On May 2nd, 2008, I flew over 2,000 miles to spend a day with Warren Buffet and Charley Munger, the Chairmen of the Board of Berkshire Hathaway, in Omaha, Nebraska. I went eagerly when I received the invitation because Warren, the oracle of Omaha, is the richest man in the world and Berkshire Hathaway is the darling of Wall Street, having achieved 20% growth in sales every year since 1955. Yet, he never has declared a dividend, believing firmly in the magic of retained earnings. A single Class-A share of this company is now valued at over $133,000.00.
Warren bought me breakfast, showed me the inner workings of Berkshire Hathaway, and then proceeded to answer all my questions. Now, I wasn’t alone. Warren had invited a lot of his closest friends as well, many of who have invested every dollar they ever made with him.
One person I met was a former professor of agriculture at the University of Nebraska. He had attended many of these meetings with Warren and Charlie. (He shared with me a funny story that occurred at last year’s meeting. Warren, age 77, was asked who would take over Berkshire Hathaway if he died. Warren, without batting an eye, said, “Charlie (age 83) will, of course.”). Another was a farmer from near Mankato, in Minnesota. The other attendees were from all walks of life and from around the world. For example, one attendee was an investment broker from Toronto, several were from Germany, France, London (England), India, Pakistan, China, and the Philippines. They were from all ages, from Grade school to very elderly. They were from all ages, from Grade school to very elderly.
One noticeable group was from an Indian tribe in Oregon, upset because they felt that Warren was contributing to environmental problems that were killing the fish in their rivers and lakes. Warren patiently answered each of our questions. And Charlie was all too eager to add, “I have nothing to add” to many questions.
Why I was invited?
I am nothing special. But tens of thousands actually were, and many actually attended. So without much more adieu, let me explain a little more. Warren annually hosts a lot of people to his annual Berkshire Hathaway shareowners meeting. He buys everyone breakfast, shows a Video on Berkshire Hathaway, then he and Charlie begin answering questions. This year, it was estimated 31,000 attended the gala event. And they answered programs for over 6 hours.
The majority of the event was held at Omaha’s Qwest center. The main room was full to the rafters, so several adjoining rooms were also used, connected by closed circuit television. Other events were held at Borsheim’s Jewelry and Gifts. Another was held at Nebraska Furniture Mart, a sprawling furniture, home furnishing and electronics Megastore.
But I digress. I cannot not do this. The event was SO BIG it still floods my consciousness. Hotels are booked months in advance. I originally was booked miles away in Council Bluff. Fortunately, I was able to find a room closer at a grade B Hotel, The Reddick Plaza, a few days before. (My room was comfortable, clean, but not opulent. If I go again, I’ll book the Hilton right next door to the Qwest Center.)
The day was long. The doors to the Qwest Center opened at 7:00am. Parking lots opened at 6:00am and began filling at that time. By 7:00, a sizable crowd was on board. And when the doors opened, pandemonium broke loose, with everyone rushing to find a seat. By 8:00, the main gallery at Q West Center was full. Adjoining rooms then began to fill and the show began promptly at 8:30.
