BRK Meeting WSJ Live Blog

[jay21]

Here's the link for those not at the meeting:

 

http://blogs.wsj.com/moneybeat/2013/05/04/live-blog-berkshire-hathaways-annual-meeting/?mod=yahoo_hs

[Grenville]

thanks, enjoying the posts!

[Mephistopheles]

Lol Doug Kass criticizes Buffett for not doing enough due diligence???? And for thinking of the BAC investment in the bathtub?! LOL

 

"He wants to know what Buffett says about his research and process in making investments given there are legendary stories of his past due diligence, including of American Express, where he hired advisers. That contrasts to the $5 billion he put into Bank of America in 2011 which Buffett has admitted he decided in the bathtub would be a good idea and called."

[bmichaud]

Kass is a frickin clown. I'm appalled at the questions he asked after hyping it up like he was going to really go after Buffett.

 

That's what Buffett gets for bringing in someone who sold BRK shares after hours upon hearing about Buffetts illness because he believed the "intrinsic value had changed".

 

What part of Kass is a "credible" investor? What are his returns and how much does he run????

[nkp007]

Kass is a frickin clown. I'm appalled at the questions he asked after hyping it up like he was going to really go after Buffett.

 

That's what Buffett gets for bringing in someone who sold BRK shares after hours upon hearing about Buffetts illness because he believed the "intrinsic value had changed".

 

What part of Kass is a "credible" investor? What are his returns and how much does he run????

 

I'm at the meeting. While most people were too polite to say so, Kass' had some of the worst promotional questions probably ever asked at this meeting. I wish a smarter critic was present and asking questions.

[Guest wellmont]

it's really hard to be a bear on brk. and Smart analysts know this. the reason Doug Kass is there is because of Whitney Tilson, who promoted him to be there directly to Buffett. Buffett had no better options so Kass was selected. Buffett knew that a bear had a real chance of being embarrassed out there. and he probably realizes that Kass is a "professional skeptic" so is kinda open to the possibility of looking silly.

[bmichaud]

And now I see that Kass asked for money.  Hahahahahhahahahahahahabahhahahahhahahah

[Mephistopheles]

lol, asked for money to short with...

 

So the BRK short is asking the CEO of BRK to invest money in his fund which is short BRK? Was he really expecting a yes?

[Palantir]

An actual bear would be more interesting than a strawman.

[Mephistopheles]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

[nkp007]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

 

Not quite an accurate summary.

 

They said they don't make decisions solely based on the numbers. There is no set formula.

[cubsfan]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

 

Yes - that is how the answer came off to me - and I know there is no way that is true if you read his letters and User's Manual.

I was with 3 other guys that got exactly that impression from Warren's comments - and I kinda of set them straight at dinner.

The numbers are really important to him. He probably could have answered the question better.

[jay21]

The question was on screening, not due diligence.  They don't use quantitative screens like PE PB etc.  Instead, Warren just reads every report of every company he thinks he understands (plus some he doesn't understand), tries to find huge moats, and then waits for the right price.

[Guest wellmont]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

 

if you have to dive in and take a close look he's not interested. he wants an investment to be obvious. he understands the numbers by reading the annual report. his accumulated knowledge means there is nothing new under the sun for him. that's why when someone wants to sell him a private business he can make a decision in hours based on his knowledge of the industry, the business, and a quick run through of probably 10 years of data.

[Mephistopheles]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

 

if you have to dive in and take a close look he's not interested. he wants an investment to be obvious. he understands the numbers by reading the annual report. his accumulated knowledge means there is nothing new under the sun for him. that's why when someone wants to sell him a private business he can make a decision in hours based on his knowledge of the industry, the business, and a quick run through of probably 10 years of data.

 

What I meant by diving in was that he reads the annual reports front to end, 10-Qs, conference calls, and competitors reports as well. I agree that the accumulated knowledge from doing this for his entire life can mean that he can now make many decisions without doing much research AT the time of purchase. Nevertheless, I bet he takes a very close look at SEC filings and conference calls of all his major equity positions, whenever they are released. This is how he discovered that Wells Fargo takes a $1.5 billion GAAP amortization charge that should not be counted as a real expense.

[jay21]

This surprised me:

 

 

"That follow-up shareholder asked them about metrics and screening for stocks, and Buffett and Munger both said they don’t really look at numbers."

 

I thought Buffett dives into the financial statements like none other.

 

if you have to dive in and take a close look he's not interested. he wants an investment to be obvious. he understands the numbers by reading the annual report. his accumulated knowledge means there is nothing new under the sun for him. that's why when someone wants to sell him a private business he can make a decision in hours based on his knowledge of the industry, the business, and a quick run through of probably 10 years of data.

 

What I meant by diving in was that he reads the annual reports front to end, 10-Qs, conference calls, and competitors reports as well. I agree that the accumulated knowledge from doing this for his entire life can mean that he can now make many decisions without doing much research AT the time of purchase. Nevertheless, I bet he takes a very close look at SEC filings and conference calls of all his major equity positions, whenever they are released. This is how he discovered that Wells Fargo takes a $1.5 billion GAAP amortization charge that should not be counted as a real expense.

 

From an interview with John Stumpf:

 

—Warren Buffett is your biggest shareholder. (His conglomerate, Berkshire Hathaway, holds an 8 percent stake in Wells, about $14 billion worth, according to financial data provider FactSet.) Tell us about that.

 

He reads everything. One time I talked to him on a Monday, we'd put out our 10-Q (a quarterly financial report) on a Friday, and he said he spent all day Saturday reading it cover to cover. I said, 'Warren, you do that often?' He said, 'Oh, I love Q's.' He was asking me about some esoteric asset — I was blown away.

 

http://bigstory.ap.org/article/wells-fargo-boss-talks-bank-fees-economy-taxes

[Guest FFHfan]

Warren Buffett tries to explain 'colorful Charlie' Munger

 

http://www.cnbc.com/id/100708111