, BUT IF
4634 03:12:27,068 –> 03:12:29,638 YOU’RE REPURCHASING STOCK
4635 03:12:28,236 –> 03:12:32,240 BECAUSE IT’S A FAIR THING TO DO
4636 03:12:29,704 –> 03:12:33,407 IN THE INTEREST OF YOUR EXISTING
4637 03:12:32,307 –> 03:12:35,443 SHAREHOLDERS, IT’S A HIGHLY
4638 03:12:33,474 –> 03:12:40,048 MORAL ACT AND THE PEOPLE WHO ARE
4639 03:12:35,510 –> 03:12:41,115 CRITICIZING IT ARE BONKERS.
4640 03:12:40,115 –> 03:12:43,418
OK.
4641 03:12:41,182 –> 03:12:46,021 THIS COMES FROM GARY GAMBINO.
4642 03:12:43,485 –> 03:12:47,655 HE WANTS TO KNOW IF BERKSHIRE
4643 03:12:46,087 –> 03:12:49,324 WOULD SWITCH ITS CAPITAL RETURN
4644 03:12:47,722 –> 03:12:51,459 POLICY TO DIVIDENDS FROM
4645 03:12:49,391 –> 03:12:53,828 BUYBACKS IF THE CAPITAL RATES
4646 03:12:51,525 –> 03:12:55,830 GAIN GOES UP.
4647 03:12:53,895 –> 03:12:56,631 DIVIDENDS WOULD BE FAR MORE
4648 03:12:55,897 –> 03:12:58,733 TAXED ADVANTAGE FOR SHARE OLDERS
4649 03:12:56,698 –> 03:12:59,300 UNDER THAT SCENARIO.
4650 03:12:58,800 –> 03:13:02,637
YEAH.
4651 03:12:59,367 –> 03:13:08,409 WE HAD A – WE LITERALLY DID
4652 03:13:02,703 –> 03:13:09,076 HAVE A VOTE BY SHAREHOLDERS.
4653 03:13:08,476 –> 03:13:11,613 WE HAVE DIFFERENT SHAREHOLDERS
4654 03:13:09,143 –> 03:13:13,982 THAN A REIT HAVE.
4655 03:13:11,680 –> 03:13:17,018 PEOPLE SELECT WHAT THEY GO INTO.
4656 03:13:14,049 –> 03:13:18,720 PEOPLE GOING INTO SPACS HOPES IT
4657 03:13:17,085 –> 03:13:21,656 GOES UP NEXT WEEK, BASICALLY.
4658 03:13:18,787 –> 03:13:23,558 AND WE’VE GOT A BUNCH OF PEOPLE
4659 03:13:21,723 –> 03:13:23,758 WHO WERE ASSEMBLED OVER 55
4660 03:13:23,625 –> 03:13:25,326 YEARS.
4661 03:13:23,825 –> 03:13:27,862 THEY STARTED WITH A BASE OF
4662 03:13:25,393 –> 03:13:29,664 PEOPLE THAT IT WAS A LIFETIME
4663 03:13:27,929 –> 03:13:32,333 INVESTMENT, AND IF THEY WANTED
4664 03:13:29,731 –> 03:13:34,135 TO CASH OUT, THEY THOUGHT THEY’D
4665 03:13:32,400 –> 03:13:36,271 GET A FAIR PRICE AT THAT TIME.
4666 03:13:34,202 –> 03:13:38,205 BUT THEY BOUGHT IT WITH NO
4667 03:13:36,337 –> 03:13:41,376 INTENTIONS LIKE THAT, SO WE HAD
4668 03:13:38,272 –> 03:13:42,944 A VOTE AND I FEEL SOMETHING LIKE
4669 03:13:41,443 –> 03:13:44,379 97% OR SOMETHING OF THE SHARES
4670 03:13:43,010 –> 03:13:45,313 THAT – THEY DON’T WANT A
4671 03:13:44,445 –> 03:13:47,448 DIFFICULT DENIED.
4672 03:13:45,380 –> 03:13:48,082 THAT WOULDN’T BE TRUE AT OTHER
4673 03:13:47,515 –> 03:13:50,351 KMGS.
4674 03:13:48,149 –> 03:13:52,020 YOU’D BE CRAZY TO PAY A REGULAR
4675 03:13:50,417 –> 03:13:53,988 EVENT LIKE COCA-COLA HAS DONE
4676 03:13:52,086 –> 03:13:55,223 MANY YEARS AND THEY ALL OF A
4677 03:13:54,055 –> 03:13:57,158 SUDDEN CHANGE THE POLICY ON
4678 03:13:55,289 –> 03:13:59,093 MILLIONS OF PEOPLE WHO BOUGHT IT
4679 03:13:57,225 –> 03:14:01,663 WITH ONE EXPECTATION IN MIND AND
4680 03:13:59,160 –> 03:14:02,864 TRY TO CHANGE IT INTO A
4681 03:14:01,730 –> 03:14:05,433 DIFFERENT ANIMAL.
4682 03:14:02,931 –> 03:14:10,104 BUT COCA-COLA ISN’T GOING CHANGE
4683 03:14:05,500 –> 03:14:11,305 TO BERK IRAND BERKSHIRE WON’T
4684 03:14:10,171 –> 03:14:13,174 CHANGE INTO COCA-COLA.
4685 03:14:11,372 –> 03:14:15,443 PEOPLE HAVE A CHOICE EVERY DAY
4686 03:14:13,241 –> 03:14:16,811 WHICH DO YOU WANT – SORT OF
4687 03:14:15,510 –> 03:14:18,479 THING YOU WANT TO BE IN.
4688 03:14:16,878 –> 03:14:22,116 AND BERKSHIRE IS A CERTAIN KIND
4689 03:14:18,545 –> 03:14:24,852 OF ANIMAL IN THAT RESPECT.
4690 03:14:22,183 –> 03:14:28,122
SO WE WILL NOT – IF THEY JIG
4691 03:14:24,919 –> 03:14:30,024 AROUND THE TAX LAWS, THAT’S NOT
4692 03:14:28,189 –> 03:14:32,660 NOTHING TO DO WITH THE DECISION,
4693 03:14:30,091 –> 03:14:34,128 WE’VE GOT A VERY SUBSTANTIAL
4694 03:14:32,727 –> 03:14:37,632 MAJORITY OF PEOPLE THAT WANT US
4695 03:14:34,195 –> 03:14:39,734 TO REINVEST THE MONEY AND WHAT
4696 03:14:37,699 –> 03:14:41,402 THEY’RE MORE CONCERNED ABOUT IT,
4697 03:14:39,801 –> 03:14:44,139 WHETHER WE FIND SOMETHING TO DO
4698 03:14:41,469 –> 03:14:45,506 WITH THE MONEY AND REPURCHASING
4699 03:14:44,205 –> 03:14:45,807 SHARES IS SOMETHING THAT HELPS
4700 03:14:45,573 –> 03:14:48,342 THEM.
4701 03:14:45,874 –> 03:14:51,345 THEY OWN A LARGER PERCENTAGE OF
4702 03:14:48,409 –> 03:14:53,314 BERKSHIRE AS THEY GO ALONG.
4703 03:14:51,412 –> 03:14:56,017 THEY’D LOVE TO SEE US BUY
4704 03:14:53,381 –> 03:14:59,020 ANOTHER BUSINESS BUT THEY DON’T
4705 03:14:56,083 –> 03:14:59,287 MIND INTENSIFYING THEIR
4706 03:14:59,087 –> 03:15:02,023 INTEREST.
4707 03:14:59,354 –> 03:15:02,290
I’LL RUN THROUGH A FEW TAX
4708 03:15:02,090 –> 03:15:03,758 QUESTIONS.
4709 03:15:02,357 –> 03:15:05,827 WE’LL SEE HOW MANY OF YOU ANSWER
4710 03:15:03,825 –> 03:15:08,863 BEFORE WE GET TO THEM.
4711 03:15:05,894 –> 03:15:09,097 THIS CAME FROM ARTHUR LEWIS IN
4712 03:15:08,930 –> 03:15:10,231 DENVER.
4713 03:15:09,163 –> 03:15:13,234 WHAT ARE YOUR THOUGHTS ON
4714 03:15:10,297 –> 03:15:14,869 CORPORATE TAX AND STEPPED UP
4715 03:15:13,300 –> 03:15:17,171 BASIS TAX INCREASES?
4716 03:15:14,936 –> 03:15:18,205
WELL, IF CHARLIE WANTS TO
4717 03:15:17,238 –> 03:15:22,110 ANSWER THAT, I’LL BE GLAD TO
4718 03:15:18,272 –> 03:15:25,780 HAVE HIM DO IT.
4719 03:15:22,177 –> 03:15:32,053 I LONG AGO MANY TIMES HAVE SAID
4720 03:15:25,847 –> 03:15:34,322 THAT I DON’T PUT MY OPINIONS OR
4721 03:15:32,120 –> 03:15:38,326 ANYTHING IN A BLIND TRUST WHEN I
4722 03:15:34,389 –> 03:15:41,095 TAKE THIS JOB BUT I ALSO DON’T
4723 03:15:38,392 –> 03:15:43,431 SPEAK FOR BERKSHIRE HATHAWAY.
4724 03:15:41,162 –> 03:15:43,631 PEOPLE HAVE DIFFERENT VIEWS ON
4725 03:15:43,498 –> 03:15:44,866 TAXES.
4726 03:15:43,698 –> 03:15:46,768 I’VE EXPRESSED SOME THINGS IN
4727 03:15:44,933 –> 03:15:49,270 THE PAST – I DON’T LIKE TO
4728 03:15:46,835 –> 03:15:52,273 SPEAK ON BEHALF WHEN I’M SITTING
4729 03:15:49,336 –> 03:15:53,908 IN AN ANNUAL MEETING PRESUMY
4730 03:15:52,340 –> 03:15:55,676 SPEAKING FOR BERKSHIRE, I DON’T
4731 03:15:53,974 –> 03:15:56,177 REALLY LIKE TO GET INTO
4732 03:15:55,743 –> 03:15:58,346 POLITICAL QUESTIONS.
4733 03:15:56,243 –> 03:16:00,148 I DON’T THINK I SHOULD.
4734 03:15:58,413 –> 03:16:04,152 I ALSO THINK SOMEBODY ASKED ME
4735 03:16:00,215 –> 03:16:06,487 WHO I VOTED FOR, PEOPLE BUY IT
4736 03:16:04,219 –> 03:16:09,223 BUT I’VE NEVER ASKED A SINGLE
4737 03:16:06,553 –> 03:16:14,162 EMPLOYEE OF OURS WHO THEY VOTED
4738 03:16:09,290 –> 03:16:17,464 FOR, ANYTHING OF THE KIND, AND I
4739 03:16:14,229 –> 03:16:20,668 AM NOT AUTHORIZED TO GO AROUND
4740 03:16:17,531 –> 03:16:21,669 SIGNING MY NAME AS CHAIRMAN OF
4741 03:16:20,734 –> 03:16:22,970 BERKSHIRE HATHAWAY.
4742 03:16:21,736 –> 03:16:25,973 THAT – PROPOSALS.
4743 03:16:23,037 –> 03:16:26,874 IF I WRITE OP ED PIECES, I DO IT
4744 03:16:26,040 –> 03:16:30,110 AS AN INDIVIDUAL.
4745 03:16:26,941 –> 03:16:31,179 I TROO TO MAKE IT CLEAR, BECAUSE
4746 03:16:30,177 –> 03:16:32,280 I WOULDN’T WANT TO USE THE
4747 03:16:31,246 –> 03:16:36,350 MEETING TO GET A LOT ON TAXES.
4748 03:16:32,346 –> 03:16:41,289 CHARLIE.
4749 03:16:36,417 –> 03:16:47,562
NO, BUT I THINK IT’S PROBABLY
4750 03:16:41,356 –> 03:16:49,130 A MISTAKE TO BE BASICALLY ANY
4751 03:16:47,629 –> 03:16:54,268 CAPITALIST, I THINK CAPITALISM
4752 03:16:49,196 –> 03:16:58,673 IS WHAT RAISES GDP FOR
4753 03:16:54,335 –> 03:17:02,110 EVERYBODY, AND SO – AND I HAVE
4754 03:16:58,740 –> 03:17:04,645 ALSO A FEELING THAT – SOMEBODY
4755 03:17:02,176 –> 03:17:08,349 WAS RIGHT WHEN HE SAID IT’S HARD
4756 03:17:04,712 –> 03:17:08,850 FOR AN EMPTY SACK TO STAND
4757 03:17:08,416 –> 03:17:11,018 UPRIGHT.
4758 03:17:08,917 –> 03:17:11,986 IN SOME RESPECT IT HELPS THEM
4759 03:17:11,085 –> 03:17:14,722 BEHAVE BETTER.
4760 03:17:12,053 –> 03:17:17,024 NOW, THERE ARE EXCEPTIONS.
4761 03:17:14,789 –> 03:17:17,191 AND PROMOTIONAL FINANCE IS THE
4762 03:17:17,091 –> 03:17:19,894 ONE.
4763 03:17:17,257 –> 03:17:20,228 BY AND LARGE, FRANKLIN WAS
4764 03:17:19,961 –> 03:17:23,764 RIGHT.
4765 03:17:20,295 –> 03:17:26,034 SO I’M A LITTLE WARY OF JUST
4766 03:17:23,831 –> 03:17:27,969 CONSTANTLY BEING MAD AT PEOPLE
4767 03:17:26,100 –> 03:17:29,670 BECAUSE THEY HAVE MORE MONEY.
4768 03:17:28,036 –> 03:17:31,272
CHARLIE, THERE WAS A QUESTION
4769 03:17:29,737 –> 03:17:32,240 THAT CAME IN SPECIFICALLY TO YOU
4770 03:17:31,339 –> 03:17:35,710 ON TAX ISSUE.
4771 03:17:32,307 –> 03:17:38,345 OVER THE YEARS AND WITH EMPHASIS
4772 03:17:35,777 –> 03:17:40,248 IN 2020 WE’VE HEARD PEOPLE
4773 03:17:38,412 –> 03:17:40,948 LEAVING CALIFORNIA FOR VARIOUS
4774 03:17:40,315 –> 03:17:42,250 REASONS.
4775 03:17:41,015 –> 03:17:44,785 I UNDERSTAND YOU BELIEVE IT’S
4776 03:17:42,317 –> 03:17:47,021 DUMB FOR STATES TO HAVE POLICIES
4777 03:17:44,852 –> 03:17:48,522 AND LAWS THAT PROMOTE RICH
4778 03:17:47,088 –> 03:17:50,791 RESIDENTS LEAVING.
4779 03:17:48,589 –> 03:17:51,458 WHAT ARE YOUR THOUGHTS ON THOSE
4780 03:17:50,858 –> 03:17:54,195 PEOPLE LEAVING.
4781 03:17:51,525 –> 03:17:56,864 WHAT KEEPS YOU IN CALIFORNIA?
4782 03:17:54,262 –> 03:17:57,298
THAT’S A INTERESTING
4783 03:17:56,931 –> 03:18:01,736 QUESTION.
4784 03:17:57,365 –> 03:18:04,205 I HAD ONE SAID I WOULDN’T MOVE
4785 03:18:01,802 –> 03:18:04,405 ACROSS THE STREET TO DO THE
4786 03:18:04,272 –> 03:18:05,840 TAXES.
4787 03:18:04,472 –> 03:18:06,407 THAT’S MY PERMANENT VIEW ON THE
4788 03:18:05,907 –> 03:18:08,342 SUBJECT.
4789 03:18:06,474 –> 03:18:11,412 BUT I DO THINK IT’S SAFER FOR
4790 03:18:08,409 –> 03:18:12,847 STATES TO DRIVE OUT THEIR
4791 03:18:11,479 –> 03:18:15,583 WEALTHIEST CITIZENS.
4792 03:18:12,914 –> 03:18:17,218 THE OLD PEOPLE DON’T COMMIT
4793 03:18:15,650 –> 03:18:18,519 CRIMES, THEY DON’T PLEDGE TO THE
4794 03:18:17,285 –> 03:18:21,889 LOCAL CHARITY.
4795 03:18:18,586 –> 03:18:24,258 WHO IN THE HELL IN THEIR RIGHT
4796 03:18:21,956 –> 03:18:24,491 MAP WOULD DRIVE OUT THE RICH
4797 03:18:24,325 –> 03:18:26,961 PEOPLE.
4798 03:18:24,558 –> 03:18:29,563 FLORIDA AND PLACES LINING THAT
4799 03:18:27,028 –> 03:18:31,832 ARE SHREWD AND PLACES LIKE
4800 03:18:29,630 –> 03:18:33,267 CALIFORNIA ARE BEING VERY
4801 03:18:31,899 –> 03:18:35,336 STUPID.
4802 03:18:33,334 –> 03:18:36,203 IT’S CONTRARY TO THE INTEREST OF
4803 03:18:35,403 –> 03:18:40,007 THE STATE.
4804 03:18:36,270 –> 03:18:43,311
JACK ROB IPS ASKS, HOW WILL
4805 03:18:40,074 –> 03:18:43,578 THE TAX RATE AFFECT BERKSHIRE
4806 03:18:43,378 –> 03:18:45,079 COMPANIES?
4807 03:18:43,645 –> 03:18:47,047
WELL, I DON’T THINK IT WOULD
4808 03:18:45,145 –> 03:18:49,083 BE THE END OF THE WORLD.
4809 03:18:47,114 –> 03:18:50,418 WE’LL ADAPT TO THE INTEREST
4810 03:18:49,150 –> 03:18:52,687 RATE, WHATEVER IT IS.
4811 03:18:50,485 –> 03:18:55,990
I WOULD SAY IF THEY RAISE THE
4812 03:18:52,754 –> 03:18:57,558 TAX RATE, THEY’RE OWNING – THE
4813 03:18:56,056 –> 03:18:58,593 FEDERAL GOVERNMENT’S OPENING A
4814 03:18:57,624 –> 03:19:00,928 LARGER PERCENTAGE OF BUSINESS.
4815 03:18:58,659 –> 03:19:03,097 I’M NOT SAYING WHAT THE TAX RATE
4816 03:19:00,995 –> 03:19:05,466 IS BUT WE HAVE A CLASS A STOCK
4817 03:19:03,164 –> 03:19:06,968 AND A CLASS B STOCK.
4818 03:19:05,533 –> 03:19:08,703 THE ENGLISH GOVERNMENT OWNS WHAT
4819 03:19:07,035 –> 03:19:10,838 I CALL THE CLASS AA STOCK.
4820 03:19:08,770 –> 03:19:13,774 THEY GET A PERCENTAGE OF THE
4821 03:19:10,905 –> 03:19:15,776 EARNINGS BUT THEY DON’T OWN THE
4822 03:19:13,841 –> 03:19:17,345 ASSETS AND DON’T VOTE ON WHO
4823 03:19:15,843 –> 03:19:19,080 RUBS THE PLACE OR ANYTHING ELSE.
4824 03:19:17,412 –> 03:19:22,750 BUT IF THE GOVERNMENT WANTS TO
4825 03:19:19,146 –> 03:19:24,885 START – WHEN I STARTED WITH 52%
4826 03:19:22,817 –> 03:19:27,421 THE GOVERNMENT DID FOR CORPORATE
4827 03:19:24,952 –> 03:19:30,124 PROFITS, AND THEY’VE GOT – WHAT
4828 03:19:27,488 –> 03:19:32,126 WOULD YOU PAY TO OWN THE
4829 03:19:30,191 –> 03:19:32,460 GOVERNMENT’S CLASS A DOUBLE-A
4830 03:19:32,193 –> 03:19:33,828 STOCK?
4831 03:19:32,527 –> 03:19:37,531 IF THERE WAS A PUBLIC ISSUE BY
4832 03:19:33,895 –> 03:19:39,901 THE U.S. TREASURY AND THEY SAID
4833 03:19:37,598 –> 03:19:42,870 THIS VEHICLE, GIVEN A NAME LIKE
4834 03:19:39,967 –> 03:19:45,573 SPAC OR SOMETHING, EVEN SEXIER,
4835 03:19:42,937 –> 03:19:47,708 BUT ALL IT WILL DO IS IT OWNS
4836 03:19:45,639 –> 03:19:49,276 THE FUTURE TAX PAYMENTS OF
4837 03:19:47,775 –> 03:19:52,013 BERKSHIRE HATHAWAY FOREVER.
4838 03:19:49,343 –> 03:19:53,147 AND HOW MUCH IS THAT STOCK NOW
4839 03:19:52,080 –> 03:19:58,352 WORTH?
4840 03:19:53,214 –> 03:19:58,619 IF IT WILL PAY A BIG CASH
4841 03:19:58,419 –> 03:20:00,488 DIVIDEND.
4842 03:19:58,686 –> 03:20:04,325 IT’S WORTH MORE IF IT’S – IF
4843 03:20:00,554 –> 03:20:05,860 THE TAX RATE IS 25% OR 28% OR
4844 03:20:04,392 –> 03:20:16,971 52% OR 21%.
4845 03:20:05,927 –> 03:20:18,673 THEY OWN A SPECIAL STOCK AND
4846 03:20:17,037 –> 03:20:22,176 WHEN PEOPLE TALK ABOUT PASSING
4847 03:20:18,739 –> 03:20:23,478 THROUGH TO THE CUSTOMER, IN THE
4848 03:20:22,243 –> 03:20:25,379 KMRG BUSINESS IT DOES BUT IT
4849 03:20:23,544 –> 03:20:25,846 DOESN’T IN MOST OF OUR
4850 03:20:25,446 –> 03:20:29,183 BUSINESSES.
4851 03:20:25,913 –> 03:20:31,285 IT’S A CORPORATE FICTION WHEN
4852 03:20:29,249 –> 03:20:32,720 THEY PUT OUT SEGMENTS ABOUT THE
4853 03:20:31,352 –> 03:20:35,323 FACT THAT THIS WILL BE TERRIBLE
4854 03:20:32,787 –> 03:20:37,958 FOR ALL OF YOU PEOPLE WHO PAY
4855 03:20:35,389 –> 03:20:40,862 MORE TAXES.
4856 03:20:38,025 –> 03:20:42,963 IT HURTS THE BERKSHIRE
4857 03:20:40,928 –> 03:20:43,297 SHAREHOLDERS IF RATES ARE
4858 03:20:43,030 –> 03:20:44,698 HIGHER.
4859 03:20:43,364 –> 03:20:46,400 THAT MAY BE QUITE APPROPRIATE
4860 03:20:44,765 –> 03:20:47,501 BUT TO SAY OTHERWISE, IT DOESN’T
4861 03:20:46,467 –> 03:20:49,837 MAKE ANY SENSE.
4862 03:20:47,568 –> 03:20:50,938 I WOULD LOVE TO SEE THE
4863 03:20:49,903 –> 03:20:52,673 GOVERNMENT ACTUALLY ISSUE –
4864 03:20:51,005 –> 03:20:55,710 THEY COULD HAVE – I MEAN, THEY
4865 03:20:52,739 –> 03:20:57,111 COULD SET UP A COMPANY, CALL IT
4866 03:20:55,776 –> 03:20:58,513 DID BERKSHIRE HATHAWAY TAX
4867 03:20:57,177 –> 03:21:01,348 COMPANY AND IT WOULD TAKE ALL
4868 03:20:58,579 –> 03:21:02,250 THE TAXES WE PAY EVERY YEAR.
4869 03:21:01,415 –> 03:21:04,718 HOW MUCH WOULD THEY BE ABLE TO
4870 03:21:02,316 –> 03:21:06,454 SELL THAT ASSET FOR?
4871 03:21:04,785 –> 03:21:07,688 THEY TALK ABOUT UNFUNDED
4872 03:21:06,521 –> 03:21:09,389 OBLIGATIONS OF THE GOVERNMENT.
4873 03:21:07,755 –> 03:21:10,391 THAT’S AN UNREPORTED ASSET OF
4874 03:21:09,456 –> 03:21:15,162 THE FEDERAL GOVERNMENT.
4875 03:21:10,458 –> 03:21:16,730 THEY OWN PART OF BHERKERKSHIRE
4876 03:21:15,229 –> 03:21:18,199 THEY GET TO DETERMINE A LOT.
4877 03:21:16,797 –> 03:21:21,035 IT’S AN INTERESTING QUESTION.
4878 03:21:18,266 –> 03:21:24,872
ONE LAST TAX QUESTION.
4879 03:21:21,102 –> 03:21:26,741 THIS ONE COMES FROM WILLIAM
4880 03:21:24,938 –> 03:21:28,876 BARNARD WHO SAYS A PORTION OF
4881 03:21:26,807 –> 03:21:32,713 YOUR ANNUAL REPORT YOU STATE ON
4882 03:21:28,942 –> 03:21:34,448 MY DEATH NONE OF MY STONG WILL
4883 03:21:32,780 –> 03:21:36,684 HAVE TO BE SOLD.
4884 03:21:34,515 –> 03:21:42,389 WILL THE RECENT BIDEN PROPOSAL
4885 03:21:36,751 –> 03:21:44,825 TO TREAT GAINS AS SOLD AND DEATH
4886 03:21:42,456 –> 03:21:45,626 43.4% FOR PAGE OF TAXES UPON
4887 03:21:44,891 –> 03:21:47,728 YOUR DEATH.
4888 03:21:45,693 –> 03:21:48,963
THE TAX LAW CAN BE CHANGED
4889 03:21:47,794 –> 03:21:51,365 TOMORROW AND I DON’T – IT CAN
4890 03:21:49,030 –> 03:21:52,633 BE DONE A LOT OF DIFFERENT WAYS.
4891 03:21:51,432 –> 03:21:54,435 IT’S BEEN DONE A LOT OF
4892 03:21:52,700 –> 03:21:56,270 DIFFERENT WAYS IN THE PAST.
4893 03:21:54,502 –> 03:21:59,640 I CAN TELL YOU – I CAN ACTUALLY
4894 03:21:56,337 –> 03:22:01,676 MAKE A PROMISE.
4895 03:21:59,707 –> 03:22:03,244 99.7% OF WHAT I HAVE WHEN I DIE
4896 03:22:01,742 –> 03:22:03,677 WILL GO TO THEM OR THE FEDERAL
4897 03:22:03,311 –> 03:22:04,345 GOVERNMENT.
4898 03:22:03,744 –> 03:22:08,149 THE FEDERAL GOVERNMENT CAN
4899 03:22:04,411 –> 03:22:11,085 DETERMINE THE RULES ON THAT.
4900 03:22:08,216 –> 03:22:12,019 AND I WOULD PREFER THAT IT WOULD
4901 03:22:11,152 –> 03:22:15,389 GO TO PHILANTHROPY.
4902 03:22:12,086 –> 03:22:17,924 I THINK IT WILL ACCOMPLISH MORE
4903 03:22:15,456 –> 03:22:22,863 UTILITY IF IT GOES TO BE USED BY
4904 03:22:17,991 –> 03:22:27,768 SOME SMART PEOPLE IN FLAP THROW
4905 03:22:22,930 –> 03:22:29,470 BY THAN IF IT REDUCES THE
4906 03:22:27,835 –> 03:22:32,073 FEDERAL KET WHEN I DIE.
4907 03:22:29,537 –> 03:22:33,207 I DON’T THINK IT MAKES A DAMN
4908 03:22:32,139 –> 03:22:34,842 BIT OF DIFFERENCE.
4909 03:22:33,274 –> 03:22:35,242 IT WON’T CHANGE ANYTHING IN THE
4910 03:22:34,909 –> 03:22:38,179 WORLD.
4911 03:22:35,309 –> 03:22:39,813 IT DOESN’T SAVE THEM ANYTHING OR
4912 03:22:38,246 –> 03:22:40,247 THEY CAN BORROW A BILLION OR
4913 03:22:39,880 –> 03:22:42,750 ANYWAY.
4914 03:22:40,314 –> 03:22:43,017 BUT THAT CONDITION WON’T
4915 03:22:42,817 –> 03:22:44,819 PREVAIL.
4916 03:22:43,084 –> 03:22:46,353 I WOULD NOT REGARD – I’M JUST
4917 03:22:44,885 –> 03:22:49,790 TALKING PERSONALLY.
4918 03:22:46,420 –> 03:22:50,591 I’M NOT ADVOCATING THIS AS
4919 03:22:49,856 –> 03:22:53,093 PUBLIC POLICY, BUT IF THEY TOOK
4920 03:22:50,657 –> 03:22:53,894 IT ALL, IT WOULD NOT BOTHER ME.
4921 03:22:53,160 –> 03:22:57,665
I GUARANTEE IT WON’T BOTHER
4922 03:22:53,961 –> 03:22:59,600 YOU.
4923 03:22:57,732 –> 03:23:02,270 YOU WON’T KNOW.
4924 03:22:59,667 –> 03:23:05,539
THE – YOU KNOW, IF YOU
4925 03:23:02,336 –> 03:23:06,640 DECIDE – IF THE AMERICAN
4926 03:23:05,606 –> 03:23:08,809 DEPARTMENT DECIDES IT’S BETTER
4927 03:23:06,707 –> 03:23:09,810 TO TAKE IT ALL – WHICH I DON’T
4928 03:23:08,875 –> 03:23:12,313 THINK THEY WILL AND I DON’T
4929 03:23:09,877 –> 03:23:14,882 THINK THEY SHOULD, BUT
4930 03:23:12,380 –> 03:23:17,051 NEVERTHELESS, SO WHAT?
4931 03:23:14,949 –> 03:23:20,254 YOU KNOW, I WOULD LIKE TO SEE IT
4932 03:23:17,118 –> 03:23:21,622 USED TO ACCOMPLISH THE MOST FOR
4933 03:23:20,321 –> 03:23:25,459 HUMANITY.
4934 03:23:21,689 –> 03:23:27,761 AND THAT MEANS HAVING SMART
4935 03:23:25,526 –> 03:23:31,932 PEOPLE PROPERLY MOTIVATED AND
4936 03:23:27,828 –> 03:23:33,033 MORE IMPORTANTLY, NOT IMPROPERLY
4937 03:23:31,999 –> 03:23:35,136 MOTIVATED, DISTRIBUTE IT IN A
4938 03:23:33,100 –> 03:23:38,372 WAY AND WHO KNOWS WHAT THE HELL
4939 03:23:35,202 –> 03:23:38,973 IT WOULD BE 10, 20, 30, 40 YEARS
4940 03:23:38,439 –> 03:23:40,474 FROM NOW.
4941 03:23:39,040 –> 03:23:41,976 I KNOW IF IT GOES TO THE
4942 03:23:40,540 –> 03:23:43,477 GOVERNMENT IT REDUCES THE
4943 03:23:42,043 –> 03:23:45,613 NATIONAL DEBT BY THAT AMOUNT.
4944 03:23:43,544 –> 03:23:47,614 I DON’T THINK IT CHANGES WHETHER
4945 03:23:45,680 –> 03:23:48,649 THEY CHANGE MINIMUM WAGE LAWS OR
4946 03:23:47,681 –> 03:23:50,951 ANYTHING ELSE.
4947 03:23:48,716 –> 03:23:53,220 I JUST THINK THAT LITTLE FIGURE
4948 03:23:51,018 –> 03:23:56,190 CHANGES, IT WILL SHOW UP IN THE
4949 03:23:53,287 –> 03:23:59,493 BUDGET ONE DAY, RECEIVED FROM
4950 03:23:56,256 –> 03:23:59,927 BUFFETT X AND A HUGE FIGURE DOWN
4951 03:23:59,560 –> 03:24:01,829 BELOW.
4952 03:23:59,994 –> 03:24:03,597 I DON’T THINK IT WOULD REALLY –
4953 03:24:01,896 –> 03:24:04,531 I WOULD PREFER IT BE USED
4954 03:24:03,664 –> 03:24:06,667 PRIVATELY BUT THAT’S UP TO THE
4955 03:24:04,598 –> 03:24:07,768 PEOPLE OF THE UNITED STATES THAT
4956 03:24:06,734 –> 03:24:08,335 DECIDE THROUGH THEIR
4957 03:24:07,835 –> 03:24:12,339 REPRESENTATIVES.
4958 03:24:08,402 –> 03:24:15,209
NOW, THIS NEXT QUESTION IS
4959 03:24:12,406 –> 03:24:18,846 FOR AJIT.
4960 03:24:15,276 –> 03:24:21,849 IT COMES FROM SOMEBODY WHO SAYS
4961 03:24:18,912 –> 03:24:24,151 MR. JAIN, WHAT HAS IT TAUGHT US
4962 03:24:21,916 –> 03:24:28,222 ABOUT SYSTEMIC AND CORRELATED
4963 03:24:24,217 –> 03:24:29,056 RISK AND IS THERE ANYTHING WE
4964 03:24:28,289 –> 03:24:31,659 WILL WE WOULD DO DIFFERENTLY
4965 03:24:29,123 –> 03:24:33,494 FROM NOW ON?
4966 03:24:31,725 –> 03:24:34,495
WE AUTOMATIC THINK ABOUT
4967 03:24:33,560 –> 03:24:36,163 PANDEMIC AS ONE OF THE RISK
4968 03:24:34,561 –> 03:24:36,764 FACTORS THAT WE NEED TO HOLD IN
4969 03:24:36,229 –> 03:24:39,100 OUR BUSINESS.
4970 03:24:36,830 –> 03:24:41,669 HAVING SAID THAT, I THINK THE
4971 03:24:39,166 –> 03:24:44,771 BIG LESSON FOR US, HAVING GONE
4972 03:24:41,735 –> 03:24:46,474 THROUGH WHOOEF GONE THROUGH
4973 03:24:44,838 –> 03:24:48,075 RECENTLY IS THAT WHILE WE WERE
4974 03:24:46,540 –> 03:24:52,112 AWARE THAT THE FACT THAT
4975 03:24:48,141 –> 03:24:53,046 PANDEMIC RISK IS A RISK FACTOR,
4976 03:24:52,179 –> 03:24:55,916 IF IT’S TOTALLY UNDERPRICED BY
4977 03:24:53,113 –> 03:24:58,586 ALL OF US IN THE INDUSTRY.
4978 03:24:55,983 –> 03:25:00,253 IT’S AN EVENT THAT HAPPENED AT
4979 03:24:58,652 –> 03:25:02,723 MOST EVERY HUNDRED YEARS, AND
4980 03:25:00,320 –> 03:25:03,557 EVEN THEN, THE ODDS ARE PRETTY
4981 03:25:02,790 –> 03:25:06,760 HIGH.
4982 03:25:03,624 –> 03:25:09,397 I THINK THE BIG LESSON FOR US IS
4983 03:25:06,827 –> 03:25:10,698 TO RETHINK ABOUT WHAT IT IS FOR
4984 03:25:09,463 –> 03:25:13,200 A PANDEMIC RISK.
4985 03:25:10,765 –> 03:25:15,569 AND SEPARATELY, WE HAVEN’T YET
4986 03:25:13,266 –> 03:25:17,171 DONE A GOOD ENOUGH JOB AS AN
4987 03:25:15,636 –> 03:25:20,007 INDUSTRY, I’M SAYING, IN TERMS
4988 03:25:17,238 –> 03:25:21,609 OF CORRELATING THE KISK RISK AND
4989 03:25:20,074 –> 03:25:23,243 MAKING SURE THEY CAN DEAL WITH
4990 03:25:21,675 –> 03:25:27,314 THE AGGREGATE NUMBERS.
4991 03:25:23,310 –> 03:25:29,150 FOR EXAMPLE, PANDEMIC RISK HAS
4992 03:25:27,380 –> 03:25:32,920 TAKEN PEOPLE’S LIVES, BUT THEN
4993 03:25:29,216 –> 03:25:34,488 SEPARATELY A BUNCH OF US USED TO
4994 03:25:32,987 –> 03:25:36,890 WRITE SOMETHING CALLED EVENT
4995 03:25:34,554 –> 03:25:37,157 CANCELLATION OR CONTINGENCY
4996 03:25:36,957 –> 03:25:43,397 POLICY.
4997 03:25:37,224 –> 03:25:46,300 IN TERMS OF PRICING FOR THE
4998 03:25:43,464 –> 03:25:46,567 CONTINGENCY, SHOULD THE OLYMPICS
4999 03:25:46,367 –> 03:25:48,769 CANCEL.
5000 03:25:46,634 –> 03:25:50,804 WHEN PRICING SOMETHING LIKE THAT
5001 03:25:48,836 –> 03:25:53,107 WE WOULD THINK IN TERMS OF
5002 03:25:50,871 –> 03:25:55,576 EARTHQUAKE AND RISK AND MORE
5003 03:25:53,174 –> 03:25:57,811 RECENTLY TERRORISM BUT YOU WOULD
5004 03:25:55,643 –> 03:25:59,046 NEVER FACTOR SOMETHING LIKE WHAT
5005 03:25:57,877 –> 03:26:01,815 PORTION OF THE PRICE SHOULD COME
5006 03:25:59,113 –> 03:26:04,885 FROM THE PANDEMIC EXPOSURE.
5007 03:26:01,882 –> 03:26:09,489 I THINK THE INDUSTRY WILL BECOME
5008 03:26:04,952 –> 03:26:12,459 A LOT MORE SOPHISTICATED.
5009 03:26:09,556 –> 03:26:12,860 AS OPPOSED TO IT BEING
5010 03:26:12,526 –> 03:26:15,496 LOCALIZED.
5011 03:26:12,927 –> 03:26:22,569
DON ASKED IF ANYONE ELSE ON
5012 03:26:15,562 –> 03:26:22,903 THE STAGE WANTS TO COMMENT AFTER
5013 03:26:22,636 –> 03:26:23,103 A
5014 03:26:22,969 –> 03:26:26,407 AJIT.
5015 03:26:23,169 –> 03:26:28,108
HE WANTED TO ASK IF ANYBODY
5016 03:26:26,473 –> 03:26:32,346 ELSE ON THE TABLE WANTS TO
5017 03:26:28,175 –> 03:26:36,116 COMMENT ON.
5018 03:26:32,413 –> 03:26:38,152
AS AJIT SAID, LOTS OF PEOPLE
5019 03:26:36,182 –> 03:26:40,554 BUY INSURANCE AGAINST THE
5020 03:26:38,219 –> 03:26:42,589 OLYMPICS BEING CANCELED OR THE
5021 03:26:40,621 –> 03:26:45,592 UNITED STATES NO PARTICIPATING.
5022 03:26:42,656 –> 03:26:47,294 YOU THINK OF ALL SORTS OF RISK.
5023 03:26:45,659 –> 03:26:50,998 THEY HAVE AD CAMPAIGNS –
5024 03:26:47,361 –> 03:26:52,099 THERE’S A LOT OF CANCELLATION
5025 03:26:51,065 –> 03:26:54,969 INSURANCE, AND IT WAS PROBABLY
5026 03:26:52,165 –> 03:26:57,872 UNDER PRICED THE IMPLICIT PART
5027 03:26:55,035 –> 03:27:01,475 OF THAT PREMIUM THAT WAS
5028 03:26:57,938 –> 03:27:03,610 ATTRIBUTABLE TO A PANDEMIC RESK.
5029 03:27:01,542 –> 03:27:06,280 BILL GATES GAVE A TERRIFIC TALK
5030 03:27:03,677 –> 03:27:09,316 AND TED FIVE OR SINGS YEARS AGO
5031 03:27:06,347 –> 03:27:10,584 AND PEOPLE IGNORED IT AND IT’S
5032 03:27:09,383 –> 03:27:12,319 VERY INTERESTING.
5033 03:27:10,651 –> 03:27:14,488 THIS ISN’T A WORST CASE WHAT
5034 03:27:12,386 –> 03:27:18,358 WE’VE SEEN AND YET IT’S
5035 03:27:14,555 –> 03:27:24,298 STAGGERING MANY TERMS OF WHAT
5036 03:27:18,425 –> 03:27:30,737 HAS HAPPENED AND PEOPLE THAT
5037 03:27:24,365 –> 03:27:32,239 BOTH INSURANCE THAT – THEY MAY
5038 03:27:30,804 –> 03:27:34,575 HAVE THOUGHT OUT SOMETIMES THEY
5039 03:27:32,306 –> 03:27:37,044 WERE COVERING THINGS THEY DIDN’T
5040 03:27:34,642 –> 03:27:38,211 INTEND TOP COVER AND MAYBE
5041 03:27:37,111 –> 03:27:40,981 INSURANCE P DIDN’T THINK THEY
5042 03:27:38,278 –> 03:27:43,350 WERE BUYING BUT NEVERTHELESS
5043 03:27:41,048 –> 03:27:45,486 AFTER THE FACT IS THEY GET
5044 03:27:43,417 –> 03:27:47,154 INSLEPTIVE IN COMING AFTER THEM.
5045 03:27:45,553 –> 03:27:47,855 THERE ARE CERTAIN RISKS THAT ARE
5046 03:27:47,221 –> 03:27:49,590 TOO BIG.
5047 03:27:47,921 –> 03:27:51,258 THE NUKE RISK, FOR EXAMPLE.
5048 03:27:49,657 –> 03:27:53,260 THE FEDERAL GOVERNMENT IS VERY
5049 03:27:51,324 –> 03:27:56,330 EARLY ON RECOGNIZING THAT
5050 03:27:53,327 –> 03:27:58,665 PRIVATE INSURANCE INDUSTRY, THEY
5051 03:27:56,397 –> 03:28:00,668 CAN’T HANDLE A – THE RISK
5052 03:27:58,732 –> 03:28:01,735 INVOLVED IN – THE FINANCIAL
5053 03:28:00,734 –> 03:28:04,204 RISK THAT WOULD BE INVOLVED IN
5054 03:28:01,802 –> 03:28:07,941 TERMS OF A MASSIVE NUCLEAR
5055 03:28:04,270 –> 03:28:11,712 STRIKE OR SOMETHING LIKE THAT.
5056 03:28:08,008 –> 03:28:14,982 SO IT’S – PANDEMICS, THE
5057 03:28:11,778 –> 03:28:16,850 WORDING WILL BE MUCH MORE
5058 03:28:15,049 –> 03:28:19,186 CAREFUL IN FUTURE POLICIES ON
5059 03:28:16,917 –> 03:28:19,953 TRYING TO DIVIDE IT VERY
5060 03:28:19,253 –> 03:28:21,288 PRECISELY.
5061 03:28:20,020 –> 03:28:23,457 INCIDENTALLY IN THE WAY THE
5062 03:28:21,355 –> 03:28:25,392 CASES HAVE COME SO FAR, IN THE
5063 03:28:23,523 –> 03:28:27,528 UNITED KINGDOM – I THINK THERE
5064 03:28:25,459 –> 03:28:30,797 WAS ONE PARTICULARLY INSURER –
5065 03:28:27,594 –> 03:28:33,066 THE CASES ARE COMING DOWN MUCH
5066 03:28:30,864 –> 03:28:35,002 TOUGHER ON THE INSURERS, THE
5067 03:28:33,133 –> 03:28:37,037 UNITED STATES, I MEAN, THE
5068 03:28:35,069 –> 03:28:37,337 POLICIES WERE WRITTEN
5069 03:28:37,104 –> 03:28:39,373 DIFFERENTLY.
5070 03:28:37,404 –> 03:28:41,475 YOU DON’T GET INSURANCE ON
5071 03:28:39,439 –> 03:28:43,010 SOMETHING YOU DON’T BUY AGAINST.
5072 03:28:41,542 –> 03:28:46,080 GENERALLY THE COURT DECISIONS
5073 03:28:43,077 –> 03:28:47,648 HAVE COME DOWN FAVORABLE TO THE
5074 03:28:46,146 –> 03:28:49,549 INSURERS AND AT BERKSHIRE IT
5075 03:28:47,714 –> 03:28:55,155 HAPPENS THAT WE’RE NOT A BIG
5076 03:28:49,616 –> 03:28:57,891 PLAYER BRKS BUT THAT’S IN
5077 03:28:55,222 –> 03:28:59,927 COMMERCIAL MOLDABLE MIGHT BE
5078 03:28:57,958 –> 03:29:01,061 WHERE – IT’S NOT A HUGE FACTOR
5079 03:28:59,993 –> 03:29:04,131 FOR BERKSHIRE.
5080 03:29:01,128 –> 03:29:07,067
THIS IS FROM MARTIN DEFINE
5081 03:29:04,197 –> 03:29:08,936 AND ASKED AJIT AND WARREN WHAT’S
5082 03:29:07,134 –> 03:29:11,805 YOUR BEST ESTIMATE OF THE
5083 03:29:09,003 –> 03:29:12,105 INSURANCE EXPOSURE FROM THE
5084 03:29:11,872 –> 03:29:14,308 PANDEMIC?
5085 03:29:12,172 –> 03:29:15,643
WELL, IN TERMS OF RESERVES
5086 03:29:14,374 –> 03:29:17,511 STARTING FROM LAST YEAR TO THE
5087 03:29:15,709 –> 03:29:20,347 END OF THE FIRST QUARTER OF THIS
5088 03:29:17,578 –> 03:29:21,748 YEAR, WE HAVE PUT UP A BILLION
5089 03:29:20,414 –> 03:29:23,751 SIX IN CHANGE.
5090 03:29:21,815 –> 03:29:25,552 WHAT THAT DOESN’T TAKE INTO
5091 03:29:23,817 –> 03:29:28,455 ACCOUNT IS SOME OF THE FREQUENCY
5092 03:29:25,619 –> 03:29:30,290 BENEFIT BECAUSE OF COVID-19 THAT
5093 03:29:28,522 –> 03:29:32,893 RESULTS BECAUSE OF FEWER
5094 03:29:30,356 –> 03:29:34,394 ACCIDENTS AND GEICO HAS HAD A
5095 03:29:32,959 –> 03:29:36,830 HUGE TAIL WIND BECAUSE OF THAT.
5096 03:29:34,461 –> 03:29:39,232 IN TERMS OF WHAT THE INSURANCE
5097 03:29:36,896 –> 03:29:41,001 OPERATIONS COLLECTIVELY ARE
5098 03:29:39,299 –> 03:29:43,337 GOING TO BE WRITING CHECKS FOR,
5099 03:29:41,067 –> 03:29:44,972 THAT NUMBER AS OF NOW IS ABOUT A
5100 03:29:43,404 –> 03:29:47,341 BEING SIX.
5101 03:29:45,039 –> 03:29:47,808 MY QUESTIONS IS IT WILL PROBABLY
5102 03:29:47,408 –> 03:29:49,677 GROW.
5103 03:29:47,875 –> 03:29:51,979 IF YOU LOOK UPON IT – THE
5104 03:29:49,743 –> 03:29:52,246 INDUSTRY AS A WHOLE, WE
5105 03:29:52,046 –> 03:29:54,615 RESERVED.
5106 03:29:52,313 –> 03:29:58,452 THE ASTRO AS A WHOLE HAS RESCHED
5107 03:29:54,682 –> 03:29:59,620 ABOUT 25 TO $30 BILLION FOR 19
5108 03:29:58,519 –> 03:30:02,122 AS OF NOW.
5109 03:29:59,687 –> 03:30:03,823 IF YOU BELIEVE THE PUNDITS THEY
5110 03:30:02,189 –> 03:30:06,059 WILL TELL YOU THAT NUMBER IS
5111 03:30:03,890 –> 03:30:06,393 PROBABLY CLOSER TO A HUNDRED
5112 03:30:06,126 –> 03:30:09,830 BILLION.
5113 03:30:06,460 –> 03:30:12,666 THERE’S ABOUT A HUNDRED, 175
5114 03:30:09,896 –> 03:30:15,636 LOSSES THAT NEED TO FLOW
5115 03:30:12,733 –> 03:30:15,936 THROUGH, INSURANCE, INCOME
5116 03:30:15,703 –> 03:30:18,905 STATEMENT.
5117 03:30:16,003 –> 03:30:21,375 THE FAVOR OF 1.6 WE HAVE AS OF
5118 03:30:18,972 –> 03:30:23,477 NOW IS GOING TO BE A LOT, LOT
5119 03:30:21,442 –> 03:30:24,211 HIGHER BUT IT’S NOT SOMETHING WE
5120 03:30:23,544 –> 03:30:26,113 CAN’T MANAGE.
5121 03:30:24,278 –> 03:30:26,480
WE WILL NOT BE IN THE TOP
5122 03:30:26,179 –> 03:30:27,914 FIVE –
5123 03:30:26,546 –> 03:30:30,484
RIGHT.
5124 03:30:27,981 –> 03:30:34,755
– PAIRS OF INSURANCE CLAIMS,
5125 03:30:30,551 –> 03:30:38,158 EVEN THOUGH WE’RE – AND IT’S –
5126 03:30:34,822 –> 03:30:44,431 WE WRITE A MUCH SMALLER AMOUNTED
5127 03:30:38,225 –> 03:30:44,931 OF BOTH LIFE INSURANCE AND
5128 03:30:44,498 –> 03:30:48,001 ANNUITIES.
5129 03:30:44,998 –> 03:30:48,402 WE HAVE MORE LIFE INSURANCE
5130 03:30:48,068 –> 03:30:50,404 CRIMES.
5131 03:30:48,469 –> 03:30:51,271 MORE PEOPLE WOULD HAVE DIED THAT
5132 03:30:50,471 –> 03:30:52,639 OTHERWISE WOULD HAVE GOT
5133 03:30:51,337 –> 03:30:55,442 PAYMENTS UNDER ANNUITIES.
5134 03:30:52,706 –> 03:30:57,611 IT CUTS A LOT OF WASTE.
5135 03:30:55,509 –> 03:31:01,682 IT’S A – ONE OF THE GREAT HUMAN
5136 03:30:57,678 –> 03:31:04,084 TAFRS OF ALL TIME BUT IS NOT –
5137 03:31:01,749 –> 03:31:05,452 THAT IS BEING INSURANCE – IF
5138 03:31:04,151 –> 03:31:08,021 THE INSURANCE INDUSTRY THINK
5139 03:31:05,519 –> 03:31:10,224 THEY’RE GOING TO LOSE A HUNDRED
5140 03:31:08,088 –> 03:31:11,792 BILLION DOLLARS, THE HUNDRED
5141 03:31:10,290 –> 03:31:12,426 BILLION OUGHT TO BE ON THEIR
5142 03:31:11,858 –> 03:31:16,029 BOOKS NOW.
5143 03:31:12,493 –> 03:31:18,464 YOU’VE GOT A LIABILITY, AND OUR
5144 03:31:16,096 –> 03:31:21,468 GOAL IS NOT – OUR GOAL IS TO
5145 03:31:18,531 –> 03:31:25,438 HAVE – PUT UP THE LIABILITY
5146 03:31:21,535 –> 03:31:28,575 WHEN WE THINK IT’S HAPPENED AND
5147 03:31:25,505 –> 03:31:30,410 THEN IF – WE SHOULD NOT BE AT A
5148 03:31:28,642 –> 03:31:32,378 BILLION SIX, I WOULD SAY THIS.
5149 03:31:30,477 –> 03:31:34,281 IF WE REALLY THINK WE’RE GOING
5150 03:31:32,445 –> 03:31:38,218 TO HAVE SOME PROPORTIONAL SHARE
5151 03:31:34,347 –> 03:31:41,922 OF A HUNDRED BILLION, BUT –
5152 03:31:38,285 –> 03:31:44,124 WELL, THAT’S ENOUGH SAID ON
5153 03:31:41,989 –> 03:31:46,493 THAT.
5154 03:31:44,191 –> 03:31:46,927
FOR GREG AND WARREN AND
5155 03:31:46,560 –> 03:31:49,296 CHARLIE.
5156 03:31:46,994 –> 03:31:50,964 BLARE MILLER ASKS WHAT DOES THE
5157 03:31:49,362 –> 03:31:53,000 COMBINATION OF KANSAS CITY
5158 03:31:51,031 –> 03:31:55,435 SOUTHERN WITH EITHER CANADIAN
5159 03:31:53,066 –> 03:31:57,537 PACIFIC OF CANADIAN NATIONAL BE
5160 03:31:55,502 –> 03:31:59,206 TO SF IN TERMS OF COMPETITION
5161 03:31:57,604 –> 03:32:01,775 AND DO YOU THINK THE SYNERGIES
5162 03:31:59,272 –> 03:32:02,408 OF THE MERGER WILL JUSTIFY THE
5163 03:32:01,841 –> 03:32:03,210 MULTIPLE PAID?
5164 03:32:02,475 –> 03:32:07,414
SURE.
5165 03:32:03,277 –> 03:32:09,683 SO OBVIOUSLY, A TRANSACTION WE
5166 03:32:07,481 –> 03:32:11,284 FOLLOW CLOSELY WITH BOTH
5167 03:32:09,749 –> 03:32:14,321 CANADIAN NATIONAL AND CANADIAN
5168 03:32:11,351 –> 03:32:16,490 PACIFIC BIDDING TO PURCHASE
5169 03:32:14,387 –> 03:32:18,558 KANSAS CITY SOUTHERN, EITHER OF
5170 03:32:16,556 –> 03:32:20,393 THOSE COMPANIES ACQUIRING KANSAS
5171 03:32:18,625 –> 03:32:24,998 CITY SOUTHERN WILL HAVE AN
5172 03:32:20,460 –> 03:32:26,166 IMPACT ON BNSF.
5173 03:32:25,065 –> 03:32:29,002 WHAT THEY’RE BASICALLY PROPOSING
5174 03:32:26,233 –> 03:32:31,638 IS TO CREATE A NORTH-SOUTH
5175 03:32:29,068 –> 03:32:32,606 RAILWAY THAT GOES FROM CANADA
5176 03:32:31,705 –> 03:32:36,243 INTO MEXICO.
5177 03:32:32,673 –> 03:32:37,944 WE DO HAVE A STRONG PRESENCE IN
5178 03:32:36,310 –> 03:32:40,346 MEXICO, NOT AS STRONG AS SOME OF
5179 03:32:38,011 –> 03:32:43,517 OUR COMPETITION, BUT WE WOULD
5180 03:32:40,413 –> 03:32:45,986 FEEL COMPETITION THERE, SO WE’LL
5181 03:32:43,584 –> 03:32:46,353 FOLLOW THAT TRANSACTION VERY
5182 03:32:46,053 –> 03:32:49,022 CLOSELY.
5183 03:32:46,420 –> 03:32:50,290 AS IT GOES BEFORE THE SURFACE
5184 03:32:49,088 –> 03:32:53,260 TRANSPORTATION BOARD, THE
5185 03:32:50,357 –> 03:32:54,527 STANDARD THAT WILL BE APPLIED IS
5186 03:32:53,327 –> 03:32:57,264 COMPETITION HAS TO BE PROTECTED
5187 03:32:54,594 –> 03:32:59,065 OR ENHANCED, SO THAT’S OUR
5188 03:32:57,330 –> 03:33:01,368 OPPORTUNITY TO PROTECT OUR
5189 03:32:59,132 –> 03:33:02,135 FRANCHISE ON BEHALF OF OUR
5190 03:33:01,435 –> 03:33:04,004 CUSTOMERS.
5191 03:33:02,202 –> 03:33:06,139 SO WE MOVE IN A MOBILE BUSINESS
5192 03:33:04,070 –> 03:33:08,408 BOTH IN AND OUT OF THERE ON
5193 03:33:06,206 –> 03:33:09,810 BEHALF OF CERTAIN CUSTOMERS.
5194 03:33:08,475 –> 03:33:11,278 WE’LL WANT TO PROTECT THE RIGHTS
5195 03:33:09,877 –> 03:33:13,146 OF OUR CUSTOMERS THERE, SO WE’LL
5196 03:33:11,345 –> 03:33:14,548 BE ACTIVE IN THE APPROVAL
5197 03:33:13,213 –> 03:33:17,417 PROCESS, BUT THERE’S NO QUESTION
5198 03:33:14,615 –> 03:33:18,451 AT THE END IT IMPACTS OUR
5199 03:33:17,484 –> 03:33:19,286 FRANCHISE.
5200 03:33:18,518 –> 03:33:20,487 WARREN.
5201 03:33:19,353 –> 03:33:26,593
YEAH.
5202 03:33:20,554 –> 03:33:30,630 IT’S NOT HUGE, BUT IT AFFECTION
5203 03:33:26,659 –> 03:33:33,033 BOTH THE UNION PACIFIC AND BNSF
5204 03:33:30,697 –> 03:33:34,767 TO A SBHAUL DEGREE, PROBABLY
5205 03:33:33,099 –> 03:33:36,837 SMALL DEGREE BUT THAT’S NOT THE
5206 03:33:34,834 –> 03:33:37,504 WORRY OF THE SERVICE
5207 03:33:36,903 –> 03:33:41,241 TRANSPORTATION BOARD.
5208 03:33:37,571 –> 03:33:43,744 THEIR JOB IS TO DO WHAT’S BEST
5209 03:33:41,308 –> 03:33:50,850 FOR THE SCHIPPERS, AND IN TERMS
5210 03:33:43,810 –> 03:33:54,554 OF THE PRICE THAT’S BEING PAID,
5211 03:33:50,917 –> 03:33:56,323 YOU KNOW, LIKE I SAY, WHEN – IF
5212 03:33:54,621 –> 03:33:58,791 YOU CAN BORROW THE MONEY NOTHING
5213 03:33:56,390 –> 03:34:00,527 FOR NOTHING, IT WOULDN’T MAKE
5214 03:33:58,858 –> 03:34:02,195 MUCH DIFFERENCE TO PEOPLE AND
5215 03:34:00,593 –> 03:34:04,231 THIS WOULD NOT BE BEING PAID
5216 03:34:02,262 –> 03:34:04,531 UNDER A DIFFERENT INTEREST RATE
5217 03:34:04,298 –> 03:34:11,305 ENVIRONMENT.
5218 03:34:04,598 –> 03:34:13,640 IT’S VERY SIMPLE, BUT IT WOULD
5219 03:34:11,371 –> 03:34:14,441 MAKE – THERE’S NO MAGIC TO THE
5220 03:34:13,707 –> 03:34:18,645 KANSAS CITY SOUTHERN.
5221 03:34:14,507 –> 03:34:21,815 IT’S GOT A – I THINK – THE OLD
5222 03:34:18,712 –> 03:34:27,954 MEXICO ENDS IN 2047.
5223 03:34:21,882 –> 03:34:29,990 IT’S – IT WILL – THE NUMBER OF
5224 03:34:28,021 –> 03:34:32,759 CAR LOADS CARRIED, WHATEVER, IS
5225 03:34:30,056 –> 03:34:35,161 NOT GOING TO CHANGE THAT MUCH.
5226 03:34:32,826 –> 03:34:38,865 BUT IT IS KIND OF INTERESTING.
5227 03:34:35,228 –> 03:34:41,868 THERE’S ONLY – THERE’S TWO
5228 03:34:38,932 –> 03:34:43,503 MAJOR CANADIAN WHAT THEY CALL
5229 03:34:41,935 –> 03:34:46,640 CLASS ONE RAILROADS AND THERE’S
5230 03:34:43,569 –> 03:34:48,709 FIVE IN THE UNITED STATES, AND
5231 03:34:46,706 –> 03:34:52,512 THIS WILL RESULT IN ESSENTIALLY
5232 03:34:48,775 –> 03:34:53,747 THREE OF THE UNITS BEING
5233 03:34:52,579 –> 03:34:55,882 CANADIAN, FOUR BEING U.S., WHICH
5234 03:34:53,814 –> 03:34:58,986 IS NOT THE WAY IT NORMALLY –
5235 03:34:55,948 –> 03:35:00,020 THE WAY THE DEVELOPMENT OF THE
5236 03:34:59,052 –> 03:35:00,820 RAILROAD SYSTEM WOULD WORK IN
5237 03:35:00,087 –> 03:35:04,791 THE UNITED STATES.
5238 03:35:00,887 –> 03:35:10,163 BUT IT’S – WE’VE TALKED ABOUT
5239 03:35:04,858 –> 03:35:11,965 IT PLENTY AND CP OR EITHER
5240 03:35:10,229 –> 03:35:13,533 CANADIAN NATIONAL LIKELY TO
5241 03:35:12,031 –> 03:35:14,968 GET – I THINK THE
5242 03:35:13,600 –> 03:35:16,770 TRANSPORTATION BOARD WHO VOTED
5243 03:35:15,034 –> 03:35:18,739 THE OTHER DAY DIDN’T GET –
5244 03:35:16,836 –> 03:35:21,174
THEY VOTED ON AN INITIAL
5245 03:35:18,805 –> 03:35:22,976 TRUST STRUCTURE THAT THEY HAD TO
5246 03:35:21,241 –> 03:35:26,579 APPROVE FOR CANADIAN PACIFIC AND
5247 03:35:23,043 –> 03:35:27,713 THAT WAS A 4-1 VOTE, AS YOU
5248 03:35:26,646 –> 03:35:29,649 NOTED, WARREN.
5249 03:35:27,780 –> 03:35:31,852
YEAH.
5250 03:35:29,716 –> 03:35:33,887 NORMALLY RAILROAD DEALS ARE A
5251 03:35:31,918 –> 03:35:35,188 VERY LONG – TAKES A LONG TIME
5252 03:35:33,954 –> 03:35:40,260 FOR THEM TO EVALUATE.
5253 03:35:35,255 –> 03:35:40,894 IN THIS CASE I THINK THEY HAVE
5254 03:35:40,326 –> 03:35:43,663 TWO OPPOSING TRUST PROPOSALS AND
5255 03:35:40,960 –> 03:35:45,565 IN EFFECT, BY MAKING A – IF
5256 03:35:43,730 –> 03:35:48,101 THEY MAKE A QUICK DECISION ON
5257 03:35:45,631 –> 03:35:51,605 WHICH TRUST PROPOSAL WILL THEY
5258 03:35:48,168 –> 03:35:52,439 ALLOW, I DON’T SAY THEY ALLOW
5259 03:35:51,671 –> 03:35:55,442 TWO PROPOSALS EXACTLY.
5260 03:35:52,506 –> 03:35:55,709 SO IT MAY BE A VERY ACCELERATED
5261 03:35:55,509 –> 03:35:56,276 DECISION.
5262 03:35:55,776 –> 03:35:57,778 I DON’T KNOW.
5263 03:35:56,343 –> 03:36:00,814 IT’S UP TO THE TRANSPORTATION
5264 03:35:57,844 –> 03:36:01,414 BOARD TO DO WHAT’S WEST FOR WHAT
5265 03:36:00,881 –> 03:36:04,985 THEIR OBLIGATION IS TO THE
5266 03:36:01,481 –> 03:36:06,853 COUNTRY TO DO.
5267 03:36:05,052 –> 03:36:07,287
THERE WAS A FOLLOW-UP
5268 03:36:06,920 –> 03:36:07,821 QUESTION –
5269 03:36:07,353 –> 03:36:09,589
SURE.
5270 03:36:07,888 –> 03:36:10,991
DO YOU THINK THE VALUATION
5271 03:36:09,656 –> 03:36:15,028 THAT THEY’RE PAYING IS WORTH IT?
5272 03:36:11,058 –> 03:36:17,797
WELL, I – WE HAVE – IN A
5273 03:36:15,095 –> 03:36:20,633 VERY, VERY MILD WAY.
5274 03:36:17,864 –> 03:36:21,868 EVERYBODY’S KIND OF PLAYED DEALS
5275 03:36:20,700 –> 03:36:24,604 WITH DIFFERENT RAILROADS EVER
5276 03:36:21,934 –> 03:36:26,539 SINGS I’VE BEEN IN THE RAILROAD
5277 03:36:24,671 –> 03:36:27,440 BUSINESS, SO – WE’VE TALKED
5278 03:36:26,606 –> 03:36:36,116 ABOUT IT.
5279 03:36:27,507 –> 03:36:42,322 ONE CP, WHEN – HARRISON CAME
5280 03:36:36,182 –> 03:36:46,893 AFTER – WAS IT C.P. KIND OF LED
5281 03:36:42,389 –> 03:36:49,329 THE WAY WE LOOKED AT BUYING CP.
5282 03:36:46,960 –> 03:36:53,133 EVERYBODY LOOKS AT EVERYTHING
5283 03:36:49,395 –> 03:36:57,370 AND WE WOULD NOT PAY THIS PRICE
5284 03:36:53,199 –> 03:37:00,507 AND APPLIES FOR A PRICE OF BNSF
5285 03:36:57,437 –> 03:37:09,115 THAN WHAT THE UP IS SELLING FOR.
5286 03:37:00,574 –> 03:37:09,749 BUT IT’S KIND OF PLAIN MOPLAY
5287 03:37:09,182 –> 03:37:13,353 MONEY.
5288 03:37:09,816 –> 03:37:13,753 CP AND CN, THERE’S ONLY ONE KC
5289 03:37:13,420 –> 03:37:15,455 SOUTHERN.
5290 03:37:13,820 –> 03:37:18,491 THEY’RE NOT GOING TO BUY US,
5291 03:37:15,522 –> 03:37:20,060 THEY’RE NOT GOING TO BUY THE
5292 03:37:18,557 –> 03:37:22,295 U.P. AND THE JUICES FLOW AND THE
5293 03:37:20,127 –> 03:37:23,997 PRICES GO UP –
5294 03:37:22,362 –> 03:37:25,498
HANDLE SOMEBODY ELSE’S MONEY.
5295 03:37:24,064 –> 03:37:27,200
SOMEBODY ELSE’S MONEY AND
5296 03:37:25,565 –> 03:37:30,370 YOU’RE GOING TO RETIRE IN FIVE
5297 03:37:27,266 –> 03:37:32,606 OR TEN YEARS AND PEOPLE WON’T
5298 03:37:30,436 –> 03:37:34,474 REMEMBER WHAT YOU PAID BUT THE
5299 03:37:32,672 –> 03:37:36,943 INVESTMENT BANKERS ARE CHEERING
5300 03:37:34,540 –> 03:37:38,378 YOU ON AT EVERY MOVE.
5301 03:37:37,010 –> 03:37:40,914 THEY’RE MOVING THE FIGURES
5302 03:37:38,445 –> 03:37:43,683 AROUND, THE SPREADSHEETS ARE OUT
5303 03:37:40,981 –> 03:37:45,986 AND THE THINGS ARE FLOWING FROM.
5304 03:37:43,750 –> 03:37:49,823
THIS QUESTION COMES FROM
5305 03:37:46,052 –> 03:37:52,592 ASHER HAFT IN BROOKLYN, WHO
5306 03:37:49,890 –> 03:37:54,160 SAYS – HE’S BEEN A SHAREHOLDER
5307 03:37:52,658 –> 03:37:57,097 SINCE 2016.
5308 03:37:54,227 –> 03:37:59,799 SAYS THAT HE APPRECIATES YOUR
5309 03:37:57,164 –> 03:38:02,368 HONESTY AND CANDIDNESS IN
5310 03:37:59,865 –> 03:38:02,969 EXPLAINING COSTLY ERRORS YOU
5311 03:38:02,435 –> 03:38:06,239 MADE.
5312 03:38:03,036 –> 03:38:08,208 YOU MADE A MISTAKE IN 2016 WHEN
5313 03:38:06,305 –> 03:38:11,311 AVERAGE AMOUNT OF FUTURE
5314 03:38:08,275 –> 03:38:12,345 EARNINGS WHICH PAID BERKSHIRE IN
5315 03:38:11,378 –> 03:38:14,180 ACQUIRING ITS.
5316 03:38:12,412 –> 03:38:16,783 THEY DECLINED IN 2020 BECAUSE OF
5317 03:38:14,247 –> 03:38:18,151 THE PANDEMIC AND THE EFFECT ON
5318 03:38:16,850 –> 03:38:19,853 AIRLINE AND TRAVEL INDUSTRY.
5319 03:38:18,218 –> 03:38:22,088 WHAT CALCULATIONS COULD YOU HAVE
5320 03:38:19,920 –> 03:38:24,724 MADE IN 2016 THAT MIGHT HAVE
5321 03:38:22,154 –> 03:38:26,593 ALTERED YOUR DECISION TO HAVE IT
5322 03:38:24,791 –> 03:38:29,329 AND ARE THE PROBLEMS THEY’RE
5323 03:38:26,659 –> 03:38:29,662 CURRENTLY FACING LARGER THAN THE
5324 03:38:29,396 –> 03:38:31,431 PANDEMIC.
5325 03:38:29,729 –> 03:38:31,664
BERKSHIRE DIDN’T MAKE THE
5326 03:38:31,498 –> 03:38:33,867 MISTAKE.
5327 03:38:31,731 –> 03:38:35,068 I MADE THE MISTAKE.
5328 03:38:33,934 –> 03:38:37,337 THE – NO.
5329 03:38:35,135 –> 03:38:40,039 I – ANYTIME WE LOOK AT BUYING A
5330 03:38:37,404 –> 03:38:41,508 BUSINESS, WE’RE EVALUATING THE
5331 03:38:40,106 –> 03:38:42,976 STRENGTH OF THE BUSINESS, THE
5332 03:38:41,574 –> 03:38:44,511 PRICE WE HAVE TO PAY, THE
5333 03:38:43,042 –> 03:38:46,179 MANAGEMENT WE GET AND EVERYTHING
5334 03:38:44,578 –> 03:38:50,050 AND WE DIDN’T MAKE A MISTAKE ON
5335 03:38:46,245 –> 03:38:58,258 THE MANAGEMENT, BUT IN TERMS OF
5336 03:38:50,116 –> 03:39:00,693 THE EARNING POWER ON AVERAGE AND
5337 03:38:58,325 –> 03:39:03,229 WHEN BOEING HAS TROUBLE WITH
5338 03:39:00,760 –> 03:39:05,398 MAXWELL, THAT’S A PROBABILITY.
5339 03:39:03,296 –> 03:39:07,867 HIM IN ANY CUSTOMERS HAVE BIG –
5340 03:39:05,465 –> 03:39:10,236 ALL KINDS OF THINGS COULD
5341 03:39:07,934 –> 03:39:13,039 HAPPEN, AND WE HAVE SEEN SOME OF
5342 03:39:10,303 –> 03:39:15,341 THOSE THINGS HAPPEN AND
5343 03:39:13,106 –> 03:39:17,010 THEREFORE, I PAID TOO MUCH IN
5344 03:39:15,408 –> 03:39:21,748 RELATION TO AVERAGE EARNINGS.
5345 03:39:17,077 –> 03:39:24,150 IT’S A TERRIFIC COMPANY AND, YOU
5346 03:39:21,815 –> 03:39:26,453 KNOW, IT’S – I’LL HAPPY WITH
5347 03:39:24,217 –> 03:39:31,457 THE MANAGEMENT AND EVERYTHING,
5348 03:39:26,519 –> 03:39:35,094 BUT G.E. DOESN’T
5349 03:39:31,524 –> 03:39:36,529 THEY GET INTO THE POWER
5350 03:39:35,161 –> 03:39:37,897 BUSINESS, A VARIETY OF THINGS.
5351 03:39:36,596 –> 03:39:39,999 AND WE’RE IN THE BUSINESSES.
5352 03:39:37,964 –> 03:39:41,567 BUT WE DID NOT THINK THOSE
5353 03:39:40,066 –> 03:39:43,936 BUSINESSES WOULD NECESSARILY BE
5354 03:39:41,634 –> 03:39:46,105 IN SOMETHING CLOSE TO A
5355 03:39:44,003 –> 03:39:48,174 DEPRESSION WHEN OTHER BUSINESSES
5356 03:39:46,172 –> 03:39:49,943 THAT WE BOUGHT END UP SOMETIMES
5357 03:39:48,241 –> 03:39:51,511 DOING BETTER THAN WE THINK.
5358 03:39:50,010 –> 03:39:51,811 BUT WE’LL CONTINUE MAKING
5359 03:39:51,578 –> 03:39:55,048 MISTAKES.
5360 03:39:51,878 –> 03:39:56,249 I MEAN – AND I SHOULDN’T SAY WE
5361 03:39:55,115 –> 03:39:56,782 WILL.
5362 03:39:56,316 –> 03:40:01,587 I WILL.
5363 03:39:56,849 –> 03:40:04,523
THE OTHERS WILL HELP.
5364 03:40:01,654 –> 03:40:05,958
AND, WELL, YOU KNOW, WE’VE
5365 03:40:04,590 –> 03:40:08,528 GOT SOME WONDERFUL DEALS AND
5366 03:40:06,025 –> 03:40:11,464 SOME TERRIBLE DEALS.
5367 03:40:08,595 –> 03:40:15,635 AND THE NICE THING ABOUT IT IS,
5368 03:40:11,531 –> 03:40:17,303 AS I POINTED OUT, THIS DOESN’T
5369 03:40:15,702 –> 03:40:19,772 REALLY APPLY IN THE CASE OF
5370 03:40:17,370 –> 03:40:21,774 PRECISION, BUT WHEN WE’RE
5371 03:40:19,839 –> 03:40:23,242 DISAPPOINTED IN THE BUSINESS IT
5372 03:40:21,841 –> 03:40:24,210 USUALLY BECOMES A SMALLER AND
5373 03:40:23,309 –> 03:40:26,479 SMALLER PERCENTAGE OF OUR
5374 03:40:24,277 –> 03:40:28,347 BUSINESS JUST BY THE NATURE OF
5375 03:40:26,546 –> 03:40:29,048 THINGS BECAUSE IT ISN’T GOING
5376 03:40:28,414 –> 03:40:32,218 ANY PLACE.
5377 03:40:29,115 –> 03:40:34,020 WHEN WE GET A SUCCESSFUL
5378 03:40:32,285 –> 03:40:36,289 BUSINESS, LIKE A GEICO –
5379 03:40:34,086 –> 03:40:37,723 THEY’RE DOING 15 TIME AS MUCH
5380 03:40:36,356 –> 03:40:38,958 BUSINESS AS WHEN WE BOUGHT
5381 03:40:37,790 –> 03:40:40,826 CONTROL OF THEM.
5382 03:40:39,025 –> 03:40:41,995 THEY’VE BECOME A MORE IMPORTANT
5383 03:40:40,893 –> 03:40:45,265 PART OF OUR MIX.
5384 03:40:42,062 –> 03:40:45,998 SO YOU REALLY GET JUST THROUGH
5385 03:40:45,331 –> 03:40:48,167 NATURAL FORCES YOU GET MORE OF
5386 03:40:46,065 –> 03:40:50,370 YOUR MONEY IN THINGS THAT HAVE
5387 03:40:48,234 –> 03:40:51,404 DEVELOPED MORE FAVORABLY THAN
5388 03:40:50,437 –> 03:40:53,572 YOU THOUGHT.
5389 03:40:51,471 –> 03:40:54,840 YOU ACTUALLY END UP GETTING A
5390 03:40:53,639 –> 03:40:55,808 GREATER CONCENTRATION IN THE
5391 03:40:54,907 –> 03:40:59,512 THINGS THAT WORK OUT.
5392 03:40:55,875 –> 03:41:00,580 AS CHARLIE WOULD SAY, IT’S NOT
5393 03:40:59,579 –> 03:41:05,351 LIKE HAVING CHILDREN.
5394 03:41:00,647 –> 03:41:05,618 THE BAD ONES CAUSE YOU MORE
5395 03:41:05,418 –> 03:41:06,919 PROBLEMS.
5396 03:41:05,685 –> 03:41:10,656 BUT IN THE CHILDREN OF
5397 03:41:06,986 –> 03:41:12,125 BUSINESSES, THE SMALL ONES KIND
5398 03:41:10,723 –> 03:41:16,662 OF – WE STARTED WITH THREE
5399 03:41:12,192 –> 03:41:19,231 BUSINESSES, CHARLIE AND I, AND
5400 03:41:16,729 –> 03:41:20,400 BERKSHIRE WAS TEXTILES, AND
5401 03:41:19,298 –> 03:41:21,934 DEPARTMENT STORE AND TRADING
5402 03:41:20,467 –> 03:41:23,469 STAMPS, BLUE CHIPS BUSINESS, AND
5403 03:41:22,001 –> 03:41:25,037 THOSE WERE THE THREE COMPANIES
5404 03:41:23,536 –> 03:41:26,539 WE PUT TOGETHER, AND ALL THREE
5405 03:41:25,104 –> 03:41:30,143 OF THE ORIGINAL BUSINESSES
5406 03:41:26,606 –> 03:41:32,545 FAILED, WHICH SORT OF GETS ME IN
5407 03:41:30,210 –> 03:41:34,080 TERMS OF PEOPLE THAT ARE WORRIED
5408 03:41:32,612 –> 03:41:37,717 ABOUT, DON’T WE KNOW THAT COAL
5409 03:41:34,147 –> 03:41:38,151 IS GOING TO BE PHASED OUT OVER
5410 03:41:37,784 –> 03:41:39,619 TIME?
5411 03:41:38,218 –> 03:41:42,322 OF COURSE WE KNOW THAT.
5412 03:41:39,686 –> 03:41:43,856 THAT DOESN’T MEAN WE’RE GOING TO
5413 03:41:42,388 –> 03:41:45,057 BE PHASED OUT OVER TIME.
5414 03:41:43,923 –> 03:41:46,159 EVERY BUSINESS HAS A LOT TO
5415 03:41:45,124 –> 03:41:47,627 THINK ABOUT THAT WAY.
5416 03:41:46,226 –> 03:41:48,728 THE BIGGEST DANGER, THEY HAVE
5417 03:41:47,694 –> 03:41:53,199 THAT SECTION IN THE PERSPECTIVES
5418 03:41:48,795 –> 03:41:54,100 CALLED – WHAT DO THEY CALL THAT
5419 03:41:53,266 –> 03:41:55,368 ABOUT CERTAIN –
5420 03:41:54,167 –> 03:41:57,036
RISK FACTORS?
5421 03:41:55,435 –> 03:41:59,972
RISK FACTORS, YEAH.
5422 03:41:57,103 –> 03:42:01,007 THE YOU BE IN ONE RISK FACTOR IS
5423 03:42:00,039 –> 03:42:02,408 THAT THIS BUSINESS GETS THE
5424 03:42:01,074 –> 03:42:05,544 WRONG MANAGEMENT.
5425 03:42:02,475 –> 03:42:10,416 AND GET A GUY OR A WOMAN IN
5426 03:42:05,611 –> 03:42:11,784 CHARGE OF IT THAT THEY ARE
5427 03:42:10,483 –> 03:42:12,017 PERSONABLE, THE DIRECTORS LIKE
5428 03:42:11,851 –> 03:42:13,453 THEM.
5429 03:42:12,084 –> 03:42:15,288 THEY DON’T KNOW WHAT THEY’RE
5430 03:42:13,520 –> 03:42:16,188 DOING, BUT THEY LIKE TO PUT ON
5431 03:42:15,355 –> 03:42:18,491 AN APPEARANCE.
5432 03:42:16,255 –> 03:42:18,724 THAT’S THE SINGLE BIGGEST
5433 03:42:18,558 –> 03:42:21,194 DANGER.
5434 03:42:18,791 –> 03:42:24,397 THEN THAT PERSON STAYS AND RUNS
5435 03:42:21,261 –> 03:42:26,399 IT AND STAYS IN THE TEXTILE OR
5436 03:42:24,464 –> 03:42:27,567 DEPARTMENT STORE BUSINESS.
5437 03:42:26,466 –> 03:42:30,503 AND IT EXPANDS.
5438 03:42:27,634 –> 03:42:32,338 I LOOKED AT A LOT OF BUSINESSES.
5439 03:42:30,570 –> 03:42:33,239 THAT’S WHAT’S CAUSED THE NUMBER
5440 03:42:32,405 –> 03:42:35,641 ONE PROBLEM.
5441 03:42:33,306 –> 03:42:37,376 IT ISN’T THE THING THAT THEY
5442 03:42:35,708 –> 03:42:38,678 LIST BECAUSE THE LAWYERS TELL
5443 03:42:37,443 –> 03:42:40,846 THEM TO LIST.
5444 03:42:38,745 –> 03:42:42,782
THIS QUESTION IS FOR BOTH
5445 03:42:40,913 –> 03:42:44,817 WARREN AND CHARLIE.
5446 03:42:42,849 –> 03:42:48,120 NOW THAT THE CRYPTO MARKET
5447 03:42:44,884 –> 03:42:49,622 OVERALL IS VALUED AT
5448 03:42:48,187 –> 03:42:52,291 $2 TRILLION, DO YOU STILL C
5449 03:42:49,688 –> 03:42:52,925 CRYPTOS AS WORTHLESS ARTIFICIAL
5450 03:42:52,358 –> 03:42:54,660 GOLD?
5451 03:42:52,992 –> 03:42:57,497
I KNEW THERE WOULD BE A
5452 03:42:54,727 –> 03:43:00,433 QUESTION ON BITCOIN.
5453 03:42:57,564 –> 03:43:02,635 I THOUGHT TO MYSELF, WELL, I’VE
5454 03:43:00,500 –> 03:43:06,305 WATCHED THESE QUESTIONS DODGE
5455 03:43:02,702 –> 03:43:08,140 POLITICIANS ALL THE TIME.
5456 03:43:06,372 –> 03:43:13,646 THE TRUTH IS, I’M GOING DODGE
5457 03:43:08,207 –> 03:43:15,147 THAT QUESTION, BECAUSE WE’VE
5458 03:43:13,713 –> 03:43:16,516 PROBABLY GOT HUNDREDS OF
5459 03:43:15,214 –> 03:43:19,118 THOUSAND OF PEOPLE WATCHING THAT
5460 03:43:16,583 –> 03:43:21,487 THAT OWN BITCOIN, AND TWO PEOPLE
5461 03:43:19,185 –> 03:43:25,558 THAT ARE SHORT.
5462 03:43:21,554 –> 03:43:29,695 WE’VE GOT A CHOICE OF MAKING
5463 03:43:25,625 –> 03:43:31,097 THOUSANDS OF PEOPLE MAD AT US OR
5464 03:43:29,762 –> 03:43:33,432 MAKING TWO PEOPLE HAPPY.
5465 03:43:31,164 –> 03:43:35,734 I THOUGHT ABOUT IT, WE HAD A
5466 03:43:33,499 –> 03:43:37,203 GOVERNOR ONE TIME IN NEBRASKA, A
5467 03:43:35,801 –> 03:43:38,871 LONG TIME AGO, BUT HE WOULD GET
5468 03:43:37,270 –> 03:43:40,640 A TOUGH QUESTION – WHAT DO YOU
5469 03:43:38,938 –> 03:43:43,075 THINK ABOUT PROPERTY TAXES?
5470 03:43:40,707 –> 03:43:43,643 OR WHAT SHOULD WE DO ABOUT
5471 03:43:43,142 –> 03:43:45,445 SCHOOLS?
5472 03:43:43,710 –> 03:43:46,846 AND HE’D LOOK RIGHT AT THE
5473 03:43:45,511 –> 03:43:48,047 PERSON AND SAY, I’M ALL RIGHT ON
5474 03:43:46,913 –> 03:43:49,682 THAT ONE.
5475 03:43:48,114 –> 03:43:51,484 AND HE’D JUST WALK OFF.
5476 03:43:49,749 –> 03:43:57,323 WELL, I’M ALL RIGHT ON THAT ONE.
5477 03:43:51,551 –> 03:44:01,160 WE’LL SEE HOW CHARLIE IS.
5478 03:43:57,390 –> 03:44:03,629
WELL, THOSE WHO KNOW ME WELL
5479 03:44:01,227 –> 03:44:05,798 ARE JUST WAVING THIS RED FLAG AT
5480 03:44:03,696 –> 03:44:10,803 THE BULL.
5481 03:44:05,865 –> 03:44:13,472 OF COURSE I HATE THE BITCOIN
5482 03:44:10,870 –> 03:44:16,542 SUCCESS, AND I DON’T WELCOME A
5483 03:44:13,539 –> 03:44:19,345 CURRENCY THAT’S SO USEFUL TO
5484 03:44:16,609 –> 03:44:19,612 KIDNAPPERS AND EXTORTIONISTS AND
5485 03:44:19,412 –> 03:44:21,680 SO FORTH.
5486 03:44:19,679 –> 03:44:23,249 NOR DO I LIKE SHUFFLING OUT A
5487 03:44:21,747 –> 03:44:24,850 FEW EXTRA BILLIONS AND BILLIONS
5488 03:44:23,316 –> 03:44:27,453 AND BILLIONS OF DOLLARS TO
5489 03:44:24,917 –> 03:44:31,224 SOMEBODY WHO JUST INVENTED A NEW
5490 03:44:27,520 –> 03:44:33,125 FINANCIAL PRODUCT OUT OF THIN
5491 03:44:31,291 –> 03:44:35,928 AIR.
5492 03:44:33,192 –> 03:44:37,129 SO, I THINK I SHOULD SAY
5493 03:44:35,995 –> 03:44:38,998 MODESTLY THAT THE WHOLE
5494 03:44:37,196 –> 03:44:39,565 DEVELOPMENT IS DISGUSTING AND
5495 03:44:39,065 –> 03:44:42,335 CONTRARY TO THE INTEREST OF
5496 03:44:39,632 –> 03:44:43,002 CIVILIZATION.
5497 03:44:42,402 –> 03:44:45,972 AND I’LL LEAVE THE CRITICISM TO
5498 03:44:43,069 –> 03:44:53,379 OTHERS.
5499 03:44:46,039 –> 03:44:56,482
I’M ALL RIGHT ON THAT ONE.
5500 03:44:53,446 –> 03:44:58,851
THE NEXT SERIES OF QUESTIONS
5501 03:44:56,549 –> 03:45:02,121 ARE FROM JAMES HERNANDEZ.
5502 03:44:58,918 –> 03:45:04,790 HE HAS TWO QUESTIONS.
5503 03:45:02,188 –> 03:45:05,758 ONE FOR AJIT.
5504 03:45:04,857 –> 03:45:08,494 ONE FOR GREG.
5505 03:45:05,825 –> 03:45:11,130 THEY BOTH CONCERN ELON MOSQUE.
5506 03:45:08,561 –> 03:45:12,631 ELON MUSK STATED BERKSHIRE
5507 03:45:11,197 –> 03:45:14,467 HATHAWAY’S ENERGY PROPOSAL FOR
5508 03:45:12,698 –> 03:45:15,968 TEXAS IS WRONG.
5509 03:45:14,534 –> 03:45:17,903 INSTEAD, MR. MUSK ARGUES THAT
5510 03:45:16,035 –> 03:45:20,539 LOAD BALANCING USING BATTERY
5511 03:45:17,970 –> 03:45:20,940 STORAGE IS THE APPROPRIATE
5512 03:45:20,606 –> 03:45:22,341 COURSE OF ACTION.
5513 03:45:21,007 –> 03:45:24,410 CAN YOU EXPLAIN WHY THE BHE
5514 03:45:22,408 –> 03:45:25,678 PROPOSAL IS THE BETTER COURSE OF
5515 03:45:24,476 –> 03:45:27,079 ACTION FOR GOVERNOR ABBOTT IN
5516 03:45:25,744 –> 03:45:29,148 THE STATE OF TEXAS?
5517 03:45:27,146 –> 03:45:31,083 SPECIFICALLY, WHAT AMOUNT OF
5518 03:45:29,215 –> 03:45:32,518 SAVINGS CAN THE CITIZENS EXPECT
5519 03:45:31,150 –> 03:45:33,452 ABOVE AND BEYOND WHAT MR. MUSK
5520 03:45:32,585 –> 03:45:36,489 IS PROPOSING?
5521 03:45:33,519 –> 03:45:37,924
SURE.
5522 03:45:36,556 –> 03:45:39,258 OBVIOUSLY THERE’S THE VERY
5523 03:45:37,991 –> 03:45:42,294 UNFORTUNATE EVENT IN TEXAS IN
5524 03:45:39,325 –> 03:45:42,561 FEBRUARY AND IT BASICALLY LASTED
5525 03:45:42,361 –> 03:45:43,496 FOUR DAYS.
5526 03:45:42,628 –> 03:45:45,064 MANY LIVES WERE LOST.
5527 03:45:43,563 –> 03:45:45,364 THE ECONOMIC DAMAGE WAS
5528 03:45:45,131 –> 03:45:46,699 SIGNIFICANT.
5529 03:45:45,431 –> 03:45:52,838 TEXAS HAS HIGHLIGHTED THAT
5530 03:45:46,766 –> 03:45:54,106 ANYWHERE FROM 80 TO $130 BILLION
5531 03:45:52,905 –> 03:45:55,041 AND INCURRED LOSSES OVER THAT
5532 03:45:54,173 –> 03:45:57,176 PERIOD OF TIME.
5533 03:45:55,108 –> 03:45:59,712 I THINK WHEN YOU LOOK AT THE
5534 03:45:57,243 –> 03:46:01,847 POWER SECTOR IT FUNDAMENTALLY
5535 03:45:59,779 –> 03:46:04,050 LET THE CITIZENS DOWN.
5536 03:46:01,914 –> 03:46:04,417 IT DIDN’T PERFORM AS THEY
5537 03:46:04,116 –> 03:46:06,386 EXPECTED.
5538 03:46:04,484 –> 03:46:10,690 AND THEN WHEN IT DID PERFORM IT
5539 03:46:06,452 –> 03:46:12,658 WAS EXTREMELY EXPENSIVE.
5540 03:46:10,757 –> 03:46:15,728 THEY INCURRED BILLIONS AND
5541 03:46:12,725 –> 03:46:19,766 BILLIONS OF DOLLARS OF ENERGY
5542 03:46:15,795 –> 03:46:21,734 COSTS VERSUS A MULTIPLE OF
5543 03:46:19,832 –> 03:46:22,001 BASICALLY TEN TIMES WHAT THEY
5544 03:46:21,801 –> 03:46:24,637 PAID.
5545 03:46:22,068 –> 03:46:26,972 THEY PAID TEN TIMES IN ENERGY
5546 03:46:24,704 –> 03:46:29,075 COSTS OVER THOSE FOUR DAYS WHAT
5547 03:46:27,039 –> 03:46:32,111 THEY PAID IN THE PAST YEAR.
5548 03:46:29,142 –> 03:46:32,545 SO A VERY SUBSTANTIAL EVENT FOR
5549 03:46:32,177 –> 03:46:34,180 TEXAS.
5550 03:46:32,612 –> 03:46:36,882 WE’VE GONE TO TEXAS WITH WHAT WE
5551 03:46:34,247 –> 03:46:38,550 BELIEVE IS A GOOD SOLUTION.
5552 03:46:36,949 –> 03:46:42,321 WE SPENT A LOT OF TIME PULLING
5553 03:46:38,617 –> 03:46:44,490 IT TOGETHER, UNDERSTANDING THE
5554 03:46:42,388 –> 03:46:48,561 FUNDAMENTAL ISSUES AROUND IT.
5555 03:46:44,557 –> 03:46:49,195 AND OUR PROPOSAL IS BASED ON THE
5556 03:46:48,628 –> 03:46:53,198 FACT THAT THE HEALTH AND WELFARE
5557 03:46:49,262 –> 03:46:57,036 OF TEXANS WERE AT RISK, AND WE
5558 03:46:53,265 –> 03:46:58,437 NEEDED TO HAVE EFFECTIVELY AN
5559 03:46:57,103 –> 03:46:58,637 INSURANCE POLICY IN PLACE FOR
5560 03:46:58,504 –> 03:47:00,439 THEM.
5561 03:46:58,704 –> 03:47:02,408 THAT IF THEY NEEDED TO POWER ON
5562 03:47:00,506 –> 03:47:04,644 SHORT NOTICE, IT WOULD BE ABLE
5563 03:47:02,475 –> 03:47:07,046 TO BE DISPATCHED AND IT WOULD BE
5564 03:47:04,711 –> 03:47:10,616 THERE FOR THE FOUR DAYS WE’RE
5565 03:47:07,113 –> 03:47:11,183 PROPOSING IT COULD BE THERE FOR
5566 03:47:10,683 –> 03:47:14,486 SEVEN DAYS.
5567 03:47:11,250 –> 03:47:15,755 AND THE FUNDAMENTAL CONCEPT OF
5568 03:47:14,553 –> 03:47:17,590 OUR PROPOSAL HAS ALWAYS BEEN, IF
5569 03:47:15,822 –> 03:47:18,724 THERE’S A BETTER PROPOSAL THAT’S
5570 03:47:17,657 –> 03:47:20,759 BROUGHT FORWARD, WE’VE
5571 03:47:18,791 –> 03:47:21,460 ACCOMPLISHED OUR MISSION.
5572 03:47:20,826 –> 03:47:26,365 WE’VE JUST REALLY BEEN THERE
5573 03:47:21,527 –> 03:47:26,999 TO – IT’S THE BEST PROPOSAL OR
5574 03:47:26,432 –> 03:47:28,700 OPTION WE COULD COME UP WITH,
5575 03:47:27,066 –> 03:47:30,235 AND OBVIOUSLY WITH TEXAS OR ELON
5576 03:47:28,767 –> 03:47:32,204 OR SOMEBODY COMES UP WITH A
5577 03:47:30,302 –> 03:47:35,374 BETTER PROPOSITION, WE’VE ALWAYS
5578 03:47:32,271 –> 03:47:35,775 SAID, TEXAS, YOU SHOULD PURSUE
5579 03:47:35,441 –> 03:47:37,343 IT.
5580 03:47:35,842 –> 03:47:40,746 WE STRONGLY BELIEVE RIGHT NOW WE
5581 03:47:37,409 –> 03:47:41,613 HAVE WHAT REMAINS IS A VERY GOOD
5582 03:47:40,812 –> 03:47:44,083 PROPOSAL FOR TEXAS, AND IT WILL
5583 03:47:41,680 –> 03:47:44,550 CONTINUE TO BE DISCUSSED AND
5584 03:47:44,150 –> 03:47:46,585 EVALUATED.
5585 03:47:44,617 –> 03:47:49,321 THE BIG DIFFERENCE BETWEEN A
5586 03:47:46,652 –> 03:47:53,859 BATTERY PROPOSAL AND OUR
5587 03:47:49,388 –> 03:47:56,195 PROPOSAL IS THAT WE WILL HAVE
5588 03:47:53,926 –> 03:47:56,696 POWER THAT CAN BE GENERATED
5589 03:47:56,262 –> 03:47:57,697 CONTINUOUSLY FOR SEVEN
5590 03:47:56,762 –> 03:48:01,033 CONSISTENT DAYS.
5591 03:47:57,764 –> 03:48:01,667 WHERE IF YOU WENT TO A BATTERY
5592 03:48:01,100 –> 03:48:04,904 SOLUTION, YOU MAY RELEASE THAT
5593 03:48:01,734 –> 03:48:05,804 POWER THAT’S BEEN STORED FOR
5594 03:48:04,971 –> 03:48:07,372 FOUR HOURS, WITH YOU WE’RE
5595 03:48:05,871 –> 03:48:08,841 TALKING FOUR DAYS OF A PROBLEM,
5596 03:48:07,439 –> 03:48:10,676 NOT FOUR HOURS.
5597 03:48:08,908 –> 03:48:13,212 AND IT’S JUST A COMPLETELY
5598 03:48:10,743 –> 03:48:13,546 DIFFERENT COST EQUATION AND
5599 03:48:13,279 –> 03:48:15,914 SOLUTION.
5600 03:48:13,613 –> 03:48:17,750 SO VERY PROUD THAT OUR TEAM’S
5601 03:48:15,981 –> 03:48:19,585 BROUGHT FORWARD WHAT I THOUGHT
5602 03:48:17,817 –> 03:48:25,224 WAS A VERY UNIQUE SOLUTION.
5603 03:48:19,652 –> 03:48:26,192 WE WORKED HARD WITH OUR SU
5604 03:48:25,291 –> 03:48:28,394 SUPPLIERS AND PUT TOGETHER WHAT
5605 03:48:26,259 –> 03:48:30,529 WE BELIEVE IS A FIRM COST THAT
5606 03:48:28,461 –> 03:48:32,031 CAN ALSO BE DELIVERED BY
5607 03:48:30,596 –> 03:48:35,367 NOVEMBER OF ‘23.
5608 03:48:32,098 –> 03:48:35,567 SO AGAIN WE PUT A FIRM DATE ON
5609 03:48:35,434 –> 03:48:39,271 IT.
5610 03:48:35,634 –> 03:48:39,605 IT WON’T BE READY NEXT WINTER,
5611 03:48:39,338 –> 03:48:41,039 UNFORTUNATELY.
5612 03:48:39,671 –> 03:48:42,675 WON’T BE READY THIS SUMMER BUT
5613 03:48:41,106 –> 03:48:45,945 IT’S A VALUABLE SOLUTION AND ONE
5614 03:48:42,742 –> 03:48:46,945 THAT WE HOPE AT LEAST LEADS TO
5615 03:48:46,011 –> 03:48:47,780 THE RIGHT DISCUSSION AND THE
5616 03:48:47,012 –> 03:48:48,380 RIGHT LONG-TERM DISCUSSION FOR
5617 03:48:47,847 –> 03:48:49,582 THE STATE.
5618 03:48:48,447 –> 03:48:52,484
YEAH, AND WE’RE ALSO WILLING
5619 03:48:49,648 –> 03:48:55,020 TO PUT UP $4 BILLION THAT IF WE
5620 03:48:52,551 –> 03:48:57,289 DON’T DELIVER WHEN WE SAY WE’RE
5621 03:48:55,087 –> 03:49:02,628 GOING TO DELIVER, WE’LL PAY IT
5622 03:48:57,356 –> 03:49:05,430 AS A PENALTY, BASICALLY.
5623 03:49:02,695 –> 03:49:07,333 BUT, YOU KNOW, WE WENT TO
5624 03:49:05,497 –> 03:49:10,803 GENERAL ELECTRIC, SAID, HOW LONG
5625 03:49:07,400 –> 03:49:12,971 COULD WE GET TURBINES.
5626 03:49:10,870 –> 03:49:16,342 YOU KNOW, IF YOU’RE GOING TO BE
5627 03:49:13,038 –> 03:49:18,811 PREPARED FOR 2023, YOU HAVE TO
5628 03:49:16,409 –> 03:49:22,882 START AT A POINT FAIRLY SOON,
5629 03:49:18,878 –> 03:49:25,317 AND YOU HAVE INFLATION GOING ON,
5630 03:49:22,949 –> 03:49:27,052 AND KEY WAS NOT GOING THE CHANGE
5631 03:49:25,384 –> 03:49:28,720 THINGS IN A MONTH.
5632 03:49:27,119 –> 03:49:29,721 THEY HAD 100 PEOPLE WORKING ON
5633 03:49:28,787 –> 03:49:31,490 IT OR SOMETHING.
5634 03:49:29,788 –> 03:49:32,358
YEAH, THEY HAD HUNDREDS
5635 03:49:31,557 –> 03:49:34,493 WORKING ON IT.
5636 03:49:32,424 –> 03:49:35,727
AND GE IS COOPERATIVE.
5637 03:49:34,560 –> 03:49:37,696 BUT DOESN’T MEAN WE HAVE THE
5638 03:49:35,794 –> 03:49:38,296 BEST SOLUTION.
5639 03:49:37,763 –> 03:49:40,432 WE JUST KNOW WHAT WE CAN DO.
5640 03:49:38,363 –> 03:49:42,335 IF ANYBODY CAN DO IT FASTER,
5641 03:49:40,499 –> 03:49:45,037 THEY CAN DO IT CHEAPER,
5642 03:49:42,401 –> 03:49:48,006 WHATEVER, THAT’S TERRIFIC.
5643 03:49:45,104 –> 03:49:50,710 BUT THEY SHOULD HAVE SOMETHING
5644 03:49:48,073 –> 03:49:52,912 TO LOSE TIF THEY DON’T DO IT.
5645 03:49:50,776 –> 03:49:54,479 AND WE’LL BACK OUR PROMISE UP BY
5646 03:49:52,979 –> 03:49:57,183 $4 BILLION, AND WE WON’T HAVE
5647 03:49:54,546 –> 03:49:59,385 ANY RINKY DINK CLAUSES IN THERE
5648 03:49:57,249 –> 03:50:00,886 THAT IF THIS HAPPENSER THAT
5649 03:49:59,452 –> 03:50:02,855 HAPPENS, WE WON’T PAYMENT BUT WE
5650 03:50:00,953 –> 03:50:03,455 WON’T BE ABLE TO DO THAT AIER
5651 03:50:02,922 –> 03:50:06,091 FROM NOW.
5652 03:50:03,522 –> 03:50:07,759 WE’LL BE ABLE TO DO IT A YEAR
5653 03:50:06,158 –> 03:50:09,595 FROM NOW WITH THE COSTS WHAT
5654 03:50:07,826 –> 03:50:11,497 THEY ARE THEN.
5655 03:50:09,662 –> 03:50:11,797 TEXAS IS A TERRIFIC PLACE TO DO
5656 03:50:11,563 –> 03:50:14,800 BUSINESS.
5657 03:50:11,864 –> 03:50:18,437 WE DO A LOT OF BUSINESS THERE.
5658 03:50:14,867 –> 03:50:21,340 IT’S A GREAT PLACE.
5659 03:50:18,504 –> 03:50:25,177 AND THIS WAS OUT OF THE BLUE,
5660 03:50:21,407 –> 03:50:28,213 BUT ONE WAY OR ANOTHER – THE
5661 03:50:25,244 –> 03:50:31,150 NATURE OF UTILITY BUSINESS IS
5662 03:50:28,280 –> 03:50:32,417 THAT YOU HAVE TO BE PREPARED FOR
5663 03:50:31,217 –> 03:50:33,219 SOMETHING THAT PROBABLY ISN’T
5664 03:50:32,484 –> 03:50:36,822 GOING TO HAPPEN.
5665 03:50:33,286 –> 03:50:38,056 YOU KNOW, YOU DON’T WANT TO SAY,
5666 03:50:36,889 –> 03:50:40,726 IT’S A 1 IN 30 YEAR EVENT AND
5667 03:50:38,123 –> 03:50:42,561 PEOPLE DIE.
5668 03:50:40,793 –> 03:50:45,464 SO, YOU WANT A MARGIN OF SAFETY
5669 03:50:42,628 –> 03:50:47,032 IN IT, AND WE’VE GOT ONE
5670 03:50:45,531 –> 03:50:50,969 SOLUTION, AND OTHER PEOPLE MAY
5671 03:50:47,099 –> 03:50:52,671 HAVE OTHER SOLUTIONS, AND WE
5672 03:50:51,036 –> 03:50:54,139 WILL CHEER WHEN A SOLUTION IS
5673 03:50:52,738 –> 03:50:56,174 REACHED OF ANY KIND, AND WE’LL
5674 03:50:54,206 –> 03:50:56,374 CHEER A LITTLE LOUDER IF IT’S
5675 03:50:56,241 –> 03:50:59,044 OURS.
5676 03:50:56,441 –> 03:51:00,946
AJIT, YOUR QUESTION FROM THIS
5677 03:50:59,111 –> 03:51:02,948 GENTLEMAN – SUPPOSE THE
5678 03:51:01,013 –> 03:51:05,518 HYPOTHETICAL SITUATION ARISES
5679 03:51:03,015 –> 03:51:09,288 WHERE WARREN BUFFET CALLS YOU ON
5680 03:51:05,584 –> 03:51:10,355 THE PHONE TO TELL YOU ELON MUSK
5681 03:51:09,355 –> 03:51:12,324 HAS CONTACTED HIM TO WRITE AN
5682 03:51:10,422 –> 03:51:14,260 INSURANCE POLICY ON HIS PROPOSED
5683 03:51:12,391 –> 03:51:19,398 COME ANIZATION OF MARCH.
5684 03:51:14,327 –> 03:51:24,703 SPECIFICALLY TO ENSURE A SPACEX
5685 03:51:19,465 –> 03:51:24,903 CAPSULE AND ANY HUMAN LOAD ON
5686 03:51:24,770 –> 03:51:26,505 BOARD.
5687 03:51:24,970 –> 03:51:27,907 WOULD YOU WRITE ON THAT?
5688 03:51:26,572 –> 03:51:29,908
THIS IS AN EASY ONE.
5689 03:51:27,974 –> 03:51:30,208 NO THANK YOU.
5690 03:51:29,975 –> 03:51:32,912 I’LL PASS.
5691 03:51:30,275 –> 03:51:33,145
I WAS ABLE TO DEPEND ON THE
5692 03:51:32,978 –> 03:51:35,481 PREMIUM.
5693 03:51:33,212 –> 03:51:37,383 I WOULD PROBABLY HAVE A SOMEWHAT
5694 03:51:35,548 –> 03:51:38,784 DIFFERENT RATE IF ELON WAS ON
5695 03:51:37,450 –> 03:51:40,586 BOARD OR NOT ON BOARD.
5696 03:51:38,851 –> 03:51:43,389 NO, IT MAKES A DIFFERENCE.
5697 03:51:40,653 –> 03:51:45,224 IF SOMEBODY’S ASKING YOU TO
5698 03:51:43,456 –> 03:51:45,858 ENSURE SOMETHING – SO I
5699 03:51:45,290 –> 03:51:50,596 WOULD – THAT’S CALLED GETTING
5700 03:51:45,924 –> 03:51:52,631 SKIN IN THE GAME.
5701 03:51:50,663 –> 03:51:54,366
BUT IN GENERAL I WOULD BE
5702 03:51:52,698 –> 03:51:55,034 VERY CONCERNED ABOUT WRITING AN
5703 03:51:54,433 –> 03:52:04,843 INSURANCE POLICY WHERE ELON MUSK
5704 03:51:55,100 –> 03:52:06,779 IS ON THE OTHER SIDE.
5705 03:52:04,910 –> 03:52:08,247
TELL HIM HE WANTED TO CALL ME
5706 03:52:06,846 –> 03:52:10,849 INSTEAD OF AJIT.
5707 03:52:08,314 –> 03:52:12,985
THIS QUESTION COMES FROM
5708 03:52:10,916 –> 03:52:14,820 MICHAEL LU FROM CALIFORNIA.
5709 03:52:13,052 –> 03:52:16,555 THIS IS FOR WARREN AND CHARLIE.
5710 03:52:14,887 –> 03:52:18,190 THE YOUR SHAREHOLDER LETTER YOU
5711 03:52:16,622 –> 03:52:20,158 MENTION THE BEST RESULTS COME
5712 03:52:18,257 –> 03:52:22,494 FROM COMPANIES THAT REQUIRE
5713 03:52:20,225 –> 03:52:24,830 MINIMUM ASSETS TO CONDUCT HIGH
5714 03:52:22,561 –> 03:52:27,766 MARGIN BUSINESSES TODAY AS WORLD
5715 03:52:24,897 –> 03:52:28,434 THESE DEPEND TO BE SOFTWARE
5716 03:52:27,833 –> 03:52:31,137 BUSINESSES.
5717 03:52:28,501 –> 03:52:34,439 WHILE BERKSHIRE AVOIDED THOSE IN
5718 03:52:31,203 –> 03:52:35,073 THE PAST THAT SEEMS TO BE
5719 03:52:34,506 –> 03:52:36,075 CHANGING WITH YOUR INVESTMENTS
5720 03:52:35,140 –> 03:52:38,310 IN APP AND SNOWFLAKE.
5721 03:52:36,142 –> 03:52:39,978 AS SHAREHOLDERS SHOULD WE EXPECT
5722 03:52:38,377 –> 03:52:43,282 HIGH MARGIN BUSINESSES WILL
5723 03:52:40,045 –> 03:52:45,951 CONSTITUTE A LARGER PORTION OF
5724 03:52:43,349 –> 03:52:48,820 BERKSHIRE’S PORTFOLIO OVER TIME,
5725 03:52:46,018 –> 03:52:50,723 PARTICULARLY AS TOM AND TED TAKE
5726 03:52:48,887 –> 03:52:52,624 OVER ROLES IN THE PROCESS?
5727 03:52:50,789 –> 03:52:54,192
WELL, WE’VE ALWAYS KNOWN THE
5728 03:52:52,691 –> 03:52:56,695 GREEN BUSINESS IS THE ONE THAT
5729 03:52:54,259 –> 03:52:56,862 TAKES LITTLE CAPITAL AND GROWS A
5730 03:52:56,762 –> 03:52:59,031 LOT.
5731 03:52:56,928 –> 03:53:00,499 AND APPLE AND GOOGLE AND
5732 03:52:59,098 –> 03:53:02,368 MICROSOFT AND FACEBOOK ARE
5733 03:53:00,566 –> 03:53:08,040 TERRIFIC EXAMPLES OF THAT.
5734 03:53:02,435 –> 03:53:09,108 I MEAN, APPLE HAS $37 BILLION IN
5735 03:53:08,107 –> 03:53:10,910 POVERTY PLANNED EQUIPMENT.
5736 03:53:09,175 –> 03:53:11,643 BERKSHIRE HAS $170 BILLION OR
5737 03:53:10,976 –> 03:53:13,078 SOMETHING LIKE THAT.
5738 03:53:11,710 –> 03:53:13,846 THEY’RE GOING TO MAKE MORE MONEY
5739 03:53:13,145 –> 03:53:17,749 THAN WE DO.
5740 03:53:13,913 –> 03:53:17,983 IT’S A MUCH BETTER BUSINESS THAN
5741 03:53:17,816 –> 03:53:19,618 WE HAVE.
5742 03:53:18,049 –> 03:53:20,285 AND MICHAEL AS BUSINESS IS A
5743 03:53:19,685 –> 03:53:22,654 BETTER BUSINESS.
5744 03:53:20,352 –> 03:53:24,056 GOOGLE AS BUSINESS IS BETTER.
5745 03:53:22,721 –> 03:53:25,557 WE’VE ALWAYS LOOKED – WE’VE
5746 03:53:24,123 –> 03:53:28,493 KNOWN THAT A LONG TIME.
5747 03:53:25,624 –> 03:53:30,596 WE FOUND THAT OUT WITH SEE’S
5748 03:53:28,560 –> 03:53:31,630 CANDY IN 1972.
5749 03:53:30,663 –> 03:53:34,099 IT JUST DOESN’T REQUIRE THAT
5750 03:53:31,697 –> 03:53:34,800 MUCH CAPITAL.
5751 03:53:34,166 –> 03:53:36,568 IT DOESN’T HAVE – IT HAS
5752 03:53:34,867 –> 03:53:38,571 OBVIOUSLY A COUPLE OF
5753 03:53:36,635 –> 03:53:40,939 MANUFACTURING PLANTS, THEY CALL
5754 03:53:38,637 –> 03:53:45,510 THEM KITCHENS.
5755 03:53:41,006 –> 03:53:46,645 BUT IT DOESN’T HAVE A BIG
5756 03:53:45,577 –> 03:53:47,346 INVENTORY EXCEPT SEASONALLY FOR
5757 03:53:46,712 –> 03:53:49,047 A SHORT PERIOD.
5758 03:53:47,412 –> 03:53:49,381 DOESN’T HAVE A LOT OF
5759 03:53:49,114 –> 03:53:53,018 RECEIVABLES.
5760 03:53:49,448 –> 03:53:54,219 THOSE ARE THE KIND OF
5761 03:53:53,085 –> 03:53:58,457 BUSINESS – THEY’RE THE BEST
5762 03:53:54,286 –> 03:53:58,690 BUSINESSES BUT COMMAND THE BEST
5763 03:53:58,523 –> 03:54:00,292 PRICES.
5764 03:53:58,757 –> 03:54:02,661 WE’RE LOOKING FOR THEM ALL THE
5765 03:54:00,359 –> 03:54:04,463 TIME, AND WE’VE GOT A FEW THAT
5766 03:54:02,728 –> 03:54:05,697 ARE PRETTY DARN GOOD, BUT WE
5767 03:54:04,530 –> 03:54:06,632 DON’T HAVE ANYTHING AS BIG AS
5768 03:54:05,764 –> 03:54:13,672 THE BIG GUYS.
5769 03:54:06,699 –> 03:54:15,508 BUT THAT’S WHAT EVERYBODY’S
5770 03:54:13,739 –> 03:54:16,142 LOOKING FOR.
5771 03:54:15,574 –> 03:54:16,776 THAT’S WHAT CAPITALISM IS ABOUT,
5772 03:54:16,208 –> 03:54:17,476 PEOPLE GETS A RETURN ON CAPITAL.
5773 03:54:16,842 –> 03:54:18,177 AND THE WAY YOU GET IT IS HAVING
5774 03:54:17,543 –> 03:54:18,511 SOMETHING THAT DOESN’T TAKE TOO
5775 03:54:18,244 –> 03:54:20,579 MUCH CAPITAL.
5776 03:54:18,577 –> 03:54:22,547 I MEAN, IF YOU HAVE TO REALLY
5777 03:54:20,645 –> 03:54:24,550 PUT OUT TONS AND TONS OF
5778 03:54:22,614 –> 03:54:26,752 CAPITAL – THE UTILITY BUSINESS,
5779 03:54:24,617 –> 03:54:27,019 IT’S NOT A SUPER HIGH RETURN
5780 03:54:26,819 –> 03:54:28,453 BUSINESS.
5781 03:54:27,086 –> 03:54:29,021 YOU JUST HAVE TO PUT OUT A LOT
5782 03:54:28,520 –> 03:54:30,989 OF CAPITAL.
5783 03:54:29,088 –> 03:54:32,624 YOU GET A RETURN ON THE CAPITAL,
5784 03:54:31,056 –> 03:54:33,125 BUT YOU DON’T GET FABULOUS
5785 03:54:32,691 –> 03:54:34,726 RETURN.
5786 03:54:33,192 –> 03:54:35,961 YOU DON’T GET GOOGLE LIKE
5787 03:54:34,793 –> 03:54:37,463 RETURNS OR ANYTHING REMOTELY
5788 03:54:36,028 –> 03:54:41,333 CLOSE TO IT.
5789 03:54:37,530 –> 03:54:44,603 YOU KNOW, WE’RE PROPOSING A
5790 03:54:41,400 –> 03:54:46,004 RETURN IN THE TRANSACTION WITH
5791 03:54:44,670 –> 03:54:47,839 THE PROPOSITION WITH TEXAS.
5792 03:54:46,071 –> 03:54:50,375 I THINK IT’S 9.3%.
5793 03:54:47,906 –> 03:54:51,977
YEAH, 9.3%.
5794 03:54:50,442 –> 03:54:53,945
YEAH, AND THAT – BUT IF YOU
5795 03:54:52,044 –> 03:54:56,214 LOOK AT THE RETURN ON MOST
5796 03:54:54,012 –> 03:54:57,682 AMERICAN BUSINESSES, NET
5797 03:54:56,281 –> 03:55:01,487 TANGIBLE ASSETS IT’S A LOT
5798 03:54:57,749 –> 03:55:03,388 HIGHER THAN 9.3, BUT THEY AREN’T
5799 03:55:01,554 –> 03:55:04,923 UTILITY BUSINESSES, EITHER.
5800 03:55:03,455 –> 03:55:06,225
CHARLIE, DID YOU WANT TO ADD
5801 03:55:04,990 –> 03:55:06,892 ANYTHING TO THAT?
5802 03:55:06,292 –> 03:55:11,263
NO.
5803 03:55:06,958 –> 03:55:15,700
THIS QUESTION IS FROM RYAN
5804 03:55:11,330 –> 03:55:18,637 FAZARO IN NEW YORK CITY, WHO
5805 03:55:15,767 –> 03:55:20,405 SAYSED TO TODD AND TED HAVE TA
5806 03:55:18,704 –> 03:55:24,276 ON – INCLUDING THE SIZABLE
5807 03:55:20,472 –> 03:55:26,478 APPLE HOLDINGS, PARTICIPATING IN
5808 03:55:24,343 –> 03:55:28,713 M AND A STRATEGY AND
5809 03:55:26,545 –> 03:55:32,251 PARTICIPATING IN THE NEW
5810 03:55:28,780 –> 03:55:32,651 SHUTTERED HEALTH-CARE WITH
5811 03:55:32,318 –> 03:55:33,919 AMAZON AND MORGAN.
5812 03:55:32,718 –> 03:55:36,555 BUT TODD AND TED ARE NOT
5813 03:55:33,986 –> 03:55:37,856 AVAILABLE THE SHAREHOLDERS.
5814 03:55:36,622 –> 03:55:39,458 GIVEN THEIR – TO THE FIRM, CAN
5815 03:55:37,923 –> 03:55:41,526 YOU DISCUSS THIS POLICY AND
5816 03:55:39,525 –> 03:55:43,094 WHETHER WE EXPECT TO HEAR FROM
5817 03:55:41,593 –> 03:55:44,930 THEM MORE IN THE COMING YEARS?
5818 03:55:43,161 –> 03:55:48,400
THEY’RE BOTH ABSOLUTELY
5819 03:55:44,997 –> 03:55:49,401 TERRIFIC, AND THAT’S ONE REASON
5820 03:55:48,467 –> 03:55:50,536 I DON’T WANT PEOPLE QUIZZING
5821 03:55:49,467 –> 03:55:52,938 THEM ON STOCKS.
5822 03:55:50,602 –> 03:55:54,572 THEY’RE ASSETS OF BERKSHIRE.
5823 03:55:53,005 –> 03:55:56,841 THERE’S NO REASON FOR THEM TO BE
5824 03:55:54,639 –> 03:56:00,980 OUT EDUCATING OTHER PEOPLE ON
5825 03:55:56,908 –> 03:56:03,148 HOW TO COMPETE WITH US.
5826 03:56:01,046 –> 03:56:06,685 IT WOULDN’T – IT ALWAYS SEEMS
5827 03:56:03,215 –> 03:56:09,821 SO SILLY THAT PEOPLE EXPECT –
5828 03:56:06,751 –> 03:56:11,690 THEY DON’T EXPECT MERCK OR
5829 03:56:09,888 –> 03:56:13,325 PFIZER TO TELL THEM THE EXACT
5830 03:56:11,757 –> 03:56:16,161 SCIENCE THEY’RE WORKING ON.
5831 03:56:13,391 –> 03:56:20,499 THE FAILURES, ELIMINATE THOSE.
5832 03:56:16,228 –> 03:56:23,101 AND YOU KNOW, THE – IF YOU’VE
5833 03:56:20,565 –> 03:56:24,803 GOT TALENT THAT KNOWS HOW TO
5834 03:56:23,168 –> 03:56:27,339 EVALUATE BUSINESSES – AND THOSE
5835 03:56:24,870 –> 03:56:27,639 TWO FELLAS HAVE GONE FAR BEYOND
5836 03:56:27,406 –> 03:56:30,775 THAT.
5837 03:56:27,706 –> 03:56:33,011 THEY’RE TERRIFIC ASSETS, AND
5838 03:56:30,842 –> 03:56:34,212 THEY LOVE BERKSHIRE AND WORK
5839 03:56:33,078 –> 03:56:36,181 EXTRAORDINARY HOURS.
5840 03:56:34,279 –> 03:56:37,349 BUT WE DON’T REALLY WANT THEM
5841 03:56:36,248 –> 03:56:40,952 GOING AROUND WITH PEOPLE ASKING
5842 03:56:37,416 –> 03:56:41,820 THEM QUESTIONS ABOUT WHY YOU
5843 03:56:41,019 –> 03:56:44,256 LIKE THIS INDUSTRY BETTER OR
5844 03:56:41,887 –> 03:56:46,692 ANYTHING OF THE SORT.
5845 03:56:44,323 –> 03:56:49,928
THIS QUESTION’S FOR CHARLIE.
5846 03:56:46,759 –> 03:56:50,161 IT COMES FROM STEVEN TENOR IN
5847 03:56:49,994 –> 03:56:51,763 ATLANTA.
5848 03:56:50,228 –> 03:56:52,797 HE’S BEEN A BERKSHIRE
5849 03:56:51,830 –> 03:57:00,572 SHAREHOLDER FOR TEN YEARS AND
5850 03:56:52,864 –> 03:57:02,507 SAYS YOU AND YOUR FRIEND LEELU
5851 03:57:00,639 –> 03:57:04,009 HAVE BEEN – SINCE ITS INITIAL
5852 03:57:02,574 –> 03:57:06,778 PURCHASE IN 2008.
5853 03:57:04,076 –> 03:57:07,445 IT’S CURRENTLY VALUE AT
5854 03:57:06,845 –> 03:57:10,849 $5.3 BILLION.
5855 03:57:07,512 –> 03:57:13,251 THE DAILY JOURNAL RECENTLY
5856 03:57:10,916 –> 03:57:16,354 BOUGHT A LARGE SHARE OF ALIBABA
5857 03:57:13,318 –> 03:57:17,889 AFTER JACK MA WAS – AND HIS
5858 03:57:16,421 –> 03:57:18,991 OTHER WAS NOT ALLOWED TO PREEZ
5859 03:57:17,956 –> 03:57:20,558 WITH IPO.
5860 03:57:19,058 –> 03:57:27,732 WHAT ARE YOUR THOUGHTS ON CHINA
5861 03:57:20,625 –> 03:57:29,200 AND WHETHER BUSINESSES – THE
5862 03:57:27,799 –> 03:57:31,336 GOVERNMENT WILL LET BUSINESSES
5863 03:57:29,267 –> 03:57:32,638 WITH STRONG LEADERS TO FLOURISH
5864 03:57:31,403 –> 03:57:35,874 IN THE YEARS TO COME?
5865 03:57:32,705 –> 03:57:37,242
I THINK THE CHINESE
5866 03:57:35,941 –> 03:57:38,076 GOVERNMENT WILL ALLOW BUSINESSES
5867 03:57:37,309 –> 03:57:39,244 TO FLOURISH.
5868 03:57:38,143 –> 03:57:40,812 IT’S THE BEST THING THAT
5869 03:57:39,311 –> 03:57:43,248 HAPPENED IN THE HISTORY OF THE
5870 03:57:40,879 –> 03:57:44,916 WORLD WHEN A BUNCH OF COMMITTED
5871 03:57:43,315 –> 03:57:46,384 COMMUNISTS LOOKED AT THE
5872 03:57:44,983 –> 03:57:47,886 PROSPERITY OF PLACES LIKE
5873 03:57:46,451 –> 03:57:48,620 SINGAPORE AND SAID, THE HELL
5874 03:57:47,953 –> 03:57:50,255 WITH THIS.
5875 03:57:48,687 –> 03:57:51,290 WE’RE NOT GOING STAY HERE IN
5876 03:57:50,322 –> 03:57:54,593 POWER.
5877 03:57:51,357 –> 03:57:56,361 WE’RE GOING TO COPY WHAT WORKS.
5878 03:57:54,660 –> 03:57:57,796 THEY CHANGED COMMUNISM.
5879 03:57:56,428 –> 03:57:59,964 THEY ACCEPTED ADAM SMITH AND
5880 03:57:57,863 –> 03:58:02,101 ADDED IT TO COMMUNISM.
5881 03:58:00,031 –> 03:58:03,602 AND NOW WE HAVE COMMUNISM WITH
5882 03:58:02,167 –> 03:58:06,237 CHINESE CHARACTERISTICS.
5883 03:58:03,669 –> 03:58:07,639 CHINA WITH A FREE MARKET WITH A
5884 03:58:06,304 –> 03:58:10,141 BUNCH OF BILLIONAIRES.
5885 03:58:07,706 –> 03:58:12,077 AND THEY MADE THAT SHIFT.
5886 03:58:10,208 –> 03:58:12,444 AND THEY DESERVE A LOT OF
5887 03:58:12,144 –> 03:58:15,380 CREDIT.
5888 03:58:12,511 –> 03:58:17,482 WARREN AND I ARE NOT QUITE AS
5889 03:58:15,447 –> 03:58:20,919 GOOD AT THAT, CHANGES OUR MINDS
5890 03:58:17,549 –> 03:58:21,786 IN MANY CASES, AND THAT WAS A
5891 03:58:20,986 –> 03:58:23,388 REMARKABLE CHANGE COMING FROM
5892 03:58:21,853 –> 03:58:26,525 SUCH A PLACE, AND OF COURSE IT’S
5893 03:58:23,455 –> 03:58:29,461 WORKED LIKE GANGBUSTERS.
5894 03:58:26,592 –> 03:58:32,030 THAT IS ENORMOUS GROWTH, THE
5895 03:58:29,528 –> 03:58:32,297 AVERAGE INCOME OF THE ARCH
5896 03:58:32,097 –> 03:58:34,198 CHINESE.
5897 03:58:32,364 –> 03:58:36,735 THEY’VE LIFTED 800 MILLION
5898 03:58:34,265 –> 03:58:37,969 PEOPLE OUT OF POVERTY, FAST.
5899 03:58:36,802 –> 03:58:41,573 AND THERE WAS NEVER ANYTHING
5900 03:58:38,036 –> 03:58:42,841 LIKE IT IN THE HISTORY OF THE
5901 03:58:41,640 –> 03:58:43,842 WORLD, SO MY HAT IS OFF TO THE
5902 03:58:42,908 –> 03:58:45,077 CHINESE, AND I THINK THEY WILL
5903 03:58:43,909 –> 03:58:45,277 CONTINUE TO ALLOW PEOPLE TO MAKE
5904 03:58:45,144 –> 03:58:46,812 MONEY.
5905 03:58:45,344 –> 03:58:48,713 THEY LEARNED IT WORKS.
5906 03:58:46,879 –> 03:58:49,815 I LOVE WHAT THE GUY SAID IN THE
5907 03:58:48,780 –> 03:58:51,817 FIRST PLACE – I DON’T CARE
5908 03:58:49,882 –> 03:58:53,685 WHETHER THE CAT IS BLACK AND
5909 03:58:51,884 –> 03:58:53,885 WHITE, AS LONG AS IT CATCHES
5910 03:58:53,752 –> 03:58:57,823 MICE.
5911 03:58:53,952 –> 03:59:00,325 THAT’S MY KIND OF TALK.
5912 03:58:57,890 –> 03:59:02,194
IN THAT LIST OF THE MOST
5913 03:59:00,392 –> 03:59:02,427 VALUABLE COMPANIES, THREE ARE
5914 03:59:02,261 –> 03:59:04,596 CHINESE.
5915 03:59:02,494 –> 03:59:07,599 IF YOU’RE LOOKING OUT 30 YEARS,
5916 03:59:04,663 –> 03:59:08,200 MY GUESS IS MORE.
5917 03:59:07,666 –> 03:59:10,035 BUT I DON’T THINK IT WILL TOP
5918 03:59:08,266 –> 03:59:13,705 THE UNITED STATES.
5919 03:59:10,102 –> 03:59:17,209 BUT WHO KNOWS.
5920 03:59:13,772 –> 03:59:18,276 IT’S – IT’S AMAZING WHAT HAS
5921 03:59:17,276 –> 03:59:19,711 BEEN ACCOMPLISHED.
5922 03:59:18,343 –> 03:59:22,247
YEAH, REALLY AMAZING.
5923 03:59:19,777 –> 03:59:23,415
AND THEY FOUND WHAT WORKS.
5924 03:59:22,314 –> 03:59:26,551 NOTHING LIKE FINDING SOMETHING
5925 03:59:23,482 –> 03:59:27,886 THAT WORKS IN ORDER TO
5926 03:59:26,618 –> 03:59:29,388 REINFOREIN
5927 03:59:27,952 –> 03:59:31,056 REINFORCED IDEAS OVER TIME.
5928 03:59:29,455 –> 03:59:33,792 WE’LL SEE WHAT HAPPENS.
5929 03:59:31,123 –> 03:59:34,459 I WILL BET THERE WILL BE MORE
5930 03:59:33,858 –> 03:59:35,193 THAN THREE, BUT I’LL BET THE
5931 03:59:34,526 –> 03:59:36,194 UNITED STATES HAS MORE THAN
5932 03:59:35,259 –> 03:59:38,797 CHINA HAS, TOO.
5933 03:59:36,261 –> 03:59:42,067
THIS ONE COMES FROM TIM
5934 03:59:38,864 –> 03:59:44,236 MEDLEY IN JACKSON, MISSISSIPPI,
5935 03:59:42,134 –> 03:59:44,436 WHO’S BEEN A SHAREHOLDER SINCE
5936 03:59:44,303 –> 03:59:46,504 1997.
5937 03:59:44,503 –> 03:59:48,974 HE WRITES ON MARCH 19th, THE
5938 03:59:46,571 –> 03:59:51,943 FORMER PRESIDENT OF HARVARD
5939 03:59:49,041 –> 03:59:52,911 UNIVERSITY, LARRY SUMMERS WAS
5940 03:59:52,010 –> 03:59:55,380 CRITICAL OF PRESIDENT
5941 03:59:52,978 –> 03:59:56,414 JOE BIDEN’S $1.9 TRILLION
5942 03:59:55,447 –> 03:59:59,050 AMERICAN RESCUE STIMULUS PLAN,
5943 03:59:56,481 –> 04:00:00,252 AND IN AN INTERVIEW BE BLOOMBERG
5944 03:59:59,117 –> 04:00:03,154 TELEVISION SAID, I’M WORRIED
5945 04:00:00,318 –> 04:00:04,857 WE’LL HAVE MORE INFLATION OR A
5946 04:00:03,221 –> 04:00:05,724 DRAMATIC FISCAL, MONETARY
5947 04:00:04,923 –> 04:00:08,059 COLLISION.
5948 04:00:05,791 –> 04:00:08,326 THIS GOES WAY BEYOND WHAT IS
5949 04:00:08,126 –> 04:00:11,396 NECESSARY.
5950 04:00:08,393 –> 04:00:12,831 HE SAID, ALSO, THIS IS THE LEAST
5951 04:00:11,463 –> 04:00:14,366 RESPONSIBLE MACROECONOMIC POLICY
5952 04:00:12,898 –> 04:00:14,900 WE HAVE HAD IN THE LAST 40
5953 04:00:14,433 –> 04:00:15,734 YEARS.
5954 04:00:14,967 –> 04:00:17,870 YOUR THOUGHTS?
5955 04:00:15,800 –> 04:00:21,272
YOU’RE ASKING ME ON THAT.
5956 04:00:17,936 –> 04:00:22,040
HE DIDN’T WRITE TO WHO, SO
5957 04:00:21,339 –> 04:00:23,975 ANYBODY ON THE STAGE.
5958 04:00:22,107 –> 04:00:27,479
I WOULD SAY LARRY’S BEEN
5959 04:00:24,042 –> 04:00:30,715 READING HIS UNCLE’S BOOK.
5960 04:00:27,546 –> 04:00:36,254 LARRY IS A VERY, VERY SMART –
5961 04:00:30,782 –> 04:00:38,824 ALTHOUGH AND HE’S LETTING OUT
5962 04:00:36,321 –> 04:00:40,892 POSSIBILITIES WHICH ACTUALLY NOW
5963 04:00:38,891 –> 04:00:46,832 VOICED A LITTLE BIT MORE SINCE
5964 04:00:40,959 –> 04:00:50,268 THAT MARCH 19th – WHATEVER DATE
5965 04:00:46,899 –> 04:00:54,673 IT WAS THAT THEY MADE THAT –
5966 04:00:50,335 –> 04:00:58,843 YOU CAN’T JUST DO ONE THING IN
5967 04:00:54,739 –> 04:01:02,480 ECONOMICS, AND IF WE REALLY
5968 04:00:58,910 –> 04:01:04,049 COULD SHOVEL OUT MORE AND MORE
5969 04:01:02,547 –> 04:01:06,217 DEBT AND THE COST TURNED OUT TO
5970 04:01:04,115 –> 04:01:09,488 BE LOW – PEOPLE THOUGHT JAPAN
5971 04:01:06,284 –> 04:01:11,756 COULDN’T DO WHAT THEY’VE DONE,
5972 04:01:09,555 –> 04:01:15,127 BUT, YOU KNOW, USED TO BE CALLED
5973 04:01:11,823 –> 04:01:18,363 THE WIDOWMAKER AROUND SOLOMON,
5974 04:01:15,193 –> 04:01:22,367 AND PEOPLE WERE SHORTING
5975 04:01:18,430 –> 04:01:26,471 JAPANESE BONDS.
5976 04:01:22,434 –> 04:01:26,938 BUT THE ANSWER IS, WE DON’T
5977 04:01:26,538 –> 04:01:29,508 KNOW.
5978 04:01:27,005 –> 04:01:33,078 BUT LARRY’S VIEW IS AN IMPORTANT
5979 04:01:29,575 –> 04:01:35,446 VIEW, AND IT’S JUST AS GOOD AS,
5980 04:01:33,145 –> 04:01:36,147 IF MY – THE VIEW ON THE OTHER
5981 04:01:35,513 –> 04:01:38,350 SIDE MIGHT BE.
5982 04:01:36,214 –> 04:01:40,852 WE DON’T KNOW WHAT HAPPENS FROM
5983 04:01:38,416 –> 04:01:43,855 THE PRESENT POLICIES.
5984 04:01:40,919 –> 04:01:45,356 WE DO KNOW, AS JAY POWELL SAID
5985 04:01:43,922 –> 04:01:48,793 THE OTHER DAY, THAT THE IDEA
5986 04:01:45,423 –> 04:01:52,730 THAT 100% OF GDP WAS SOME
5987 04:01:48,860 –> 04:01:54,566 TERRIBLY DANGEROUS LEVEL, IN
5988 04:01:52,797 –> 04:01:56,768 TERMS OF DEBT, THAT DOESN’T
5989 04:01:54,633 –> 04:02:00,438 REALLY MAKE A WHOLE LOT OF SENSE
5990 04:01:56,835 –> 04:02:00,805 NOW, AND THAT USED TO BE KIND OF
5991 04:02:00,505 –> 04:02:03,108 ACCEPTED WISDOM.
5992 04:02:00,872 –> 04:02:05,544 WE’VE LEARNED A LOT OF THINGS WE
5993 04:02:03,175 –> 04:02:07,078 THOUGHT BEFORE WEREN’T TRUE, BUT
5994 04:02:05,611 –> 04:02:08,146 WE HAVEN’T HEARD IF WHAT WE’RE
5995 04:02:07,145 –> 04:02:10,115 DOING NOW IS TRUE.
5996 04:02:08,213 –> 04:02:11,215 AND THE BEST THING TO DO IS
5997 04:02:10,182 –> 04:02:15,053 RECOGNIZE YOU DON’T KNOW AND
5998 04:02:11,282 –> 04:02:16,454 PROCEED IN A WAY WHERE YOU GET A
5999 04:02:15,120 –> 04:02:18,556 DECENT RESULT NO MATTER WHAT
6000 04:02:16,521 –> 04:02:19,791 HAPPENS, AND THAT’S WHAT WE TRY
6001 04:02:18,623 –> 04:02:22,961 TO DO AT BERKSHIRE HATHAWAY.
6002 04:02:19,858 –> 04:02:25,463 WE DO NOT THINK WE CAN MAKE
6003 04:02:23,028 –> 04:02:25,763 MONEY BY MAKING MACROECONOMIC
6004 04:02:25,530 –> 04:02:29,467 PREDICTIONS.
6005 04:02:25,830 –> 04:02:31,836 WE DO THINK WE CAN BE PRETTY
6006 04:02:29,534 –> 04:02:35,574 DARN SURE WE’LL GET A REASONABLE
6007 04:02:31,903 –> 04:02:36,842 RESULT UNDER POLICIES THAT WILL
6008 04:02:35,640 –> 04:02:38,276 NONACTION WISE RESULT IF WE
6009 04:02:36,908 –> 04:02:42,314 COULD DO THAT SORT OF THING.
6010 04:02:38,343 –> 04:02:44,115
IT’S NOT AT ALL CLEAR WHETHER
6011 04:02:42,381 –> 04:02:45,583 LARRY IS RIGHT OR WRONG.
6012 04:02:44,182 –> 04:02:48,152
HE’S A SMART MAN, THOUGH.
6013 04:02:45,650 –> 04:02:50,755
HE IS A SMART MAN, AND IT’S
6014 04:02:48,219 –> 04:02:52,423 COURAGEOUS OF HIM TO RAISE IT
6015 04:02:50,822 –> 04:02:54,292 TO – HE’S FRANKLY THE ONLY ONE
6016 04:02:52,490 –> 04:02:55,226 TALKING THAT WAY, WHICH I
6017 04:02:54,359 –> 04:02:57,228 ADMIRE, BY THE WAY.
6018 04:02:55,293 –> 04:02:57,895
GUARANTEES HE WON’T GET A
6019 04:02:57,295 –> 04:02:59,297 POSITION IN THE ADMINISTRATION.
6020 04:02:57,962 –> 04:03:00,832
WELL, THAT’S ONE OF THE
6021 04:02:59,364 –> 04:03:02,100 REASONS I ADMIRE HIM.
6022 04:03:00,899 –> 04:03:03,402 AND NOT THAT THERE’S ANYTHING
6023 04:03:02,167 –> 04:03:05,804 WRONG WITH HAVING A POSITION IN
6024 04:03:03,468 –> 04:03:07,539 THE ADMINISTRATION, BUT I THINK
6025 04:03:05,870 –> 04:03:13,345 PEOPLE WHO KIND OF TELL IT THE
6026 04:03:07,606 –> 04:03:16,548 WAY THEY THINK IT IS, I LIKE IT.
6027 04:03:13,412 –> 04:03:18,283
THIS QUESTION CIRCLES BACK TO
6028 04:03:16,615 –> 04:03:19,217 BANKING, WHICH YOU TOUCHED ON
6029 04:03:18,350 –> 04:03:22,620 EARLIER.
6030 04:03:19,284 –> 04:03:23,988 JEROME BERNARD FROM SWITZERLAND
6031 04:03:22,687 –> 04:03:27,592 WRITES, CAN YOU EXPLAIN WHY YOU
6032 04:03:24,055 –> 04:03:28,226 EXITED MOST BANK STOCKS IN 2020
6033 04:03:27,658 –> 04:03:29,160 EXCEPT BANK OF AMERICA, AND WHAT
6034 04:03:28,292 –> 04:03:29,728 IS YOUR FUTURE ON THE BANKING
6035 04:03:29,227 –> 04:03:33,164 INDUSTRY?
6036 04:03:29,795 –> 04:03:36,234
I LIKE BANKS GENERALLY, I
6037 04:03:33,231 –> 04:03:38,703 JUST DIDN’T LIKE THE PROPORTION
6038 04:03:36,301 –> 04:03:41,806 COMPARED TO THE POSSIBLE RISK
6039 04:03:38,770 –> 04:03:42,039 IF – WHICH SO FAR WE HAVEN’T
6040 04:03:41,873 –> 04:03:44,142 GOTTEN.
6041 04:03:42,106 –> 04:03:44,409 WE WERE OVER 10% OF BANK OF
6042 04:03:44,209 –> 04:03:46,744 AMERICA.
6043 04:03:44,476 –> 04:03:49,647 IT’S A REAL PAIN IN THE NECK,
6044 04:03:46,811 –> 04:03:52,350 BOTH IN THE BANK, MORE TO THE
6045 04:03:49,714 –> 04:03:56,121 BANKS THAN US.
6046 04:03:52,416 –> 04:03:58,423 AND I LIKE THE BANK OF AMERICA,
6047 04:03:56,187 –> 04:04:00,892 AND I LIKE BERNARD VERY MUCH AND
6048 04:03:58,490 –> 04:04:03,328 I LIKE THE BANKING BUSINESS
6049 04:04:00,959 –> 04:04:05,964 FINE, SO WE TOOK THAT UP, BUT WE
6050 04:04:03,395 –> 04:04:06,264 TOOK THE OVERALL BANK POSITION
6051 04:04:06,031 –> 04:04:10,068 DOWN.
6052 04:04:06,331 –> 04:04:12,803 WE DIDN’T WANT TO GO ABOVE 10,
6053 04:04:10,135 –> 04:04:15,073 AND WE DID WANT TO INCREASE THE
6054 04:04:12,870 –> 04:04:19,311 B OF A POSITION, BUT WE OVERALL
6055 04:04:15,140 –> 04:04:19,878 DIDN’T WANT AS MUCH IN BANKS AS
6056 04:04:19,377 –> 04:04:22,647 WE HAD.
6057 04:04:19,945 –> 04:04:24,315 THE BANKING BUSINESS WAS WAY
6058 04:04:22,714 –> 04:04:25,784 BETTER THAN IT WAS IN THE UNITED
6059 04:04:24,382 –> 04:04:27,518 STATES 10 OR 15 YEARS AGO.
6060 04:04:25,850 –> 04:04:28,920 THE BANKING BUSINESS AROUND THE
6061 04:04:27,585 –> 04:04:30,989 WORLD IN VARIOUS PLACES MIGHT
6062 04:04:28,987 –> 04:04:34,225 WORRY ME, BUT OUR BANKS ARE IN
6063 04:04:31,056 –> 04:04:34,926 FAR, FAR BETTER SHAPE THAN 10 OR
6064 04:04:34,292 –> 04:04:36,594 15 YEARS AGO.
6065 04:04:34,993 –> 04:04:39,798 BUT WHEN THINGS FROZE FOR A
6066 04:04:36,661 –> 04:04:40,999 SHORT PERIOD OF TIME, THE
6067 04:04:39,864 –> 04:04:42,200 BIGGEST THING THE BANKS HAD
6068 04:04:41,066 –> 04:04:44,569 GOING FOR THEM IS THAT THE
6069 04:04:42,267 –> 04:04:46,471 FEDERAL RESERVE WAS BUYING THEM.
6070 04:04:44,636 –> 04:04:47,505 AND THE FEDERAL RESERVE, THEY’RE
6071 04:04:46,538 –> 04:04:52,176 NOT BEHIND BERKSHIRE.
6072 04:04:47,571 –> 04:04:52,477 IT’S UP TO US TO TAKE CARE OF
6073 04:04:52,243 –> 04:04:53,845 OURSELVES.
6074 04:04:52,543 –> 04:04:56,247
THIS QUESTION COMES FROM MATT
6075 04:04:53,912 –> 04:04:58,516 WHY IN LOS ANGELES.
6076 04:04:56,314 –> 04:04:59,751 YOU RECENTLY PURCHASED A LARGE
6077 04:04:58,583 –> 04:05:01,252 STAKE IN VERIZON.
6078 04:04:59,818 –> 04:05:04,723 FOR EDUCATIONAL PURPOSES COULD
6079 04:05:01,319 –> 04:05:07,625 YOU EXPLAIN THIS?
6080 04:05:04,790 –> 04:05:09,427 MANY SEE TELECOM AS – ONLY FOR
6081 04:05:07,692 –> 04:05:11,229 THE OTHER TECH COMPANIES TO TAKE
6082 04:05:09,494 –> 04:05:15,900 ADVANTAGE AND CABTURE MOST OF
6083 04:05:11,295 –> 04:05:19,804 THE VALUE CREATED LIKE FACEBOOK,
6084 04:05:15,967 –> 04:05:20,972 UBER, AIRBNB AND DOOR DASH.
6085 04:05:19,871 –> 04:05:22,907
I THINK HE’S ANALYZED THE
6086 04:05:21,039 –> 04:05:25,343 SITUATION WELL, BUT WE ARE NOT
6087 04:05:22,974 –> 04:05:27,645 IN THE BUSINESS OF WHY WE OWN A
6088 04:05:25,410 –> 04:05:29,481 STOCK WHICH WE MIGHT BUY MORE
6089 04:05:27,712 –> 04:05:30,682 OF, SELL, OR WHO KNOWS.
6090 04:05:29,548 –> 04:05:34,152 BUT HE’S ON HIS OWN.
6091 04:05:30,749 –> 04:05:38,590 BUT HE SOUNDS LIKE HE’S VERY
6092 04:05:34,219 –> 04:05:38,857 CAPABLE OF THINKING IT THROUGH
6093 04:05:38,657 –> 04:05:46,131 HIMSELF.
6094 04:05:38,924 –> 04:05:48,933
SLAVEN WRITES IN, SENATOR
6095 04:05:46,197 –> 04:05:50,701 JOSH HAWLEY RECENTLY SIGNED A
6096 04:05:49,000 –> 04:05:52,436 PROPOSAL THAT WILL BAN – WHILE
6097 04:05:50,768 –> 04:05:55,340 THIS LEGISLATION IS UNLIKELY TO
6098 04:05:52,503 –> 04:05:55,940 GO THROUGH, INCREASING
6099 04:05:55,407 –> 04:05:58,343 ANTI-TRUST LEGISLATION COULD
6100 04:05:56,007 –> 04:06:01,579 PRESENT A RESCUE FOR BERKSHIRE.
6101 04:05:58,409 –> 04:06:03,181 HAS BERKSHIRE’S BOARD DISCUSSED
6102 04:06:01,646 –> 04:06:08,119 WHAT WOULD HAPPEN OVER THE
6103 04:06:03,248 –> 04:06:10,221 LONG-TERM IF BERKSHIRE WERE
6104 04:06:08,186 –> 04:06:10,521 BANNED TO ACQUIRING CONTROLLED
6105 04:06:10,288 –> 04:06:12,089 BUSINESSES?
6106 04:06:10,588 –> 04:06:14,392
WE DON’T DISCUSS THAT, BUT
6107 04:06:12,156 –> 04:06:17,462 THE BOARD IS VERY, VERY FAMILIAR
6108 04:06:14,459 –> 04:06:21,232 WITH WHAT BERKSHIRE DOES, WHY
6109 04:06:17,529 –> 04:06:24,269 THEY DO IT, YOU KNOW, HOW WE
6110 04:06:21,299 –> 04:06:25,770 THINK IN DEPLOYING CAPITAL.
6111 04:06:24,336 –> 04:06:27,905 BUT WE COULD – EVERYBODY KNOWS
6112 04:06:25,837 –> 04:06:30,174 THAT IF YOU CHANGE THE
6113 04:06:27,972 –> 04:06:32,310 ANTI-TRUST LAWS IT COULD CHANGE
6114 04:06:30,241 –> 04:06:34,679 THINGS FOR BERKSHIRE.
6115 04:06:32,377 –> 04:06:37,716 IF YOU CHANGE THE – IT COULD
6116 04:06:34,746 –> 04:06:39,050 CHANGE THINGS FOR BERKSHIRE.
6117 04:06:37,782 –> 04:06:43,655 WE COULD SPEND HOURS DISCUSSING
6118 04:06:39,117 –> 04:06:44,622 THEM, BUT IN THE END, IT IS A
6119 04:06:43,722 –> 04:06:44,855 22.3% RISK THAT SOMETHING
6120 04:06:44,689 –> 04:06:46,424 CHANGES?
6121 04:06:44,922 –> 04:06:49,160 IT’S A GOOD WAY TO FILL THE TIME
6122 04:06:46,491 –> 04:06:51,229 AT BOARD MEETINGS, AND IF YOU’RE
6123 04:06:49,227 –> 04:06:52,530 GETTING $300,000, $400,000, A
6124 04:06:51,296 –> 04:06:53,698 YEAR AS A BOARD DIRECTOR YOU
6125 04:06:52,597 –> 04:06:56,834 MIGHT WANT TO SPEND YOUR TIME
6126 04:06:53,765 –> 04:06:57,168 DOING THAT, BUT WE REALLY DON’T
6127 04:06:56,901 –> 04:06:58,703 FOCUS ON THAT.
6128 04:06:57,235 –> 04:07:00,672 THE MAIN THING ABOUT BERKSHIRE
6129 04:06:58,770 –> 04:07:02,807 IS HOW TO PRESERVE THE CULTURE,
6130 04:07:00,738 –> 04:07:04,709 HOW TO MAKE SURE IF YOU GET THE
6131 04:07:02,874 –> 04:07:05,911 WRONG PERSON AS A CEO, YOU CAN
6132 04:07:04,776 –> 04:07:07,645 DO SOMETHING ABOUT IT.
6133 04:07:05,977 –> 04:07:09,146 THAT’S THE BIGGEST RISK THE
6134 04:07:07,712 –> 04:07:10,248 BOARD HAS IS IF YOU PICK THE
6135 04:07:09,213 –> 04:07:11,715 WRONG CEO.
6136 04:07:10,315 –> 04:07:13,251 I HAVE BEEN ON 20 BOARDS AND
6137 04:07:11,782 –> 04:07:14,252 THIS HAPPENED MORE THAN ONCE.
6138 04:07:13,318 –> 04:07:16,187 SOMETIMES IT’S A TERRIBLE
6139 04:07:14,319 –> 04:07:21,559 PROBLEM TO GET RID OF THEM.
6140 04:07:16,254 –> 04:07:23,394 YEARS GO BY, AND, YOU KNOW, IF
6141 04:07:21,626 –> 04:07:26,664 YOU JUST SIT THERE AND COLLECT
6142 04:07:23,461 –> 04:07:29,100 YOUR $300,000, $400,000, A YEAR
6143 04:07:26,731 –> 04:07:30,835 AND THE CHIEF EXECUTIVE KEEPS
6144 04:07:29,167 –> 04:07:32,270 PROPOSING YOU GET AN INCREASE
6145 04:07:30,902 –> 04:07:34,372 FROM TIME TO TIME – AND IT’S
6146 04:07:32,337 –> 04:07:39,477 WORSE YET IF HE’S A NICE PERSON,
6147 04:07:34,439 –> 04:07:41,645 YOU KNOW, DOING HIS BEST.
6148 04:07:39,544 –> 04:07:43,982 IT’S – BUT WE’RE NOT GOING TO
6149 04:07:41,712 –> 04:07:45,816 SPEND A LOT OF TIME – WE MAY DO
6150 04:07:44,049 –> 04:07:48,653 IT ON A PERSONAL BASIS, BUT
6151 04:07:45,883 –> 04:07:49,754 WE’RE NOT GOING TAKE A LOT OF
6152 04:07:48,720 –> 04:07:52,991 PEOPLE – WE WANT THEM TO KNOW
6153 04:07:49,821 –> 04:07:55,894 WHAT’S GOING ON WITH BSF AND HOW
6154 04:07:53,058 –> 04:07:57,762 KATIE’S DOING AND IF THE CASEY
6155 04:07:55,960 –> 04:07:58,897 THING COULD – IN A MATERIAL WAY
6156 04:07:57,829 –> 04:08:01,165 AND SO ON.
6157 04:07:58,964 –> 04:08:02,667 WE REALLY DON’T – EXCEPT A
6158 04:08:01,232 –> 04:08:04,902 PRIVATE SIDE THING, WE DON’T
6159 04:08:02,734 –> 04:08:08,205 START TALKING ABOUT WHAT THE
6160 04:08:04,969 –> 04:08:08,907 EFFECTS WILL BE IN 2050 IF THIS
6161 04:08:08,272 –> 04:08:10,942 PROJECTION OR THAT PROJECTION
6162 04:08:08,973 –> 04:08:11,175 ISN’T MET.
6163 04:08:11,009 –> 04:08:16,314 CHARLIE?
6164 04:08:11,242 –> 04:08:18,649
NOTHING TO ADD.
6165 04:08:16,381 –> 04:08:20,217
THIS QUESTION WAS SENT IN BY
6166 04:08:18,716 –> 04:08:21,585 DON GRAHAM DURING THE MEETING
6167 04:08:20,284 –> 04:08:22,253 BASED ON SOMETHING YOU SAID
6168 04:08:21,652 –> 04:08:25,357 EARLIER TODAY.
6169 04:08:22,320 –> 04:08:28,460 HE SAYS, WHY DOES WARREN SAY
6170 04:08:25,423 –> 04:08:29,860 BERKSHIRE’S ABILITY TO ENSURE
6171 04:08:28,526 –> 04:08:32,263 ENORMOUS RISK QUICKLY IS A LESS
6172 04:08:29,927 –> 04:08:32,664 VALUABLE ASSET THAN IT USED TO
6173 04:08:32,330 –> 04:08:36,101 BE?
6174 04:08:32,731 –> 04:08:38,036
WELL, BECAUSE THE DEMAND IS
6175 04:08:36,167 –> 04:08:39,904 LESS, BASICBASICALLY, ON THAT.
6176 04:08:38,103 –> 04:08:43,508 IF YOU TAKE A PERIOD LIKE
6177 04:08:39,971 –> 04:08:44,742 HAPPENED AFTER 9/11, I
6178 04:08:43,574 –> 04:08:48,847 REMEMBER – I MAY BE WRONG ON
6179 04:08:44,808 –> 04:08:52,383 THE DETAILS, BUT KAT AID PACIFIC
6180 04:08:48,913 –> 04:08:53,985 THEY COULDN’T LAND IN HONG KONG
6181 04:08:52,450 –> 04:08:57,355 UNLESS THEY HAD AN INSURANCE
6182 04:08:54,052 –> 04:08:57,722 POLICY BY MONDAY OF THE
6183 04:08:57,422 –> 04:08:58,056 FOLLOWING WEEK.
6184 04:08:57,789 –> 04:08:59,190 WE CAN DO IT.
6185 04:08:58,123 –> 04:09:00,525 SHE CALLS ME UP.
6186 04:08:59,257 –> 04:09:02,426 HE THINKS OF A PRICE.
6187 04:09:00,592 –> 04:09:06,397 I THINK OF A PRICE.
6188 04:09:02,493 –> 04:09:08,332 BUT WE CAN DO IT.
6189 04:09:06,464 –> 04:09:08,566 WE CAN TAKE THE LOSS IF IT
6190 04:09:08,399 –> 04:09:10,401 HAPPENS.
6191 04:09:08,633 –> 04:09:14,572 THEY CALLED ME IN THE SEARS
6192 04:09:10,468 –> 04:09:17,608 TOWER, I THINK, BACK THEN.
6193 04:09:14,639 –> 04:09:19,510 NOBODY KNEW – THEY DIDN’T KNOW
6194 04:09:17,675 –> 04:09:20,111 WEATHER BOMBS MIGHT BE PLACED
6195 04:09:19,577 –> 04:09:22,747 ALL OVER.
6196 04:09:20,178 –> 04:09:25,984 SO THEY WANTED MORE INSURANCE
6197 04:09:22,814 –> 04:09:27,352 ALL OF A SUDDEN AND WE GAVE THEM
6198 04:09:26,051 –> 04:09:29,720 A PRICE.
6199 04:09:27,419 –> 04:09:30,889 SO THAT SORT OF AN ENVIRONMENT
6200 04:09:29,787 –> 04:09:33,557 HASN’T REALLY PERSISTED.
6201 04:09:30,955 –> 04:09:37,361 THERE WERE TIMES, I THINK,
6202 04:09:33,624 –> 04:09:37,662 PERHAPS AIG, HE WOULD DO THE
6203 04:09:37,428 –> 04:09:39,931 SAME THING.
6204 04:09:37,728 –> 04:09:41,499 BUT THERE WEREN’T 10 OR 20
6205 04:09:39,998 –> 04:09:42,533 PEOPLE, AND THEY NEEDED BIG
6206 04:09:41,566 –> 04:09:44,769 LIMITS IN SOME CASES.
6207 04:09:42,600 –> 04:09:47,171 AND WE WERE GOOD FOR IT.
6208 04:09:44,836 –> 04:09:48,840 AND THEY KNEW IF THEY BOUGHT THE
6209 04:09:47,238 –> 04:09:50,875 INSURANCE AND IT HAPPENED, WE’D
6210 04:09:48,907 –> 04:09:53,511 WRITE A CHECK AND IT WOULD
6211 04:09:50,942 –> 04:09:55,346 CLEAR.
6212 04:09:53,578 –> 04:09:56,647 AJIT, YOU MIGHT HAVE SOMETHING.
6213 04:09:55,413 –> 04:09:57,449
YEAH, IN ADDITION TO THE
6214 04:09:56,714 –> 04:10:01,719 DEMAND SIDE, THE SUPPLY SIDE HAS
6215 04:09:57,515 –> 04:10:02,320 BECOME A LOT MORE.
6216 04:10:01,786 –> 04:10:04,422 COMPETITIVE.
6217 04:10:02,387 –> 04:10:05,322 A LOT OF PEOPLE WHO CAN PUT UP
6218 04:10:04,489 –> 04:10:08,693 BIG LIMITS.
6219 04:10:05,389 –> 04:10:11,462 NOT AS MUCH AS WE DO, BUT THEY
6220 04:10:08,760 –> 04:10:11,695 CAN PUT UP $1 BILLION PRETTY
6221 04:10:11,529 –> 04:10:12,296 EASILY.
6222 04:10:11,762 –> 04:10:14,699 THE COMPETITIVE ADVANTAGE WE
6223 04:10:12,363 –> 04:10:15,533 HAVE, WE STILL HAVE, BUT IT’S NO
6224 04:10:14,766 –> 04:10:17,435 LONGER A BIG A DEAL AS IT USED
6225 04:10:15,600 –> 04:10:19,604 TO BE.
6226 04:10:17,502 –> 04:10:21,138
THIS QUESTION COMES FROM
6227 04:10:19,671 –> 04:10:23,341 SHAREHOLDER IN SCOTLAND WHO
6228 04:10:21,205 –> 04:10:25,509 WANTS TO KNOW, WARREN, CHARLIE
6229 04:10:23,407 –> 04:10:28,679 AND GREG’S VIEWS ON HOW KRAFT
6230 04:10:25,576 –> 04:10:31,882 HEINZ HAS PERFORMED OVER THE
6231 04:10:28,746 –> 04:10:32,683 LAST 12 MONTHS COMPARED TO THE
6232 04:10:31,949 –> 04:10:33,718 DISAPPOINTING PERFORMANCE
6233 04:10:32,750 –> 04:10:36,720 PRECOVID AND WHAT ARE YOUR
6234 04:10:33,785 –> 04:10:37,121 LONG-TERM VIEWS ON KRAFT HEINZ
6235 04:10:36,787 –> 04:10:40,592 PROSPECTS?
6236 04:10:37,188 –> 04:10:43,361
WELL, I THINK THAT GREG’S ON
6237 04:10:40,658 –> 04:10:44,195 THE BOARD, SO HE MIGHT – I
6238 04:10:43,427 –> 04:10:47,498 DON’T KNOW THAT WE’RE IN A
6239 04:10:44,262 –> 04:10:47,899 POSITION TO GIVE ADVICE ON KRAFT
6240 04:10:47,565 –> 04:10:55,373 HEINZ.
6241 04:10:47,966 –> 04:10:57,976 WE ENTERED A – IN EFFECT, A
6242 04:10:55,440 –> 04:11:00,278 SEMIFORMAL PARTNERSHIP WITH 3G
6243 04:10:58,042 –> 04:11:02,313 MANY YEARS AGO WHEN IT WAS JUST
6244 04:11:00,345 –> 04:11:03,113 THE HEINZ DEAL AND WENT ON TO
6245 04:11:02,380 –> 04:11:07,384 ACQUIRE KRAFT.
6246 04:11:03,180 –> 04:11:09,220 WE’RE THEIR PARTNERS, AND
6247 04:11:07,451 –> 04:11:12,356 THEY’VE DONE MORE THAN – THEY
6248 04:11:09,287 –> 04:11:15,693 HOLD UP THEIR SHARE, AND WE DO
6249 04:11:12,423 –> 04:11:18,496 WHAT WE SAID WE’D DO GOING IN,
6250 04:11:15,760 –> 04:11:19,864 WHICH IS TO BE A FINANCIAL
6251 04:11:18,563 –> 04:11:20,865 PARTNER, AND THEY’RE MORE OF THE
6252 04:11:19,931 –> 04:11:22,567 OPERATING PARTNER.
6253 04:11:20,932 –> 04:11:24,602 WE PARTICIPATE TO A DEGREE IN
6254 04:11:22,634 –> 04:11:25,803 ANY BIG DECISIONS.
6255 04:11:24,669 –> 04:11:32,543 AND THEY WOULD LISTEN TO US.
6256 04:11:25,869 –> 04:11:33,110 BUT WE’RE NOT MAKING ANY – IN
6257 04:11:32,610 –> 04:11:34,679 TERMS OF KRAFT HEINZ STOCK,
6258 04:11:33,177 –> 04:11:35,012 THAT’S UP TO SOMEBODY ELSE TO
6259 04:11:34,746 –> 04:11:36,948 EVALUATE.
6260 04:11:35,079 –> 04:11:38,716
THE ONLY THING I WOULD ADD,
6261 04:11:37,015 –> 04:11:39,650 WARREN, IS I THINK WE’RE VERY
6262 04:11:38,783 –> 04:11:42,019 COMFORTABLE WITH THE FACT THAT
6263 04:11:39,717 –> 04:11:45,189 THEY PUT A STRONG MANAGER IN
6264 04:11:42,086 –> 04:11:47,458 PLACE IN MIGUEL, AND HE’S PUT A
6265 04:11:45,256 –> 04:11:50,161 VERY GOOD TEAM IN PLACE AT KRAFT
6266 04:11:47,525 –> 04:11:51,629 HEINZ, SO WE’RE PLEASE AT WITH
6267 04:11:50,228 –> 04:11:52,830 THE LEADERSHIP AND AND
6268 04:11:51,696 –> 04:11:55,166 MANAGEMENT TEAM AND THEY’RE
6269 04:11:52,897 –> 04:11:57,001 FOCUSED ON EXECUTING AND THEY’VE
6270 04:11:55,233 –> 04:11:59,403 GONE FORWARD IN RATIONALIZING
6271 04:11:57,068 –> 04:12:01,272 THEIR CAPITAL STRUCTURE AND
6272 04:11:59,470 –> 04:12:02,874 MANAGING THEIR DEBT STRUCTURE,
6273 04:12:01,339 –> 04:12:03,141 SO PLEASED WITH THE PATH
6274 04:12:02,941 –> 04:12:05,276 FORWARD.
6275 04:12:03,208 –> 04:12:09,079
YEAH, WE FEEL BETTER ABOUT
6276 04:12:05,343 –> 04:12:13,151 THE – ONE OF THE – THIS IS A
6277 04:12:09,146 –> 04:12:16,787 MORE GENERAL SUBJECT, BUT ONE OF
6278 04:12:13,217 –> 04:12:19,089 THE SUBJECTS I MIGHT WRITE ABOUT
6279 04:12:16,854 –> 04:12:21,959 IN THE FUTURE REPORTS IS THE
6280 04:12:19,156 –> 04:12:23,661 PROBLEMS CAUSED BY THE MYTHS
6281 04:12:22,026 –> 04:12:25,630 THAT PEOPLE HAVE ABOUT THEIR OWN
6282 04:12:23,728 –> 04:12:27,798 ORGANIZATIONS AND I’VE SEEN THAT
6283 04:12:25,697 –> 04:12:30,234 SO MANY TIMES IN VARIOUS FORMS.
6284 04:12:27,865 –> 04:12:32,870 TO SOME EXTENT, THE PROBLEM HAS
6285 04:12:30,301 –> 04:12:37,174 BECOME ACCENTUATED IN THE LAST
6286 04:12:32,937 –> 04:12:39,143 20 OR 30 YEARS BECAUSE THE CEO
6287 04:12:37,241 –> 04:12:39,410 OFTEN WORKS WITH INVESTOR
6288 04:12:39,210 –> 04:12:43,514 RELATIONS.
6289 04:12:39,477 –> 04:12:45,216 THEY SAY, WE HAVE TO HAVE
6290 04:12:43,581 –> 04:12:47,485 CONSTANT CONTACT WITH THE
6291 04:12:45,283 –> 04:12:48,852 ANALYST COMMUNITY SOME THEY GO
6292 04:12:47,551 –> 04:12:49,920 ON EVERY COUPLE OF MONTHS AND
6293 04:12:48,919 –> 04:12:51,322 REPEAT CERTAIN THINGS ABOUT
6294 04:12:49,987 –> 04:12:55,292 THEIR COMPANY, AND IT BECOMES
6295 04:12:51,389 –> 04:12:55,559 PART OF – SORT OF THE CAT
6296 04:12:55,359 –> 04:12:56,994 CATECHISM.
6297 04:12:55,626 –> 04:13:00,064 NOBODY’S GOING ON TWO MONTH’S
6298 04:12:57,061 –> 04:13:01,399 THE CEO SAID ONE THING AND SAY,
6299 04:13:00,131 –> 04:13:01,566 THAT ACTUALLY REALLY ISN’T THE
6300 04:13:01,466 –> 04:13:02,767 WAY.
6301 04:13:01,632 –> 04:13:03,267 THEY ARE NOT GOING TO CHANGE
6302 04:13:02,834 –> 04:13:07,038 COURSE.
6303 04:13:03,334 –> 04:13:08,005 SO IF YOU GET THESE MYTHS, AND
6304 04:13:07,105 –> 04:13:08,706 THEY CAN OCCUR IN A LOT OF
6305 04:13:08,072 –> 04:13:10,608 DIFFERENT WAYS.
6306 04:13:08,773 –> 04:13:12,310 I CAN GIVE A LOT OF EXAMPLES,
6307 04:13:10,675 –> 04:13:15,646 WHICH I WON’T DO.
6308 04:13:12,377 –> 04:13:16,781 WON’T TELL MY FRIENDS IN
6309 04:13:15,713 –> 04:13:17,048 CORPORATE, GOING TO SQUEAL ON
6310 04:13:16,848 –> 04:13:19,283 THEM.
6311 04:13:17,115 –> 04:13:22,620 BUT THERE’S A LOT OF MYTHOLOGY
6312 04:13:19,350 –> 04:13:24,221 THAT GETS HANDED DOWN FROM ONE
6313 04:13:22,687 –> 04:13:26,190 CEO TO THE NEXT, AND THE
6314 04:13:24,288 –> 04:13:29,060 SUCCEEDING CEO, SAY, THE GUY
6315 04:13:26,257 –> 04:13:31,161 THAT PICKS HIM, YOU KNOW, WAS ON
6316 04:13:29,126 –> 04:13:32,997 THE WRONG COURSE OR HAS BEEN
6317 04:13:31,228 –> 04:13:33,597 TELLING YOU SOMETHING SMG THAT
6318 04:13:33,064 –> 04:13:35,899 ISN’T TRUE.
6319 04:13:33,664 –> 04:13:39,603 THEN HE STARTS REPEATING IT, AND
6320 04:13:35,966 –> 04:13:41,939 IT LEADS TO ENORMOUS ERRORS.
6321 04:13:39,670 –> 04:13:43,541 BUT IT’S HARD TO TELL THE STORY
6322 04:13:42,006 –> 04:13:45,142 WITHOUT GIVING EXAMPLES, AND I
6323 04:13:43,607 –> 04:13:47,445 DON’T LIKE TO GIVE EXAMPLES.
6324 04:13:45,209 –> 04:13:49,647 SO WE’LL SEE WHEN I WRITE ABOUT
6325 04:13:47,511 –> 04:13:51,115 IT SOMETIME.
6326 04:13:49,714 –> 04:13:51,882 CHARLIE, YOU’VE PROBABLY GOT
6327 04:13:51,182 –> 04:13:54,618 SOME THOUGHTS.
6328 04:13:51,949 –> 04:13:56,754 HE’S HAD A RINGSIDE SEAT TO A
6329 04:13:54,685 –> 04:13:58,556 LOT OF – HE’S BEEN ON BOARDS I
6330 04:13:56,821 –> 04:13:59,857 HAVEN’T BEEN ON.
6331 04:13:58,623 –> 04:14:02,193 EXTENDS BEYOND BUSINESS TO
6332 04:13:59,924 –> 04:14:02,426 EDUCATION AND TO, WELL, A LOT OF
6333 04:14:02,260 –> 04:14:03,427 AREAS.
6334 04:14:02,493 –> 04:14:08,899
WHAT’S REALLY INTERESTING IS
6335 04:14:03,494 –> 04:14:10,634 THE WAY YOU PRATTLE OUT ALL THE
6336 04:14:08,966 –> 04:14:11,602 TIME, YOU’RE POUNDING BACK IN
6337 04:14:10,701 –> 04:14:15,139 EVEN IF IT’S WRONG.
6338 04:14:11,669 –> 04:14:19,243 SO ONE OF MY FAVORITE REMARKS IN
6339 04:14:15,205 –> 04:14:23,647 THE HISTORY OF HUMAN REMARKS WAS
6340 04:14:19,310 –> 04:14:24,415 BY SIR CEDRIC HARDWICK WHO IS A
6341 04:14:23,714 –> 04:14:27,651 GREAT BRITISH ACTOR.
6342 04:14:24,482 –> 04:14:29,787 HE SAID, I HAVE BEEN A GREAT
6343 04:14:27,718 –> 04:14:31,755 ACTOR FOR SO LONG THAT I NO
6344 04:14:29,854 –> 04:14:33,090 LONGER KNOW WHAT I TRULY THINK
6345 04:14:31,822 –> 04:14:35,192 ON ANY SUBJECT, AND I THINK THAT
6346 04:14:33,157 –> 04:14:37,762 HAPPENS TO A LOT OF PEOPLE, AND
6347 04:14:35,259 –> 04:14:38,062 IT HAPPENS TO VIRTUALLY EVERY
6348 04:14:37,829 –> 04:14:41,098 POLITICIAN.
6349 04:14:38,129 –> 04:14:41,432
AND IT GETS EMBEDDED IN
6350 04:14:41,165 –> 04:14:43,167 CORPORATIONS.
6351 04:14:41,499 –> 04:14:45,002 AND THE TROUBLE IS NOW THE CEOS
6352 04:14:43,234 –> 04:14:46,470 SPEAK OUT SO OFTEN – SO IF
6353 04:14:45,069 –> 04:14:48,373 THEY’VE GOT SOME CRAZY THING
6354 04:14:46,537 –> 04:14:50,374 THEY’RE SAYING ABOUT THEIR
6355 04:14:48,439 –> 04:14:52,242 COMPANY AND THEY KEEP REPEATING
6356 04:14:50,441 –> 04:14:54,778 IT, THE SUBORDINATES AREN’T
6357 04:14:52,309 –> 04:14:56,714 GOING TO – AND CHARLIE SAID,
6358 04:14:54,845 –> 04:14:56,914 THEY JUST BELIEVE IT AFTER A
6359 04:14:56,780 –> 04:14:59,650 WHILE.
6360 04:14:56,981 –> 04:15:01,518 AND IT’S DANGEROUS.
6361 04:14:59,717 –> 04:15:04,254
YES, AND OBVIOUSLY THE YOUNG
6362 04:15:01,585 –> 04:15:06,390 PEOPLE GET THESE IDEAS AFTER
6363 04:15:04,321 –> 04:15:09,393 THEIR LIBERAL EDUCATIONS, THINK
6364 04:15:06,457 –> 04:15:10,127 THAT GOD HAS GIVEN THEM DIRECT
6365 04:15:09,460 –> 04:15:12,229 INSIGHTS, AND THEY’RE JUST AS
6366 04:15:10,194 –> 04:15:13,430 CRAZY AS THE POLITICIANS.
6367 04:15:12,296 –> 04:15:14,532
THERE ARE SOME OLD PEOPLE
6368 04:15:13,497 –> 04:15:15,632 THAT HAVE THAT, TOO.
6369 04:15:14,599 –> 04:15:16,834
WELL, THE OLD PEOPLE ARE
6370 04:15:15,699 –> 04:15:20,137 ALREADY CRAZY, BUT –
6371 04:15:16,901 –> 04:15:20,337
THEY’RE GOING TO DIE SOONER,
6372 04:15:20,204 –> 04:15:23,073 SO –
6373 04:15:20,404 –> 04:15:26,644
WE HAVE OUR OLD INSANITIES.
6374 04:15:23,140 –> 04:15:26,877 THE NEW INSANITIES, THE YOUNG
6375 04:15:26,711 –> 04:15:29,346 GET.
6376 04:15:26,944 –> 04:15:31,182
ALL RIGHT, THIS QUESTION
6377 04:15:29,413 –> 04:15:33,851 COMES FROM BILL BEGLEY WHO SAID,
6378 04:15:31,249 –> 04:15:38,689 COULD YOU TELL US WHAT HAPPENED
6379 04:15:33,918 –> 04:15:41,325 TO THE JOINT VENTURE BETWEEN
6380 04:15:38,755 –> 04:15:41,859 BERKSHIRE – AND AMAZON ABOUT
6381 04:15:41,392 –> 04:15:42,093 HEALTH-CARE IN THE UNITED
6382 04:15:41,926 –> 04:15:47,932 STATES.
6383 04:15:42,159 –> 04:15:48,199 THE ONLY ITEM I READ WAS IT WAS
6384 04:15:47,999 –> 04:15:49,900 DISBANDED.
6385 04:15:48,266 –> 04:15:51,035 DO YOU HAVE ANYTHING TO BE
6386 04:15:49,967 –> 04:15:53,704 LEARNED AFTER YOUR EFFORT?
6387 04:15:51,102 –> 04:15:57,441
WE LEARNED A LOT ABOUT
6388 04:15:53,771 –> 04:15:58,375 CHANGING AROUND AN INDUSTRY
6389 04:15:57,508 –> 04:16:01,078 THAT’S 17% OF GDP, AND WE
6390 04:15:58,442 –> 04:16:02,279 LEARNED – WE ACCOMPLISHED A
6391 04:16:01,145 –> 04:16:03,947 LESSER OBJECTIVE, WHICH WAS
6392 04:16:02,346 –> 04:16:06,684 PROBABLY MORE IMPORTANT TO US
6393 04:16:04,014 –> 04:16:08,986 EVEN THAN J.P. MORGAN OR AMAZON,
6394 04:16:06,751 –> 04:16:10,855 BECAUSE WE KNEW LESS ABOUT OUR
6395 04:16:09,053 –> 04:16:13,690 OWN SYSTEM THAN THEY DID.
6396 04:16:10,922 –> 04:16:15,993 THEY KNEW – THEY’RE A MORE
6397 04:16:13,757 –> 04:16:17,494 CENTRALIZED OPERATION, SO WE GOT
6398 04:16:16,060 –> 04:16:21,031 SOME BENEFITS IN THE SENSE THAT
6399 04:16:17,561 –> 04:16:26,237 WE LOOKED AT 60 OR 70 DIFFERENT
6400 04:16:21,098 –> 04:16:28,272 OPERATIONS WE HAD PRESENTLY, AND
6401 04:16:26,304 –> 04:16:30,174 THAT’S ONE CASE WHERE A CERTAIN
6402 04:16:28,339 –> 04:16:32,476 AMOUNT OF CENTRALIZATION, AT
6403 04:16:30,241 –> 04:16:33,377 LEAST IN CERTAIN ASPECTS OF IT,
6404 04:16:32,543 –> 04:16:36,547 COULD SAVE REAL MONEY.
6405 04:16:33,444 –> 04:16:40,584 I MEAN, WE FOUND INEFFICIENCIES,
6406 04:16:36,614 –> 04:16:42,119 AND LIKE I SAY, WE PROBABLY
6407 04:16:40,651 –> 04:16:43,120 SAVED MORE THAN THE OTHER TWO
6408 04:16:42,186 –> 04:16:44,522 PARTNERS, BECAUSE THEY KNEW
6409 04:16:43,187 –> 04:16:47,859 THEIR SITUATION BETTER.
6410 04:16:44,589 –> 04:16:48,159 WE FOUND SOME DUMB THINGS WE
6411 04:16:47,925 –> 04:16:49,693 WERE DOING.
6412 04:16:48,226 –> 04:16:54,531 SO WE GOT OUR MONEY’S WORTH, BUT
6413 04:16:49,760 –> 04:16:58,169 IN TERMS OF THE BIG PICTURE OF
6414 04:16:54,598 –> 04:17:00,704 CHANGING SOMETHING, THAT SO MANY
6415 04:16:58,236 –> 04:17:03,774 PEOPLE HAVE A VESTED INTEREST IN
6416 04:17:00,771 –> 04:17:07,044 DOING AND THERE’S ONE ADDITIONAL
6417 04:17:03,841 –> 04:17:07,511 FACTOR TO IT WHICH IS REALLY
6418 04:17:07,111 –> 04:17:10,147 INTERESTING.
6419 04:17:07,578 –> 04:17:13,417 THERE’S AN INGENIUS ASPECT TO IT
6420 04:17:10,213 –> 04:17:15,953 AND IT GOES BACK TO A FELLOW
6421 04:17:13,484 –> 04:17:18,756 NAMED – WHICH DOESN’T HAVE ANY
6422 04:17:16,019 –> 04:17:19,323 DIRECT CONNECTION, BUT BEARDSLY
6423 04:17:18,823 –> 04:17:23,127 RUMLE.
6424 04:17:19,390 –> 04:17:24,828 NOBODY’S EVER HEARD OF BEARDSLY
6425 04:17:23,194 –> 04:17:26,497 RUMMEL, SO HE CAME UP WITH THE
6426 04:17:24,895 –> 04:17:29,500 IDEA OF THE HOLDING ATTACKS.
6427 04:17:26,564 –> 04:17:31,602 INSAID TO OF APRIL 15th PEOPLE
6428 04:17:29,567 –> 04:17:33,337 HAVING TO WRITE A CHECK AND
6429 04:17:31,669 –> 04:17:35,206 THINKING OF HOW THEY HATED THEIR
6430 04:17:33,404 –> 04:17:37,641 GOVERNMENT, THEY LOOKED AT IT AS
6431 04:17:35,273 –> 04:17:39,510 A CHRISTMAS CLUB, THEY GOT A
6432 04:17:37,708 –> 04:17:40,211 CHECK WHEN THE FINAL PAYMENT
6433 04:17:39,576 –> 04:17:42,079 CAME DUE.
6434 04:17:40,278 –> 04:17:43,714 SO WHEN YOU AREN’T WRITING THE
6435 04:17:42,146 –> 04:17:45,182 CHECK YOURSELF, YOU MAY KNOW
6436 04:17:43,781 –> 04:17:47,451 THAT THE HEALTH BENEFIT FROM
6437 04:17:45,249 –> 04:17:51,154 YOUR COMPANY IS WORTH $10,000 A
6438 04:17:47,518 –> 04:17:53,223 YEAR TO YOU OR $15,000 AND MAY
6439 04:17:51,221 –> 04:17:54,391 COST THEM THAT MUCH, BUT IT MAY
6440 04:17:53,290 –> 04:17:56,026 COST THE COMPANY THAT MUCH, BUT
6441 04:17:54,458 –> 04:17:57,728 YOU DON’T SEE IT.
6442 04:17:56,093 –> 04:17:59,029 SO THE COMPANY PAYS IT, AND MOST
6443 04:17:57,795 –> 04:18:00,965 OF THE PEOPLE IN THAT WAITING
6444 04:17:59,096 –> 04:18:03,066 ROOM SITTING NEXT TO ME, THEY
6445 04:18:01,032 –> 04:18:07,805 ARE NOT SITTING THERE THINKING
6446 04:18:03,133 –> 04:18:08,472 ABOUT WHETHER I CAN AFFORD TO DO
6447 04:18:07,872 –> 04:18:09,640 THIS, YOU KNOW, OR WHAT’S THIS
6448 04:18:08,539 –> 04:18:11,074 GOING TO DO?
6449 04:18:09,707 –> 04:18:13,276 THEY’RE GENERALLY UNDER SOME
6450 04:18:11,141 –> 04:18:14,845 KIND OF A PLAN.
6451 04:18:13,343 –> 04:18:16,513 NOT ALWAYS, OBVIOUSLY, BUT THEY
6452 04:18:14,912 –> 04:18:19,350 DON’T THINK IF THE COMPANY
6453 04:18:16,580 –> 04:18:21,619 WASN’T PAYING THEM THAT THEY
6454 04:18:19,417 –> 04:18:22,553 COULD PAY THAT IN ADDITIONAL
6455 04:18:21,685 –> 04:18:23,520 COMPENSATION.
6456 04:18:22,620 –> 04:18:25,889 BUT OF COURSE THE WEIRD SYSTEM
6457 04:18:23,587 –> 04:18:28,859 IS THE COMPANY GETS A DEDUCTION
6458 04:18:25,956 –> 04:18:29,526 IF THEY PAY IT, BUT IF YOU PAY
6459 04:18:28,926 –> 04:18:31,529 IT YOURSELF ON A POLICY I DON’T
6460 04:18:29,593 –> 04:18:35,466 BELIEVE YOU GET A DEDUCTION.
6461 04:18:31,596 –> 04:18:37,568 SO IT’S SOMETHING THAT’S – MOST
6462 04:18:35,533 –> 04:18:39,303 OF THE PEOPLE ARE NOT SEEING AS
6463 04:18:37,635 –> 04:18:39,704 A COST TO THEM, AND THEY LIKE
6464 04:18:39,370 –> 04:18:44,608 THAT PRETTY WELL.
6465 04:18:39,770 –> 04:18:46,477
NO KIDDING.
6466 04:18:44,675 –> 04:18:48,245
WELL, BUT THAT’S TRUE.
6467 04:18:46,544 –> 04:18:51,916 THE FEDERAL INCOME TAX WAS AN
6468 04:18:48,312 –> 04:18:52,449 ACT OF GENIUS FROM THE
6469 04:18:51,982 –> 04:18:54,218 GOVERNMENT TO GO TO A
6470 04:18:52,516 –> 04:18:55,319 WITHHOLDING SYSTEM, AND IF YOU
6471 04:18:54,285 –> 04:18:57,120 DIDN’T, JUST THINK ABOUT HOW
6472 04:18:55,386 –> 04:19:00,190 MANY PEOPLE ON APRIL 15th WOULD
6473 04:18:57,187 –> 04:19:01,659 HAVE TO SIT DOWN AND WRITE A
6474 04:19:00,257 –> 04:19:02,426 PRETTY GOOD SIZE CHECK AND THEY
6475 04:19:01,726 –> 04:19:07,765 WOULD BE MAD.
6476 04:19:02,493 –> 04:19:09,533 AND THEY DON’T FEEL IT NOW.
6477 04:19:07,832 –> 04:19:13,937 SO WE WERE UP – THAT’S AN
6478 04:19:09,600 –> 04:19:15,940 OBVIOUS POINT, BUT YOU ALSO –
6479 04:19:14,004 –> 04:19:17,274 PEOPLE LIKE THEIR DOCTOR IN
6480 04:19:16,007 –> 04:19:20,711 GENERAL, AND THEY DON’T LIKE THE
6481 04:19:17,341 –> 04:19:25,983 FACT THAT IT’S 17% OF GDP, BUT
6482 04:19:20,778 –> 04:19:27,718 ONE IS JUST KIND OF AN AMORPHUS
6483 04:19:26,050 –> 04:19:29,486 THING AND THE OTHER IS PRETTY
6484 04:19:27,785 –> 04:19:30,488 ISRAEL AND THE MOST PRESTIGIOUS
6485 04:19:29,553 –> 04:19:31,855 PEOPLE IN THE COMMUNITY ARE ON
6486 04:19:30,554 –> 04:19:34,157 THE HOSPITAL BOARDS.
6487 04:19:31,922 –> 04:19:36,760 A LOT OF PEOPLE THAT ARE FAIRLY
6488 04:19:34,224 –> 04:19:39,697 HAPPY WITH THE SYSTEM, SO WE DID
6489 04:19:36,827 –> 04:19:45,869 NOT MAKE INROADS ON THAT, AND WE
6490 04:19:39,763 –> 04:19:47,237 ARE PAYING 17% OF GDP PER HEALTH
6491 04:19:45,936 –> 04:19:49,540 CARE, AND NO MAJOR COUNTRY IS
6492 04:19:47,304 –> 04:19:52,909 MORE THAN 11%, AND IN THE
6493 04:19:49,607 –> 04:19:55,079 PANDEMIC, YOU KNOW, WE HAVE HAD
6494 04:19:52,976 –> 04:19:56,780 A DEATH RATE – OR A DEATH
6495 04:19:55,146 –> 04:19:57,781 TOTAL, AS A PERCENTAGE OF
6496 04:19:56,847 –> 04:19:59,049 POPULATION, THAT’S WAY HIGHER
6497 04:19:57,848 –> 04:20:00,684 THAN THE REST OF THE WORLD.
6498 04:19:59,116 –> 04:20:05,689 NOT EVERY SINGLE COUNTRY, BUT
6499 04:20:00,751 –> 04:20:06,089 WAY HIGHER.
6500 04:20:05,756 –> 04:20:09,259 SO
6501 04:20:06,156 –> 04:20:10,761 SO, YOU KNOW, WE’VE LAID OUT
6502 04:20:09,326 –> 04:20:12,896 MORE MONEY AND GOT A WORST
6503 04:20:10,828 –> 04:20:13,564 RESULT IN TERPS OF THIS
6504 04:20:12,963 –> 04:20:15,699 PARTICULAR PANDEMIC.
6505 04:20:13,630 –> 04:20:17,167
EVEN THOUGH YOU SHOT AND
6506 04:20:15,766 –> 04:20:19,169 MISSED, YOU WERE AT LEAST
6507 04:20:17,234 –> 04:20:21,171 SHOOTING AT AN ELEPHANT.
6508 04:20:19,236 –> 04:20:24,941 THE COST OF HEALTH CARE IN
6509 04:20:21,238 –> 04:20:26,309 SINGAPORE IS 20% OF WHAT IT IS
6510 04:20:25,008 –> 04:20:29,480 IN THE UNITED STATES, AND THEIR
6511 04:20:26,376 –> 04:20:32,983 MEDICAL SYSTEM WORKS BETTER.
6512 04:20:29,547 –> 04:20:33,584 SO YOU WERE AT SHOOTING AT A HU
6513 04:20:33,050 –> 04:20:36,854 ELEPHANT.
6514 04:20:33,651 –> 04:20:38,288
BUT AS YOU FOUND OUT, IT’S
6515 04:20:36,921 –> 04:20:40,257 HARD TO GET ENTHUSIASTIC ABOUT
6516 04:20:38,355 –> 04:20:40,490 PEOPLE LOSING PART OF THEIR
6517 04:20:40,324 –> 04:20:42,592 INCOME.
6518 04:20:40,557 –> 04:20:44,895
I SAID WE WERE FINDING A
6519 04:20:42,659 –> 04:20:45,963 TAPEWORM IN THE AMERICAN
6520 04:20:44,962 –> 04:20:47,030 ECONOMY, AND THE TAPEWORM WON.
6521 04:20:46,030 –> 04:20:47,397
THAT’S EXACTLY IT.
6522 04:20:47,097 –> 04:20:49,633 WONDERFUL PHRASE
6523 04:20:47,464 –> 04:20:50,901 TAPEWORM.
6524 04:20:49,700 –> 04:20:52,770 I’LL HAVE TO COPY THAT.
6525 04:20:50,968 –> 04:20:57,775
WELL, IT WASN’T A PHRASE WE
6526 04:20:52,836 –> 04:21:00,043 WERE LOOKING FOR.
6527 04:20:57,842 –> 04:21:02,546
THIS QUESTION COMES IN FROM
6528 04:21:00,110 –> 04:21:04,715 MARK BLINKLY IN TULSA.
6529 04:21:02,613 –> 04:21:06,850 THIS IS FOR WARREN AND CHARLIE.
6530 04:21:04,782 –> 04:21:08,318 WHEN WE DISCUSS BERKSHIRE WE
6531 04:21:06,917 –> 04:21:09,787 OFTEN FOCUS ON THE INSURANCE
6532 04:21:08,385 –> 04:21:10,554 OPERATIONS AND THE LARGEST
6533 04:21:09,854 –> 04:21:14,491 NONINSURANCE BUSINESSES.
6534 04:21:10,621 –> 04:21:14,691 THE REDWOODS AS YOU MENTIONED IN
6535 04:21:14,558 –> 04:21:16,393 2019.
6536 04:21:14,758 –> 04:21:18,629 HOWEVER, BERKSHIRE OWNS A LARGE
6537 04:21:16,460 –> 04:21:20,497 NUMBER OF SUBSIDIARY BUSINESSES,
6538 04:21:18,696 –> 04:21:20,764 MOST OF WHICH ARE NEVER
6539 04:21:20,564 –> 04:21:22,899 MENTIONED.
6540 04:21:20,831 –> 04:21:25,803 IS THERE A POINT AT WHICH IT
6541 04:21:22,966 –> 04:21:27,203 BECOMES TOO HARD TO MANAGE AND
6542 04:21:25,870 –> 04:21:28,572 SHOULD – A LACK OF INFORMATION
6543 04:21:27,270 –> 04:21:30,474 FOR MOST COMPANIES?
6544 04:21:28,639 –> 04:21:32,609 IS THERE A TIME WHEN BERKSHIRE
6545 04:21:30,541 –> 04:21:34,778 IS TOO LARGE AND TOO COMPLEX?
6546 04:21:32,676 –> 04:21:35,011
IT’S TOO LARGE TO DO CERTAIN
6547 04:21:34,845 –> 04:21:36,080 THINGS.
6548 04:21:35,078 –> 04:21:40,517 THAT’S FOR SURE.
6549 04:21:36,147 –> 04:21:43,520 WE CAN’T SPEND OUR TIME LOOKING
6550 04:21:40,584 –> 04:21:45,856 FOR $100 MILLION ACQUISITIONS.
6551 04:21:43,587 –> 04:21:48,926 BUT WE HAVE A WONDERFUL COMPANY
6552 04:21:45,923 –> 04:21:49,460 IN FT. WORTH, AND WE HAD A
6553 04:21:48,993 –> 04:21:55,399 MARVELOUS MAN RUNNING IT.
6554 04:21:49,526 –> 04:21:58,001 HE DIED RECENTLY.
6555 04:21:55,466 –> 04:21:58,168 BUT HE RAN IT UNTIL 15 YEARS
6556 04:21:58,068 –> 04:22:01,539 AGO.
6557 04:21:58,234 –> 04:22:03,207 HE JUST BASICALLY RAN IT.
6558 04:22:01,605 –> 04:22:03,607 I COULDN’T FIND MY WAY TO THE
6559 04:22:03,274 –> 04:22:06,743 COMPANY.
6560 04:22:03,674 –> 04:22:10,414 WE’VE GOT THIS TERRIFIC COMPANY
6561 04:22:06,810 –> 04:22:12,683 THAT MAKES RECREATIONAL VEHICLES
6562 04:22:10,481 –> 04:22:14,418 BASED IN INDIANA, AND WE BOUGHT
6563 04:22:12,749 –> 04:22:15,686 IT 15 YEARS AGO.
6564 04:22:14,485 –> 04:22:16,987 I’VE NEVER BEEN THERE.
6565 04:22:15,753 –> 04:22:18,589 MAYBE THERE’S SOME KIND OF
6566 04:22:17,054 –> 04:22:21,558 CLOSET MAKING UP NUMBERS TO SEND
6567 04:22:18,656 –> 04:22:22,592 TO ME, BUT I FEEL I UNDERSTAND
6568 04:22:21,625 –> 04:22:24,027 THE BUSINESS PRETTY WELL, BUT
6569 04:22:22,659 –> 04:22:26,363 I’VE NEVER SEEN IT AND THE
6570 04:22:24,094 –> 04:22:29,432 FELLOW THAT RUNS IT LIKES
6571 04:22:26,430 –> 04:22:29,833 RUNNING IT AND LIKES ME KEEPING
6572 04:22:29,499 –> 04:22:31,101 MY NOSE OUT OF IT.
6573 04:22:29,899 –> 04:22:34,404 HE’LL LET GREG IN A LITTLE MORE
6574 04:22:31,168 –> 04:22:36,106 THAN HE’LL LET ME.
6575 04:22:34,471 –> 04:22:37,574 BUT WE’VE GOT A SYSTEM THAT WILL
6576 04:22:36,173 –> 04:22:39,143 WORK WITH WONDERFUL BUSINESSES
6577 04:22:37,641 –> 04:22:42,679 AND WONDERFUL MANAGERS.
6578 04:22:39,209 –> 04:22:45,215 AND IT’S UP TO US TO FIND THEM.
6579 04:22:42,746 –> 04:22:47,351 BUT IT’S ALSO US TO NURTURE THEM
6580 04:22:45,282 –> 04:22:49,986 WHEN WE FIND THEM.
6581 04:22:47,418 –> 04:22:55,292 AND IF YOU’LL GET SOMEBODY LIKE
6582 04:22:50,053 –> 04:22:57,727 PAUL ANDREWS WHO RAN TTI AND WHO
6583 04:22:55,359 –> 04:22:59,095 BUILT IT FROM NOTHING,
6584 04:22:57,794 –> 04:23:03,300 ABSOLUTELY NOTHING, AND NOBODY
6585 04:22:59,162 –> 04:23:07,237 EVER HEARD OF HIM, AND THE
6586 04:23:03,367 –> 04:23:10,574 EARNINGS HAVE OCTUPLED DURING
6587 04:23:07,304 –> 04:23:11,875 THE PERIOD HE RAN IT FOR US.
6588 04:23:10,641 –> 04:23:12,108 HE WAS HAPPY, THE EMPLOYEES WERE
6589 04:23:11,942 –> 04:23:13,610 HAPPY.
6590 04:23:12,175 –> 04:23:14,244 HE WAS A WONDERFUL MAN.
6591 04:23:13,677 –> 04:23:15,446 WE WERE HAPPY.
6592 04:23:14,311 –> 04:23:18,181 AND I’D CALL HIM AT THE END OF
6593 04:23:15,512 –> 04:23:21,184 THE YEAR AND SAY, PAUL, THIS
6594 04:23:18,248 –> 04:23:21,919 PLACE IS – YOU’RE SHOOTING THE
6595 04:23:21,251 –> 04:23:23,887 LIGHTS OUT.
6596 04:23:21,986 –> 04:23:24,087 YOU SHOULD TAKE A RAISE OR A
6597 04:23:23,954 –> 04:23:25,989 BONUS.
6598 04:23:24,154 –> 04:23:26,657 HE’D SAY, WE’LL TALK ABOUT THAT
6599 04:23:26,056 –> 04:23:27,925 NEXT YEAR.
6600 04:23:26,724 –> 04:23:28,926 HE JUST LOVED THE BUSINESS.
6601 04:23:27,992 –> 04:23:30,694 I LOVED BERKSHIRE.
6602 04:23:28,992 –> 04:23:32,996 HE LOVED THE BUSINESS.
6603 04:23:30,761 –> 04:23:34,397 AND I WASN’T GOING TO ADD
6604 04:23:33,063 –> 04:23:36,633 ANYTHING BY HAVING HIM FILL OUT
6605 04:23:34,464 –> 04:23:39,369 A BUNCH OF REPORTS ABOUT HOW
6606 04:23:36,700 –> 04:23:41,738 MUCH HE’S USING IN THE WAY OF
6607 04:23:39,436 –> 04:23:43,607 CARBON OR THE – YOU KNOW, IT’S
6608 04:23:41,805 –> 04:23:46,076 JUST RIDICULOUS THINK OF A GUY
6609 04:23:43,674 –> 04:23:47,611 LIKE PAUL ANDREWS BEHAVING IN AN
6610 04:23:46,143 –> 04:23:50,581 ANTI-SOCIAL MANNER OF ANYTHING
6611 04:23:47,678 –> 04:23:54,718 OF THE SORT.
6612 04:23:50,648 –> 04:23:56,520 AND WE’D LOVE TO HAVE MORE OF
6613 04:23:54,785 –> 04:23:57,988 THOSE, AND OBVIOUSLY WE GOT
6614 04:23:56,587 –> 04:24:00,157 BIGGER, THEY GET HARDER TO BUY.
6615 04:23:58,055 –> 04:24:01,992 BUT WE’VE GOT A NUMBER IN THE
6616 04:24:00,224 –> 04:24:04,127 PLACE, AND I DON’T THINK WE
6617 04:24:02,059 –> 04:24:05,829 BOUGHT OUR LAST ONE OVER TIME,
6618 04:24:04,194 –> 04:24:09,333 BUT I CERTAINLY DON’T SEE
6619 04:24:05,896 –> 04:24:09,500 ANYTHING IN THE NEAR FUTURE AT
6620 04:24:09,400 –> 04:24:14,404 ALL.
6621 04:24:09,566 –> 04:24:16,273 BUT WE’RE INTENSIFYING OUR
6622 04:24:14,471 –> 04:24:18,208 INTEREST IN PURCHASING SHARES.
6623 04:24:16,340 –> 04:24:20,610 OUR SHAREHOLDERS OWN MORE IN THE
6624 04:24:18,275 –> 04:24:23,280 COMPANIES EVERY YEAR, ASSUMING
6625 04:24:20,677 –> 04:24:24,614 WE’RE REPURCHASING SHARES, WHICH
6626 04:24:23,347 –> 04:24:25,249 IS PRICE SENSITIVE.
6627 04:24:24,681 –> 04:24:27,884
CHARLIE?
6628 04:24:25,316 –> 04:24:29,552
YEAH, I DON’T THINK WE’RE
6629 04:24:27,951 –> 04:24:32,322 GETTING TOO BIG TO MANAGE,
6630 04:24:29,619 –> 04:24:33,390 BECAUSE WE’RE DIFFERENT FROM
6631 04:24:32,389 –> 04:24:34,124 PRACTICALLY EVER OTHER
6632 04:24:33,457 –> 04:24:42,132 CORPORATION IN THE UNITED STATES
6633 04:24:34,191 –> 04:24:42,466 IN THAT WE ARE SO EXCESSIVELY
6634 04:24:42,199 –> 04:24:44,868 DECENTRALIZED.
6635 04:24:42,532 –> 04:24:47,103 WE HAVE DECENTRALIZED SO MUCH
6636 04:24:44,934 –> 04:24:47,938 AND SO MUCH AUTHORITY IN THE
6637 04:24:47,170 –> 04:24:49,773 SUBSIDIARIES THAT WE CAN KEEP
6638 04:24:48,005 –> 04:24:51,575 DOING IT FOR A LONG, LONG TIME,
6639 04:24:49,840 –> 04:25:00,751 AS LONG AS IT KEEPS WORKING.
6640 04:24:51,641 –> 04:25:02,419 I WOULD SAY SO FAR OUR DECENT
6641 04:25:00,818 –> 04:25:11,594 RALIZATION HAS – THAT’S TRUE,
6642 04:25:02,486 –> 04:25:13,263 BUT I CAN SAY THIS, DECENT RAL
6643 04:25:11,661 –> 04:25:14,631 IZATION WON’T WORK IF YOU DON’T
6644 04:25:13,330 –> 04:25:16,499 HAVE TO RIGHT CULTURE.
6645 04:25:14,697 –> 04:25:18,168
YEAH, BUT WE DO, AND GREG
6646 04:25:16,566 –> 04:25:18,435 WILL KEEP WORKING ON THE
6647 04:25:18,235 –> 04:25:21,371 CULTURE.
6648 04:25:18,502 –> 04:25:22,839
IF WE HAD A CULTURE OF PEOPLE
6649 04:25:21,438 –> 04:25:25,976 TRYING TO MAKE A LOT OF MONEY
6650 04:25:22,906 –> 04:25:27,143 FOR THEMSELVES IN THE NEXT FIVE
6651 04:25:26,043 –> 04:25:27,944 YEARS AT THE TOP, I WOULD NOT
6652 04:25:27,210 –> 04:25:29,346 HAVE WORKED.
6653 04:25:28,011 –> 04:25:31,148
NO, OF COURSE NOT.
6654 04:25:29,412 –> 04:25:34,218 THE CULTURE IS PART OF IT.
6655 04:25:31,215 –> 04:25:36,219 ASSUMING WE KEEP THE CULTURE,
6656 04:25:34,284 –> 04:25:39,623 THE GO ON A QUITE A WAYS.
6657 04:25:36,286 –> 04:25:40,290 LONG, LONG TIME.
6658 04:25:39,690 –> 04:25:43,059 I THINK IT WILL AMAZE EVERYBODY.
6659 04:25:40,357 –> 04:25:45,729 BY THE WAY, THE ROMAN EMPIRE
6660 04:25:43,126 –> 04:25:48,932 WORKED AS LONG AS IT DID BECAUSE
6661 04:25:45,796 –> 04:25:51,768 IT WAS SO DECENTRALIZED.
6662 04:25:48,999 –> 04:25:52,001
AS CHARLIE SAID, WE WON’T
6663 04:25:51,835 –> 04:25:54,471 KNOW.
6664 04:25:52,068 –> 04:25:55,005
THIS QUESTION COMES FROM
6665 04:25:54,538 –> 04:25:56,640 KEVIN YOUNG.
6666 04:25:55,072 –> 04:25:58,775 IT’S FOR AJIT AND GREG.
6667 04:25:56,707 –> 04:26:01,778 WARREN SPENDS THE DAY READING
6668 04:25:58,841 –> 04:26:02,012 AND HIS WORK OF CHOICE IS ANNUAL
6669 04:26:01,845 –> 04:26:05,315 REPORTS.
6670 04:26:02,079 –> 04:26:05,916 HOW DO EACH OF YOU SPEND YOUR
6671 04:26:05,381 –> 04:26:08,251 DAYS?
6672 04:26:05,983 –> 04:26:09,886 WHAT DO YOU READ AND HOW DO YOU
6673 04:26:08,318 –> 04:26:12,456 REACH INVESTMENT DECISIONS?
6674 04:26:09,953 –> 04:26:14,924
WELL, IN MY JOB I SPEND A LOT
6675 04:26:12,523 –> 04:26:19,029 OF MY TIME READING DEALS THAT
6676 04:26:14,991 –> 04:26:21,164 BROKERS AND PEOPLE SEND US.
6677 04:26:19,096 –> 04:26:22,532 READING WHAT THEY’RE PROPOSING,
6678 04:26:21,231 –> 04:26:24,101 TRYING TO ANALYZE THEM, HAVING A
6679 04:26:22,599 –> 04:26:25,335 POINT OF VIEW.
6680 04:26:24,168 –> 04:26:26,370 IT IS SOMETHING THAT IS OF
6681 04:26:25,402 –> 04:26:28,338 INTEREST TO US OR NOT.
6682 04:26:26,437 –> 04:26:29,706 I MIGHT ADD, I DO NOT SPEND A
6683 04:26:28,405 –> 04:26:32,809 LOT OF TIME READING REPORTS
6684 04:26:29,773 –> 04:26:35,512 BECAUSE I’M NOT IN THE STOCK
6685 04:26:32,876 –> 04:26:38,782 MAKING BUSINESS PER SE.
6686 04:26:35,579 –> 04:26:41,018 BUT IN TERMS OF KEEPING TRACK OF
6687 04:26:38,849 –> 04:26:43,920 WHAT’S GOING ON IN THE INSURANCE
6688 04:26:41,085 –> 04:26:45,389 BUSINESS, THAT’S WHAT 90% OF MY
6689 04:26:43,987 –> 04:26:45,589 READING IS ABOUT.
6690 04:26:45,456 –> 04:26:46,356 GREG?
6691 04:26:45,656 –> 04:26:47,958
YEAH.
6692 04:26:46,423 –> 04:26:49,325 SO GENERALLY TODAY WHAT I FOCUS
6693 04:26:48,024 –> 04:26:50,961 ON WHEN READING IS REALLY AROUND
6694 04:26:49,392 –> 04:26:54,197 OUR BUSINESSES.
6695 04:26:51,028 –> 04:26:56,199 WHAT INDUSTRIES ARE IN.
6696 04:26:54,264 –> 04:26:57,400 TRYING TO UNDERSTAND WHAT OUR
6697 04:26:56,266 –> 04:26:58,735 COMPETITORS ARE DOING, WHAT’S
6698 04:26:57,467 –> 04:27:00,403 THE RISK AROUND THE BUSINESSES,
6699 04:26:58,802 –> 04:27:02,272 HOW THEY’RE GOING TO GET
6700 04:27:00,470 –> 04:27:05,108 DISRUPTED AND IT ALWAYS COMES
6701 04:27:02,339 –> 04:27:06,877 BACK TO, ARE WE ALLOCATING
6702 04:27:05,175 –> 04:27:08,411 CAPITAL CORRECTLY RELATIVE TO
6703 04:27:06,943 –> 04:27:10,180 THE RISKS WE’RE SEEING BOTH IN
6704 04:27:08,478 –> 04:27:12,816 BUSINESS AND INDUSTRY?
6705 04:27:10,247 –> 04:27:14,117 SO, A LOT OF TIME SPENT ON THAT
6706 04:27:12,883 –> 04:27:16,119 AND AS THAT KNOWLEDGE IS BUILT
6707 04:27:14,184 –> 04:27:17,821 IT’S SHARING IT BACK AND FORTH
6708 04:27:16,186 –> 04:27:19,156 WITH MANAGEMENT TEAMS WITH
6709 04:27:17,888 –> 04:27:21,124 RELATIVE SUBSIDIARIES AND SORT
6710 04:27:19,222 –> 04:27:21,391 OF FINE TUNING IT IS REALLY THE
6711 04:27:21,191 –> 04:27:24,360 APPROACH.
6712 04:27:21,458 –> 04:27:26,629
BOTH OF THESE FELLOWS CAN
6713 04:27:24,427 –> 04:27:27,330 ABSORB INFORMATION TO AN
6714 04:27:26,696 –> 04:27:31,568 EXTRAORDINARY DEGREE.
6715 04:27:27,397 –> 04:27:32,702 I MEAN, THEY HAVE – FOR ONE
6716 04:27:31,635 –> 04:27:34,138 THING, THEY’RE TERRIBLY
6717 04:27:32,769 –> 04:27:37,807 INTERESTED IN IT.
6718 04:27:34,204 –> 04:27:40,544 AND IT’S THEIRS.
6719 04:27:37,874 –> 04:27:42,245 SO I’M AMAZED AT BOTH OF THEM,
6720 04:27:40,611 –> 04:27:45,148 THE DEGREE WITH WHICH THEY SORT
6721 04:27:42,312 –> 04:27:46,716 OF KNOW EVERYTHING.
6722 04:27:45,215 –> 04:27:49,753 AND – BUT THEY ENJOY IT.
6723 04:27:46,783 –> 04:27:50,520 THEY’RE NOT THINKING ABOUT
6724 04:27:49,820 –> 04:27:52,622 WHETHER THEY’LL GET THE NEXT JOB
6725 04:27:50,587 –> 04:27:54,291 THAT OPENS UP AT SOME HUGE MACE
6726 04:27:52,689 –> 04:27:57,027 OR ANYTHING LIKE THAT.
6727 04:27:54,358 –> 04:28:01,698 NOBODY LEAVES US, BASICALLY.
6728 04:27:57,094 –> 04:28:04,100 THE ONES WE WANT.
6729 04:28:01,765 –> 04:28:05,635 BUT YOU REALLY GOT TO KIND OF BE
6730 04:28:04,167 –> 04:28:07,470 IN LOVE WITH YOUR BUSINESS, AND
6731 04:28:05,702 –> 04:28:08,906 THAT MAKES A HUGE DIFFERENCE.
6732 04:28:07,537 –> 04:28:11,674 THAT MEANS THAT WE’VE GOT TO
6733 04:28:08,972 –> 04:28:14,878 HAVE THE CONDITIONS THAT ALLOW
6734 04:28:11,741 –> 04:28:17,247 THAT LOVE TO FLOURISH.
6735 04:28:14,945 –> 04:28:20,550 AND IT WOULDN’T FLOURISH UNDER
6736 04:28:17,314 –> 04:28:22,252 MANY – WITH MANY ORGANIZATIONS.
6737 04:28:20,617 –> 04:28:23,687
THIS QUESTION COMES FROM
6738 04:28:22,319 –> 04:28:25,088 ROBERT MILES IN NEBRASKA.
6739 04:28:23,754 –> 04:28:27,791 THE TRADING APPS, WHAT DO YOU
6740 04:28:25,155 –> 04:28:29,692 THINK ABOUT ROBIN HOOD AND OTHER
6741 04:28:27,858 –> 04:28:33,497 TRADING APPS OR FIN TECH
6742 04:28:29,759 –> 04:28:34,397 COMPANIES ALLOWING ALL AGES TO
6743 04:28:33,564 –> 04:28:36,432 PARTICIPATE IN THE STOCK MARKET?
6744 04:28:34,464 –> 04:28:38,668
WELL, I’M LOOKING FORWARD TO
6745 04:28:36,499 –> 04:28:40,670 READING THE S-1 ON ROBIN.
6746 04:28:38,735 –> 04:28:41,905 THAT’S A BIG THING YOU FILE WITH
6747 04:28:40,737 –> 04:28:45,308 THE S.E.C. WHEN YOU’RE GOING TO
6748 04:28:41,971 –> 04:28:51,881 BE OFFERING SECURITIES.
6749 04:28:45,375 –> 04:28:57,987 AND IT’S – YOU KNOW, IT’S
6750 04:28:51,948 –> 04:29:01,291 BECOME A VERY SIGNIFICANT PART
6751 04:28:58,054 –> 04:29:05,962 OF THE CASINO ASPECT, OF THE
6752 04:29:01,358 –> 04:29:07,564 CASINO GROUP THAT HAS JOINED
6753 04:29:06,029 –> 04:29:10,700 INTO THE STOCK MARKET IN THE
6754 04:29:07,631 –> 04:29:14,404 LAST YEAR OR YEAR AND A HALF.
6755 04:29:10,767 –> 04:29:16,073 AND I DO WANT TO SAY I WAS
6756 04:29:14,471 –> 04:29:17,574 CNCERNED ABOUT HOW THEY HAND IT
6757 04:29:16,139 –> 04:29:19,442 WILL SOURCE OF INCOME.
6758 04:29:17,641 –> 04:29:21,911 THEY SAY THEY DON’T CHARGE THE
6759 04:29:19,509 –> 04:29:26,416 CUSTOMER OR ANYTHING.
6760 04:29:21,978 –> 04:29:33,823 THIS WILL BE INTERESTING.
6761 04:29:26,483 –> 04:29:36,660 BUT THEY – THEY – HAVE
6762 04:29:33,890 –> 04:29:38,862 ATTRACTED – MAYBE SET OUT TO
6763 04:29:36,727 –> 04:29:41,364 ATTRACT, BUT THEY HAVE
6764 04:29:38,929 –> 04:29:46,002 ATTRACTED – I THINK I READ
6765 04:29:41,431 –> 04:29:48,672 WHERE 12% OR 13% OF THEIR CASINO
6766 04:29:46,069 –> 04:29:53,843 PARTICIPANTS WERE DEALING IN –
6767 04:29:48,739 –> 04:29:55,045 I LOOKED UP ON APP IT WILL
6768 04:29:53,910 –> 04:29:57,214 NU –
6769 04:29:55,112 –> 04:29:59,316 APPLE, THE NUMBER OF SEVEN-DAY
6770 04:29:57,281 –> 04:29:59,616 CALLS AND 1446 DAY CALLS
6771 04:29:59,383 –> 04:30:01,551 OUTSTANDING.
6772 04:29:59,683 –> 04:30:02,352 AND I’M SURE A LOT OF THAT IS ON
6773 04:30:01,618 –> 04:30:04,988 ROBIN HOOD.
6774 04:30:02,419 –> 04:30:05,255 THEY’RE GAMBLING ON THE PRICE OF
6775 04:30:05,055 –> 04:30:06,990 APPLE.
6776 04:30:05,322 –> 04:30:15,799 THERE’S NOTHING ILLEGAL ABOUT
6777 04:30:07,057 –> 04:30:18,101 IT, THERE’S NOTHING IMMORAL, BUT
6778 04:30:15,866 –> 04:30:20,637 I DON’T THINK YOU’D BUILD A
6779 04:30:18,168 –> 04:30:24,040 SOCIETY AROUND PEOPLE DOING IT.
6780 04:30:20,704 –> 04:30:25,475 IF A GROUP OF US LANDED ON A
6781 04:30:24,107 –> 04:30:26,909 DESERT ISLAND, KNEW WE WOULD
6782 04:30:25,542 –> 04:30:28,912 NEVER BE RESCUED AND I WAS ONE
6783 04:30:26,976 –> 04:30:31,581 OF THE GROUP AND SAID, I’LL SET
6784 04:30:28,978 –> 04:30:33,182 UP AN EXCHANGE OVER HERE AND
6785 04:30:31,648 –> 04:30:36,686 I’LL TRADE OUR CORN FUTURES AND
6786 04:30:33,249 –> 04:30:39,956 EVERYTHING AROUND IT, I THINK
6787 04:30:36,753 –> 04:30:44,361 THE DEGREE TO WHICH A VERY RICH
6788 04:30:40,023 –> 04:30:49,098 SOCIETY CAN REWARD PEOPLE WHO
6789 04:30:44,428 –> 04:30:50,500 KNOW HOW TO TAKE ADVANTAGE,
6790 04:30:49,165 –> 04:30:52,035 ESSENTIALLY, OF THE GAMBLING
6791 04:30:50,567 –> 04:30:54,204 INSTINCTS OF NOT ONLY THE
6792 04:30:52,102 –> 04:30:56,506 AMERICAN PUBLIC, THE WORLDWIDE
6793 04:30:54,271 –> 04:30:59,643 PUBLIC, IT, YOU KNOW, IT’S NOT
6794 04:30:56,573 –> 04:31:00,010 THE MOST ADMIRABLE PART OF THE
6795 04:30:59,710 –> 04:31:01,744 ACCOMPLISHMENT.
6796 04:31:00,077 –> 04:31:04,080 BUT I THINK WHAT AMERICANS
6797 04:31:01,811 –> 04:31:06,049 ACCOMPLISHED IS PRETTY ADMIRABLE
6798 04:31:04,147 –> 04:31:09,252 OVERALL.
6799 04:31:06,116 –> 04:31:10,954 AND I THINK ACTUALLY AMERICAN
6800 04:31:09,319 –> 04:31:12,922 CORPORATIONS HAVE TURNED OUT TO
6801 04:31:11,020 –> 04:31:15,358 BE A WONDERFUL PLACE FOR PEOPLE
6802 04:31:12,989 –> 04:31:17,393 TO PUT THEIR MONEY AND SAVE.
6803 04:31:15,425 –> 04:31:20,597 BUT THEY ALSO MAKE TERRIFIC
6804 04:31:17,460 –> 04:31:22,665 GAMBLING CHIPS, AND IF YOU CATER
6805 04:31:20,664 –> 04:31:24,067 TO THOSE GAMBLING CHIPS WHEN
6806 04:31:22,732 –> 04:31:25,601 PEOPLE HAVE MONEY IN THEIR
6807 04:31:24,134 –> 04:31:28,739 POCKET FOR THE FIRST TIME AND
6808 04:31:25,668 –> 04:31:34,077 YOU TELL THEM TAKE MY 30 OR 40
6809 04:31:28,805 –> 04:31:35,978 OR 50 TRADES A DAY AND YOU’RE
6810 04:31:34,144 –> 04:31:38,281 NOT CHARGING COMMISSION – I
6811 04:31:36,045 –> 04:31:39,649 HOPE WE DON’T HAVE MORE OF IT.
6812 04:31:38,347 –> 04:31:40,350 AND I WILL BE INTERESTED IN
6813 04:31:39,716 –> 04:31:43,586 READING THE PERSPECTIVES.
6814 04:31:40,417 –> 04:31:46,523 CHARLIE?
6815 04:31:43,653 –> 04:31:51,995
WELL, THAT IS REALLY WAVING
6816 04:31:46,590 –> 04:31:53,429 THE RED FLAG AT THE BULL.
6817 04:31:52,062 –> 04:31:56,566 IT’S JUST GOT AWFUL THAT
6818 04:31:53,496 –> 04:31:57,934 SOMETHING LIKE THAT WOULD DRAW
6819 04:31:56,633 –> 04:32:00,403 INVESTMENT FROM CIVILIZED MAN
6820 04:31:58,001 –> 04:32:08,111 AND DECENT CITIZENS.
6821 04:32:00,470 –> 04:32:09,946 IT’S DEEPLY WRONG.
6822 04:32:08,178 –> 04:32:13,817 WE DON’T WANT THE MAKE OUR MONEY
6823 04:32:10,013 –> 04:32:14,050 SELLING THINGS THAT ARE BAD FOR
6824 04:32:13,884 –> 04:32:16,953 PEOPLE.
6825 04:32:14,117 –> 04:32:18,088
BUT WE’VE GOT THE STATE DOING
6826 04:32:17,020 –> 04:32:19,322 IT WITH THE LOTTERY.
6827 04:32:18,154 –> 04:32:20,190
BUT THAT’S BAD, TOO.
6828 04:32:19,389 –> 04:32:20,924 THAT’S VERY BAD.
6829 04:32:20,257 –> 04:32:22,592 THAT’S VERY BAD.
6830 04:32:20,991 –> 04:32:24,060 THAT’S ONE OF THE THINGS THAT’S
6831 04:32:22,659 –> 04:32:26,996 WRONG WITH IT – IT’S GETTING
6832 04:32:24,126 –> 04:32:29,298 RESPECTABLE TO DO THESE THINGS.
6833 04:32:27,063 –> 04:32:29,632 THE STATES ARE JUST AS BAD AS
6834 04:32:29,365 –> 04:32:31,368 ROBIN HOOD.
6835 04:32:29,699 –> 04:32:31,768
WELL, IN A SENSE THEY’RE
6836 04:32:31,435 –> 04:32:34,704 WORSE.
6837 04:32:31,835 –> 04:32:36,339 I MEAN, THEY’RE REALLY TAXING.
6838 04:32:34,771 –> 04:32:36,539
I KNOW IT’S – I KNOW, I
6839 04:32:36,405 –> 04:32:40,009 KNOW.
6840 04:32:36,606 –> 04:32:42,278
THEY’RE TAXING HOPE.
6841 04:32:40,076 –> 04:32:44,848
NOT ONLY THAT –
6842 04:32:42,345 –> 04:32:46,148
AND THEY DON’T GET MUCH IN
6843 04:32:44,914 –> 04:32:47,884 THE WAY OF TAXES.
6844 04:32:46,215 –> 04:32:54,924
THE STATES IN AMERICA
6845 04:32:47,951 –> 04:32:56,259 REPLACED THE MAFIA AS THE P
6846 04:32:54,991 –> 04:32:56,960 PROPRIETOR OF THE NUMBERS GAME.
6847 04:32:56,326 –> 04:33:00,697 THAT’S WHAT HAPPENED.
6848 04:32:57,027 –> 04:33:03,833 THEY PUSHED THE MAFIA ASIDE AND
6849 04:33:00,764 –> 04:33:04,100 SAID, THAT’S OUR BUSINESS, NOT
6850 04:33:03,900 –> 04:33:05,969 YOURS.
6851 04:33:04,167 –> 04:33:06,269 DOESN’T MAKE ME PROUD OF OUR
6852 04:33:06,036 –> 04:33:08,538 GOVERNMENT.
6853 04:33:06,336 –> 04:33:11,908
WHEN I WAS A KID BY DAD WAS
6854 04:33:08,605 –> 04:33:14,577 IN CONGRESS AND THEY HAD A
6855 04:33:11,975 –> 04:33:18,515 NUMBERS RUNNER IN THE OFFICE.
6856 04:33:14,644 –> 04:33:22,218
I WILL ASK THE QUESTION.
6857 04:33:18,582 –> 04:33:23,653 FROM RAW MATERIAL PURCHASES BY
6858 04:33:22,285 –> 04:33:25,922 BERKSHIRE SUBSIDIARIES ARE YOU
6859 04:33:23,720 –> 04:33:26,422 SEEING SIGNS OF INFLATION
6860 04:33:25,989 –> 04:33:28,758 BEGINNING TO INCREASE?
6861 04:33:26,489 –> 04:33:32,028
LET ME ANSWER THAT AND THEN
6862 04:33:28,825 –> 04:33:33,897 GREG CAN GET MORE – WE’RE
6863 04:33:32,095 –> 04:33:35,198 SEEING SUBSTANTIAL INFLATION.
6864 04:33:33,963 –> 04:33:36,232 IT’S INTERESTING.
6865 04:33:35,265 –> 04:33:39,302 WE’RE RAISING PRICES.
6866 04:33:36,299 –> 04:33:40,870 PEOPLE ARE RAISING PRICES TO US.
6867 04:33:39,369 –> 04:33:46,910 AND IT’S BEING ACCEPTED.
6868 04:33:40,937 –> 04:33:49,045 I MEAN, IT’S NOT – IF WE GET –
6869 04:33:46,977 –> 04:33:49,312 WELL, YOU KNOW, TAKE-HOME
6870 04:33:49,112 –> 04:33:53,115 BUILDING.
6871 04:33:49,379 –> 04:33:55,117 THE COST OF – WE’VE GOT NINE
6872 04:33:53,182 –> 04:33:56,419 HOME BUILDERS IN ADDITION TO
6873 04:33:55,184 –> 04:33:57,620 MANUFACTURED HOUSING AND
6874 04:33:56,486 –> 04:34:00,723 OPERATION WHICH IS THE LARGEST
6875 04:33:57,687 –> 04:34:01,124 IN THE COUNTRY, SO WE REALLY DO
6876 04:34:00,790 –> 04:34:05,261 A LOT OF HOUSING.
6877 04:34:01,190 –> 04:34:06,696 THE COSTS ARE JUST UP, UP, UP.
6878 04:34:05,328 –> 04:34:08,131 STEEL COSTS.
6879 04:34:06,763 –> 04:34:11,267 YOU KNOW, JUST EVERY DAY THEY’RE
6880 04:34:08,198 –> 04:34:14,337 GOING UP.
6881 04:34:11,334 –> 04:34:15,905 AND THEY’RE HASN’T YET BEEN,
6882 04:34:14,404 –> 04:34:20,109 BECAUSE THE WAGE STUFF FOLLOWS.
6883 04:34:15,972 –> 04:34:21,110 I MEAN, IF THE UAW WRITES A
6884 04:34:20,176 –> 04:34:23,212 THREE-YEAR CONTRACT, YOU’VE GOT
6885 04:34:21,177 –> 04:34:25,548 A THREE-YEAR CONTRACT, BUT IF
6886 04:34:23,279 –> 04:34:27,250 YOU’RE BUYING STEEL AT GENERAL
6887 04:34:25,614 –> 04:34:30,687 MOTORS OR SOME PLACE YOU’RE
6888 04:34:27,317 –> 04:34:34,657 PAYING MORE EVERY DAY.
6889 04:34:30,754 –> 04:34:36,993 SO IT’S – IT’S AN ECONOMY
6890 04:34:34,724 –> 04:34:38,194 REALLY – IT’S RED-HOT.
6891 04:34:37,060 –> 04:34:42,298 AND WE WEREN’T EXPECTING IT.
6892 04:34:38,261 –> 04:34:46,168 ALL OF COMPANIES THEY THOUGHT
6893 04:34:42,365 –> 04:34:49,205 WHEN THEY WERE ALLOWED TO GO
6894 04:34:46,235 –> 04:34:51,107 BACK TO WORK OR OPERATIONS –
6895 04:34:49,272 –> 04:34:52,876 WHEN WE CLOSED THE FURNITURE
6896 04:34:51,174 –> 04:34:54,644 STORES, THEY WERE CLOSED FOR SIX
6897 04:34:52,943 –> 04:34:56,112 WEEKS OR SO ON AVERAGE, AND THEY
6898 04:34:54,711 –> 04:34:58,848 DIDN’T KNOW WHAT WAS GOING TO
6899 04:34:56,179 –> 04:35:00,316 HAPPEN WHEN THEY OPENED.
6900 04:34:58,915 –> 04:35:01,951 THEY CAN’T STOP PEOPLE FROM
6901 04:35:00,383 –> 04:35:03,386 BUYING THINGS.
6902 04:35:02,018 –> 04:35:05,288 AND WE CAN’T DELIVER THEM.
6903 04:35:03,453 –> 04:35:06,689 THEY SAY, THAT’S OKAY, NOBODY
6904 04:35:05,355 –> 04:35:08,057 ELSE CAN DELIVER THEM EITHER.
6905 04:35:06,756 –> 04:35:09,792 WE WAIT FOR THREE MONTHS.
6906 04:35:08,124 –> 04:35:11,928 THE BACKLOG GROWS.
6907 04:35:09,859 –> 04:35:14,597 AND THEN WE THOUGHT IT WOULD END
6908 04:35:11,995 –> 04:35:16,599 WHEN THE $600 PAYMENTED ENDED.
6909 04:35:14,664 –> 04:35:17,967 AROUND AUGUST OF LAST YEAR.
6910 04:35:16,666 –> 04:35:21,938 JUST KEPT GOING, AND IT KEEPS
6911 04:35:18,034 –> 04:35:22,138 GOING AND KEEPS GOING AND KEEPS
6912 04:35:22,005 –> 04:35:22,906 GOING.
6913 04:35:22,205 –> 04:35:25,408 AND I GET THE FIGURES.
6914 04:35:22,973 –> 04:35:28,111 EVERY WEEK I CALL OR HE CALLS ME
6915 04:35:25,475 –> 04:35:29,478 AND WE GO OVER DAY BY DAY WHAT
6916 04:35:28,178 –> 04:35:30,913 HAPPENED AT THREE DIFFERENT
6917 04:35:29,545 –> 04:35:31,848 SCORE STORES IN CHICAGO AND
6918 04:35:30,980 –> 04:35:33,283 KANSAS CITY, AND DALLAS.
6919 04:35:31,915 –> 04:35:35,585 AND IT JUST WON’T STOP.
6920 04:35:33,350 –> 04:35:39,522 PEOPLE HAVE MONEY IN THEIR
6921 04:35:35,651 –> 04:35:39,923 POCKET, AND THEY PAY HIGHER
6922 04:35:39,589 –> 04:35:41,958 PRICES.
6923 04:35:39,990 –> 04:35:45,161 AND WHEN CARPET PRICES GO UP IN
6924 04:35:42,025 –> 04:35:47,130 A MONTH OR TWO, HOUSE PRICE
6925 04:35:45,228 –> 04:35:47,597 INCREASE, ART COSTS ARE GOING
6926 04:35:47,197 –> 04:35:49,899 UP.
6927 04:35:47,664 –> 04:35:51,300 SUPPLY CHAINS ALL SCREWED UP FOR
6928 04:35:49,966 –> 04:36:02,378 ALL KINDS OF PEOPLE.
6929 04:35:51,367 –> 04:36:02,978 BUT IT’S ALMOST A BUYING FRIENZ,
6930 04:36:02,445 –> 04:36:03,212 EXCEPT CERTAIN PLACE US CAN’T
6931 04:36:03,045 –> 04:36:03,779 BUY YET.
6932 04:36:03,279 –> 04:36:04,013 YOU CAN’T BY INTERNATIONAL
6933 04:36:03,846 –> 04:36:04,713 TRAVEL.
6934 04:36:04,080 –> 04:36:05,581 SO MONEY IS BEING DIVERTED FROM
6935 04:36:04,780 –> 04:36:08,217 A PIECE OF THE ECONOMY INTO THE
6936 04:36:05,648 –> 04:36:11,020 REST AND EVERYBODY’S GOT MORE
6937 04:36:08,284 –> 04:36:14,023 CASH IN THEIR POCKET, EXCEPT FOR
6938 04:36:11,087 –> 04:36:15,825 MEANWHILE, YOU KNOW, IT’S A
6939 04:36:14,090 –> 04:36:16,626 TERRIBLE SITUATION FOR A
6940 04:36:15,892 –> 04:36:18,394 PERCENTAGE OF THE PEOPLE.
6941 04:36:16,693 –> 04:36:20,429 YOU KNOW, THIS SUIT – I HAVEN’T
6942 04:36:18,461 –> 04:36:22,498 WORN A SUIT, YOU KNOW, FOR A
6943 04:36:20,496 –> 04:36:24,800 YEAR PRACTICALLY, AND THAT MEANS
6944 04:36:22,565 –> 04:36:26,269 THAT THE DRY CLEANER JUST WENT
6945 04:36:24,867 –> 04:36:28,237 OUT OF BUSINESS.
6946 04:36:26,336 –> 04:36:30,073 NOBODY’S BRINGING IN SUITS TO
6947 04:36:28,304 –> 04:36:34,043 GET DRY CLEANED AND NOBODY’S
6948 04:36:30,139 –> 04:36:36,045 BRINGING IN WHITE SHIRTS TO
6949 04:36:34,110 –> 04:36:39,515 GET – THE SMALL BUSINESS
6950 04:36:36,112 –> 04:36:40,950 PERSON, IF YOU DIDN’T HAVE
6951 04:36:39,582 –> 04:36:43,086 TAKEOUT AND DELIVERY SERVICES
6952 04:36:41,017 –> 04:36:45,088 FOR RESTAURANTS, YOU GOT KILLED.
6953 04:36:43,152 –> 04:36:47,757 ON THE OTHER HAND, IF YOU’VE GOT
6954 04:36:45,155 –> 04:36:50,727 TAKEOUT FACILITIES THEN, YOU
6955 04:36:47,824 –> 04:36:52,862 KNOW, SALES ARE UP A WHOLE LOT.
6956 04:36:50,794 –> 04:36:56,132 THEY ADAPTED.
6957 04:36:52,929 –> 04:36:57,633 BUT IT’S – IT IS NOT A PRICE
6958 04:36:56,199 –> 04:37:00,636 SENSITIVE ECONOMY RIGHT NOW AT
6959 04:36:57,700 –> 04:37:03,439 IN LEAST, AND I DON’T KNOW
6960 04:37:00,703 –> 04:37:05,241 EXACTLY HOW ONE SHOWS UP IN
6961 04:37:03,506 –> 04:37:07,143 DIFFERENT PRICE INDICES.
6962 04:37:05,308 –> 04:37:09,812 BUT THERE’S MORE INFLATION GOING
6963 04:37:07,210 –> 04:37:12,181 ON, QUITE A BIT MORE INFLATION
6964 04:37:09,879 –> 04:37:14,717 GOING ON THAN PEOPLE WOULD HAVE
6965 04:37:12,248 –> 04:37:15,051 ANTICIPATED SIX MONTHS AGO OR
6966 04:37:14,784 –> 04:37:16,518 THEREABOUTS.
6967 04:37:15,117 –> 04:37:17,553
THERE’S ONE VERY INTELLIGENT
6968 04:37:16,585 –> 04:37:22,992 MAN WHO THINKS IT’S DANGEROUS,
6969 04:37:17,620 –> 04:37:25,094 AND THAT’S JUST THE START.
6970 04:37:23,059 –> 04:37:25,695
GREG, YOU PROBABLY ARE IN A
6971 04:37:25,161 –> 04:37:27,063 GOOD POSITION.
6972 04:37:25,761 –> 04:37:30,232
I THINK YOU TOUCH ON IT.
6973 04:37:27,130 –> 04:37:35,438 WHEN WE LOOK AT STEEL PRICES,
6974 04:37:30,299 –> 04:37:37,841 TIMBER PRICES, PETROLEUM OUTPUT,
6975 04:37:35,505 –> 04:37:39,242 FUNDAMENTALLY THERE’S PRESSURE
6976 04:37:37,907 –> 04:37:41,210 ON THE RAW MATERIALS.
6977 04:37:39,309 –> 04:37:43,612 I THINK YOU TOUCH ON SOMETHING,
6978 04:37:41,277 –> 04:37:46,749 WARREN, THERE’S A SCARCITY OF
6979 04:37:43,679 –> 04:37:47,016 PRODUCT OF CERTAIN RAW
6980 04:37:46,816 –> 04:37:48,651 MATERIALS.
6981 04:37:47,083 –> 04:37:51,187 IT’S IMPACTING PRICE AND ABILITY
6982 04:37:48,718 –> 04:37:52,889 TO DELIVER THE END PRODUCT, BUT
6983 04:37:51,254 –> 04:37:54,824 THAT SCARCITY FACTOR IS REAL OUT
6984 04:37:52,956 –> 04:37:55,892 THERE AS OUR BUSINESSES ADDRESS
6985 04:37:54,891 –> 04:37:59,695 THAT CHALLENGE.
6986 04:37:55,959 –> 04:38:03,299 AND IT MAY BE SOME OF THAT HAS
6987 04:37:59,762 –> 04:38:05,802 ARISEN FROM THE STORM WE
6988 04:38:03,366 –> 04:38:08,504 PREVIOUSLY DISCUSS IN THE TEXAS.
6989 04:38:05,869 –> 04:38:10,840 WHEN YOU TAKE DOWN.
6990 04:38:08,571 –> 04:38:12,775 THAT PLANTS, WE’RE SEEING IT IN
6991 04:38:10,907 –> 04:38:14,243 PRICE BUT OVERALL SCARCITY OF
6992 04:38:12,842 –> 04:38:14,577 PRODUCT, WHICH OBVIOUSLY GO
6993 04:38:14,310 –> 04:38:16,812 TOGETHER.
6994 04:38:14,644 –> 04:38:17,714 BUT THERE’S CHALLENGES, THAT’S
6995 04:38:16,879 –> 04:38:25,722 FOR SURE.
6996 04:38:17,781 –> 04:38:25,955
THIS QUESTION COMES FROM B.J.
6997 04:38:25,789 –> 04:38:28,791 CORALA.
6998 04:38:26,022 –> 04:38:31,661 WHAT DO YOU THINK OF KWANS?
6999 04:38:28,858 –> 04:38:31,994 JIM SIMONS – PROVES THAT IT
7000 04:38:31,728 –> 04:38:35,331 WORKS.
7001 04:38:32,061 –> 04:38:37,333 WOULD YOU CONSIDER HIRING A
7002 04:38:35,398 –> 04:38:37,500 LIEUTENANT TO WORK WITH TODD OR
7003 04:38:37,400 –> 04:38:39,769 TED?
7004 04:38:37,566 –> 04:38:41,771
I’LL SAY NO TO THE FIRST PART
7005 04:38:39,836 –> 04:38:41,971 AND PROBABLY KNOW TO THE SECOND
7006 04:38:41,837 –> 04:38:45,174 PART.
7007 04:38:42,038 –> 04:38:49,379
THAT’S RATHER INTERESTING.
7008 04:38:45,241 –> 04:38:51,614 THE THING IT DID FABULOUSLY ON
7009 04:38:49,445 –> 04:38:54,583 THE SHORT-TERM TRADING, THEY
7010 04:38:51,681 –> 04:38:56,552 FOUND LITTLE ALGORITHMS THAT
7011 04:38:54,650 –> 04:38:58,955 WORKED TO MAKE THEM – HAD
7012 04:38:56,619 –> 04:39:00,790 PREDICTIVE VALUE, AND AS LONG AS
7013 04:38:59,022 –> 04:39:02,792 THEY KEPT WORKING, THEY KEPT
7014 04:39:00,857 –> 04:39:04,093 DOING IT AS LONG AS THE MONEY
7015 04:39:02,859 –> 04:39:05,661 KEPT COMING IN.
7016 04:39:04,160 –> 04:39:08,063 THEY HAVE TO USE THE SAME SYSTEM
7017 04:39:05,728 –> 04:39:10,466 TO FIND SOME LITTLE ALGORITHM
7018 04:39:08,130 –> 04:39:12,034 I’M GOING MECHANICALLY FOR
7019 04:39:10,533 –> 04:39:14,170 LONG-TERM STOCK PREDICTIONS THE
7020 04:39:12,101 –> 04:39:15,871 RECORD WAS NOT NEARLY AS GOOD.
7021 04:39:14,237 –> 04:39:18,374 AND IN THE SHORT-TERM STUFF,
7022 04:39:15,938 –> 04:39:19,809 THEY FOUND IF THEY TRIED TO DO
7023 04:39:18,441 –> 04:39:20,376 IT TOO MUCH THEY DESTROYED THEIR
7024 04:39:19,876 –> 04:39:22,077 OWN ADVANTAGE.
7025 04:39:20,442 –> 04:39:22,678 THERE WAS A LIMIT ON THE AMOUNT
7026 04:39:22,144 –> 04:39:23,947 THEY COULD MAKE.
7027 04:39:22,745 –> 04:39:24,180
BUT THEY WERE VERY, VERY
7028 04:39:24,013 –> 04:39:26,716 SMART.
7029 04:39:24,247 –> 04:39:27,816
YES, THEY GOT VERY RICH.
7030 04:39:26,783 –> 04:39:30,853
VERY SMART.
7031 04:39:27,883 –> 04:39:33,756
VERY SMART AND VERY RICH AND
7032 04:39:30,920 –> 04:39:36,192 VERY HIGH GRADE, BY THE WAY.
7033 04:39:33,822 –> 04:39:37,460
BUT WE’RE NOT TRYING TO MAKE
7034 04:39:36,259 –> 04:39:39,495 MONEY TRADING STOCKS.
7035 04:39:37,526 –> 04:39:39,695 WE DON’T THINK WE KNOW HOW TO DO
7036 04:39:39,562 –> 04:39:41,497 IT.
7037 04:39:39,762 –> 04:39:43,365 IF WE KNEW HOW TO MAKE A LOT
7038 04:39:41,564 –> 04:39:45,067 MORE MONEY TRADING STOCKS WE’D
7039 04:39:43,432 –> 04:39:47,169 PROBABLY BE TRADING STOCKS, TOO,
7040 04:39:45,134 –> 04:39:48,871 BUT WE DON’T KNOW HOW TO DO IT
7041 04:39:47,236 –> 04:39:50,273 AND DON’T TRUST ANYBODY ELSE TO
7042 04:39:48,938 –> 04:39:51,173 DO IT FOR US.
7043 04:39:50,340 –> 04:39:52,541 IT’S THAT SIMPLE.
7044 04:39:51,240 –> 04:39:54,243
THIS QUESTION COMES FROM
7045 04:39:52,608 –> 04:39:58,081 RICHARD WARNER.
7046 04:39:54,310 –> 04:39:58,881 MR. BUFFET ESPOUSED FOR DECADES
7047 04:39:58,147 –> 04:40:00,950 THE PHILOSOPHY OF BUY AND HOLD
7048 04:39:58,948 –> 04:40:03,152 OR HOLD FOREVER WAS TOO SHORT OF
7049 04:40:01,017 –> 04:40:06,722 A TIME PERIOD.
7050 04:40:03,219 –> 04:40:11,694 WAS IT A MISCONCEPTION ON MY
7051 04:40:06,789 –> 04:40:16,365 PART OR HAVE THINGS CHANGED?
7052 04:40:11,761 –> 04:40:20,102 THERE SEEMS TO BE MORE EQUITY ON
7053 04:40:16,432 –> 04:40:22,605 THE PORTFOLIO LATELY.
7054 04:40:20,169 –> 04:40:23,539
I DON’T THINK IT’S CHANGED.
7055 04:40:22,671 –> 04:40:24,574
IT’S TOO MUCH.
7056 04:40:23,606 –> 04:40:25,541 IT’S THE SAME AMOUNT.
7057 04:40:24,640 –> 04:40:26,809 IT’S STILL TOO MUCH.
7058 04:40:25,608 –> 04:40:28,844
I’D AGREE WITH THAT.
7059 04:40:26,876 –> 04:40:30,312 THE TRUTH IS, WE OWN – OUR
7060 04:40:28,911 –> 04:40:34,918 BUSINESSES ARE EQUITIES, SO WE
7061 04:40:30,379 –> 04:40:36,886 OWN $400 BILLION OR
7062 04:40:34,984 –> 04:40:37,253 $500 BILLION, MAYBE MORE IN
7063 04:40:36,953 –> 04:40:38,988 BUSINESSES.
7064 04:40:37,320 –> 04:40:40,857 WE DON’T TURN THEM OVER AT ALL.
7065 04:40:39,055 –> 04:40:42,124 WE DON’T SELL BUSINESSES.
7066 04:40:40,924 –> 04:40:43,859 WE COULD PROBABLY – WE WON’T
7067 04:40:42,191 –> 04:40:47,329 EVEN GET INTO WHAT WE COULD DO,
7068 04:40:43,926 –> 04:40:51,200 BUT WE DON’T DO IT.
7069 04:40:47,396 –> 04:40:53,269 AND WE DO RELATIVELY – AS
7070 04:40:51,267 –> 04:41:01,277 CHARLIE SAYS WE’D DO BETTER IF
7071 04:40:53,336 –> 04:41:04,447 WE – NOT WE – IF I’D DUMP US.
7072 04:41:01,344 –> 04:41:06,882
THIS IS FROM DANIEL GAUTHIER.
7073 04:41:04,514 –> 04:41:08,918 WARREN BUFFET’S 2013 LETTER IN
7074 04:41:06,949 –> 04:41:09,852 MIDDLE OF PAGE 21 MADE A
7075 04:41:08,985 –> 04:41:12,021 PREDICTION THAT THE IN THE NEXT
7076 04:41:09,919 –> 04:41:12,288 DECADE YOU’LL SEE BAD NEWS ABOUT
7077 04:41:12,088 –> 04:41:14,957 PENSIONS.
7078 04:41:12,355 –> 04:41:16,959 GIVEN RECENT EVENTS LIKE
7079 04:41:15,024 –> 04:41:18,494 COVID-19 AND THAT 2023 IS TWO
7080 04:41:17,026 –> 04:41:20,729 YEARS AWAY, WOULD MR. BUFFET
7081 04:41:18,561 –> 04:41:22,565 LIKE TO COMMENT OR ARE A VISE
7082 04:41:20,796 –> 04:41:26,402 HIS PREDICTION?
7083 04:41:22,632 –> 04:41:27,570 CAN COVID-19 ELIMINATE, DELAY,
7084 04:41:26,469 –> 04:41:29,505 ACCELERATE OR NOT CHANGE IT?
7085 04:41:27,637 –> 04:41:34,744
WELL, IN A TERRIBLE WAY,
7086 04:41:29,572 –> 04:41:36,779 COVID IMPROVES THE PENSION
7087 04:41:34,811 –> 04:41:38,581 POSITION, BECAUSE IT’S – YOU
7088 04:41:36,846 –> 04:41:41,050 KNOW, YOU HAVE LESS PENSIONERS.
7089 04:41:38,648 –> 04:41:43,886 BUT THE PENSION SITUATION IS
7090 04:41:41,117 –> 04:41:46,722 TERRIBLE IN A GREAT MANY STATES.
7091 04:41:43,953 –> 04:41:49,391 IT’S NOT IS BAD AT THE – LEVEL.
7092 04:41:46,789 –> 04:41:52,795 THERE ARE SOME MULTIEMPLOYER
7093 04:41:49,458 –> 04:41:55,965 PLANS THAT HAVE GOT PROBLEMS,
7094 04:41:52,862 –> 04:41:57,299 BUT BASICALLY IT’S A TERRIBE
7095 04:41:56,032 –> 04:41:59,402 PROBLEM IN SOME STATES AND
7096 04:41:57,366 –> 04:42:00,402 STATES ARE GOING TO GO TO
7097 04:41:59,469 –> 04:42:02,438 WASHINGTON AND SAY, WE WANT TO
7098 04:42:00,469 –> 04:42:03,572 GET A LOT OF MONEY BECAUSE WE
7099 04:42:02,505 –> 04:42:05,141 HAD THESE TERRIBLE THINGS HAPPEN
7100 04:42:03,639 –> 04:42:08,143 TO US DURING THE PANDEMIC, WHICH
7101 04:42:05,208 –> 04:42:09,979 THEY DID, BUT SOME OF THOSE
7102 04:42:08,210 –> 04:42:10,713 STATES ARE ENORMOUS PENSION
7103 04:42:10,046 –> 04:42:10,980 DEFICITS, AND THEY’LL COME
7104 04:42:10,780 –> 04:42:13,416 AGAIN.
7105 04:42:11,047 –> 04:42:15,985 IF THEY GET A CHECK ONCE.
7106 04:42:13,483 –> 04:42:18,421 IT MAY TURN OUT TO BE A FEDERAL
7107 04:42:16,052 –> 04:42:20,289 OBLIGATION, DE FACTO OR
7108 04:42:18,488 –> 04:42:22,925 SOMETHING, THAT A STATE – IT
7109 04:42:20,356 –> 04:42:26,595 HAS NOT GOTTEN BETTER.
7110 04:42:22,992 –> 04:42:29,999 IT HAS NOT GOTTEN BETTER AT ALL,
7111 04:42:26,662 –> 04:42:31,667 OBVIOUSLY, AND TO A CERTAIN
7112 04:42:30,066 –> 04:42:33,369 EXTENT, THE PENSION MANAGERS GET
7113 04:42:31,734 –> 04:42:35,270 MORE AND MORE DESPERATE AS
7114 04:42:33,436 –> 04:42:37,239 INTEREST RATES GO DOWN, SO
7115 04:42:35,337 –> 04:42:39,608 THEY’LL LISTEN TO ALMOST ANYBODY
7116 04:42:37,306 –> 04:42:41,577 THAT PROMISES THEM – THEY’VE
7117 04:42:39,675 –> 04:42:43,145 ALWAYS HAD THAT TENDENCY, BUT
7118 04:42:41,644 –> 04:42:44,313 THEY’LL LISTEN TO PEOPLE THAT
7119 04:42:43,212 –> 04:42:46,148 PROMISE THEM THEY’RE GOING TO
7120 04:42:44,380 –> 04:42:47,183 ONE WAY OR ANOTHER SOLVE THEIR
7121 04:42:46,215 –> 04:42:49,085 PROBLEM FOR THEM, AND THAT ISN’T
7122 04:42:47,250 –> 04:42:51,653 GOING TO WORK.
7123 04:42:49,152 –> 04:42:54,356 SO IT’S A BIG, BIG, BIG PROBLEM,
7124 04:42:51,720 –> 04:42:57,626 AND OF COURSE THE REAL PROBLEM
7125 04:42:54,423 –> 04:43:00,563 IS – LET’S JUST TAKE A
7126 04:42:57,693 –> 04:43:03,032 HYPOTHETICAL STATE THAT HAS A
7127 04:43:00,629 –> 04:43:04,800 HUGE PENSION DEFICIT AND MAYBE
7128 04:43:03,099 –> 04:43:06,301 EVEN HAVE A LOST OF LIVING
7129 04:43:04,867 –> 04:43:07,469 FACTOR IN IT, WHICH IS REALLY
7130 04:43:06,368 –> 04:43:08,904 GOING TO BE A KILLER.
7131 04:43:07,536 –> 04:43:09,605 AND YOU CAN MOVE IF YOU’RE AN
7132 04:43:08,971 –> 04:43:11,407 INDIVIDUAL.
7133 04:43:09,672 –> 04:43:14,076 CHARLIE WON’T MOVE TO SAVE THAT.
7134 04:43:11,474 –> 04:43:15,043 HE’S NOT GOING TO MOVE TO NEVADA
7135 04:43:14,143 –> 04:43:16,745 OR SOME PLACE.
7136 04:43:15,110 –> 04:43:18,347 BUT YOU CAN MOVE IF YOU’RE AN
7137 04:43:16,812 –> 04:43:19,348 INDIVIDUAL TO SOME DEGREE.
7138 04:43:18,414 –> 04:43:22,584 PARTICULARLY IF YOU’RE RICH AND
7139 04:43:19,415 –> 04:43:24,553 OLD AND RETIRED, AND YOU CAN
7140 04:43:22,651 –> 04:43:26,021 ACTUALLY TAKE AWAY AN ASSET FROM
7141 04:43:24,620 –> 04:43:31,260 THAT KIND OF ENVIRONMENT AND
7142 04:43:26,088 –> 04:43:32,628 GIVE IT TO ANOTHER TATESTATE TH
7143 04:43:31,327 –> 04:43:33,829 DOESN’T NEED IT THAT MUCH.
7144 04:43:32,695 –> 04:43:35,698 YOU’LL GET ADVERSE SELECTION
7145 04:43:33,896 –> 04:43:36,866 OVER TIME.
7146 04:43:35,765 –> 04:43:39,969 BUT IF YOU’RE A COMPANY AND PUT
7147 04:43:36,933 –> 04:43:43,872 A PLANT THERE, YOU CAN’T MOVE
7148 04:43:40,036 –> 04:43:45,774 THE PLANT IN 5, 10, 20 YEARS.
7149 04:43:43,939 –> 04:43:50,145 AS THE TAXABLE BASE OF
7150 04:43:45,841 –> 04:43:50,946 INDIVIDUALS FALLS DOWN, SHRIMPL
7151 04:43:50,212 –> 04:43:53,315 BECAUSE PEOPLE SELECT OUT OF
7152 04:43:51,013 –> 04:43:55,418 BEING A PART OF THE POPULATION,
7153 04:43:53,382 –> 04:43:56,552 YOU CAN’T SELECT OUT OF BEING A
7154 04:43:55,485 –> 04:43:58,287 CORPORATION, SO YOU HAVE TO BE
7155 04:43:56,619 –> 04:44:00,089 VERY CAREFUL AND THINK A LONG
7156 04:43:58,354 –> 04:44:02,458 TIME BEFORE YOU GO AND A STATE
7157 04:44:00,156 –> 04:44:03,359 WITH A HUGE PENSION DEFICIT AND
7158 04:44:02,525 –> 04:44:04,493 DECLINING POPULATION BECAUSE
7159 04:44:03,425 –> 04:44:06,528 YOU’RE GOING TO HAVE THE LAST
7160 04:44:04,560 –> 04:44:08,130 MAN LEFT AND THE PENSIONS WON’T
7161 04:44:06,595 –> 04:44:09,398 GO AWAY.
7162 04:44:08,197 –> 04:44:11,700 AND I DON’T THINK – WELL,
7163 04:44:09,465 –> 04:44:12,902 ANYBODY WITH A SHORT-TERM
7164 04:44:11,767 –> 04:44:13,102 OUTLOOK DOESN’T WORRY ABOUT
7165 04:44:12,969 –> 04:44:14,970 THAT.
7166 04:44:13,169 –> 04:44:16,105 JUST GET ME PAST THE NEXT
7167 04:44:15,037 –> 04:44:18,741 ELECTION AND I’M ALL RIGHT ON
7168 04:44:16,172 –> 04:44:22,311 THAT ONE.
7169 04:44:18,808 –> 04:44:25,914 BUT THE – WE DON’T WANT TO
7170 04:44:22,377 –> 04:44:27,450 BE – WE’RE NOT GOING TO –
7171 04:44:25,981 –> 04:44:29,952 PLANTS AROUND 50 YEARS IN SOME
7172 04:44:27,517 –> 04:44:34,089 PLACE, WHERE THE POPULATION GETS
7173 04:44:30,019 –> 04:44:35,725 HALVED AND THE RICHER PART GETS
7174 04:44:34,156 –> 04:44:37,693 CUT EVEN MORE DRAMATICALLY.
7175 04:44:35,792 –> 04:44:39,295 AND WE’VE STILL GOT A VALUABLE
7176 04:44:37,760 –> 04:44:39,562 PLANT THERE AND GOT TO KEEP
7177 04:44:39,362 –> 04:44:40,830 OPERATING.
7178 04:44:39,629 –> 04:44:50,106 ONE WAY OR THE OTHER, IT’S NOT
7179 04:44:40,897 –> 04:44:51,874 GOING TO BE A GOOD PLACE TO BE.
7180 04:44:50,173 –> 04:44:53,843
WE’RE ALMOST OUT OF TIME SO
7181 04:44:51,941 –> 04:44:57,946 I’LL MAKE THE LAST QUESTION.
7182 04:44:53,909 –> 04:44:59,114
THAT’S A GOOD ANSWER.
7183 04:44:58,013 –> 04:45:01,216 MY OLD HARVARD LAW PROFESSOR
7184 04:44:59,181 –> 04:45:04,019 USED TO SAY, LET ME KNOW WHAT
7185 04:45:01,283 –> 04:45:04,553 YOUR PROBLEM IS AND I’LL MAKE IT
7186 04:45:04,086 –> 04:45:05,621 MORE DIFFICULT FOR YOU.
7187 04:45:04,620 –> 04:45:05,888
THIS IS FOR WARREN AND
7188 04:45:05,688 –> 04:45:07,890 CHARLIE.
7189 04:45:05,955 –> 04:45:09,791 I HAVE ONE QUESTION, WHICH IS
7190 04:45:07,957 –> 04:45:12,895 INSPIRED BY CHARLIE’S MANTRA,
7191 04:45:09,858 –> 04:45:13,929 YOU HAVE TO BE A CONTINUOUS
7192 04:45:12,962 –> 04:45:14,263 LEARNING MACHINE.
7193 04:45:13,996 –> 04:45:16,298 H
7194 04:45:14,329 –> 04:45:17,466 HERE’S MY QUESTION – WHAT’S THE
7195 04:45:16,365 –> 04:45:18,868 BIGGEST LESSON BOTH OF YOU
7196 04:45:17,533 –> 04:45:20,369 LEARNED OVER THE LAST YEAR?
7197 04:45:18,935 –> 04:45:24,974
MY BIGGEST LESSON HAS BEEN TO
7198 04:45:20,435 –> 04:45:27,576 LISTEN MORE TO CHARLIE.
7199 04:45:25,041 –> 04:45:28,344
HE’S BEEN RIGHT ON SOME
7200 04:45:27,643 –> 04:45:30,579 THINGS I HAVE BEEN WRONG ON.
7201 04:45:28,410 –> 04:45:31,446
IF YOU’RE IN THE A LITTLE
7202 04:45:30,646 –> 04:45:36,051 CONFUSED BY WHAT’S GOING ON, YOU
7203 04:45:31,513 –> 04:45:38,354 DON’T UNDERSTAND IT.
7204 04:45:36,118 –> 04:45:39,521 IT’S JUST – WE’RE IN SORT OF
7205 04:45:38,421 –> 04:45:42,591 UNCHARTED TERRITORY.
7206 04:45:39,588 –> 04:45:43,626
WE ENJOY, IN A CRAZY WAY,
7207 04:45:42,658 –> 04:45:49,865 ACTUALLY SEEING WHAT HAPPENS.
7208 04:45:43,693 –> 04:45:50,966 I MEAN, AND THIS HAS MADE US
7209 04:45:49,932 –> 04:45:52,567 HALFWAY THROUGH THE MOVIE MUST
7210 04:45:51,033 –> 04:46:08,350 HAVE MORE INTERESTED.
7211 04:45:52,634 –> 04:46:12,788 THIS IS AN UNUSUAL MOVIE.
7212 04:46:08,417 –> 04:46:15,490 WE MAY DISAPPOINT PEOPLE, BUT WE
7213 04:46:12,855 –> 04:46:17,226 DON’T – AND WE’VE SEEN SOME
7214 04:46:15,557 –> 04:46:21,263 STRANGE THINGS HAPPEN IN THE
7215 04:46:17,293 –> 04:46:22,531 WORLD IN THE LAST YEAR, 15
7216 04:46:21,330 –> 04:46:23,799 MONTHS, AND WE’VE ALWAYS
7217 04:46:22,598 –> 04:46:27,803 RECOGNIZED THAT FACT THAT
7218 04:46:23,866 –> 04:46:28,037 STRANGER THINGS ARE GOING THE
7219 04:46:27,870 –> 04:46:30,606 HAPPEN.
7220 04:46:28,103 –> 04:46:33,442 I WOULD SAY IF ANYTHING IT’S
7221 04:46:30,673 –> 04:46:34,676 REINFORCED OUR DESIRE TO FIGURE
7222 04:46:33,509 –> 04:46:38,213 OUT EVERYTHING POSSIBLE WE CAN
7223 04:46:34,743 –> 04:46:40,315 DO THE MAKE SURE THAT BERKSHIRE
7224 04:46:38,280 –> 04:46:41,483 IS 50 OR 100 YEARS FROM NOW,
7225 04:46:40,382 –> 04:46:42,117 EVERY BIT THE ORGANIZATION AND
7226 04:46:41,550 –> 04:46:59,001 THEN SOME THAT IT IS NOW.
7227 04:46:42,184 –> 04:46:59,001 CHARLIE?
7228 04:46:59,201 –> 04:47:02,438
OF COURSE THAT’S THE IDEA.
7229 04:47:01,137 –> 04:47:05,474 IT’S PRETTY LIKELY TO WORK.
7230 04:47:02,505 –> 04:47:05,741
BECKY, IS THAT THE LAST
7231 04:47:05,541 –> 04:47:06,808 QUESTION?
7232 04:47:05,808 –> 04:47:08,844
OKAY, WELL, IN THIS CASE
7233 04:47:06,875 –> 04:47:10,946 WE’LL MOVE ON TO THE MEETING.
7234 04:47:08,911 –> 04:47:11,580 THE OTHER THREE FELLOWS HERE CAN
7235 04:47:11,013 –> 04:47:13,215 LEAVE.
7236 04:47:11,647 –> 04:47:13,482 IT’S NOT GOING TO BE THAT
7237 04:47:13,282 –> 04:47:16,685 EXCITING.
7238 04:47:13,549 –> 04:47:16,952 BUT WE’VE GOT A SCRIPT HERE EVEN
7239 04:47:16,752 –> 04:47:21,456 SOMEWHAT.
7240 04:47:17,019 –> 04:47:22,691 I DON’T LIKE SCRIPTS BUT – NOT
7241 04:47:21,523 –> 04:47:30,098 MY NATURE.
7242 04:47:22,758 –> 04:47:32,167 AND ONE OF THE PROPOSERS OF THE
7243 04:47:30,165 –> 04:47:43,679 TWO ITEMS ON THE PROXY IS HERE
7244 04:47:32,234 –> 04:47:44,246 IN THE BUILDING TO PRESENT HIS
7245 04:47:43,746 –> 04:47:47,016 ARGUMENT.
7246 04:47:44,313 –> 04:47:48,183 WE’LL GET TO THAT IN JUST A
7247 04:47:47,083 –> 04:47:51,086 MINUTE.
7248 04:47:48,250 –> 04:47:53,455 WE OFFERED – EITHER COULD.
7249 04:47:51,153 –> 04:47:56,725 I’M HAPPY ONE OF THEM CAME.
7250 04:47:53,522 –> 04:47:58,060 SO HERE WE GO, AND MEETING WILL
7251 04:47:56,792 –> 04:48:00,195 NOW COME TO ORDER.
7252 04:47:58,127 –> 04:48:02,164 I AM WARREN BUFFET.
7253 04:48:00,262 –> 04:48:03,265 NOT THAT YOU DIDN’T KNOW AT THIS
7254 04:48:02,231 –> 04:48:03,966 TIME, THE CHAIRMAN OF THE BORDER
7255 04:48:03,332 –> 04:48:07,403 DIRECTORS OF THE COMPANY.
7256 04:48:04,033 –> 04:48:10,539 I WELCOME YOU TO THE 2021 ANNUAL
7257 04:48:07,470 –> 04:48:16,178 MEETING OF SHAREHOLDERS.
7258 04:48:10,606 –> 04:48:16,578 CHAIRMAN WILL MAKE A WRITTEN
7259 04:48:16,245 –> 04:48:21,784 RECORD.
7260 04:48:16,645 –> 04:48:25,754 REBECCA HAMMOCK WILL CERTIFY THE
7261 04:48:21,851 –> 04:48:33,295 VOTES CAST.
7262 04:48:25,821 –> 04:48:35,197 THE NAME PROXY HOLDERS WITH
7263 04:48:33,362 –> 04:48:36,599 RETA ARE
7264 04:48:35,264 –> 04:48:37,799 WALTER SCOTT AND MARK –
7265 04:48:36,665 –> 04:48:39,401
YES, I DO.
7266 04:48:37,866 –> 04:48:41,737 AS INDICATED IN THE PROXY
7267 04:48:39,468 –> 04:48:43,572 STATEMENT THAT ACCOMPANIED THE
7268 04:48:41,804 –> 04:48:45,574 NOTE OF THIS MEETING THAT WAS
7269 04:48:43,639 –> 04:48:49,678 SENT TO ALL SHAREHOLDERS OF
7270 04:48:45,641 –> 04:48:53,281 RECORD ON MARCH 3, 2021, 1
7271 04:48:49,745 –> 04:48:58,019 RECORD DAY FOR THIS MEETING
7272 04:48:53,348 –> 04:49:01,357 THERE WERE 37,600,000 – WITH
7273 04:48:58,086 –> 04:49:03,825 EACH ENTITLED TO ONE VOTE ON
7274 04:49:01,423 –> 04:49:09,798 MOTION CONSIDERED AT THE MEETING
7275 04:49:03,892 –> 04:49:12,667 AND 1,000,000,335 MILLION SHARES
7276 04:49:09,865 –> 04:49:15,571 OF CLASS “B” BERKSHIRE HATHAWAY
7277 04:49:12,734 –> 04:49:18,140 OUTSTANDING WITH EACH SHARE
7278 04:49:15,638 –> 04:49:20,009 ENHIT TOLD 1 THOUSANDTH OF ONE
7279 04:49:18,207 –> 04:49:21,844 VEHICLE CODE ON MOTIONS
7280 04:49:20,075 –> 04:49:32,187 CONSIDERED AT THE MEETING.
7281 04:49:21,911 –> 04:49:32,854 OF THAT NUMBER – 343 MILLION,
7282 04:49:32,253 –> 04:49:35,390 442,000 CLASS “B” SHARES ARE
7283 04:49:32,921 –> 04:49:36,425 REPRESENTED AT THIS MEETING BY
7284 04:49:35,457 –> 04:49:38,160 PROXIES RETURNED THROUGH
7285 04:49:36,492 –> 04:49:40,162 THURSDAY EVENING APRIL 29th.
7286 04:49:38,226 –> 04:49:43,265
THANK YOU.
7287 04:49:40,229 –> 04:49:46,201 THAT NUMBER REPRESENTS A – AND
7288 04:49:43,332 –> 04:49:46,635 WE’LL THEREFORE DIRECTLY
7289 04:49:46,268 –> 04:49:47,836 PROCEED.
7290 04:49:46,702 –> 04:49:51,206 FIRST BUSINESS WILL BE READING
7291 04:49:47,903 –> 04:49:52,575 OF THE MINUTES OF LAST MEETING.
7292 04:49:51,273 –> 04:49:54,509
I MOVE THAT THE READING OF
7293 04:49:52,641 –> 04:49:57,512 THE MINUTES OF THE LAST MEETING
7294 04:49:54,576 –> 04:49:58,781 OF SHAREHOLDERS BE DISPENSED
7295 04:49:57,579 –> 04:49:59,048 WITH AND THE MINUTES BE
7296 04:49:58,848 –> 04:50:01,249 APPROVED.
7297 04:49:59,115 –> 04:50:03,618
DO I HEAR A SECOND?
7298 04:50:01,316 –> 04:50:04,085
I SECOND THE MOTION.
7299 04:50:03,685 –> 04:50:08,056
MOTION IS CARRIED.
7300 04:50:04,152 –> 04:50:08,590 THE NEXT ITEM IS TO ELECT
7301 04:50:08,123 –> 04:50:08,857 DIR
7302 04:50:08,656 –> 04:50:09,925 DIRECTORS.
7303 04:50:08,923 –> 04:50:11,393 I RECOGNIZE DEBBIE TO PUT A
7304 04:50:10,025 –> 04:50:14,763 MOTION BEFORE THE MEETING.
7305 04:50:11,459 –> 04:50:17,900
I MOVE THAT WARREN BUFFET,
7306 04:50:14,829 –> 04:50:21,036 CHARLES MUNGER, GREGORY ABEL.
7307 04:50:17,967 –> 04:50:24,440 HOWARD BUFFET, STEVEN BURKE,
7308 04:50:21,103 –> 04:50:25,908 KENNETH SHINAUTL, CHARLOTTE
7309 04:50:24,507 –> 04:50:29,778 GUYMAN.
7310 04:50:25,975 –> 04:50:31,580 AJIT JAIN, THOMAS MURPHY, RONALD
7311 04:50:29,845 –> 04:50:33,115 OLSON, WALTER SCOTT, AND MERRILL
7312 04:50:31,647 –> 04:50:34,449 WHITMER BE ELECTED AS DIRECTORS.
7313 04:50:33,182 –> 04:50:36,285
I SECOND THE MOTION.
7314 04:50:34,516 –> 04:50:37,820
IT HAS BEEN MOVED AND
7315 04:50:36,351 –> 04:50:38,520 SECONDED.
7316 04:50:37,887 –> 04:50:40,456 14 INDIVIDUALS NAMED IN THE
7317 04:50:38,586 –> 04:50:43,191 MOTION BE ELECTED AS DIRECTORS.
7318 04:50:40,522 –> 04:50:44,126 THE NOMINATIONS ARE READY TO BE
7319 04:50:43,258 –> 04:50:45,661 ACTED UPON.
7320 04:50:44,193 –> 04:50:48,230 WHEN YOU ARE READY YOU MAY
7321 04:50:45,728 –> 04:50:50,365 PROVIDE THE VOTING RESULTS FROM
7322 04:50:48,297 –> 04:50:54,870 THE PRELIMINARY REPORT.
7323 04:50:50,432 –> 04:50:56,905
MS. HAMMOCK REPORTED THAT –
7324 04:50:54,937 –> 04:51:02,777 RESPONSE TO LAST THURSDAY
7325 04:50:56,972 –> 04:51:04,413 EVENING CAST NOT LESS THAN
7326 04:51:02,844 –> 04:51:06,014 363,464 VOTES FOR EACH NOMINEE.
7327 04:51:04,479 –> 04:51:07,682 THE REPORT ALSO STATES THAT
7328 04:51:06,081 –> 04:51:10,785 EXCEEDS A MAJORITY OF THE NUMBER
7329 04:51:07,749 –> 04:51:12,154 OF TOTAL VOTES OF ALL CLASS “A”
7330 04:51:10,852 –> 04:51:12,454 AND CLASS “B” SHARES
7331 04:51:12,221 –> 04:51:15,090 OUTSTANDING.
7332 04:51:12,521 –> 04:51:17,125 THE REPORT ALSO STATES THAT THE
7333 04:51:15,157 –> 04:51:18,594 CERTIFICATION REQUIRED BY
7334 04:51:17,192 –> 04:51:20,529 DELAWARE LAW OF THE PRECISE
7335 04:51:18,660 –> 04:51:22,764 COUNT OF THE VOTES WILL BE
7336 04:51:20,596 –> 04:51:24,032 PLACED WITH THE MINUTES OF THIS
7337 04:51:22,831 –> 04:51:25,567 MEETING.
7338 04:51:24,099 –> 04:51:26,468
THANK YOU.
7339 04:51:25,634 –> 04:51:30,105 14 NOMINEES HAVE BEEN ELECTED AS
7340 04:51:26,535 –> 04:51:31,740 DIRECTORS.
7341 04:51:30,172 –> 04:51:34,709 THE NEXT TWO ITEMS OF BUSINESS
7342 04:51:31,807 –> 04:51:36,678 RELATE TO TWO SHAREHOLDER
7343 04:51:34,776 –> 04:51:39,214 PROPOSALS EACH SET FORTH IN THE
7344 04:51:36,745 –> 04:51:42,584 PROXY STATEMENT THAT CAN BE
7345 04:51:39,281 –> 04:51:43,051 ACCESSED AT
7346 04:51:42,651 –> 04:51:45,487 BERKSHIREHATHAWAY.COM.
7347 04:51:43,118 –> 04:51:47,890 IF YOU HAVEN’T READ THE
7348 04:51:45,553 –> 04:51:48,524 PROPOSALS GO TO
7349 04:51:47,957 –> 04:51:49,658 BERKSHIREHATHAWAY.COM BECAUSE
7350 04:51:48,591 –> 04:51:51,660 THEY’RE INTERESTING PROPOSALS
7351 04:51:49,725 –> 04:51:53,395 AND THE PROPONENTS VIEWS ARE SET
7352 04:51:51,727 –> 04:51:54,830 FORTH AND OURS ARE SET FORTHING
7353 04:51:53,461 –> 04:51:56,899 AND I WELCOME YOU READING IT.
7354 04:51:54,897 –> 04:52:00,135 THE FIRST PROPOSAL REQUESTS THE
7355 04:51:56,966 –> 04:52:02,537 COMPANY PUBLISH AN ANNUAL
7356 04:52:00,202 –> 04:52:04,139 ASSESSMENT ON HOW TO COMPANY
7357 04:52:02,604 –> 04:52:05,373 MANAGES CLIMATE RELATED RISKS
7358 04:52:04,206 –> 04:52:06,241 AND OPPORTUNITIES THE DIRECTORS
7359 04:52:05,440 –> 04:52:08,276 HAVE RECOMMENDED.
7360 04:52:06,308 –> 04:52:09,645 THE SHAREHOLDERS VOTE AGAINST
7361 04:52:08,343 –> 04:52:16,384 THE PROPOSAL.
7362 04:52:09,712 –> 04:52:17,018 I WILL NOW RECOGNIZE TIM UMANS,
7363 04:52:16,451 –> 04:52:25,727 A REPRESENTATIVE TO PRESENT TO
7364 04:52:17,085 –> 04:52:27,295 PROPOSAL.
7365 04:52:25,794 –> 04:52:29,130
I THINK WE’RE CONNECTED UP.
7366 04:52:27,362 –> 04:52:33,135
I THANK THE CHAIR, THE BOARD
7367 04:52:29,197 –> 04:52:33,669 AND FEDERAL SHAREHOLDERS I’M TIM
7368 04:52:33,202 –> 04:52:36,471 YOMANS.
7369 04:52:33,736 –> 04:52:39,274 HERE TODAY ON BEHALF OF ITEM TWO
7370 04:52:36,538 –> 04:52:42,611 CORESPONSERS FEDERATED MERMES,
7371 04:52:39,341 –> 04:52:47,883 CAL PERS, THE CALIFORNIA PUBLIC
7372 04:52:42,678 –> 04:52:49,618 EMPLOYEES RETIREMENT SYSTEM AND
7373 04:52:47,950 –> 04:52:51,119 CDPQ AND OUR COMBINED MILLIONS
7374 04:52:49,684 –> 04:52:52,954 OF ULTIMATE BENEFICIARIES.
7375 04:52:51,186 –> 04:52:54,823 FOR WELL MORE THAN A YEAR, THE
7376 04:52:53,021 –> 04:52:58,226 PARENT COMPANY HAS BEEN
7377 04:52:54,890 –> 04:52:59,895 UNRESPONSIVE TO THE COSPONSOR’S
7378 04:52:58,293 –> 04:53:01,563 REQUESTS THE DISCUSS THE PARENT
7379 04:52:59,962 –> 04:53:03,031 COMPANY’S LACK OF CLIMATE
7380 04:53:01,630 –> 04:53:04,633 RELATED FINANCIAL DISCLOSURES.
7381 04:53:03,098 –> 04:53:05,667 IN ORDER TO HAVE SOME KIND OF
7382 04:53:04,700 –> 04:53:08,436 DIALOGUE WITH THE PARENT COMPANY
7383 04:53:05,734 –> 04:53:09,371 WE HAVE COFILED A PROPOSAL THAT
7384 04:53:08,503 –> 04:53:11,640 BERKSHIRE HATHAWAY’S BOARD ISSUE
7385 04:53:09,438 –> 04:53:16,811 A REPORT AN NEWELLY, ASSESSING
7386 04:53:11,707 –> 04:53:20,248 HOW THE COMPANY MANAGES PHYSICAL
7387 04:53:16,878 –> 04:53:20,682 AND TRANSITIONAL CLIMATE RELATED
7388 04:53:20,315 –> 04:53:21,817 OPPORTUNITIES.
7389 04:53:20,749 –> 04:53:23,551 INCLUDING CLIMATE RELATED
7390 04:53:21,883 –> 04:53:25,053 FINANCIAL REPORTING, WHERE
7391 04:53:23,618 –> 04:53:26,521 MATERIAL FOR THE SUBSIDIARIES
7392 04:53:25,120 –> 04:53:28,590 AND PARENT COMPANY, HOW THE
7393 04:53:26,588 –> 04:53:31,727 BOARD OVERSEES CLIMATE RELATED
7394 04:53:28,657 –> 04:53:33,628 RISKS FOR THE COMBINED
7395 04:53:31,794 –> 04:53:36,765 ENTERPRISE, AND THE FEASIBILITY
7396 04:53:33,695 –> 04:53:38,967 OF THE PARENT COMPANY AND ITS
7397 04:53:36,832 –> 04:53:40,068 SUBSIDIARIES ESTABLISHING
7398 04:53:39,034 –> 04:53:42,705 SCIENCE-BASED GLEAN HOUSE GAS
7399 04:53:40,135 –> 04:53:44,773 REDUCTION TARGETS, CONSISTENT
7400 04:53:42,771 –> 04:53:46,174 WITH LIMITING CLIMATE CHANGE TO
7401 04:53:44,840 –> 04:53:50,245 WELL BELOW 2 DEGREES.
7402 04:53:46,241 –> 04:53:52,414 WE ASK THE ANNUAL ASSESSMENT
7403 04:53:50,312 –> 04:53:54,449 FOLLOWS THE RECOMMENDATION OF
7404 04:53:52,481 –> 04:53:56,218 THE TASK FORCE ON FINANCIAL
7405 04:53:54,516 –> 04:53:57,786 DISCLOSURES, TCFD.
7406 04:53:56,285 –> 04:53:59,187 THE BOARD ARGUES SINCE IT
7407 04:53:57,853 –> 04:54:03,291 MANAGES ITS OPERATING BUSINESSES
7408 04:53:59,254 –> 04:54:06,494 ON AN UNUSUALLY DECENTRALIZED
7409 04:54:03,358 –> 04:54:08,696 BASIS AND THERE ARE FEW
7410 04:54:06,561 –> 04:54:10,398 CENTRALIZED OR INTEGRATED
7411 04:54:08,763 –> 04:54:12,501 BUSINESS FUNCTIONS THE BOARD
7412 04:54:10,465 –> 04:54:14,403 BELIEVES THE PROPOSAL IS
7413 04:54:12,568 –> 04:54:14,636 INCONSISTENT WITH BERKSHIR’S
7414 04:54:14,470 –> 04:54:17,339 CULTURE.
7415 04:54:14,703 –> 04:54:19,541 THE COSPONSORS NOTE, DESPITE THE
7416 04:54:17,406 –> 04:54:21,443 CULTURE AND DECENTRALIZED
7417 04:54:19,608 –> 04:54:22,944 MANAGEMENT, SHAREHOLDERS CAN
7418 04:54:21,510 –> 04:54:24,980 ONLY PURCHASE SHARES IN THE
7419 04:54:23,011 –> 04:54:27,415 COMBINED PARENT COMPANY ENTITY.
7420 04:54:25,047 –> 04:54:29,284 SHARES CANNOT BE PURCHASED IN
7421 04:54:27,482 –> 04:54:32,588 THE INDIVIDUAL SUBSIDIARIES THAT
7422 04:54:29,351 –> 04:54:34,289 MAY OR MAY NOT HAVE THE CLIMATE
7423 04:54:32,654 –> 04:54:35,724 DISCLOSURES THAT THE BOARD CITES
7424 04:54:34,356 –> 04:54:37,592 IN ITS OPPOSITION STATEMENT.
7425 04:54:35,791 –> 04:54:40,128 THE COMPANY HAS MORE THAN
7426 04:54:37,659 –> 04:54:40,428 $100 BILLION IN CASH
7427 04:54:40,195 –> 04:54:43,598 EQUIVALENTS.
7428 04:54:40,495 –> 04:54:45,567 THE COSPONSORS, AND MANY IN THE
7429 04:54:43,665 –> 04:54:50,338 $54 TRILLION CLIMATE ACTION 100
7430 04:54:45,634 –> 04:54:53,375 PLUS INVESTOR COALITION WANT TO
7431 04:54:50,405 –> 04:54:55,577 PARENT COMPANY TO PUT MORE
7432 04:54:53,442 –> 04:54:58,913 RESOURCES IN THE FINANCIAL, AND
7433 04:54:55,644 –> 04:55:00,915 THE MITIGATING THE IMPACT.
7434 04:54:58,980 –> 04:55:02,217 THE COMPANY’S SUSTAINABILITY
7435 04:55:00,982 –> 04:55:04,252 REMEMBER WEBSITE CONSISTENTS
7436 04:55:02,284 –> 04:55:04,653 ONLY OF LYNCHES TO 15
7437 04:55:04,319 –> 04:55:07,222 SUBSIDIARIES.
7438 04:55:04,720 –> 04:55:08,456 WE NOTE THE PARENT COMPANY HAS
7439 04:55:07,289 –> 04:55:10,191 60 SUBSIDIARIES.
7440 04:55:08,523 –> 04:55:12,927 THIS IS INSUFFICIENT DISCLOSURE
7441 04:55:10,258 –> 04:55:14,796 TO SHAREHOLDERS WHOT THAT
7442 04:55:12,994 –> 04:55:17,365 SUSTAINABILITY RISKS, ESPECIALLY
7443 04:55:14,863 –> 04:55:21,169 CLIMATE RISKS, MAY BE MATERIAL
7444 04:55:17,432 –> 04:55:22,871 TO THE PARENT COMPANY’S
7445 04:55:21,236 –> 04:55:25,006 LONG-TERM FUTURE PROS PEROTECTS.
7446 04:55:22,938 –> 04:55:27,242 OF COURSE RECOGNIZING THE
7447 04:55:25,073 –> 04:55:27,543 COMPANY’S STRONG PAST FINANCIAL
7448 04:55:27,309 –> 04:55:29,644 PERFORMANCE.
7449 04:55:27,609 –> 04:55:33,715 NO DOUBT CLIMB CHANGE AND ENERGY
7450 04:55:29,711 –> 04:55:35,951 TRANSITION TO A LOW CARBON
7451 04:55:33,782 –> 04:55:37,185 ECONOMY POSE A SYSTEMIC RISK TO
7452 04:55:36,017 –> 04:55:39,654 THE ECONOMY.
7453 04:55:37,252 –> 04:55:41,589 THE COMPANY’S AWE AUDITOR SAYS
7454 04:55:39,721 –> 04:55:43,625 ON ITS WEBSITE, CLIMATE CHANGE
7455 04:55:41,656 –> 04:55:44,326 IS NOT A CHOICE, IT’S BILLIONS
7456 04:55:43,691 –> 04:55:47,663 OF THEM.
7457 04:55:44,393 –> 04:55:49,731 WE ARE ALL COMPELLED TO ACT.
7458 04:55:47,729 –> 04:55:51,933 DELOITTE DOES NOT ASSESS CLIMATE
7459 04:55:49,797 –> 04:55:53,535 CHANGE RELATED FINANCIAL IMPACTS
7460 04:55:52,000 –> 04:55:56,538 IN THE COMPANY’S AUDIT.
7461 04:55:53,602 –> 04:55:59,474 WHEN ASKED BY THE COSPONSORS WHY
7462 04:55:56,605 –> 04:56:02,244 CLIMATE CHANGE IMPACTS ARE
7463 04:55:59,541 –> 04:56:03,645 EXCLUDED FROM AUDITS LIKE
7464 04:56:02,311 –> 04:56:05,781 BERKSHIRES, DELOITTE FAILED TO
7465 04:56:03,712 –> 04:56:09,350 PROVIDE ANY MEANINGFUL REPLY.
7466 04:56:05,848 –> 04:56:11,352 IN HIS NEW BOOK, FORMER
7467 04:56:09,417 –> 04:56:12,487 BERKSHIRE DIRECTOR BILL GATES
7468 04:56:11,419 –> 04:56:15,724 SAYS COMPANIES ACCEPTING MORE
7469 04:56:12,554 –> 04:56:15,991 RISK IS NEEDED TO AVOID CLIMATE
7470 04:56:15,791 –> 04:56:18,293 DISASTER.
7471 04:56:16,058 –> 04:56:19,160 AND SHAREHOLDERS AND BOARD
7472 04:56:18,360 –> 04:56:22,097 MEMBERS WILL HAVE TO BE MORE
7473 04:56:19,227 –> 04:56:25,800 WILLING TO SHARE IN THIS RISK,
7474 04:56:22,164 –> 04:56:27,468 MAKING IT CLEAR TO EXECUTIVES
7475 04:56:25,867 –> 04:56:28,770 THEY’LL BACK SMART INVESTMENTS
7476 04:56:27,535 –> 04:56:29,371 EVEN IF THEY DON’T ULTIMATELY
7477 04:56:28,837 –> 04:56:31,873 PAN OUT.
7478 04:56:29,438 –> 04:56:34,342 THIS IS THE GATES POSITION AND
7479 04:56:31,939 –> 04:56:35,710 THE CHAIR IS ONE OF THREE GATES
7480 04:56:34,409 –> 04:56:38,813 FOUNDATION TRUSTEES.
7481 04:56:35,777 –> 04:56:40,549 WE ASKED THE BOARD TO TAKE THE
7482 04:56:38,880 –> 04:56:43,785 CULTURAL RISK FOR A MODEST
7483 04:56:40,615 –> 04:56:45,753 DEGREE OF CENTRALIZATION NEEDED
7484 04:56:43,852 –> 04:56:46,688 TO ISSUE THE CLIMATE RELATED
7485 04:56:45,820 –> 04:56:49,624 FINANCIAL ASSESSMENT.
7486 04:56:46,755 –> 04:56:50,959 WE ALL NEED TO TAKE ACTION NOW
7487 04:56:49,691 –> 04:56:53,962 TO LIMIT CLIMATE CHANGE IMPACT
7488 04:56:51,026 –> 04:56:57,666 ON OUR LONG-TERM SUSTAINABILITY.
7489 04:56:54,029 –> 04:56:59,767 WE STRONGLY URGE BERKSHIRE
7490 04:56:57,733 –> 04:57:02,871 HATHAWAY’S SHAREHOLDERS TO
7491 04:56:59,834 –> 04:57:04,405 SUPPORT ITEM TWO AS CLIMATE RISK
7492 04:57:02,938 –> 04:57:06,241 MAY BE MATERIAL TO THE COMPANY.
7493 04:57:04,472 –> 04:57:07,943 WE HAVE A CHANGE FOR THE CHAIR,
7494 04:57:06,308 –> 04:57:10,846 WILL YOU PLEASE CHANGE YOUR MIND
7495 04:57:08,010 –> 04:57:12,280 AND VOTE YOUR PERSONAL SHARES IN
7496 04:57:10,913 –> 04:57:13,114 SUPPORT OF ITEM TWO?
7497 04:57:12,347 –> 04:57:19,187 THANK YOU.
7498 04:57:13,181 –> 04:57:21,623
THANK YOU, MR. YUMNS.
7499 04:57:19,254 –> 04:57:24,392 THE PROPOSELE IS READY TO BE
7500 04:57:21,690 –> 04:57:28,496 AXED ONLE WHEN YOU’RE READY YOU
7501 04:57:24,459 –> 04:57:29,464 MAY DISCLOSE THE RESULTS IN THE
7502 04:57:28,563 –> 04:57:32,367 REPRELIMINARY REPORT.
7503 04:57:29,531 –> 04:57:43,645
THE REPORT STATES THE BAILOUT
7504 04:57:32,434 –> 04:57:45,680 OF SHAREHOLDERS IN RESPONSE CAST
7505 04:57:43,712 –> 04:57:47,815 121,376 VOTES FOR THE MOTION.
7506 04:57:45,747 –> 04:57:49,618 AS THE NUMBER OF VOTES AGAINST
7507 04:57:47,882 –> 04:57:52,754 THE MOTION EXCEEDS A MAJORITY OF
7508 04:57:49,685 –> 04:57:55,723 NUMBER OF VOTES OF ALL CLASS “A”
7509 04:57:52,821 –> 04:57:56,991 AND CLASS “B” SHARES PROPERLY
7510 04:57:55,790 –> 04:57:58,092 CAST ON THE MATTER THE MOTION
7511 04:57:57,058 –> 04:57:59,894 HAS FAILED.
7512 04:57:58,159 –> 04:58:01,596 THE CERTIFICATION REQUIRED BY
7513 04:57:59,961 –> 04:58:03,097 DELAWARE LAW OF PRECISE COUNT OF
7514 04:58:01,662 –> 04:58:05,233 THE VOTES WILL BE PLACED WITH
7515 04:58:03,164 –> 04:58:05,867 THE MINUTES OF THIS MEETING.
7516 04:58:05,300 –> 04:58:08,770
THANK YOU.
7517 04:58:05,934 –> 04:58:11,039 THE PROPOSAL FAILS.
7518 04:58:08,837 –> 04:58:13,341 SECOND SHAREHOLDER PROPOSAL
7519 04:58:11,106 –> 04:58:15,076 REQUEST BERKSHIRE HATHAWAY
7520 04:58:13,408 –> 04:58:16,678 COMPANIES TO ANNUALLY RELEASE
7521 04:58:15,143 –> 04:58:22,350 REPORTS SHARING THEIR DIVERSITY
7522 04:58:16,745 –> 04:58:26,788 AND INCLUSION EFFORTS.
7523 04:58:22,417 –> 04:58:30,425 I WILL NOW ASK THAT THE AUDIO
7524 04:58:26,855 –> 04:58:34,762 TAPE PROVIDED BY MEREDITH
7525 04:58:30,492 –> 04:58:36,398 BENTON, REPRESENTATIVE, BE
7526 04:58:34,829 –> 04:58:37,499 PLAYED TO PRESENT THE PROPOSAL.
7527 04:58:36,464 –> 04:58:39,067
HELLO.
7528 04:58:37,566 –> 04:58:41,937 I AM MEREDITH BENTON.
7529 04:58:39,134 –> 04:58:43,137 I’M SPEAKING ON BEHALF OF THE
7530 04:58:42,004 –> 04:58:47,675 NONPROFIT ADVOCACY ORGANIZATION
7531 04:58:43,204 –> 04:58:49,678 AS YOU SOME I’M ALSO THE CEO OF
7532 04:58:47,742 –> 04:58:53,949 RESULTS STOP CAPITAL.
7533 04:58:49,745 –> 04:58:54,482 I FORMALLY PROPOSAL NUMBER
7534 04:58:54,016 –> 04:58:57,552 THREE.
7535 04:58:54,549 –> 04:58:58,252 DIVERSITY, EQUITY, AND INCLUSION
7536 04:58:57,619 –> 04:59:01,022 EFFORTS, INCLUDING THE PROCESS
7537 04:58:58,319 –> 04:59:03,992 THAT THE BOARDLE TO DETERMINING
7538 04:59:01,089 –> 04:59:04,926 ITS EFFECTIVENESS OF DIVERSITY
7539 04:59:04,059 –> 04:59:08,996 SBIN COLLUSION PROGRAMS AND HOW
7540 04:59:04,993 –> 04:59:10,732 IT ASSESSES GOALS, TREND RELATED
7541 04:59:09,063 –> 04:59:12,200 TO RECRUITMENT AND RETENTION.
7542 04:59:10,799 –> 04:59:14,135 WHAT WOULD I MEAN IF THE
7543 04:59:12,267 –> 04:59:15,837 MAJORITY OF BERKSHIRE’S
7544 04:59:14,202 –> 04:59:17,539 OPERATING UNITS WEREN’T MANAGING
7545 04:59:15,904 –> 04:59:19,040 THEIR DIVERSITY PROGRAMS?
7546 04:59:17,606 –> 04:59:20,775 IT WOULD MEAN THAT BERKSHIRE
7547 04:59:19,107 –> 04:59:23,544 KPRAENS MISSING OUT ON THE
7548 04:59:20,842 –> 04:59:24,912 BENEFITS THAT AN INCLUSIVE
7549 04:59:23,611 –> 04:59:28,016 WORKPLACE CULTURE CAN PROVIDE,
7550 04:59:24,979 –> 04:59:30,852 SUCH AS ACCORDING TO STUDIES,
7551 04:59:28,083 –> 04:59:32,454 ACCESS TO TOP TALENT, BETTER
7552 04:59:30,919 –> 04:59:33,588 UNDERSTANDING OF CONSUMER
7553 04:59:32,521 –> 04:59:35,523 PREFERENCES, STRONGER MIX OF
7554 04:59:33,655 –> 04:59:40,495 LEADERSHIP SKILLS, INFORMED
7555 04:59:35,590 –> 04:59:40,862 SKUGS AND IMPROVED RISK
7556 04:59:40,562 –> 04:59:45,099 MANAGEMENT.
7557 04:59:40,929 –> 04:59:45,567 BEST PRACTICES IN REPORTING
7558 04:59:45,166 –> 04:59:47,869 EXIST.
7559 04:59:45,634 –> 04:59:50,805 BERKSHIRE COMPANIES CAN PUBLISH
7560 04:59:47,936 –> 04:59:51,005 THEIR COMPOSITION THROUGH THEIR
7561 04:59:50,872 –> 04:59:54,709 FORM.
7562 04:59:51,072 –> 04:59:55,343 THIS IS ALREADY SUBMITTED TO THE
7563 04:59:54,776 –> 04:59:56,811 EQUAL EMPLOYMENT OPPORTUNITY
7564 04:59:55,410 –> 04:59:58,813 COMMISSION SO IT REQUIRES NO –
7565 04:59:56,878 –> 05:00:00,915 IT IS A UNIVERSALLY DISLIKED
7566 04:59:58,880 –> 05:00:02,583 FORM, BUT IT IS STANDARDIZED AND
7567 05:00:00,982 –> 05:00:04,452 COMPANIES WILL OFTEN PUB LESH
7568 05:00:02,650 –> 05:00:06,154 THEIR E 01 ALONG WITH A
7569 05:00:04,519 –> 05:00:08,456 DISCUSSION OF THEIR OWN INTERNAL
7570 05:00:06,221 –> 05:00:14,829 STRUCTURES AND WAYS.
7571 05:00:08,523 –> 05:00:17,165 72 OF THE 100 S&P 500 COMPANIES
7572 05:00:14,896 –> 05:00:18,433 PUBLICLY SHARE THIS FORM AT TO
7573 05:00:17,232 –> 05:00:20,668 MY KNOWLEDGE NO BERKSHIRE
7574 05:00:18,500 –> 05:00:23,671 HATHAWAY COMPANY DOES, NOT ONE.
7575 05:00:20,735 –> 05:00:25,206 IT’S AKIN TO A BALANCE SHEET
7576 05:00:23,738 –> 05:00:25,640 DETAILING DIVERSITY AT A SINGLE
7577 05:00:25,273 –> 05:00:28,043 POINT IN TIME.
7578 05:00:25,707 –> 05:00:29,710 JUST AS A BALANCE SHEET WOULD BY
7579 05:00:28,110 –> 05:00:31,746 ITSELF BE INSUFFICIENT TO
7580 05:00:29,777 –> 05:00:33,148 IDENTIFY THE STRENGTH OF A
7581 05:00:31,813 –> 05:00:36,284 COMPANY’S FINANCIALS.
7582 05:00:33,215 –> 05:00:38,753 SO TOO THE E 01 BY ITSELF IS
7583 05:00:36,351 –> 05:00:41,923 INSUFFICIENT IF ASSESSING THE
7584 05:00:38,820 –> 05:00:48,596 EFFECTIVENESS OF DEI PROGRAMS
7585 05:00:41,989 –> 05:00:49,197 THE COMPANY’S DATA, HIRING
7586 05:00:48,663 –> 05:00:49,831 RETE
7587 05:00:49,264 –> 05:00:50,298 RETENTION, AND PROMOTION RATES
7588 05:00:49,898 –> 05:00:51,999 MUST ALSO BE SHARED.
7589 05:00:50,365 –> 05:00:53,000 INVESTORS NEED TO HAVE A FULL
7590 05:00:52,066 –> 05:00:55,503 UNDERSTANDING OF THE ACTUAL
7591 05:00:53,067 –> 05:00:55,770 EXPERIENCE OF BERKSHIRE
7592 05:00:55,570 –> 05:00:57,338 EMPLOYEES.
7593 05:00:55,837 –> 05:00:59,441 IN THEORY, COMPANIES SHOULD WANT
7594 05:00:57,405 –> 05:01:01,242 TO SHARE THEIR RETENTION DATA.
7595 05:00:59,508 –> 05:01:03,611 IF IT’S A GOOD COMPANY TO WORK
7596 05:01:01,309 –> 05:01:05,513 FOR, PEOPLE WILL WANT TO STAY.
7597 05:01:03,678 –> 05:01:06,915 THEY SHOULD WANT TO SHARE THEIR
7598 05:01:05,580 –> 05:01:09,317 PROMOTION DATA IN THEORY.
7599 05:01:06,982 –> 05:01:10,752 IF IT’S A COMPANY THAT HIRES
7600 05:01:09,383 –> 05:01:14,088 GOOD PEOPLE AND TREATS THEM
7601 05:01:10,819 –> 05:01:16,658 WELL, THOSE GOOD PEOPLE WILL
7602 05:01:14,155 –> 05:01:18,759 ASCEND WITH MENTORSHIP AND TIME.
7603 05:01:16,725 –> 05:01:20,595 70% OF THE S&P 500 SHARE
7604 05:01:18,826 –> 05:01:20,828 DIVERSITY AND INCLUSION AT SOME
7605 05:01:20,662 –> 05:01:22,897 LEVEL.
7606 05:01:20,895 –> 05:01:26,668 ONLY 22% OF THE BERKSHIRE
7607 05:01:22,964 –> 05:01:28,870 COMPANIES DO AT ANY LEVEL.
7608 05:01:26,735 –> 05:01:31,873 AND ONLY FOUR WORK WITH EQUITY
7609 05:01:28,936 –> 05:01:33,908 AT ANY MEANINGFUL DEPTH.
7610 05:01:31,940 –> 05:01:34,609 BERKSHIRE IS A SERIOUS OUTLIER
7611 05:01:33,975 –> 05:01:38,113 HERE.
7612 05:01:34,676 –> 05:01:38,447 BERKSHIRE IS FAMOUSLY
7613 05:01:38,180 –> 05:01:42,884 DECENTRALIZED.
7614 05:01:38,513 –> 05:01:46,020 ITS UNITS OPERATE REMOTELY.
7615 05:01:42,951 –> 05:01:48,089 BUT IF AN ISSUE ISN’T IMPORTANT
7616 05:01:46,087 –> 05:01:50,725 FROM HEADQUARTERS, CAN WE EXPECT
7617 05:01:48,156 –> 05:01:51,793 IT TO BE PRIORITIZED BY AN
7618 05:01:50,792 –> 05:01:52,961 OPERATING UNIT?
7619 05:01:51,860 –> 05:01:55,096 HERE’S THE THING.
7620 05:01:53,028 –> 05:01:57,866 MR. BUFFET, MR. MUNGER, BOARD
7621 05:01:55,163 –> 05:01:59,667 MEMBERS AND THE TEAM
7622 05:01:57,933 –> 05:02:01,569 HEADQUARTERS, YOU MAY EACH
7623 05:01:59,734 –> 05:02:04,071 INDIVIDUALLY TRULY AND GENERAL
7624 05:02:01,636 –> 05:02:06,073 WINLY HIRE, MENTOR, AND PROMOTE
7625 05:02:04,138 –> 05:02:08,009 THE BEST PEOPLE FOR THE JOB,
7626 05:02:06,140 –> 05:02:12,247 REGARDLESS OF THEIR GENDER,
7627 05:02:08,076 –> 05:02:14,883 RACE, ETHNICITY, SEXUAL
7628 05:02:12,314 –> 05:02:16,450 ORIENTATION OR ANY INMUTABLE
7629 05:02:14,950 –> 05:02:18,353 CHARACTERISTIC, BUT WE CAN’T
7630 05:02:16,517 –> 05:02:20,021 CONCLUDE THIS IS THE MIND SET OF
7631 05:02:18,420 –> 05:02:21,656 EACH OF YOUR EMPLOYEES, MANAGERS
7632 05:02:20,087 –> 05:02:23,591 AND HIRING DIRECTORS.
7633 05:02:21,723 –> 05:02:26,427 BERKSHIRE HEADQUARTERS CAN’T SIT
7634 05:02:23,658 –> 05:02:27,662 PASSIVE WILL AND I HOPE THEIR
7635 05:02:26,494 –> 05:02:29,564 INDEPENDENT UNITS ARE ADDRESSING
7636 05:02:27,729 –> 05:02:30,031 BIAS AND DISCRIMINATION IN THE
7637 05:02:29,631 –> 05:02:31,699 WORKPLACE.
7638 05:02:30,098 –> 05:02:32,934 ACTIVE MANAGEMENT, PROACTIVE
7639 05:02:31,766 –> 05:02:34,369 ATTENTION IS NEEDED.
7640 05:02:33,001 –> 05:02:37,238 IN ITS STATEMENT IN OP SESSION
7641 05:02:34,435 –> 05:02:39,407 TO THE PROPOSAL, THE BOARD SAID,
7642 05:02:37,305 –> 05:02:41,943 MR. BUFFET, BERKSHIRE’S CHAIRMAN
7643 05:02:39,474 –> 05:02:43,978 AND CEO SET THE TONE AT THE TOP
7644 05:02:42,010 –> 05:02:45,379 FOR BERKSHIRE AND ITS EMPLOYEES
7645 05:02:44,045 –> 05:02:49,684 FOR OVER 50 YEARS.
7646 05:02:45,446 –> 05:02:51,452 IT ALSO STATES MR. BUFFET HAS A
7647 05:02:49,750 –> 05:02:55,290 RECORD OF OPPOSING EFFORT SEEN
7648 05:02:51,519 –> 05:02:55,623 OR UNSEEN TO SUPPORT DIVERSITY
7649 05:02:55,356 –> 05:02:59,894 OR INCLUSION.
7650 05:02:55,690 –> 05:03:02,763 HE HOLDS EXTRAORDINARY – OVER
7651 05:02:59,961 –> 05:03:03,030 HIS COMPANIES AND THE BROADER
7652 05:03:02,830 –> 05:03:06,634 COMMUNITY.
7653 05:03:03,097 –> 05:03:11,138 HE OPPOSES EVIDENTS.
7654 05:03:06,701 –> 05:03:16,510 GIVEN THAT WE ASK HIM TO STEP
7655 05:03:11,205 –> 05:03:18,379 FORWARD DESACRCISIVELY IN HIS O
7656 05:03:16,577 –> 05:03:20,281 WAY THE EXPECTATIONS HE HAS AND
7657 05:03:18,446 –> 05:03:21,348 THE EFFORTS HE EXPECTS TO SEE,
7658 05:03:20,348 –> 05:03:24,485 THE METRICS THAT WILL BE USED TO
7659 05:03:21,415 –> 05:03:28,056 JUDGE SUCCESS.
7660 05:03:24,552 –> 05:03:29,758 ACTIONS SPEAK LOUDER THAN WORDS,
7661 05:03:28,123 –> 05:03:33,695 BUT SILENCE HERE SPEAKS VOLUMES.
7662 05:03:29,824 –> 05:03:34,329 THANK YOU.
7663 05:03:33,762 –> 05:03:36,931
THANK YOU.
7664 05:03:34,395 –> 05:03:40,401 THE PROPOSAL IS NOW READY TO BE
7665 05:03:36,998 –> 05:03:42,503 ACTED UPON.
7666 05:03:40,468 –> 05:03:43,771 MR. HAMBURG, WHEN YOU ARE READY
7667 05:03:42,570 –> 05:03:45,940 TO YOU PROVIDE THE VOTING
7668 05:03:43,838 –> 05:03:46,607 RESULTS DISCLOSED IN THE
7669 05:03:46,007 –> 05:03:48,309 PRELIMINARY REPORT.
7670 05:03:46,674 –> 05:03:49,644
THE REPORT STATES THE BAIL-IN
7671 05:03:48,376 –> 05:03:52,247 OF THE PROXY HOLDERS IN RESPONSE
7672 05:03:49,710 –> 05:03:56,851 TO PROXIES RECEIVED THROUGH LAST
7673 05:03:52,314 –> 05:04:01,288 THURSDAY EVENING CAST 124,842
7674 05:03:56,918 –> 05:04:03,124 VOTES FOR THE MOTION AND 391,662
7675 05:04:01,355 –> 05:04:05,193 VOTES AGAINST THE MOTION.
7676 05:04:03,191 –> 05:04:06,460 AS THE NUMBER OF VOTES AGAINST
7677 05:04:05,259 –> 05:04:08,429 THE MOTION EXCEEDS THE MAJORITY
7678 05:04:06,527 –> 05:04:11,499 OF THE NUMBER OF VOTES OF ALL
7679 05:04:08,496 –> 05:04:13,067 CLASS “A” AND CLASS “B” SHARES
7680 05:04:11,566 –> 05:04:14,668 PROPERLY CAST ON THE MATTER, THE
7681 05:04:13,134 –> 05:04:16,937 MOTION HAS FAILED.
7682 05:04:14,735 –> 05:04:18,372 THE CERTIFICATION REQUIRED BY
7683 05:04:17,004 –> 05:04:19,540 DELAWARE LAW OF THE PRECISE
7684 05:04:18,439 –> 05:04:21,142 COUNT OF THE VOTES WILL BE
7685 05:04:19,607 –> 05:04:23,344 PLACED WITH THE MINUTES OF THIS
7686 05:04:21,209 –> 05:04:24,379 MEETING.
7687 05:04:23,411 –> 05:04:27,715
THANK YOU.
7688 05:04:24,446 –> 05:04:30,017 THE PROPOSAL FAILS.
7689 05:04:27,782 –> 05:04:30,318
I MOVE THAT THIS MEETING BE
7690 05:04:30,084 –> 05:04:33,288 ADJOURNED.
7691 05:04:30,384 –> 05:04:33,521
I SECOND THE MOTION TO
7692 05:04:33,355 –> 05:04:35,289 ADJOURN.
7693 05:04:33,588 –> 05:04:36,324
MOTION TO ADJOURN HAS BEEN
7694 05:04:35,356 –> 05:04:37,925 MADE AND SECONDED.
7695 05:04:36,390 –> 05:04:42,263 THIS MEETING IS ADJOURNED, AND I
7696 05:04:37,992 –> 05:04:43,931 WOULD JUST LIKE TO ADD ONE FINAL
7697 05:04:42,330 –> 05:04:47,101 COMMENT THAT I REALLY HOPE –
7698 05:04:43,998 –> 05:04:48,569 AND I THINK THE ODDS ARE VERY,
7699 05:04:47,168 –> 05:04:50,871 VERY GOOD WE GET TO HOLD THIS
7700 05:04:48,636 –> 05:04:54,175 NEXT YEAR IN OMAHA, AND I HOPE
7701 05:04:50,938 –> 05:04:55,943 THAT WE GET A RECORD TURNOUT OF
7702 05:04:54,242 –> 05:04:57,812 BERKSHIRE SHAREHOLDERS AND WE
7703 05:04:56,010 –> 05:05:00,348 REALLY LOOK FORWARD TO MEETING
7704 05:04:57,879 –> 05:05:05,419 YOU IN OMAHA.
7705 05:05:00,415 –> 05:05:08,723 I GUESS IT WILL BE NEXT APRIL
7706 05:05:05,486 –> 05:05:10,425 30th, BUT WE’LL BE SURE OF THAT
7707 05:05:08,790 –> 05:05:13,594 DATE A LITTLE LATER.
7708 05:05:10,492 –> 05:05:16,264 SO THANK YOU FOR WATCHING, AND
7709 05:05:13,661 –> 05:05:17,298 WE WILL SEE YOU NEXT YEAR AND
7710 05:05:16,330 –> 05:05:26,774 HOPEFULLY IN OMAHA.
7711 05:05:17,365 –> 05:05:29,844 MEETING’S ADJOURNED.
7712 05:05:26,841 –> 05:05:30,778
THAT CONCLUDES THE 2021
7713 05:05:29,911 –> 05:05:32,580 BERKSHIRE HATHAWAY ANNUAL
7714 05:05:30,845 –> 05:05:33,181 MEETING TO SHAREHOLDERS, BUT
7715 05:05:32,646 –> 05:05:34,949 STICK AROUND.
7716 05:05:33,248 –> 05:05:37,919 THERE IS A LOT TO TALK ABOUT, A
7717 05:05:35,016 –> 05:05:39,787 LOT TO GO THROUGH WITH OUR PANEL
7718 05:05:37,986 –> 05:05:41,889 HERE AT YAHOO FINANCE.
7719 05:05:39,854 –> 05:05:43,724 OF COURSE BUFFET AND MUNGER
7720 05:05:41,956 –> 05:05:45,993 TALKING ABOUT ALL MANNER OF
7721 05:05:43,791 –> 05:05:48,162 SUBJECTS CONCERNING BERKSHIRE,
7722 05:05:46,060 –> 05:05:51,999 HOW THE COMPANY PERFORMED, THE
7723 05:05:48,229 –> 05:05:53,968 ECONOMY, RAILROADS, TECH STOCKS,
7724 05:05:52,066 –> 05:05:55,737 BITCOIN, THE WHOLE GAMUT.
7725 05:05:54,035 –> 05:05:57,738 AND THE ATMOSPHERE HERE IN THE
7726 05:05:55,804 –> 05:05:59,540 ROOM, YOU GUYS, DIFFERENT FROM
7727 05:05:57,805 –> 05:06:01,776 LAST YEAR WHEN THERE WAS
7728 05:05:59,607 –> 05:06:06,147 ABSOLUTELY NO ONE IN THE
7729 05:06:01,843 –> 05:06:07,448 CAVERNOUS CHI CENTER IN OMAHA.
7730 05:06:06,214 –> 05:06:08,383 THERE ARE DIRECTORS.
7731 05:06:07,515 –> 05:06:09,317 YOU CAN HEAR THEM TALKING BEHIND
7732 05:06:08,450 –> 05:06:11,486 ME NOW.
7733 05:06:09,384 –> 05:06:12,486 A GOOD NUMBER OF THEM TURNED
7734 05:06:11,553 –> 05:06:15,556 OUT, SO THERE WAS SOME REACTION
7735 05:06:12,553 –> 05:06:16,691 AND RESPONSE TO THE ZINGERS IN
7736 05:06:15,623 –> 05:06:17,892 PARTICULAR THAT BUFFET AND
7737 05:06:16,758 –> 05:06:19,994 MUNGER DELIVERED TO THE CROWD,
7738 05:06:17,959 –> 05:06:22,096 BUT STILL, NOT THE SAME AS THE
7739 05:06:20,060 –> 05:06:22,296 40,000 PEOPLE WHO ATTEND EACH
7740 05:06:22,163 –> 05:06:23,898 YEAR.
7741 05:06:22,363 –> 05:06:26,467 YOU HEARD BUFFET AT THE END TALK
7742 05:06:23,965 –> 05:06:28,636 ACT HOW HE OPENED EVEN WOULD BE
7743 05:06:26,534 –> 05:06:31,238 BACK IN OMAHA NEXT YEAR, AND OF
7744 05:06:28,703 –> 05:06:35,910 COURSE HE HAD THE EXACT DATE
7745 05:06:31,305 –> 05:06:37,945 RIGHT THERE, APRIL 30th OF 2022.
7746 05:06:35,977 –> 05:06:39,013 I WANT TO GO AROUND AND GET
7747 05:06:38,012 –> 05:06:39,714 REACTION TOP LINE FROM THE
7748 05:06:39,080 –> 05:06:41,282 PANEL.
7749 05:06:39,781 –> 05:06:41,449 MILES, WHY DON’T WE START WITH
7750 05:06:41,349 –> 05:06:43,751 YOU?
7751 05:06:41,515 –> 05:06:45,486
ANDY, IT’S FUNNY, EVERY YEAR
7752 05:06:43,818 –> 05:06:46,988 YOU COME OUT AND YOU ALWAYS
7753 05:06:45,552 –> 05:06:49,190 THINK ABOUT TONE AND TOPICS.
7754 05:06:47,054 –> 05:06:50,724 I WAS THINKING ABOUT LAST YEAR’S
7755 05:06:49,257 –> 05:06:53,961 MEETING, AND WROTE ABOUT IT A
7756 05:06:50,791 –> 05:06:54,194 LITTLE THIS MORNING ON YAHOO
7757 05:06:54,028 –> 05:06:55,797 FINANCE.
7758 05:06:54,261 –> 05:06:56,063 THAT WAS KIND OF THE BOTTOM OF
7759 05:06:55,864 –> 05:06:58,466 SORTS.
7760 05:06:56,130 –> 05:07:00,501 IF YOU GO THROUGH AND LOOK AT A
7761 05:06:58,533 –> 05:07:00,902 BUNCH OF NATIONAL COVID
7762 05:07:00,568 –> 05:07:02,369 STATISTICS.
7763 05:07:00,969 –> 05:07:04,372 IF YOU THINK ABOUT WHERE THE
7764 05:07:02,436 –> 05:07:04,539 ECONOMY WAS, WHERE EVERYONE’S TU
7765 05:07:04,439 –> 05:07:07,107 WAS.
7766 05:07:04,605 –> 05:07:08,042 THE MARK OF COURSE WE NOW KNOW
7767 05:07:07,174 –> 05:07:10,144 BOTTOMED ABOUT SIX WEEKS BEFORE
7768 05:07:08,109 –> 05:07:11,412 THAT MEETING, WHICH I BELIEVE
7769 05:07:10,211 –> 05:07:12,680 THE EXACT DATE WOULD HAVE BEEN
7770 05:07:11,479 –> 05:07:15,883 MAY 2nd.
7771 05:07:12,747 –> 05:07:20,187 BUT IT WAS REALLY KIND OF THE
7772 05:07:15,950 –> 05:07:21,689 ABSOLUTE TROUGH, THE COVID
7773 05:07:20,254 –> 05:07:22,656 MOMENT IN THE UNITED STATES.
7774 05:07:21,756 –> 05:07:24,358 THERE HAVE BEEN MANY DARK DAYS
7775 05:07:22,723 –> 05:07:27,761 SINCE THEN, BUT NOW WE’RE
7776 05:07:24,425 –> 05:07:29,530 TALKING ABOUT MORE THAN 50% OF
7777 05:07:27,828 –> 05:07:30,531 THE POPULATION WITH TAT LEAST OE
7778 05:07:29,597 –> 05:07:31,933 SHOT OF THE VACCINE.
7779 05:07:30,598 –> 05:07:33,767 WE’RE SEEING THINGS RE-OPEN.
7780 05:07:32,000 –> 05:07:37,004 TO THAT END, THE CONVERSATION
7781 05:07:33,834 –> 05:07:37,938 THIS YEAR WAS MUCH MORE A
7782 05:07:37,071 –> 05:07:38,339 CLASSIC BUFFET CONVERSATION, IF
7783 05:07:38,005 –> 05:07:40,641 YOU WILL.
7784 05:07:38,406 –> 05:07:43,377 I KNOW WE’LL GET TO KIND OF THE
7785 05:07:40,708 –> 05:07:45,213 HISTORY LESSON WE HAD AT THE
7786 05:07:43,444 –> 05:07:46,881 BEGINNING WITH THE TOP 20 STOCKS
7787 05:07:45,280 –> 05:07:48,649 NOW VERSUS 30 YEARS AGO.
7788 05:07:46,948 –> 05:07:51,152 BUFFET KIND OF TALKED ABOUT THE
7789 05:07:48,716 –> 05:08:00,394 ECONOMY, NEWS OF THE DAY.
7790 05:07:51,219 –> 05:08:01,428 BUT WE HAD A LITTLE – IT SEEM
7791 05:08:00,461 –> 05:08:03,297 LAST YEAR HE WAS TRYING TO PEP
7792 05:08:01,495 –> 05:08:05,766 UP THE COUNTRY, PEP UP HIMSELF
7793 05:08:03,364 –> 05:08:08,903 AND NOT GOB SO DOUR.
7794 05:08:05,833 –> 05:08:11,472 BUT JULIA, IT DID FEEL LIKE YOU
7795 05:08:08,970 –> 05:08:12,973 CAN SORT OF THE GET BUFFET
7796 05:08:11,539 –> 05:08:14,408 TRYING TO, I DON’T KNOW, MAYBE
7797 05:08:13,040 –> 05:08:16,143 SOUND MORE NORMAL.
7798 05:08:14,475 –> 05:08:18,379 AT A CERTAIN POINT THE YEARS ALL
7799 05:08:16,210 –> 05:08:20,481 RUN TOGETHER, BUT THIS ONE MAYBE
7800 05:08:18,446 –> 05:08:20,881 DIDN’T FEEL SO SAD AS LAST
7801 05:08:20,548 –> 05:08:23,150 YEAR’S FELT.
7802 05:08:20,948 –> 05:08:24,051
MILES, I THINK YOU TOTALLY
7803 05:08:23,217 –> 05:08:25,987 NAILED IT.
7804 05:08:24,118 –> 05:08:34,695 I ACTUALLY REWATCHED LAST YEAR’S
7805 05:08:26,054 –> 05:08:36,931 MEETING, AT LEAST THE S– EVEN
7806 05:08:34,762 –> 05:08:37,698 THOUGH HE HAD A BULLISH
7807 05:08:36,998 –> 05:08:40,100 UNDERTONE, I THINK LAST YEAR A
7808 05:08:37,765 –> 05:08:41,269 LOT OF FOLKS WERE LOOKING TO
7809 05:08:40,167 –> 05:08:43,871 WARREN BUFFET BECAUSE IT WAS
7810 05:08:41,335 –> 05:08:46,307 SUCH UNCHARTED TERRITORY.
7811 05:08:43,938 –> 05:08:47,374 REMEMBER HE DIDN’T EVEN HAVE HIS
7812 05:08:46,374 –> 05:08:47,909 HAIRCUT LAST YEAR LIKE THE REST
7813 05:08:47,441 –> 05:08:50,912 OF US.
7814 05:08:47,976 –> 05:08:52,680 BUT YEAH, I WOULD ALSO AGREE
7815 05:08:50,979 –> 05:08:54,849 WITH YOU.
7816 05:08:52,747 –> 05:08:57,018 A LOT OF THINGS CHANGED.
7817 05:08:54,916 –> 05:08:57,285 HE REFERENCED THAT IN THE
7818 05:08:57,085 –> 05:08:59,554 BEGINNING.
7819 05:08:57,352 –> 05:09:01,455 WE WILL GET TO THAT AS YOU JUST
7820 05:08:59,621 –> 05:09:02,055 MENTIONED.
7821 05:09:01,522 –> 05:09:04,826 BUT EVEN IT’S YEAR, TALKING
7822 05:09:02,122 –> 05:09:05,093 ABOUT THE RISE OF THE RETAIL
7823 05:09:04,892 –> 05:09:09,129 INVESTOR.
7824 05:09:05,159 –> 05:09:09,696 EVEN BRINGING UP ROBIN HOOD,
7825 05:09:09,196 –> 05:09:11,198 GAMBLING WITHIN – KIND OF
7826 05:09:09,763 –> 05:09:12,833 TALKING ABOUT THE CASINO AND
7827 05:09:11,265 –> 05:09:13,901 WARNING ABOUT THAT.
7828 05:09:12,900 –> 05:09:17,204 WHILE AMERICAN COMPANIES ARE A
7829 05:09:13,968 –> 05:09:18,305 GREAT PLACE TO PUT YOUR MONEY
7830 05:09:17,271 –> 05:09:20,341 AND INVEST AND SAVE YOU HAVE TO
7831 05:09:18,372 –> 05:09:22,977 BE VERY CAREFUL, TOO.
7832 05:09:20,408 –> 05:09:25,046 THOSE WERE MY KEY TAKEAWAYS
7833 05:09:23,044 –> 05:09:27,615 HERE.
7834 05:09:25,113 –> 05:09:28,182 SHOULD WE BRING IN – AKIKO,
7835 05:09:27,682 –> 05:09:30,150 WHAT DO YOU THINK?
7836 05:09:28,249 –> 05:09:31,352
I SHOULD POINT OUT, THIS IS
7837 05:09:30,217 –> 05:09:31,619 MY FIRST YEAR COVERING THE
7838 05:09:31,418 –> 05:09:33,054 EVENT.
7839 05:09:31,686 –> 05:09:34,388 IT’S INTERESTING TO SEE JUST HOW
7840 05:09:33,121 –> 05:09:37,124 BROAD THE QUESTIONS WERE.
7841 05:09:34,455 –> 05:09:40,561 PICKING UP ON YOUR POINT,
7842 05:09:37,191 –> 05:09:41,696 THOUGH, ABOUT WHAT WARREN BUFFET
7843 05:09:40,628 –> 05:09:43,831 SAYS ABOUT THE ROBIN HOOD TRADE,
7844 05:09:41,763 –> 05:09:45,900 WHAT STOOD OUT TO ME IN THESE
7845 05:09:43,898 –> 05:09:47,602 HOURS THAT HE ANSWERED PATIENTLY
7846 05:09:45,967 –> 05:09:49,637 ALL THE QUESTIONS WAS A BIT OF A
7847 05:09:47,669 –> 05:09:50,838 DIVIDE I SAW BETWEEN THE
7848 05:09:49,704 –> 05:09:52,806 SENTIMENT OF THE MARKET IS RIGHT
7849 05:09:50,905 –> 05:09:54,708 NOW, WHERE SOME OF THE
7850 05:09:52,873 –> 05:09:56,510 EXCITEMENT IS VERSUS WHERE BOTH
7851 05:09:54,775 –> 05:09:57,378 WARREN BUFFET AND CHARLIE MUNGER
7852 05:09:56,577 –> 05:10:00,147 SEE THE OPPORTUNITIES.
7853 05:09:57,445 –> 05:10:03,150 WHEN YOU TALK ABOUT BITCOIN FOR
7854 05:10:00,214 –> 05:10:04,185 EXAMPLE, NO SURPRISE, STRONG
7855 05:10:03,217 –> 05:10:06,320 OPINION THERE FROM CHARLIE
7856 05:10:04,252 –> 05:10:09,724 MUNGER SAYING OF COURSE HE HATES
7857 05:10:06,387 –> 05:10:12,259 THE BITCOIN SUCCESS, AND HE
7858 05:10:09,790 –> 05:10:13,394 THINKS THE WHOLE DEVELOPMENT IS
7859 05:10:12,326 –> 05:10:14,829 DISGUSTING AND CONTRARY TO THE
7860 05:10:13,461 –> 05:10:17,164 INTEREST OF CIVILIZATION.
7861 05:10:14,896 –> 05:10:19,333 THOSE WERE HIS WORDS.
7862 05:10:17,231 –> 05:10:20,234 I ALSO THOUGHT IT WAS
7863 05:10:19,400 –> 05:10:21,602 INTERESTING THE COMMENT ON THE
7864 05:10:20,301 –> 05:10:24,271 CLIMB ISSUE – AT THE END OF
7865 05:10:21,668 –> 05:10:27,241 MEET WING SAW THE PROPOSAL VOTED
7866 05:10:24,338 –> 05:10:29,276 DOWN FOR INCREASED DISCLOSURES
7867 05:10:27,308 –> 05:10:31,846 ON CLIMATE RISK.
7868 05:10:29,343 –> 05:10:36,116 BUT WE HEARD FROM WARREN BUFFET
7869 05:10:31,912 –> 05:10:37,952 WHEN HE WAS ASKED ABOUT HIS –
7870 05:10:36,183 –> 05:10:40,655 HOW HE FELT ABOUT THAT IN THE
7871 05:10:38,018 –> 05:10:42,123 DISCUSSION OF BUILDING CLIMATE
7872 05:10:40,722 –> 05:10:43,024 RISK, INVESTING IN A FOSS YOU
7873 05:10:42,190 –> 05:10:45,092 WILL FUEL COMPANY.
7874 05:10:43,090 –> 05:10:47,828 HE REALLY SEEMED TO DOUBLE DOWN,
7875 05:10:45,159 –> 05:10:48,129 SAYING CHEVRON IS NOT AN EVIL
7876 05:10:47,895 –> 05:10:50,264 COMPANY.
7877 05:10:48,196 –> 05:10:51,832 HE SAYS I HAVE NO COMPUNCTION
7878 05:10:50,331 –> 05:10:54,235 ABOUT OWNING IT.
7879 05:10:51,899 –> 05:10:59,039 IN FACT WE WENT FURTHER AND
7880 05:10:54,302 –> 05:11:00,341 SAID, IF WE OWNED THE ENTIRE
7881 05:10:59,106 –> 05:11:00,675 BUSINESS I WOULDN’T FEEL
7882 05:11:00,408 –> 05:11:04,178 UNCOMFORTABLE.
7883 05:11:00,741 –> 05:11:05,579 THAT SEEMS TO BE A BIT OF DIVIDE
7884 05:11:04,245 –> 05:11:06,780 WHERE INVESTMENT SENTIMENT IS.
7885 05:11:05,646 –> 05:11:07,581 WE’VE GOT THE S.E.C. WEIGHING IN
7886 05:11:06,847 –> 05:11:09,750 ON THAT.
7887 05:11:07,648 –> 05:11:11,686 SO NOT SO SURE IN THE END IF
7888 05:11:09,817 –> 05:11:13,587 BERKSHIRE IS GOING TO HAVE THEIR
7889 05:11:11,753 –> 05:11:15,456 HAND FORCED ESSENTIALLY BECAUSE
7890 05:11:13,654 –> 05:11:16,791 OF REGULATION, BUT I THOUGHT
7891 05:11:15,522 –> 05:11:17,458 THAT WAS AN INTERESTING
7892 05:11:16,858 –> 05:11:20,428 COMMENTARY, TOO.
7893 05:11:17,525 –> 05:11:20,695
OKAY, THANKS, AKIKO AND
7894 05:11:20,495 –> 05:11:23,164 MILES.
7895 05:11:20,762 –> 05:11:25,466 WE’RE GOING TO TAKE A QUICK
7896 05:11:23,231 –> 05:11:26,000 BREAK, BUT WE’LL BE RIGHT BACK
7897 05:11:25,532 –> 05:11:27,601 AFTER THAT.
7898 05:11:26,067 –> 05:11:30,471 MUCH MORE TO DISCUSS HERE AT
7899 05:11:27,668 –> 05:11:32,206 LOS ANGELES AT THE END OF THE
7900 05:11:30,538 –> 05:11:32,740 BERKSHIRE HATHAWAY ANNUAL
7901 05:11:32,273 –> 05:11:34,108 MEETING FOR SHAREHOLDER
7902 05:11:32,807 –> 05:11:34,108 ♪ STAY TUNED.
7903 05:14:27,648 –> 05:14:29,650
WELCOME BACK TO YAHOO
7904 05:14:29,050 –> 05:14:31,719 FINANCE.
7905 05:14:29,717 –> 05:14:34,421 THE NUMBER OF THINGS DISCUSSED
7906 05:14:31,786 –> 05:14:36,590 HERE, WARREN BUFFET AS WELL AS
7907 05:14:34,488 –> 05:14:39,426 CHARLIE MUNGER WEIGHING IN ON
7908 05:14:36,656 –> 05:14:42,763 THE BROADER MACRO PICTURE.
7909 05:14:39,493 –> 05:14:42,963 TAKE A LISTEN TO WHAT HE HAD TO
7910 05:14:42,830 –> 05:14:47,368 SAY.
7911 05:14:43,030 –> 05:14:52,172
THIS ECONOMY RIGHT NOW IS 85%
7912 05:14:47,434 –> 05:14:56,677 OF IT IS RUNNING IN SUPER HIGH
7913 05:14:52,239 –> 05:14:58,512 GEAR, AND PEOPLE CAN’T – AND
7914 05:14:56,744 –> 05:15:01,348 YOU’RE SEEING SOME INFLATION.
7915 05:14:58,579 –> 05:15:01,515 RESPOND IN THE AN INCREDIBLE
7916 05:15:01,415 –> 05:15:02,082 WAY.
7917 05:15:01,581 –> 05:15:06,620 I DON’T THINK IT WAS A SURE
7918 05:15:02,149 –> 05:15:09,423 THING THAT WOULD HAPPEN.
7919 05:15:06,687 –> 05:15:12,126
LET’S BRING IN EMPIRE
7920 05:15:09,490 –> 05:15:12,393 FINANCIAL RESEARCH FOUNDER AND
7921 05:15:12,193 –> 05:15:15,696 CEO.
7922 05:15:12,460 –> 05:15:16,363 LET ME FIRST GET YOUR THOUGHTS
7923 05:15:15,763 –> 05:15:17,998 ON WHAT STOOD OUT TO YOU IN
7924 05:15:16,430 –> 05:15:20,034 TERMS OF WHAT HE HEARD FROM
7925 05:15:18,065 –> 05:15:20,267 WARREN BUFFET AND CHARLIE MUNGER
7926 05:15:20,101 –> 05:15:23,570 TODAY.
7927 05:15:20,334 –> 05:15:25,105
THIS IS MY 23rd CONSECUTIVE
7928 05:15:23,637 –> 05:15:27,574 BERKSHIRE MEETING.
7929 05:15:25,172 –> 05:15:30,811 THE THING THAT REALLY JUMPED UP
7930 05:15:27,641 –> 05:15:33,614 OUT AT ME WAS THEY SPENT SOME
7931 05:15:30,878 –> 05:15:37,017 TIME TALKING ABOUT THE FIST RISK
7932 05:15:33,681 –> 05:15:37,551 FACTOR OF ANYONE BUYING A STOCK
7933 05:15:37,084 –> 05:15:39,720 SHOULD BE BAD MANAGEMENT.
7934 05:15:37,618 –> 05:15:40,854 THAT CAN MESS UP A BUSINESS.
7935 05:15:39,786 –> 05:15:42,422 THEN THEY LAMENTED THE
7936 05:15:40,921 –> 05:15:43,223 DIFFICULTY OF GETTING RID OF A
7937 05:15:42,489 –> 05:15:45,025 DIFFICULT CEO.
7938 05:15:43,290 –> 05:15:47,962 IT GOT BACK TO THE MAIN THING I
7939 05:15:45,092 –> 05:15:49,196 FOCUS ON WHEN IT COMES TO
7940 05:15:48,029 –> 05:15:50,864 BERKSHIRE, WHICH ISN’T BAD
7941 05:15:49,263 –> 05:15:51,465 MANAGEMENT, BUT AGING
7942 05:15:50,931 –> 05:15:53,266 MANAGEMENT.
7943 05:15:51,532 –> 05:15:55,035 AND WE HAVE SEEN IT OVER AND
7944 05:15:53,333 –> 05:15:58,072 OVER AGAIN WHERE YOU GET SOME
7945 05:15:55,102 –> 05:16:01,641 LEGENDARY CEO, HE STARTS TO LOSE
7946 05:15:58,139 –> 05:16:02,443 HIS MARBLES DUE TO OLD AGE LIKE
7947 05:16:01,708 –> 05:16:04,878 WE ALL DO.
7948 05:16:02,510 –> 05:16:07,147 SO THE FIRST THING I LOOK FOR AT
7949 05:16:04,945 –> 05:16:09,083 ANY ANNUAL MEETING WHEN I SEE
7950 05:16:07,214 –> 05:16:11,218 BUFFET OR MUNGER ON TELEVISION
7951 05:16:09,150 –> 05:16:14,054 IS, ARE THEY LOSING IT?
7952 05:16:11,285 –> 05:16:17,290 WE JUST SAW A 90-YEAR-OLD MAN
7953 05:16:14,121 –> 05:16:18,792 BACKED UP BY A 97-YEAR-OLD MAN
7954 05:16:17,357 –> 05:16:21,228 GO FOR FOUR CONSECUTIVE HOURS
7955 05:16:18,859 –> 05:16:23,030 WITHOUT EVEN A BATHROOM BREAK
7956 05:16:21,295 –> 05:16:26,266 BEING ASKED DOZENS OF QUESTIONS
7957 05:16:23,097 –> 05:16:26,800 THEY HAD NO ADVANCED KNOWLEDGE
7958 05:16:26,333 –> 05:16:28,668 OF.
7959 05:16:26,867 –> 05:16:30,771 23 YEARS AGO AT MY FIRST ANNUAL
7960 05:16:28,735 –> 05:16:31,038 MEETING THEY SOUNDED THE SAME
7961 05:16:30,838 –> 05:16:33,073 TODAY.
7962 05:16:31,105 –> 05:16:36,110 IT’S REMARKABLE.
7963 05:16:33,140 –> 05:16:42,016 I JUST GOOGLED AVERAGE LIFE
7964 05:16:36,177 –> 05:16:43,350 EXPECTANCY OF IS 77 YEARS OLD.
7965 05:16:42,083 –> 05:16:45,752 THEY’RE GIVING THE SAME ANSWERS
7966 05:16:43,417 –> 05:16:47,254 BUT MIXING IT UP, AND THERE’S
7967 05:16:45,819 –> 05:16:47,788 ALWAYS NEW STUFF THROWN IN
7968 05:16:47,321 –> 05:16:50,257 THERE.
7969 05:16:47,855 –> 05:16:54,528 YOU HAVE TO SIT BACK AND BE IN
7970 05:16:50,324 –> 05:16:57,531 AWE THESE GUYS ARE GOING STRONG
7971 05:16:54,595 –> 05:16:58,932 AT THEIR RESPECTED AGES.
7972 05:16:57,598 –> 05:17:00,333
WHAT DID YOU MAKE OF THE
7973 05:16:58,999 –> 05:17:03,370 QUESTIONS THAT WENT ALONG THE
7974 05:17:00,400 –> 05:17:04,504 LINES OF, YOU GUYS MISSED A HUGE
7975 05:17:03,437 –> 05:17:05,806 OPPORTUNITY LAST MARCH, YOU
7976 05:17:04,571 –> 05:17:09,643 DIDN’T STEP UP TO THE PLATE, AND
7977 05:17:05,873 –> 05:17:12,179 YOU LET US DOWN AS SHAREHOLDERS?
7978 05:17:09,710 –> 05:17:13,814
IN FACT, SOLD THE AIRLINES.
7979 05:17:12,245 –> 05:17:15,348 SOLD THE BANKS.
7980 05:17:13,881 –> 05:17:17,284 THAT WAS A $10 BILLION MISTAKE.
7981 05:17:15,415 –> 05:17:20,888 BUT HERE’S THE THING – I WAS
7982 05:17:17,351 –> 05:17:24,758 EMAILING WITH ONE OF MY FRIENDS
7983 05:17:20,954 –> 05:17:28,929 WHO WAS CRITICIZIING THEM FOR
7984 05:17:24,825 –> 05:17:30,030 THAT AND HE SAID 20 YEARS AGO
7985 05:17:28,996 –> 05:17:30,464 BUFFET WOULDN’T HAVE MADE THOSE
7986 05:17:30,097 –> 05:17:31,398 MISTAKES.
7987 05:17:30,531 –> 05:17:33,634 HE WOULD HAVE PLAYED OFFENSE.
7988 05:17:31,465 –> 05:17:35,603 I SAID, TRUE, BUT THE BUFFET OF
7989 05:17:33,700 –> 05:17:36,537 THE 20 YEARS AGO HAD A RULE, NO
7990 05:17:35,669 –> 05:17:39,039 TECH STOCKS.
7991 05:17:36,604 –> 05:17:41,108 SO I’M PERFECTLY FINE IF BUFFET
7992 05:17:39,106 –> 05:17:42,843 MAKES A COMBINED $15 BILLION
7993 05:17:41,175 –> 05:17:43,143 MISTAKE ON AIRLINES AND ON THE
7994 05:17:42,910 –> 05:17:45,245 BANKS.
7995 05:17:43,210 –> 05:17:47,481 BUT HE’S MADE OVER $100 BILLION
7996 05:17:45,312 –> 05:17:50,584 IN PROFITS FROM BERKSHIRE’S
7997 05:17:47,548 –> 05:17:53,587 SHAREHOLDER JUST ON APPLE.
7998 05:17:50,651 –> 05:17:53,787 I’LL TAKE THAT TRADE ALL DAY
7999 05:17:53,654 –> 05:17:55,522 LONG.
8000 05:17:53,854 –> 05:17:57,291
ONE OF THE HALLMARKS OF THE
8001 05:17:55,589 –> 05:17:59,493 ANNUAL MEETING AND OF WARREN AND
8002 05:17:57,358 –> 05:18:01,361 CHARLIE IS THAT THEY TALK VERY
8003 05:17:59,560 –> 05:18:03,263 OPENLY AND TRANSPARENCY ABOUT
8004 05:18:01,428 –> 05:18:05,566 THEIR MISTAKES, SO A LOT OF
8005 05:18:03,330 –> 05:18:06,933 FOLKS ARE CERTAINLY LEARNING
8006 05:18:05,632 –> 05:18:08,468 FROM THEM, AND SO ONE OF THE
8007 05:18:07,000 –> 05:18:10,604 THINGS THAT STOOD OUT TO ME –
8008 05:18:08,535 –> 05:18:12,907 FELT LIKE A TRADITIONAL MEETING
8009 05:18:10,670 –> 05:18:15,309 IN A LOT OF WAYS BUT FOCUSES ON
8010 05:18:12,973 –> 05:18:19,113 THE RISING RETAIL INVESTOR CLASS
8011 05:18:15,376 –> 05:18:19,580 AND SHARING THEIR LESSONS WITH
8012 05:18:19,180 –> 05:18:20,881 THEM.
8013 05:18:19,647 –> 05:18:23,417 WHAT ARE YOUR THOUGHTS ON THAT
8014 05:18:20,948 –> 05:18:24,084 AS SOMEONE WHO’S BEEN INVOLVE IN
8015 05:18:23,484 –> 05:18:25,318 THE FINANCIAL EDUCATION AS THEY
8016 05:18:24,151 –> 05:18:27,087 TALK ABOUT THE WORLD CHANGING,
8017 05:18:25,385 –> 05:18:28,822 BRINGS THINGS UP FROM 30 YEARS
8018 05:18:27,154 –> 05:18:31,424 AGO AND HOW THOSE STOCK, THEY’RE
8019 05:18:28,889 –> 05:18:32,059 NOT EVEN THE ONES THAT ARE WELL
8020 05:18:31,491 –> 05:18:35,295 KNOWN TODAY?
8021 05:18:32,126 –> 05:18:44,271
WELL, LOOK, ONE OF THE FIRST
8022 05:18:35,362 –> 05:18:45,739 MEETINGS I EVER WENT TO WAS
8023 05:18:44,338 –> 05:18:47,674 1999, 2000 RIGHT AT THE TOP OF
8024 05:18:45,805 –> 05:18:47,974 THE BUBBLE WHEN THEY WERE
8025 05:18:47,741 –> 05:18:49,409 CRITICIZED.
8026 05:18:48,041 –> 05:18:50,344 AND I WAS SHOUT FROM THE
8027 05:18:49,476 –> 05:18:50,944 ROOFTOPS, THESE GUYS HAVE NOT
8028 05:18:50,411 –> 05:18:52,679 LOST IT.
8029 05:18:51,011 –> 05:18:52,879 AND I’M DOING THE SAME THING
8030 05:18:52,746 –> 05:18:55,782 TODAY.
8031 05:18:52,946 –> 05:18:56,049 IT’S AMAZING HOW HISTORY REPEATS
8032 05:18:55,849 –> 05:19:00,787 ITSELF.
8033 05:18:56,116 –> 05:19:01,721 I THINK THEY WERE MOSTLY LA
8034 05:19:00,854 –> 05:19:05,959 LAMENTING, PARTICULARLY THE
8035 05:19:01,788 –> 05:19:07,194 ROBIN HOOD APP AND THE CASINO
8036 05:19:06,026 –> 05:19:09,196 NATURE OF INVESTING.
8037 05:19:07,261 –> 05:19:11,532 THEY JUST SHOOK THEIR HEAD AND
8038 05:19:09,263 –> 05:19:14,034 SAID INVESTORS – BUFFET WENT ON
8039 05:19:11,599 –> 05:19:16,703 A RIP ABOUT BUYING AND SELLING
8040 05:19:14,101 –> 05:19:16,970 CALL AND PUT OPTIONS ON APPLE
8041 05:19:16,770 –> 05:19:19,373 STOCK.
8042 05:19:17,037 –> 05:19:19,640 IT’S JUST PURE SPECULATION, PURE
8043 05:19:19,440 –> 05:19:21,041 GAMBLING.
8044 05:19:19,707 –> 05:19:22,543 AND I DON’T KNOW IF THEY
8045 05:19:21,108 –> 05:19:25,546 ACTUALLY QUITE CAME OUT AND SAID
8046 05:19:22,610 –> 05:19:27,548 IT, BUT I FOR SURE HEARD IT.
8047 05:19:25,613 –> 05:19:29,516 THEY SAID, THIS IS GOING TO END
8048 05:19:27,615 –> 05:19:31,785 BADLY, AND A LOT OF INNOCENT
8049 05:19:29,583 –> 05:19:33,820 PEOPLE WHO DIDN’T EXPERIENCE THE
8050 05:19:31,852 –> 05:19:36,290 INTERNET BUBBLE AND HOUSING
8051 05:19:33,887 –> 05:19:36,590 BUBBLE BURSTING ARE GOING TO GET
8052 05:19:36,357 –> 05:19:38,758 INCINERATED.
8053 05:19:36,657 –> 05:19:40,727 BUT THEY MAKE NO PREDICTION AS
8054 05:19:38,825 –> 05:19:42,563 TO WHEN THAT WILL HAPPEN.
8055 05:19:40,794 –> 05:19:45,766
APPLE ONE OF THOSE NAMES THAT
8056 05:19:42,630 –> 05:19:46,566 CAME UP IN ONE QUESTION WHERE
8057 05:19:45,833 –> 05:19:48,201 THEY ASKED SPECIFICALLY WARREN
8058 05:19:46,633 –> 05:19:49,970 BUFFET WHETHER OR NOT IT WAS A
8059 05:19:48,268 –> 05:19:52,072 MISTAKE TO SELL SOME SHARES LAST
8060 05:19:50,037 –> 05:19:52,873 YEAR WHEN WE’VE SEEN STOCK GO UP
8061 05:19:52,139 –> 05:19:54,708 SINCE THEN.
8062 05:19:52,940 –> 05:19:56,343 TAKE A LISTEN TO WHAT HE HAD TO
8063 05:19:54,775 –> 05:19:56,977 SY AND I’LL GET YOUR THOUGHTS
8064 05:19:56,410 –> 05:19:58,612 ON THE OTHER END.
8065 05:19:57,044 –> 05:20:02,716
IT’S AN EXTRAORDINARY
8066 05:19:58,679 –> 05:20:12,292 BUSINESS, BUT I DO WANT TO
8067 05:20:08,922 –> 05:20:15,929 IT’S A DIFFERENT WAY, BUT TIM –
8068 05:20:12,359 –> 05:20:17,564 COOK IS – WE SEE A LOT OF
8069 05:20:15,996 –> 05:20:18,999 MANAGER OF A LOT OF
8070 05:20:17,631 –> 05:20:20,834 BUSINESSES – YOU’RE LOOKING AT
8071 05:20:19,066 –> 05:20:21,034 TWO GREAT ONES ON BOTH ENDS
8072 05:20:20,900 –> 05:20:24,104 HERE.
8073 05:20:21,101 –> 05:20:24,337 HE’S HANDLED THAT BUSINESS SO
8074 05:20:24,171 –> 05:20:28,242 WELL.
8075 05:20:24,404 –> 05:20:32,779 HE COULDN’T DO WHAT STEVE JOBS,
8076 05:20:28,309 –> 05:20:35,983 OBVIOUSLY, COULD DO IN TERMS OF
8077 05:20:32,846 –> 05:20:39,152 CREATION, BUT STEVE JOBS
8078 05:20:36,050 –> 05:20:41,655 COULDN’T, REALLY,ENING YO, DO
8079 05:20:39,219 –> 05:20:41,922 WHAT TIM COOK HAS DONE IN MANY
8080 05:20:41,722 –> 05:20:43,723 RESPECTS.
8081 05:20:41,989 –> 05:20:46,793
WE HEARD WARREN BUFFET SAY
8082 05:20:43,790 –> 05:20:47,928 THAT APPLE HAS A PRODUCT THAT IS
8083 05:20:46,860 –> 05:20:49,362 INDISPENSABLE TO PEOPLE.
8084 05:20:47,995 –> 05:20:51,965 SORT OF COMPARE IT TO THE COST
8085 05:20:49,429 –> 05:20:52,198 OF A CAR VERSUS THE COST OF AN
8086 05:20:52,032 –> 05:20:54,768 iPHONE.
8087 05:20:52,265 –> 05:20:55,001 HOW MUCH MORE WE RELY ON APPLE
8088 05:20:54,835 –> 05:20:58,705 DEVICES.
8089 05:20:55,068 –> 05:21:00,173 WHAT DID YOU MAKE OF HOW HE
8090 05:20:58,772 –> 05:21:02,776 WEIGHED IN ON THIS OPENING
8091 05:21:00,240 –> 05:21:03,811 SAYING, LOOK, SELLING APPLE WAS
8092 05:21:02,843 –> 05:21:05,545 PROBABLY A MISTAKE.
8093 05:21:03,877 –> 05:21:07,781
ANY TIME YOU SELL A STOCK AND
8094 05:21:05,612 –> 05:21:10,183 IT SUBSEQUENT BY GOES UP, YOU
8095 05:21:07,848 –> 05:21:12,686 SORT OF MAYBE WISH YOU DIDN’T
8096 05:21:10,250 –> 05:21:14,121 SELL IT, EVEN THOUGH THAT’S
8097 05:21:12,753 –> 05:21:16,423 PRUDENT RISK MANAGEMENT.
8098 05:21:14,188 –> 05:21:18,525 INSTEAD OF BEMOANING THE FACT HE
8099 05:21:16,490 –> 05:21:23,030 SOLD 5% OF HIS APPLE POSITION,
8100 05:21:18,592 –> 05:21:28,135 HE HELD ON TO 95%.
8101 05:21:23,097 –> 05:21:28,469 AND CONSEQUENTLY – OVER
8102 05:21:28,202 –> 05:21:32,138 $100 BILLION.
8103 05:21:28,535 –> 05:21:33,540 AND I SPEAK FROM EXPERIENCELE I
8104 05:21:32,205 –> 05:21:37,611 BOUGHT APPLE WAY BACK WHEN.
8105 05:21:33,607 –> 05:21:39,512 IT WENT UP 20%, AND I SOLD IT.
8106 05:21:37,678 –> 05:21:40,247 APPLE IS NOT A TYPICAL
8107 05:21:39,579 –> 05:21:41,615 INVESTMENT FOR BUFFET.
8108 05:21:40,314 –> 05:21:43,750 IT’S A TECH STOCK.
8109 05:21:41,682 –> 05:21:45,251 AFTER THE FIRST BUBBLE, YOU
8110 05:21:43,817 –> 05:21:51,725 THINK HE WOULD HAVE – AND THE
8111 05:21:45,318 –> 05:21:52,059 FACT THAT HE JUST – IS WHAT’S
8112 05:21:51,792 –> 05:21:54,127 EXTRAORDINARY.
8113 05:21:52,126 –> 05:21:55,762 WE SHOULD BE CELEBRATING THAT,
8114 05:21:54,194 –> 05:22:02,369 NOT CRITICIZING HE SOLD A FEW
8115 05:21:55,829 –> 05:22:04,437 SHARES.
8116 05:22:02,436 –> 05:22:07,841
YEAH, YOU WANT TO JUMP IN
8117 05:22:04,504 –> 05:22:09,609 HERE GUYS AND TALK A LITTLE BIT
8118 05:22:07,908 –> 05:22:10,877 ABOUT THE THEMES WHITNEY’S BEEN
8119 05:22:09,676 –> 05:22:12,612 HITTING ON?
8120 05:22:10,944 –> 05:22:13,680 GOING BACK TO THE FIRST SOUND WE
8121 05:22:12,679 –> 05:22:14,714 PLAYED WHERE BUFFET IS TALKING
8122 05:22:13,747 –> 05:22:15,482 ABOUT THE STRENGTH OF ECONOMY
8123 05:22:14,781 –> 05:22:16,950 RIGHT NOW.
8124 05:22:15,548 –> 05:22:19,052 AND THAT WAS FRAMED OUT OF A
8125 05:22:17,017 –> 05:22:19,820 QUESTION ON, DID BERKSHIRE MISS
8126 05:22:19,119 –> 05:22:22,355 AN OPPORTUNITY?
8127 05:22:19,887 –> 05:22:26,727 I THINK THE SHAREHOLDERS’
8128 05:22:22,422 –> 05:22:29,929 QUESTION WAS, I’M INVESTING WITH
8129 05:22:26,794 –> 05:22:31,164 BERKSHIRE, WHICH HAS
8130 05:22:29,996 –> 05:22:34,000 $100 BILLION ON THE SHEET.
8131 05:22:31,231 –> 05:22:35,802 YOU DIDN’T DEPLOY THAT.
8132 05:22:34,067 –> 05:22:38,872 WHITNEY, THIS IS YOUR 23rd.
8133 05:22:35,869 –> 05:22:40,340 THIS IS MY 6th MEETING BUT IT
8134 05:22:38,939 –> 05:22:45,144 MADE ME THINK ABOUT THE
8135 05:22:40,407 –> 05:22:45,812 QUESTIONS I TYPICALLY GET EVERY
8136 05:22:45,211 –> 05:22:48,181 YEAR, WHICH ARE VERSIONS OF, WHY
8137 05:22:45,878 –> 05:22:48,348 DIDN’T YOU DO THING “X,” THING
8138 05:22:48,248 –> 05:22:50,450 “Y”?
8139 05:22:48,414 –> 05:22:50,784 I BROUGHT IT UP EARLIER IN THE
8140 05:22:50,517 –> 05:22:52,385 PROGRAM.
8141 05:22:50,851 –> 05:22:54,921 WE DIDN’T HAVE WARREN BUFFET
8142 05:22:52,452 –> 05:22:57,123 SITTING THERE AWAY HISTORY
8143 05:22:54,988 –> 05:22:57,557 LESSON ABOUT THE ECONOMY SINCE
8144 05:22:57,190 –> 05:22:59,293 WORLD WAR II.
8145 05:22:57,624 –> 05:23:00,627 HE WASN’T DEFENDING THE STATE OF
8146 05:22:59,359 –> 05:23:03,196 THE AMERICAN ECONOMY IN A WAY I
8147 05:23:00,693 –> 05:23:05,632 THINK HE’S GOTTEN USED TO OR
8148 05:23:03,263 –> 05:23:08,835 ALMOST FELT THE NEED TO, AND I
8149 05:23:05,699 –> 05:23:09,502 THOUGHT THAT WAS MAYBE A
8150 05:23:08,902 –> 05:23:10,937 REFRESHING IS THE WORD THAT CAME
8151 05:23:09,569 –> 05:23:13,273 TO MY MIND, BECAUSE IT’S THE
8152 05:23:11,004 –> 05:23:14,674 STUFF THAT COMES UP EVERY ANNUAL
8153 05:23:13,340 –> 05:23:18,011 MEETING WITH A LITTLE BIT OF
8154 05:23:14,741 –> 05:23:19,312 SECOND GUESSING, BUFFET DOING
8155 05:23:18,078 –> 05:23:21,114 HIS MACRO ANALYSIS.
8156 05:23:19,379 –> 05:23:22,882 WASN’T THE SAME THING AS LAST
8157 05:23:21,181 –> 05:23:25,552 YEAR WHEN EVERYTHING, FOR
8158 05:23:22,949 –> 05:23:27,354 OBVIOUS REASONS, BUT EVERYTHING
8159 05:23:25,618 –> 05:23:28,655 WAS FRAMED THROUGH THE STATE OF
8160 05:23:27,420 –> 05:23:29,790 THE PANDEMIC, WHAT’S GOING TO
8161 05:23:28,722 –> 05:23:31,191 HAPPEN NEXT?
8162 05:23:29,857 –> 05:23:32,826 WARREN, PLEASE TELL US?
8163 05:23:31,258 –> 05:23:34,494 I THINK AS HE SAID – WHAT WAS
8164 05:23:32,893 –> 05:23:34,761 THAT JOKE FROM THE NEBRASKA
8165 05:23:34,561 –> 05:23:36,730 GOVERNOR?
8166 05:23:34,828 –> 05:23:37,730 I’M ALL RIGHT WITH THAT ONE.
8167 05:23:36,796 –> 05:23:38,998 HE DIDN’T REALLY HAVE A COMMENT
8168 05:23:37,797 –> 05:23:40,867 ON THAT LAST YEAR, AND IT WAS
8169 05:23:39,065 –> 05:23:42,102 SORT OF THE ONLY THING THAT
8170 05:23:40,934 –> 05:23:47,507 EVERYONE WANTED TO HEAR.
8171 05:23:42,169 –> 05:23:48,875
YEAH, I WOULD JUST SAY, THIS
8172 05:23:47,574 –> 05:23:51,177 IS THE CORONAVIRUS PANDEMIC IS
8173 05:23:48,942 –> 05:23:52,212 THE THIRD BIG BUST IN THE 23
8174 05:23:51,244 –> 05:23:55,549 YEARS I HAVE BEEN COMING.
8175 05:23:52,279 –> 05:23:58,351 THERE WAS THE AFTERMATH OF THE
8176 05:23:55,616 –> 05:23:58,752 INTERNET BUBBLE, THE GLOBAL
8177 05:23:58,418 –> 05:24:00,087 FINANCIAL CRISIS.
8178 05:23:58,818 –> 05:24:02,355 IT WAS REMARKABLE HOW SIMILAR
8179 05:24:00,153 –> 05:24:03,857 THE TONE WAS A YEAR AGO,
8180 05:24:02,422 –> 05:24:05,758 REASSURING PEOPLE, NEVER BET
8181 05:24:03,924 –> 05:24:09,796 AGAINST AMERICA.
8182 05:24:05,825 –> 05:24:10,230 WE’RE GOING TO COME BACK.
8183 05:24:09,863 –> 05:24:12,465 ST
8184 05:24:10,296 –> 05:24:14,200 SIMILAR TO 2009 WHEN THE
8185 05:24:12,532 –> 05:24:15,202 MEETING WAS A MONTH AFTER THE
8186 05:24:14,267 –> 05:24:17,303 BOTTOM LIKE LAST YEAR.
8187 05:24:15,269 –> 05:24:18,838 PROBABLY THE BIGGEST MISTAKE
8188 05:24:17,370 –> 05:24:20,406 INFORMSERS MAKE IS WE’RE TOO
8189 05:24:18,905 –> 05:24:22,041 BEARISH AND ALWAYS SEEING THE
8190 05:24:20,473 –> 05:24:23,776 NEXT STORM AND ALWAYS GETTING
8191 05:24:22,108 –> 05:24:25,412 TOO DEFENSIVE AND SELLING OUR
8192 05:24:23,843 –> 05:24:34,387 WINNERS TOO EARLY AND BUFFET TO
8193 05:24:25,479 –> 05:24:35,622 HIS CREDIT HAS MANEINTAINED FOR0
8194 05:24:34,454 –> 05:24:37,824 PLUS YEAR OPTIMISM ABOUT AMERICA
8195 05:24:35,689 –> 05:24:39,126 AND PUT MONEY TO WORK WHEN OTHER
8196 05:24:37,891 –> 05:24:41,194 INVESTORS ARE PANICKING.
8197 05:24:39,192 –> 05:24:43,263 I WISH HE HAD DONE A LITTLE BIT
8198 05:24:41,261 –> 05:24:44,998 MORE OF THAT A YEAR AGO, BUT
8199 05:24:43,330 –> 05:24:46,533 GENERALLY SPEAKING THAT’S
8200 05:24:45,065 –> 05:24:50,970 QUIBBLING AROUND THE EDGES.
8201 05:24:46,600 –> 05:24:52,906 HE HAS FUNDAMENT ALLY BEEN RIGH
8202 05:24:51,037 –> 05:24:55,508 HIS ENTIRE REAR AND BEEN
8203 05:24:52,973 –> 05:24:56,309 OPTIMISTIC ABOUT AMERICA.
8204 05:24:55,575 –> 05:24:56,576 IT’S EASY NOW TO HAVE THAT
8205 05:24:56,376 –> 05:24:57,176 VIEWPOINT.
8206 05:24:56,643 –> 05:24:59,479 IT WAS NOT A YEAR AGO, BUT HE
8207 05:24:57,243 –> 05:25:00,146 WAS.
8208 05:24:59,546 –> 05:25:01,915
ALL RIGHT.
8209 05:25:00,213 –> 05:25:03,016 AGAIN, MORE TO TALK ABOUT HERE.
8210 05:25:01,982 –> 05:25:05,519 STAY TUNED.
8211 05:25:03,083 –> 05:25:09,189 WE’RE GOING TO GO TO A BREAK.
8212 05:25:05,586 –> 05:25:10,657 THIS IS THE POSTGAME SHOW OF THE
8213 05:25:09,256 –> 05:25:11,191 2021 BERKSHIRE HATHAWAY ANNUAL
8214 05:25:10,724 –> 05:25:12,292 MEETING OF SHAREHOLDERS.
8215 05:25:11,258 –> 05:25:12,292 STAY TUNED.
8216 05:27:27,294 –> 05:27:32,666
YAHOO FINANCE’S LIVE
8217 05:27:30,296 –> 05:27:34,333 COVERAGE OF THE ANNUAL BERKSHIRE
8218 05:27:32,732 –> 05:27:46,980 HATHAWAY SHAREHOLDERS MEETING IS
8219 05:27:34,400 –> 05:27:48,748 BROUGHT TO YOU BY –
8220 05:27:47,047 –> 05:27:50,183
WELCOME BACK TO YAHOO
8221 05:27:48,815 –> 05:27:52,719 FINANCE’S LIVE COVERAGE OF THE
8222 05:27:50,250 –> 05:27:55,855 BERKSHIRE HATHAWAY’S ANNUAL
8223 05:27:52,785 –> 05:27:56,589 SHAREHOLDERS MEETING.
8224 05:27:55,922 –> 05:28:00,460 A NUMBER OF ISSUES DISCUSSED
8225 05:27:56,656 –> 05:28:02,395 TODAY, BUT ONE OF THE
8226 05:28:00,527 –> 05:28:04,630 INTERESTING POINTS MADE BY
8227 05:28:02,462 –> 05:28:07,267 WARREN BUFFET IS SORT OF GIVES
8228 05:28:04,697 –> 05:28:08,935 ADVICE TO THOSE JUST DIPPING
8229 05:28:07,333 –> 05:28:11,671 THEIR TOES IN THE MARKET.
8230 05:28:09,002 –> 05:28:12,839 HE MADE A COMPARISON TO TODAY
8231 05:28:11,738 –> 05:28:15,275 VERSUS 1989.
8232 05:28:12,906 –> 05:28:16,109 TAKE A LISTEN TO WHAT HE HAD TO
8233 05:28:15,342 –> 05:28:17,644 SAY.
8234 05:28:16,176 –> 05:28:19,412
1989 WASN’T THE DARK AGES.
8235 05:28:17,711 –> 05:28:20,580 WE WEREN’T JUST DISCOVERING
8236 05:28:19,479 –> 05:28:22,849 CAPITALISM OR ANYTHING ELSE, AND
8237 05:28:20,647 –> 05:28:24,717 PEOPLE THOUGHT THEY KNEW A LOT
8238 05:28:22,916 –> 05:28:25,518 ABOUT THE STOCK MARKET AND THE
8239 05:28:24,784 –> 05:28:30,490 EFFICIENT MARKET THEORY WAS IN.
8240 05:28:25,585 –> 05:28:33,493 IT WAS NOT A BACKWARD TIME.
8241 05:28:30,557 –> 05:28:39,398 AND IF YOU LOOK, THE TOP COMPANY
8242 05:28:33,560 –> 05:28:44,036 AT THE TIME HAD A MARKET OF –
8243 05:28:39,465 –> 05:28:47,640 SO THE LARGEST COMPANY IN THE
8244 05:28:44,103 –> 05:28:48,341 WORLD HAS GONE FROM $100 MILLION
8245 05:28:47,707 –> 05:28:54,748 TO $2 TRILLION.
8246 05:28:48,408 –> 05:28:56,382 AT THE BOTTOM, THE NUMBER 20 HAS
8247 05:28:54,815 –> 05:28:57,483 GONE FROM 20 MILLION TO
8248 05:28:56,449 –> 05:28:59,352 SOMETHING A LITTLE OVER TEN
8249 05:28:57,550 –> 05:29:00,753 TIMES THAT.
8250 05:28:59,419 –> 05:29:04,491 WELL, THAT TELL US SOMETHING
8251 05:29:00,820 –> 05:29:08,394 ABOUT WHAT’S HAPPENED WE
8252 05:29:04,557 –> 05:29:14,300 QUALITY, WHICH IS A HOT SUBJECT
8253 05:29:08,461 –> 05:29:17,070 IN THIS CURRENT.
8254 05:29:14,367 –> 05:29:17,504 TELLS A LITTLE SOMETHING ABOUT
8255 05:29:17,137 –> 05:29:20,206 INFLATION.
8256 05:29:17,571 –> 05:29:20,973 IT TELLS YOU THAT CAPITALISM
8257 05:29:20,273 –> 05:29:30,917 WORKED INCREDIBLY WELL,
8258 05:29:21,040 –> 05:29:32,385 ESPECIALLY FOR THE CAPITALISTS.
8259 05:29:30,984 –> 05:29:33,687
– TODAY SAYING ESSENTIALLY
8260 05:29:32,452 –> 05:29:35,755 HOW MANY OF THOSE ARE GOING TO
8261 05:29:33,753 –> 05:29:36,856 BE AT THE TOP OF THE LIST 30
8262 05:29:35,821 –> 05:29:41,161 YEARS FROM NOW.
8263 05:29:36,923 –> 05:29:41,561 HE WAS SAYING WE WERE AS SURE OF
8264 05:29:41,228 –> 05:29:45,198 OU
8265 05:29:41,628 –> 05:29:47,200 OURSELVES BACK IN 1989 AS WE ARE
8266 05:29:45,265 –> 05:29:47,734 TODAY BUT THE WORLD CAN CHANGE.
8267 05:29:47,267 –> 05:29:51,938
INTERESTING.
8268 05:29:47,801 –> 05:29:53,773 BUFFET DID THE EXERCISE OF H
8269 05:29:52,005 –> 05:29:55,675 LOOKING AT THE MARKET CAPS AS HE
8270 05:29:53,840 –> 05:29:57,911 ALLUDED TO IN THAT CLIP.
8271 05:29:55,742 –> 05:29:59,378 EVERYONE SAW THE MEETING.
8272 05:29:57,978 –> 05:30:00,813 DIDN’T WANT TO PLAY ALL SEVEN
8273 05:29:59,445 –> 05:30:02,381 MINUTES OF HIS ANSWER.
8274 05:30:00,880 –> 05:30:03,916 THE GREAT TAKEAWAY IS THIS IS A
8275 05:30:02,448 –> 05:30:04,784 GREAT TIME TO BE AN INVESTOR IN
8276 05:30:03,983 –> 05:30:06,319 THE SOCK MARKET.
8277 05:30:04,851 –> 05:30:07,486 THE VALUE OF THE BIGGEST
8278 05:30:06,386 –> 05:30:09,922 COMPANIES IN THE STOCK MARKET,
8279 05:30:07,553 –> 05:30:13,259 ABOUT 20 TIMES HIGHER TODAY –
8280 05:30:09,989 –> 05:30:15,495 OR AT LEAST AT THE VERY TOP,
8281 05:30:13,326 –> 05:30:17,864 THAN IT WAS JUST 30 YEARS AGO.
8282 05:30:15,562 –> 05:30:19,131 BUT HIS LESSON, HIS ADVICE, AS
8283 05:30:17,931 –> 05:30:20,767 TENDED TO BE THE CASE OVER THE
8284 05:30:19,198 –> 05:30:23,135 LAST – YOU KNOW, HE’S GOTTEN
8285 05:30:20,833 –> 05:30:25,271 MORE VOCAL ABOUT IT IN THE LAST
8286 05:30:23,202 –> 05:30:27,473 10 OR 15 YEARS IS THAT YOU HAVE
8287 05:30:25,338 –> 05:30:28,641 AN OPTION AS AN INVESTOR TO JUST
8288 05:30:27,540 –> 05:30:30,910 BUY ALL THE STOCKS.
8289 05:30:28,708 –> 05:30:32,212 YOU CAN GET AN S&P 500 FUND
8290 05:30:30,977 –> 05:30:34,247 BASICALLY FOR FREE.
8291 05:30:32,279 –> 05:30:37,017 I THINK IT COSTS THREE OR FOUR
8292 05:30:34,314 –> 05:30:43,790 BASIS POINTS OVER AT VANGUARD,
8293 05:30:37,083 –> 05:30:44,257 OR .3 OR .4 BASIS POINTS, EXCUSE
8294 05:30:43,857 –> 05:30:46,559 ME, OVER AT VANGUARD.
8295 05:30:44,324 –> 05:30:49,295 YOU’RE BUYING THE ENTIRE MARKET
8296 05:30:46,626 –> 05:30:51,464 FOR FREE AND THE ENTIRE MARKET
8297 05:30:49,362 –> 05:30:54,100 OVER TIME HAS GONE UP NICELY.
8298 05:30:51,531 –> 05:30:56,102 YOU DON’T NEED TO BE ENGAGED IN
8299 05:30:54,167 –> 05:30:56,969 TRYING TO GUESS WHICH OF THE
8300 05:30:56,169 –> 05:30:59,906 BUSINESSES WILL BE LARGE OVER
8301 05:30:57,036 –> 05:31:03,009 THE NEXT 30 YEARS BUT RATHER CAN
8302 05:30:59,973 –> 05:31:03,709 ACCESS ALL THE BUSINESSES AND
8303 05:31:03,076 –> 05:31:06,046 ALL THE APPRECIATION THEY’RE
8304 05:31:03,776 –> 05:31:09,416 LIKELY TO ENJOY OVER THE NEXT 30
8305 05:31:06,112 –> 05:31:10,016 YEARS WITHOUT HAVING TO ENGAGE
8306 05:31:09,482 –> 05:31:11,217 IN THE VERY DIFFICULT JOB OF
8307 05:31:10,083 –> 05:31:12,551 TRYING TO PICK INDIVIDUAL
8308 05:31:11,284 –> 05:31:13,686 SECURITIES ON WHICH ONES ARE
8309 05:31:12,618 –> 05:31:15,354 GOING TO PERFORM BEST.
8310 05:31:13,753 –> 05:31:21,694
JULIA, YOU KNOW, IT SEEMED TO
8311 05:31:15,421 –> 05:31:22,828 BE A BIT OF A CAUTIONARY TALE
8312 05:31:21,761 –> 05:31:23,229 HEAR THAT WARREN ONE BUFFET WAS
8313 05:31:22,895 –> 05:31:25,564 TRYING TO TELL.
8314 05:31:23,296 –> 05:31:27,767 HE WAS TALKING ABOUT TRADERS
8315 05:31:25,631 –> 05:31:27,967 LOOKING TO MAKE 30, 40 TRADES A
8316 05:31:27,833 –> 05:31:30,804 DATE.
8317 05:31:28,034 –> 05:31:34,440 HE SAID, IF YOU LOOK BACK IN
8318 05:31:30,870 –> 05:31:34,907 1989, THE BESTS IN 1989 DIDN’T
8319 05:31:34,507 –> 05:31:36,175 NECESSARILY DO WELL.
8320 05:31:34,974 –> 05:31:38,244
THAT’S RIGHT AND WHEN YOU
8321 05:31:36,242 –> 05:31:39,712 LOOK AT THE COMPANIES I THINK
8322 05:31:38,311 –> 05:31:41,447 THERE ARE ONLY SIX AMERICAN
8323 05:31:39,779 –> 05:31:41,647 COMPANIES ON THAT LIST AT THE
8324 05:31:41,514 –> 05:31:44,016 TIME.
8325 05:31:41,714 –> 05:31:45,751 THOSE SIX COMPANIES ARE NOWHERE
8326 05:31:44,083 –> 05:31:47,654 TO BE FOUND ON TODAY’S LIST,
8327 05:31:45,818 –> 05:31:49,088 WHICH IS DOMINATED BY AMERICAN
8328 05:31:47,721 –> 05:31:50,123 COMPANIES, SPECIFICALLY SOME OF
8329 05:31:49,155 –> 05:31:52,158 THOSE BIG TECH NAMES.
8330 05:31:50,190 –> 05:31:54,327 BUT KIND OF BUILDING ON WHAT
8331 05:31:52,225 –> 05:31:56,095 MILES SAID, WARREN BUFFET HAS
8332 05:31:54,394 –> 05:32:00,366 LONG ADVOCATED FOR INVESTORS
8333 05:31:56,162 –> 05:32:00,866 BUYING THESE LOW-COST INDEX
8334 05:32:00,433 –> 05:32:03,303 FUN
8335 05:32:00,933 –> 05:32:04,603 FUNDS RATHER THAN PAYING SOMEONE
8336 05:32:03,370 –> 05:32:05,972 MANAGEMENT FEES TO PICK THE NEW
8337 05:32:04,670 –> 05:32:08,307 THING TO SELL THESE DAYS,
8338 05:32:06,039 –> 05:32:09,742 WHETHER IT’S THE LATEST IPO OR
8339 05:32:08,374 –> 05:32:11,911 LATEST CPAC.
8340 05:32:09,809 –> 05:32:13,879 AND THEN ONE OTHER SMALL THING I
8341 05:32:11,978 –> 05:32:16,682 WILL ADD, BECAUSE THE LATEST
8342 05:32:13,946 –> 05:32:18,784 LIST HE DID SHOW FOR MARCH 2021
8343 05:32:16,749 –> 05:32:19,986 WITH THOSE BIG TECH COMPANIES,
8344 05:32:18,851 –> 05:32:21,988 LATER IN THE CONVERSATION,
8345 05:32:20,053 –> 05:32:24,490 CHARLIE MUNGER DID BRING UP THAT
8346 05:32:22,055 –> 05:32:26,025 LIST AND POINT OUT THAT APPLE
8347 05:32:24,557 –> 05:32:27,393 HAS BEEN VERY IMPORTANT TO
8348 05:32:26,092 –> 05:32:28,528 AMERICA, AND WE’VE DONE SO WELL
8349 05:32:27,460 –> 05:32:31,864 IN THIS NEW TECH FIELD.
8350 05:32:28,595 –> 05:32:33,632 AND HE ALSO SAID – MUNGER SAID
8351 05:32:31,931 –> 05:32:35,034 HE WOULD NOT LIKE TO PRESENT
8352 05:32:33,699 –> 05:32:37,203 GIANTS BE BROUGHT DOWN TO LOW
8353 05:32:35,101 –> 05:32:37,503 LEVEL BY ANTI-COMPETITIVE
8354 05:32:37,270 –> 05:32:38,838 REASONINGS.
8355 05:32:37,570 –> 05:32:42,375 JUST AN INTERESTING POINT HE
8356 05:32:38,905 –> 05:32:43,042 BROUGHT UP LATER IN THE MEANING
8357 05:32:42,441 –> 05:32:44,944 THAT HE’S VERY MUCH IN SUPPORT
8358 05:32:43,109 –> 05:32:48,314 OF THESE BIG TECH COMPANIES
8359 05:32:45,011 –> 05:32:48,748 WHICH HAVE BEEN UNDER A LOT OF
8360 05:32:48,381 –> 05:32:49,983 SC
8361 05:32:48,814 –> 05:32:51,985 SCRUTINY LATELY.
8362 05:32:50,050 –> 05:32:54,020
YOU’RE RIGHT, JULIA.
8363 05:32:52,052 –> 05:32:54,921 ANDY I WONDER WHAT YOU MADE
8364 05:32:54,087 –> 05:32:56,723 ABOUT THOSE COMMENTS.
8365 05:32:54,987 –> 05:32:59,858 THEY WERE ALSO ASKED ABOUT
8366 05:32:56,790 –> 05:33:01,861 VALUATIONS, WHETHER THEY THOUGHT
8367 05:32:59,925 –> 05:33:03,062 THEY WERE TOO SKY HIGH.
8368 05:33:01,928 –> 05:33:04,263 DIDN’T SOUND LIKE THEY THOUGHT
8369 05:33:03,129 –> 05:33:06,666 THEY WERE IN HE TALKED ABOUT
8370 05:33:04,330 –> 05:33:08,701 THAT RELATIVE TO INTEREST RATES,
8371 05:33:06,733 –> 05:33:10,870 AKIKO, SAYING YOU’VE GOT
8372 05:33:08,768 –> 05:33:14,007 INTEREST RATES AT THIS LEVEL, IT
8373 05:33:10,937 –> 05:33:14,307 MAKES STOCKS LOOK MUCH LESS
8374 05:33:14,074 –> 05:33:15,441 EXPENSIVE.
8375 05:33:14,374 –> 05:33:17,910 YOU DIVERSE INTO NEGATIVE
8376 05:33:15,508 –> 05:33:18,945 INTEREST RATES, SOME INTERESTING
8377 05:33:17,977 –> 05:33:21,080 THINGS THERE.
8378 05:33:19,012 –> 05:33:22,515 ANOTHER THING THAT CAUGHT MY EAR
8379 05:33:21,147 –> 05:33:24,550 WAS HIS DISCUSSION OF AUTO
8380 05:33:22,582 –> 05:33:26,652 STOCKS AND THE HUNDREDS OF AUTO
8381 05:33:24,617 –> 05:33:31,891 STOCKS THAT EXISTED 100 YEARS OR
8382 05:33:26,719 –> 05:33:33,193 SO IN THIS COUNTRY AND HOW THEY
8383 05:33:31,958 –> 05:33:33,493 ALL TURNED OUT TO BE BAD
8384 05:33:33,259 –> 05:33:34,427 INVESTMENTS.
8385 05:33:33,560 –> 05:33:35,895 THAT WAS INTERESTING.
8386 05:33:34,494 –> 05:33:37,464 ANOTHER POINT I THOUGHT WAS
8387 05:33:35,962 –> 05:33:41,634 INTERESTING WAS HIS TAKE LATE IN
8388 05:33:37,530 –> 05:33:45,237 THE MEETING ABOUT SHORTAGES.
8389 05:33:41,700 –> 05:33:46,739 GREG ALSO CHAMI CHIMING IN THER
8390 05:33:45,304 –> 05:33:48,708 SAYING THE ECONOMY WAS HOT.
8391 05:33:46,806 –> 05:33:49,875 BUFFET SAID IT WAS RED-HOT, AS A
8392 05:33:48,775 –> 05:33:52,612 MATTER OF FACT, AND THAT THERE
8393 05:33:49,942 –> 05:33:54,280 IS UPWARD PRESSURE ON PRICING
8394 05:33:52,678 –> 05:33:56,782 THEY’RE SEEING THROUGHOUT THE
8395 05:33:54,347 –> 05:33:57,049 BERKSHIRE HATHAWAY ECOSYSTEM, IF
8396 05:33:56,849 –> 05:33:58,918 YOU WILL.
8397 05:33:57,116 –> 05:33:59,752 SO A LOT TO CHEW ON THERE FOR
8398 05:33:58,985 –> 05:34:02,422 INVESTORS IN BERKSHIRE HATHAWAY
8399 05:33:59,819 –> 05:34:03,756 AND INVESTORS IN GENERAL.
8400 05:34:02,488 –> 05:34:03,923 MUCH MORE TO DISCUSS HERE COMING
8401 05:34:03,823 –> 05:34:05,191 UP.
8402 05:34:03,989 –> 05:34:05,392 BUT WE’RE GOING TO TAKE A QUICK
8403 05:34:05,258 –> 05:34:07,127 BREAK.
8404 05:34:05,458 –> 05:34:07,127 STAY TUNED, AND MORE TO COME.
8405 05:36:23,963 –> 05:36:28,133
WELCOME BACK TO THE 2021
8406 05:36:27,133 –> 05:36:31,737 BERKSHIRE HATHAWAY ANNUAL
8407 05:36:28,200 –> 05:36:32,004 MEETING SHAREHOLDERS POSTGAME
8408 05:36:31,804 –> 05:36:34,440 PROGRAM.
8409 05:36:32,071 –> 05:36:38,644 BUFFET TALKING A LOT ABOUT THE
8410 05:36:34,507 –> 05:36:39,745 STIMULUS WE HAD OVER THE PAST 12
8411 05:36:38,711 –> 05:36:40,146 MONTHS AND THAT EFFECT ON THE
8412 05:36:39,812 –> 05:36:41,714 ECONOMY.
8413 05:36:40,213 –> 05:36:42,281 TAKE A LISTEN TO WHAT HE HAD TO
8414 05:36:41,781 –> 05:36:44,350 SAY HERE.
8415 05:36:42,348 –> 05:36:47,586
IT’S A FASCINATING TIME.
8416 05:36:44,417 –> 05:36:49,722 WE’VE NEVER REALLY SEEN WHAT
8417 05:36:47,653 –> 05:36:52,725 SHOVELING MONEY IN ON A BASIS
8418 05:36:49,789 –> 05:36:54,860 WE’RE DOING IT OFF, ON A FISCAL
8419 05:36:52,792 –> 05:37:00,266 BASIS FOLLOWING A MONETARY
8420 05:36:54,927 –> 05:37:02,401 POLICY OF SOMETHING CLOSE TO 0%
8421 05:37:00,332 –> 05:37:03,169 INTEREST RATES, AND IT IS
8422 05:37:02,468 –> 05:37:06,539 ENORMOUSLY PLEASANT.
8423 05:37:03,235 –> 05:37:07,806 BUT IN ECONOMICS YOU HAVE TO
8424 05:37:06,606 –> 05:37:08,340 REMEMBER, YOU CAN NEVER DO ONLY
8425 05:37:07,873 –> 05:37:11,043 ONE THING.
8426 05:37:08,407 –> 05:37:11,243 YOU ALWAYS HAVE TO SAY AND THEN
8427 05:37:11,110 –> 05:37:13,779 WHAT?
8428 05:37:11,310 –> 05:37:15,815 AND WE’RE SENDING OUT HUGE SUMS.
8429 05:37:13,846 –> 05:37:17,283 I MEAN, THE PRESIDENT SAID IT ON
8430 05:37:15,882 –> 05:37:21,721 WEDNESDAY – 85% OF THE PEOPLE
8431 05:37:17,350 –> 05:37:21,921 ARE GOING TO GET A $1,400 CHECK.
8432 05:37:21,788 –> 05:37:23,923 85%.
8433 05:37:21,988 –> 05:37:27,292 AND A COUPLE OF YEARS AGO WE
8434 05:37:23,989 –> 05:37:28,661 WERE SAYING 40% OF THE PEOPLE
8435 05:37:27,359 –> 05:37:32,297 WOULD NEVER COME UP WITH $400 IN
8436 05:37:28,728 –> 05:37:34,033 CASH SOME WE’VE GOT 8 5% OF THE
8437 05:37:32,364 –> 05:37:37,403 PEOPLE GETTING THOSE SUMS AND SO
8438 05:37:34,100 –> 05:37:39,171 FAR WE HAVE HAD NO UNPLEASANT
8439 05:37:37,470 –> 05:37:39,872 CONSEQUENCES.
8440 05:37:39,238 –> 05:37:41,574 PEOPLE FEEL BETTER.
8441 05:37:39,939 –> 05:37:41,807 PEOPLE GET THE MONEY, FEEL
8442 05:37:41,641 –> 05:37:43,242 BETTER.
8443 05:37:41,874 –> 05:37:45,244 PEOPLE LESSONING MONEY DON’T
8444 05:37:43,309 –> 05:37:47,413 FEEL VERY GOOD, BUT IT CAUSES
8445 05:37:45,311 –> 05:37:48,881 STOCKS TO GO UP, CAUSES
8446 05:37:47,480 –> 05:37:52,017 BUSINESSES TO FLOURISH.
8447 05:37:48,948 –> 05:37:54,253 IT CAUSES AN ELECTORATE TO BE
8448 05:37:52,084 –> 05:37:57,189 HAPPY, AND WE’LL SEE IF IT CAUSE
8449 05:37:54,320 –> 05:37:59,091 ANYTHING ELSE.
8450 05:37:57,256 –> 05:38:02,628 IF IT DOESN’T CAUSE ANYTHING
8451 05:37:59,158 –> 05:38:03,362 ELSE YOU CAN COUNT ON IT
8452 05:38:02,695 –> 05:38:04,897 CONTINUE.
8453 05:38:03,429 –> 05:38:06,332 BUT, NO, THERE ARE CONSEQUENCES
8454 05:38:04,964 –> 05:38:08,333 TO EVERYTHING IN ECONOMICS.
8455 05:38:06,399 –> 05:38:10,336
WHITNEY TILSON I WANT TO GO
8456 05:38:08,400 –> 05:38:12,705 TO YOU AND GET YOUR REACTION TO
8457 05:38:10,403 –> 05:38:14,440 WHAT BUFFET JUST SAID ABOUT
8458 05:38:12,772 –> 05:38:15,340 STIMULUS AND THE EFFECT ON
8459 05:38:14,507 –> 05:38:17,509 ECONOMY AND MARKETS?
8460 05:38:15,407 –> 05:38:19,611
RIGHT AFTER THAT, MUNGER
8461 05:38:17,576 –> 05:38:21,447 WEIGHED IN AND SAID, IF IT
8462 05:38:19,678 –> 05:38:23,682 CONTINUES FOR TOO LONG, THE
8463 05:38:21,514 –> 05:38:25,751 CONSEQUENCE WILL BE TERRIBLE,
8464 05:38:23,749 –> 05:38:28,420 FURTHER MAKING BUFFET’S POINT.
8465 05:38:25,818 –> 05:38:32,224 BUT IT REALLY REFLECTS THEIR
8466 05:38:28,487 –> 05:38:34,126 HUMILITY IN THAT WHO COULD HAVE
8467 05:38:32,291 –> 05:38:35,861 EVER EXPECTED ANY OF THIS?
8468 05:38:34,193 –> 05:38:37,496 THEY SAID AT ONE POINT IT’S JUST
8469 05:38:35,928 –> 05:38:39,565 THE MOST REMARKABLE TIME IN
8470 05:38:37,563 –> 05:38:41,633 THEIR ENTIRE LIVES TO JUST SIT
8471 05:38:39,632 –> 05:38:44,771 BECOME AND BE A SPECTATOR AND
8472 05:38:41,700 –> 05:38:45,604 LOOK A WHAT’S GOING ON.
8473 05:38:44,837 –> 05:38:47,606 AND THEY ARE BASICALLY – TO BE
8474 05:38:45,671 –> 05:38:49,675 A SUCCESSFUL INVESTOR YOU HAVE
8475 05:38:47,673 –> 05:38:51,143 TO BE VERY ARROGANT TO BELIEVE
8476 05:38:49,742 –> 05:38:52,578 THAT YOU CAN OUTWIT ALL THE
8477 05:38:51,210 –> 05:38:54,546 OTHER INVESTORS OUT THERE.
8478 05:38:52,645 –> 05:38:56,648 BUT YOU ALSO HAVE TO HAVE A
8479 05:38:54,613 –> 05:38:59,184 TREMENDOUS HUMILITY, AND THEY
8480 05:38:56,715 –> 05:39:00,686 OUTLINED THIS INCREDIBLE PUZZLE.
8481 05:38:59,251 –> 05:39:00,919 THEY DON’T CLAIM TO HAVE THE
8482 05:39:00,753 –> 05:39:02,521 ANSWERS.
8483 05:39:00,986 –> 05:39:05,291 THEY DON’T KNOW HOW THE STORY’S
8484 05:39:02,588 –> 05:39:06,291 GOING END, BUT THEY’RE ENJOYING
8485 05:39:05,358 –> 05:39:08,093 THE SHOW, AND IN THE MEANTIME
8486 05:39:06,358 –> 05:39:10,329 THEY HAVE THEIR HEADS DOWN,
8487 05:39:08,160 –> 05:39:13,198 LOOKING TO BUY BACK THEIR OWN
8488 05:39:10,396 –> 05:39:14,667 STACK, MAKE ACQUISITIONS, BUY
8489 05:39:13,265 –> 05:39:16,935 STOCKS IN THE MARKET AND DO WHAT
8490 05:39:14,734 –> 05:39:19,204 THEY’VE ALWAYS DONE AND THEY’RE
8491 05:39:17,002 –> 05:39:19,671 NOT TEMPTED TO STRAY FROM WHAT
8492 05:39:19,271 –> 05:39:22,141 THEY’VE ALWAYS DONE.
8493 05:39:19,738 –> 05:39:22,308 IT’S A GOOD LESSON FOR ALL OF
8494 05:39:22,208 –> 05:39:24,944 US.
8495 05:39:22,374 –> 05:39:25,144
AKIKO, YOU HAD A TAKE ON
8496 05:39:25,011 –> 05:39:26,545 THIS.
8497 05:39:25,211 –> 05:39:26,846 SOME FINAL THOUGHTS GOING
8498 05:39:26,612 –> 05:39:27,513 AROUND.
8499 05:39:26,913 –> 05:39:29,548 YOU FIRST.
8500 05:39:27,580 –> 05:39:30,315
TO WHITNEY’S POINT, THEY WERE
8501 05:39:29,615 –> 05:39:32,017 ANSWERING A QUESTION THAT CAME
8502 05:39:30,382 –> 05:39:35,020 IN AND SAID, WHY DID YOU JUST
8503 05:39:32,084 –> 05:39:36,822 SIT ON YOUR HAND HERE WHEN THERE
8504 05:39:35,087 –> 05:39:37,089 WERE MORE OPPORTUNITIES IN THE
8505 05:39:36,889 –> 05:39:40,292 MARKET?
8506 05:39:37,156 –> 05:39:40,492 I THINK WHITNEY BRINGS UP A GOOD
8507 05:39:40,359 –> 05:39:42,361 POINT.
8508 05:39:40,559 –> 05:39:46,899 WE HEARD WARREN BUFFET AS WELL
8509 05:39:42,428 –> 05:39:47,900 AS CHARLIE MUNGER SAYING, LOOK,
8510 05:39:46,966 –> 05:39:48,100 THE ECONOMY RUNNING IN HIGH
8511 05:39:47,967 –> 05:39:49,469 GEAR.
8512 05:39:48,167 –> 05:39:51,003 I DON’T THINK ANY OF US COULD
8513 05:39:49,535 –> 05:39:53,939 HAVE PREDICTED THAT.
8514 05:39:51,070 –> 05:39:55,007 I THOUGHT THEIR PGS ON THE
8515 05:39:54,006 –> 05:39:55,307 AIRLINES WERE INTERESTING AS
8516 05:39:55,074 –> 05:39:56,809 WELL.
8517 05:39:55,374 –> 05:39:58,811 THEY HAVE GOTTEN SOME HEAT.
8518 05:39:56,876 –> 05:40:01,513 WE HEARD WARREN BUFFET SAY,
8519 05:39:58,878 –> 05:40:04,850 LOOK, THEY WERE THE BIG
8520 05:40:01,580 –> 05:40:07,219 BENEFICIARIES OF THE C.A.R.E.S.
8521 05:40:04,917 –> 05:40:08,721 ACT, BUT AT THE END OF THE DAY
8522 05:40:07,286 –> 05:40:12,558 THEY WOULD HAVE STUCK TO THEIR
8523 05:40:08,788 –> 05:40:16,295 POSITIONS, PULLING OUT OF
8524 05:40:12,625 –> 05:40:16,562 AIRLINE STOCKS AND PARING BACK
8525 05:40:16,362 –> 05:40:19,432 ON BANKS.
8526 05:40:16,629 –> 05:40:20,732
JULIA, WHAT ABOUT YOU?
8527 05:40:19,499 –> 05:40:21,233 REGARDING THE STIMULUS OR JUST
8528 05:40:20,799 –> 05:40:21,901 IN GENERAL.
8529 05:40:21,299 –> 05:40:25,037
SURE.
8530 05:40:21,968 –> 05:40:27,673 THEY SAID PEOPLE – I’M GOING
8531 05:40:25,104 –> 05:40:27,907 PARAPHRASE HERE – NUMB TO
8532 05:40:27,740 –> 05:40:29,408 NUMBERS.
8533 05:40:27,974 –> 05:40:31,243 TRILLIONS DON’T MEAN ANYTHING TO
8534 05:40:29,475 –> 05:40:33,412 ANYBODY, BUT $1,400 MEANS
8535 05:40:31,310 –> 05:40:35,414 SOMETHING TO THEM.
8536 05:40:33,478 –> 05:40:37,249 BUFFET TALKING ABOUT CHARLIE
8537 05:40:35,481 –> 05:40:39,084 MUNGER AND WE’RE ALL WITNESSING
8538 05:40:37,316 –> 05:40:39,418 WHAT THEY CALL THE MOST
8539 05:40:39,151 –> 05:40:45,091 INTERESTING-.
8540 05:40:39,484 –> 05:40:45,824 I AM SO LOOKING FORWARD TO THIS
8541 05:40:45,157 –> 05:40:46,459 MEETING IN 2022, BEING BACK IN
8542 05:40:45,891 –> 05:40:48,394 PERSON WITH EVERYONE.
8543 05:40:46,526 –> 05:40:49,862 IT’S BEEN ONE OF THE MOST
8544 05:40:48,461 –> 05:40:50,396 UNPRECEDENTED TIMES OF OUR
8545 05:40:49,929 –> 05:40:52,364 LIVES.
8546 05:40:50,463 –> 05:40:54,433 I KNOW WE SAY THAT A LOT, BUT
8547 05:40:52,431 –> 05:40:55,868 THIS MEETING LEFT ME FEELING
8548 05:40:54,499 –> 05:40:57,536 MORE CONFIDENT THAN I DID LAST
8549 05:40:55,935 –> 05:40:59,271 TIME THIS YEAR FOR SURE.
8550 05:40:57,603 –> 05:40:59,839
AND MILES, FINAL THOUGHTS
8551 05:40:59,337 –> 05:41:00,673 FROM YOU?
8552 05:40:59,906 –> 05:41:04,176
THAT’S IT.
8553 05:41:00,740 –> 05:41:07,579 WE’LL SEE EVERYBODY AT THE OLD
8554 05:41:04,243 –> 05:41:11,683 MATTRESS FACTORY ON 13th STREET
8555 05:41:07,646 –> 05:41:12,451 NEXT YEAR AFTER THE 2022 ANNUAL
8556 05:41:11,750 –> 05:41:14,119 SHAREHOLDER MEETING.
8557 05:41:12,517 –> 05:41:15,754
SHORT AND SWEET.
8558 05:41:14,186 –> 05:41:17,723 LOTS TO CHEW ON OVER SATURDAY
8559 05:41:15,821 –> 05:41:18,724 NIGHT AND INTO SUNDAY FOR
8560 05:41:17,790 –> 05:41:21,326 SHAREHOLDERS AND FOR THE MARKETS
8561 05:41:18,791 –> 05:41:23,262 IN TERMS OF THINGS WARREN BUFFET
8562 05:41:21,393 –> 05:41:25,130 AND CHARLIE MUNGER DISCUSSED.
8563 05:41:23,329 –> 05:41:26,732 YES, THE DYNAMIC DUO IS BACK,
8564 05:41:25,197 –> 05:41:28,767 AND WE WANT TO THANK YOU ALL
8565 05:41:26,799 –> 05:41:31,070 VERY MUCH FOR WATCHING THIS LIVE
8566 05:41:28,834 –> 05:41:33,572 STREAM OF THE BERKSHIRE HATHAWAY
8567 05:41:31,137 –> 05:41:34,940 2021 ABOUT YULE SHAREHOLDERS
8568 05:41:33,639 –> 05:41:37,276 MEETING HERE ON YAHOO FINANCE.
8569 05:41:35,007 –> 05:41:37,476 HAVE A GREAT WEEKEND AND A GREAT
8570 05:41:37,343 –> 05:41:38,244 YEAR.
8571 05:41:37,543 –> 05:41:38,444 UNTIL WE SEE YOU AGAIN NEXT
8572 05:41:38,311 –> 05:41:38,678 YEAR.
8573 05:41:38,511 –> 05:41:39,679 BYE-BYE.
8574 05:41:38,744 –> 05:41:39,679 THANKS.