AGM 2014

[Guest longinvestor]

Great meeting. Someone will be posting notes soon, as usual.

 

WEB and CM were as sharp as ever. CM weighed in on all but a few questions. He even grabbed the microphone to answer the question on underperformance to the index. Called it insane and had to do with Warren setting himself a very high bar.

I thought that the analyst questions were mostly weak. Some of the panelists' picked decent submitted questions. Some of the best came from the floor.

Couldn't be happier holding BRK

 

[redskin]

Doug Kass seems to think the meeting is a waste of time....  http://media.bloomberg.com/bb/avfile/News/Surveillance/vBt7dJ2LBVaw.mp3

[Palantir]

To be fair, Warren and Charlie never answer the interesting and important questions, so all you are left with is "What is the best question somebody has asked you?"  ::)

[cubsfan]

Doug Kass seems to think the meeting is a waste of time....  http://media.bloomberg.com/bb/avfile/News/Surveillance/vBt7dJ2LBVaw.mp3

 

If you were at last year's meeting like I was, you could conclude that Doug Kass is a waste of time, and has an ax to grind since

Munger pimped him when he asked to be funded with $100M.

 

 

[Guest longinvestor]

To be fair, Warren and Charlie never answer the interesting and important questions, so all you are left with is "What is the best question somebody has asked you?"  ::)

 

They answered all my questions all right. Too bad that others did not feel that way, folks are fine to go to someone else to get their questions answered. Besides, they have been asked the same questions over and over again. They try new and interesting ways to answer them.

 

At 83 and 90, they have my full appreciation for doing what they do, educate, freely. It is an extremely benevolent way of giving back. Surely, many of the regulars to Omaha share this view.

 

 

[cubsfan]

To be fair, Warren and Charlie never answer the interesting and important questions, so all you are left with is "What is the best question somebody has asked you?"  ::)

 

They answered all my questions all right. Too bad that others did not feel that way, folks are fine to go to someone else to get their questions answered. Besides, they have been asked the same questions over and over again. They try new and interesting ways to answer them.

 

At 83 and 90, they have my full appreciation for doing what they do, educate, freely. It is an extremely benevolent way of giving back. Surely, many of the regulars to Omaha share this view.

 

Yep, I loved it and the other 3 guys that attended with me really enjoyed it.  Why be disappointed because they skipped answering stupid questions.

[Palantir]

To be fair, Warren and Charlie never answer the interesting and important questions, so all you are left with is "What is the best question somebody has asked you?"  ::)

 

They answered all my questions all right. Too bad that others did not feel that way, folks are fine to go to someone else to get their questions answered. Besides, they have been asked the same questions over and over again. They try new and interesting ways to answer them.

 

At 83 and 90, they have my full appreciation for doing what they do, educate, freely. It is an extremely benevolent way of giving back. Surely, many of the regulars to Omaha share this view.

 

Good for you. However, I think it is disappointing that they continue to ignore pertinent questions about the firm, and then some fanboys are only too eager to cloak them with "benevolency", because you know, we are just lucky to be graced with their presence, so how could anybody have a question?

[reddog66]

 

 

They answered all my questions all right. Too bad that others did not feel that way, folks are fine to go to someone else to get their questions answered. Besides, they have been asked the same questions over and over again. They try new and interesting ways to answer them.

 

At 83 and 90, they have my full appreciation for doing what they do, educate, freely. It is an extremely benevolent way of giving back. Surely, many of the regulars to Omaha share this view.

 

I could not agree more

[xo 1]

To be fair, Warren and Charlie never answer the interesting and important questions, so all you are left with is "What is the best question somebody has asked you?"  ::)

 

As someone who did not able to attend this year, could you list some of the unanswered questions you have in mind.  From the media live blog and summary reports, I haven't come across the unanswered questions.  (It has appeared that the media and analyst questions might have been less compelling this year than last year, but the shareholder questions perhaps betters.)

 

[Palantir]

One question somebody asked, was, which company would you put your net worth into, apart from brk, which I thought was an interesting question. I think a number of detailed questions about his holdings would be interesting, eg IBM.

 

Furthermore, there are a range of possible questions about succession planning, apart from simply who will replace him. What will be the structure of the corporate entity given that the new CEO will not have the same relationship with his managers as Web did? What will happen to the  float if a major player like Jain were to leave?

[Kraven]

One question somebody asked, was, which company would you put your net worth into, apart from brk, which I thought was an interesting question. I think a number of detailed questions about his holdings would be interesting, eg IBM.

 

Furthermore, there are a range of possible questions about succession planning, apart from simply who will replace him. What will be the structure of the corporate entity given that the new CEO will not have the same relationship with his managers as Web did? What will happen to the  float if a major player like Jain were to leave?

 

You are not allowed to ask these questions.  In asking, you have proven yourself unworthy.  In fact, I am fairly positive you are not allowed to even think them and that this activity is tracked and cataloged.  How this is done or for what purposes I do not know.

[xo 1]

One question somebody asked, was, which company would you put your net worth into, apart from brk, which I thought was an interesting question. I think a number of detailed questions about his holdings would be interesting, eg IBM.

 

Furthermore, there are a range of possible questions about succession planning, apart from simply who will replace him. What will be the structure of the corporate entity given that the new CEO will not have the same relationship with his managers as Web did? What will happen to the  float if a major player like Jain were to leave?

 

Thanks.  I agree those would have been interesting questions to have answered, had they been asked. 

[merkhet]

At the beginning of every Q&A session, they always say they are not going to talk about existing investments or future investments.

 

I don't know why people think they're going to get a stock tip out of these meetings.

[Palantir]

^So Buffett has never talked about See's candies, or Geico, or Iscar at the Q&A? Furthermore, are the questions on succession issues I mentioned also current/future investments?

[merkhet]

^So Buffett has never talked about See's candies, or Geico, or Iscar at the Q&A? Furthermore, are the questions on succession issues I mentioned also current/future investments?

 

Clearly, I was talking about stocks. If you see See's, GEICO or Iscar traded somewhere, let me know so I can buy myself a piece of that...

[cubsfan]

For those of you that did not make it to Omaha - here's a little taste:

 

 

Great stuff - how many CEO's do this kind of thing?

[fareastwarriors]

For those of you that did not make it to Omaha - here's a little taste:

 

 

Great stuff - how many CEO's do this kind of thing?

 

 

that was great. thanks!

[Guest longinvestor]

One question somebody asked, was, which company would you put your net worth into, apart from brk, which I thought was an interesting question. I think a number of detailed questions about his holdings would be interesting, eg IBM.

 

Furthermore, there are a range of possible questions about succession planning, apart from simply who will replace him. What will be the structure of the corporate entity given that the new CEO will not have the same relationship with his managers as Web did? What will happen to the  float if a major player like Jain were to leave?

How do you know that the relationship will be different?

[Palantir]

I know their relationship will be different, because he will be a different person. It follows that the intepersonal relationship would change.

[Grenville]

For those of you that did not make it to Omaha - here's a little taste:

 

 

Great stuff - how many CEO's do this kind of thing?

 

 

that was great. thanks!

 

+1 Awesome!

[CassiusKing1]

For those of you that did not make it to Omaha - here's a little taste:

 

 

Great stuff - how many CEO's do this kind of thing?

 

Dexter shoes, lol!

[Guest longinvestor]

I know their relationship will be different, because he will be a different person. It follows that the intepersonal relationship would change.

Got it.  Great question for Munger especially to answer. Everything that's been working out the window because the new guy has different body parts, has a Harvard MBA and will fire the heads of the subs for missing two quarters in a row. We will be going to the Waldorf-Astoria, NYC for the meeting.

 

[redskin]

I thought the question regarding Mid American and it's returns on capital was a good one, but I wish Warren had elaborated a bit more.  Even though Warren boasts about the huge amount of CapEx being reinvested at MidAmerican operating earnings have increased from $1,846mm in 2009 to $2,102mm for 2013 (A 3.3% annual increase).  Warren seems very excited about the business because they are getting 10%+ returns on capital.  Just wish he could explain why it's not showing up in operating profit.

[xo 1]

I thought the question regarding Mid American and it's returns on capital was a good one, but I wish Warren had elaborated a bit more.  Even though Warren boasts about the huge amount of CapEx being reinvested at MidAmerican operating earnings have increased from $1,846mm in 2009 to $2,102mm for 2013 (A 3.3% annual increase).  Warren seems very excited about the business because they are getting 10%+ returns on capital.  Just wish he could explain why it's not showing up in operating profit.

 

Very well put, Redskin.  It's a question I've been hoping to hear answered.

[kiwing100]

 

First set of notes on BRK 2014 AGM

 

https://www.dropbox.com/s/1tppq56xkbha4lj/Berkshire%20Hathaway%20annual%20meeting%20notes%205-3-2014.pdf