Climateer Investing: UPDATED--Better Than a Transcript: The Berkshire Hathaway Question and Answer Session (BRK.a; BRK.b)

Monday, May 6, 2013

UPDATED--Better Than a Transcript: The Berkshire Hathaway Question and Answer Session (BRK.a; BRK.b)

Update: A reader Emails that we missed the Financial Times' Business Blog liveblog of the Q&A, here it is.
Like the MoneyBeat liveblog the FT reversed the normal blog order (newest on top), this makes the entire post easier to read.
Original post:
Because there is never a transcript of the meeting and because some of the more interesting comments come as responses at the Q&A we have deep admiration for the folks who report from the meeting live.

MoneyBeat did the heavy lifting with a liveblog, one of the toughest tricks in journalism:
Live Blog: Berkshire Hathaway’s Annual Meeting

Welcome to Buffettpalooza!

It is the most exciting day of the year for a Warren Buffett fan. And the joyous crowd that annually celebrates all things Buffett and Berkshire Hathaway BRKB +0.98% is even a bit more joyous this year, what with their shares at all time highs, earnings strong, and their beloved one donning his safari outfit hunting for more big game for them.

MoneyBeat was live in Omaha’s CenturyLink Center where more than 35,000 Buffett lovers crowded for some six hours while Buffett and sidekick Charlie Munger’s dished out investment wisdom and wit.
Read our recap below:

9:17 am

This place has been full for awhile

by David Benoit

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When the doors opened at about 6:30 a.m. here (earlier than expected) the crowd streamed in rapidly with several running to the staccato change machine in Pink Floyd’s “Money.” MoneyBeat hopes that the display of running it saw was indeed the best competition for tomorrow’s Berkshire 5K. Because, well, that wouldn’t scare us too much.

9:19 am

Gangham Style

by David Benoit

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One of the annual traditions is an hour-long movie showcasing Berkshire Hathaway’s vast array of businesses with some Buffett-comedy tossed in, to wild laughter among the crowd. It kicks off the gathering.

This year began with a cartoon version of Dancing with the Stars. Among the losers, Dairy Queen and Geico Gecko. After judges Buffett and Munger dismissed everyone, their cartoon selves won with a dance to Gangham Style. The crowd loved it. The crowd, in fact, loved most of the movie.
Other highlights: Buffett and Carol Loomis appearing on the Daily Show with Jon Stewart. An amusing scene from King of Queens over the debate over “ketchup” vs. “catsup” staring a bottle of Heinz. A skit where Buffett attempted to get a role as the evil terminator, with an appearance by Arnold Schwarzenegger, who instead chose Munger. Jon Bon Jovi.

9:20 am

First some history

by David Benoit

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Also, looking for some history on the meeting and how Buffett has gone from 12 shareholders in Omaha to a 35,000-plus gathering at a convention center, check out our post earlier on the history of this gathering.

9:23 am

The star movie attraction

by David Benoit

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The highlight of this year's film for shareholders, well apart from the advertisements, was a cameo in Breaking Bad, one of Buffett's favorite shows.
Srugmaker Walter White starts making peanut brittle. “Chemically speaking, it’s just a step away from nugget. And nugget is everything.”

Buffett appears to warn them he’s The Candy Man, and he’s their competition. He offers to buy them out. We have a great history of acquisitions with strong management, he tells them.

It's that folksy charm he's got that takes over the drugmakers.

...MUCH, MUCH MORE
The Q&A starts at 9:37

The New York Times DealBook also took on the task but didn't reverse normal blog order (newest on top) as the Journal did so the read is a bit awkward, you have to go to the bottom of the page and scroll up.

Berkshire Hathaway’s 2013 Shareholder Meeting

OMAHA — Even with the addition of a hedge fund manager meant to inject additional skepticism into Berkshire Hathaway‘s annual meeting, Warren E. Buffett managed to escape making big news here on Saturday.

An array of shareholders, reporters and analysts asked the Berkshire chief about a litany of topics, from the state of his company’s insurance operations to the global economy, but Mr. Buffett dodged thornier issues about succession.
Douglas A. Kass, the so-called “credentialed bear,” asked pointed questions about what Berkshire would look like after the 82-year-old Mr. Buffett leaves. But both the Berkshire chief and his longtime business partner, Charles Munger, staunchly defended the company and what they said was a deeply ingrained culture that would endure.

4:53 P.M. And We’re Done

The meeting has ended, with interesting questions but nothing new on important topics like succession. Thanks for following along!

4:32 P.M. The Boring Part of the Meeting

After what was decidedly less than five minutes, Mr. Buffett moves into the scripted part of the meeting: the actual corporate governance portion. Only a fraction of shareholders are actually in their seats, as Mr. Buffett runs through matters like the election of directors.
Generally little happens, other than a smattering of shareholder proposals on issues like climate change.

4:25 P.M. Climate Change and Carbon Trading

While there’s a five-minute break, we’d like to catch up on an interesting exchange earlier in the Q.&A. Andrew asked a shareholder question about climate change, carbon trading and how both affect Berkshire.

Mr. Buffett began his answer with cracks about the warmer weather of recent years — despite the chilly Omaha rain falling outside — and how Mr. Munger knows more about science than he does, “which isn’t saying a lot.” That said, while Mr. Buffett appears to believe that climate change is real, he said that it’s a difficult thing for Berkshire’s insurance operations to account for.

Mr. Munger then added that he doesn’t think much about carbon-trading schemes, calling them impractical. What actually seemed to work: the high taxes that European governments have levied on motor fuel.

“I think they’ve stumbled into the right policy,” he said. “I think the United States should have way higher taxes on motor fuel.”

4:22 P.M. The Buffett Estate Planning Rulebook

...MUCH MORE

Finally the hometown paper (and Berkshire property), the Omaha World-Herald, does a full section, it's rather a big deal:

It's Berkshire Hathaway weekend in Omaha. An estimated 35,000 people are expected to attend the investment company's annual shareholders meeting and to gather for other events, both official and unofficial.