. >> TEST. >>> TEST. >> TEST. >>> TEST. >> TEST. >>> TEST. >> TEST. >>> TEST. >> TEST. >>> TEST. TEST. >>> TEST. >> TEST. >>> TEST. >> TEST. >>> TEST. >> TEST. >>> TEST. WELCOME TO THE YAHOO FE EXCLUSIVE LIVE STREAM, THE 2021 BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING. IT'S THE MOST WATCHED BUSINESS EVENT OF THE YEAR AND YOU HAVE A FRONT ROW SEAT. ONE OF THE MOST SUCCESSFUL INVESTORS EVER, BERKSHIRE HATHAWAY CHAIRMAN AND CEO WARREN BUFFETT AND VICE CHAIRMAN CHARLIE MUNGER ARE SET TO GIVE US THEIR UNIQUE TAKE ON AN INCREDIBLE YEAR. >> YOU CAN BET ON AMERICA, BUT YOU'RE GOING TO HAVE TO BE CAREFUL ABOUT HOW YOU BET. >> A COVID CRISIS, A BRUTAL RECESSION, AN UNPRECEDENTED GOVERNMENT STIMULUS FEEDING INTO THIS RAGING BULL MARKET. HEAR WHAT THEY'LL SAY ABOUT THE BITCOIN BOOM AND THE MEME STOCKS LED BY THE REDDIT ARMY THAT BLEW UP THE BALANCE OF POWER ON WALL STREET. A ONCE IN A LIFETIME OPPORTUNITY FOR INVESTORS WILLING TO STOMACH IT ALL. >> IF YOU CAN'T HANDLE IT PSYCHOLOGICALLY. >> WHAT'S NEXT FOR BUFFETT, BERKSHIRE, THE MARKET AND YOUR MONEY, JOIN US FOR YAHOO FINANCE'S EXCLUSIVE COVERAGE OF THE BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING. >> HELLO AND WELCOME TO YAHOO FINANCE'S EXCLUSIVE BROADCAST OF THE 2021 BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING SPONSORED BY YAHOO!. EXCUSE ME, SPONSORED BY MOMO. I'M ANDY SERWER, EDITOR IN CHIEF OF YAHOO! FINANCE COMING AT YOU FROM LOS ANGELES. BEHIND ME IS WARREN BUFFETT AND CHARLIE MUNGER WHO WILL APPEAR IN ONE HOUR SPEAKING TO INVESTORS ABOUT BERKSHIRE'S BUSINESS, THE STOCK MARKET AND THE HEALTH OF THE U.S. ECONOMY. THERE'S SO MUCH TO TALK ABOUT TODAY. THERE WILL BE QUESTIONS ABOUT THE BUSINESS ITSELF, SUCCESSION, THE REUNION OF CHARLIE MUNGER AND WARREN BUFFETT AND SHAREHOLDER PROPOSALS ABOUT CLIMATE CHANGE, DIVERSITY AND MORE. TO DISCUSS A ALL OF THIS, LET ME BRING IN OUR PANEL. MILES, LET ME START WITH YOU. THE COMPANY JUST ANNOUNCED EARNINGS THIS MORNING. BREAK IT DOWN FOR US. >> YEAH, I MEAN, THIS IS AN ANNUAL MEETING. WE DO HAVE FIRST QUARTER RESULTS OUT FROM BERKSHIRE. THE TOP LINE THAT WE WOULD TRADITIONALLY LOOK AT WE SEE HERE ON OUR GRAPHIC, $64.6 BILLION IN REVENUE FROM THE BERKSHIRE HATHAWAY EMPIRE. INVESTMENT GAINS, $5.7 BILLION. I'M SURE WE'LL HEAR FROM WARREN AND CHARLIE A LOT ABOUT THAT INVESTMENT PORTFOLIO, THE ACCOUNTING CHANGE THAT BERKSHIRE AND ALL COMPANIES ARE REQUIRED TO GO THROUGH A COUPLE OF YEARS AGO. OPERATING PROFITS, JUST OVER $7 BILLION IN THE FIRST QUARTER. THE COMPANY PROVIDED A LITTLE BIT OF COLOR THAT I DO WANT TO CALL OUT IN ITS UTILITIES BUSINESS, EARNINGS UP 20%. WE ARE LACKING SOME COVID COMPARABLES AND WE'VE SEEN THAT THROUGHOUT THE LAST COUPLE OF WEEKS. THEN IN ITS MANUFACTURING SERVICE AND RETAILING BUSINESSES THOSE EARNINGS WERE UP JUST UNDER 30%, 28.5% DURING THE FIRST QUARTER. WE HEAR SO OFTEN FROM MAJOR CORPORATIONS ABOUT THE WAY THAT THE PANDEMIC RECOVERY OR WE SHOULD JUST SAY THE RECOVERY OUT OF THE PANDEMIC-INDUCED RECESSION IS HELPING THEIR BUSINESSES. IT SEEMS SO FAR LIKE BERKSHIRE HATHAWAY IS NO EXCEPTION. JULIA LaROCHE, SOMETHING ELSE WE'VE SEEN IN THIS EARNINGS RELEASE AND WE KNOW WE'RE GOING TO HEAR FROM WARREN AND CHARLIE ABOUT IS THE CASH AND THE BUY BACK PROGRAM THAT CONTINUED IN THE FIRST QUARTER. >> THAT'S RIGHT, MYLES. I'M SURE WE'LL GET SOME COLOR ON THOSE SHARE REPURCHASES AND SHARE REPURCHASES HITTING A RECORD IN 2020 AND CONTINUING IN THE FIRST QUARTER. SOMETHING SHAREHOLDERS ALWAYS LOOK TOWARD. ONE OF THE THINGS THAT I WILL CERT CERTAINLY BE FOLLOWING IS THE INCREDIBLE FRIENDS. WHEN YOU TALK TO WARREN BUFFETT, HE TALKS ABOUT HOW CHARLIE MUNGER MADE HIM A, QUOTE, BETTER PERSON. WHILE BUFFETT IS OFTEN VIEWED AS THE PUBLIC FACE OF BERKSHIRE HATHAWAY, THE COMPANY AS WE KNOW IT TODAY WAS ACTUALLY BUILT IN THE BLUEPRINT OF CHARLIE MUNGER, WHO IS ALSO -- YOU KNOW, DOES DABBLE IN ARCHITECTURE. I THINK THIS WILL BE A MOMENT WHERE THERE WILL BE A LOT MORE ATTENTION ON MUNGER. HE'S 97 YEARS OLD. A POLY MATH INVESTOR WITH KNOWLEDGE, HUMOR, WITT. ALWAYS SOME COLORFUL LANGUAGE AT THE BERKSHIRE MEETING. IT IS BEING HELD IN LOS ANGELES THIS YEAR. BECAUSE OF THE PANDEMIC BUFFETT WAS IN THE CHI HELP ARENA AND WITHOUT HIS LONG-TIME COLLEAGUE. WE HAD A GREAT COLUMN FROM ANDY SERWER AND AKIKO, I KNOW YOU'LL BE MONITORING THAT CASH PILE THAT SEEMS TO BE GROWING. I KNOW IT GREW IN THE QUARTER. IF WE'LL GET ANY COLOR FROM THE INVESTORS ON WHAT THEY'LL DO WITH THAT. >> YEAH, NO QUESTION ABOUT THAT. MYLES JUST ELUDED TO IT. WE'RE TALKING ABOUT $155.4 BILLION IN CASH IN THE END OF THE FIRST QUARTER. WE'VE HEARD WARREN BUFFETT TAUT THIS ACQUISITION. LAST YEAR AT THE MEETING HE SAID HE HASN'T DONE ANYTHING YET. HE HASN'T FOUND ANYTHING THAT IS THAT ATTRACTIVE. I'D BE CURIOUS TO SEE IF HE'S GOT HIS EYE ON SOMETHING NOW, IF HIS THOUGHTS HAVE CHANGED ON THAT FRONT. IT WILL BE ALSO INTERESTING TO SEE HOW HE'S VIEWING THE MARKET CONDITIONS RIGHT NOW. REMEMBER A YEAR AGO HE MADE SOME HEADLINES WHEN HE EXITED THOSE BIG POSITIONS IN AIRLINES, UNITED, DELTA, SOUTHWEST, AMERICAN. SINCE THEN WE HAVE SEEN SOME OF THOSE STOCKS RALLY TRIPLE DIGITS SINCE THE PANDEMIC LOW. IS HE MAYBE RECONSIDERING SOME OF THOSE POSITIONS? SOMETHING TO THINK ABOUT. AND THEN FINALLY SOMETHING THAT ANDY JUST ALLUDED TO IN THE OPENING IS HOW HE'S LOOKING AT WHAT WE'VE HEARD OVER AND OVER AS THE FROTH IN THE MARKET. BITCOIN CERTAINLY I IMAGINE WILL COME UP AS A POINT OF DISCUSSION HERE. WE'VE HEARD WARREN BUFFETT DISMISS THEM, THE CRYPTOCURRENCY AS HAVING NO VALUE BEFORE, CALLING IT RAT POISON SQUARED. CHARLIE MUNGER CERTAINLY NO FAN SAYING PURSUIT OF THE UNEATABLE BY THE UNSPEAKABLE. WE'RE SITTING HERE TALKING ABOUT BITCOIN RALLYING, WHAT, 90% SO FAR THIS YEAR. IT'S REQUES'S GOING TO BE INTER SEE WHAT HE HAS TO SAY. WE HAVE CAR REN WALLACE, MORNINGSTAR DIRECTOR OF INVESTOR EDUCATION. KAREN, YOU'VE HEARD US PREVIEW OF WHAT COULD COME UP POTENTIALLY AS QUESTIONS IN THIS SHAREHOLDER MEETING. WHAT SPECIFICALLY ARE YOU GOING TO BE LOOKING FOR? >> A LOT OF THE THINGS YOU'RE MENTIONING HAVE BEEN ON MY MIND AS WELL. THE FEAR OF MISSING OUT. SPECULATION. YOU KNOW, BUFFETT AND MUNGER DON'T REALLY LIKE TO SPECULATE WITH THEIR SHAREHOLDERS MONEY. THE THING ABOUT WARREN BUFFETT, HE DIDN'T STRIKE OIL OR DEVELOP SOFTWARE AND INHERIT A BIG PILE OF MONEY, HE BUILT HIS FORTUNE BY PICKING SOLID BUSINESSES THAT GENERATE A LOT OF CASH AND HE BELIEVES WILL CONTINUE TO DO WELL. YOU KNOW, HE TAKES THE CASH FROM THAT. HE REINVESTS. HE HOLDS ON FOR THE LONG TERM. HE LOOKS FOR NEW OPPORTUNITIES. HE WANTS BUSINESSES THAT HE CAN UNDERSTAND, WHICH IS A BIG PART OF IT, THEN YOU CAN MORE ACCURATELY VALUE A BUSINESS IF YOU UNDERSTAND WHAT IT DOES. HE WANTS BUSINESSES THAT HAVE GOOD LONG-TERM PROSPECTS. FEAR OF MISSING OUT IS HIS THING. HE WANTS BUSINESSES RUN BY HONEST AND COMPETENT PEOPLE BECAUSE THIS IS A LONG-TERM RELATIONSHIP AND HE WANTS ALL OF THAT AT AN ATTRACTIVE PRICE WHICH AS YOU'RE BOTH ALLUDING TO, THERE'S NOT TOO MANY OPPORTUNITIES OUT THERE. YOU KNOW, HIGH QUALITY BUSINESSES LIKE THIS DON'T GO ON SALE VERY OFTEN BUT BUFFETT IS A PATIENT -- HE'S A PATIENT INVESTOR AND HE CAN WAIT FOR EXACTLY THE RIGHT PITCH. TO INCREASE HIS SUCCESS RATE HE DOES LOOK FOR COMPANIES THAT ARE SELLING FOR LESS THAN HIS ESTIMATE OF THEIR FAIR VALUE WHICH GIVES HIM SOME LEEWAY IN CASE HIS ESTIMATE ISN'T EXACTLY RIGHT. BUT ANOTHER REALLY IMPORTANT PART OF HIS STRATEGY IS LOOKING FOR COMPANIES THAT HAVE COMPETITIVE ADVANTAGES OR WHAT HE REFERS TO AS ECONOMIC MOATS, MOATS AROUND THE CASTLE PROTECTING THE CASTLE AND THE BUSINESS. >> KAREN, LET ME ASK YOU ABOUT REPORTS THAT INDICATE THAT SOME SHAREHOLDERS MIGHT BE A LITTLE DISGRUNTLED ABOUT THE PERFORMANCE OF THE BERKSHIRE STOCK AND THE DIVERSITY AND INCLUSION, CLIMATE CHANGE, DIRECTORS AND COMPENSATION. WHAT DO YOU MAKE OF THAT? >> WELL, YOU KNOW, HE HAS TRIED TO KIND OF PUT THAT INTO THE HANDS OF THE COMPANY MANAGEMENT BEFORE. IT'LL BE INTERESTING TO SEE HOW THAT QUESTION IS ANSWERED BECAUSE I THINK A LOT MORE PRESSURE, OBVIOUSLY I HAVEN'T BEEN TO THE SHAREHOLDER MEETING PERSONALLY SINCE 2019, BUT I REMEMBER A LOT MORE QUESTIONS COMING UP ABOUT THAT. IT'LL BE INTERESTING TO SEE HOW THAT'S ANSWERED BECAUSE I REALLY DO KIND OF THINK THAT HIS VIEW IS THAT, YOU KNOW, THE COMPANY MANAGERS KIND OF ALLOCATE THEIR OWN CAPITAL AND THEY MAKE THEIR DECISIONS FOR THEMSELVES, BUT IT IS BECOMING SOMETHING MORE. >> WHY DO YOU THINK THIS IS SUCH A PARTICULARLY IMPORTANT MEETING FOR THEM TO PAY ATTENTION TO? >> WELL, YOU KNOW, THE CORNER STONE OF OUR EQUITY VALUATION AT MORNINGSTAR, WE BORROWED A LOT OF BUFFETT'S WISDOM. YOU KNOW, WE LOOK FOR COMPANIES THAT -- YOU KNOW, SO WHEN A COMPANY'S KIND OF -- WHEN ITS RETURNS ON CAPITAL ARE EXCEEDING COST ON CAPITAL FOR A LONG TIME, THEY'RE DOING SOMETHING RIGHT, RIGHT? THE BUSINESSES OFTEN HAVE SOME SORT OF COMPETITIVE ADVANTAGE, SUSTAINABLE, OR THAT'S ENDURING, AND BUFFETT REFERS TO THAT AS AN ECONOMIC MOAT. I THINK SEARCHING FOR THESE MOATS IS MORE IMPORTANT THAN EVER. ESPECIALLY IF YOU LOOK AT THE KINDS OF BUSINESS THAT BUFFETT -- THE KINDS OF BUSINESSES THAT BUFFETT IS INTERESTED IN INVESTING IN, THEY'RE CASH POWERHOUSES, THINGS LIKE INSURANCE, BANKING, CONSUMER PRODUCTS, PHARMACEUTICALS. YOU KNOW, THESE ARE THINGS THAT KIND OF HOLD UP WELL, YOU KNOW, AND THERE'S A LOT OF OPPORTUNITY FOR HIM TO REINVEST IN THE BUSINESS, TO BUY BACK SHARES, TO, YOU KNOW, INVEST IN THE STOCK AND BOND MARKETS AS WELL, EVEN IN THE ABSENCE OF, YOU KNOW, A BIG, ATTRACTIVE ACQUISITION THAT COULD MOVE THE NEEDLE. YOU KNOW, IT'S HARD FOR BUFFETT TO FIND -- HARD FOR BERKSHIRE TO FIND SOMETHING LARGE ENOUGH FOR IT TO MOVE THE NEEDLE IN TERMS OF OUR EARNINGS, YOU KNOW, IN TERMS OF MAKING A DIFFERENCE ON THE OVERALL EARNINGS OF THE COMPANY. >> KAREN, I'M CURIOUS ALSO ABOUT THE STRUCTURE OF BERKSHIRE. AS A CONGLOMERATE, IT'S OUT MOATED. NEW INVESTORS DON'T REALIZE THE HISTORY OF THE CONGLOMERATE STRUCTURE. BUFFETT WROTE ABOUT THAT IN THIS YEAR'S ANNUAL LETTER. I'M WONDERING IF YOU WERE THINKING ABOUT BERKSHIRE AS THE LAST OF ITS KIND OFR DO SOME OF THE BIG COMPANIES TRY TO EMULATE THAT STRUCTURE AS THEY MATURE IN THEIR LIFE CYCLE? >> YOU KNOW, IT'S INTERESTING BECAUSE IT'S A COLLECTION -- IT'S SORT OF A COLLECTION OF MOATY BUSINESSES. OUR ANALYST GREG WARREN TALKS ABOUT INSURANCE ISN'T THE KIND OF BUSINESS THAT HAS A MOAT, IT'S A COMMODITY BUSINESS. THEY OWN A LOT OF REALLY GOOD, HIGH QUALITY INSURANCE NAMES. THEY DO ALSO INVEST IN A LOT OF BUSINESSES THAT ARE INTANGIBLE ASSETS, ONE OF THE MOAT SOURCES. THEY OWN THINGS LIKE J&J MERCK, BRISTOL-MYERS. APPLE AND COKE WITH THEIR STRONG BRAND LOYALTY. THOSE ARE ALSO EXAMPLES OF INTANGIBLE ASSETS. THEY ALSO HAVE THINGS LIKE RAILROADS, PIPE LINES THAT BENEFIT FROM EFFICIENT SCALE. THERE MIGHT ONLY BE ONE PROVIDER IN A CERTAIN AREA THAT IS PROVIDING THE SERVICE SO, YOU KNOW, THE NICHE MARKET IS EFFECTIVELY SERVED BY A FEW COMPANIES. THERE'S ALSO A NETWORK, EFFECT. AMERICAN EXPRESS HAS A CLOSED LOOP OF MERCHANTS, CARDHOLDERS. A LOT OF PEOPLE USING THE SERVICE BECOMES MORE VALUABLE TO PEOPLE AS MORE PEOPLE USE IT. SWITCHING COSTS. LIKE WHEN IT WOULD BECOME MORE EXPENSIVE TO STOP USING A PRODUCT OR IT'S A BIG PAIN, A HASSLE, SOME OF THE BIG BANKS THAT BERKSHIRE HAS HAS THAT AND THEY HAVE COST ADVANTAGES AND THEY CAN UNDERCUT THEIR COMPETITORS AND STILL EARN A PROFIT. SO, YOU KNOW, BERKSHIRE HAS A COLLECTION OF THESE BUSINESSES AND IT'S A DIVERSIFIED BUSINESS. IT HELPS IT GOING IN A LOT OF DIFFERENT MARKETS. IT'S A UNIQUE SORT OF COMPANY IN THAT WAY. YOU KNOW, KIND OF BUILT UP THAT WAY AS A STOCK PICKER'S CONGLOMERATE, YOU KNOW? >> ALL RIGHT. GREAT STUFF THERE, CAR REN WALLACE, MORNINGSTAR. DIRECTOR OF INVESTOR EDUCATION. THANK YOU VERY MUCH. COMING UP, HOW TO LIVE RICHER, WISER, HAPPIER. WHO DOESN'T WANT TO DO THAT? WE'LL TALK TO AUTHOR WILLIAM GREENE AND WHAT HE LEARNED FROM THE LIFE AND LEGACY OF CHARLIE MUNGER. BACK IN TWO MINUTES. >>> YAHOO FINANCE'S LIVE COVERAGE IS BROUGHT TO YOU BY MOOMOO. A ONE STOP SMART TRADING PLATFORM OF STOCKS, OPTIONS, ETFs AND MORE. >>> YAHOO! FINANCE'S LIVE COVERAGE OF THE BERKSHIRE HATHAWAY ANNUAL SHAREHOLDER MEETING IS BROUGHT TO YOU BY MOOMOO. ONE STOP TRADING PLATFORM OF STOCKS, OPTIONS, AND MORE. >> WELCOME BACK TO YAHOO! FINANCE. WE ARE NOW JUST 45 MINUTES AWAY FROM THE START OF THE BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING IN LOS ANGELES THIS YEAR. JOINING US NOW IS WILLIAM GREEN, AUTHOR OF A NEW BOOK "RICHER, WISER, AND HAPPIER HOW THE WORLD'S INVESTORS WIN IN THE MARKETS AND LIFE." ONE OF THE INVESTORS YOU DID SPEAK TO FOR THIS BOOK, CHARLIE MUNGER. I WONDER IF WE START WITH THE BIG TAKE AWAY FROM YOU. WHAT YOU TOOK AWAY FROM YOUR CONVERSATION WITH HIM IN TERMS OF THE KEY TO BUILDING WEALTH. >> TO ME, ONE OF THE MOST FASCINATING THINGS ABOUT CHARLIE MUNGER, YOU HAVE ONE OF THE GREATEST GUYS ALIVE. HE CAN SEE THE ESSENCE OF WHAT ANY SUBJECT IS ABOUT BEFORE YOU'VE EVEN FINISHED THE SENTENCE AND YET WHAT CHARLIE DOES THAT I THINK IS EXTRAORDINARILY HELPFUL FOR ANY OF US, BOTH IN INVESTING AND LIFE, IS HE FOCUSES ON REDUCING STANDARD STUPIDITIES. IF YOU REALLY WANT TO SUCCEED, BOTH AS AN INVESTOR AND IN LIFE, YOU WANT TO FOCUS ON BEING N NON-IDIOTIC. HE COLLECTS ABSURD, DUMB, FOOLISH THINGS PEOPLE DO AND THEN HE ASKS HIMSELF, WELL, WHAT CAUSED THOSE THINGS? WHAT CAUSED THIS DISASTER? THEN HE SAYS, LET ME FOCUS ON NOT DOING THAT. IF YOU THINK ABOUT THIS AS A TAKE AWAY FOR ANY INVESTOR, THINK ABOUT THE WAYS MOST OF US MESS UP AS INVESTORS. WE'RE IMPATIENT. WE TRY TO TIME THE MARKET. WE SPECULATE ON THINGS WE DON'T UNDERSTAND. WE TRADE IN AND OUT. WE'RE MUCH TOO EMOTIONAL. WE GET CAUGHT UP IN FACTS. HERE YOU HAVE CHARLIE AND WARREN BASICALLY JUST AVOIDING ALL OF THOSE STANDARD STUPIDITIES. IT'S ACTUALLY EASIER TO AVOID BEING STUPID THAN TO BE SMART. I THOUGHT THAT WAS A WONDERFUL PARADOX THAT YOU HAVE THE SMARTEST GIA LIVE JUST TRYING TO BE SYSTEMATICALLY LESS STUPID. >> WILLIAM, I WANT TO FOLLOW-UP ON THAT POINT. WHEN CHARLIE AND WARREN TALK, IT SOUNDS SO EASY AND YOU LISTEN TO IT AND YOU GO, YUP, I'M GOING TO DO THAT, I'M GOING TO DO THAT, I'M GOING TO DO THAT AND THEN YOU TRY TO DO IT, YOU CAN'T DO IT. WHY IS THERE THIS GAP? >> CHARLIE ALWAYS SAYS ABOUT INVESTING, IT'S SIMPLE, NOT EASY. ONE OF THE THINGS YOU HAVE TO UNDERSTAND, YOU HAVE TO START BY SAYING, WELL, THERE ARE THESE PRINCIPLES BE THAT I NEED TO UNDERSTAND ABOUT HOW INVESTING WORKS. LIKE, FOR EXAMPLE, YOU WANT TO BE PATIENT. YOU WANT TO BUY ASSETS WHEN THEY'RE WORTH CONSIDERABLY MORE THAN THE MARKET THINKS THEY'RE WORTH. SO THERE'S A MARGIN OF SAFETY THERE. THEN THINK ABOUT THE DIFFICULTY OF ACTUALLY BUYING THINGS THAT ARE UNPOPULAR, THAT EVERYONE ELSE THINKS ARE UNDER VALUED -- THAT EVERYONE ELSE THINKS ARE ACTUALLY CHEAP BECAUSE THEY DESERVE TO BE CHEAP. I THINK THERE'S A TREMENDOUS PSYCHOLOGICAL PRESSURE. WHEN I LOOK AT CHARLIE AND WARREN, I THINK ONE OF THEIR GREATEST ADVANTAGES IS JUST THAT THEY'RE ENTIRELY UNEMOTIONAL. THEY'RE NOT REALLY SUCKED UP BY THE EMOTIONS OF THE CROWD. WHEN I WENT TO INTERVIEW CHARLIE I SAID TO HIM DURING THE MARKET CRASH IN 2009 WHEN YOU WERE BUYING THINGS LIKE WELLS FARGO AT THE BOTTOM TICK OF THE CRASH IN MARCH 2009, DID YOU FEEL THESE EMOTIONS, LIKE FEAR, ANXIETY, WORRY? HE SAID, NO, I JUST DIDN'T FEEL THEM AT ALL. I SAID, DOES WARREN FEEL IT? HE SAID, NO, HE'S WIRED EXACTLY THE SAME WAY. SO I THINK THERE'S A TREMENDOUS TEMPERAMENTAL ADVANTAGE, WHICH IS BECAUSE THEY DON'T FEEL THEM AND EVERYONE IS SAYING, I CAN'T BELIEVE THEY HAVE $145 BILLION IN CASH AND THEY'RE NOT DOING ANYTHING, WHY DON'T THEY DO SOMETHING? THEY'RE JUST SUBLIMELY INDIFFERENT TO THE CRIES FROM THE CROWD. WARREN JUST SAID, WE'RE NOT PAID FOR ACTIVITY, WE'RE PAID FOR BEING RIGHT. >> AND YET TO ANDY'S POINT, EASIER SAID THAN DONE, TO BREAK AWAY FROM ALL THE NOISE THAT'S OUT THERE. THE PRINCIPLE -- THE GUIDING PRINCIPLES WHEN YOU THINK ABOUT WARREN BUFFETT AND CHARLIE MUNGER, EXTREME PATIENCE AND SELECTIVENESS. HOW DO INVESTORS AT HOME APPLY THAT THOUGH TO THEIR PORTFOLIO? >> CHARLIE HAS THIS BEAUTIFUL IMAGE THAT I TAKE VERY SERIOUSLY. HE SAYS, YOU SHOULD BE LIKE A SPEAR FISHERMAN. YOU SHOULD BE STANDING BY THE SIDE OF THE STREAM MOST OF THE TIME DOING ABSOLUTELY NOTHING. ONCE IN A WHILE A FAT, JUICY SALMON COMES BY AND YOU SPEAR IT. THEN IT MAY BE FOR THE NEXT SIX MONTHS NOTHING COMES ALONG. ONE OF THE GREAT TAKE AWAYS IS IT DOESN'T ALWAYS HELP YOU. IF PRICE IS BEING PRICED IN A WAY THAT IS NOT PARTICULARLY ATTRACTIVE WHICH IS GENERALLY SPEAKING THE CASE AT THE MOMENT, YOU WANT TO TREAD WITH EXTREME CAUTION. THEN AT THE MOMENTS WHERE SUDDENLY THE BIPARTISAN MARKET GOES THE OTHER DIRECTION, IS GOING NUTS, IS PRESENTING YOU WITH LOTS OF FAT, JUICY SALMONS, THAT'S WHEN YOU WANT TO STRIKE WITH WHAT CHARLIE CALLS GUMPTION. SET YOURSELF UP COUNTER CULTURALLY. WHILE EVERYONE ELSE IS HYPERACTIVE SAYING I MUST DO SOMETHING, BITCOIN IS SURGING, TESLA IS SURGING, I MUST ACT. HERE ARE CHARLIE AND WARREN ACTING CALMLY. SPEAR FISHERMEN, HAPPY TO WAIT BY THE STREAM, FISH AND TWIDDLE THEIR THUMBS. THEY'VE SET THEIR LINES UP IN A WAY AS HEROICALLY INACTIVE. THEY'RE PLAYING BRIDGE, READING FOR HOURS A DAY, THEY'RE FISHING, GOLFING, CHATTING WITH FRIENDS AND JUST READING TONS OF ANNUAL REPORTS AND TONS OF BIOGRAPHIES. SO I THINK YOU WANT TO ACTUALLY TRY TO STRUCTURE A LIFE IN A WAY THAT ENABLES YOU TO BE MUCH MORE PATIENT SO THAT YOU'RE NOT GETTING SUCKED INTO THE HYPER ACTIVITY OF THE MARKET. >> I LIKE THAT IMAGE THAT YOU JUST PUT OUT THERE, WILLIAM, TWO FISHERMEN SPEAR FISHING ON THE SIDE OF THE RIVER. BUT YOU TALK ABOUT THE TWO OF THEM TOGETHER, HOW IMPORTANT IS THAT PARTNERSHIP, DO YOU THINK? JULIA LaROCHE IS TALKING ABOUT THEM BEING REUNITED THIS YEAR. HOW IMPORTANT IS THAT TO ACHIEVE INVESTING RESULTS, TO HAVE SOMEONE TO BOUNCE SOMETHING OFF OF LIKE THAT. CHARLIE TALKS ABOUT HAPPENING OUT WITH THE EMINENT DEAD. ONE THAT HE HANGS OUT WITH IS DARWIN. WHAT HE LEARNED FROM DARWIN IS DARWIN WAS SEEKING DISCONFIRMING EVIDENCE. HE WASN'T TRYING TO SUPPORT HIS RELIGIOUS VIEWS WITH HIS INVESTIGATIONS INTO EVOLUTION. HE WAS TRYING TO DESTROY HIS OWN MOST CHERISHED BELIEFS IN A SENSE. I THINK PART OF WHAT THIS RELATIONSHIP BETWEEN CHARLIE AND WARREN ENABLES THEM TO DO IS TO TEST EACH OTHER'S BELIEFS. WARREN FAMOUSLY HAS DESCRIBED CHARLIE AS THE A BOMB MIN NABL NO MAN. TO HAVE THIS MECHANISM, STRUCTURE WHERE SOMEBODY IS CHALLENGING YOUR BELIEFS AND IS SMART ENOUGH TO BE ABLE TO CHALLENGE YOU, I THINK THAT'S HUGELY POWERFUL. WE'RE NOT GOING TO HAVE THAT OPPORTUNITY. WE CAN BE CONSTANTLY SEARCHING FOR DISCONFIRMING INFORMATION. IF YOU'RE POLITICALLY LIBERAL YOU READ "THE WALL STREET JOURNAL" OP ED PAGE. THIS IS SOMETHING THAT CHARLIE VERY CONSCIOUSLY DOES. I THINK IT'S INTERESTING THAT YOU HAVE WARREN AS A DEMOCRAT, CHARLIE AS A REPUBLICAN, THEY'VE HAD THIS KIND OF WONDERFUL RELATIONSHIP WHERE THEY'RE ACTUALLY SEEKING OUT VIEWS THAT ARE DIFFERENT FROM THEIR OWN AND THEN AT THE SAME TIME I THINK TREATING EACH OTHER WITH TREMENDOUS DECENCY AND KINDNESS. I THINK THAT'S SOMETHING WE'RE ALL EXCITED ABOUT. IT'S IN A SENSE THE REUNION OF THIS ODD COUPLE. ON THE OCCASIONS THAT I'VE BEEN TO OMAHA FOR THE BERKSHIRE MEETING, ONE OF THE MOST JOYOUS AND MEMORABLE THINGS, IT'S ALMOST LIKE A COMEDY ACT. IT'S AS IF YOU'RE WATCHING WALTER MATTOW AND JACK LEMON WISE CRACKING TOGETHER. THERE'S SOMETHING ABOUT THAT PARTNERSHIP AND THEN THE FACT THEY TREAT THEM. IT'S ONE OF THE REASONS WE'VE ALL BEEN COMING BACK YEAR AFTER YEAR AND WHY WE'RE ALL HAPPY TO SEE CHARLIE BACK THIS YEAR AFTER BEING ABSENT LAST YEAR. >> WILLIAM GREENE, AUTHOR OF "RICHER, WEISER, HAPPIER." THANK YOU FOR COMING ON. I SHOULD MENTION WARREN BUFFETT HAS JUST COME INTO THE ROOM. THEY'RE DOING SOME TESTS HERE. WE'RE HALF AN HOUR AWAY FROM THE BEGINNING OF THE ANNUAL MEETING. IN THE MEANTIME, I WANT TO TALK ABOUT CHOCOLATE. IT IS THE ULTIMATE COMFORT FOOD. SALES OF CHOCOLATE WAY, WAY UP. CANDY SALES HIT A RECORD $44 BILLION LAST YEAR. THAT'S GREAT FOR C'S CANDIES AND THE CEO PAT EGAN JOINS US NEXT HERE. >>> I'M PLEASED TO BRING TO YOU ALL THIS CONVERSATION WITH ONE OF OUR VERY FAVORITE BOOTHS AT THE BERKSHIRE HATHAWAY ANNUAL MEETING. THAT IS SEE'S CANDY. PAT, SO GREAT TO HAVE YOU JOIN US. 100th ANNIVERSARY. I WISH WE COULD BE IN PERSON. >> I WISH I COULD BE THERE TOO, JULIA. THANKS FOR THE OPPORTUNITY. WE'RE LOOKING FORWARD TO NEXT YEAR COMING BACK. OMAHA IS ALWAYS A BIG DEAL FOR US. WE'RE GOING TO MISS IT. HOPEFULLY WE'RE BACK THERE NEXT YEAR. >> CERTAINLY HOPE WE'RE BACK NEXT YEAR. WE'RE SO USED TO SEEING TONS OF CANDY AT THAT BOOTH IN OMAHA. I THINK A LOT OF FOLKS ARE INTERESTED, PAT. HOW HAS BUSINESS BEEN FOR YOU ALL IN THE LAST YEAR? >> WELL, I LIKE TO SAY THE LAST YEAR'S BEEN THE LONGEST DECADE OF MY LIFE. WE'VE BEEN THROUGH A LOT. LAST YEAR IT'S A TALE OF A COUPLE OF DIFFERENT QUARTERS. THE FIRST QUARTER WAS TREMENDOUS. WE STARTED OFF REALLY HOT AT THE BEGINNING OF 2020 AND WE ENDED PRETTY GOOD. THE SECOND AND THIRD QUARTERS WE ESSENTIALLY IN THE MIDDLE OF MARCH WHEN THIS FIRST REALLY HIT, WE SHUT DOWN ALL OF OUR STORES IN THE SPAN OF FIVE DAYS. SO ABOUT 245 STORES WE CLOSED IN A MATTER OF DAYS AND THEN ABOUT A WEEK AND A HALF LATER WE CLOSED OUR eCOMMERCE FULFILLMENT CENTER DOWN IN SOUTHERN CALIFORNIA. FOR A PERIOD OF TIME THERE WE ESSENTIALLY COMPLETELY STOPPED AND THE REASON FOR IT WAS WE OPERATE AND ARE HEADQUARTERED IN THE BAY AREA. THAT WAS ONE OF THE FIRST ORDERS ISSUED NATIONALLY. AND SO WE RESPECTED AND STOPPED AND THEN WE JUST -- WE WENT THROUGH ALL OF THE STATES THAT WERE SUCCESSIVELY THAT WEEK SHUTTING DOWN. SO FROM THAT POINT FORWARD WHAT WE DID WAS WE JUST SAID WE'RE NOT GOING TO REOPEN STORES OR REOPEN OUR PLANTS UNTIL WE CAN CREATE A SAFE OPERATING ENVIRONMENT FOR ALL OF OUR EMPLOYEES. THAT TOOK A WHILE AND BY THE TIME WE RESTORED AT THE END OF THE SUMMER WE SAW CUSTOMERS COMING BACK IN, BUT FOR THAT PERIOD OF TIME, IT WAS PRETTY ROUGH. >> HOW ABOUT RIGHT NOW, HOW ARE THINGS FOR YOU ALL? HOW ARE YOUR STORE REOPENINGS? I SUPPOSE YOU'RE PROBABLY DOING A LOT OF BUSINESS ONLINE. I KNOW AROUND VALENTINE'S DAY I WAS LOOKING TO ORDER CANDIES FOR SOME OF THE SPECIAL FOLKS IN MY LIFE. HOW ARE THINGS NOW? >> THANK YOU FOR YOUR BUSINESS, JULIE. IT'S GREAT. WE'RE FULLY BACK, I BELIEVE. WE'VE HAD OUR BEST JANUARY EVER, OUR BEST FEBRUARY EVER. WE JUST COMPLETED OUR BEST FIRST QUARTER EVER. AS YOU MENTIONED eCOMMERCE, WE HAD A GREAT GROWTH LAST YEAR. WE GREW 70% JUST IN LOOKING AT TOTAL PACKAGES SHIPPED. WHAT YOU MIGHT EXPECT WOULD BE THAT WHEN THE STORES REOPENED, THAT THAT WOULD TRAIL OFF A LITTLE BIT. IT HASN'T. OUR FIRST QUARTER WE WERE UP 160% OVER THE FIRST QUARTER OF LAST YEAR. SO WHAT WE'VE SEEN IS THE TRAFFIC COMING BACK INTO STORES. IT'S BEEN GRADUAL, BUT WE'RE ALMOST BACK TO 100%. OUR eCOMMERCE, WHICH HAS MORE THAN DOUBLED, HAS ACTUALLY STAYED AT THAT LEVEL. WE'RE JUST FINE WITH IT NOT COMING BACK TO EARTH. IT CREATES DIFFERENT OPERATIONAL CHALLENGES BUT WE'VE DEFINITELY EXPANDED OUR CUSTOMER BASE. >> ONE OF THE THINGS THAT'S VERY INTERESTING ABOUT SEE'S, THE CUSTOMER SERVICE IN THE STORES. PAT, YOU COME FROM AN ENERGY BACKGROUND. THE LAST TIME WE TALKED TO YOU WAS AT THE ANNUAL MEETING IN 2019. YOU WERE A FEW DAYS ON THE JOB, A COUPLE OF YEARS ON THE JOB. COMING INTO RETAIL, WHAT HAS BEEN THE BIGGEST TAKE AWAYS FOR YOU, SOME OF YOUR BIGGEST LEARNINGS IN YOUR ROLE? >> YEAH. A COUPLE OF THINGS. AS YOU MENTIONED, OUR FOCUS ON CUSTOMER SERVICE. I FEEL SO FORTUNATE, I PINCH MYSELF THAT OUR PRODUCTS ARE TREMENDOUS AND CUSTOMER SERVICE IS AMAZING. WE WANT TO MAKE SURE THAT WHEN CUSTOMERS COME INTO OUR STORE, THAT THEY LEAVE WITH A SMILE AND THAT THEY'RE HAPPIER THAN WHEN THEY STARTED. I LIKE TO SAY, WE SELL JOY. MY BACKGROUND IN ENERGY IS A LITTLE DIFFERENT. NO DOUBT ABOUT IT. BUT I LEARNED SO MANY GOOD LESSONS THERE THAT I HOPE HAVE SERVED US WELL HERE, AND THAT IS THAT IT'S NOT EASY TO MAKE AN ENERGY CUSTOMER HAPPY ALL THE TIME. WHEN YOU'RE INTERACTING WITH THEM, IT'S USUALLY ABOUT A BILL OR YOU'VE HAD AN OUTAGE. WE TRY TO MAKE BOTH OF THOSE THINGS AS MINIMAL AS POSSIBLE, BUT I REALLY WORK VERY HARD WITH A GREAT TEAM THERE TO FOCUS ON WHAT DOES THE CUSTOMER NEED? I WILL SAY THAT IS THE BERKSHIRE WAY. THAT'S PART OF WHAT I'M PROUD ABOUT AND I CAN SEE THE TRANSITION FROM ENERGY INTO CANDY, THE COMMON THREAD IS THAT WE TAKE CARE OF OUR CUSTOMERS AND SEE'S HAS DONE IT FOR A CENTURY AND DONE IT TREMENDOUSLY WELL. >> WARREN BUFFETT'S MANAGEMENT STYLE, THE HANDS OFF MANAGEMENT STYLE FOR THE DIFFERENT PORTFOLIO COMPANIES. I IMAGINE WHEN WE THINK ABOUT BUFFETT, HE OFTEN TALKS ABOUT WANTING TO BE REMEMBERED AS A TEACHER, WHAT'S BEEN THE MOST IMPORTANT LESSON YOU'VE LEARNED FROM WARREN? >> INTEGRITY. I REGULARLY REVIEW HIS QUOTES. HE'S VERY -- YOU'RE RIGHT, HE'S HANDS OFF, BUT HE'S VERY EFFICIENT AND VERY EFFECTIVE IN CONVEYING THE MESSAGE, WHICH IS DO THE RIGHT THING. TAKE CARE OF THE CUSTOMER. TAKE CARE OF YOUR EMPLOYEES AND THE RESULTS WILL FOLLOW. AND I HAD THE GREAT FORTUNE OF WORKING WITH GREG ABEL IN THE ENERGY BUSINESS. HE IS VERY MUCH A DEVOTEE OF THAT. JUST LIVING UP TO THAT AND MAKING SURE THAT WE FOLLOW THROUGH ON THOSE PRINCIPLES IS FIRST AND FOREMOST. AND, YOU KNOW, AS A TEACHER, HE LEADS BY EXAMPLE ALL THE TIME. HE'S VERY FOCUSED ON GETTING THE RIGHT OUTCOMES CERTAINLY FOR OUR CUSTOMERS. I THINK HE'S A GREAT CITIZEN OF THE COUNTRY AND THE WORLD AND A GREAT LEADER IN THAT REGARD. KIND OF BOILING IT DOWN TO THE SIMPLE WHAT ARE THE RESULTS AND HOW ARE YOU GETTING THERE WITHOUT GETTING TOO CUTE ABOUT THINGS AND MAKING SURE YOU'RE FOCUSED ON THE RIGHT THINGS. >> WELL, PAT EGAN, CEO OF SEE'S CANDIES, THANK YOU FOR JOINING US AHEAD OF THE SHAREHOLDERS MEETING. HOPEFULLY WE SEE YOU IN OMAHA IN 2022. THANK YOU AGAIN. >> I LOOK FORWARD TO IT. THANK YOU VERY MUCH. >>> WE HEAR THAT IN ADDITION TO THAT ICONIC PEANUT BRITTLE, WARREN AND CHARLIE WILL HAVE SEE'S NEWEST PRODUCT CHOCOLATE COVERED COFFEE BEANS. >>> UP NEXT, RON OLSON JOINS ANDY SERWER WITH HIS PREVIEW OF THE BIG ANNUAL MEETING. STAY WITH US. >>> HELLO. WELCOME BACK TO THE BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING 2021. I'M ANDY SERWER. I'M HERE WITH RON OLSEN. RON, GREAT TO SEE YOU. >> ANDY, GREAT TO SEE YOU. GREAT TO SEE YOU IN LOS ANGELES. >> THANK YOU, RON. >> I -- MY RECOLLECTION IS WE USUALLY ENCOUNTER EACH OTHER ON AN AIRPLANE HEADED TO OMAHA AT THIS TIME OF YEAR. >> THAT'S RIGHT. THINGS ARE VERY DIFFERENT. LET'S JUMP OFF AT THIS POINT. WHAT ARE YOU LOOKING FOR THIS YEAR THAT'S DIFFERENT FROM PRIOR YEARS. WE HAVE A DIFFERENT GEOGRAPHY. >> LET ME TELL YOU WHAT I'M LOOKING FOR THAT'S THE SAME, THE CHARLIE AND WARREN SHOW. TO ME, IT'S IRREPLACEABLE AND IT IS THE DELIGHT AND MOST MEANINGFUL PART OF THE MEETING. IN ADDITION, YOU KNOW, IT'S NICE TO HAVE AN EXCUSE TO BE IN OMAHA -- I MEAN, BE IN LOS ANGELES. I ALSO LOOK FORWARD TO RETURNING TO OMAHA NEXT YEAR. HAVING ALL THE PEOPLE AROUND AND THE FUN THAT WE DO, THESE VIRTUAL THINGS ARE A GOOD SUBSTITUTE BUT NOT AS MUCH FUN. >> RIGHT. SO THIS YEAR IS A BIT OF A HYBRID. NO SHAREHOLDERS, BUT WE DO HAVE -- >> WELL, A FEW OF US ARE SHAREHOLDERS. >> THAT'S RIGHT. THE DIRECTORS ARE SHAREHOLDERS. BASICALLY THIS ROOM RIGHT HERE IS GOING TO HAVE THE DIRECTORS IN IT. YOU CAN SEE THE STAGE, AS IT WERE, IS UP THERE WHERE WARREN AND CHARLIE AND I CAN SEE GREG ABEL IS ALREADY UP THERE. >> GREG IS THERE, AJIT WILL BE THERE AND WARREN AND CHARLIE. THEY'VE GOT A BANK OF CAMERAS IN FRONT OF THEM AND THERE'S A PLACE WHERE BECKY QUICK'S GOING TO BE SITTING OFF SCREEN PROBABLY BUT, YOU KNOW, IT'S -- IT'S I THINK WORKED OUT VERY, VERY WELL. THE COMPANY JUST ANNOUNCED EARNINGS THIS MORNING. WHAT DO YOU MAKE OF THOSE AND WHERE IS THE COMPANY GOING? >> UP. THE BIG COMPANIES THAT WARREN FEATURES IN HIS LETTER EACH YEAR, YOU KNOW, ENERGY COMPANY, INSURANCE BUSINESSES AND SO ON, I MEAN, THEY'RE DOING SENSATIONAL, JUST SENSATIONAL. WE HAVE EVERY REASON TO BELIEVE THAT THAT CLIMB IS GOING TO CONTINUE. BY AND LARGE INSURANCE THROUGHOUT THE PANDEMIC PERIOD HAS DONE VERY, VERY WELL. AND SO DID THE ENERGY BUSINESS AND BNSF, THEY HELD UP VERY WELL. SOME OF THE RETAIL BUSINESSES, YOU KNOW, THEY WERE VERY SERIOUSLY HURT DURING THE PANDEMIC. AND THOSE THAT HAD A LOT INVESTED IN THE MALL ACCESS, I THINK PARTICULARLY SO. AND SO THOSE ARE CLIMBING BUT NOT -- YOU KNOW, THEY'RE NOT OUT OF THE HOLE. IT'S GOING TO BE A LONG HAUL, I THINK, FOR SOME OF THE BUSINESSES, BUT BY AND LARGE WE'RE -- I'M VERY, VERY PLEASED WITH WHAT WE'RE DOING. >> WHAT IS IT LIKE BEING A DIRECTOR OF BERKSHIRE HATHAWAY? HOW OFTEN DO YOU TALK? HOW OFTEN DOES WARREN BUFFETT TALK TO YOU GUYS? WHAT IS THE COMMUNICATION LIKE? WHAT'S IT LIKE BEHIND THE SCENES? >> WELL, WE HAVE BASICALLY TWO BIG IN-PERSON MEETINGS A YEAR AND THEN A NUMBER OF OTHER DIRECTOR MEETINGS DURING THE COURSE OF THE YEAR OFTEN DEPENDING UPON PARTICULAR CIRCUMSTANCES, AN ACQUISITION OR SOMETHING LIKE THAT. IN ADDITION TO THAT, I THINK YOU KNOW, WARREN'S A COMMUNICATOR. CHARLIE'S A COMMUNICATOR AND, OF COURSE, WITH CHARLIE, HE'S IN LOS ANGELES AND HE AND I TALK OFTEN. WARREN AND I TEND TO TALK ON SUNDAYS, AND HE DOES THAT WITH OTHER DIRECTORS THROUGHOUT THE YEAR. HE'S ON THE PHONE WITH THE MANAGERS ALL THE TIME. I MEAN -- SO THERE'S A LOT OF COMMUNICATION IN THIS COMPANY. COMMUNICATION UP, COMMUNICATION DOWN. A LOT OF TRANSPARENCY. >> SUNDAYS, HUH? IT SOUNDS LIKE YOU'RE WORKING SEVEN DAYS A WEEK HERE? >> ANY TIME YOU'RE TALKING TO WARREN YOU'RE HAVING FUN. >> RIGHT. WE TALKED ABOUT AJIT JAIN AND GREG ABEL UP THERE ON THE STAGE. HAVE TO ASK YOU ABOUT SUCCESSION. PEOPLE ALWAYS ASK YOU ABOUT THAT, BUT IS THERE ANYTHING THAT WE NEED TO KNOW IN THAT DEPARTMENT? >> WELL, YOU HAVEN'T MISSED THAT SUCCESSION QUESTION IN AS I REMEMBER ABOUT THE LAST FOUR YEARS WITH ME. YOU KNOW, PEOPLE TALK ABOUT SUCCESSION PLANNING, AND I THINK YOU COULD LOOK AT THE FACT THAT WE HAVE TWO NEW VICE CHAIR MEN IN THE LAST FEW YEARS WITH EXPANDED RESPONSIBILITIES. AJIT THROUGHOUT THE INSURANCE BUSINESSES AND GREG THROUGHOUT THE NON-INSURANCE BUSINESSES. YOU COULD LOOK ON THAT AS SUCCESSION PLANNING. YOU COULD LOOK ON THE -- OUR TWO GREAT INVESTORS THAT HAVE BEEN BROUGHT IN, TED AND TODD, AS SUCCESSION PLANNING. ME? I LIKE TO DESCRIBE IT AS MANAGEMENT EXTENSION. THERE'S NO QUESTION THAT THE ACTIVITIES OF GREG, AJIT, TWO Ts HAVE GIVEN NEW -- IN MY OPINION, NEW OPPORTUNITIES FOR WARREN AND CHARLIE TO CONTINUE DOING WHAT THEY DO SO WELL AND, YOU KNOW, GREG DOES A LOT MORE TRAVELING THAN WARREN DOES THESE DAYS TO THE RESPECTIVE BUSINESSES. NOW IF YOU ASK WARREN ANY QUESTION ABOUT ANY OF THE BUSINESSES HE'S GOT IT ON THE TIP OF HIS TONGUE, READING ALL THE TIME, BUT IN TERMS OF SHOWING UP FOR THE CELEBRATION OF A TENTH ANNIVERSARY OF THE CEO. FWR GREG IS THERE -- WE LOST A GREAT ONE, PAUL ANDREWS FOR TTI, JUST IN THE LAST FEW WEEKS. I KNOW WARREN WAS AT THAT FUNERAL WITH GREG. IT IS -- IN MY MIND, WHY WOULD WE WANT TO THROW AWAY THE LIFETIME OF EXPERIENCE THESE TWO GUYS HAVE HAD AND BRING TO BEAR ON EVERY IMPORTANT JUDGMENT THIS COMPANY MAKES? SO THERE'S NO REPLACEMENT TIMETABLE. EVERY MEETING WE DIRECTORS TALK ABOUT SUCCESSION. IF SOMETHING HAPPENED TOMORROW, WE KNOW EXACTLY WHAT WE'RE GOING TO DO, BUT THAT'S ABOUT AS FAR AS I GO WITH THIS QUESTION. AND I WOULD SAY THIS, YOU KNOW, LOOK AT HOW -- IN ADDITION TO THE TWO VICE CHAIRS, THE WAY THIS COMPANY OPERATES, IT'S CREATED MANAGEMENT THAT HAVE HAD THE EXPERIENCE EVER BEING THEIR OWN BUSINESS BOSSES. IT'S A GREAT WAY TO GROW TALENT AS WELL AS GROW THE COMPANY. >> QUICK LAST QUESTION, RON. ANYTHING WE SHOULD KNOW ABOUT THE SHAREHOLDER PROPOSALS THAT ARE BEING PUT FORTH TODAY? >> I DON'T THINK ANYTHING THAT ISN'T IN OUR PROXY. YOU KNOW, I'M CONFIDENT THAT OUR SHAREHOLDERS ARE GOING TO BACK OUR RECOMMENDATIONS BUT, YOU KNOW, THERE'S -- ALL OF IT IS BEING PRESENTED, YOU TAKE CLIMATE CHANGE. WE TAKE THAT SERIOUSLY. AND YOU LOOK AT WHAT THE UTILITIES ARE DOING, YOU LOOK AT WHAT BANF ARE DOING, WE'VE GOT LOTS OF EXAMPLES OUT THERE OF US BECOMING MORE EFFICIENT, ADDING I THINK TO THE STRENGTH OF OUR COMPANIES. AND IT'S -- WE'RE -- I THINK THEY WILL BE DEFEATED BUT THAT'S FOR US TO FIND OUT LATER TODAY. >> RON OLSON, BERKSHIRE HATHAWAY DIRECTOR. THANK YOU SO MUCH FOR YOUR TIME. >> THANK YOU, ANDY. >>> YAHOO! FINANCE'S COVERAGE OF THE ANNUAL SHAREHOLDERS MEETING IS BROUGHT TO YOU BY MOOMOO. A TRADING PLATFORM OF STOCKS, OPTIONS, ETFs AND MORE. >>> WELCOME BACK TO YAHOO! FINANCE'S EXCLUSIVE COVERAGE OF THE ANNUAL MEETING. WE'RE ABOUT TEN MINUTES OUT WHEN WE EXPECT WARREN BUFFETT AND CHARLIE MUNGER TO TAKE QUESTIONS FOR THE NEXT FOUR OR FIVE HOURS OR SO. IN THE INTERIM, IN OUR BUILDUP TO THE COVERAGE, WE'RE TALKING TO FOLKS ABOUT WHAT THEY WOULD EXPECT, WHAT THEY'D LIKE TO HEAR AND WHAT THEY'VE LEARNED FROM BUFFETT AND MUNGER. WE HAVE THE FOUNDER OF BROWN GIRLS DO. THANK YOU FOR JUMPING ON THIS MORNING. I'D LOVE TO START WITH WHAT YOU'VE LEARNED FROM THESE COUPLE OF GUYS TALK, NOW THE FIFTH YEAR YAHOO! FINANCE HAS STREAMED THE LIVE COVERAGE AND I THINK OPENED UP, YOU KNOW, THE WORLD OF WISDOM WE'VE HEARD ABOUT FOR SO MANY YEARS TO FOLKS AROUND THE GLOBE. >> ABSOLUTELY. THANK YOU FOR HAVING ME. THERE IS SO MUCH THAT I'VE LEARNED FROM WARREN BUFFETT AS WELL AS CHARLIE MUNGER. FOR ONE, THEY'VE TALKED OVER THE YEARS TO NOT INVEST WITH YOU'RE MOTION. IT'S SO EASY FOR US TO DO THAT. THERE ARE THOUSANDS OF STOCKS THAT ARE ON THE MARKET. WE CAN DEFINITELY FALL INTO WHAT IS TRENDY. WHAT ARE THE BUZZ WORDS. HOWEVER, WHEN IT COMES TO BEING A SUCCESSFUL INVESTOR, WE HAVE TO MAKE SURE THAT WE ARE PULLING OURSELVES AWAY FROM THE CROWD AND INVESTING IN WHAT WE KNOW AND WHAT WE HAVE RESEARCHED. WHAT I'VE LEARNED FROM WARREN OVER THE YEARS IS TO MAKE SURE THAT I DO MY RESEARCH, AND IF I CANNOT UNDERSTAND A BUSINESS, THEN I MOST DEFINITELY WOULD NOT INVEST IN IT. AND WITH THAT BEING SAID, LOOKING AT STOCKS THAT I BELIEVE ARE UNDER PRICED BY THE MARKET AND THE ONES THAT I FEEL AS THOUGH THE PRICES WILL EVENTUALLY RISE SIGNIFICANTLY OVER TIME. >> BAHIYAH, TELL US ABOUT BROWN GIRLS DO INVEST. WHAT IS THAT ORGANIZATION? >> OH, MY GOODNESS, THANK YOU FOR ASKING. BROWN GIRLS DO INVEST IS A NONPROFIT ORGANIZATION, AND WE TEACH AFRICAN-AMERICAN WOMEN HOW TO INVEST IN THE STOCK MARKET, HOW TO INVEST IN REAL ESTATE AS WELL AS ACQUIRE MULTIPLE STREAMS OF INCOME. WE BASICALLY FOLLOW WHAT WARREN BUFFETT TEACHES ABOUT, WHICH IS VALUE INVESTING. WE MAKE SURE THAT WHEN WE ARE INVESTING, IT'S FOR A LONG-TERM STRATEGY AS OPPOSED TO SOMETHING SHORT TERM. THERE'S SO MANY PEOPLE WHO WANT TO MAKE SURE THAT THEY'RE EARNING MONEY AS QUICKLY AS POSSIBLE, HOWEVER, WE WANT TO MAKE SURE THAT PEOPLE WHO UNDERSTAND THEIR RISK TOLERANCE BY ASKING A FEW QUESTIONS, DETERMINING THEIR AGE, AS WELL AS WHEN THEY'RE GOING TO RETIRE AND TO UNDERSTAND ONE OF THE BEST STRATEGIES IS TO HOLD ON AS WELL AS ADDRESS SOME OF THE INFLATION THAT IS GOING ON THAT IS NOT GOING TO BE CONDUCIVE TO OUR BUYING POWER. WHEN YOU THINK ABOUT WHAT WARREN BUFFETT DOES WITH HIS STRATEGY AS FAR AS BUY AND HOLD AND LOOK AT OVER THE PAST 14 YEARS HOW STOCKS IN THE UNITED STATES HAVE EARNED 9.2%, YOU CANNOT GO WRONG. SO WITH BROWN GIRLS DO INVEST, WE MAKE SURE THAT WE EDUCATE ON HOW TO INVEST IN THE STOCK MARKET. >> YOU KNOW, BAHIYAH, SOMETHING I KNOW WE'RE GOING TO HEAR FROM WARREN AND CHARLIE ABOUT TODAY, WHAT'S BEEN HAPPENING WITH CRYPTO, THE MEME STOCKS. THE ABILITY FOR PEOPLE TO INVEST ON THINGS LIKE ROBINHOOD. IT'S DRIVEN INTEREST IN STOCKS AND I'M SURE YOU'VE SEEN THAT IN YOUR WORK AS WELL. I'M CURIOUS HOW YOU'VE GONE ABOUT EDUCATING PEOPLE TRYING TO GET IN AND OUT ON A DAY'S BASIS, A WEEK OR A MONTH'S BASIS, THAT WILL LIKELY, LIKELY ERODE YOUR GAINS OVER TIME AND HOW THAT CONVERSATION HAS MAYBE CHANGED OVER THE LAST YEAR WHEN INTEREST IN THE STOCKS AND THE MARKET HAS GONE UP. >> THAT'S RIGHT. DON'T ENGAGE IN THE BUZZ WORD. NOT TO DO WHAT YOU FEEL AS THOUGH YOUR NEIGHBOR IS DOING AND TO MAKE SURE YOU ARE INVESTING OFF OF YOUR INVESTMENT NEEDS. ALTHOUGH WE HAVE THE CRYPTOCURRENCY AND OTHER THINGS TO INVEST IN OVER THE YEARS, TO MAKE SURE WE TELL INVESTORS TO DO WHAT BUFFETT ENCOURAGES US TO DO, WHICH IS TO RESEARCH THE COMPANY. IF YOU ARE TRYING TO ENGAGE IN BUZZ WORDS OR STRTRENDY THINGS T ARE OCCURRING, YOU DO NOT HAVE TIME. IN ADDITION TO RESEARCHING THE COMPANY, YOU HAVE TO MAKE SURE WHATEVER YOU ARE INVESTING IN HAS A STRONG LEADERSHIP TEAM AS WELL AS ARE THEY PROFITABLE. LOOK AT THEIR PERFORMANCE AND THEIR RETURN ON INVESTMENT AND TRY TO AVOID OVER VALUED STOCKS. AGAIN, THE THING WITH INVESTING IS TO MAKE SURE THAT YOU ARE INVESTING LONG TERM, NOT TRADING. AND THAT'S SOMETHING THAT WE TALK ABOUT WHEN IT COMES TO CRYPTOCURRENCY AS WELL AS ANY OTHER OPPORTUNITIES THAT ARE IN THE STOCK MARKET. >> ALL RIGHT. WE'RE GOING TO HAVE TO LEAVE IT THERE. BAYIHAY, THANK YOU SO MUCH FOR JOINING US. >> WELCOME. >>> EMPIRE RESEARCH FOUNDER AND CEO WHITNEY TILLSON JOINS US ON A DISCUSSION ON THE U.S. ECONOMIC RECOVERY AND HOW BERKSHIRE COULD STAND TO BENEFIT COMING UP NEXT. >>> WELCOME BACK. WARREN BUFFETT AND CHARLIE MUNGER ARE SET TO TAKE THEIR SEATS AT ANY MINUTE NOW AS WE AWAIT THE START OF THE 2021 BERKSHIRE HATHAWAY ANNUAL SHAREHOLDERS MEETING. JOINING US IS EMPIRE FINANCIAL MANAGER AND CEO WHITNEY TILLSON. THANKS FOR JOINING US. WHAT ARE YOU LOOKING FOR AT THIS PARTICULAR MEETING THIS YEAR? >> WELL, I DON'T THINK THERE'S ANYTHING EARTH SHATTERING GOING ON RIGHT NOW. BERKSHIRE'S BUSINESS IS FIRING ON ALL CYLINDERS. IT'S GOTTEN A TERRIFIC TAILWIND AND ONE OF THE THINGS THAT'S ADDING ROCKET FUEL TO BERKSHIRE RIGHT NOW IS JUST IN THE LAST THREE QUARTERS A REAL RAMP UP OF SHARING PURCHASES. THE SHARE COUNT IS DOWN 5.5% YEAR OVER YEAR. BERKSHIRE HAS JOINED THE RANKS OF THE BIGGEST BLUE CHIP COMPANIES DOING THE BIGGEST SHARE BUYBACKS AND THAT'S TURNING MID SINGLE DIGIT TO HIGH SINGLE DIGIT SORT OF EMBEDDED GROWTH WITH THE BIG ECONOMIC BOOM YOU'RE SEEING OPERATING EARNINGS GROWING 20% YEAR OVER YEAR AND THEN YOU THROW IN A 5% REDUCTION IN SHARE COUNT AND EARNINGS PER SHARE ARE GOING UP AND IT'S GOING UP EVEN FASTER. >> HEY, WHITNEY. I'M GLAD YOU BROUGHT UP SHARE REPURCHASES. THAT IS EXACTLY WHAT I WANTED TO TALK TO YOU ABOUT. WE DID SPEAK ABOUT THAT BACK WHEN YOU PUT OUT THE ANNUAL LETTER AS YOU MENTIONED. ANOTHER 6.6 BILLION. LET'S TALK ABOUT YOUR OWN VIEW OF THE STOCK AND THE STOCK PRICE. IT SOUNDS TO ME LIKE YOU SEE FURTHER UP SIDE HERE. WHAT ARE YOU KIND OF EXPECTING TO BE THE CATALYST GOING FORWARD? >> YEAH. WELL, LOOK, THE STOCK HIT AN ALL-TIME HIGH ON THURSDAY, PULLED BACK A LITTLE ON FRIDAY AND IT'S RESTING BUT NEVERTHELESS I JUST RECALCULATED BASED ON THE Q1 NUMBERS THIS MORNING USING JUST A VERY SIMPLE VALUATION METHODOLOGY. I'VE USED IT FOR 20 YEARS. IT'S PROVED TO BE VERY ACCURATE. IT'S WHAT BUFFETT AND MUNGER USE. PUT AN 11 MULTIPLE ON THE PRETAX EARNINGS AND MY LATEST CALCULATION IS IS THAT BERKSHIRE'S A SHARES INTRINSIC VALUE IS $473,000 PER A SHARE. THAT'S $316 PER B SHARE. THE STOCK CLOSED ON FRIDAY AT 412,000 PER A SHARE MEANING THE STOCK TODAY IS TRADING AT A 13% DISCOUNT TO INTRINSIC VALUE. GIVEN THE STOCK IS UP ALMOST 20% THIS YEAR, INTRINSIC VALUE IS UP 10%, BUT I CHALLENGE YOU IN A STOCK MARKET AT ALL-TIME HIGHS TODAY, CHALLENGE YOU TO SHOW ME ANY BIG CAP BLUE CHIP THAT IS AS SAFE TRADING AT 13% TO INTRINSIC VALUE. I LOVE THE STOCK AND I'M DELIGHTED BUFFETT IS BUYING BACK. WHEN YOU ARE BUYING BACK BELOW INTRINSIC VALUE, THAT INCREASES INTRINSIC VALUE FOR REMAINING SHAREHOLDERS. >> WE'RE TALKING ABOUT $145 BILLION RIGHT NOW. ASIDE FROM THE BUYBACKS, HOW DO YOU THINK THEY SHOULD BE PUTTING THE CASH TO WORK? >> WELL, IT'S TOUGH BECAUSE IT'S A TOUGH ENVIRONMENT OUT THERE. THERE ARE ONLY TWO WAYS -- >> WHITNEY, I'M SORRY TO INTERRUPT YOU. WE HAVE TO GO OVER TO WARREN BUFFETT. THE 2021 BERKSHIRE HATHAWAY ANNUAL MEETING HAS GONE. >> WE DID IT ON SHORT NOTICE LAST YEAR. WE HAD MORE WARNING THIS TIME AND SO WE CAME TO LOS ANGELES AND THE REASON WE'RE DOING IT FROM HERE IS BECAUSE OF THE MAN ON MY LEFT, NOT BECAUSE HE ASKED FOR IT BUT BECAUSE ALL OF US WANTED TO DO IT WITH CHARLIE HERE IN LOS ANGELES. SO I'LL INTRODUCE THE THREE VICE CHAIR MEN OF BERKSHIRE IN A MINUTE. I'LL SHOW YOU THE FIRST QUARTER EARNINGS. WON'T TAKE MUCH TIME ON THAT. I'LL HAVE ONE OR TWO VERY SHORT LESSONS FOR PERHAPS THE NEW INVESTORS WHO ARE NOT NECESSARILY IN BERKSHIRE HATHAWAY BUT PEOPLE WHO HAVE ENTERED THE STOCK MARKET IN THE PAST YEAR, I THINK THERE HAVE BEEN A RECORD NUMBER THAT HAVE ENTERED THE STOCK MARKET. I'LL HAVE A COUPLE OF EXAMPLES FOR THEM AND THEN WE'LL SWING INTO A Q&A LED BY BECKY QUICK, WHO'S LOOKED AT THOUSANDS OF QUESTIONS THAT HAVE BEEN SUBMITTED BUT MORE CAN BE SUBMITTED DURING THIS MEETING AND WE WILL PUT UP ON CAMERA FROM TIME TO TIME THE WAY YOU CAN COMMUNICATE DIRECTLY WITH HER IF YOU WANT TO SEND QUESTIONS IN DURING THE MEETING. SHE GOT FLOODED WITH THEM LAST TIME. SHE MIRACULOUSLY KEEPS SORTING THEM OUT. SO FEEL FREE TO SEND IN A QUESTION AND WE WILL HAVE A QUESTION PERIOD FOR ABOUT 3 1/2 HOURS. THEN WE WILL FINALLY HAVE THE ANNUAL MEETING, WHICH WON'T TAKE LONG, AT THE END. SO WITH THAT, I WOULD LIKE TO FIRST INTRODUCE THE THREE VICE CHAIR MEN OF BERKSHIRE HATHAWAY. I'LL TELL YOU JUST A LITTLE BIT ABOUT THEM AND THEN I'LL HAVE A MILD SURPRISE FOR YOU AT THE END PERHAPS. ON MY LEFT IS CHARLIE MUNGER, AND I MET CHARLIE 62 YEARS AGO. HE WAS PRACTICING LAW IN LOS ANGELES. HE WAS BUILDING A HOUSE AT THAT TIME A FEW MILES FROM HERE, AND 62 YEARS LATER HE'S STILL LIVING IN THE SAME HOUSE. KIND OF INTERESTING BECAUSE I WAS BUYING A HOUSE JUST A FEW MONTHS BEFORE 62 YEARS AGO AND I'M STILL LIVING IN THE SAME HOUSE. SO YOU'VE GOT A COUPLE OF FAIRLY PECULIAR GUYS JUST TO START WITH IN TERMS OF THEIR LOVE AFFAIR WITH THEIR HOMES. AND CHARLIE -- CHARLIE AND I HIT IT OFF IMMEDIATELY. I WOULD SAY HE'S -- HE'S PROBABLY THE VICE CHAIRMAN IN CHARGE OF CULTURE, AMONG OTHER THINGS, BUT IF I EVER WANT TO GET QUESTIONS ABOUT WHERE TRUE NORTH IS, I TALK TO CHARLIE AND HE HAS BEEN AN ENORMOUS HELP. HE'S DONE IT WITH A LOT FEWER HOURS AND A LOT LESS TALKING AND EVERYTHING THAT I'VE HAD, BUT HE'S CONTRIBUTED IN AN INCREDIBLE WAY TO BERKSHIRE. SO CHARLIE'S BEEN OUT HERE IN LOS ANGELES FOR 60 PLUS YEARS. ON MY RIGHT, YOUR LEFT, I HAVE THE VICE CHAIRMAN IN CHARGE OF EVERYTHING EXCEPT INSURANCE AND INVESTMENTS, GREG ABEL. GREG WAS BORN AND RAISED IN EDMONTON, ALBERTA. CANADIAN. PLAYS HOCKEY. 80-YEAR-OLD, PLAYS HOCKEY. AND HE CAME TO THE UNITED STATES SOMETIME AFTER HE GRADUATED FROM COLLEGE IN CANADA AND HE IS IN CHARGE OF A BUSINESS WHICH HAS WELL OVER 150 BILLION IN SALES AND EMPLOYS 200 -- MORE THAN 250,000, PROBABLY 275,000 PEOPLE. AND DOES A MUCH BETTER JOB AT DOING THAT THAN I WAS DOING PREVIOUSLY. AND ON MY FAR LEFT, YOUR RIGHT, WE HAVE AJIT JAIN. AJIT WAS BORN AND RAISED IN INDIA AND GRADUATED FROM COLLEGE THERE. I MET AJIT ON A SATURDAY IN 1986, AND I'VE BEEN IN THE INSURANCE BUSINESS -- BERKSHIRE HAD BEEN IN THE INSURANCE BUSINESS FOR A WHILE. I WAS STUMBLING AROUND IN A NUMBER OF WAYS. AJIT CAME INTO THE OFFICE. SATURDAY I WAS OPENING THE MAIL. I SAID, YOU KNOW, ABOUT INSURANCE AND HE SAID, NOTHING. I SAID, WELL, NOBODY'S PERFECT. LET'S TALK ABOUT IT SOME. AND BY THE END OF THE MORNING I KNEW I HAD SOMEBODY THAT WAS GOING TO BUILD A GREAT INSURANCE BUSINESS, AND STARTING FROM THAT POINT THIS IMPROBABLE LITTLE COMPANY IN OMAHA BECAME THE LARGEST PROPERTY CASUALTY COMPANY IN THE WORLD IN TERMS OF NETWORK. IT WRITES RISKS THAT -- IT WRITES RISKS OCCASIONALLY AND IN A 24-HOUR PERIOD THAT OTHER COMPANIES SIMPLY COULDN'T TAKE ON THEMSELVES. THEY'D HAVE TO ASSEMBLE OTHER PEOPLE AND IT WOULD TAKE THEM A LONG TIME TO COME TO A DECISION. THAT WAS VARIOUS AT OTHER TIMES IN THE PAST. NOT SO IMPORTANT NOW. HE'S BUILT AN INCREDIBLE -- THE WORLD'S LEADING PROPERTY AND CASUALTY INSURANCE COMPANY. SO HERE WE HAVE CHARLIE FROM L.A., 60 SOME YEARS. WE'VE GOT GREG FROM CANADA. WE'VE GOT AJIT FROM INDIA AND THE ONE THING IN COMMON THAT THESE THREE FELLOWS HAVE ASIDE F BERKSHIRE AND DOING A GREAT JOB, THE AT ONE PERIOD OF TIME OR ANOTHER THEY LIVED WITHIN A MILE OF ME IN OMAHA, NEBRASKA. AND CHARLIE IN 1934 MOVED ABOUT 100 YARDS AWAY FROM WHERE I NOW LIVED AND WENT TO HIGH SCHOOL, EVENTUALLY WENT INTO THE SERVICE AND KNOWS THE NEIGHBORHOOD AS WELL AS I DO. WENT TO THE SAME GRADE SCHOOL MY KIDS WENT TO AND SO ON. GREG SPENT SIGNIFICANT TIME IN LIVING IN OMAHA. LIVED ABOUT FIVE OR SIX BLOCKS FROM ME AND NOW LIVES IN DES MOINES. AND AJIT WAS IN OMAHA, ABOUT A MILE AWAY, FOR A COUPLE OF YEARS. SO WE STARTED IN VERY DIFFERENT PLACES AND SORT OF CAME TOGETHER AND NOW GO OUR SEPARATE WAYS, BUT IT'S ALL WORKED VERY WELL. I WOULD -- AND YOU'LL HEAR FROM THEM. I URGE YOU TO SEND QUESTIONS IF YOU'RE SAYING YOU COULD DIRECT THEM TO ME OR YOU COULD DIRECT THEM TO ANY ONE OF THE OTHER THREE AND IT WILL BE A BIG RELIEF TO ME IF YOU DIRECT A FAIR NUMBER TO THE OTHER PEOPLE. SO WE THIS MORNING, AS WE ALWAYS DO, WE ALWAYS DO IT ON A S SATURDAY, WE PUBLISHED OUR 10Q WHICH GAVE THE QUARTERLY EARNINGS THAT'S UP ON OUR WEBSITE, BERKSHIREHATHAWAY.COM. AND IT'S VERY INTERESTING. WE PUT THESE OUT ON SATURDAY MORNING, THAT'S NOT BECAUSE THE MEDIA LIKES US TO DO IT THAT WAY, THAT'S NOT BECAUSE THE ANALYSTS LIKE TO DO IT THAT WAY, BUT WE WANT TO GIVE YOU THE MAXIMUM TIME TO DYE IGEST AN AW LOT OF INFORMATION THAT'S IN THAT 10Q. IT CAN'T BE SUMMARIZED IN A PERFECT WAY. WE'LL GIVE YOU SOME SUMMARY FIGURES, BUT THEY'RE REALLY A STUDENT OF THE PLACE. MOST OF OUR INVESTORS SIMPLY HAVE FAITH IN THESE OTHER THREE FELLOWS TO DO A GOOD JOB. AND IT'S NOT A MISPLACED FAITH, BUT IF YOU REALLY ENJOY GOING INTO THE DETAILS AND YOU WANT TO UNDERSTAND THE NUTS AND BOLTS OF THE VARIOUS OPERATIONS, YOU SHOULD READ THAT 10Q. IT WILL TAKE YOU -- IT MAY TAKE YOU A COUPLE OF HOURS. I MEAN, IT'S NOT A SMALL INVESTMENT OF TIME, BUT IT'S GOT A LOT OF INFORMATION ABOUT ALL OF OUR VARIOUS BUSINESSES AND FOR THOSE OF YOU WHO ARE BUSINESS STUDENTS OF A SORT, I RECOMMEND YOU GO TO IT. THE SUMMARY FIGURES YOU SEE HERE, WHICH ARE THE ONES WE PUT IN OUR PRESS RELEASE, SHOW KIND OF AN INTERESTING PAIR OF NUMBERS. DOWN THERE AT THE BOTTOM. YOU KNOW, WE HAVE -- LAST YEAR -- WHEN YOU SEE THOSE BRACKETS AROUND NUMBERS, YOU'VE GOT TO START WORRYING. AND FIRST QUARTER WE ACTUALLY SHOWED A LOSS OF ALMOST $50 BILLION. I NEVER THOUGHT I WOULD SEE A FIGURE LIKE THAT. THINKING BACK, I WAS TRYING TO REMEMBER WHETHER I HAD GONE ON VACATION DURING THAT QUARTER AND TURNED THINGS OVER TO THE OTHER GUYS OR WHAT? BUT I CHECKED THE CALENDAR AND THAT WAS ME. THAT FIGURE THIS YEAR IS A POSITIVE FIGURE UP 11.7 BILLION, AND NEITHER FIGURE IS VERY MEANINGFUL IN ITSELF. THE ACCOUNTING STANDARDS BOARD A FEW YEARS AGO FOR MANY, MANY, MANY, MANY YEARS UNREALIZED GAINS OR LOSSES OF A COMPANY LIKE BERKSHIRE WHERE THEY MADE ADJUSTMENTS TO THE KNELT WORTH OF BERKSHIRE BUT THEY DID NOT RUN THROUGH EARNINGS. AND A FEW YEARS AGO THE RULE WAS CHANGED SO THAT EVERY TIME STOCKS GO UP OR DOWN, IT GOES THROUGH OUR EARNINGS ACCOUNT. SO IN THE FIRST QUARTER OF LAST YEAR WHEN STOCKS WENT DOWN A LOT, WE HAD A HUGE SUM OF UNREALIZED -- WELL, IT WAS A REDUCTION OF UNREALIZED GAINS AND WHEN YOU START SAYING THINGS LIKE THAT YOU START LOSING PEOPLE BUT THAT ITEM, MILD PLUS THIS YEAR. IF WE REPORTED EARNINGS DAILY YOU WOULD SEE EARNINGS ONE DAY OF 3 BILLION, NEXT DAY MINUS 2 BILLION. IT'S AN ACCOUNTING TREATMENT THAT WE DON'T THINK IS PARTICULARLY APPROPRIATE BUT IT'S REQUIRED AND WE'VE EXPLAINED VERY CAREFULLY AND I TRY TO WRITE IN MY LETTER AND EXPLAIN I DON'T THINK THAT'S THE WAY TO LOOK AT BERKSHIRE. WE THINK OVER TIME WE WILL HAVE INVESTMENT GAINS FOR REASONS I LAY OUT IN MY LETTER. OVER A PERIOD OF TIME THE COMPANIES WE OWN STOCK IN, RETAIN EARNINGS, AND THEY USE THOSE REINVESTED EARNINGS USUALLY TO OUR BENEFIT AND THAT SHOWS UP IN CAPITAL GAINS SOME DAY. BUT REPORTED EARNINGS FOR A COMPANY THAT HAS A LOT OF COMMON STOCKS, MARGINABLE STOCKS LIKE OURS, YOU DON'T WANT TO LOOK AT THE FINAL LINE. YOU DO WANT TO LOOK AT THE OPERATING EARNINGS LINE. NOW I WOULD SAY THAT IF YOU HAD TAKEN THE FIRST TWO MONTHS OF LAST YEAR AND COMPARED TO THE FIRST TWO MONTHS OF THIS YEAR, THOSE FIGURES WOULD HAVE BEEN QUITE COMPARABLE, BUT OF COURSE IN MARCH OF 2020 THE ECONOMY WAS SHUT DOWN IN EFFECT. I MEAN, IT WAS A SELF-INDUCED RECESSION, AND AN ABRUPT ONE, VERY ABRUPT. SO THE ECONOMY WENT OFF A CLIFF. IN MARCH IT WAS RESURRECTED IN AN EXTRAORDINARILY EFFECTIVE WAY BY FEDERAL RESERVE ACTION AND LATER ON THE FISCAL FRONT BY CONGRESS, AND WE'LL GET INTO THAT LATER, BUT THE FIGURE YOU S SEE, THE DIFFERENCE WAS MARCH BASICALLY. WHAT OUR BUSINESSES HAVE DONE WE'LL GET INTO MORE SPECIFICS LATER. OUR BUSINESSES HAVE DONE QUITE WELL. THIS HAS BEEN A VERY, VERY, VERY UNUSUAL RECESSION IN THAT IT'S BEEN LOCALIZED AS THE INDUSTRY TO AN EXTRAORDINARY EXTENT. RIGHT NOW BUSINESS IS REALLY VERY GOOD. GREAT IN MANY SEGMENTS OF THE ECONOMY WHICH WE'LL TALK ABOUT LATER, BUT THERE'S STILL PROBLEMS IF YOU'RE IN A FEW TYPES OF BUSINESSES THAT HAVE BEEN DECIMATED SUCH AS INTERNATIONAL TRAVEL AND THE SORT. SO WITH THAT, WE'LL GO BACK TO THE FIGURES LATER ON. PERHAPS IN SOME OF THE QUESTIONS. I WOULD LIKE TO JUST GO OVER TWO ITEMS THAT WOULD LIKE PARTICULARLY NEW ENTRANTS TO THE STOCK MARKET TO PONDER JUST A BIT BEFORE THEY TRY AND DO 30 OR 40 TRADES A DAY IN ORDER TO PROFIT FROM WHAT LOOKS LIKE A VERY EASY GAME. I WOULD LIKE TO GO TO SLIDE L1. PUT THAT UP. AND THESE -- ON MARCH 31st I RAN OFF A LIST OF THE 20 LARGEST COMPANIES IN THE WORLD BY STOCK MARKET VALUE, AND THOSE NAMES, A GOOD MANY OF WHICH WILL BE FAMILIAR TO YOU, BUT THEY WERE LED BY APPLE THAT'S SLIGHTLY OVER 2 TRILLION. AND IT WENT DOWN TO THE NUMBER 20th WAS WORTH 330 ODD BILLION. THOSE ARE THE 20 LARGEST COMPANIES IN THE WORLD BY MARKET VALUE ON MARCH 31st. NOW IF I HAD A LITTLE -- I WAS HOPING I COULD GET A LITTLE QUIZ MACHINE SO I COULD HAVE EVERYONE WEIGH IN ON THIS ANSWER AND WE COULD FLASH IT UP LATER. WHAT I WOULD LIKE YOU TO DO IS LOOK AT THAT LIST. STARTS OFF WITH APPLE, SAUDI ARAMCO'S A SPECIALIZED COUNTRY -- COMPANY. I DON'T KNOW WHETHER IT'S 95% OWNED BY THE GOVERNMENT OR WHAT, BUT IT'S ESSENTIALLY A COUNTRY FOR SALE IN TERMS OF THAT BUSINESS. THE TOP -- OF THE TOP SIX COMPANIES, FIVE OF THEM ARE AMERICAN. I CAN HEAR PEOPLE SAY AMERICA HAS -- IT'S NOT WORKING VERY WELL OR SOMETHING OF THE SORT. SIX TOP COMPANIES IN VALUE, FIVE OF THEM ARE IN THE UNITED STATES AND IF YOU THINK ABOUT IT, WE TALKED A LITTLE ABOUT THIS LAST YEAR. IN 1790 WE HAD 1/2 OF 1% OF THE WORLD'S POPULATION. A LITTLE LESS. OOF,000 PEOPLE WERE SLAVES. IRELAND HAD MORE PEOPLE THAN THE UNITED STATES HAD. RUSSIA HAD AS MANY TIMES AS -- >> UKRAINE HAD TWICE AS MANY PEOPLE. WHAT DID WE HAVE? WE HAD A MAP OF THE FUTURE, ASPIRATIONAL MAP THAT SOMEHOW NOW ONLY 200 -- WELL, AFTER THE CONSTITUTION, 232 YEARS LATER LEAVES SUS WITH FIVE OF THE TOP SIX COMPANIES IN THE WORLD. THAT'S NOT AN ACCIDENT AND IT'S NOT BECAUSE WE WERE WAY SMARTER, WAY STRONGER OR ANYTHING OF THE SORT. WE HAD GOOD SOIL, DECENT CLIMATE, BUT SO DID SOME OF THE OTHER COUNTRIES I NAMED. THIS SYSTEM HAS WORKED VERY WELL. IMAGINE THINKING OF A COUNTRY WITH 1/2 OF THE LIST. WHAT I WOULD LIKE YOU TO DO IS LOOK AT THAT LIST FOR A MINUTE OR TWO IF YOU WANT TO AND THEN MAKE AN ESTIMATE, YOUR YOEN OWN GUEST. HERE THEY ARE, THESE POWE POWERHOUSES. IT'S NOT GOING TO BE ALL 20. IT MAY NOT BE ALL 20 TODAY OR TOMORROW. THIS WAS MARCH 31st, BUT WHAT WOULD YOU GUESS? THINK ABOUT THAT YOURSELF. WOULD YOU PUT DOWN FIVE, EIGHT? WHATEVER IT WOULD BE, I WOULD NOW INVITE YOU TO LOOK AT SLIDE 2 -- WELL, 2, WHICH GOES BACK A LITTLE MORE THAN 30 YEARS. LOOK AT THE TOP 20 FROM 1989 AND IF YOU LOOK AT THE TOP 20 FROM 1989, THERE ARE TWO THINGS THAT SHOULD GRAB YOUR INTEREST, AT LEAST TWO. NONE OF THE 20 FROM 30 YEARS AGO ARE ON THE PRESENT LIST, NONE, ZERO. DUH, THERE WERE SIX U.K. COMPANIES ON THE LIST AND THEIR NAMES ARE FAMILIAR TO YOU. WE HAVE GENERAL ELECTRIC, WE HAVE EXXON, IBM CORP. MERCK HAS DONE THEIR NUMBER. YUN MADE IT. I ASKED YOU TO PLAY THE QUIZ. I DON'T THINK IT WILL BE ZERO BUT IT IS A REMINDER OF WHAT EXTRAORDINARY THINGS ARE GOING TO HAPPEN, THINGS THAT SEEM OBVIOUS TO YOU. JAPAN HAD THIS WONDERFUL BULL MARKET FOR A LONG TIME. YOU HAD A NUMBER OF JAPANESE COUPLES ON THE CASE. UNITED STATES HAS THE 6, AND I WOULD INVITE YOU TO LOOK AT ONE OTHER THING AS YOU LOOK AT THIS ADD ADDRESS. WE WEREN'T JUST KISS COVERING CAPITALISM. PEOPLE THOUGHT THEY WERE IN. IT WAS NOT A BACKWARD TIME AND IF YOU LOOKED AT THE TOP COMPANY AT THAT TIME HAD A MARKET VALUE OF 104 BILLION. SO THE LARGEST COMPANY IN THE WORLD OF TITLE IN JUST A SHADE OVER 30 YEARS HAS GONE FROM 100 BILLION TO 2 TRILLION. AT THE BOTTOM THE NUMBER 20 HAS GONE FROM 34, A LITTLE OVER TEN TIMES THAT. THIS TELLS YOU WHAT'S HAPPENED. IT TELLS YOU A LITTLE BIT ABOUT INFLATION, BUT THIS WAS NOT A HIGHLY INFLATIONARY PERIOD AS A WHOLE. BUT IT TELLS YOU THAT CAPITALISM HAS WORKED INCREDIBLY WELL, ESPECIALLY IF YOU'RE THE CAPITALIST. IT'S A PRETTY A STAUNDING NUMBER. DO YOU THINK YOU COULD TAKE 2 TRILLION FOR THE THE R FINE COMPANIES. THAT'S FOR THE LEADER. IT SEEMS IMPOSSIBLE. MAYBE IT IS IMPOSSIBLE. WE WERE JUST AS SURE OF OURSELVES AS INVESTORS OUT OF WALL STREET WAS IN 1989 AS WE ARE TODAY, BUT THE WORLD DIDN'T CHANGE. I'LL JUST GIVE YOU ONE OTHER EXAMPLE YOU MIGHT PONDER. ONE THING IT SHOWS IS THAT IT'S A GREAT ARGUMENT. THE AMAZING THING WAS TO BE ABOARD A SHIP. THEY WERE GOING TO A BETTER PROMISED LAND, THEY DIDN'T KNOW WHICH ONE THEY NIECELY GOT ON. YOU OO OO GROUP. >> THEY NEED U.S. EQUITIES, MY PURPOSE. DO A HOLDOVER, YEAR-TO-YEAR PERIOD. >> IF YOU THINK HELEN WILL REBUILD THESE. OVERALL EQUITIES WERE ABSOLUTELY THE PLACE TO BE. SECONDLY, PEOPLE GET ENORMOUSLY ATTRACTED TO VARIOUS INDUSTRIES. I MEAN, DO YOU THINK IF PEOPLE SAY IT'S IN THE X, Y, Z COMPANY. YOU CAN SEM I P OOs MP YOU KNOW, IT'S THE PLACE TO BE. SO BERKSHIRE HATHAWAY, WHERE WAS THE PLACE TO BE IN 1903 WHEN MY DAD WAS BORN IN 1903? THAT'S BIG NEWS. THIS HAS HAD A COUPLE OF TIMES BEFORE. HE WAS GREAT. WITHOUT THE AUTOS, WE WOULDN'T HAVE GEICO. BUT IT TRANSFORMED THE COUNTRY. AND HENRY FORD BROUGHT IN THE $5 DAILY WAGE. THAT WAS A HUGE THING. SIMPLY LINES OUT THE WHOLE THING. A AUTO, LET'S JUST ASSUME THAT YOU HAD SEEN A QUICK GLANCE BACK IN 1903 AFTER YOU WILL THE EE FINANCE. EVERYTHING ABOUT IT SAID, WELL, THIS IS PRETTY EASY. IT'S GOING TO BE CARS. IT'S GOING TO BE AUTOS. WELL, BERKSHIRE ZSH LET'S SEE WHAT WE'VE GOT UP THERE. YEAH, NO, STAY WHERE YOU WERE. GO BACK. I DON'T WANT TO CHANGE SLIDES YET. GO BACK. BERKSHIRE BY ACCIDENT -- WELL, WE OWN A COMPANY CALLED MARMON. WE BOUGHT IT SOME YEARS AGO. PRITZKERS HAD BUILT THIS BUSINESS FROM MANY, MANY, MANY COMPANIES THAT THEY HAD ACQUIRED AND THE NAME OF THEIR COMPANY WAS CALLED MARMOM. I DON'T KNOW EXACTLY WHY THEY DECIDED TO NAME IT MARMAN, BUT THEY DID OWN A COMPANY CALLED HARMON. THE MARMON COMPANY -- GETTING SLIGHTLY AHEAD OF ME ON THE SLIDES AGAIN BUT THAT'S OKAY. WE CALLED IT -- IT WAS -- THEY OWNED THIS COMPANY, MARMON, WHICH IN 1911 HAD BEEN A -- THE COMPANY WHOSE CAR WON THE FIRST INDIANAPOLIS 500. MAYBE THAT'S WHY THEY CALLED THEM MARMON. THEY FOUNDED THE COMPANY THEN AND WON THE FIRST INDIANAPOLIS 500. >> I'M NOT SURE THAT WAS A BIG CONTRIBUTION TO SOCIETY. THE CAR THAT WAS ENTERED IN THE INDIANAPOLIS 500, THE GUY WHO SATURDAY NEXT TO HIM AND LOOKED BACKWARDS, THEY INVENTED THE REAR-VIEW MIRROR. LET'S JUST ASSUME THAT THEY DECIDED THAT AUTOS WERE THIS INCREDIBLE THING AND SOME DAY THERE WOULD BE AN INDIANAPOLIS 500, THEY WOULD HAVE REAR VIEW MIRRORS AND 290 MILLION CARS WOULD BE BUZZING. AND SO I DECIDED TO LOOK AT THE HISTORY AND I THOUGHT I PUT UP A LIST FROM THE -- AND I WAS ORIGINALLY GOING TO PUT UP THE Ms SO I COULD GET THEM ON ONE SLIDE BUT WHEN I WENT TO THE Ms, I WENT ON AND ON AND ON. I DECIDED TO PUT UP ONES THAT STARTED WITH MA. AS YOU CAN SEE, THERE WERE ALMOST 40 COMPANIES THAT WENT INTO THE AUTO BUSINESS. MA. MARCHMAN PRODUCT. 1930s WERE REALLY QUITE SPECIAL. THERE WERE AT LEAST 2,000 COMPANIES THAT ENTERED THE AUTO BUSINESS BECAUSE IT CLEARLY HAD THIS INCREDIBLE FUTURE. OF COURSE, YOU REMEMBER THAT IN 2009 THERE WERE THREE LEFT, TWO OF WHICH WENT BANKRUPT. SO THERE WAS A LOT MORE TO PICKING STOCKS THAN TRYING TO FIGURE OUT WHAT'S GOING TO BE A WONDERFUL FUTURE THE MAIN STREET -- THERE WAS NEBRASKA MOTOR COMPANY. EVERYBODY STARTED CAR COMPANIES JUST LIKE EVERYBODY IS STARTING SOMETHING NOW WHERE YOU CAN GET MONEY FROM PEOPLE. BUT THERE WERE VERY, VERY, VERY FEW PEOPLE THAT PICKED THE WINNER AND GOT THE OPPORTUNITY AT FORD MOTOR. HENRY FORD HAD A FEW PARTNERS THAT HE DIDN'T LIKE AND HE FIGURED, WAY TO BUY THEM OUT. THAT WAS SORT OF THE -- IT WAS SORT OF THE BEGINNING OF THE AUTO FINANCE. THAT'S A LONG STORY. >> GENERAL MOTORS BECAME THE DOMINANT COMPANY. THEY SHIFTED FROM THE MODEL T TO THE MODEL A VERY QUICKLY. I JUST WANT TO TELL YOU, IT'S NOT AS EASY AS THAT SOUNDS. WITH THAT, WE WILL GO TO BECKY QUICK AND SHE WILL ASK ANY OF THE FOUR OF US QUESTIONS SHE HAS SELECTED AND WHICH WE DON'T -- SHE DOESN'T SHARE WITH US AND WE WILL DO THAT FOR A CONSIDERABLE PERIOD OF TIME. YOU CAN BE SENDING IN QUESTIONS TO HER AND THEN LATER ON AFTER ABOUT 3 1/2 HOURS WE WILL HAVE THE ANNUAL MEETING WHICH WON'T TAKE LONG. BECKY, OVER TO YOU. >> THANKS, WARREN. HELLO TO EVERYBODY. THIS FIRST QUESTION THAT CAME IN CAME IN FROM ANDY SEAS. HE SAID HE'S THE OWNER OF NOT NEARLY ENOUGH B SHARES. MR. BUFFETT, YOU'RE WELL KNOWN TO SAY BE FEARFUL WHEN OTHER PEOPLE ARE GREEDY. DUMPING AIRLINE STOCKS AT OR NEAR THE LOW, NOT TAKING ADVANTAGE OF THE FEAR OF GRIPPING THE MARKET TO BUY SHARES OF PUBLIC COMPANIES AND BEING INFLEXIBLE. BERKSHIRE APPROACHED THE DECISION MAKING SPECIFICALLY AFTER IT WAS ASSURED THROUGH THE C.A.R.E.S. ACT IT WOULD PROVIDE A ROBUST BACKSTOP IN THE MARKETS. >> UNTIL BOTH MONETARY AND FISCAL POLICY KICKED IN -- WELL, WE HAD AN INCREDIBLE PROBLEM. JUST AS CHARLIE IS THE CHIEF CULTURE OFFICER, I'M CHIEF RISK OFFICER AT BERKSHIRE. THAT'S MY JOB. WE HOPE WE DO WELL BUT WE WANT TO BE SURE WE DON'T DO TERRIBLY. BUT WE DIDN'T SELL A SUBSTANTIAL -- WE'RE A COMPANY WITH 6, PROBABLY $700 BILLION WORTH OF BUSINESSES, SOME WE OWN IN THEIR ENTIRETY, SOME WE OWN A PIECE OF. AND I DON'T KNOW WHETHER WE WERE SELLERS IN MAYBE 1% OF THE VALUE OF ALL THE BUSINESSES WE HAD BUT JUST GOT TO MENTION THE AIRLINE BUSINESSES IN PARTICULAR AND THEN I'LL GET ON WITH WHAT WAS DONE IN FISCAL MONETARY POLICY. WE HAD A FEW PEOPLE, VARIOUS AREAS OF BERKSHIRE, THAT WANTED TO GO IN FOR HELP FROM THE GOVERNMENT AND IN SOME CASES THEY HAD MINORITY SHAREHOLDERS OWNING A FEW PERCENT. WE'RE GOING TO GET KILLED BY WHAT'S HAPPENING WITH THE REGULATIONS THAT ARE BEING PUT OUT STOPPING THE ECONOMY. THEY SAID, EVERYBODY'S GOING IN FOR THEM, WHY DON'T WE GO IN? I SAID, BERKSHIRE CAN HANDLE IT. THIS IS FOR PEOPLE THAT CAN'T HANDLE IT SO WE'RE NOT APPLYING FOR IT. THE AIRLINES WERE THE MOST PROMINENT BENEFICIARIES OF WHAT TOOK PLACE IMMEDIATELY AT THIS. GRANTS NOT LOANS. AND I THINK THAT WAS FINE PUBLIC POLICY. I WISH IT COULD GO TO EVERY pRE BUSINESS THAT WAS OUT OF BUSINESS AND HAD NO -- THEY WERE -- THEY WERE -- THEY WERE MADE TOAST OF BASICALLY, BUT THE AIRLINES CLEARLY WHAT HAPPENED WAS NOT THEIR FAULT IN ANY WAY, SHAPE, OR FORM. IT WASN'T LIKE IN 2008-2009 -- >> NOW AIRLINES OPERATE IN BANKRUPTCY. THREE OF THE FOUR VICTIMS WENT THROUGH A BANKRUPTCY. THE AIRLINES WERE BECOMING USED TO OPERATING IN -- IT WAS PERFECTLY PROPER FOR THE AIRLINE INDUSTRY. YOU LOOK AT THE FIGURES OF 2 TRILLION FOR APPLE. THE ENTIRE BIG FOUR AIRLINES, THEY WERE -- THEY SOLD FOR ABOUT $100 BILLION ALMOST. VERY, VERY SMALL. COMBINED THEY WOULDN'T COME CLOSE TO MAKING THE CUT. I MEAN, THEY WOULDN'T BE IN THE TOP 50. SO, ANYWAY, THEY WENT INTO THE GOVERNMENT. THEY NEEDED THE GOVERNMENT HELP OR THEY NEEDED -- OR THEY WOULD GO BANKRUPT, SOME OF THEM. AND REALLY CONGRESS AND STEVE MNUCHIN TOO, THEY DECIDED THEY DESERVED HELP, WHICH I DO NOT QUARREL WITH AT ALL, BUT IMAGINE IF BERKSHIRE WAS THE 10% HOLDER, WHICH THEY HAD BEEN. BERKSHIRE, IT WOULD BE LIKE ONE OF OUR -- THEY MIGHT VERY WELL HAVE HAD A VERY, VERY, VERY DIFFERENT RESULT IF THEY HAD HAD A VERY, VERY, VERY RICH SHAREHOLDER THAT OWNED 8 OR 9%. THEY DIDN'T HAVE THAT. YOU MIGHT NOT HAVE GOTTEN THE SAME RESULT. IN FACT, YOU PROBABLY WOULDN'T. I CAN SEE THE HEADLINES BECAUSE YOU'VE SEEN THE HEADLINES ON SOME COMPANIES THAT TOOK 100 MILLION, THE AIRLINE DIDN'T NEED IT, SOME OF THEM GAVE IT BACK. MOST OF THEM GAVE IT BACK. BUT YOU'RE ACTUALLY LOOKING AT A DIFFERENT RESULT THAN IF WE HAD KEPT OUR STOCK. BUT IN ANY EVENT, AN INDUSTRY THAT WAS SELLING FOR LESS THAN $100 MILLION. THEY LOST A SIGNIFICANT AMOUNT OF MONEY. THEY LOST PERSPECTIVE EARNING POWER. I WOULD SAY THE ECONOMIC RECOVERY HAS GONE FAR BETTER AND I CUT BACK SOME OF THE BANK INVESTMENT. BASICALLY OUR NET SALES WERE 1.5%. I CONSIDERED IT A GREAT MOMENT IN BERKSHIRE HISTORY BUT WE'VE GOT MORE NET WORTH THAN ANY OTHER COMPANY IN THE UNITED STATES UNDER ACCOUNTING PRINCIPLES AND WE'VE GOT 6 OR 700 BILLION IN BUSINESSES AND AS I THINK THE AIRLINE BUSINESSES HAVE DONE BETTER BECAUSE WE SOLD AND I WISH THEM WELL. I STILL WOULDN'T WANT TO BUY THE AIRLINE BUSINESS INTERNATIONAL. PEOPLE REALLY WANT TO -- THEY WANT TO TRAVEL FOR PERSONAL REASONS AND BUSINESS TRAVEL IS THE OTHER THING. WE'VE GOT A BIG EXPOSURE TO BUSINESS TRAVEL, OF COURSE, THROUGH THE FACT THAT WE OWN 19% OF AMERICAN EXPRESS AND WE OWN PRECISION GAS PARTS WHICH SERVICES THE AIR BUSINESS. WE'VE STILL GOT A BIG BUSINESS INVESTMENT IN AIR TRAVEL, A BIG COMMITMENT TO IT. WE WISH THE BIG 4 THE BEST AND I THINK OUR MANAGEMENT'S HAVE DONE A VERY GOOD JOB DURING THIS PERIOD. >> MORE SPECIFICALLY BEYOND THE AIRLINES THOUGH, JUST THE IDEA THAT -- AND THIS CAME FROM SEVERAL QUESTIONS, TOO, INCLUDING ONE FROM CHRIS BLAINE. YOU SPENT YEARS INSISTING YOU HAD YOUR ELEPHANT GUN READY. YOU SAT ON YOUR HANDS. PLEASE HELP ME UNDERSTAND WHAT I MISSED. >> I DIDN'T GET THE LAST PART. >> PLEASE HELP ME UNDERSTAND WHAT I MISSED. WHY DIDN'T YOU USE MORE OF THE CASH AT HAND? >> WELL, WE HAVE ABOUT -- OUR CASH ON HAND HAS BEEN ABOUT 15% OF OUR VALUES OF OUR BUSINESSES AND THAT'S A HEALTHY CHUNK. I SAY I'LL NEVER GET BELOW 20 BILLION BUT WE'RE GOING TO RAISE THE SIZE. WE COULD HAVE DEPLOYED 50 OR 75 BILLION AND RIGHT BEFORE THE FED ACT -- I MEAN, AT A POINT WHERE THE CALLS WERE -- TWO CALLS CAME IN, BUT THERE WAS TWO OR THREE DAYS THAT NOTHING COULD HAPPEN. WHEN JAY POWELL ACTED AS HE DID, THAT WAS INCREDIBLY IMPORTANT. I MEAN, I SHOULD SAY THE FED ACTED AS THEY DID, BUT THEY MOVED WITH SPEED AND A DECISIVENESS ON MARCH 23rd THAT CHANGED THE SITUATION WHERE THE ECONOMY HAD STOPPED, THE GOVERNMENT BOND MARKET WAS EVEN DISRUPTED. BERKSHIRE HATHAWAY PROBABLY COULD NOT HAVE GONE OUT WITH A DEBT OFFERING THE DAY BEFORE. DIDN'T GET A LOT OF PUBLICITY, BUT THERE WAS A RUN ON MONEY MARKET FUNDS, VERY SUBSTANTIAL RUN. AND IF YOU LOOK AT THE NUMBERS -- DAILY NUMBERS ON THAT, IT WAS A REPEAT OF SEPTEMBER 2008. AND THIS TIME I GIVE GREAT CREDIT TO WHAT BERNANKE AND PAULSEN DID, BUT THIS TIME THE FED KNEW THAT SAYING WHATEVER IT TAKES AND SAYING IT AND DEMONSTRATING IT, WHICH THEY DID ON MARCH 23rd, THEY TOOK A MARKET WHERE BERKSHIRE COULDN'T SELL BONDS ON THE DAY BEFORE AND TURNED IT INTO ONE WHERE CARNIVAL CRUISE LINES, A DAY OR TWO LATER, RECORD ISSUANCE OF CORPORATE DEBT. COMPANIES LOSING MONEY. COMPANIES WERE CLOSED. WHATEVER. IT WAS THE MOST DRAMATIC MOVE THAT YOU COULD IMAGINE. AND AT THE TIME AS I REMEMBER THE CHAIRMAN SAYING, YOU KNOW, HOW ABOUT A LITTLE HELP ON THE FISCAL FRONT? AND THEN CONGRESS ACTED VERY, VERY BIG AGAIN IN 2008 AND NINE, THEY ARGUED ABOUT, YOU KNOW, WE DON'T WANT TO GIVE MONEY TO THOSE DIRTY BANKS, THAT SORT OF THING. THIS TIME THERE WAS NOBODY TO BLAME. THEY SAW WHAT WAS NECESSARY AND CONGRESS RESPONDED IN A WAY THAT WAS INCREDIBLE AND IT DID THE JOB AND IT DID -- I THINK IT DID A BETTER JOB THAN EITHER THE FED OR THE TREASURY OR ANYBODY EXPECTED. THIS ECONOMY RIGHT NOW IS -- 85% OF IT IS RUNNING IN SUPER HIGH GEAR AND PEOPLE CAN'T -- AND YOU'RE SEEING SOME INFLATION AND ALL OF THAT. IT'S RESPONDED IN AN INCREDIBLE WAY. WE'VE LEARNED SOMETHING OUT OF 2008 AND 9 BUT I DON'T THINK IT WAS A SURE THING THAT WOULD HAPPEN. THE ONE THING ABOUT BERKSHIRE, WE NEVER WANT -- WE DON'T WANT TO DEPEND ON ANYBODY. WE'RE NOT A BANK. WE CAN'T GO TO THE FEDERAL RESERVE IF WE NEED MONEY. WE'VE GOT TO BE SURE THAT UNDER ANY CIRCUMSTANCES, ANY CIRCUMSTANCES WE CAN'T SOLVE NUCLEAR WAR AND WE CAN'T -- BUT IN "A STREET CAR NAMED DESIRE" SAID I DEPEND ON THE KINDNESS OF STRANGERS. YOU CAN'T DEPEND ON OTHERS IF THINGS ARE STOPPED. WE WERE SEEING IT IN THE MIDDLE OF MARCH. EVERYBODY WAS DRAWING DOWN THEIR CREDIT LINES. THE BANKS DID NOT EXPECT THAT. THEY JUST WEREN'T SURE THEY WERE GOING TO BE ABLE TO DRAW DOWN THEIR CREDIT LINES TEN DAYS LATER. THEY DREW THEM DOWN. TOOK MONEY OUT OF MONEY MARKET FUNDS. WE GOT -- I GIVE GREAT CREDIT ON THE MONETARY FISCAL SIDE WHAT WAS DONE. I DIDN'T THINK IT WAS A SURE THING THAT WOULD HAPPEN. I DIDN'T KNOW HOW IT WOULD BE IMPLEMENTED. I THINK IT'S WORKED BETTER THAN JUST ABOUT ANYBODY HAS EXPECTED AND I THINK -- WELL, YOU'RE SEEING IT NOW. CHARLIE'S GOT SOME VIEWS ON THIS, TOO. WE SHOULDN'T LEAVE HIM OUT OF IT. >> WELL, IT'S CRAZY TO THINK ANYBODY IS GOING TO BE SMART ENOUGH TO HAVE MONEY AND COME OUT ON THE TAKE IN SOME CRAZY CRISIS AND SPEND IT ALL. THERE'S ALWAYS SOME PERSON THAT DOES IT BY ACCIDENT BUT THAT'S TRUE TO STANDARD. ANYBODY WHO EXPECTS THAT OF BERKSHIRE HATHAWAY IS OUT OF HIS MIND. >> CHARLIE AND I WERE NEVER REALLY GOOD AT DANCING BUT WE CAN DO THAT DANCE. >> NO, WE CAN'T. ALMOST NOBODY ELSE CAN. >> NOT WITH TENS OF BILLIONS OR HUNDREDS OF BILLIONS. BUT IT'S WORKED OUT WELL. WE FORGOT TO SHOW ON THE FINANCIAL SIDE BACK TO THE BALANCE SHEET. WE DID BUY IN. YOU'LL SEE THE SHARES OUTSTANDING IF YOU GO BACK TO WHAT IS IT E-3. >> E-2. >> I THINK IT'S E-2. THE BALANCE SHEET. >> THERE IT SHOWS THE SHARES OUTSTANDING IN THE BOTTOM. WE HAVE -- WE SPENT ABOUT 25 BILLION IN THE FIRST QUARTER AND MORE MONEY SINCE THEN. IT'S THE BEST THING. WE CAN'T BUY COMPANIES AND WE CAN'T BUY STOCKS AS CHEAP AS WE CAN BUY OUR OWN. WE'VE DONE THAT WITH A FAIR AMOUNT OF MONEY. I MEAN, YOU KNOW, DEFINITELY WE COULD HAVE DONE BETTER THINGS. WE WOULD HAVE SOLD -- WE WOULD HAVE SOLD AIRLINES AND CUT BACK ON BANKS REGARDLESS. WHETHER WE SHOULD HAVE BOUGHT SOMETHING ELSE AT THE SAME TIME IS ANOTHER QUESTION. >> THIS QUESTION COMES FROM A LONG-TERM SHAREHOLDER WHO'S BEEN HERE FOR MORE THAN 25 YEARS. HIS NAME IS BEN KNOLL. HE'S FROM MINNEAPOLIS, MINNESOTA. HE SAYS, MR. MUNGER AND MR. BUFFETT, AFTER A 15 YEAR PERIOD OF MARKET UNDER PERFORMANCE, YOU'RE CAUTIOUS PREDICTING BERKSHIRE BEING ABLE TO OUTPERFORM THE MARKET IN THE FUTURE. GIVEN THIS WHAT DO YOU SEE IS THE MARKETS OF LONG-TIMESHARE HOLDERS HOLDING THEIR STOCKS VERSUS DIVERSIFYING THEIR RISK ACROSS AN INDEX? >> CHARLIE, YOU WANT TO ANSWER THAT? >> SURE. WELL, I PERSONALLY PREFER HOLDING BERKSHIRE TO HOLDING THE MARKET SO I'M QUITE COMFORTABLE HOLDING BERKSHIRE. I THINK OUR BUSINESSES ARE BETTER THAN THE AVERAGE. >> IS IT BECAUSE YOU DON'T THINK THE MARKET VALUES IT FAIRLY? >> WELL, THESE ARE JUST ACCIDENTS OF HISTORY AND THINGS ARE FLUCTUATING AT ALL TIMES. ON A COMPOSITE BASIS, I'D BET ON BERKSHIRE OVER THE MARKET. THAT'S ASSUMING WE'RE ALL DEAD. >> I RECOMMEND IT. I RECOMMEND THE S&P 500 INDEX FUND AND HAVE FOR A LONG, LONG TIME TO PEOPLE. AND I'VE NEVER RECOMMENDED BERKSHIRE TO ANYBODY BECAUSE I DON'T WANT PEOPLE TO BUY IT BECAUSE THEY THINK I'M TIPPING THEM -- NO MATTER WHAT IT WAS SELLING FOR. AND, YOU KNOW, I MADE IT PUBLIC. ON MY DEATH THERE'S A FUND FOR MY -- THAT THEN WIDOW AND 90% WILL GO INTO AN S&P 500 INDEX FUND, 10% INTO TREASURY. ON THE OTHER HAND, I'M VERY HAPPY HAVING MY FUTURE CONTRIBUTIONS TO A GROUP OF CHARITIES THAT WE SPREAD OVER. I THINK THE ODDS ARE BERKSHIRE -- BERKSHIRE IS -- I LIKE IT BUT I'M NOT -- I DON'T -- I DO NOT THINK THE AVERAGE PERSON CAN PICK STOCKS. WE HAPPEN TO HAVE A LARGE GROUP OF PEOPLE THAT DIDN'T PICK STOCKS BUT THEY PICKED CHARLIE AND ME TO MANAGE MONEY FOR THEM 50, 60 YEARS AGO. WE HAVE A VERY UNUSUAL GROUP OF SHARE HOLD I THINK WHO LOOK AT BERKSHIRE AS A LIFETIME SAVINGS VEHICLE AND ONE THEY DON'T HAVE TO THINK ABOUT AND ONE THAT THEY'LL -- YOU KNOW, THEY DON'T LOOK AT IT AGAIN FOR 10 OR 20 YEARS THAT WILL HAVE TAKEN CARE OF THE MONEY REASONABLY WELL. I WOULDN'T ARGUE THE S&P 500 OVER TIME. I LIKE BERKSHIRE BUT I -- I THINK THAT THE PERSON WHO DOESN'T KNOW ANYTHING ABOUT THE STOCKS AT ALL AND DOESN'T HAVE ANY SPECIAL FEELINGS ABOUT BERKSHIRE, I THINK THEY OUGHT TO BUY THE S&P 500 INDEX. >> AS A FOLLOW-UP TO THAT, GERALD SILVER WRITES IN THE TRUSTEES TO YOUR STATE -- I BELIEVE YOU'VE DIRECTED THE MANAGERS TO INVEST IN THE FUND. ISN'T THAT A VOTE OF NO CONFIDENCE? >> NO, WE'RE TALKING WAY LESS THAN 1% OF MY ESTATE. ONE THING I'M GOING TO DO, INCIDENTALLY -- ALL RICH PEOPLE GET ADVISED BY THEIR LAWYERS TO SET UP A TRUST SO NOBODY CAN SEE YOUR WILL. MY WILL IS GOING TO BE PUBLIC RECORD. YOU CAN CHECK AT SOME POINT IF I'VE BEEN TELLING YOU THE TRUTH ABOUT WHAT'S GOING TO GET DONE. 99.7% ROUGHLY OF MY ESTATE WILL EITHER GO TO PHILANTHROPIES OR TO THE FEDERAL GOVERNMENT AND BEFORE IT DOES T I THINK BERKSHIRE IS A VERY GOOD THING TO HOLD. BUT FOR A GIVEN INDIVIDUAL, PARTICULARLY MY WIFE, I JUST THINK THAT HAVING A TINY FRACTION, WHICH IS ALL IT TAKES FOR HER TO DO VERY WELL FOR THE REST OF HER LIFE, I THINK THAT THE BEST THING TO DO IS TO BUY 90% IN AN S&P 500 INDEX FUND. NOW THE INDEX FUND PEOPLE NATURALLY HAVE STARTED OVER THE TIME THEY MARKET MORE AND MORE PRODUCTS THAT GO TO OTHER INDICES AND EVERYTHING. THEY'RE REALLY STARTING TO SAY TO THE AMERICAN PUBLIC, THEY'RE SAYING, WELL, YOU CAN PICK WHAT TO INVEST IN AND WE'LL SELL YOU SOMETHING. WHEN THEY HAVE GOTTEN THROUGH, YOU DON'T KNOW ANYTHING IN STOCKS. SO I NAMED THE 500 INDEXES ONE BUT IT'S A TINY PORTION BUT IT WILL BE -- IT WILL BE HER LIVELIHOOD. SHE'LL HAVE ALL THE MONEY SHE NEEDS AND WAY BEYOND IT AND THAT'S THAT. I DON'T MIND HAVING THE 99.7%. A LARGE PORTION OF IT, ASSUMING THE LAW'S THE SAME AS NOW GO TO PHILANTHROPY, IT WILL BE KEPT IN BERKSHIRE UNTIL THEY FINALLY ARE DISPOSED OF. >> THIS QUESTION COMES FROM ANDREW DICKSON IN THE U.K. HE SAYS, MY QUESTION IS IN RELATION TO THE OIL AND GAS BUSINESS AND YOUR PURCHASE OF CHEVRON STOCK. WHEN BEING ASKED A QUESTION ON TOBACCO STOCKS IN 1997 YOU MENTIONED THAT INDIVIDUALS AND COMPANIES OCCASIONALLY HAVE TO DRAW MORAL LINES ABOUT WHAT THEY'RE WILLING TO DO. YOU STATED AT THE TIME THAT YOU WERE NOT COMFORTABLE IN MAKING A BIG COMMITMENT IN TOBACCO STOCKS AND YOU WERE UNCOMFORTABLE ABOUT THEIR PROSPECTS. CHARLIE HAS ALSO REFERENCED PASSING ON A PRIVATE TOBACCO DEAL THAT YOU KNEW WAS A CINCH AND YOU HAD NO REGRETS SAYING NO TO THE TRANSACTION. I'M NOT SUGGESTING THAT THE OIL AND GAS BUSINESS HAS THE SAME KNOWN NEGATIVE EXTERNALITIES AS CIGARETTES, THEY DO NOT. WITH TOBACCO THE CAUSE AND EFFECT IS DIRECT, OBVIOUS AND MEASURABLE. WITH HYDROCARBONS THE SOCIETAL COSTS AN BENEFITS ARE FAR MORE COMPLEX TO DEBATE. IT'S DRAWING THEIR LINES IN SUCH A WAY THAT THEIR PAINTING DOES NOT INCLUDE HYDROCARBONS, PERIOD. MY QUESTION IS AS THE ALARMISM FROM THE CLIMATE COMMUNITY BECOME PERVASIVE ENOUGH TO WHERE IT'S IRRATIONAL. IS THIS BECOMING AN OVERLY EXPENSIVE TASK? CAN WE GATHER FROM YOUR PURCHASE OF CHEVRON STOCK YOU DO NOT BELIEVE THE HOWLING FROM SOCIETY, REGULATORS AND POLITICIANS WILL IMPACT AND CHEVRON FOR THE NEXT TEN YEARS? CAN CONSUMERS ASSUME THIS CAN GENERATE A SUFFICIENT RETURN ON CAPITAL FOR A LONG TIME TO COME? >> WELL, I'LL GIVE YOU A TEN-WORD ANSWER TO THAT. I CAN'T REMEMBER ALL OF THE QUESTIONS THAT WERE THERE, BUT I WOULD SAY THAT PEOPLE THAT ARE ON THE EXTREMES OF BOTH SIDES ARE A LITTLE NUTS. I WOULD HATE TO HAVE ALL THE HYDROCARBONS BANNED IN THREE YEARS. YOU KNOW, YOU WOULDN'T WANT A WORLD -- IT WOULDN'T WORK AND ON THE OTHER HAND, YOU KNOW, WHAT'S HAPPENING WILL BE ADAPTED TO OVER TIME JUST AS WE'VE ADAPTED TO ALL KINDS OF THINGS. I'M INTERESTED IN THE QUOTE FROM 1997. WE'VE TALKED ABOUT THIS BEFORE. WE HAVE NO PROBLEM OWNING COSTCO OR WALMART AND A SUBSTANTIAL NUMBER OF THEIR STORES. YOU KNOW, THEY SELL CIGARETTES. BIG ITEM. IT'S SOMETHING THAT BRINGS PEOPLE IN. THEY KNOW THE PRICE OF CIGARETTES AND THEY PUT THEM OUT FRONT. IT'S A VERY TOUGH SITUATION. WE MADE THAT DECISION A LONG TIME AGO WHEN WE WENT TO MEMPHIS AND WE LOOKED AT A BUSINESS THAT WAS A VERY, VERY GOOD BUSINESS. IT WAS MUCH LESS HARMFUL, AT LEAST FROM EVERYTHING I COULD FIND OUT. IT WAS MUCH LESS HARMFUL THAN SMOKING TOBACCO, CHEWING TOBACCO WAS. THESE WERE DECENT PEOPLE. THEY WERE RUNNING A LEGAL BUSINESS AND THEY ALL CHEWED TOBACCO THEMSELVES. THEY TOLD ME THAT THEIR MOTHER WAS 100 AND CHEWING TOBACCO AND ALL OF THESE THINGS. CHARLIE AND I DID GO DOWN IN THE LOBBY OF THAT HOTEL AND WE JUST SAID TO OURSELVES, THIS IS PROBABLY THE BEST BUSINESS WE'VE EVER SEEN. I CALLED MY THEN SON-IN-LAW, HE HAD STUDIED CHEWING TOBACCO AND ITS EFFECTS WHEN HE WAS WORKING FOR A NADER RELATED ORGANIZATION AND WE DECIDED NOT TO DO IT. YOU KNOW, I SEE -- I USED TO SEE ADS IN OUR PAPER FROM FINANCIAL COMPANIES WHERE I KNEW THEY WERE TERRIBLE. IT'S A VERY TOUGH THING TO DECIDE WHETHER YOU GET IN OR OUT OF A BUSINESS. VERY TOUGH TIME TO DECIDE WHAT COMPANIES BENEFIT SOCIETIES MORE THAN OTHERS. I DON'T KNOW WHETHER I THINK CHEVRON'S BENEFITTED SOCIETIES IN ALL KINDS OF WAYS AND I THINK IT WILL CONTINUE TO. I DO THINK THAT THE WORLD'S MOVING AWAY FROM THEM, TOO. THAT COULD CHANGE. I DON'T LIKE MAKING THE MORAL JUDGMENTS ON STOCKS IN TERMS OF ACTUALLY RUNNING THE BUSINESSES, BUT THERE'S SOMETHING ABOUT EVERY BUSINESS THAT YOU KNEW WHAT YOU WOULDN'T LIKE AND, YOU KNOW, MEAT PACK ERS, YOU KNOW. IF YOU EXPECT PERFECTION IN YOUR SPOUSE OR YOUR FRIENDS OR IN COMPANIES, YOU'RE NOT GOING TO FIND IT. WHAT YOU ELECT TO DO YOURSELF, IF YOU OWN AN INDEX FUND, YOU OWN -- BELIEVE ME, CHEVRON IS NOT AN EVIL COMPANY IN THE LEAST AND I HAVE NO COMPUNCTION ABOUT OWNING -- IN THE LEAST ABOUT OWNING CHEVRON. AND IF WE OWNED THE ENTIRE BUSINESS, I WOULD NOT FEEL UNCOMFORTABLE ABOUT BEING IN THAT BUSINESS. CHARLIE? >> WELL, I AGREE. YOU CAN IMAGINE TWO THINGS. YOUNG MAN MARRIES INTO YOUR FAMILY. HE'S AN ENGLISH PROFESSOR AT SWARTHMOREAR HE WORKS FOR CHEVRON? WHICH WOULD YOU PICK SIGHT UNSEEN? I WILL ADMIT I WOULD TAKE THE GUY FROM CHEVRON. >> I HOPE YOUR DAUGHTERS AGREE WITH YOU. >> ON THE OTHER SIDE OF THAT ARGUMENT, BECAUSE THERE WERE LOTS OF EMAILS THAT CAME IN ON BOTH SIDES OF THESE ESG QUESTIONS. THIS ONE COMES FROM CHRISTINA GALAGOS WHO'S BEEN A SHAREHOLDERS SINCE 2018. ON ITEMS 2 AND 3 OF THE PROXY MATERIALS THE BOARD RECOMMENDED VOTING AGAINST REGARDING THE REPORTING OF CLIMATE RELATED RISKS AND OPPORTUNITIES AS WELL AS ON THE SHAREHOLDER PROPOSAL REGARDING DIVERSITY AND INCLUSION REPORTING. BERKSHIRE IS SUCH A FORCE FOR GOOD WHEN IT COMES TO FINANCIAL LITERACY, WHY NOT BE A FORCE FOR GOOD AND EXAMPLE WHEN IT COMES TO THESE TWO VERY IMPORTANT ISSUES? PLEASE SHARE WITH US MORE ABOUT THE AGAINST RECOMMENDATION. >> WELL, I MEAN, GREG CAN TALK A LITTLE BIT ABOUT WHAT BERKSHIRE HAS DONE AS OPPOSED TO -- IN TERMS OF THE ENVIRONMENTAL. I WOULD SAY THIS. IT'S VERY INTERESTING. WITH EVERYTHING THAT'S BEING RELEASED, I THINK WE HAVE OVER 1 MILLION SHAREHOLDERS. CAN'T BE SURE BECAUSE OF THE STREET NAME AND DUPLICATE ACCOUNTS. SEEMS VERY, VERY LIKELY. I'VE HAD -- AND I GET THE LETTERS THAT ARE WRITTEN TO ME. I DON'T THINK I'VE HAD -- I DON'T THINK I'VE HAD THREE LETTERS IN THE LAST YEAR FROM SHAREHOLDERS. OUR VOTE ON THIS, AS YOU'LL SEE LATER, IS THAT OVERWHELMINGLY THE PEOPLE THAT BOUGHT BERKSHIRE WITH THEIR OWN MONEY VOTED AGAINST THOSE. MOST OF THE VOTES FOR IT WERE BY -- CAME FROM PEOPLE WHO NEVER PUT A DIME OF THEIR OWN MONEY INTO BERKSHIRE. AND SO THEY -- AND I DON'T THINK THEY READ OUR ANNUAL REPORTS AND I DON'T THINK THEY READ THE REPORTS OF BERKSHIRE HATHAWAY ENERGY AND I DON'T THINK THEY KNOW -- YOU KNOW, I TALK ABOUT WHAT WE'RE DOING IN HIGH VOLTAGE TRANSMISSION, WE'RE DOING MORE THAN ANY OTHER COMPANY IN THE COUNTRY. THE PRESIDENT TALKED ABOUT WHAT THE GOVERNMENT'S GOING TO DO, HOW IMPORTANT IT IS, YOU KNOW? WE HAVE A RECORD THAT OVERALL IS INCREDIBLY GOOD, BUT WE HAVE A GROUP OF ORGANIZATIONS, JUST GENERALLY, AND THEY'RE NICE PEOPLE BUT THEY WANT US TO ANSWER A BUNCH OF QUESTIONS THEIR WAY SO THEY WANT US TO GO TO DAIRY QUEEN, BORSHIMES, ALL OF THOSE PEOPLE ARE FILLING OUT REPORTS AND SHOW A BUNCH OF FIGURES. THE REPORTS THAT COUNT ARE THE REPORTS GREG GETS ON BERKSHIRE HATHAWAY. YOU TALK ABOUT THREE OF OUR COMPANIES, YOU'VE COVERED 95% OF IT. IT'S ASININE FRANKLY IN MY VIEW. WE DO SOME OTHER ASININE THINGS BECAUSE WE'RE REQUIRED TO DO THEM. WE'LL DO THEM BECAUSE WE'RE REQUIRED. TO HAVE THE PEOPLE AT BUSINESS WIRE, DAIRY QUEEN, ALL THOSE PLACES FILLING OUT REPORTS AND MAKING SOME COMMON REPORT THAT COMES IN, WE DON'T DO THAT STUFF AT BERKSHIRE. WE'VE GOT -- DURING THE PANDEMIC WE PROBABLY HAVE ABOUT 12 PEOPLE THAT COME INTO HEADQUARTERS. WE'VE GOT 360,000 PEOPLE WORKING IN THE COMPANY THAT -- ALL KINDS OF DIVERSE ACTIVITIES AND IT'S BUILT -- I DON'T WANT TO GET INTO THE WHOLE THING. IT'S BUILT ON AUTONOMY. I AM PROBABLY THE ONLY CEO OF AN S&P 500 COMPANY THAT DOES NOT GET A CONSOLIDATED INCOME STATEMENT EVERY MONTH. I MEAN, EVERY OTHER COMPANY I'LL BET IN THE S&P 500 PRINTS OUT THE EARNINGS THEY HAD AT THE END, YOU KNOW, FROM FEBRUARY AND MARCH AND CEO GETS THEM AND A WHOLE BUNCH OF OTHER PEOPLE GET IT. I DON'T GET IT. I DON'T NEED IT. I COULD PUT 60 OR 70 COMPANIES THROUGH A WHOLE LOT OF TROUBLE AND EVERYTHING, THEY'D HAND ME SOMETHING AND I KNOW THE ANSWER TO IT ALREADY. IT DOESN'T MAKE ANY DIFFERENCE. THEY'VE GOT THE MONEY THEY NEED. SO WE DON'T DO THINGS JUST BECAUSE WE'VE GOT A DEPARTMENT OF THIS OR A DEPARTMENT OF THAT AND WE DON'T WANT TO SET UP A LOT OF DEPARTMENTS LIKE THAT. WHAT'S IMPORTANT IS WHAT WE'RE DOING -- WELL, PRIMARILY BERKSHIRE HATHAWAY AND THE RAILROAD. I'LL LET GREG TELL YOU ABOUT THAT IN JUST ONE SECOND. BUT -- p>> I DON'T THINK WE THI KNOW THE ANSWER TO ALL OF THESE QUESTIONS ABOUT GLOBAL WARMING AND SO FORTH. PEOPLE WHO ASK THE QUESTIONS THINK THEY KNOW THE ANSWERS, WE'RE JUST MORE MODEST. >> WELL, BUT EVEN IF WE KNEW THE ANSWER, IN TERMS OF THE REPORTS WE WOULD -- WE WOULD NOT COLLECT A WHOLE LOT OF THINGS THAT DON'T MEAN ANYTHING TO US TO SATISFY PEOPLE WHO ACTUALLY DON'T KNOW WHAT THEY'RE TALKING ABOUT. IN MANY CASES I CAN TELL THEY HAVEN'T READ OUR REPORT. WE, AS I POINT OUT IN THE ANNUAL REPORT, I NEVER -- NOBODY WOULD HAVE GUESSED IT. PEOPLE THINK WE'RE A BUNCH OF GUYS THAT OWN STOCKS AND ALL OF THAT SORT OF THING. BERKSHIRE HATHAWAY OWNS BY GAP ACCOUNTING MORE PROPERTY PLANT EQUIPMENT, BUSINESS INFRASTRUCTURE WHAT THE PRESIDENT GOT THROUGH TALKING ABOUT WEDNESDAY NIGHT, INFRASTRUCTURE. WE HAVE MEASURED BY GAP ACCOUNTING THAN ANYBODY ELSE, MORE THAN ANY OF THOSE COMPANIES ON THE LIST OF LARGEST COMPANIES AND WE'VE GOT IT BY A SUBSTANTIAL MARGIN. SO WE HAVE AN INVESTMENT IN WHAT MAKES THIS COUNTRY MOVE AND WORK. 15% OF THE INTERSTATE GOODS MOVE ON OUR RAILROAD. WE'RE BUILDING TRANSMISSION AND WE STARTED IN 2006 OR 7 PLANNING HOW WE WOULD CLOSE COAL PLANTS BUT YOU CAN'T CLOSE COAL PLANTS UNTIL YOU GET THE ELECTRICITY FROM WHERE IT'S GENERATED TO THE CUSTOMER. IF YOU ARE GOING TO GENERATE IT IN WYOMING -- THAT'S THE WAY IT WAS DONE 350 YEARS AGO, 75 YEAR AGO. THERE'S NO REASON TO HAVE THE WIND BLOWING IN WYOMING AND TRYING TO TURN ON THE LIGHTS IN LAS VEGAS. WE WENT ON THE PLAN A LOT EARLIER THAN PEOPLE WERE TALKING ABOUT. WE SAID 16 BILLION OR WHATEVER IT WAS IN THE ANNUAL REPORT UNDERWAY. WE JUST ADDED 2 BILLION SINCE THE ANNUAL REPORT AND THERE'S NO UTILITY IN THE COUNTRY COMING ANYWHERE CLOSE TO THAT. TELL THEM A LITTLE BIT ABOUT IT. >> SURE. THANK YOU. AS WARREN TOUCHED ON, BHE AND BHMF HAVE THE SIGNIFICANT CARBON FOOTPRINT WHEN YOU TALK ABOUT IT. YOU'VE TALKED ABOUT THE DISCLOSURE GOING ALL THE WAY BACK TO 2007. I DID PULL THOSE TWO INVESTOR PRESENTATIONS FROM 2007 AND THE MOST RECENT ONE FROM 2021. IF WE CAN PULL UP BHE 1 AS A SLIDE, IT WOULD HIGHLIGHT GOING ALL THE WAY BACK TO 2007 WE'VE BEEN DOING INVESTOR PRESENTATIONS FOR OUR -- WHAT WE CALL OUR FIXED INCOME INVESTORS AND WE'VE DONE THAT THROUGH -- EVERY YEAR THROUGH 2021. WE'VE PROVIDED VERY SIMILAR DISCLOSURES TO OUR BOARD ON AN ANNUAL BASIS AND HAD DISCUSSIONS AROUND BERKSHIRE HATHAWAY'S ENERGY TO DECASH BOW NIEZ. IF YOU GO BACK TO THE INCOME CONFERENCE, WE WERE HAVING A CONFERENCE AT THAT TIME, WE HAVE THIRD PARTY DEBT, CAPITAL IS RAISED. IT'S USED ACROSS THE REGULATED ENTITIES TO MANAGE OUR TOTAL COSTS TO THE UMS CAN. WE HAVE INVESTORS. WE'RE HIGHLIGHTING ON AN ANNUAL BASIS. IF YOU GO BACK TO THAT 2007 INVESTOR CONFERENCE, IT'S INTERESTING. IN THAT PRESENTATION WE'RE HIGHLIGHTING CLIMATE CHANGE, THAT IT'S A FUNDAMENTAL RISK AND WE DISCUSS WHAT GOOD POLICY WOULD BE. WE DISCUSSED INNOVATION. WE DISCUSSED MARKET TRANSFORMATION AND THE IMPORTANCE OF SETTING TARGETS AT THAT POINT IN TIME. AND WE HAD RECOMMENDATIONS FOR OUR INDUSTRY. THEN SINCE THEN EACH YEAR WE'VE PRESENTED REALLY A PLAN AND A STRATEGY AROUND HOW EACH OF OUR BUSINESSES IN DHE BUT EACH OF OUR REGULATED ENTITIES, HOW THEY'RE GOING TO TRANSFORM. THE WHOLE TRANSFORMATION HAS BEEN AROUND DECARBONIZATION. MANAGING THAT RISK ON BEHALF OF OUR STAKEHOLDERS IN MANY STATES, CUSTOMERS WE SEARCH, AND FOR BERKSHIRE'S SHAREHOLDERS. AS YOU GO THROUGH THOSE PRESENTATIONS THERE'S A COMMON THEME AND WARREN TOUCHED ON IT ALREADY. YOU HAVE TO BUILD THE FOUNDATION FIRST AND THAT FOUNDATION IS AROUND BUILDING THE HIGH VOLTAGE, THE TRANSMISSION SYSTEM. WARREN TOUCHED ON IT IN HIS ANNUAL REPORT THIS YEAR AND LETTER. HE HIGHLIGHTED THAT AT BERKSHIRE HATHAWAY ENERGY WILL BE SPENDING JUST IN THE WEST $18 BILLION ON TRANSMISSION. 5 BILLION OF THAT'S ALREADY BEEN SPENT AS WE SIT HERE TODAY AND THAT 13 BILLION WILL BE SPEND OVER THE NEXT TEN YEARS. THAT'S A FOUNDATION THAT WORKS AT BERKSHIRE HATHAWAY ENERGY AND WELL BEYOND THAT. I WOULD HIGHLIGHT WE'VE BEEN BUILDING THE TRANSMISSION INFRASTRUCTURE IN PLACE, WE HAVE BEEN BUILDING RENEWABLES. IF YOU LOOK AT OUR INVESTMENT THROUGH THE END MUCH 2020 WE'VE INVESTED $30 BILLION OR IN EXCESS OF $30 BILLION INTO RENEWABLES AND HAVE REALLY COMPLETELY CHANGED THE WAY OUR BUSINESSES DO BUSINESS, I.E.,, OUR UTILITY BASES. THEY'VE BEEN DECARBONIZING AND DELIVERING A VALUE PRODUCT TO OUR STAKEHOLDERS, TO OUR CUSTOMERS. AND I THINK THE -- AND I THINK THE RESULTS ARE REALLY AMAZING WHEN YOU LOOK AT THEM. I'LL GIVE YOU A COUPLE OF REFERENCE POINTS. IF YOU GO BACK TO 2015 WHEN THE U.S. WAS DISCUSSING, EXCUSE ME, JOINING THE PARIS AGREEMENT, VERY SPECIFIC TARGETS WERE BEING SET. PRIOR TO THE TARGETS BEING SET BERKSHIRE HATHAWAY AND 12 OTHER COMPANIES INCLUDING THE APPLES OF THE WORLD, GOOGLE, WALMART COMMITTED TO TARIFFS AND TARGETS NEEDED TO BE SET. BERKSHIRE HATHAWAY WAS ONE OF THOSE. >> HOW MANY OTHER COMMIT WRMTS THERE. >> THERE WERE NONE. I'M HAPPY TO REPORT WE MADE A VARIETY OF PLEDGES. ONE OF THEM WAS AT THAT POINT WE HAD INVESTED $15 BILLION IN RENEWABLES AND WE WOULD COMMIT 30 BILLION IN TOTAL. WELL, WE'VE FAR EXCEEDED THAT TOTAL NOW. THERE'S BEEN A CLEAR COMMITMENT TO REDUCE DECASH BOW NEEDING THE BUSINESS. THERE ARE IDENTIFIABLE AND THAT'S IMPORTANT. IF YOU LOOK AT THE STANDARDS THAT ARE SET WITH THE ORIGINAL U.S. GOVERNMENT'S COMMITMENTS ASSOCIATED WITH THE PARIS AGREEMENT, THE TARGET WAS 26 TO 28% REDUCTIONS IN CARBON FOOT PRINDS GOING BACK TO OO O 5 -- >> NO, WE COMMITTED TO THAT AT BHE AND I'M HAPPY TO REPORT AND WE BRIEFED OUR BOARD, WE ACHIEVED THAT IN 2020. SO WE MET OUR PLEDGE AND WE MET THE COMMITMENT UNDER THE PARIS AGREEMENT AND THEN IF YOU FAST FORWARD TO THE DISCUSSIONS THAT ARE OCCURRING RIGHT NOW OR HAVE OCCURRED AROUND REJOINING THE PARIS AGREEMENT, THE CURRENT ADMINISTRATION HAS PROPOSED THAT, AGAIN, USING 2005 AS THE STARTING POINT, THAT THE EMISSION GOALS OR REDUCTIONS SHOULD BE 2/3. I'M HAPPY TO BRIEF TO OUR SHAREHOLDERS AND BRIEFINGS WE'VE PROVIDED TO OUR BOARD, BUT BERKSHIRE HATHAWAY ENERGY WILL ACHIEVE THAT BY 2030. AGAIN, THE REASON WE CAN DO IT IS WE'VE BUILD THE FOUNDATION. WARREN'S HIGHLIGHTED IT AND FOLLOWED IT UP WITH SPECIFIC INVESTMENTS ON THE RENEWABLE SIDE. I HAVE ONE INCREMENTAL SLIDE THAT I DON'T -- THINK SORT OF HOLDS IT ALTOGETHER AND THAT'S VHAE 2 BECAUSE AS PEOPLE DISCUSS COAL UNITS. HOW MANY HAVE YOU OWNED, HOW MANY HAVE YOU CLOSED? >> THERE'S NO QUESTION THAT CAN BE AN IMPORTANT METRIC BUT IT IS A TRANSITION AND WE HAVE VERY MUCH FOCUSED ACROSS THE THREE UTILITIES WE OWN AND THE ONES WE'VE HIGHLIGHTED ON THE SLIDE IS TO TRANSITION FROM OUR EXISTING FLEET TO RENEWABLES USING TRANSMISSION. WE HAVE NOT BECOME OVERLY RESISTANT ON TRANSITIONING TO GAS. OVER A PERIOD OF TIME OUR COAL REQUIREMENTS WILL DECLINE. I'M PLEASED TO REPORT THROUGH 2020 WE'VE CLOSED 16 UNITS TO DATE. IF YOU LOOK AT FROM 2021 THROUGH 2030 THERE WILL BE AN INCREMENTAL 16 UNITS CLOSED AND THEN IF YOU GO THROUGH TO THE END OF 2049 OUR REMAINING 14 UNITS WILL BE CLOSED AND AT THAT POINT IN TIME ALL OUR UNITS CLOSE. THAT'S AN AGGREGATION OF ALL OF THE ACTIVITIES OUR BUSINESS UNITS HAVE BEEN TAKING TO HELP FACILITATE THAT TRANSITION AND REALLY TRANSITIONING TO A -- DECASH BOW NIEZING THOSE UNITS AND DECASH BOW NIEZING OUR BUSINESSES ON BEHALF OF FIRST AND FOREMOST OUR CUSTOMERS, THE MANY STAKEHOLDERS THEY REPRESENT IN THE VARIOUS STATES AND THEN EQUALLY IMPORTANT DECAR BOW NIEZING THOSE BUSINESSES ON BEHALF OF OUR BERKSHIRE HATHAWAY SHAREHOLDERS. THE ONLY OTHER THING I WOULD ADD, BECAUSE IT IS THE ENTITY THAT HAS A SECOND LARGEST FOOTPRINT IN BERKSHIRE AND WHEN YOU COMBINE THEM, YOU'RE TALKING THE MATERIAL SET OF EMISSIONS WITHIN BERKSHIRE, BNSF HAS ALSO BEEN VERY ACTIVE IN MANAGING THEIR CARBON PROFILE. THEY'VE COMMITTED TO HAVE SCIENCE-BASED TARGETS ESTABLISHED FOR 2030 SO, AGAIN, THOSE TARGETS WILL AGAIN BE CONSISTENT WITH THE PARIS AGREEMENT. WE'VE SEEN WHAT THE OTHER PARTICIPANTS OR SOME OF THEM IN THE CLASS -- IN THE INDUSTRY THAT HAVE COMMITTED TO AND OUR COMMITMENT WILL BE VERY SIMILAR, I.E.,, IT WILL BE CONSISTENT. SO, AGAIN, IF YOU LOOK AT OUR -- AND THAT'S BEEN PUBLICLY DISCLOSED. THAT'S ON THE BSNF WEBSITE. EVERYTHING I'VE DISCUSSED IS ON THEIR WEBSITE, FILED IN 8Ks, COMPLETELY ACCESSIBLE BY OUR MANY SHAREHOLDERS. WHEN I LOOK AT IT FROM THE PERSPECTIVE OF OUR BERKSHIRE SHAREHOLDERS, I REALLY BELIEVE THIS RISK IS BEING WELL MANAGED AND IN POSITIONING OURSELVES FOR THE LONG TERM. >> INCIDENTALLY, THE PRESIDENT THE OTHER NIGHT TALKED ABOUT 100 BILLION FOR INFRASTRUCTURE. WE'D LOVE TO SPEND 100 BILLION ON IT. HE WAS TALKING ABOUT, YOU KNOW, TRANSMISSION IS REALLY THE PROBLEM. A BIG PROBLEM. YOU'VE GOT TO GET MORE OF THE SUN IS SHINING AND WHERE THE WIND IS BLOWING ESSENTIALLY TO CONCENTRATIONS OF POPULATION. AND IT'LL BE -- YOU CROSS STATE LINES AND YOU GO THROUGH PEOPLE'S BACKYARDS. IT'S -- IT'S -- WHETHER THE FEDERAL GOVERNMENT HAS A BETTER LUCK IN JUST SAYING THIS IS THE WAY IT'S GOING TO BE DONE, RAMMING IT DOWN THE THROATS OF WHERE THEY GO AND GETTING IT DONE, I MEAN, THEY MAY HAVE THAT POWER AND THEY'LL BE ABLE TO DO IT FASTER THAN WE CAN. THE SPEED, WE BOUGHT CARBON IN 2006, WE HAD A BUNCH OF CUSTOMERS IN THE WEST AND THEY HAD PEOPLE SERVING THEM. TO CHANGE THAT YOU HAVE TO GO WHERE WIND BLOWS AND DELIVER IT. SO IT'S -- BUT IT IS INTERESTING THAT WE HAVE PUBLISHED THIS INFORMATION. WE SPENT FAR MORE THAN ANY UTILITY IN TERMS OF RENEWABLES AND TRANSMISSION IN THE UNITED STATES. WE SHARED IT WITH ENOUGH BUT OUR -- THE PEOPLE WHO BOUGHT THE STOCK WITH THEIR OWN MONEY, THE INDIVIDUALS, THEY SEEM TO UNDERSTAND IT AND THEY READ THE REPORTS. WE GET CALLS AND THEY SAY, WELL, WE WANT TO COME OUT AND TALK TO YOU ABOUT IT. WE'RE NOT TALKING TO THEM AND IGNORING THE MILLION PEOPLE THAT HAVE BEEN WITH US OVER TIME AND BOUGHT IT WITH THEIR OWN MONEY. WE WILL NOT GIVE SPECIAL TREATMENT TO EITHER THE ANALYSTS OR TO THE INSTITUTIONS, WHO TRUST US WITH THEIR SAVINGS. >> THIS QUESTION IS FOR WARREN ENERGY. IT COMES FROM FERNANDO LEWIS. AS A SHAREHOLDER THAT INTENDS TO REMAIN SO FOR MANY DECADES, MY BIGGEST CONCERN IS AROUND POSSIBLE LOSSES ARISING FROM HIGHER THAN EXPECTED INSURANCE LOSSES. WE'VE SEEN THIS IN OTHER COMPANIES WHERE UNDERWRITING MISTAKES CRIPPLE BUSINESSES THAT ARE EXEMPLAR. I UNDERSTAND BERKSHIRE'S CULTURE IS UNIQUE, THIS IS A RISK THAT CONCERNS ME. MANY OF US SHAREHOLDERS FEEL COMFORTABLE NOW GIVEN THE PRIVILEGE OF HAVING YOU LOOK AT THESE DEALS, HOWEVER, THERE WILL BE A DAY WHEN THIS IS NO LONGER THE CASE. IS IT REASONABLE TO THINK OVER THE LONG TERM THEY SHOULD LOOK AT GEICO AND REDUCE THE LONG-TAIL RISK? I HAVE THE BEST GRATITUDE. I'M CONFIDENT WE HAVE THE TALENT TO REMAIN LEADERS FOR DECADES TO COME. THIS IS BEARSED ON THE INHERENT OPAQUENESS AND RISK. >> AJIT, DO YOU WANT TO LEAD OFF? >> I MEAN, CLEARLY CONTRACT CERTAINTY IS AN ISSUE FOR US IN THE INSURANCE INDUSTRY. IT IS AN ISSUE THAT CUTS ACROSS THE LONG TAIL LINE BUT EVEN SHORT TAIL PROPERTY FOCUS LINES. MOST RECENT EXAMPLE IS BUSINESS INTERRUPTION WHICH IS AN INTEGRAL PART OF ANY INSURANCE POLICY BOUGHT AND SOLD BY CRPORATIONS. IT IS A RISK EVERY TIME WE ISSUE A CONTRACT THAT EITHER BECAUSE OF SLOPPINESS IN HOW THAT CONTRACT IS WRITTEN OR BECAUSE OF THE REGULATORY ENVIRONMENT WE ALL HAVE TO LIVE IN THAT THE WORDS IN THE CONTRACT MAY BE TORTURED. NORMALLY WHEN THEY ARE TORTURED, THEY END UP GOING AGAINST THE INSURANCE INDUSTRY, NOT IN THEIR FAVOR. SO IT IS A RISK. IT'S AN UNKNOWN RISK IN TERMS OF HOW BAD IT CAN BE. I HOPE WE PRICE FOR IT WHEN WE PRICE FOR THE PRODUCT, THROW IN SOMETHING FOR THE UNKNOWN UNKNOWNS, IF YOU WILL. WE TRY AND AGGREGATE EXPOSURES BY RISK CATEGORIES. HOPEFULLY THAT WILL GIVE US SOME COMFORT IN TERMS OF SOME BOUNDARIES ON WHAT THE EXPOSURE REALLY CAN BE. THERE'S NO QUESTION THE REGULATORS PLAY AN IMPORTANT ROLE IN TERMS OF THE ECONOMICS OF THE BUSINESS, ESPECIALLY IN THE U.S. WHERE THE 50 STATE REGULATORS WHO WE HAVE TO DEAL WITH IN TERMS OF PRICING, IN TERMS OF CONTRACTS. >> MOST OF THOSE SURPRISES IN INSURANCE, MOST OF THEM ARE UNPL UNPLEASANT. YOU GET THE PREMIUM UNFRONT, THAT'S PLEASANT. YOU GET SOME VERY IMAGINATIVE LOSSES. WE ARE WILLING TO LOSE IN TERMS OF THE OUTSIDE LIMIT. WE'RE WILLING TO LOSE $10 BILLION IN A SINGLE EVENT. WE WANT TO GET PAID VERY APPROPRIATELY FOR THAT, BUT WE'VE GOT THE RESOURCE TOSS DO IT. BUT WE DON'T WANT TO LOSE 10 BECO BILLION IN SOMETHING WHERE WE THOUGHT WE WOULD LOSE 50 MILLION OR SOMETHING LIKE THAT. THE CURRENT SITUATION, FOR EXAMPLE, WITH THE BOY SCOUTS OF AMERICA, I THINK THERE WERE 1100 CLAIMS OR SOMETHING LIKE THAT THAT HAD BEEN FILED AND NOW THERE'S 17,000 -- >> NO, NO, CLOSE TO 100,000. UP BY 50 TIMES. >> THESE GO BACK TO 1950 AND 1960. YOU HAVE PEOPLE ADVERTISING FOR CLAIMS. I'M SURE A LOT OF THEM ARE VALID OR INVALID? >> IT GOES BACK TO THE ISSUE THAT YOU JUST RAISED. THE REASON WHY THE NUMBER OF CLAIMS HAS SKYROCKETED FROM LESS THAN 200,000 IS BECAUSE THE STATUTE OF LIMITATIONS HAD EXPIRED, BUT IN SEVERAL STATES IF NOT IN MORE STATES THEY HAVE UNILATERALLY EXTENDED THE DEADLINE BY WHEN YOU CAN MAKE CLAIMS AND EXPANDED IT BY A FEW YEARS AS A RESULT OF WHICH A LOT OF MORE CLAIMS APPEARED. FUNDED BY PLAINTIFF LAWYERS THAT ARE VERY WELL FUNDED. THAT RESULTS IN CLAIMS JUST SKYROCKETING. >> YEAH. A LOT OF UNPLEASANT SURPRISES IN INSURANCE. WE'VE GOT A VERY -- I'M VERY BIASED ON THIS. I THINK WE'VE GOT THE BEST INSURANCE OPERATION IN THE WORLD AND AJIT IS THE GUY THAT CREATED IT. THE PEOPLE AT GEICO, WE BOUGHT THAT AND DID WONDERFULLY OVER TIME TO CONTRIBUTE TO IT. OTHER PEOPLE HAVE. AJIT IS A SYMPHONY CONDUCTOR. >> THIS QUESTION COMES FROM HENRY ZOO. IT LOOKS LIKE CHARLIE AND WARREN HAVE SOME DIFFERENT OPINIONS RECENTLY LIKE COSTCO, WELLS FARGO. WHERE IS THAT TAKING BERKSHIRE? >> CHARLIE? >> WE'RE NOT ALL THAT DIFFERENT. AND COSTCO IS A COMPANY I VERY MUCH ADMIRE AND I HAVE ENJOYED MY LONG ASSOCIATION WITH IT, WITH THAT COMPANY. AND BERKSHIRE, TOO. SO -- AND LUCKILY THERE'S NO CONFLICT. >> WE HAVE NEVER HAD AN ARGUMENT. 62 YEARS. IT'S NOT THAT WE AGREE ON EVERYTHING, BUT WE LITERALLY IN 62 YEARS -- WE'VE NEVER GOTTEN MAD AT EACH OTHER. >> NO. NO. >> JUST DOESN'T HAPPEN. >> THIS QUESTION'S FROM JASON PLANNER. HE SAID MR. JAIN AND MR. ABEL, THIS QUESTION IS FOR YOU. ONE OF THE SUCCESSFUL FEATURES IS THE STRONG BOND BETWEEN MR. BUFFETT AND MR. MUNGER WHO MANAGE IT BETTER BECAUSE THEY HAD EACH OTHER. CAN YOU PLEASE TELL US ABOUT HOW YOU INTERACT WITH EACH OTHER OR SOME OF THE OTHER INCREDIBLY COMPETENT BERKSHIRE MANAGERS YOU SEEK FOR ADVICE. >> WHO'S THAT DIRECTED AT? >> AT GREG AND AJIT. >> OKAY. >> THERE'S NO QUESTION THE RELATIONSHIP WARREN HAS WITH CHARLIE IS UNIQUE. IT'S NOT GOING TO BE DUPLICATED, CERTAINLY NOT BY ME AND GREG. I CAN'T THINK OF ANYBODY THAT CAN DUPLICATE T. NEVERTHELESS, BOTH GREG AND I, AT LEAST CERTAINLY FROM MY PERSPECTIVE AND I'M SURE GREG WILL SPEAK FOR HIMSELF. WE'VE KNOWN EACH OTHER FOR A VERY LONG TIME. I CERTAINLY HAVE A LOT OF RESPECT, BOTH AT A PROFESSIONAL LEVEL AND PERSONAL LEVEL IN TERMS OF WHAT GREG'S ABILITIES ARE, WE DO NOT INTERACT WITH EACH OTHER AS OFTEN AS WARREN AND CHARLIE DO, BUT EVERY QUARTER WE WILL TALK TO EACH OTHER ABOUT OUR RESPECTIVE DECISIONS. DURING THE COURSE OF THE QUARTER WHILE WE MAY NOT HAVE ANY FORMAL MEETINGS, IF YOU WILL, BUT EVERY TIME THEY'LL PICK UP THE PHONE AND CALL ME. IF THERE'S ANY QUESTION RELATING TO THE NON-INSURANCE OPERATION THAT GREG IS IN CHARGE OF LIKE WE HAD RECENTLY WHERE A CLIENT OF MINE IS LOOKING FOR -- TRYING TO FIND A BUYER. I PICKED UP THE PHONE AND TALKED TO GREG ABOUT, YOU KNOW, HOW BEST TO PROCEED. SO THERE'S THAT THAT HAPPENS DURING THE COURSE OF THE QUARTER. EVERY QUARTER WE EXCHANGE NOTES. WE HAVE A PERFECTLY WELL-FUNCTIONING RELATIONSHIP BETWEEN THE TWO OF US, AND I HOPE IT REMAINS THAT WAY. GREG? >> YES. WELL, AJIT, WELL SAID. AND AS HE TOUCHED ON, WARREN AND CHARLIE HAVE AN EXCEPTIONAL RELAT RELATIONSHIP. VERY PROUD OF THE RELATIONSHIP I'VE HAD. AS AJIT TOUCHED ON, IT'S DEVELOPED OVER MANY YEARS. WE'VE HAD THE OPPORTUNITY OR I'VE SEEN THE OPPORTUNITY TO SEE HOW AJIT'S ONE THE BUSINESS. I'VE HAD THE ABILITY TO OBSERVE THAT. EQUALLY OVER THE YEARS THAT RELATIONSHIP HAS JUST BUILT AND BECOME GREATER AND GREATER AND AS AJIT TOUCHED ON, I HAVE MORE RESPECT FOR HIM BOTH PERSONALLY AND PROFESSIONALLY. EVEN THOUGH THE INTERACTION MAY BE DIFFERENT THAN SAY HOW WARREN AND CHARLIE DO IT, AS AJIT TOUCHED ON, THERE IS A REGULAR DIALOGUE BOTH AROUND OPPORTUNITIES WITHIN OUR TWO BUSINESSES AND UNITS, BOTH IF WE SEE INDIVIDUAL SHOOTS THERE. WE MAKE SURE WE'RE ALWAYS FOLLOWING UP WITH EACH OTHER BUT IT GOES BEYOND THAT. AJIT HAS A GREAT UNDERSTANDING OF THE BERKSHIRE CULTURE. I STRONGLY BELIEVE I DO, TOO. ANY TIME WE SEE ANYTHING UNUSUAL IN ONE OF OUR BUSINESSES, IT'S AJIT WHO I'M GOING TO CALL AND SAY ARE YOU COMFORTABLE THAT WE'RE TAKING THIS APPROACH? IS IT CONSISTENT WITH HOW YOU THINK ABOUT IT. IT GOES BEYOND DISCUSSING THE BUSINESSES BUT THAT MAINTAINING THE EXCEPTIONAL CULTURE WE HAVE AT BERKSHIRE AND BUILDING UPON THAT. VERY FORTUNATE TO HAVE AJIT AS A COLLEAGUE AND IMMENSELY ENJOY WORKING WITH HIM EVERY DAY. THANK YOU. >> THIS QUESTION COMES FROM GLEN GREENBERG. HE SAYS -- IT'S ON THE PROFITABILITY OF GEICO AND BNSF. HE SAID WHY DO THEY OPERATE AT MEANINGFULLY LOWER PROFIT MARGINS THAN THEIR MAIN COMPETITORS, PROGRESSIVE AND UNION PACIFIC? CAN WE EXPECT CURRENT MANAGEMENT TO ACHIEVE PARITY? >> GEICO AND -- >> BNSF. >> OH, ACTUALLY IF YOU LOOK AT THE FIRST QUARTER FIGURES YOU'LL SEE THAT THE BERKSHIRE HATHAWAY UNION PACIFIC PERSON HAS GOTTEN BETTER. K.T. FARMER IS DOING AN INCREDIBLE JOB AT BNSF. BE AN INTERESTING QUESTION WHETHER FIVE YEARS FROM NOW OR 15 YEARS FROM NOW BNSF OR UNION PACIFIC HAS HAD HIGHER EARNINGS. WE'VE HAD HIGHER EARNINGS IN THE PAST. THE FIRST QUARTER YOU CAN LOOK AT AND, YOU KNOW, THEY THINK THEY'VE GOT A SLIGHTLY BETTER FRANCHISE. WE THINK WE'VE GOT A SLIGHTLY BETTER FRANCHISE. WE'RE LARGER THAN UNION PACIFIC. WE SHOULD. WE SHOULD MAKE A LITTLE MORE MONEY THAN WE DID BUT WE HAVEN'T THE LAST FEW YEARS. IT'S QUITE A RARE ROAD. I FEEL PRETTY GOOD ABOUT THAT. I SHOULD GO BACK TO THE PREVIOUS QUESTION. PEOPLE TALK ABOUT THE AGING CULTURE. I ASSUME THEY'RE TALKING ABOUT CHARLIE. I WOULD LIKE TO POINT OUT IN THREE MORE YEARS CHARLIE WILL BE AGING AT 1% A YEAR AND HE IS THE -- NO ONE'S AGING LESS THAN CHARLIE. IF YOU COULD TAKE SOME OF THESE NEW COMPANIES WITH 25-YEAR-OLDS, THEY'RE AGING AT 4% A YEAR. WE WILL HAVE THE SLOWEST AGING MANAGEMENT PERCENTAGEWISE BY FAR THAN ANY CORPORATE COMPANY -- ANY AMERICAN COMPANY HAS. >> DID YOU WANT TO TALK ABOUT GEICO VERSUS PROGRESSIVE? I HAVE A LOT OF QUESTIONS ON THAT PROGRESSIVE HAS HAD THE BEST OPERATION IN THE LAST -- IN RECENT YEARS IN TERMS OF MATCHING RATE TO RISK. THAT'S WHAT INSURANCE IS ALL ABOUT, AMONG OTHER THINGS. YOU HAVE TO HAVE THE RIGHT RATE. IF YOU THINK 90-YEAR-OLDS AND 20-YEAR-OLDS HAVE AN EQUAL CHANCE OF DYING, YOU'RE GOING TO BE OUT OF BUSINESS VERY QUICKLY, THE LIFE INSURANCE BUSINESS. YOU WILL GET ALL OF THE 90-YEAR-OLD RISKS AND THE OTHER GUY WILL GET ALL OF THE AUTO INSURANCE. THERE'S A DIFFERENCE BETWEEN 60-YEAR-OLD MALES AND 40-YEAR-OLD MARRIED, EMPLOYED PEOPLE. SO THE COMPANIES THAT DO THE BEST JOB OF ACTUALLY HAVING THE APPROPRIATE RATE FOR EVERY ONE OF THEIR POLICYHOLDERS IS GOING TO DO VERY WELL. PROGRESSIVE HAS DONE A VERY GOOD JOB AT THAT. WE'RE DOING A MUCH BETTER JOB ON THAT ALREADY. TODD COMBS HAS GONE THERE. VERY INTERESTING BUSINESS. BOTH PROGRESSIVE AND GEICO WERE STARTED IN THE 30s. WE HAVE HAD THE BETTER PRODUCT FOR A LONG, LONG TIME IN TERMS OF COST AND HERE WE ARE 85 YEARS LATER IN OUR CASE AND WE HAVE ABOUT 13% OR SO IN THE MARKET, THE TWO ARE AT 25% IN THE MARKET. THE HUGE MARKET AFTER 87 YEARS OF HAVING A BETTER PRODUCT, SO IT'S A VERY SLOW CHANGING COMPETITIVE SITUATION BUT PROGRESSIVE HAS DONE A VERY, VERY GOOD JOB RECENTLY. WE'VE DONE A VERY GOOD JOB OVER THE YEARS. WE HAVE MADE SOME ARE VERY SIGNIFICANT IMPROVEMENT. OUR PROFITABILITY IN THE FIRST QUARTER WAS GOOD. BUT WE GAVE BACK MORE MONEY UNDER OUR GIVEBACK ARRANGEMENT WHEN THE VIRUS BROKE OUT, 2.8 BILLION ON THE GIVEBACK PROGRAM THAT WAS LARGER THAN ANY COMPANY AS WELL. ONE OF THE LARGEST, I THINK, IN THE COUNTRY. AND GEICO AND PROGRESSIVE ARE BOTH GOING TO DO VERY WELL IN THE FUTURE. UNION PACIFIC AND BNSF ARE GOING TO DO WELL IN THE FUTURE. IN EACH CASE WE WANT TO DO BETTER THAN THE OTHER GUY. >> CAN I JUST -- >> YEAH. >> THERE'S NO QUESTION PROGRESSIVE IS A MACHINE. THEY ARE VERY GOOD AT WHAT THEY DO. UNDERWRITING IN TERMS OF WHAT WARREN TALKED ABOUT. HAVING SAID THAT, I THINK GEICO IS CATCHING UP WITH PROGRESSIVE. MORE THAN A YEAR AGO -- ABOUT A YEAR AGO PROGRESSIVE HAD MARGINS ALMOST TWICE AS MUCH AS GEICO. GROWTH RATES TWICE AS MUCH AS GEICOS. IF YOU LOOK AT IT NOW, PROGRESSIVE IS CRUSHING IT IN TERMS OF GROWTH. GEICO HAS CAUGHT UP WITH PROGRESSIVE IN TERMS OF MARGIN. HOPEFULLY THAT GAP WILL BE NONEXISTENT. >> THE SECOND I WANT TO TALK ABOUT IS THE VALUE. THEY HAVE WOKEN UP TO THE FACT THAT TELEMATICS HAS PLAYED A BIG ROLE. THEY HAVE A NUMBER OF INITIATIVES AND HOPEFULLY WILL SEE THE LIGHT OF DAY BEFORE NOT TOO LONG AND WILL ALLOW THEM TO CATCH UP. >> I WILL PREDICT THAT FIVE YEARS FROM NOW STATE FARM IS STILL THE LARGEST AUTO INSURER. I WILL PREDICT THAT FIVE YEARS FROM NOW IT'S VERY LIKELY THAT THE TOP TWO WILL BE GEICO AND PROGRESSIVE AND IN WHICH ORDER WE'LL SEE, BUT BOTH COMPANIES ARE GOING TO DO VERY WELL IN MY GEICO'S DONE EXTREMELY WELL BUT PROGRESSIVE WAS BETTER AT SETTING THE RIGHT RATE AND WE'RE CATCHING UP, I THINK FAIRLY FAST. >> EXCUSE ME. PROGRESSIVE HAS DONE BETTER BUT WHEN IT COMES TO BRANDING, GEICO, I THINK, IS MILES AHEAD OF PROGRESSIVE AND IN TERMS OF MANAGING EXPENSES, I THINK GEICO DOES A MUCH BETTER JONATHAN ANYONE ELSE IN THE INDUSTRY. >>> THIS QUESTION COMES FROM AGRIRCI FROM SWEATSHIRTSERLAND. DID BERKSHIRE SELL SOME OF THE DEMONSTRATE STOCKS? WHY DIDN'T BERKSHIRE BUY MORE APPLE STOCKS IN 2020? THIS SEEMS TO BE COUNTERINTU ACTIVE. >>> WE HAVE 5.3% OR SOMETHING RIGHT NOW. WE PAT IN OUR SHARES WHICH HELPS OUR OWN SHAREHOLDERS EXPAND THEIR INTEREST IN APPLE WITHOUT LAYING OUT A PENNY AND APPLE JUST ANNOUNCED ANOTHER REPURCHASE PROGRAM, SO LET'S SAY TSH WE LOOK AT APPLE, THE BUSINESS THAT WE OWN, 5.3%. WE'VE GOT -- IT'S A MARKETABLE SECURITY, SO IT SHOWS UP AS WAY GREATER THAT ANY OTHER MARKETABLE SECURITY WE HAVE, BUT OF COURSE, IF YOU LOOK AT OUR RAILROAD, AND WE MENTIONED -- WELL YUP PACIFIC IS SELLING FOR ABOUT 150 BILLION IN THE MARK. WE TOOK ONE THAT TOOK LARGER THAN UNION PACIFIC AND MAKING IT LESS MONEY, BUT NOT MUCH LESS. SO IT'S A -- IT'S AN EXTRAORDINARILY APPLE -- IT'S GOT -- GOT A FANTASTIC -- HE WAS UNDER APPRECIATED FOR A WHILE. I'VE SEEN A LOT OF MANAGERS, HE'S ONE OF THE BEST. HE'S GOT A PRODUCT THAT PEOPLE ABSOLUTELY LOVE. THERE'S A SOLID BASE OF PEOPLE AND THE DISSATISFACTION RATES OF 99% AND I GET THE FIGURES FROM FURNITURE MART AS TO WHAT'S BEING SOLD. IF PEOPLE COME IN THEY WANT ANDROID PHONE. IF THEY WANT AN APPLE, YOU CAN'T -- THE BRAND AND THE PRODUCT, IT'S AN INBREBL PRODUCT, A HUMAN, HUGE BARGAIN TO PEOPLE. THE PART IT PLAYS IN THEIR LIVES IS HUGE. I USE IT AS A PHONE. I'M THE ONLY PERSON IN THE COUNTRY, MAYBE ALEXANDER GRAHAM BELL IS DOING THE SAME THING, BUT IT IS INDISPENSABLE TO PEOPLE, AND IT COSTS -- COSTS $35,000 AND I'M SURE SOME PEOPLE WILL BE ASKING IF THEY HAD TO GIVE UP THEIR APPLE OR GIVE UP THE CAR, YOU KNOW, AND REALLY MAKE THE CHOICE FOR THE NEXT FIVE YEARS. WHO KNOWS WHAT THEY DO? BUT IT IS -- AND WE GOT A CHANCE TO BUY IT AND I SOLD SOME STOCK LAST YEAR, ALTHOUGH OUR SHAREHOLDERS HAD THEIR PERCENTAGE GO UP BECAUSE WE REPURCHASED SHARE. BUT THAT WAS PROBABLY A MISTAKE. IN FACT, CHARLIE IN HIS USUAL LOW-KEY WAY LET ME KNOW THAT HE THOUGHT IT WAS A MISTAKE, TOO, DIDN'T YOU CHARLIE? >> YES. >> I COULD ONLY DO SO MANY THINGS THAT I CAN GET AWAY WITH CHARLIE AND I KIND OF USED THEM UP BETWEEN COSTCO AND APPLE. SO -- AND VERY LIKELY WAS RIGHT IN BOTH CIRCUMSTANCES. IT'S AN EXTRAORDINARY BUSINESS. BUT I DO WANT TO EMPHASIZE THAT IN ITS OWN WAY, IT'S A DIFFERENT WAY, BUT TEN FOCUS -- WE SEE A LOT OF MANAGERS OF A LOT OF BUSINESSES AND YOU'RE LOOKING AT TWO GREAT ONES ON BOTH ENDS HERE. HE'S HANDLED THAT BUSINESS SO WELL. HE COULDN'T DO WHAT STEVE JOBS OBVIOUSLY COULD DO IN TERMS OF CREATION. BUT I DON'T -- BUT STEVE JOBS COULDN'T REALLY, I DON'T THINK, DO WHAT TIM COOK WAS DONE IN MANY RESPECTS. >> I ALSO THINK IT'S CLEAR THAT THAT LIST YOU SHOWED OF THE AMERICAN COMPANIES, IT'S BEEN VERY IMPORTANT FOR AMERICA THAT WE'VE DONE SO WELL IN THIS NEW TECH FIELD AND I PERSONALLY WOULD NOT LIKE TO SEE OUR PRESENT GIANTS BROUGHT DOWN TO SOME LOW LEVEL BY SOME REASONINGS. I DON'T THINK THEY'RE DOING A LOT OF HARM, ANYWAY, A COMPETITIVE ONE. I THINK THERE'S A CREDIT TO AMERICANS, CREDIT TO OUR CIVILIZATION. AND THEY'RE HUGE. AND THEY'RE HUGE, AND THAT'S GOOD FOR US. >> WELL, LET ME ASK A FOLLOW-UP QUESTION. THIS COMES FROM JACK ZANE WHO SAYS WHAT'S YOUR MIND SET WHEN YOU SEE THESE HIGH FLYERS. THE BIG TECH GROWTH STOCKS, 200% ETC. IN A MATTER OF OR LESS. HOW DO YOU ASSESS IF THESE HIGH FLYERS ARE CAPABLE OF INVESTMENT? >> WE DON'T THINK THEY'RE CRAZY. BUT WE DON'T -- AT LEAST CHARLIE -- I FEEL THAT I UNDERSTAND APPLE AND IT'S FUTCH WITH CONSUMERS AROUND THE WORLD BETTER THAN I UNDERSTAND SOME OF THE OTHERS, BUT I DON'T REGARD PRICES AND THAT GETS BACK -- WELL, IT GETS BACK TO SOMETHING FUNDAMENTAL AS INVESTMENTS. I MEAN, INTEREST RATES, YOU KNOW, BASICALLY ARE TO THE VALUE OF ASSETS WHAT GRAVITY IS TO MATTER, ESSENTIALLY, AND ON THE WAY OUT HERE, I TORE OUT A LITTLE CLIPPING FROM THE WALL STREET JOURNAL YESTERDAY. PROBABLY THE ONLY ONE READ IT, SO SMALL, HAVE TROUBLE FINDING IT. BUT ANYWAY, ON THURSDAY, THE U.S. PRESSURERY SOLD SOME EIGHT -- SOME FOUR WEEK NOTES TREASURE BILLS AND THE PRICE WAS -- IF YOU LOOKED AT THE WALL STREET JOURNAL IN A LITTLE CORNER NEXT TO THE LAST PAGE IN MY PAPER, IN THE VERY BOTTOM CORNER, THEY -- HERE IT IS. THE RESULTS OF THE TREASURY AUCTION. LITTLE TINY THING. THEY SOLD FOUR -- THEY HAD APPLICATIONS ON THE FOUR WEEK TREASURY BILLS FOR A HUNDRED AND SOME BILLION. THEY ACCEPTED BIDS FOR 40 -- 43 BILLION WORTH, AND IT SAYS AVERAGE -- AVERAGE PRICE, 100.000000. SIX ZEROS. AND ESSENTIALLY, PEOPLE WERE GIVING 40-SOME BILLION TO THE TREASURY AND THEY OFFERED 30 BILLION, WHATEVER THE AMOUNT WAS. THE TREASURY RECEIVED THE MONEY AT ZERO AND JANET YELLEN HAS TALKED A COUPLE OF TIMES ABOUT THE REDUCED CARRYING COST OF THE DEBT. I THINK IN THE LAST FISCAL QUARTER, U.S. TREASURY, WHICH U.S. GOVERNMENT WHICH HOLDS A FEW BILLION -- A FEW TRILLION DOLLARS THAN A YEAR AGO. THE EXPENSE WAS DOWN 8%, SO YOU HAD THIS INCREDIBLE REDUCTION IN THE SO-CALLED SUPER RISK-FREE GROUP, THE SHORT-TERM TREASURY BILL, AND THAT IS THE YARD STICK AGAINST WHICH OTHER VALUES ARE MEASURED. I MEAN, IF I COULD REDUCE GRAVITY, IGRAVITY'S PULL BY ABOT 80%, I'D BE IN THE TOKYO OLYMPICS JUMPING. ESSENTIALLY IF INTEREST RATES WERE 10% VALUATIONS, THIS INCREDIBLE CHANGE IN THE VALUATION OF EVERYTHING THAT PRODUCES MONEY, BECAUSE THE RISK FREE RATE PRODUCES REALLY SHORT ENOUGH. RIGHT NOW, NOTHING. VERY INTERESTING. I BROUGHT THIS BOOK ALONG, BECAUSE FOR 25 OR MORE YEARS, PAUL SANDALSON'S BOOK WAS THE DEFINITIVE BOOK ON ECONOMICS. IT'S TAUGHT IN EVERY SCHOOL. AND PAUL WAS THE FIRST -- HE WAS THE FIRST NOBEL PRIZE WINNER. IT'S SORTS OF A COUSIN TO THE NOBEL PRICE. THEY STARTED GIVING IT TO ECONOMICS IN THE EARLY 60s. PAUL SAMUELSSON. AMAZINGLY ENOUGH, THE SECOND WINNER THAT IS KEN ARROW AND BOTH OF THEM ARE THE UNCLES OF LARRY SOMERS. HE HAS THE FIRST TWO AS UNCLES. PAUL WAS A WONDERFUL GUY, A WONDERFUL WRITER, THE DEFINITIVE WRITER, AND SO I GOT OUT TO '73 ECONOMICS BOOK AND BEAR IN MIND ECONOMICS STARTED AS KIND OF AN INTERESTING SCIENCE. ADAM SMITH WROTE THE WEALTH OF NATIONS IN 1776, SOME BOOKS, BUT SORT OF DATE IT FROM KIND OF WHAT OUR COUNTRY STARTED AND YOU HAVE ALL THESE GREAT ECONOMISTS. I LOOKED UP IN THE BACK UNDER INTEREST RATES, I LOOKED FOR NEGATIVE INTEREST RATES. THERE'S NOTHING THERE. SO I FINALLY FOUND ZERO INTEREST RATES AND PAUL SAMUELSSON, BRILLIANT MAN, AFTER A COUPLE HUNDRED YEARS WE'VE HAD OF STUDYING ECONOMICS, BASICALLY, HE SAID THAT -- HE SAID YOU CAN CONCEIVABLY, TECHNICALLY, YOU CAN COP SIEVE PERHAPS OF NEGATIVE INTEREST RATES, BUT IT CAN'T EVER REALLY HAPPEN. AND THAT WAS IN THE 1970s. THIS WASN'T IN DARK AGES. NO ECONOMIST ROLLED UP AND SAID THIS IS A TERRIBLE LINE. AND HERE WE ARE IN THIS WORLD WHERE WE HAD ZERO INTEREST RATES LAST YEAR -- I MEAN LAST WEEK -- OR THIS WEEK OUT OF FOUR WEEK NOTE, AND BERKSHIRE HATHAWAY WHICH HAS MORE THAN THIS BUT LET'S SAY WE HAD A HUNDRED BILLION IN TREASURY BILLS. WE HAVE MORE THAN THAT. BEFORE THE EPIDEMIC -- PANDEMIC, WE WERE GETTING ABOUT A BILLION AND A HALF FROM THAT A YEAR. AT PRESENT RATES, IF IT'S TWO BASIS POINTS, WE'D GET 20 MILLION. IMAGINE YOUR WAGES GOING FROM $15 TO $1.20 AN HOUR. IT'S BEEN A SEA CHANGE. IT WAS DESIGNED TO BE THAT. THAT'S WHY THE FED MOVED THE WAY THEY DID. THEY WANTED TO GIVE A MASSIVE PUSH LIKE MARIO DRAGGY DID IN EUROPE. HE SPED WHATEVER IT TAKES AND THEY WENT TO NEGATIVE RATES, AND WE -- FAIR TOO SAY DIDN'T WANT TO GO TO NEGATIVE RATES. BUT IF PRESENT RATES WERE DESTINED TO BE APPROPRIATE, TEN-YEAR SHOULD REALLY BE AT THE PRICE IT IS, THOSE COMPANIES THAT WAS MENTIONED IN THIS QUESTION, THEY'RE -- THEY HAVE THE ABILITY TO DELIVER CASH AT A RATE THAT'S IF YOU DISCOUNT IT BACK AND YOU'RE DISCOUNTING AT PRESENT INTEREST RATES, STOCKS ARE VERY, VERY CHEAP. NOW THE QUESTION IS WHAT INTEREST RATES DO OVER TIME. BUT THERE'S A VIEW OF WHAT THE RATES WILL BE BASED ON YIELD OUT 30 YEARS AND SO ON. IT'S A FASCINATING TIME. WE'VE NEVER REALLY SEEN WHAT SHOVELING MONEY IN ON THE BASIS THAT WE'RE DOING IT ON A FISCAL BASIS WHILE FOLLOWING A MONETARY POLICY IN THE CLOSE ZERO INTEREST RATES AND IT IS ENORMOUSLY PLEASANT. BUT IN ECONOMICS THERE'S ONE THING ALWAYS. YOU CAN NEVER DO ONE THING. YOU ALWAYS HAVE TO SAY AND THEN WHAT. AND WE'RE SENDING OUT HUGE SUMS, I MEAN, PRESIDENT SEND ON 85% ARE GOING TO GET A CHECK. COUPLE OF YEARS AGO WE WERE SAYING 40% COULD NEVER COME UP WITH $400 OF CASH. WE'VE GOT 85% OF THE PEOPLE GETTING THOSE SUMS AND SO FAR WE'VE HAD NO PLEASANT CONSEQUENCES ABOUT IT. PEOPLE WHO GET THE MONEY FEEL BETTER AND PEOPLE WHO ARE LENDING MONEY DOESN'T. IT CAUSES AN ELECTRIC TO BE HAPPY AND WE'LL SEE IF IT CAUSES ANYTHING ELSE. AND IF IT DOESN'T CAUSE ANYTHING ELSE, YOU CAN COUNT ON IT CONTINUING IN A VERY BIG WAY. BUT THERE ARE CONSEQENCES TO EVERYTHING IN ECONOMICS. THAT IS -- THAT IS WHY THE APPLES WHEN WE OPEN MICROSOFT, BUT THEY ARE INCREDIBLE COMPANIES IN WHAT THEY EARN ON CAPITAL. THEY DON'T REQUIRE A LOT OF CAPITAL AND THEY GUSH OUT MORE MONEY, AND IF YOU'RE TRYING TO POINT BONDS THAT GUSH OUT MORE MONEY FROM THE FEDERAL GOVERNMENT, WE GOT A HUNDRED BILLION. LIKE 30 OR $40 MILLION A YEAR, WHATEVER IT MAY BE, DEPENDING ON THE SHORT-TERM INTEREST RATE. WHICH PUT THE PRESSURE ON, WHICH IS EXACTLY WHAT THE AUTHORITIES WANT. I MEAN, THAT'S -- THEY ARE PUSHING THE ECONOMY IN A -- AND THEY'RE DOING IT IN EUROPE, EVEN MORE EXTREME, AND THEY'RE PUSHING IT AND WE'RE AIDING IT WITH FISCAL POLICY. PEOPLE HAVE BECOME NUMB TO NUMBERS. TRILLIONS DON'T MEAN ANYTHING TO ANYBODY. AND $1400 DOES MEAN SOMETHING TO THEM. WE'LL SEE WHERE IT ALL LEADS, BUT CHARLIE AND I CONSIDER THE MOST INTERESTING MOVIE BY FAR WE'VE EVER SEEN IN TERMS OF ECONOMICS. >> YES, AND THE PROFESSIONAL ECONOMISTS ARE VERY SURPRISED BY WHAT'S HAPPENED. IT REMINDS ME OF WHAT CHURCHILL SAID. HE SAID HE WAS A MODEST MAN AND A GREAT DEAL MODEST ABOUT AND THAT'S EXACTLY WHAT'S HAPPENING WITH THE ECONOMISTS. THEY'RE SO COMMON ON EVERYTHING TURNS OUT THE WORLD IS MORE COMPLICATED THAN THEY THOUGHT. >> AS A FOLLOW-UP TO THAT, WHAT'S YOUR OPINION ABOUT THE ECONOMIC THEORY MMT, ESPECIALLY THE UNITED STATES BECAUSE IT'S THE RESERVE KURPSY OF THE WORLD. >> I THINK THE MONETARY THEY'RE LISTS ARE MORE CONFIDENT THAN THEY NEED TO BE. I DON'T THINK ANYBODY OF US KNOW WHAT'S GOING TO HAPPEN. I DO THINK THERE'S A GOOD CHANCE THAT THERE'S EXTREME CONDUCT IS MORE FEASIBLE THAN EVERYBODY THOUGHT. I KNOW IF YOU KEEP DOING IT WITHOUT ANY LIMIT, IT WILL END IN DISASTER. >> UNRELATED QUESTION, AL CANDLE WROTE IN ON THIS TOO AND SAID IF YOU CAN BORROW MONEY FOR A LOW INTEREST RATE, IS IT STILL WORTH BORROWING THAT MONEY? >> IT REDUCES THE VALUE BY A SUBSTANTIAL AMOUNT, AND WE HAVE THE FLEXIBILITY THAT VIRTUALLY NO ONE HAS. I'VE WRITTEN ABOUT THIS IN THE ANNUAL LETTER, BUT THE -- THE VALUE HAS GONE DOWN DRAMATICALLY, BECAUSE EVERYTHING IS -- EVERYTHING IS OFF OF INTEREST RATES,S AND WHEN YOU GET TO NEGATIVE INTEREST RATES, THE COUNTRY CAN BORROW NEGATIVE INTEREST RATES, YOU GET SOMETHING ABOUT THE ST. PETERSBURG PARADOX. THOSE OF YOU WHO WANT TO GO TO CHURCH. IT'S A CRAZY GLIMPSE OF A BUNCH OF ABSTRACT MATHEMATICS FOR YOU TO GET THERE, BUT YOU'LL LOSE GRAVITY ENTIRELY AND YOU KNOW, IF YOU TELL ME THAT THAT I'M GOING TO HAVE TO LEND MONEY FOR THE GOVERNMENT AT MINUS 2% A YEAR AND I'M TALKING PHENOMENAL FIGURES, NOT -- YOU KNOW, YOU'RE TALKING HOW I'LL GO BROKE OVER TIME. IF I DO THAT. SO IT PUSHES YOU TO DO OTHER THINGS, AND OF COURSE WE'VE SEEN IT. WE SAW THE ROAST OF THE WORLD DO IT IN MORE EXTREME FASHION, BUT NOBODY, SAMUELSSON, BRILLIANT MAN. NOBODY THOUGHT YOU COULD DO THIS. WE DON'T REALLY KNOW WHAT THE CONSEQUENCES ARE BUT WE KNOW THERE ARE CONSEQUENCES OBVIOUSLY. >> THIS QUESTION COMES FROM SAM BUTLER AND IT SAYS HE'S BEEN A SHAREHOLDER FOR MANY YEARS AND ASKS WHAT DOES THE IMPACT OF THE LIVES OF SO MANY NEW SPACS TO FIND AND CLOSE NEW OPPOSITIONS. >> WELL, IT'S A KILLER. THE SPACS GENERALLY HAVE TO SPEND THEIR MONEY IN TWO YEARS, AS I UNDERSTAND IT. IF YOU HAVE TO BUY A BUSINESS IN TWO YEARS, YOU PUT A GUN TO MY HEAD AND SAID YOU GOT TO BUY A BUSINESS IN TWO YEARS, I'D BUY ONE BUT IT WOULDN'T BE MUCH OF ONE. WE LOOKED AND LOOKED AND NOW THERE ARE -- I DON'T KNOW HOW MANY. THERE'S HUNDREDS -- THERE'S ALWAYS BEEN THE PRESSURE FROM PRIVATE EQUITY FUNDS. IF YOU'RE RUNNING MONEY FOR SOMEBODY ELSE AND YOU GET A FEE AND YOU GET THE UP SIDE AND YOU DON'T HAVE THE DOWN SIDE, YOU GOT TO BUY SOMETHING. I COULD TELL YOU, BUT I HAD A VERY FAMOUS -- I HAD A CALL FROM A VERY FAMOUS FIGURE MANY YEARS AGO THAT WAS INVOLVED IN AND WONDERED ABOUT REINSURANCE. I SAID I DON'T THINK IT'S A VERY GOOD BUSINESS. HE SAID, YEAH, THE MONEY IN SIX MONTHS AND I HAVE TO GIVE IT BACK TO THE VERSE. IT'S A DIFFERENT EQUATION WHERE YOU WORK WITH OTHER PEOPLE'S MONEY WHERE YOU GET THE UP SIDE AND YOU HAVE TO GIVE IT BACK TO THEM IF NOTHING -- THAT WILL GO ON FOREVER. IT'S WHERE THE MONEY IS NOW AND WALL STREET GOES WHERE THE MONEY IS AND IT DOES ANYTHING, BASICALLY, THAT -- THE WORKS, AND SPACS HAVE BEEN WORKING FOR A WHILE AND YOU SEEK STICK A FAMOUS NAME ON IT, YOU CAN SELL ALMOST ANYTHING, AND I GUESS -- ICE AN EXAGGERATED VERSION OF WHAT WE'VE SEEN IN KIND OF -- WELL, GAMBLING DONE TYPE MARKET. I DID HAVE A COLT FROM KANES THAT WE MIGHT PUT UP ON THE -- LET'S SEE IF I'VE GOT -- YEAH. THIS IS PROBABLY THE MOST -- ONE OF THE MOST FAMOUS QUOTES IN HISTORY. BECAUSE IT REALLY SUMS UP THE PROBLEM OF THE FACT WE'VE GOT THE GREATEST MARKETS THE WORLD COULD EVER IMAGINE. IMAGINE BEING ABLE TO OWN PARTS OF THE BIGGEST BUSINESSES IN THE WORLD AND PUTTING BILLIONS OF DOLLARS AND TAKE IT OUT, YOU KNOW, TWO DAYS LATER. I MEAN, COMPARED TO FARMS OR APARTMENT HOUSES OR OFFICE BUILDINGS WHERE IT TAKES MONTHS TO CLOSE A DEAL, THE MARKETS OFF A CHANCE TO PARTICIPATE IN INVEST -- IN EARNING ASSETS ON A BASIS THAT'S VERY, VERY LOW COST. INSTANTANEOUS, HUGE, ALL KINDS OF GOOD THINGS. IT MAKES IT REAL MONEY IF THEY CAN GET THE GAMBLERS TO COME IN. THEY'RE WILLING TO TAKE MORE ACTION. YOU HAVE THIS INCREDIBLE, HUGE ASSET TO HUMANITY BUT IT REALLY MAKES US MONEY WHEN PEOPLE ARE DOING STUPID THINGS. THAT'S WHERE THE MONEY REALLY IS. GAINES WROTE THIS IN 1936. IT SAYS IS 39 ON THE SLIDE BUT HE WROTE IT IN 1936. SPECULATORS, MANY DO NO HARM AS BUBBLES ON THE STEADY STREAM OF ENTERPRISE BUT THE POSITION IS SERIOUS WHEN ENTERPRISE BECOMES THE BUBBLE ON SPECULATION. WHEN THE CAPITAL DEVELOPMENT OF THE COUNTRY BECOMES A BYPRODUCT OF THE TIFS OF A CASINO, THE JOB IS LIKELY TO BE ILL DONE. WE'VE HAD A LOT OF PEOPLE IN THE CASINO, THE LAST YEAR. MILLIONS AND MILLIONS OF PEOPLE HAVE SET UP ACCOUNTS WHERE THEY'RE DAY TRADING, PUTS AND CALLS, AND I'D SAY YOU HAVE THE GREATEST INCREASE IN THE NUMBER OF GAMBLERS, ESSENTIALLY, THAT -- AND THERE'S NOTHING WRONG WITH GAMBLING. THEY GOT BETTER ODDS THAN THEY PLAY THE STATE LOTTERY, BUT THEY'VE HAD CASH IN THEIR POCKET. THEY'VE HAD ACTION, AND THEY ACTUALLY HAVE A LOT OF GOOD RESULTS AND IF THEY JUST BOUGHT STOCKS THEY'D DO FINE, AND HELD THEM, BUT THE GAMBLING IMPULSES IN VERY STRONG IN PEOPLE WORLDWIDE AND OCCASIONALLY IT GETS AN ENORMOUS SHOVE AND CONDITIONS LEAD TO THIS WHERE MORE PEOPLE ARE BUYING. THEY'RE LEAVING EVERY DAY AND THAT CREATES ITS OWN RAEMT FOR A WHILE AND NOBODY TELLS YOU WHEN THE CLOCK IS GOING TO STRIKE MIDNIGHT AND IT ALL TURNS INTO PUMPKINS. WHEN THE COMPETITION IS PLAYING WITH OTHER PEOPLE'S MONEY OR WHETHER THEY'RE -- AND IF THEY'RE PLAYING TOOLISHLY WITH THEIR OWN MONEY BUT THE BIG STUFF IS DONE WITH OTHER PEOPLE'S MONEY. THEY'RE GOING TO BEAT US. WE'RE NOT -- WE'RE NOT -- THAT'S A DIFFERENT GAME AND THEY'VE GOT -- THEY'VE GOT A LOT OF MONEY, SO WE'RE NOT GOING TO HAVE MUCH LUCK ON ACQUISITIONS WHILE IS THIS SORT OF A PERIOD CONTINUES, BUT IT'S HAPPENED BEFORE. THIS IS ABOUT AS EXTREME AS WE'VE SEEN ITS, HASN'T, CHARLIE? I CALL IT FEE DEVELOPMENT. THE ADVISOR GETS A FEE, AND OF COURSE, THE MORE THAT YOU GET, THE SILLIER YOUR CIVILIZATION IS GETTING, AND TO SOME EXTENT IT'S A MORAL FAILING, TOO. BECAUSE THE EASY MONEY MADE BY THINGS LIKE SPACS AND RETURN DERIVATIVES AND SO ON AND SO ON. YOU PUSH THAT TO EXCESS, IT CAUSES HORRIBLE PROBLEMS IN CIVILIZATION AND REFLECTS NO CREDIT ON THE PEOPLE WHO ARE DOING IT AND NO CREDIT ON THE PEOPLE -- THE REGULATORS. I THINK WE HAVE A LOT TO BE ASHIEMD OF IN CURRENT CONDITIONS. BUT IT'S WHERE THE MONEY IS. IT'S SHAMEFUL WHAT'S GOING ON. IT'S NOT JUST STUPID, IT'S SHAMEFUL. IT'S NOT -- I DON'T REGARD IT AS A SHAMEFUL ON A LOT -- THE PEOPLE THAT GAMBLE. I MEAN -- GAMBLING IS A HUMAN INSTINCT AND THEY'VE GOT MONEY IN THEIR POCKET AND THEY KNOW SOMEBODY ELSE THAT'S MADE MONEY THAT THEY DON'T THINK ARE SMARTER THAN THEM. I DON'T LIKE THE PROFESSIONALS THAT TAKE THE SUCKERS. >> ALL RIGHT. MOSHE LAVINE WRITES IN -- HE'S AN AMERICAN LIVING IN ISRAEL. HE SAID IF YOU DEEM STOCK PRICES TO BE OVERVALUED DO YOU THINK I'S BETTER TO HOLD IN CASH OR WOULD IT BE A BETTER IDEA TO INVEST THIS MONEY IN SOME WAY WHILE WAITING FOR STOCK PRICES ARE FAIR AGAIN AND SELL THE INVESTMENT TO BUY THE STOCKS. >> CHARLIE AND I HAVE HAD THAT DISCUSSION ON A LOT OF THINGS. WE BOUGHT SOME STOCKS WE REALLY DON'T KNOW THAT MUCH ABOUT BUT I'M NOT REALLY COMFORTABLE DOING THAT. YOU USED TO SHOOTING FISH IN A BARREL, BUT THAT'S GOTTEN HARDER. WE'VE GOT PROBABLY 10 TO 15% OF OUR TOTAL ASSETS IN CASH BEYOND WHAT I WOULD LIKE TO HAVE JUST AS A WAY OF PROTECTING OUR -- THE OWNERS, THE PEOPLE THAT ARE PARTNERS FROM EVER HAVING -- HAVING US EVER GET IN A PICKLE. WE REALLY RUN BERKSHIRE THAT -- WE DON'T WANT TO LOSE OTHER PEOPLE'S MONEY WHO STICK WITH US FOR YEARS. WE CAN'T HELP IF SOMEBODY BUYS IT TODAY AND SELLS IT TOMORROW. WE'VE GOT A GENE THAT PUSHES US IN THAT DIRECTION. BUT WE'VE GOT PROBABLY 70 OR 80 BILLION, SOMETHING LIKE THAT, MAYBE, THAT WE'D LOVE TO PUT TO WORK. BUT THAT'S 10% OF OUR ASERSETS, ROUGHLY, AND WE PROBABLY WON'T -- WELL, WE WILL GET A CHANCE UNDER THESE CONDITIONS, BUT CONDITIONS CHANGE VERY, VERY, VERY RAPIDLY SOMETIMES IN MARKETS, AND WE DO HAVE PEOPLE THAT WOULD LIKE TO JOIN US, BUT THE MARKET OPTION THEY HAVE IS JUST -- IS TOO GREAT FOR THEM. IF THEY'RE PUBLICLY TRADED, I MEAN, THEY BASICALLY CAN'T -- THEY WOULD HAVE GREAT DIFFICULTY MAKING A DEAL WITH US BECAUSE SOMEBODY ELSE WOULD A COME ALONG USING OTHER PEOPLE'S MONEY. IT'S -- YOU KNOW, WE MAY BE UNHAPPY ABOUT THE 70 BILLION BUT WE'RE VERY HAPPY ABOUT THE OTHER 700 BILLION. IT'S NOT LIKE WE SHOULD COMPLAIN. >> WHEN WE SPOKE AT THE ANNUAL MEETING YOU SAID IT WAS OK IF I ASKED A FOLLOW-UP. >> YEAH. >> YOU SAID YOU BOUGHT A LOT OF STOCKS THAT YOU DON'T KNOW ABOUT. WHAT ARE THEY? >> I WILL NOT GET INTO NAMING THE STOCKS, AND IT MAY BE THAT THERE'S SOME THERE THAT I THINK I DON'T KNOW ABOUT BUT I KNOW ABOUT. CHARLIE AND I, I MEAN, WE KNOW THE BUSINESS JIMMY BUT WE DON'T HAVE ANY INSIGHTS, AND THEY ARE AS A GROUP -- IF I HAD TO -- TOLD ME I WAS GOING TO BE SHOCKED AS I GOT THE BEST RESULT, I'D RATHER OWN THOSE STOCKS THAN THE TREASURY BILLS THAT WE OWN BUT WE WORK WITH QUANTITIES OF MONEY WHERE BE WE PUT 50 BILLION, THINGS I'M KIND OF SOCIAL ABOUT, BUT BETTER THAN TREASURY BILLS. I'M NOT WILDLY COMFORTABLE ABOUT THAT, EVEN THOUGH IT CONCLUDE UNDONE. SELLING 50 BILLION WHEN IT'S REALLY ATTRACTIVE TO BUY SOMETHING ELSE, THERE'S A LOT OF SLIPPAGE THAT'S GOING TO HAPPEN IN MOVING SUMS LIKE THAT AROUND. THAT'S SOMETHING WE TALK ABOUT A LOT OF TIME. THEY'RE GOOD COMPANIES, FINE COMPANIES. BUT DO WE KNOW SOMETHING ABOUT THOSE COMPANIES OR HAVE A WAY OF EVALUATING THAT GIVES US THE EDGE O, THE ANSWER, I THINK -- WHAT DO YOU FEEL ABOUT IT, CHARLIE. WE'VE TALKED ABOUT IT A LOT. OF COURSE, IT'S ALL HARDER. I THINK ONE CONSEQUENCE OF THE PRESENT SITUATION IS THAT BERNIE SANDERS HAS BASICALLY WON AND THAT'S BECAUSE THE -- WITH THE -- EVERYTHING BOOMED UP SO HIGH AND INTEREST RATES SO LOW, WHAT'S GOING TO HAPPEN IS THE MILLENNIAL GENERATION IS GOING TO HAVE A HELL OF A TIME GETTING RATES COMPARED TO OUR GENERATION, SO THE DIFFERENCES BETWEEN THE RICH AND THE POOR IN THE GENERATION THAT'S RISING IS GOING TO BE A LOT LESS. SO BERNIE HAS WON. THEY IT BY ACCIDENT, BUT HE WON. >> ALL RIGHT. THIS QUESTION COMES FROM DENNY POLAND FROM PITTSBURGH. A PROMINENT SENATOR RECENTLY CATEGORIZED SHARE BUY BACKS AS MARKET MA LIP LAS VEGAS. COULD YOU AND CHARLIE PLEASE ELABORATE ON THE HIGHER ORDER EFFECT THAT THE SHARE REPURCHASES HAVE ON SOCIETY? >> THEIR WAY ESSENTIALLY OF DISTRIBUTING CASH TO THE PEOPLE THAT WANT THE CASH WHEN OTHER CO-OWNERS MOSTLY WANT YOU TO REINVEST. IT'S A SAVINGS VEHICLE. IF THE FOUR OF US SITTING AT THIS TABLE DECIDED WE'D FORM A LITTLE CUP P COMPANY AND BUY A FEW FRANCHISES. WE EACH PUT IN A BILLION, SOMETHING LIKE THAT, AND BUY THE FRANCHISE. THREE OF THE FOUR OF US WANT TO KEEP BUYING DWRAR QUEEN FRANCHISES, AND WE'RE IN THE WEALTH CREATION BUSINESS AND THE FOURTH ONE SAYS, I'VE GOTTEN RICH ENOUGH, I'D RATHER TAKE SOME MONEY OUT AND, WELL, THERE'S ONLY TWO WAYS TO DO IT. WE CAN PAY DIVIDENDS ALL FOUR OF US, THREE OF US WHO DON'T WANT IT AND WE CAN REPURCHASE THE SHARE AT A FAIR PRICE, THE FOURTH ONE NATION A FAIR PRICE AND GETS BOUGHT OUT. IT -- I FIND IT ALMOST IMPOSSIBLE TO BELIEVE SOME OF THE ARGUMENTS THAT ARE MADE THAT IT'S TERRIBLE TO DO REPURCHASE SHARES FROM A PARTNER IF THEY WANT TO GET OUT OF SOMETHING AND YOU'RE ABLE TO DO IT AT PRICES ADD ADVANTAGE D VANDAL TABLES. WE HAD A VOTE ON. WE'VE GOT SAVERS. THAT'S PARTLY BECAUSE WE'VE ADVERTISED OURSELVES AS BEING THAT SORT OF A VEHICLE. WE'VE CREATED THAT AND STUCK WITH IT FOR 50-SOMETHING YEARS. A HUGE NUMBER OF PEOPLE LOOK AT BERKSHIRE THAT THEY'RE GOING TO OWN TILL THEY DIE. THE SAVERS GENERALLY KEEP SAVING. WE JUST RECENTLY HAD SOMEBODY THAT FATHER CAME US 60 YEARS AGO AND BILLIONS OF DOLLARS. THEY JUST -- THEY WEREN'T SAVING EXACTLY FOR THEIR OLD AGE. IT'S JUST SORT OF BUILT INTO THEM THAT THEY DO IT. IT'S THE MOST -- WHAT COULD BE MORE LOGICAL THAN IF A VERY SMALL NORTH MINORITY OF YOUR HOLDERS WANT TO GET IN AND THE OTHERS WANT TO STAY IN. YOU GIVE THE MONEY TO THE ONE WHO WANTS IT AND YOU DO IT AT A PRICE THAT IS BENEFICIAL TO MOST PARTIES. ON A PRIVATE DEAL YOU'D WORK OUT THE FAIR VALUE. THE MARKET TELLS YOU THE VALUE IN THE CASE OF A PUBLICLY TRADED COMPANY. CHARLIE, GOT ANY -- >> WELL, I -- WHEN PURCHASING STOCK, JUST A BULLET HIGHER, IT'S DEEPLY IMMORAL, BUT IF YOU'RE REPURCHASING STOCK BECAUSE IT'S A FAIR THING TO DO IN THE INTEREST OF YOUR EXISTING SHAREHOLDERS, IT'S A HIGHLY MORAL ACT AND THE PEOPLE WHO ARE CRITICIZING IT ARE BONKERS. >> OK. THIS COMES FROM GARY GAMBINO. HE WANTS TO KNOW IF BERKSHIRE WOULD SWITCH ITS CAPITAL RETURN POLICY TO DIVIDENDS FROM BUYBACKS IF THE CAPITAL RATES GAIN GOES UP. DIVIDENDS WOULD BE FAR MORE TAXED ADVANTAGE FOR SHARE OLDERS UNDER THAT SCENARIO. >> YEAH. WE HAD A -- WE LITERALLY DID HAVE A VOTE BY SHAREHOLDERS. WE HAVE DIFFERENT SHAREHOLDERS THAN A REIT HAVE. PEOPLE SELECT WHAT THEY GO INTO. PEOPLE GOING INTO SPACS HOPES IT GOES UP NEXT WEEK, BASICALLY. AND WE'VE GOT A BUNCH OF PEOPLE WHO WERE ASSEMBLED OVER 55 YEARS. THEY STARTED WITH A BASE OF PEOPLE THAT IT WAS A LIFETIME INVESTMENT, AND IF THEY WANTED TO CASH OUT, THEY THOUGHT THEY'D GET A FAIR PRICE AT THAT TIME. BUT THEY BOUGHT IT WITH NO INTENTIONS LIKE THAT, SO WE HAD A VOTE AND I FEEL SOMETHING LIKE 97% OR SOMETHING OF THE SHARES THAT -- THEY DON'T WANT A DIFFICULT DENIED. THAT WOULDN'T BE TRUE AT OTHER KMGS. YOU'D BE CRAZY TO PAY A REGULAR EVENT LIKE COCA-COLA HAS DONE MANY YEARS AND THEY ALL OF A SUDDEN CHANGE THE POLICY ON MILLIONS OF PEOPLE WHO BOUGHT IT WITH ONE EXPECTATION IN MIND AND TRY TO CHANGE IT INTO A DIFFERENT ANIMAL. BUT COCA-COLA ISN'T GOING CHANGE TO BERK IRAND BERKSHIRE WON'T CHANGE INTO COCA-COLA. PEOPLE HAVE A CHOICE EVERY DAY WHICH DO YOU WANT -- SORT OF THING YOU WANT TO BE IN. AND BERKSHIRE IS A CERTAIN KIND OF ANIMAL IN THAT RESPECT. >> SO WE WILL NOT -- IF THEY JIG AROUND THE TAX LAWS, THAT'S NOT NOTHING TO DO WITH THE DECISION, WE'VE GOT A VERY SUBSTANTIAL MAJORITY OF PEOPLE THAT WANT US TO REINVEST THE MONEY AND WHAT THEY'RE MORE CONCERNED ABOUT IT, WHETHER WE FIND SOMETHING TO DO WITH THE MONEY AND REPURCHASING SHARES IS SOMETHING THAT HELPS THEM. THEY OWN A LARGER PERCENTAGE OF BERKSHIRE AS THEY GO ALONG. THEY'D LOVE TO SEE US BUY ANOTHER BUSINESS BUT THEY DON'T MIND INTENSIFYING THEIR INTEREST. >> I'LL RUN THROUGH A FEW TAX QUESTIONS. WE'LL SEE HOW MANY OF YOU ANSWER BEFORE WE GET TO THEM. THIS CAME FROM ARTHUR LEWIS IN DENVER. WHAT ARE YOUR THOUGHTS ON CORPORATE TAX AND STEPPED UP BASIS TAX INCREASES? >> WELL, IF CHARLIE WANTS TO ANSWER THAT, I'LL BE GLAD TO HAVE HIM DO IT. I LONG AGO MANY TIMES HAVE SAID THAT I DON'T PUT MY OPINIONS OR ANYTHING IN A BLIND TRUST WHEN I TAKE THIS JOB BUT I ALSO DON'T SPEAK FOR BERKSHIRE HATHAWAY. PEOPLE HAVE DIFFERENT VIEWS ON TAXES. I'VE EXPRESSED SOME THINGS IN THE PAST -- I DON'T LIKE TO SPEAK ON BEHALF WHEN I'M SITTING IN AN ANNUAL MEETING PRESUMY SPEAKING FOR BERKSHIRE, I DON'T REALLY LIKE TO GET INTO POLITICAL QUESTIONS. I DON'T THINK I SHOULD. I ALSO THINK SOMEBODY ASKED ME WHO I VOTED FOR, PEOPLE BUY IT BUT I'VE NEVER ASKED A SINGLE EMPLOYEE OF OURS WHO THEY VOTED FOR, ANYTHING OF THE KIND, AND I AM NOT AUTHORIZED TO GO AROUND SIGNING MY NAME AS CHAIRMAN OF BERKSHIRE HATHAWAY. THAT -- PROPOSALS. IF I WRITE OP ED PIECES, I DO IT AS AN INDIVIDUAL. I TROO TO MAKE IT CLEAR, BECAUSE I WOULDN'T WANT TO USE THE MEETING TO GET A LOT ON TAXES. CHARLIE. >> NO, BUT I THINK IT'S PROBABLY A MISTAKE TO BE BASICALLY ANY CAPITALIST, I THINK CAPITALISM IS WHAT RAISES GDP FOR EVERYBODY, AND SO -- AND I HAVE ALSO A FEELING THAT -- SOMEBODY WAS RIGHT WHEN HE SAID IT'S HARD FOR AN EMPTY SACK TO STAND UPRIGHT. IN SOME RESPECT IT HELPS THEM BEHAVE BETTER. NOW, THERE ARE EXCEPTIONS. AND PROMOTIONAL FINANCE IS THE ONE. BY AND LARGE, FRANKLIN WAS RIGHT. SO I'M A LITTLE WARY OF JUST CONSTANTLY BEING MAD AT PEOPLE BECAUSE THEY HAVE MORE MONEY. >> CHARLIE, THERE WAS A QUESTION THAT CAME IN SPECIFICALLY TO YOU ON TAX ISSUE. OVER THE YEARS AND WITH EMPHASIS IN 2020 WE'VE HEARD PEOPLE LEAVING CALIFORNIA FOR VARIOUS REASONS. I UNDERSTAND YOU BELIEVE IT'S DUMB FOR STATES TO HAVE POLICIES AND LAWS THAT PROMOTE RICH RESIDENTS LEAVING. WHAT ARE YOUR THOUGHTS ON THOSE PEOPLE LEAVING. WHAT KEEPS YOU IN CALIFORNIA? >> THAT'S A INTERESTING QUESTION. I HAD ONE SAID I WOULDN'T MOVE ACROSS THE STREET TO DO THE TAXES. THAT'S MY PERMANENT VIEW ON THE SUBJECT. BUT I DO THINK IT'S SAFER FOR STATES TO DRIVE OUT THEIR WEALTHIEST CITIZENS. THE OLD PEOPLE DON'T COMMIT CRIMES, THEY DON'T PLEDGE TO THE LOCAL CHARITY. WHO IN THE HELL IN THEIR RIGHT MAP WOULD DRIVE OUT THE RICH PEOPLE. FLORIDA AND PLACES LINING THAT ARE SHREWD AND PLACES LIKE CALIFORNIA ARE BEING VERY STUPID. IT'S CONTRARY TO THE INTEREST OF THE STATE. >> JACK ROB IPS ASKS, HOW WILL THE TAX RATE AFFECT BERKSHIRE COMPANIES? >> WELL, I DON'T THINK IT WOULD BE THE END OF THE WORLD. WE'LL ADAPT TO THE INTEREST RATE, WHATEVER IT IS. >> I WOULD SAY IF THEY RAISE THE TAX RATE, THEY'RE OWNING -- THE FEDERAL GOVERNMENT'S OPENING A LARGER PERCENTAGE OF BUSINESS. I'M NOT SAYING WHAT THE TAX RATE IS BUT WE HAVE A CLASS A STOCK AND A CLASS B STOCK. THE ENGLISH GOVERNMENT OWNS WHAT I CALL THE CLASS AA STOCK. THEY GET A PERCENTAGE OF THE EARNINGS BUT THEY DON'T OWN THE ASSETS AND DON'T VOTE ON WHO RUBS THE PLACE OR ANYTHING ELSE. BUT IF THE GOVERNMENT WANTS TO START -- WHEN I STARTED WITH 52% THE GOVERNMENT DID FOR CORPORATE PROFITS, AND THEY'VE GOT -- WHAT WOULD YOU PAY TO OWN THE GOVERNMENT'S CLASS A DOUBLE-A STOCK? IF THERE WAS A PUBLIC ISSUE BY THE U.S. TREASURY AND THEY SAID THIS VEHICLE, GIVEN A NAME LIKE SPAC OR SOMETHING, EVEN SEXIER, BUT ALL IT WILL DO IS IT OWNS THE FUTURE TAX PAYMENTS OF BERKSHIRE HATHAWAY FOREVER. AND HOW MUCH IS THAT STOCK NOW WORTH? IF IT WILL PAY A BIG CASH DIVIDEND. IT'S WORTH MORE IF IT'S -- IF THE TAX RATE IS 25% OR 28% OR 52% OR 21%. THEY OWN A SPECIAL STOCK AND WHEN PEOPLE TALK ABOUT PASSING THROUGH TO THE CUSTOMER, IN THE KMRG BUSINESS IT DOES BUT IT DOESN'T IN MOST OF OUR BUSINESSES. IT'S A CORPORATE FICTION WHEN THEY PUT OUT SEGMENTS ABOUT THE FACT THAT THIS WILL BE TERRIBLE FOR ALL OF YOU PEOPLE WHO PAY MORE TAXES. IT HURTS THE BERKSHIRE SHAREHOLDERS IF RATES ARE HIGHER. THAT MAY BE QUITE APPROPRIATE BUT TO SAY OTHERWISE, IT DOESN'T MAKE ANY SENSE. I WOULD LOVE TO SEE THE GOVERNMENT ACTUALLY ISSUE -- THEY COULD HAVE -- I MEAN, THEY COULD SET UP A COMPANY, CALL IT DID BERKSHIRE HATHAWAY TAX COMPANY AND IT WOULD TAKE ALL THE TAXES WE PAY EVERY YEAR. HOW MUCH WOULD THEY BE ABLE TO SELL THAT ASSET FOR? THEY TALK ABOUT UNFUNDED OBLIGATIONS OF THE GOVERNMENT. THAT'S AN UNREPORTED ASSET OF THE FEDERAL GOVERNMENT. THEY OWN PART OF BHERKERKSHIRE THEY GET TO DETERMINE A LOT. IT'S AN INTERESTING QUESTION. >> ONE LAST TAX QUESTION. THIS ONE COMES FROM WILLIAM BARNARD WHO SAYS A PORTION OF YOUR ANNUAL REPORT YOU STATE ON MY DEATH NONE OF MY STONG WILL HAVE TO BE SOLD. WILL THE RECENT BIDEN PROPOSAL TO TREAT GAINS AS SOLD AND DEATH 43.4% FOR PAGE OF TAXES UPON YOUR DEATH. >> THE TAX LAW CAN BE CHANGED TOMORROW AND I DON'T -- IT CAN BE DONE A LOT OF DIFFERENT WAYS. IT'S BEEN DONE A LOT OF DIFFERENT WAYS IN THE PAST. I CAN TELL YOU -- I CAN ACTUALLY MAKE A PROMISE. 99.7% OF WHAT I HAVE WHEN I DIE WILL GO TO THEM OR THE FEDERAL GOVERNMENT. THE FEDERAL GOVERNMENT CAN DETERMINE THE RULES ON THAT. AND I WOULD PREFER THAT IT WOULD GO TO PHILANTHROPY. I THINK IT WILL ACCOMPLISH MORE UTILITY IF IT GOES TO BE USED BY SOME SMART PEOPLE IN FLAP THROW BY THAN IF IT REDUCES THE FEDERAL KET WHEN I DIE. I DON'T THINK IT MAKES A DAMN BIT OF DIFFERENCE. IT WON'T CHANGE ANYTHING IN THE WORLD. IT DOESN'T SAVE THEM ANYTHING OR THEY CAN BORROW A BILLION OR ANYWAY. BUT THAT CONDITION WON'T PREVAIL. I WOULD NOT REGARD -- I'M JUST TALKING PERSONALLY. I'M NOT ADVOCATING THIS AS PUBLIC POLICY, BUT IF THEY TOOK IT ALL, IT WOULD NOT BOTHER ME. >> I GUARANTEE IT WON'T BOTHER YOU. YOU WON'T KNOW. >> THE -- YOU KNOW, IF YOU DECIDE -- IF THE AMERICAN DEPARTMENT DECIDES IT'S BETTER TO TAKE IT ALL -- WHICH I DON'T THINK THEY WILL AND I DON'T THINK THEY SHOULD, BUT NEVERTHELESS, SO WHAT? YOU KNOW, I WOULD LIKE TO SEE IT USED TO ACCOMPLISH THE MOST FOR HUMANITY. AND THAT MEANS HAVING SMART PEOPLE PROPERLY MOTIVATED AND MORE IMPORTANTLY, NOT IMPROPERLY MOTIVATED, DISTRIBUTE IT IN A WAY AND WHO KNOWS WHAT THE HELL IT WOULD BE 10, 20, 30, 40 YEARS FROM NOW. I KNOW IF IT GOES TO THE GOVERNMENT IT REDUCES THE NATIONAL DEBT BY THAT AMOUNT. I DON'T THINK IT CHANGES WHETHER THEY CHANGE MINIMUM WAGE LAWS OR ANYTHING ELSE. I JUST THINK THAT LITTLE FIGURE CHANGES, IT WILL SHOW UP IN THE BUDGET ONE DAY, RECEIVED FROM BUFFETT X AND A HUGE FIGURE DOWN BELOW. I DON'T THINK IT WOULD REALLY -- I WOULD PREFER IT BE USED PRIVATELY BUT THAT'S UP TO THE PEOPLE OF THE UNITED STATES THAT DECIDE THROUGH THEIR REPRESENTATIVES. >> NOW, THIS NEXT QUESTION IS FOR AJIT. IT COMES FROM SOMEBODY WHO SAYS MR. JAIN, WHAT HAS IT TAUGHT US ABOUT SYSTEMIC AND CORRELATED RISK AND IS THERE ANYTHING WE WILL WE WOULD DO DIFFERENTLY FROM NOW ON? >> WE AUTOMATIC THINK ABOUT PANDEMIC AS ONE OF THE RISK FACTORS THAT WE NEED TO HOLD IN OUR BUSINESS. HAVING SAID THAT, I THINK THE BIG LESSON FOR US, HAVING GONE THROUGH WHOOEF GONE THROUGH RECENTLY IS THAT WHILE WE WERE AWARE THAT THE FACT THAT PANDEMIC RISK IS A RISK FACTOR, IF IT'S TOTALLY UNDERPRICED BY ALL OF US IN THE INDUSTRY. IT'S AN EVENT THAT HAPPENED AT MOST EVERY HUNDRED YEARS, AND EVEN THEN, THE ODDS ARE PRETTY HIGH. I THINK THE BIG LESSON FOR US IS TO RETHINK ABOUT WHAT IT IS FOR A PANDEMIC RISK. AND SEPARATELY, WE HAVEN'T YET DONE A GOOD ENOUGH JOB AS AN INDUSTRY, I'M SAYING, IN TERMS OF CORRELATING THE KISK RISK AND MAKING SURE THEY CAN DEAL WITH THE AGGREGATE NUMBERS. FOR EXAMPLE, PANDEMIC RISK HAS TAKEN PEOPLE'S LIVES, BUT THEN SEPARATELY A BUNCH OF US USED TO WRITE SOMETHING CALLED EVENT CANCELLATION OR CONTINGENCY POLICY. IN TERMS OF PRICING FOR THE CONTINGENCY, SHOULD THE OLYMPICS CANCEL. WHEN PRICING SOMETHING LIKE THAT WE WOULD THINK IN TERMS OF EARTHQUAKE AND RISK AND MORE RECENTLY TERRORISM BUT YOU WOULD NEVER FACTOR SOMETHING LIKE WHAT PORTION OF THE PRICE SHOULD COME FROM THE PANDEMIC EXPOSURE. I THINK THE INDUSTRY WILL BECOME A LOT MORE SOPHISTICATED. AS OPPOSED TO IT BEING LOCALIZED. >> DON ASKED IF ANYONE ELSE ON THE STAGE WANTS TO COMMENT AFTER A AJIT. >> HE WANTED TO ASK IF ANYBODY ELSE ON THE TABLE WANTS TO COMMENT ON. >> AS AJIT SAID, LOTS OF PEOPLE BUY INSURANCE AGAINST THE OLYMPICS BEING CANCELED OR THE UNITED STATES NO PARTICIPATING. YOU THINK OF ALL SORTS OF RISK. THEY HAVE AD CAMPAIGNS -- THERE'S A LOT OF CANCELLATION INSURANCE, AND IT WAS PROBABLY UNDER PRICED THE IMPLICIT PART OF THAT PREMIUM THAT WAS ATTRIBUTABLE TO A PANDEMIC RESK. BILL GATES GAVE A TERRIFIC TALK AND TED FIVE OR SINGS YEARS AGO AND PEOPLE IGNORED IT AND IT'S VERY INTERESTING. THIS ISN'T A WORST CASE WHAT WE'VE SEEN AND YET IT'S STAGGERING MANY TERMS OF WHAT HAS HAPPENED AND PEOPLE THAT BOTH INSURANCE THAT -- THEY MAY HAVE THOUGHT OUT SOMETIMES THEY WERE COVERING THINGS THEY DIDN'T INTEND TOP COVER AND MAYBE INSURANCE P DIDN'T THINK THEY WERE BUYING BUT NEVERTHELESS AFTER THE FACT IS THEY GET INSLEPTIVE IN COMING AFTER THEM. THERE ARE CERTAIN RISKS THAT ARE TOO BIG. THE NUKE RISK, FOR EXAMPLE. THE FEDERAL GOVERNMENT IS VERY EARLY ON RECOGNIZING THAT PRIVATE INSURANCE INDUSTRY, THEY CAN'T HANDLE A -- THE RISK INVOLVED IN -- THE FINANCIAL RISK THAT WOULD BE INVOLVED IN TERMS OF A MASSIVE NUCLEAR STRIKE OR SOMETHING LIKE THAT. SO IT'S -- PANDEMICS, THE WORDING WILL BE MUCH MORE CAREFUL IN FUTURE POLICIES ON TRYING TO DIVIDE IT VERY PRECISELY. INCIDENTALLY IN THE WAY THE CASES HAVE COME SO FAR, IN THE UNITED KINGDOM -- I THINK THERE WAS ONE PARTICULARLY INSURER -- THE CASES ARE COMING DOWN MUCH TOUGHER ON THE INSURERS, THE UNITED STATES, I MEAN, THE POLICIES WERE WRITTEN DIFFERENTLY. YOU DON'T GET INSURANCE ON SOMETHING YOU DON'T BUY AGAINST. GENERALLY THE COURT DECISIONS HAVE COME DOWN FAVORABLE TO THE INSURERS AND AT BERKSHIRE IT HAPPENS THAT WE'RE NOT A BIG PLAYER BRKS BUT THAT'S IN COMMERCIAL MOLDABLE MIGHT BE WHERE -- IT'S NOT A HUGE FACTOR FOR BERKSHIRE. >> THIS IS FROM MARTIN DEFINE AND ASKED AJIT AND WARREN WHAT'S YOUR BEST ESTIMATE OF THE INSURANCE EXPOSURE FROM THE PANDEMIC? >> WELL, IN TERMS OF RESERVES STARTING FROM LAST YEAR TO THE END OF THE FIRST QUARTER OF THIS YEAR, WE HAVE PUT UP A BILLION SIX IN CHANGE. WHAT THAT DOESN'T TAKE INTO ACCOUNT IS SOME OF THE FREQUENCY BENEFIT BECAUSE OF COVID-19 THAT RESULTS BECAUSE OF FEWER ACCIDENTS AND GEICO HAS HAD A HUGE TAIL WIND BECAUSE OF THAT. IN TERMS OF WHAT THE INSURANCE OPERATIONS COLLECTIVELY ARE GOING TO BE WRITING CHECKS FOR, THAT NUMBER AS OF NOW IS ABOUT A BEING SIX. MY QUESTIONS IS IT WILL PROBABLY GROW. IF YOU LOOK UPON IT -- THE INDUSTRY AS A WHOLE, WE RESERVED. THE ASTRO AS A WHOLE HAS RESCHED ABOUT 25 TO $30 BILLION FOR 19 AS OF NOW. IF YOU BELIEVE THE PUNDITS THEY WILL TELL YOU THAT NUMBER IS PROBABLY CLOSER TO A HUNDRED BILLION. THERE'S ABOUT A HUNDRED, 175 LOSSES THAT NEED TO FLOW THROUGH, INSURANCE, INCOME STATEMENT. THE FAVOR OF 1.6 WE HAVE AS OF NOW IS GOING TO BE A LOT, LOT HIGHER BUT IT'S NOT SOMETHING WE CAN'T MANAGE. >> WE WILL NOT BE IN THE TOP FIVE -- >> RIGHT. >> -- PAIRS OF INSURANCE CLAIMS, EVEN THOUGH WE'RE -- AND IT'S -- WE WRITE A MUCH SMALLER AMOUNTED OF BOTH LIFE INSURANCE AND ANNUITIES. WE HAVE MORE LIFE INSURANCE CRIMES. MORE PEOPLE WOULD HAVE DIED THAT OTHERWISE WOULD HAVE GOT PAYMENTS UNDER ANNUITIES. IT CUTS A LOT OF WASTE. IT'S A -- ONE OF THE GREAT HUMAN TAFRS OF ALL TIME BUT IS NOT -- THAT IS BEING INSURANCE -- IF THE INSURANCE INDUSTRY THINK THEY'RE GOING TO LOSE A HUNDRED BILLION DOLLARS, THE HUNDRED BILLION OUGHT TO BE ON THEIR BOOKS NOW. YOU'VE GOT A LIABILITY, AND OUR GOAL IS NOT -- OUR GOAL IS TO HAVE -- PUT UP THE LIABILITY WHEN WE THINK IT'S HAPPENED AND THEN IF -- WE SHOULD NOT BE AT A BILLION SIX, I WOULD SAY THIS. IF WE REALLY THINK WE'RE GOING TO HAVE SOME PROPORTIONAL SHARE OF A HUNDRED BILLION, BUT -- WELL, THAT'S ENOUGH SAID ON THAT. >> FOR GREG AND WARREN AND CHARLIE. BLARE MILLER ASKS WHAT DOES THE COMBINATION OF KANSAS CITY SOUTHERN WITH EITHER CANADIAN PACIFIC OF CANADIAN NATIONAL BE TO SF IN TERMS OF COMPETITION AND DO YOU THINK THE SYNERGIES OF THE MERGER WILL JUSTIFY THE MULTIPLE PAID? >> SURE. SO OBVIOUSLY, A TRANSACTION WE FOLLOW CLOSELY WITH BOTH CANADIAN NATIONAL AND CANADIAN PACIFIC BIDDING TO PURCHASE KANSAS CITY SOUTHERN, EITHER OF THOSE COMPANIES ACQUIRING KANSAS CITY SOUTHERN WILL HAVE AN IMPACT ON BNSF. WHAT THEY'RE BASICALLY PROPOSING IS TO CREATE A NORTH-SOUTH RAILWAY THAT GOES FROM CANADA INTO MEXICO. WE DO HAVE A STRONG PRESENCE IN MEXICO, NOT AS STRONG AS SOME OF OUR COMPETITION, BUT WE WOULD FEEL COMPETITION THERE, SO WE'LL FOLLOW THAT TRANSACTION VERY CLOSELY. AS IT GOES BEFORE THE SURFACE TRANSPORTATION BOARD, THE STANDARD THAT WILL BE APPLIED IS COMPETITION HAS TO BE PROTECTED OR ENHANCED, SO THAT'S OUR OPPORTUNITY TO PROTECT OUR FRANCHISE ON BEHALF OF OUR CUSTOMERS. SO WE MOVE IN A MOBILE BUSINESS BOTH IN AND OUT OF THERE ON BEHALF OF CERTAIN CUSTOMERS. WE'LL WANT TO PROTECT THE RIGHTS OF OUR CUSTOMERS THERE, SO WE'LL BE ACTIVE IN THE APPROVAL PROCESS, BUT THERE'S NO QUESTION AT THE END IT IMPACTS OUR FRANCHISE. WARREN. >> YEAH. IT'S NOT HUGE, BUT IT AFFECTION BOTH THE UNION PACIFIC AND BNSF TO A SBHAUL DEGREE, PROBABLY SMALL DEGREE BUT THAT'S NOT THE WORRY OF THE SERVICE TRANSPORTATION BOARD. THEIR JOB IS TO DO WHAT'S BEST FOR THE SCHIPPERS, AND IN TERMS OF THE PRICE THAT'S BEING PAID, YOU KNOW, LIKE I SAY, WHEN -- IF YOU CAN BORROW THE MONEY NOTHING FOR NOTHING, IT WOULDN'T MAKE MUCH DIFFERENCE TO PEOPLE AND THIS WOULD NOT BE BEING PAID UNDER A DIFFERENT INTEREST RATE ENVIRONMENT. IT'S VERY SIMPLE, BUT IT WOULD MAKE -- THERE'S NO MAGIC TO THE KANSAS CITY SOUTHERN. IT'S GOT A -- I THINK -- THE OLD MEXICO ENDS IN 2047. IT'S -- IT WILL -- THE NUMBER OF CAR LOADS CARRIED, WHATEVER, IS NOT GOING TO CHANGE THAT MUCH. BUT IT IS KIND OF INTERESTING. THERE'S ONLY -- THERE'S TWO MAJOR CANADIAN WHAT THEY CALL CLASS ONE RAILROADS AND THERE'S FIVE IN THE UNITED STATES, AND THIS WILL RESULT IN ESSENTIALLY THREE OF THE UNITS BEING CANADIAN, FOUR BEING U.S., WHICH IS NOT THE WAY IT NORMALLY -- THE WAY THE DEVELOPMENT OF THE RAILROAD SYSTEM WOULD WORK IN THE UNITED STATES. BUT IT'S -- WE'VE TALKED ABOUT IT PLENTY AND CP OR EITHER CANADIAN NATIONAL LIKELY TO GET -- I THINK THE TRANSPORTATION BOARD WHO VOTED THE OTHER DAY DIDN'T GET -- >> THEY VOTED ON AN INITIAL TRUST STRUCTURE THAT THEY HAD TO APPROVE FOR CANADIAN PACIFIC AND THAT WAS A 4-1 VOTE, AS YOU NOTED, WARREN. >> YEAH. NORMALLY RAILROAD DEALS ARE A VERY LONG -- TAKES A LONG TIME FOR THEM TO EVALUATE. IN THIS CASE I THINK THEY HAVE TWO OPPOSING TRUST PROPOSALS AND IN EFFECT, BY MAKING A -- IF THEY MAKE A QUICK DECISION ON WHICH TRUST PROPOSAL WILL THEY ALLOW, I DON'T SAY THEY ALLOW TWO PROPOSALS EXACTLY. SO IT MAY BE A VERY ACCELERATED DECISION. I DON'T KNOW. IT'S UP TO THE TRANSPORTATION BOARD TO DO WHAT'S WEST FOR WHAT THEIR OBLIGATION IS TO THE COUNTRY TO DO. >> THERE WAS A FOLLOW-UP QUESTION -- >> SURE. >> DO YOU THINK THE VALUATION THAT THEY'RE PAYING IS WORTH IT? >> WELL, I -- WE HAVE -- IN A VERY, VERY MILD WAY. EVERYBODY'S KIND OF PLAYED DEALS WITH DIFFERENT RAILROADS EVER SINGS I'VE BEEN IN THE RAILROAD BUSINESS, SO -- WE'VE TALKED ABOUT IT. ONE CP, WHEN -- HARRISON CAME AFTER -- WAS IT C.P. KIND OF LED THE WAY WE LOOKED AT BUYING CP. EVERYBODY LOOKS AT EVERYTHING AND WE WOULD NOT PAY THIS PRICE AND APPLIES FOR A PRICE OF BNSF THAN WHAT THE UP IS SELLING FOR. BUT IT'S KIND OF PLAIN MOPLAY MONEY. CP AND CN, THERE'S ONLY ONE KC SOUTHERN. THEY'RE NOT GOING TO BUY US, THEY'RE NOT GOING TO BUY THE U.P. AND THE JUICES FLOW AND THE PRICES GO UP -- >> HANDLE SOMEBODY ELSE'S MONEY. >> SOMEBODY ELSE'S MONEY AND YOU'RE GOING TO RETIRE IN FIVE OR TEN YEARS AND PEOPLE WON'T REMEMBER WHAT YOU PAID BUT THE INVESTMENT BANKERS ARE CHEERING YOU ON AT EVERY MOVE. THEY'RE MOVING THE FIGURES AROUND, THE SPREADSHEETS ARE OUT AND THE THINGS ARE FLOWING FROM. >> THIS QUESTION COMES FROM ASHER HAFT IN BROOKLYN, WHO SAYS -- HE'S BEEN A SHAREHOLDER SINCE 2016. SAYS THAT HE APPRECIATES YOUR HONESTY AND CANDIDNESS IN EXPLAINING COSTLY ERRORS YOU MADE. YOU MADE A MISTAKE IN 2016 WHEN AVERAGE AMOUNT OF FUTURE EARNINGS WHICH PAID BERKSHIRE IN ACQUIRING ITS. THEY DECLINED IN 2020 BECAUSE OF THE PANDEMIC AND THE EFFECT ON AIRLINE AND TRAVEL INDUSTRY. WHAT CALCULATIONS COULD YOU HAVE MADE IN 2016 THAT MIGHT HAVE ALTERED YOUR DECISION TO HAVE IT AND ARE THE PROBLEMS THEY'RE CURRENTLY FACING LARGER THAN THE PANDEMIC. >> BERKSHIRE DIDN'T MAKE THE MISTAKE. I MADE THE MISTAKE. THE -- NO. I -- ANYTIME WE LOOK AT BUYING A BUSINESS, WE'RE EVALUATING THE STRENGTH OF THE BUSINESS, THE PRICE WE HAVE TO PAY, THE MANAGEMENT WE GET AND EVERYTHING AND WE DIDN'T MAKE A MISTAKE ON THE MANAGEMENT, BUT IN TERMS OF THE EARNING POWER ON AVERAGE AND WHEN BOEING HAS TROUBLE WITH MAXWELL, THAT'S A PROBABILITY. HIM IN ANY CUSTOMERS HAVE BIG -- ALL KINDS OF THINGS COULD HAPPEN, AND WE HAVE SEEN SOME OF THOSE THINGS HAPPEN AND THEREFORE, I PAID TOO MUCH IN RELATION TO AVERAGE EARNINGS. IT'S A TERRIFIC COMPANY AND, YOU KNOW, IT'S -- I'LL HAPPY WITH THE MANAGEMENT AND EVERYTHING, BUT G.E. DOESN'T THEY GET INTO THE POWER BUSINESS, A VARIETY OF THINGS. AND WE'RE IN THE BUSINESSES. BUT WE DID NOT THINK THOSE BUSINESSES WOULD NECESSARILY BE IN SOMETHING CLOSE TO A DEPRESSION WHEN OTHER BUSINESSES THAT WE BOUGHT END UP SOMETIMES DOING BETTER THAN WE THINK. BUT WE'LL CONTINUE MAKING MISTAKES. I MEAN -- AND I SHOULDN'T SAY WE WILL. I WILL. >> THE OTHERS WILL HELP. >> AND, WELL, YOU KNOW, WE'VE GOT SOME WONDERFUL DEALS AND SOME TERRIBLE DEALS. AND THE NICE THING ABOUT IT IS, AS I POINTED OUT, THIS DOESN'T REALLY APPLY IN THE CASE OF PRECISION, BUT WHEN WE'RE DISAPPOINTED IN THE BUSINESS IT USUALLY BECOMES A SMALLER AND SMALLER PERCENTAGE OF OUR BUSINESS JUST BY THE NATURE OF THINGS BECAUSE IT ISN'T GOING ANY PLACE. WHEN WE GET A SUCCESSFUL BUSINESS, LIKE A GEICO -- THEY'RE DOING 15 TIME AS MUCH BUSINESS AS WHEN WE BOUGHT CONTROL OF THEM. THEY'VE BECOME A MORE IMPORTANT PART OF OUR MIX. SO YOU REALLY GET JUST THROUGH NATURAL FORCES YOU GET MORE OF YOUR MONEY IN THINGS THAT HAVE DEVELOPED MORE FAVORABLY THAN YOU THOUGHT. YOU ACTUALLY END UP GETTING A GREATER CONCENTRATION IN THE THINGS THAT WORK OUT. AS CHARLIE WOULD SAY, IT'S NOT LIKE HAVING CHILDREN. THE BAD ONES CAUSE YOU MORE PROBLEMS. BUT IN THE CHILDREN OF BUSINESSES, THE SMALL ONES KIND OF -- WE STARTED WITH THREE BUSINESSES, CHARLIE AND I, AND BERKSHIRE WAS TEXTILES, AND DEPARTMENT STORE AND TRADING STAMPS, BLUE CHIPS BUSINESS, AND THOSE WERE THE THREE COMPANIES WE PUT TOGETHER, AND ALL THREE OF THE ORIGINAL BUSINESSES FAILED, WHICH SORT OF GETS ME IN TERMS OF PEOPLE THAT ARE WORRIED ABOUT, DON'T WE KNOW THAT COAL IS GOING TO BE PHASED OUT OVER TIME? OF COURSE WE KNOW THAT. THAT DOESN'T MEAN WE'RE GOING TO BE PHASED OUT OVER TIME. EVERY BUSINESS HAS A LOT TO THINK ABOUT THAT WAY. THE BIGGEST DANGER, THEY HAVE THAT SECTION IN THE PERSPECTIVES CALLED -- WHAT DO THEY CALL THAT ABOUT CERTAIN -- >> RISK FACTORS? >> RISK FACTORS, YEAH. THE YOU BE IN ONE RISK FACTOR IS THAT THIS BUSINESS GETS THE WRONG MANAGEMENT. AND GET A GUY OR A WOMAN IN CHARGE OF IT THAT THEY ARE PERSONABLE, THE DIRECTORS LIKE THEM. THEY DON'T KNOW WHAT THEY'RE DOING, BUT THEY LIKE TO PUT ON AN APPEARANCE. THAT'S THE SINGLE BIGGEST DANGER. THEN THAT PERSON STAYS AND RUNS IT AND STAYS IN THE TEXTILE OR DEPARTMENT STORE BUSINESS. AND IT EXPANDS. I LOOKED AT A LOT OF BUSINESSES. THAT'S WHAT'S CAUSED THE NUMBER ONE PROBLEM. IT ISN'T THE THING THAT THEY LIST BECAUSE THE LAWYERS TELL THEM TO LIST. >> THIS QUESTION IS FOR BOTH WARREN AND CHARLIE. NOW THAT THE CRYPTO MARKET OVERALL IS VALUED AT $2 TRILLION, DO YOU STILL C CRYPTOS AS WORTHLESS ARTIFICIAL GOLD? >> I KNEW THERE WOULD BE A QUESTION ON BITCOIN. I THOUGHT TO MYSELF, WELL, I'VE WATCHED THESE QUESTIONS DODGE POLITICIANS ALL THE TIME. THE TRUTH IS, I'M GOING DODGE THAT QUESTION, BECAUSE WE'VE PROBABLY GOT HUNDREDS OF THOUSAND OF PEOPLE WATCHING THAT THAT OWN BITCOIN, AND TWO PEOPLE THAT ARE SHORT. WE'VE GOT A CHOICE OF MAKING THOUSANDS OF PEOPLE MAD AT US OR MAKING TWO PEOPLE HAPPY. I THOUGHT ABOUT IT, WE HAD A GOVERNOR ONE TIME IN NEBRASKA, A LONG TIME AGO, BUT HE WOULD GET A TOUGH QUESTION -- WHAT DO YOU THINK ABOUT PROPERTY TAXES? OR WHAT SHOULD WE DO ABOUT SCHOOLS? AND HE'D LOOK RIGHT AT THE PERSON AND SAY, I'M ALL RIGHT ON THAT ONE. AND HE'D JUST WALK OFF. WELL, I'M ALL RIGHT ON THAT ONE. WE'LL SEE HOW CHARLIE IS. >> WELL, THOSE WHO KNOW ME WELL ARE JUST WAVING THIS RED FLAG AT THE BULL. OF COURSE I HATE THE BITCOIN SUCCESS, AND I DON'T WELCOME A CURRENCY THAT'S SO USEFUL TO KIDNAPPERS AND EXTORTIONISTS AND SO FORTH. NOR DO I LIKE SHUFFLING OUT A FEW EXTRA BILLIONS AND BILLIONS AND BILLIONS OF DOLLARS TO SOMEBODY WHO JUST INVENTED A NEW FINANCIAL PRODUCT OUT OF THIN AIR. SO, I THINK I SHOULD SAY MODESTLY THAT THE WHOLE DEVELOPMENT IS DISGUSTING AND CONTRARY TO THE INTEREST OF CIVILIZATION. AND I'LL LEAVE THE CRITICISM TO OTHERS. >> I'M ALL RIGHT ON THAT ONE. >> THE NEXT SERIES OF QUESTIONS ARE FROM JAMES HERNANDEZ. HE HAS TWO QUESTIONS. ONE FOR AJIT. ONE FOR GREG. THEY BOTH CONCERN ELON MOSQUE. ELON MUSK STATED BERKSHIRE HATHAWAY'S ENERGY PROPOSAL FOR TEXAS IS WRONG. INSTEAD, MR. MUSK ARGUES THAT LOAD BALANCING USING BATTERY STORAGE IS THE APPROPRIATE COURSE OF ACTION. CAN YOU EXPLAIN WHY THE BHE PROPOSAL IS THE BETTER COURSE OF ACTION FOR GOVERNOR ABBOTT IN THE STATE OF TEXAS? SPECIFICALLY, WHAT AMOUNT OF SAVINGS CAN THE CITIZENS EXPECT ABOVE AND BEYOND WHAT MR. MUSK IS PROPOSING? >> SURE. OBVIOUSLY THERE'S THE VERY UNFORTUNATE EVENT IN TEXAS IN FEBRUARY AND IT BASICALLY LASTED FOUR DAYS. MANY LIVES WERE LOST. THE ECONOMIC DAMAGE WAS SIGNIFICANT. TEXAS HAS HIGHLIGHTED THAT ANYWHERE FROM 80 TO $130 BILLION AND INCURRED LOSSES OVER THAT PERIOD OF TIME. I THINK WHEN YOU LOOK AT THE POWER SECTOR IT FUNDAMENTALLY LET THE CITIZENS DOWN. IT DIDN'T PERFORM AS THEY EXPECTED. AND THEN WHEN IT DID PERFORM IT WAS EXTREMELY EXPENSIVE. THEY INCURRED BILLIONS AND BILLIONS OF DOLLARS OF ENERGY COSTS VERSUS A MULTIPLE OF BASICALLY TEN TIMES WHAT THEY PAID. THEY PAID TEN TIMES IN ENERGY COSTS OVER THOSE FOUR DAYS WHAT THEY PAID IN THE PAST YEAR. SO A VERY SUBSTANTIAL EVENT FOR TEXAS. WE'VE GONE TO TEXAS WITH WHAT WE BELIEVE IS A GOOD SOLUTION. WE SPENT A LOT OF TIME PULLING IT TOGETHER, UNDERSTANDING THE FUNDAMENTAL ISSUES AROUND IT. AND OUR PROPOSAL IS BASED ON THE FACT THAT THE HEALTH AND WELFARE OF TEXANS WERE AT RISK, AND WE NEEDED TO HAVE EFFECTIVELY AN INSURANCE POLICY IN PLACE FOR THEM. THAT IF THEY NEEDED TO POWER ON SHORT NOTICE, IT WOULD BE ABLE TO BE DISPATCHED AND IT WOULD BE THERE FOR THE FOUR DAYS WE'RE PROPOSING IT COULD BE THERE FOR SEVEN DAYS. AND THE FUNDAMENTAL CONCEPT OF OUR PROPOSAL HAS ALWAYS BEEN, IF THERE'S A BETTER PROPOSAL THAT'S BROUGHT FORWARD, WE'VE ACCOMPLISHED OUR MISSION. WE'VE JUST REALLY BEEN THERE TO -- IT'S THE BEST PROPOSAL OR OPTION WE COULD COME UP WITH, AND OBVIOUSLY WITH TEXAS OR ELON OR SOMEBODY COMES UP WITH A BETTER PROPOSITION, WE'VE ALWAYS SAID, TEXAS, YOU SHOULD PURSUE IT. WE STRONGLY BELIEVE RIGHT NOW WE HAVE WHAT REMAINS IS A VERY GOOD PROPOSAL FOR TEXAS, AND IT WILL CONTINUE TO BE DISCUSSED AND EVALUATED. THE BIG DIFFERENCE BETWEEN A BATTERY PROPOSAL AND OUR PROPOSAL IS THAT WE WILL HAVE POWER THAT CAN BE GENERATED CONTINUOUSLY FOR SEVEN CONSISTENT DAYS. WHERE IF YOU WENT TO A BATTERY SOLUTION, YOU MAY RELEASE THAT POWER THAT'S BEEN STORED FOR FOUR HOURS, WITH YOU WE'RE TALKING FOUR DAYS OF A PROBLEM, NOT FOUR HOURS. AND IT'S JUST A COMPLETELY DIFFERENT COST EQUATION AND SOLUTION. SO VERY PROUD THAT OUR TEAM'S BROUGHT FORWARD WHAT I THOUGHT WAS A VERY UNIQUE SOLUTION. WE WORKED HARD WITH OUR SU SUPPLIERS AND PUT TOGETHER WHAT WE BELIEVE IS A FIRM COST THAT CAN ALSO BE DELIVERED BY NOVEMBER OF '23. SO AGAIN WE PUT A FIRM DATE ON IT. IT WON'T BE READY NEXT WINTER, UNFORTUNATELY. WON'T BE READY THIS SUMMER BUT IT'S A VALUABLE SOLUTION AND ONE THAT WE HOPE AT LEAST LEADS TO THE RIGHT DISCUSSION AND THE RIGHT LONG-TERM DISCUSSION FOR THE STATE. >> YEAH, AND WE'RE ALSO WILLING TO PUT UP $4 BILLION THAT IF WE DON'T DELIVER WHEN WE SAY WE'RE GOING TO DELIVER, WE'LL PAY IT AS A PENALTY, BASICALLY. BUT, YOU KNOW, WE WENT TO GENERAL ELECTRIC, SAID, HOW LONG COULD WE GET TURBINES. YOU KNOW, IF YOU'RE GOING TO BE PREPARED FOR 2023, YOU HAVE TO START AT A POINT FAIRLY SOON, AND YOU HAVE INFLATION GOING ON, AND KEY WAS NOT GOING THE CHANGE THINGS IN A MONTH. THEY HAD 100 PEOPLE WORKING ON IT OR SOMETHING. >> YEAH, THEY HAD HUNDREDS WORKING ON IT. >> AND GE IS COOPERATIVE. BUT DOESN'T MEAN WE HAVE THE BEST SOLUTION. WE JUST KNOW WHAT WE CAN DO. IF ANYBODY CAN DO IT FASTER, THEY CAN DO IT CHEAPER, WHATEVER, THAT'S TERRIFIC. BUT THEY SHOULD HAVE SOMETHING TO LOSE TIF THEY DON'T DO IT. AND WE'LL BACK OUR PROMISE UP BY $4 BILLION, AND WE WON'T HAVE ANY RINKY DINK CLAUSES IN THERE THAT IF THIS HAPPENSER THAT HAPPENS, WE WON'T PAYMENT BUT WE WON'T BE ABLE TO DO THAT AIER FROM NOW. WE'LL BE ABLE TO DO IT A YEAR FROM NOW WITH THE COSTS WHAT THEY ARE THEN. TEXAS IS A TERRIFIC PLACE TO DO BUSINESS. WE DO A LOT OF BUSINESS THERE. IT'S A GREAT PLACE. AND THIS WAS OUT OF THE BLUE, BUT ONE WAY OR ANOTHER -- THE NATURE OF UTILITY BUSINESS IS THAT YOU HAVE TO BE PREPARED FOR SOMETHING THAT PROBABLY ISN'T GOING TO HAPPEN. YOU KNOW, YOU DON'T WANT TO SAY, IT'S A 1 IN 30 YEAR EVENT AND PEOPLE DIE. SO, YOU WANT A MARGIN OF SAFETY IN IT, AND WE'VE GOT ONE SOLUTION, AND OTHER PEOPLE MAY HAVE OTHER SOLUTIONS, AND WE WILL CHEER WHEN A SOLUTION IS REACHED OF ANY KIND, AND WE'LL CHEER A LITTLE LOUDER IF IT'S OURS. >> AJIT, YOUR QUESTION FROM THIS GENTLEMAN -- SUPPOSE THE HYPOTHETICAL SITUATION ARISES WHERE WARREN BUFFET CALLS YOU ON THE PHONE TO TELL YOU ELON MUSK HAS CONTACTED HIM TO WRITE AN INSURANCE POLICY ON HIS PROPOSED COME ANIZATION OF MARCH. SPECIFICALLY TO ENSURE A SPACEX CAPSULE AND ANY HUMAN LOAD ON BOARD. WOULD YOU WRITE ON THAT? >> THIS IS AN EASY ONE. NO THANK YOU. I'LL PASS. >> I WAS ABLE TO DEPEND ON THE PREMIUM. I WOULD PROBABLY HAVE A SOMEWHAT DIFFERENT RATE IF ELON WAS ON BOARD OR NOT ON BOARD. NO, IT MAKES A DIFFERENCE. IF SOMEBODY'S ASKING YOU TO ENSURE SOMETHING -- SO I WOULD -- THAT'S CALLED GETTING SKIN IN THE GAME. >> BUT IN GENERAL I WOULD BE VERY CONCERNED ABOUT WRITING AN INSURANCE POLICY WHERE ELON MUSK IS ON THE OTHER SIDE. >> TELL HIM HE WANTED TO CALL ME INSTEAD OF AJIT. >> THIS QUESTION COMES FROM MICHAEL LU FROM CALIFORNIA. THIS IS FOR WARREN AND CHARLIE. THE YOUR SHAREHOLDER LETTER YOU MENTION THE BEST RESULTS COME FROM COMPANIES THAT REQUIRE MINIMUM ASSETS TO CONDUCT HIGH MARGIN BUSINESSES TODAY AS WORLD THESE DEPEND TO BE SOFTWARE BUSINESSES. WHILE BERKSHIRE AVOIDED THOSE IN THE PAST THAT SEEMS TO BE CHANGING WITH YOUR INVESTMENTS IN APP AND SNOWFLAKE. AS SHAREHOLDERS SHOULD WE EXPECT HIGH MARGIN BUSINESSES WILL CONSTITUTE A LARGER PORTION OF BERKSHIRE'S PORTFOLIO OVER TIME, PARTICULARLY AS TOM AND TED TAKE OVER ROLES IN THE PROCESS? >> WELL, WE'VE ALWAYS KNOWN THE GREEN BUSINESS IS THE ONE THAT TAKES LITTLE CAPITAL AND GROWS A LOT. AND APPLE AND GOOGLE AND MICROSOFT AND FACEBOOK ARE TERRIFIC EXAMPLES OF THAT. I MEAN, APPLE HAS $37 BILLION IN POVERTY PLANNED EQUIPMENT. BERKSHIRE HAS $170 BILLION OR SOMETHING LIKE THAT. THEY'RE GOING TO MAKE MORE MONEY THAN WE DO. IT'S A MUCH BETTER BUSINESS THAN WE HAVE. AND MICHAEL AS BUSINESS IS A BETTER BUSINESS. GOOGLE AS BUSINESS IS BETTER. WE'VE ALWAYS LOOKED -- WE'VE KNOWN THAT A LONG TIME. WE FOUND THAT OUT WITH SEE'S CANDY IN 1972. IT JUST DOESN'T REQUIRE THAT MUCH CAPITAL. IT DOESN'T HAVE -- IT HAS OBVIOUSLY A COUPLE OF MANUFACTURING PLANTS, THEY CALL THEM KITCHENS. BUT IT DOESN'T HAVE A BIG INVENTORY EXCEPT SEASONALLY FOR A SHORT PERIOD. DOESN'T HAVE A LOT OF RECEIVABLES. THOSE ARE THE KIND OF BUSINESS -- THEY'RE THE BEST BUSINESSES BUT COMMAND THE BEST PRICES. WE'RE LOOKING FOR THEM ALL THE TIME, AND WE'VE GOT A FEW THAT ARE PRETTY DARN GOOD, BUT WE DON'T HAVE ANYTHING AS BIG AS THE BIG GUYS. BUT THAT'S WHAT EVERYBODY'S LOOKING FOR. THAT'S WHAT CAPITALISM IS ABOUT, PEOPLE GETS A RETURN ON CAPITAL. AND THE WAY YOU GET IT IS HAVING SOMETHING THAT DOESN'T TAKE TOO MUCH CAPITAL. I MEAN, IF YOU HAVE TO REALLY PUT OUT TONS AND TONS OF CAPITAL -- THE UTILITY BUSINESS, IT'S NOT A SUPER HIGH RETURN BUSINESS. YOU JUST HAVE TO PUT OUT A LOT OF CAPITAL. YOU GET A RETURN ON THE CAPITAL, BUT YOU DON'T GET FABULOUS RETURN. YOU DON'T GET GOOGLE LIKE RETURNS OR ANYTHING REMOTELY CLOSE TO IT. YOU KNOW, WE'RE PROPOSING A RETURN IN THE TRANSACTION WITH THE PROPOSITION WITH TEXAS. I THINK IT'S 9.3%. >> YEAH, 9.3%. >> YEAH, AND THAT -- BUT IF YOU LOOK AT THE RETURN ON MOST AMERICAN BUSINESSES, NET TANGIBLE ASSETS IT'S A LOT HIGHER THAN 9.3, BUT THEY AREN'T UTILITY BUSINESSES, EITHER. >> CHARLIE, DID YOU WANT TO ADD ANYTHING TO THAT? >> NO. >> THIS QUESTION IS FROM RYAN FAZARO IN NEW YORK CITY, WHO SAYSED TO TODD AND TED HAVE TA ON -- INCLUDING THE SIZABLE APPLE HOLDINGS, PARTICIPATING IN M AND A STRATEGY AND PARTICIPATING IN THE NEW SHUTTERED HEALTH-CARE WITH AMAZON AND MORGAN. BUT TODD AND TED ARE NOT AVAILABLE THE SHAREHOLDERS. GIVEN THEIR -- TO THE FIRM, CAN YOU DISCUSS THIS POLICY AND WHETHER WE EXPECT TO HEAR FROM THEM MORE IN THE COMING YEARS? >> THEY'RE BOTH ABSOLUTELY TERRIFIC, AND THAT'S ONE REASON I DON'T WANT PEOPLE QUIZZING THEM ON STOCKS. THEY'RE ASSETS OF BERKSHIRE. THERE'S NO REASON FOR THEM TO BE OUT EDUCATING OTHER PEOPLE ON HOW TO COMPETE WITH US. IT WOULDN'T -- IT ALWAYS SEEMS SO SILLY THAT PEOPLE EXPECT -- THEY DON'T EXPECT MERCK OR PFIZER TO TELL THEM THE EXACT SCIENCE THEY'RE WORKING ON. THE FAILURES, ELIMINATE THOSE. AND YOU KNOW, THE -- IF YOU'VE GOT TALENT THAT KNOWS HOW TO EVALUATE BUSINESSES -- AND THOSE TWO FELLAS HAVE GONE FAR BEYOND THAT. THEY'RE TERRIFIC ASSETS, AND THEY LOVE BERKSHIRE AND WORK EXTRAORDINARY HOURS. BUT WE DON'T REALLY WANT THEM GOING AROUND WITH PEOPLE ASKING THEM QUESTIONS ABOUT WHY YOU LIKE THIS INDUSTRY BETTER OR ANYTHING OF THE SORT. >> THIS QUESTION'S FOR CHARLIE. IT COMES FROM STEVEN TENOR IN ATLANTA. HE'S BEEN A BERKSHIRE SHAREHOLDER FOR TEN YEARS AND SAYS YOU AND YOUR FRIEND LEELU HAVE BEEN -- SINCE ITS INITIAL PURCHASE IN 2008. IT'S CURRENTLY VALUE AT $5.3 BILLION. THE DAILY JOURNAL RECENTLY BOUGHT A LARGE SHARE OF ALIBABA AFTER JACK MA WAS -- AND HIS OTHER WAS NOT ALLOWED TO PREEZ WITH IPO. WHAT ARE YOUR THOUGHTS ON CHINA AND WHETHER BUSINESSES -- THE GOVERNMENT WILL LET BUSINESSES WITH STRONG LEADERS TO FLOURISH IN THE YEARS TO COME? >> I THINK THE CHINESE GOVERNMENT WILL ALLOW BUSINESSES TO FLOURISH. IT'S THE BEST THING THAT HAPPENED IN THE HISTORY OF THE WORLD WHEN A BUNCH OF COMMITTED COMMUNISTS LOOKED AT THE PROSPERITY OF PLACES LIKE SINGAPORE AND SAID, THE HELL WITH THIS. WE'RE NOT GOING STAY HERE IN POWER. WE'RE GOING TO COPY WHAT WORKS. THEY CHANGED COMMUNISM. THEY ACCEPTED ADAM SMITH AND ADDED IT TO COMMUNISM. AND NOW WE HAVE COMMUNISM WITH CHINESE CHARACTERISTICS. CHINA WITH A FREE MARKET WITH A BUNCH OF BILLIONAIRES. AND THEY MADE THAT SHIFT. AND THEY DESERVE A LOT OF CREDIT. WARREN AND I ARE NOT QUITE AS GOOD AT THAT, CHANGES OUR MINDS IN MANY CASES, AND THAT WAS A REMARKABLE CHANGE COMING FROM SUCH A PLACE, AND OF COURSE IT'S WORKED LIKE GANGBUSTERS. THAT IS ENORMOUS GROWTH, THE AVERAGE INCOME OF THE ARCH CHINESE. THEY'VE LIFTED 800 MILLION PEOPLE OUT OF POVERTY, FAST. AND THERE WAS NEVER ANYTHING LIKE IT IN THE HISTORY OF THE WORLD, SO MY HAT IS OFF TO THE CHINESE, AND I THINK THEY WILL CONTINUE TO ALLOW PEOPLE TO MAKE MONEY. THEY LEARNED IT WORKS. I LOVE WHAT THE GUY SAID IN THE FIRST PLACE -- I DON'T CARE WHETHER THE CAT IS BLACK AND WHITE, AS LONG AS IT CATCHES MICE. THAT'S MY KIND OF TALK. >> IN THAT LIST OF THE MOST VALUABLE COMPANIES, THREE ARE CHINESE. IF YOU'RE LOOKING OUT 30 YEARS, MY GUESS IS MORE. BUT I DON'T THINK IT WILL TOP THE UNITED STATES. BUT WHO KNOWS. IT'S -- IT'S AMAZING WHAT HAS BEEN ACCOMPLISHED. >> YEAH, REALLY AMAZING. >> AND THEY FOUND WHAT WORKS. NOTHING LIKE FINDING SOMETHING THAT WORKS IN ORDER TO REINFOREIN REINFORCED IDEAS OVER TIME. WE'LL SEE WHAT HAPPENS. I WILL BET THERE WILL BE MORE THAN THREE, BUT I'LL BET THE UNITED STATES HAS MORE THAN CHINA HAS, TOO. >> THIS ONE COMES FROM TIM MEDLEY IN JACKSON, MISSISSIPPI, WHO'S BEEN A SHAREHOLDER SINCE 1997. HE WRITES ON MARCH 19th, THE FORMER PRESIDENT OF HARVARD UNIVERSITY, LARRY SUMMERS WAS CRITICAL OF PRESIDENT JOE BIDEN'S $1.9 TRILLION AMERICAN RESCUE STIMULUS PLAN, AND IN AN INTERVIEW BE BLOOMBERG TELEVISION SAID, I'M WORRIED WE'LL HAVE MORE INFLATION OR A DRAMATIC FISCAL, MONETARY COLLISION. THIS GOES WAY BEYOND WHAT IS NECESSARY. HE SAID, ALSO, THIS IS THE LEAST RESPONSIBLE MACROECONOMIC POLICY WE HAVE HAD IN THE LAST 40 YEARS. YOUR THOUGHTS? >> YOU'RE ASKING ME ON THAT. >> HE DIDN'T WRITE TO WHO, SO ANYBODY ON THE STAGE. >> I WOULD SAY LARRY'S BEEN READING HIS UNCLE'S BOOK. LARRY IS A VERY, VERY SMART -- ALTHOUGH AND HE'S LETTING OUT POSSIBILITIES WHICH ACTUALLY NOW VOICED A LITTLE BIT MORE SINCE THAT MARCH 19th -- WHATEVER DATE IT WAS THAT THEY MADE THAT -- YOU CAN'T JUST DO ONE THING IN ECONOMICS, AND IF WE REALLY COULD SHOVEL OUT MORE AND MORE DEBT AND THE COST TURNED OUT TO BE LOW -- PEOPLE THOUGHT JAPAN COULDN'T DO WHAT THEY'VE DONE, BUT, YOU KNOW, USED TO BE CALLED THE WIDOWMAKER AROUND SOLOMON, AND PEOPLE WERE SHORTING JAPANESE BONDS. BUT THE ANSWER IS, WE DON'T KNOW. BUT LARRY'S VIEW IS AN IMPORTANT VIEW, AND IT'S JUST AS GOOD AS, IF MY -- THE VIEW ON THE OTHER SIDE MIGHT BE. WE DON'T KNOW WHAT HAPPENS FROM THE PRESENT POLICIES. WE DO KNOW, AS JAY POWELL SAID THE OTHER DAY, THAT THE IDEA THAT 100% OF GDP WAS SOME TERRIBLY DANGEROUS LEVEL, IN TERMS OF DEBT, THAT DOESN'T REALLY MAKE A WHOLE LOT OF SENSE NOW, AND THAT USED TO BE KIND OF ACCEPTED WISDOM. WE'VE LEARNED A LOT OF THINGS WE THOUGHT BEFORE WEREN'T TRUE, BUT WE HAVEN'T HEARD IF WHAT WE'RE DOING NOW IS TRUE. AND THE BEST THING TO DO IS RECOGNIZE YOU DON'T KNOW AND PROCEED IN A WAY WHERE YOU GET A DECENT RESULT NO MATTER WHAT HAPPENS, AND THAT'S WHAT WE TRY TO DO AT BERKSHIRE HATHAWAY. WE DO NOT THINK WE CAN MAKE MONEY BY MAKING MACROECONOMIC PREDICTIONS. WE DO THINK WE CAN BE PRETTY DARN SURE WE'LL GET A REASONABLE RESULT UNDER POLICIES THAT WILL NONACTION WISE RESULT IF WE COULD DO THAT SORT OF THING. >> IT'S NOT AT ALL CLEAR WHETHER LARRY IS RIGHT OR WRONG. >> HE'S A SMART MAN, THOUGH. >> HE IS A SMART MAN, AND IT'S COURAGEOUS OF HIM TO RAISE IT TO -- HE'S FRANKLY THE ONLY ONE TALKING THAT WAY, WHICH I ADMIRE, BY THE WAY. >> GUARANTEES HE WON'T GET A POSITION IN THE ADMINISTRATION. >> WELL, THAT'S ONE OF THE REASONS I ADMIRE HIM. AND NOT THAT THERE'S ANYTHING WRONG WITH HAVING A POSITION IN THE ADMINISTRATION, BUT I THINK PEOPLE WHO KIND OF TELL IT THE WAY THEY THINK IT IS, I LIKE IT. >> THIS QUESTION CIRCLES BACK TO BANKING, WHICH YOU TOUCHED ON EARLIER. JEROME BERNARD FROM SWITZERLAND WRITES, CAN YOU EXPLAIN WHY YOU EXITED MOST BANK STOCKS IN 2020 EXCEPT BANK OF AMERICA, AND WHAT IS YOUR FUTURE ON THE BANKING INDUSTRY? >> I LIKE BANKS GENERALLY, I JUST DIDN'T LIKE THE PROPORTION COMPARED TO THE POSSIBLE RISK IF -- WHICH SO FAR WE HAVEN'T GOTTEN. WE WERE OVER 10% OF BANK OF AMERICA. IT'S A REAL PAIN IN THE NECK, BOTH IN THE BANK, MORE TO THE BANKS THAN US. AND I LIKE THE BANK OF AMERICA, AND I LIKE BERNARD VERY MUCH AND I LIKE THE BANKING BUSINESS FINE, SO WE TOOK THAT UP, BUT WE TOOK THE OVERALL BANK POSITION DOWN. WE DIDN'T WANT TO GO ABOVE 10, AND WE DID WANT TO INCREASE THE B OF A POSITION, BUT WE OVERALL DIDN'T WANT AS MUCH IN BANKS AS WE HAD. THE BANKING BUSINESS WAS WAY BETTER THAN IT WAS IN THE UNITED STATES 10 OR 15 YEARS AGO. THE BANKING BUSINESS AROUND THE WORLD IN VARIOUS PLACES MIGHT WORRY ME, BUT OUR BANKS ARE IN FAR, FAR BETTER SHAPE THAN 10 OR 15 YEARS AGO. BUT WHEN THINGS FROZE FOR A SHORT PERIOD OF TIME, THE BIGGEST THING THE BANKS HAD GOING FOR THEM IS THAT THE FEDERAL RESERVE WAS BUYING THEM. AND THE FEDERAL RESERVE, THEY'RE NOT BEHIND BERKSHIRE. IT'S UP TO US TO TAKE CARE OF OURSELVES. >> THIS QUESTION COMES FROM MATT WHY IN LOS ANGELES. YOU RECENTLY PURCHASED A LARGE STAKE IN VERIZON. FOR EDUCATIONAL PURPOSES COULD YOU EXPLAIN THIS? MANY SEE TELECOM AS -- ONLY FOR THE OTHER TECH COMPANIES TO TAKE ADVANTAGE AND CABTURE MOST OF THE VALUE CREATED LIKE FACEBOOK, UBER, AIRBNB AND DOOR DASH. >> I THINK HE'S ANALYZED THE SITUATION WELL, BUT WE ARE NOT IN THE BUSINESS OF WHY WE OWN A STOCK WHICH WE MIGHT BUY MORE OF, SELL, OR WHO KNOWS. BUT HE'S ON HIS OWN. BUT HE SOUNDS LIKE HE'S VERY CAPABLE OF THINKING IT THROUGH HIMSELF. >> SLAVEN WRITES IN, SENATOR JOSH HAWLEY RECENTLY SIGNED A PROPOSAL THAT WILL BAN -- WHILE THIS LEGISLATION IS UNLIKELY TO GO THROUGH, INCREASING ANTI-TRUST LEGISLATION COULD PRESENT A RESCUE FOR BERKSHIRE. HAS BERKSHIRE'S BOARD DISCUSSED WHAT WOULD HAPPEN OVER THE LONG-TERM IF BERKSHIRE WERE BANNED TO ACQUIRING CONTROLLED BUSINESSES? >> WE DON'T DISCUSS THAT, BUT THE BOARD IS VERY, VERY FAMILIAR WITH WHAT BERKSHIRE DOES, WHY THEY DO IT, YOU KNOW, HOW WE THINK IN DEPLOYING CAPITAL. BUT WE COULD -- EVERYBODY KNOWS THAT IF YOU CHANGE THE ANTI-TRUST LAWS IT COULD CHANGE THINGS FOR BERKSHIRE. IF YOU CHANGE THE -- IT COULD CHANGE THINGS FOR BERKSHIRE. WE COULD SPEND HOURS DISCUSSING THEM, BUT IN THE END, IT IS A 22.3% RISK THAT SOMETHING CHANGES? IT'S A GOOD WAY TO FILL THE TIME AT BOARD MEETINGS, AND IF YOU'RE GETTING $300,000, $400,000, A YEAR AS A BOARD DIRECTOR YOU MIGHT WANT TO SPEND YOUR TIME DOING THAT, BUT WE REALLY DON'T FOCUS ON THAT. THE MAIN THING ABOUT BERKSHIRE IS HOW TO PRESERVE THE CULTURE, HOW TO MAKE SURE IF YOU GET THE WRONG PERSON AS A CEO, YOU CAN DO SOMETHING ABOUT IT. THAT'S THE BIGGEST RISK THE BOARD HAS IS IF YOU PICK THE WRONG CEO. I HAVE BEEN ON 20 BOARDS AND THIS HAPPENED MORE THAN ONCE. SOMETIMES IT'S A TERRIBLE PROBLEM TO GET RID OF THEM. YEARS GO BY, AND, YOU KNOW, IF YOU JUST SIT THERE AND COLLECT YOUR $300,000, $400,000, A YEAR AND THE CHIEF EXECUTIVE KEEPS PROPOSING YOU GET AN INCREASE FROM TIME TO TIME -- AND IT'S WORSE YET IF HE'S A NICE PERSON, YOU KNOW, DOING HIS BEST. IT'S -- BUT WE'RE NOT GOING TO SPEND A LOT OF TIME -- WE MAY DO IT ON A PERSONAL BASIS, BUT WE'RE NOT GOING TAKE A LOT OF PEOPLE -- WE WANT THEM TO KNOW WHAT'S GOING ON WITH BSF AND HOW KATIE'S DOING AND IF THE CASEY THING COULD -- IN A MATERIAL WAY AND SO ON. WE REALLY DON'T -- EXCEPT A PRIVATE SIDE THING, WE DON'T START TALKING ABOUT WHAT THE EFFECTS WILL BE IN 2050 IF THIS PROJECTION OR THAT PROJECTION ISN'T MET. CHARLIE? >> NOTHING TO ADD. >> THIS QUESTION WAS SENT IN BY DON GRAHAM DURING THE MEETING BASED ON SOMETHING YOU SAID EARLIER TODAY. HE SAYS, WHY DOES WARREN SAY BERKSHIRE'S ABILITY TO ENSURE ENORMOUS RISK QUICKLY IS A LESS VALUABLE ASSET THAN IT USED TO BE? >> WELL, BECAUSE THE DEMAND IS LESS, BASICBASICALLY, ON THAT. IF YOU TAKE A PERIOD LIKE HAPPENED AFTER 9/11, I REMEMBER -- I MAY BE WRONG ON THE DETAILS, BUT KAT AID PACIFIC THEY COULDN'T LAND IN HONG KONG UNLESS THEY HAD AN INSURANCE POLICY BY MONDAY OF THE FOLLOWING WEEK. WE CAN DO IT. SHE CALLS ME UP. HE THINKS OF A PRICE. I THINK OF A PRICE. BUT WE CAN DO IT. WE CAN TAKE THE LOSS IF IT HAPPENS. THEY CALLED ME IN THE SEARS TOWER, I THINK, BACK THEN. NOBODY KNEW -- THEY DIDN'T KNOW WEATHER BOMBS MIGHT BE PLACED ALL OVER. SO THEY WANTED MORE INSURANCE ALL OF A SUDDEN AND WE GAVE THEM A PRICE. SO THAT SORT OF AN ENVIRONMENT HASN'T REALLY PERSISTED. THERE WERE TIMES, I THINK, PERHAPS AIG, HE WOULD DO THE SAME THING. BUT THERE WEREN'T 10 OR 20 PEOPLE, AND THEY NEEDED BIG LIMITS IN SOME CASES. AND WE WERE GOOD FOR IT. AND THEY KNEW IF THEY BOUGHT THE INSURANCE AND IT HAPPENED, WE'D WRITE A CHECK AND IT WOULD CLEAR. AJIT, YOU MIGHT HAVE SOMETHING. >> YEAH, IN ADDITION TO THE DEMAND SIDE, THE SUPPLY SIDE HAS BECOME A LOT MORE. COMPETITIVE. A LOT OF PEOPLE WHO CAN PUT UP BIG LIMITS. NOT AS MUCH AS WE DO, BUT THEY CAN PUT UP $1 BILLION PRETTY EASILY. THE COMPETITIVE ADVANTAGE WE HAVE, WE STILL HAVE, BUT IT'S NO LONGER A BIG A DEAL AS IT USED TO BE. >> THIS QUESTION COMES FROM SHAREHOLDER IN SCOTLAND WHO WANTS TO KNOW, WARREN, CHARLIE AND GREG'S VIEWS ON HOW KRAFT HEINZ HAS PERFORMED OVER THE LAST 12 MONTHS COMPARED TO THE DISAPPOINTING PERFORMANCE PRECOVID AND WHAT ARE YOUR LONG-TERM VIEWS ON KRAFT HEINZ PROSPECTS? >> WELL, I THINK THAT GREG'S ON THE BOARD, SO HE MIGHT -- I DON'T KNOW THAT WE'RE IN A POSITION TO GIVE ADVICE ON KRAFT HEINZ. WE ENTERED A -- IN EFFECT, A SEMIFORMAL PARTNERSHIP WITH 3G MANY YEARS AGO WHEN IT WAS JUST THE HEINZ DEAL AND WENT ON TO ACQUIRE KRAFT. WE'RE THEIR PARTNERS, AND THEY'VE DONE MORE THAN -- THEY HOLD UP THEIR SHARE, AND WE DO WHAT WE SAID WE'D DO GOING IN, WHICH IS TO BE A FINANCIAL PARTNER, AND THEY'RE MORE OF THE OPERATING PARTNER. WE PARTICIPATE TO A DEGREE IN ANY BIG DECISIONS. AND THEY WOULD LISTEN TO US. BUT WE'RE NOT MAKING ANY -- IN TERMS OF KRAFT HEINZ STOCK, THAT'S UP TO SOMEBODY ELSE TO EVALUATE. >> THE ONLY THING I WOULD ADD, WARREN, IS I THINK WE'RE VERY COMFORTABLE WITH THE FACT THAT THEY PUT A STRONG MANAGER IN PLACE IN MIGUEL, AND HE'S PUT A VERY GOOD TEAM IN PLACE AT KRAFT HEINZ, SO WE'RE PLEASE AT WITH THE LEADERSHIP AND AND MANAGEMENT TEAM AND THEY'RE FOCUSED ON EXECUTING AND THEY'VE GONE FORWARD IN RATIONALIZING THEIR CAPITAL STRUCTURE AND MANAGING THEIR DEBT STRUCTURE, SO PLEASED WITH THE PATH FORWARD. >> YEAH, WE FEEL BETTER ABOUT THE -- ONE OF THE -- THIS IS A MORE GENERAL SUBJECT, BUT ONE OF THE SUBJECTS I MIGHT WRITE ABOUT IN THE FUTURE REPORTS IS THE PROBLEMS CAUSED BY THE MYTHS THAT PEOPLE HAVE ABOUT THEIR OWN ORGANIZATIONS AND I'VE SEEN THAT SO MANY TIMES IN VARIOUS FORMS. TO SOME EXTENT, THE PROBLEM HAS BECOME ACCENTUATED IN THE LAST 20 OR 30 YEARS BECAUSE THE CEO OFTEN WORKS WITH INVESTOR RELATIONS. THEY SAY, WE HAVE TO HAVE CONSTANT CONTACT WITH THE ANALYST COMMUNITY SOME THEY GO ON EVERY COUPLE OF MONTHS AND REPEAT CERTAIN THINGS ABOUT THEIR COMPANY, AND IT BECOMES PART OF -- SORT OF THE CAT CATECHISM. NOBODY'S GOING ON TWO MONTH'S THE CEO SAID ONE THING AND SAY, THAT ACTUALLY REALLY ISN'T THE WAY. THEY ARE NOT GOING TO CHANGE COURSE. SO IF YOU GET THESE MYTHS, AND THEY CAN OCCUR IN A LOT OF DIFFERENT WAYS. I CAN GIVE A LOT OF EXAMPLES, WHICH I WON'T DO. WON'T TELL MY FRIENDS IN CORPORATE, GOING TO SQUEAL ON THEM. BUT THERE'S A LOT OF MYTHOLOGY THAT GETS HANDED DOWN FROM ONE CEO TO THE NEXT, AND THE SUCCEEDING CEO, SAY, THE GUY THAT PICKS HIM, YOU KNOW, WAS ON THE WRONG COURSE OR HAS BEEN TELLING YOU SOMETHING SMG THAT ISN'T TRUE. THEN HE STARTS REPEATING IT, AND IT LEADS TO ENORMOUS ERRORS. BUT IT'S HARD TO TELL THE STORY WITHOUT GIVING EXAMPLES, AND I DON'T LIKE TO GIVE EXAMPLES. SO WE'LL SEE WHEN I WRITE ABOUT IT SOMETIME. CHARLIE, YOU'VE PROBABLY GOT SOME THOUGHTS. HE'S HAD A RINGSIDE SEAT TO A LOT OF -- HE'S BEEN ON BOARDS I HAVEN'T BEEN ON. EXTENDS BEYOND BUSINESS TO EDUCATION AND TO, WELL, A LOT OF AREAS. >> WHAT'S REALLY INTERESTING IS THE WAY YOU PRATTLE OUT ALL THE TIME, YOU'RE POUNDING BACK IN EVEN IF IT'S WRONG. SO ONE OF MY FAVORITE REMARKS IN THE HISTORY OF HUMAN REMARKS WAS BY SIR CEDRIC HARDWICK WHO IS A GREAT BRITISH ACTOR. HE SAID, I HAVE BEEN A GREAT ACTOR FOR SO LONG THAT I NO LONGER KNOW WHAT I TRULY THINK ON ANY SUBJECT, AND I THINK THAT HAPPENS TO A LOT OF PEOPLE, AND IT HAPPENS TO VIRTUALLY EVERY POLITICIAN. >> AND IT GETS EMBEDDED IN CORPORATIONS. AND THE TROUBLE IS NOW THE CEOS SPEAK OUT SO OFTEN -- SO IF THEY'VE GOT SOME CRAZY THING THEY'RE SAYING ABOUT THEIR COMPANY AND THEY KEEP REPEATING IT, THE SUBORDINATES AREN'T GOING TO -- AND CHARLIE SAID, THEY JUST BELIEVE IT AFTER A WHILE. AND IT'S DANGEROUS. >> YES, AND OBVIOUSLY THE YOUNG PEOPLE GET THESE IDEAS AFTER THEIR LIBERAL EDUCATIONS, THINK THAT GOD HAS GIVEN THEM DIRECT INSIGHTS, AND THEY'RE JUST AS CRAZY AS THE POLITICIANS. >> THERE ARE SOME OLD PEOPLE THAT HAVE THAT, TOO. >> WELL, THE OLD PEOPLE ARE ALREADY CRAZY, BUT -- >> THEY'RE GOING TO DIE SOONER, SO -- >> WE HAVE OUR OLD INSANITIES. THE NEW INSANITIES, THE YOUNG GET. >> ALL RIGHT, THIS QUESTION COMES FROM BILL BEGLEY WHO SAID, COULD YOU TELL US WHAT HAPPENED TO THE JOINT VENTURE BETWEEN BERKSHIRE -- AND AMAZON ABOUT HEALTH-CARE IN THE UNITED STATES. THE ONLY ITEM I READ WAS IT WAS DISBANDED. DO YOU HAVE ANYTHING TO BE LEARNED AFTER YOUR EFFORT? >> WE LEARNED A LOT ABOUT CHANGING AROUND AN INDUSTRY THAT'S 17% OF GDP, AND WE LEARNED -- WE ACCOMPLISHED A LESSER OBJECTIVE, WHICH WAS PROBABLY MORE IMPORTANT TO US EVEN THAN J.P. MORGAN OR AMAZON, BECAUSE WE KNEW LESS ABOUT OUR OWN SYSTEM THAN THEY DID. THEY KNEW -- THEY'RE A MORE CENTRALIZED OPERATION, SO WE GOT SOME BENEFITS IN THE SENSE THAT WE LOOKED AT 60 OR 70 DIFFERENT OPERATIONS WE HAD PRESENTLY, AND THAT'S ONE CASE WHERE A CERTAIN AMOUNT OF CENTRALIZATION, AT LEAST IN CERTAIN ASPECTS OF IT, COULD SAVE REAL MONEY. I MEAN, WE FOUND INEFFICIENCIES, AND LIKE I SAY, WE PROBABLY SAVED MORE THAN THE OTHER TWO PARTNERS, BECAUSE THEY KNEW THEIR SITUATION BETTER. WE FOUND SOME DUMB THINGS WE WERE DOING. SO WE GOT OUR MONEY'S WORTH, BUT IN TERMS OF THE BIG PICTURE OF CHANGING SOMETHING, THAT SO MANY PEOPLE HAVE A VESTED INTEREST IN DOING AND THERE'S ONE ADDITIONAL FACTOR TO IT WHICH IS REALLY INTERESTING. THERE'S AN INGENIUS ASPECT TO IT AND IT GOES BACK TO A FELLOW NAMED -- WHICH DOESN'T HAVE ANY DIRECT CONNECTION, BUT BEARDSLY RUMLE. NOBODY'S EVER HEARD OF BEARDSLY RUMMEL, SO HE CAME UP WITH THE IDEA OF THE HOLDING ATTACKS. INSAID TO OF APRIL 15th PEOPLE HAVING TO WRITE A CHECK AND THINKING OF HOW THEY HATED THEIR GOVERNMENT, THEY LOOKED AT IT AS A CHRISTMAS CLUB, THEY GOT A CHECK WHEN THE FINAL PAYMENT CAME DUE. SO WHEN YOU AREN'T WRITING THE CHECK YOURSELF, YOU MAY KNOW THAT THE HEALTH BENEFIT FROM YOUR COMPANY IS WORTH $10,000 A YEAR TO YOU OR $15,000 AND MAY COST THEM THAT MUCH, BUT IT MAY COST THE COMPANY THAT MUCH, BUT YOU DON'T SEE IT. SO THE COMPANY PAYS IT, AND MOST OF THE PEOPLE IN THAT WAITING ROOM SITTING NEXT TO ME, THEY ARE NOT SITTING THERE THINKING ABOUT WHETHER I CAN AFFORD TO DO THIS, YOU KNOW, OR WHAT'S THIS GOING TO DO? THEY'RE GENERALLY UNDER SOME KIND OF A PLAN. NOT ALWAYS, OBVIOUSLY, BUT THEY DON'T THINK IF THE COMPANY WASN'T PAYING THEM THAT THEY COULD PAY THAT IN ADDITIONAL COMPENSATION. BUT OF COURSE THE WEIRD SYSTEM IS THE COMPANY GETS A DEDUCTION IF THEY PAY IT, BUT IF YOU PAY IT YOURSELF ON A POLICY I DON'T BELIEVE YOU GET A DEDUCTION. SO IT'S SOMETHING THAT'S -- MOST OF THE PEOPLE ARE NOT SEEING AS A COST TO THEM, AND THEY LIKE THAT PRETTY WELL. >> NO KIDDING. >> WELL, BUT THAT'S TRUE. THE FEDERAL INCOME TAX WAS AN ACT OF GENIUS FROM THE GOVERNMENT TO GO TO A WITHHOLDING SYSTEM, AND IF YOU DIDN'T, JUST THINK ABOUT HOW MANY PEOPLE ON APRIL 15th WOULD HAVE TO SIT DOWN AND WRITE A PRETTY GOOD SIZE CHECK AND THEY WOULD BE MAD. AND THEY DON'T FEEL IT NOW. SO WE WERE UP -- THAT'S AN OBVIOUS POINT, BUT YOU ALSO -- PEOPLE LIKE THEIR DOCTOR IN GENERAL, AND THEY DON'T LIKE THE FACT THAT IT'S 17% OF GDP, BUT ONE IS JUST KIND OF AN AMORPHUS THING AND THE OTHER IS PRETTY ISRAEL AND THE MOST PRESTIGIOUS PEOPLE IN THE COMMUNITY ARE ON THE HOSPITAL BOARDS. A LOT OF PEOPLE THAT ARE FAIRLY HAPPY WITH THE SYSTEM, SO WE DID NOT MAKE INROADS ON THAT, AND WE ARE PAYING 17% OF GDP PER HEALTH CARE, AND NO MAJOR COUNTRY IS MORE THAN 11%, AND IN THE PANDEMIC, YOU KNOW, WE HAVE HAD A DEATH RATE -- OR A DEATH TOTAL, AS A PERCENTAGE OF POPULATION, THAT'S WAY HIGHER THAN THE REST OF THE WORLD. NOT EVERY SINGLE COUNTRY, BUT WAY HIGHER. SO SO, YOU KNOW, WE'VE LAID OUT MORE MONEY AND GOT A WORST RESULT IN TERPS OF THIS PARTICULAR PANDEMIC. >> EVEN THOUGH YOU SHOT AND MISSED, YOU WERE AT LEAST SHOOTING AT AN ELEPHANT. THE COST OF HEALTH CARE IN SINGAPORE IS 20% OF WHAT IT IS IN THE UNITED STATES, AND THEIR MEDICAL SYSTEM WORKS BETTER. SO YOU WERE AT SHOOTING AT A HU ELEPHANT. >> BUT AS YOU FOUND OUT, IT'S HARD TO GET ENTHUSIASTIC ABOUT PEOPLE LOSING PART OF THEIR INCOME. >> I SAID WE WERE FINDING A TAPEWORM IN THE AMERICAN ECONOMY, AND THE TAPEWORM WON. >> THAT'S EXACTLY IT. WONDERFUL PHRASE TAPEWORM. I'LL HAVE TO COPY THAT. >> WELL, IT WASN'T A PHRASE WE WERE LOOKING FOR. >> THIS QUESTION COMES IN FROM MARK BLINKLY IN TULSA. THIS IS FOR WARREN AND CHARLIE. WHEN WE DISCUSS BERKSHIRE WE OFTEN FOCUS ON THE INSURANCE OPERATIONS AND THE LARGEST NONINSURANCE BUSINESSES. THE REDWOODS AS YOU MENTIONED IN 2019. HOWEVER, BERKSHIRE OWNS A LARGE NUMBER OF SUBSIDIARY BUSINESSES, MOST OF WHICH ARE NEVER MENTIONED. IS THERE A POINT AT WHICH IT BECOMES TOO HARD TO MANAGE AND SHOULD -- A LACK OF INFORMATION FOR MOST COMPANIES? IS THERE A TIME WHEN BERKSHIRE IS TOO LARGE AND TOO COMPLEX? >> IT'S TOO LARGE TO DO CERTAIN THINGS. THAT'S FOR SURE. WE CAN'T SPEND OUR TIME LOOKING FOR $100 MILLION ACQUISITIONS. BUT WE HAVE A WONDERFUL COMPANY IN FT. WORTH, AND WE HAD A MARVELOUS MAN RUNNING IT. HE DIED RECENTLY. BUT HE RAN IT UNTIL 15 YEARS AGO. HE JUST BASICALLY RAN IT. I COULDN'T FIND MY WAY TO THE COMPANY. WE'VE GOT THIS TERRIFIC COMPANY THAT MAKES RECREATIONAL VEHICLES BASED IN INDIANA, AND WE BOUGHT IT 15 YEARS AGO. I'VE NEVER BEEN THERE. MAYBE THERE'S SOME KIND OF CLOSET MAKING UP NUMBERS TO SEND TO ME, BUT I FEEL I UNDERSTAND THE BUSINESS PRETTY WELL, BUT I'VE NEVER SEEN IT AND THE FELLOW THAT RUNS IT LIKES RUNNING IT AND LIKES ME KEEPING MY NOSE OUT OF IT. HE'LL LET GREG IN A LITTLE MORE THAN HE'LL LET ME. BUT WE'VE GOT A SYSTEM THAT WILL WORK WITH WONDERFUL BUSINESSES AND WONDERFUL MANAGERS. AND IT'S UP TO US TO FIND THEM. BUT IT'S ALSO US TO NURTURE THEM WHEN WE FIND THEM. AND IF YOU'LL GET SOMEBODY LIKE PAUL ANDREWS WHO RAN TTI AND WHO BUILT IT FROM NOTHING, ABSOLUTELY NOTHING, AND NOBODY EVER HEARD OF HIM, AND THE EARNINGS HAVE OCTUPLED DURING THE PERIOD HE RAN IT FOR US. HE WAS HAPPY, THE EMPLOYEES WERE HAPPY. HE WAS A WONDERFUL MAN. WE WERE HAPPY. AND I'D CALL HIM AT THE END OF THE YEAR AND SAY, PAUL, THIS PLACE IS -- YOU'RE SHOOTING THE LIGHTS OUT. YOU SHOULD TAKE A RAISE OR A BONUS. HE'D SAY, WE'LL TALK ABOUT THAT NEXT YEAR. HE JUST LOVED THE BUSINESS. I LOVED BERKSHIRE. HE LOVED THE BUSINESS. AND I WASN'T GOING TO ADD ANYTHING BY HAVING HIM FILL OUT A BUNCH OF REPORTS ABOUT HOW MUCH HE'S USING IN THE WAY OF CARBON OR THE -- YOU KNOW, IT'S JUST RIDICULOUS THINK OF A GUY LIKE PAUL ANDREWS BEHAVING IN AN ANTI-SOCIAL MANNER OF ANYTHING OF THE SORT. AND WE'D LOVE TO HAVE MORE OF THOSE, AND OBVIOUSLY WE GOT BIGGER, THEY GET HARDER TO BUY. BUT WE'VE GOT A NUMBER IN THE PLACE, AND I DON'T THINK WE BOUGHT OUR LAST ONE OVER TIME, BUT I CERTAINLY DON'T SEE ANYTHING IN THE NEAR FUTURE AT ALL. BUT WE'RE INTENSIFYING OUR INTEREST IN PURCHASING SHARES. OUR SHAREHOLDERS OWN MORE IN THE COMPANIES EVERY YEAR, ASSUMING WE'RE REPURCHASING SHARES, WHICH IS PRICE SENSITIVE. >> CHARLIE? >> YEAH, I DON'T THINK WE'RE GETTING TOO BIG TO MANAGE, BECAUSE WE'RE DIFFERENT FROM PRACTICALLY EVER OTHER CORPORATION IN THE UNITED STATES IN THAT WE ARE SO EXCESSIVELY DECENTRALIZED. WE HAVE DECENTRALIZED SO MUCH AND SO MUCH AUTHORITY IN THE SUBSIDIARIES THAT WE CAN KEEP DOING IT FOR A LONG, LONG TIME, AS LONG AS IT KEEPS WORKING. I WOULD SAY SO FAR OUR DECENT RALIZATION HAS -- THAT'S TRUE, BUT I CAN SAY THIS, DECENT RAL IZATION WON'T WORK IF YOU DON'T HAVE TO RIGHT CULTURE. >> YEAH, BUT WE DO, AND GREG WILL KEEP WORKING ON THE CULTURE. >> IF WE HAD A CULTURE OF PEOPLE TRYING TO MAKE A LOT OF MONEY FOR THEMSELVES IN THE NEXT FIVE YEARS AT THE TOP, I WOULD NOT HAVE WORKED. >> NO, OF COURSE NOT. THE CULTURE IS PART OF IT. ASSUMING WE KEEP THE CULTURE, THE GO ON A QUITE A WAYS. LONG, LONG TIME. I THINK IT WILL AMAZE EVERYBODY. BY THE WAY, THE ROMAN EMPIRE WORKED AS LONG AS IT DID BECAUSE IT WAS SO DECENTRALIZED. >> AS CHARLIE SAID, WE WON'T KNOW. >> THIS QUESTION COMES FROM KEVIN YOUNG. IT'S FOR AJIT AND GREG. WARREN SPENDS THE DAY READING AND HIS WORK OF CHOICE IS ANNUAL REPORTS. HOW DO EACH OF YOU SPEND YOUR DAYS? WHAT DO YOU READ AND HOW DO YOU REACH INVESTMENT DECISIONS? >> WELL, IN MY JOB I SPEND A LOT OF MY TIME READING DEALS THAT BROKERS AND PEOPLE SEND US. READING WHAT THEY'RE PROPOSING, TRYING TO ANALYZE THEM, HAVING A POINT OF VIEW. IT IS SOMETHING THAT IS OF INTEREST TO US OR NOT. I MIGHT ADD, I DO NOT SPEND A LOT OF TIME READING REPORTS BECAUSE I'M NOT IN THE STOCK MAKING BUSINESS PER SE. BUT IN TERMS OF KEEPING TRACK OF WHAT'S GOING ON IN THE INSURANCE BUSINESS, THAT'S WHAT 90% OF MY READING IS ABOUT. GREG? >> YEAH. SO GENERALLY TODAY WHAT I FOCUS ON WHEN READING IS REALLY AROUND OUR BUSINESSES. WHAT INDUSTRIES ARE IN. TRYING TO UNDERSTAND WHAT OUR COMPETITORS ARE DOING, WHAT'S THE RISK AROUND THE BUSINESSES, HOW THEY'RE GOING TO GET DISRUPTED AND IT ALWAYS COMES BACK TO, ARE WE ALLOCATING CAPITAL CORRECTLY RELATIVE TO THE RISKS WE'RE SEEING BOTH IN BUSINESS AND INDUSTRY? SO, A LOT OF TIME SPENT ON THAT AND AS THAT KNOWLEDGE IS BUILT IT'S SHARING IT BACK AND FORTH WITH MANAGEMENT TEAMS WITH RELATIVE SUBSIDIARIES AND SORT OF FINE TUNING IT IS REALLY THE APPROACH. >> BOTH OF THESE FELLOWS CAN ABSORB INFORMATION TO AN EXTRAORDINARY DEGREE. I MEAN, THEY HAVE -- FOR ONE THING, THEY'RE TERRIBLY INTERESTED IN IT. AND IT'S THEIRS. SO I'M AMAZED AT BOTH OF THEM, THE DEGREE WITH WHICH THEY SORT OF KNOW EVERYTHING. AND -- BUT THEY ENJOY IT. THEY'RE NOT THINKING ABOUT WHETHER THEY'LL GET THE NEXT JOB THAT OPENS UP AT SOME HUGE MACE OR ANYTHING LIKE THAT. NOBODY LEAVES US, BASICALLY. THE ONES WE WANT. BUT YOU REALLY GOT TO KIND OF BE IN LOVE WITH YOUR BUSINESS, AND THAT MAKES A HUGE DIFFERENCE. THAT MEANS THAT WE'VE GOT TO HAVE THE CONDITIONS THAT ALLOW THAT LOVE TO FLOURISH. AND IT WOULDN'T FLOURISH UNDER MANY -- WITH MANY ORGANIZATIONS. >> THIS QUESTION COMES FROM ROBERT MILES IN NEBRASKA. THE TRADING APPS, WHAT DO YOU THINK ABOUT ROBIN HOOD AND OTHER TRADING APPS OR FIN TECH COMPANIES ALLOWING ALL AGES TO PARTICIPATE IN THE STOCK MARKET? >> WELL, I'M LOOKING FORWARD TO READING THE S-1 ON ROBIN. THAT'S A BIG THING YOU FILE WITH THE S.E.C. WHEN YOU'RE GOING TO BE OFFERING SECURITIES. AND IT'S -- YOU KNOW, IT'S BECOME A VERY SIGNIFICANT PART OF THE CASINO ASPECT, OF THE CASINO GROUP THAT HAS JOINED INTO THE STOCK MARKET IN THE LAST YEAR OR YEAR AND A HALF. AND I DO WANT TO SAY I WAS CNCERNED ABOUT HOW THEY HAND IT WILL SOURCE OF INCOME. THEY SAY THEY DON'T CHARGE THE CUSTOMER OR ANYTHING. THIS WILL BE INTERESTING. BUT THEY -- THEY -- HAVE ATTRACTED -- MAYBE SET OUT TO ATTRACT, BUT THEY HAVE ATTRACTED -- I THINK I READ WHERE 12% OR 13% OF THEIR CASINO PARTICIPANTS WERE DEALING IN -- I LOOKED UP ON APP IT WILL NU -- APPLE, THE NUMBER OF SEVEN-DAY CALLS AND 1446 DAY CALLS OUTSTANDING. AND I'M SURE A LOT OF THAT IS ON ROBIN HOOD. THEY'RE GAMBLING ON THE PRICE OF APPLE. THERE'S NOTHING ILLEGAL ABOUT IT, THERE'S NOTHING IMMORAL, BUT I DON'T THINK YOU'D BUILD A SOCIETY AROUND PEOPLE DOING IT. IF A GROUP OF US LANDED ON A DESERT ISLAND, KNEW WE WOULD NEVER BE RESCUED AND I WAS ONE OF THE GROUP AND SAID, I'LL SET UP AN EXCHANGE OVER HERE AND I'LL TRADE OUR CORN FUTURES AND EVERYTHING AROUND IT, I THINK THE DEGREE TO WHICH A VERY RICH SOCIETY CAN REWARD PEOPLE WHO KNOW HOW TO TAKE ADVANTAGE, ESSENTIALLY, OF THE GAMBLING INSTINCTS OF NOT ONLY THE AMERICAN PUBLIC, THE WORLDWIDE PUBLIC, IT, YOU KNOW, IT'S NOT THE MOST ADMIRABLE PART OF THE ACCOMPLISHMENT. BUT I THINK WHAT AMERICANS ACCOMPLISHED IS PRETTY ADMIRABLE OVERALL. AND I THINK ACTUALLY AMERICAN CORPORATIONS HAVE TURNED OUT TO BE A WONDERFUL PLACE FOR PEOPLE TO PUT THEIR MONEY AND SAVE. BUT THEY ALSO MAKE TERRIFIC GAMBLING CHIPS, AND IF YOU CATER TO THOSE GAMBLING CHIPS WHEN PEOPLE HAVE MONEY IN THEIR POCKET FOR THE FIRST TIME AND YOU TELL THEM TAKE MY 30 OR 40 OR 50 TRADES A DAY AND YOU'RE NOT CHARGING COMMISSION -- I HOPE WE DON'T HAVE MORE OF IT. AND I WILL BE INTERESTED IN READING THE PERSPECTIVES. CHARLIE? >> WELL, THAT IS REALLY WAVING THE RED FLAG AT THE BULL. IT'S JUST GOT AWFUL THAT SOMETHING LIKE THAT WOULD DRAW INVESTMENT FROM CIVILIZED MAN AND DECENT CITIZENS. IT'S DEEPLY WRONG. WE DON'T WANT THE MAKE OUR MONEY SELLING THINGS THAT ARE BAD FOR PEOPLE. >> BUT WE'VE GOT THE STATE DOING IT WITH THE LOTTERY. >> BUT THAT'S BAD, TOO. THAT'S VERY BAD. THAT'S VERY BAD. THAT'S ONE OF THE THINGS THAT'S WRONG WITH IT -- IT'S GETTING RESPECTABLE TO DO THESE THINGS. THE STATES ARE JUST AS BAD AS ROBIN HOOD. >> WELL, IN A SENSE THEY'RE WORSE. I MEAN, THEY'RE REALLY TAXING. >> I KNOW IT'S -- I KNOW, I KNOW. >> THEY'RE TAXING HOPE. >> NOT ONLY THAT -- >> AND THEY DON'T GET MUCH IN THE WAY OF TAXES. >> THE STATES IN AMERICA REPLACED THE MAFIA AS THE P PROPRIETOR OF THE NUMBERS GAME. THAT'S WHAT HAPPENED. THEY PUSHED THE MAFIA ASIDE AND SAID, THAT'S OUR BUSINESS, NOT YOURS. DOESN'T MAKE ME PROUD OF OUR GOVERNMENT. >> WHEN I WAS A KID BY DAD WAS IN CONGRESS AND THEY HAD A NUMBERS RUNNER IN THE OFFICE. >> I WILL ASK THE QUESTION. FROM RAW MATERIAL PURCHASES BY BERKSHIRE SUBSIDIARIES ARE YOU SEEING SIGNS OF INFLATION BEGINNING TO INCREASE? >> LET ME ANSWER THAT AND THEN GREG CAN GET MORE -- WE'RE SEEING SUBSTANTIAL INFLATION. IT'S INTERESTING. WE'RE RAISING PRICES. PEOPLE ARE RAISING PRICES TO US. AND IT'S BEING ACCEPTED. I MEAN, IT'S NOT -- IF WE GET -- WELL, YOU KNOW, TAKE-HOME BUILDING. THE COST OF -- WE'VE GOT NINE HOME BUILDERS IN ADDITION TO MANUFACTURED HOUSING AND OPERATION WHICH IS THE LARGEST IN THE COUNTRY, SO WE REALLY DO A LOT OF HOUSING. THE COSTS ARE JUST UP, UP, UP. STEEL COSTS. YOU KNOW, JUST EVERY DAY THEY'RE GOING UP. AND THEY'RE HASN'T YET BEEN, BECAUSE THE WAGE STUFF FOLLOWS. I MEAN, IF THE UAW WRITES A THREE-YEAR CONTRACT, YOU'VE GOT A THREE-YEAR CONTRACT, BUT IF YOU'RE BUYING STEEL AT GENERAL MOTORS OR SOME PLACE YOU'RE PAYING MORE EVERY DAY. SO IT'S -- IT'S AN ECONOMY REALLY -- IT'S RED-HOT. AND WE WEREN'T EXPECTING IT. ALL OF COMPANIES THEY THOUGHT WHEN THEY WERE ALLOWED TO GO BACK TO WORK OR OPERATIONS -- WHEN WE CLOSED THE FURNITURE STORES, THEY WERE CLOSED FOR SIX WEEKS OR SO ON AVERAGE, AND THEY DIDN'T KNOW WHAT WAS GOING TO HAPPEN WHEN THEY OPENED. THEY CAN'T STOP PEOPLE FROM BUYING THINGS. AND WE CAN'T DELIVER THEM. THEY SAY, THAT'S OKAY, NOBODY ELSE CAN DELIVER THEM EITHER. WE WAIT FOR THREE MONTHS. THE BACKLOG GROWS. AND THEN WE THOUGHT IT WOULD END WHEN THE $600 PAYMENTED ENDED. AROUND AUGUST OF LAST YEAR. JUST KEPT GOING, AND IT KEEPS GOING AND KEEPS GOING AND KEEPS GOING. AND I GET THE FIGURES. EVERY WEEK I CALL OR HE CALLS ME AND WE GO OVER DAY BY DAY WHAT HAPPENED AT THREE DIFFERENT SCORE STORES IN CHICAGO AND KANSAS CITY, AND DALLAS. AND IT JUST WON'T STOP. PEOPLE HAVE MONEY IN THEIR POCKET, AND THEY PAY HIGHER PRICES. AND WHEN CARPET PRICES GO UP IN A MONTH OR TWO, HOUSE PRICE INCREASE, ART COSTS ARE GOING UP. SUPPLY CHAINS ALL SCREWED UP FOR ALL KINDS OF PEOPLE. BUT IT'S ALMOST A BUYING FRIENZ, EXCEPT CERTAIN PLACE US CAN'T BUY YET. YOU CAN'T BY INTERNATIONAL TRAVEL. SO MONEY IS BEING DIVERTED FROM A PIECE OF THE ECONOMY INTO THE REST AND EVERYBODY'S GOT MORE CASH IN THEIR POCKET, EXCEPT FOR MEANWHILE, YOU KNOW, IT'S A TERRIBLE SITUATION FOR A PERCENTAGE OF THE PEOPLE. YOU KNOW, THIS SUIT -- I HAVEN'T WORN A SUIT, YOU KNOW, FOR A YEAR PRACTICALLY, AND THAT MEANS THAT THE DRY CLEANER JUST WENT OUT OF BUSINESS. NOBODY'S BRINGING IN SUITS TO GET DRY CLEANED AND NOBODY'S BRINGING IN WHITE SHIRTS TO GET -- THE SMALL BUSINESS PERSON, IF YOU DIDN'T HAVE TAKEOUT AND DELIVERY SERVICES FOR RESTAURANTS, YOU GOT KILLED. ON THE OTHER HAND, IF YOU'VE GOT TAKEOUT FACILITIES THEN, YOU KNOW, SALES ARE UP A WHOLE LOT. THEY ADAPTED. BUT IT'S -- IT IS NOT A PRICE SENSITIVE ECONOMY RIGHT NOW AT IN LEAST, AND I DON'T KNOW EXACTLY HOW ONE SHOWS UP IN DIFFERENT PRICE INDICES. BUT THERE'S MORE INFLATION GOING ON, QUITE A BIT MORE INFLATION GOING ON THAN PEOPLE WOULD HAVE ANTICIPATED SIX MONTHS AGO OR THEREABOUTS. >> THERE'S ONE VERY INTELLIGENT MAN WHO THINKS IT'S DANGEROUS, AND THAT'S JUST THE START. >> GREG, YOU PROBABLY ARE IN A GOOD POSITION. >> I THINK YOU TOUCH ON IT. WHEN WE LOOK AT STEEL PRICES, TIMBER PRICES, PETROLEUM OUTPUT, FUNDAMENTALLY THERE'S PRESSURE ON THE RAW MATERIALS. I THINK YOU TOUCH ON SOMETHING, WARREN, THERE'S A SCARCITY OF PRODUCT OF CERTAIN RAW MATERIALS. IT'S IMPACTING PRICE AND ABILITY TO DELIVER THE END PRODUCT, BUT THAT SCARCITY FACTOR IS REAL OUT THERE AS OUR BUSINESSES ADDRESS THAT CHALLENGE. AND IT MAY BE SOME OF THAT HAS ARISEN FROM THE STORM WE PREVIOUSLY DISCUSS IN THE TEXAS. WHEN YOU TAKE DOWN. THAT PLANTS, WE'RE SEEING IT IN PRICE BUT OVERALL SCARCITY OF PRODUCT, WHICH OBVIOUSLY GO TOGETHER. BUT THERE'S CHALLENGES, THAT'S FOR SURE. >> THIS QUESTION COMES FROM B.J. CORALA. WHAT DO YOU THINK OF KWANS? JIM SIMONS -- PROVES THAT IT WORKS. WOULD YOU CONSIDER HIRING A LIEUTENANT TO WORK WITH TODD OR TED? >> I'LL SAY NO TO THE FIRST PART AND PROBABLY KNOW TO THE SECOND PART. >> THAT'S RATHER INTERESTING. THE THING IT DID FABULOUSLY ON THE SHORT-TERM TRADING, THEY FOUND LITTLE ALGORITHMS THAT WORKED TO MAKE THEM -- HAD PREDICTIVE VALUE, AND AS LONG AS THEY KEPT WORKING, THEY KEPT DOING IT AS LONG AS THE MONEY KEPT COMING IN. THEY HAVE TO USE THE SAME SYSTEM TO FIND SOME LITTLE ALGORITHM I'M GOING MECHANICALLY FOR LONG-TERM STOCK PREDICTIONS THE RECORD WAS NOT NEARLY AS GOOD. AND IN THE SHORT-TERM STUFF, THEY FOUND IF THEY TRIED TO DO IT TOO MUCH THEY DESTROYED THEIR OWN ADVANTAGE. THERE WAS A LIMIT ON THE AMOUNT THEY COULD MAKE. >> BUT THEY WERE VERY, VERY SMART. >> YES, THEY GOT VERY RICH. >> VERY SMART. >> VERY SMART AND VERY RICH AND VERY HIGH GRADE, BY THE WAY. >> BUT WE'RE NOT TRYING TO MAKE MONEY TRADING STOCKS. WE DON'T THINK WE KNOW HOW TO DO IT. IF WE KNEW HOW TO MAKE A LOT MORE MONEY TRADING STOCKS WE'D PROBABLY BE TRADING STOCKS, TOO, BUT WE DON'T KNOW HOW TO DO IT AND DON'T TRUST ANYBODY ELSE TO DO IT FOR US. IT'S THAT SIMPLE. >> THIS QUESTION COMES FROM RICHARD WARNER. MR. BUFFET ESPOUSED FOR DECADES THE PHILOSOPHY OF BUY AND HOLD OR HOLD FOREVER WAS TOO SHORT OF A TIME PERIOD. WAS IT A MISCONCEPTION ON MY PART OR HAVE THINGS CHANGED? THERE SEEMS TO BE MORE EQUITY ON THE PORTFOLIO LATELY. >> I DON'T THINK IT'S CHANGED. >> IT'S TOO MUCH. IT'S THE SAME AMOUNT. IT'S STILL TOO MUCH. >> I'D AGREE WITH THAT. THE TRUTH IS, WE OWN -- OUR BUSINESSES ARE EQUITIES, SO WE OWN $400 BILLION OR $500 BILLION, MAYBE MORE IN BUSINESSES. WE DON'T TURN THEM OVER AT ALL. WE DON'T SELL BUSINESSES. WE COULD PROBABLY -- WE WON'T EVEN GET INTO WHAT WE COULD DO, BUT WE DON'T DO IT. AND WE DO RELATIVELY -- AS CHARLIE SAYS WE'D DO BETTER IF WE -- NOT WE -- IF I'D DUMP US. >> THIS IS FROM DANIEL GAUTHIER. WARREN BUFFET'S 2013 LETTER IN MIDDLE OF PAGE 21 MADE A PREDICTION THAT THE IN THE NEXT DECADE YOU'LL SEE BAD NEWS ABOUT PENSIONS. GIVEN RECENT EVENTS LIKE COVID-19 AND THAT 2023 IS TWO YEARS AWAY, WOULD MR. BUFFET LIKE TO COMMENT OR ARE A VISE HIS PREDICTION? CAN COVID-19 ELIMINATE, DELAY, ACCELERATE OR NOT CHANGE IT? >> WELL, IN A TERRIBLE WAY, COVID IMPROVES THE PENSION POSITION, BECAUSE IT'S -- YOU KNOW, YOU HAVE LESS PENSIONERS. BUT THE PENSION SITUATION IS TERRIBLE IN A GREAT MANY STATES. IT'S NOT IS BAD AT THE -- LEVEL. THERE ARE SOME MULTIEMPLOYER PLANS THAT HAVE GOT PROBLEMS, BUT BASICALLY IT'S A TERRIBE PROBLEM IN SOME STATES AND STATES ARE GOING TO GO TO WASHINGTON AND SAY, WE WANT TO GET A LOT OF MONEY BECAUSE WE HAD THESE TERRIBLE THINGS HAPPEN TO US DURING THE PANDEMIC, WHICH THEY DID, BUT SOME OF THOSE STATES ARE ENORMOUS PENSION DEFICITS, AND THEY'LL COME AGAIN. IF THEY GET A CHECK ONCE. IT MAY TURN OUT TO BE A FEDERAL OBLIGATION, DE FACTO OR SOMETHING, THAT A STATE -- IT HAS NOT GOTTEN BETTER. IT HAS NOT GOTTEN BETTER AT ALL, OBVIOUSLY, AND TO A CERTAIN EXTENT, THE PENSION MANAGERS GET MORE AND MORE DESPERATE AS INTEREST RATES GO DOWN, SO THEY'LL LISTEN TO ALMOST ANYBODY THAT PROMISES THEM -- THEY'VE ALWAYS HAD THAT TENDENCY, BUT THEY'LL LISTEN TO PEOPLE THAT PROMISE THEM THEY'RE GOING TO ONE WAY OR ANOTHER SOLVE THEIR PROBLEM FOR THEM, AND THAT ISN'T GOING TO WORK. SO IT'S A BIG, BIG, BIG PROBLEM, AND OF COURSE THE REAL PROBLEM IS -- LET'S JUST TAKE A HYPOTHETICAL STATE THAT HAS A HUGE PENSION DEFICIT AND MAYBE EVEN HAVE A LOST OF LIVING FACTOR IN IT, WHICH IS REALLY GOING TO BE A KILLER. AND YOU CAN MOVE IF YOU'RE AN INDIVIDUAL. CHARLIE WON'T MOVE TO SAVE THAT. HE'S NOT GOING TO MOVE TO NEVADA OR SOME PLACE. BUT YOU CAN MOVE IF YOU'RE AN INDIVIDUAL TO SOME DEGREE. PARTICULARLY IF YOU'RE RICH AND OLD AND RETIRED, AND YOU CAN ACTUALLY TAKE AWAY AN ASSET FROM THAT KIND OF ENVIRONMENT AND GIVE IT TO ANOTHER TATESTATE TH DOESN'T NEED IT THAT MUCH. YOU'LL GET ADVERSE SELECTION OVER TIME. BUT IF YOU'RE A COMPANY AND PUT A PLANT THERE, YOU CAN'T MOVE THE PLANT IN 5, 10, 20 YEARS. AS THE TAXABLE BASE OF INDIVIDUALS FALLS DOWN, SHRIMPL BECAUSE PEOPLE SELECT OUT OF BEING A PART OF THE POPULATION, YOU CAN'T SELECT OUT OF BEING A CORPORATION, SO YOU HAVE TO BE VERY CAREFUL AND THINK A LONG TIME BEFORE YOU GO AND A STATE WITH A HUGE PENSION DEFICIT AND DECLINING POPULATION BECAUSE YOU'RE GOING TO HAVE THE LAST MAN LEFT AND THE PENSIONS WON'T GO AWAY. AND I DON'T THINK -- WELL, ANYBODY WITH A SHORT-TERM OUTLOOK DOESN'T WORRY ABOUT THAT. JUST GET ME PAST THE NEXT ELECTION AND I'M ALL RIGHT ON THAT ONE. BUT THE -- WE DON'T WANT TO BE -- WE'RE NOT GOING TO -- PLANTS AROUND 50 YEARS IN SOME PLACE, WHERE THE POPULATION GETS HALVED AND THE RICHER PART GETS CUT EVEN MORE DRAMATICALLY. AND WE'VE STILL GOT A VALUABLE PLANT THERE AND GOT TO KEEP OPERATING. ONE WAY OR THE OTHER, IT'S NOT GOING TO BE A GOOD PLACE TO BE. >> WE'RE ALMOST OUT OF TIME SO I'LL MAKE THE LAST QUESTION. >> THAT'S A GOOD ANSWER. MY OLD HARVARD LAW PROFESSOR USED TO SAY, LET ME KNOW WHAT YOUR PROBLEM IS AND I'LL MAKE IT MORE DIFFICULT FOR YOU. >> THIS IS FOR WARREN AND CHARLIE. I HAVE ONE QUESTION, WHICH IS INSPIRED BY CHARLIE'S MANTRA, YOU HAVE TO BE A CONTINUOUS LEARNING MACHINE. H HERE'S MY QUESTION -- WHAT'S THE BIGGEST LESSON BOTH OF YOU LEARNED OVER THE LAST YEAR? >> MY BIGGEST LESSON HAS BEEN TO LISTEN MORE TO CHARLIE. >> HE'S BEEN RIGHT ON SOME THINGS I HAVE BEEN WRONG ON. >> IF YOU'RE IN THE A LITTLE CONFUSED BY WHAT'S GOING ON, YOU DON'T UNDERSTAND IT. IT'S JUST -- WE'RE IN SORT OF UNCHARTED TERRITORY. >> WE ENJOY, IN A CRAZY WAY, ACTUALLY SEEING WHAT HAPPENS. I MEAN, AND THIS HAS MADE US HALFWAY THROUGH THE MOVIE MUST HAVE MORE INTERESTED. THIS IS AN UNUSUAL MOVIE. WE MAY DISAPPOINT PEOPLE, BUT WE DON'T -- AND WE'VE SEEN SOME STRANGE THINGS HAPPEN IN THE WORLD IN THE LAST YEAR, 15 MONTHS, AND WE'VE ALWAYS RECOGNIZED THAT FACT THAT STRANGER THINGS ARE GOING THE HAPPEN. I WOULD SAY IF ANYTHING IT'S REINFORCED OUR DESIRE TO FIGURE OUT EVERYTHING POSSIBLE WE CAN DO THE MAKE SURE THAT BERKSHIRE IS 50 OR 100 YEARS FROM NOW, EVERY BIT THE ORGANIZATION AND THEN SOME THAT IT IS NOW. CHARLIE? >> OF COURSE THAT'S THE IDEA. IT'S PRETTY LIKELY TO WORK. >> BECKY, IS THAT THE LAST QUESTION? >> OKAY, WELL, IN THIS CASE WE'LL MOVE ON TO THE MEETING. THE OTHER THREE FELLOWS HERE CAN LEAVE. IT'S NOT GOING TO BE THAT EXCITING. BUT WE'VE GOT A SCRIPT HERE EVEN SOMEWHAT. I DON'T LIKE SCRIPTS BUT -- NOT MY NATURE. AND ONE OF THE PROPOSERS OF THE TWO ITEMS ON THE PROXY IS HERE IN THE BUILDING TO PRESENT HIS ARGUMENT. WE'LL GET TO THAT IN JUST A MINUTE. WE OFFERED -- EITHER COULD. I'M HAPPY ONE OF THEM CAME. SO HERE WE GO, AND MEETING WILL NOW COME TO ORDER. I AM WARREN BUFFET. NOT THAT YOU DIDN'T KNOW AT THIS TIME, THE CHAIRMAN OF THE BORDER DIRECTORS OF THE COMPANY. I WELCOME YOU TO THE 2021 ANNUAL MEETING OF SHAREHOLDERS. CHAIRMAN WILL MAKE A WRITTEN RECORD. REBECCA HAMMOCK WILL CERTIFY THE VOTES CAST. THE NAME PROXY HOLDERS WITH RETA ARE WALTER SCOTT AND MARK -- >> YES, I DO. AS INDICATED IN THE PROXY STATEMENT THAT ACCOMPANIED THE NOTE OF THIS MEETING THAT WAS SENT TO ALL SHAREHOLDERS OF RECORD ON MARCH 3, 2021, 1 RECORD DAY FOR THIS MEETING THERE WERE 37,600,000 -- WITH EACH ENTITLED TO ONE VOTE ON MOTION CONSIDERED AT THE MEETING AND 1,000,000,335 MILLION SHARES OF CLASS "B" BERKSHIRE HATHAWAY OUTSTANDING WITH EACH SHARE ENHIT TOLD 1 THOUSANDTH OF ONE VEHICLE CODE ON MOTIONS CONSIDERED AT THE MEETING. OF THAT NUMBER -- 343 MILLION, 442,000 CLASS "B" SHARES ARE REPRESENTED AT THIS MEETING BY PROXIES RETURNED THROUGH THURSDAY EVENING APRIL 29th. >> THANK YOU. THAT NUMBER REPRESENTS A -- AND WE'LL THEREFORE DIRECTLY PROCEED. FIRST BUSINESS WILL BE READING OF THE MINUTES OF LAST MEETING. >> I MOVE THAT THE READING OF THE MINUTES OF THE LAST MEETING OF SHAREHOLDERS BE DISPENSED WITH AND THE MINUTES BE APPROVED. >> DO I HEAR A SECOND? >> I SECOND THE MOTION. >> MOTION IS CARRIED. THE NEXT ITEM IS TO ELECT DIR DIRECTORS. I RECOGNIZE DEBBIE TO PUT A MOTION BEFORE THE MEETING. >> I MOVE THAT WARREN BUFFET, CHARLES MUNGER, GREGORY ABEL. HOWARD BUFFET, STEVEN BURKE, KENNETH SHINAUTL, CHARLOTTE GUYMAN. AJIT JAIN, THOMAS MURPHY, RONALD OLSON, WALTER SCOTT, AND MERRILL WHITMER BE ELECTED AS DIRECTORS. >> I SECOND THE MOTION. >> IT HAS BEEN MOVED AND SECONDED. 14 INDIVIDUALS NAMED IN THE MOTION BE ELECTED AS DIRECTORS. THE NOMINATIONS ARE READY TO BE ACTED UPON. WHEN YOU ARE READY YOU MAY PROVIDE THE VOTING RESULTS FROM THE PRELIMINARY REPORT. >> MS. HAMMOCK REPORTED THAT -- RESPONSE TO LAST THURSDAY EVENING CAST NOT LESS THAN 363,464 VOTES FOR EACH NOMINEE. THE REPORT ALSO STATES THAT EXCEEDS A MAJORITY OF THE NUMBER OF TOTAL VOTES OF ALL CLASS "A" AND CLASS "B" SHARES OUTSTANDING. THE REPORT ALSO STATES THAT THE CERTIFICATION REQUIRED BY DELAWARE LAW OF THE PRECISE COUNT OF THE VOTES WILL BE PLACED WITH THE MINUTES OF THIS MEETING. >> THANK YOU. 14 NOMINEES HAVE BEEN ELECTED AS DIRECTORS. THE NEXT TWO ITEMS OF BUSINESS RELATE TO TWO SHAREHOLDER PROPOSALS EACH SET FORTH IN THE PROXY STATEMENT THAT CAN BE ACCESSED AT BERKSHIREHATHAWAY.COM. IF YOU HAVEN'T READ THE PROPOSALS GO TO BERKSHIREHATHAWAY.COM BECAUSE THEY'RE INTERESTING PROPOSALS AND THE PROPONENTS VIEWS ARE SET FORTH AND OURS ARE SET FORTHING AND I WELCOME YOU READING IT. THE FIRST PROPOSAL REQUESTS THE COMPANY PUBLISH AN ANNUAL ASSESSMENT ON HOW TO COMPANY MANAGES CLIMATE RELATED RISKS AND OPPORTUNITIES THE DIRECTORS HAVE RECOMMENDED. THE SHAREHOLDERS VOTE AGAINST THE PROPOSAL. I WILL NOW RECOGNIZE TIM UMANS, A REPRESENTATIVE TO PRESENT TO PROPOSAL. >> I THINK WE'RE CONNECTED UP. >> I THANK THE CHAIR, THE BOARD AND FEDERAL SHAREHOLDERS I'M TIM YOMANS. HERE TODAY ON BEHALF OF ITEM TWO CORESPONSERS FEDERATED MERMES, CAL PERS, THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AND CDPQ AND OUR COMBINED MILLIONS OF ULTIMATE BENEFICIARIES. FOR WELL MORE THAN A YEAR, THE PARENT COMPANY HAS BEEN UNRESPONSIVE TO THE COSPONSOR'S REQUESTS THE DISCUSS THE PARENT COMPANY'S LACK OF CLIMATE RELATED FINANCIAL DISCLOSURES. IN ORDER TO HAVE SOME KIND OF DIALOGUE WITH THE PARENT COMPANY WE HAVE COFILED A PROPOSAL THAT BERKSHIRE HATHAWAY'S BOARD ISSUE A REPORT AN NEWELLY, ASSESSING HOW THE COMPANY MANAGES PHYSICAL AND TRANSITIONAL CLIMATE RELATED OPPORTUNITIES. INCLUDING CLIMATE RELATED FINANCIAL REPORTING, WHERE MATERIAL FOR THE SUBSIDIARIES AND PARENT COMPANY, HOW THE BOARD OVERSEES CLIMATE RELATED RISKS FOR THE COMBINED ENTERPRISE, AND THE FEASIBILITY OF THE PARENT COMPANY AND ITS SUBSIDIARIES ESTABLISHING SCIENCE-BASED GLEAN HOUSE GAS REDUCTION TARGETS, CONSISTENT WITH LIMITING CLIMATE CHANGE TO WELL BELOW 2 DEGREES. WE ASK THE ANNUAL ASSESSMENT FOLLOWS THE RECOMMENDATION OF THE TASK FORCE ON FINANCIAL DISCLOSURES, TCFD. THE BOARD ARGUES SINCE IT MANAGES ITS OPERATING BUSINESSES ON AN UNUSUALLY DECENTRALIZED BASIS AND THERE ARE FEW CENTRALIZED OR INTEGRATED BUSINESS FUNCTIONS THE BOARD BELIEVES THE PROPOSAL IS INCONSISTENT WITH BERKSHIR'S CULTURE. THE COSPONSORS NOTE, DESPITE THE CULTURE AND DECENTRALIZED MANAGEMENT, SHAREHOLDERS CAN ONLY PURCHASE SHARES IN THE COMBINED PARENT COMPANY ENTITY. SHARES CANNOT BE PURCHASED IN THE INDIVIDUAL SUBSIDIARIES THAT MAY OR MAY NOT HAVE THE CLIMATE DISCLOSURES THAT THE BOARD CITES IN ITS OPPOSITION STATEMENT. THE COMPANY HAS MORE THAN $100 BILLION IN CASH EQUIVALENTS. THE COSPONSORS, AND MANY IN THE $54 TRILLION CLIMATE ACTION 100 PLUS INVESTOR COALITION WANT TO PARENT COMPANY TO PUT MORE RESOURCES IN THE FINANCIAL, AND THE MITIGATING THE IMPACT. THE COMPANY'S SUSTAINABILITY REMEMBER WEBSITE CONSISTENTS ONLY OF LYNCHES TO 15 SUBSIDIARIES. WE NOTE THE PARENT COMPANY HAS 60 SUBSIDIARIES. THIS IS INSUFFICIENT DISCLOSURE TO SHAREHOLDERS WHOT THAT SUSTAINABILITY RISKS, ESPECIALLY CLIMATE RISKS, MAY BE MATERIAL TO THE PARENT COMPANY'S LONG-TERM FUTURE PROS PEROTECTS. OF COURSE RECOGNIZING THE COMPANY'S STRONG PAST FINANCIAL PERFORMANCE. NO DOUBT CLIMB CHANGE AND ENERGY TRANSITION TO A LOW CARBON ECONOMY POSE A SYSTEMIC RISK TO THE ECONOMY. THE COMPANY'S AWE AUDITOR SAYS ON ITS WEBSITE, CLIMATE CHANGE IS NOT A CHOICE, IT'S BILLIONS OF THEM. WE ARE ALL COMPELLED TO ACT. DELOITTE DOES NOT ASSESS CLIMATE CHANGE RELATED FINANCIAL IMPACTS IN THE COMPANY'S AUDIT. WHEN ASKED BY THE COSPONSORS WHY CLIMATE CHANGE IMPACTS ARE EXCLUDED FROM AUDITS LIKE BERKSHIRES, DELOITTE FAILED TO PROVIDE ANY MEANINGFUL REPLY. IN HIS NEW BOOK, FORMER BERKSHIRE DIRECTOR BILL GATES SAYS COMPANIES ACCEPTING MORE RISK IS NEEDED TO AVOID CLIMATE DISASTER. AND SHAREHOLDERS AND BOARD MEMBERS WILL HAVE TO BE MORE WILLING TO SHARE IN THIS RISK, MAKING IT CLEAR TO EXECUTIVES THEY'LL BACK SMART INVESTMENTS EVEN IF THEY DON'T ULTIMATELY PAN OUT. THIS IS THE GATES POSITION AND THE CHAIR IS ONE OF THREE GATES FOUNDATION TRUSTEES. WE ASKED THE BOARD TO TAKE THE CULTURAL RISK FOR A MODEST DEGREE OF CENTRALIZATION NEEDED TO ISSUE THE CLIMATE RELATED FINANCIAL ASSESSMENT. WE ALL NEED TO TAKE ACTION NOW TO LIMIT CLIMATE CHANGE IMPACT ON OUR LONG-TERM SUSTAINABILITY. WE STRONGLY URGE BERKSHIRE HATHAWAY'S SHAREHOLDERS TO SUPPORT ITEM TWO AS CLIMATE RISK MAY BE MATERIAL TO THE COMPANY. WE HAVE A CHANGE FOR THE CHAIR, WILL YOU PLEASE CHANGE YOUR MIND AND VOTE YOUR PERSONAL SHARES IN SUPPORT OF ITEM TWO? THANK YOU. >> THANK YOU, MR. YUMNS. THE PROPOSELE IS READY TO BE AXED ONLE WHEN YOU'RE READY YOU MAY DISCLOSE THE RESULTS IN THE REPRELIMINARY REPORT. >> THE REPORT STATES THE BAILOUT OF SHAREHOLDERS IN RESPONSE CAST 121,376 VOTES FOR THE MOTION. AS THE NUMBER OF VOTES AGAINST THE MOTION EXCEEDS A MAJORITY OF NUMBER OF VOTES OF ALL CLASS "A" AND CLASS "B" SHARES PROPERLY CAST ON THE MATTER THE MOTION HAS FAILED. THE CERTIFICATION REQUIRED BY DELAWARE LAW OF PRECISE COUNT OF THE VOTES WILL BE PLACED WITH THE MINUTES OF THIS MEETING. >> THANK YOU. THE PROPOSAL FAILS. SECOND SHAREHOLDER PROPOSAL REQUEST BERKSHIRE HATHAWAY COMPANIES TO ANNUALLY RELEASE REPORTS SHARING THEIR DIVERSITY AND INCLUSION EFFORTS. I WILL NOW ASK THAT THE AUDIO TAPE PROVIDED BY MEREDITH BENTON, REPRESENTATIVE, BE PLAYED TO PRESENT THE PROPOSAL. > HELLO. I AM MEREDITH BENTON. I'M SPEAKING ON BEHALF OF THE NONPROFIT ADVOCACY ORGANIZATION AS YOU SOME I'M ALSO THE CEO OF RESULTS STOP CAPITAL. I FORMALLY PROPOSAL NUMBER THREE. DIVERSITY, EQUITY, AND INCLUSION EFFORTS, INCLUDING THE PROCESS THAT THE BOARDLE TO DETERMINING ITS EFFECTIVENESS OF DIVERSITY SBIN COLLUSION PROGRAMS AND HOW IT ASSESSES GOALS, TREND RELATED TO RECRUITMENT AND RETENTION. WHAT WOULD I MEAN IF THE MAJORITY OF BERKSHIRE'S OPERATING UNITS WEREN'T MANAGING THEIR DIVERSITY PROGRAMS? IT WOULD MEAN THAT BERKSHIRE KPRAENS MISSING OUT ON THE BENEFITS THAT AN INCLUSIVE WORKPLACE CULTURE CAN PROVIDE, SUCH AS ACCORDING TO STUDIES, ACCESS TO TOP TALENT, BETTER UNDERSTANDING OF CONSUMER PREFERENCES, STRONGER MIX OF LEADERSHIP SKILLS, INFORMED SKUGS AND IMPROVED RISK MANAGEMENT. BEST PRACTICES IN REPORTING EXIST. BERKSHIRE COMPANIES CAN PUBLISH THEIR COMPOSITION THROUGH THEIR FORM. THIS IS ALREADY SUBMITTED TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SO IT REQUIRES NO -- IT IS A UNIVERSALLY DISLIKED FORM, BUT IT IS STANDARDIZED AND COMPANIES WILL OFTEN PUB LESH THEIR E 01 ALONG WITH A DISCUSSION OF THEIR OWN INTERNAL STRUCTURES AND WAYS. 72 OF THE 100 S&P 500 COMPANIES PUBLICLY SHARE THIS FORM AT TO MY KNOWLEDGE NO BERKSHIRE HATHAWAY COMPANY DOES, NOT ONE. IT'S AKIN TO A BALANCE SHEET DETAILING DIVERSITY AT A SINGLE POINT IN TIME. JUST AS A BALANCE SHEET WOULD BY ITSELF BE INSUFFICIENT TO IDENTIFY THE STRENGTH OF A COMPANY'S FINANCIALS. SO TOO THE E 01 BY ITSELF IS INSUFFICIENT IF ASSESSING THE EFFECTIVENESS OF DEI PROGRAMS THE COMPANY'S DATA, HIRING RETE RETENTION, AND PROMOTION RATES MUST ALSO BE SHARED. INVESTORS NEED TO HAVE A FULL UNDERSTANDING OF THE ACTUAL EXPERIENCE OF BERKSHIRE EMPLOYEES. IN THEORY, COMPANIES SHOULD WANT TO SHARE THEIR RETENTION DATA. IF IT'S A GOOD COMPANY TO WORK FOR, PEOPLE WILL WANT TO STAY. THEY SHOULD WANT TO SHARE THEIR PROMOTION DATA IN THEORY. IF IT'S A COMPANY THAT HIRES GOOD PEOPLE AND TREATS THEM WELL, THOSE GOOD PEOPLE WILL ASCEND WITH MENTORSHIP AND TIME. 70% OF THE S&P 500 SHARE DIVERSITY AND INCLUSION AT SOME LEVEL. ONLY 22% OF THE BERKSHIRE COMPANIES DO AT ANY LEVEL. AND ONLY FOUR WORK WITH EQUITY AT ANY MEANINGFUL DEPTH. BERKSHIRE IS A SERIOUS OUTLIER HERE. BERKSHIRE IS FAMOUSLY DECENTRALIZED. ITS UNITS OPERATE REMOTELY. BUT IF AN ISSUE ISN'T IMPORTANT FROM HEADQUARTERS, CAN WE EXPECT IT TO BE PRIORITIZED BY AN OPERATING UNIT? HERE'S THE THING. MR. BUFFET, MR. MUNGER, BOARD MEMBERS AND THE TEAM HEADQUARTERS, YOU MAY EACH INDIVIDUALLY TRULY AND GENERAL WINLY HIRE, MENTOR, AND PROMOTE THE BEST PEOPLE FOR THE JOB, REGARDLESS OF THEIR GENDER, RACE, ETHNICITY, SEXUAL ORIENTATION OR ANY INMUTABLE CHARACTERISTIC, BUT WE CAN'T CONCLUDE THIS IS THE MIND SET OF EACH OF YOUR EMPLOYEES, MANAGERS AND HIRING DIRECTORS. BERKSHIRE HEADQUARTERS CAN'T SIT PASSIVE WILL AND I HOPE THEIR INDEPENDENT UNITS ARE ADDRESSING BIAS AND DISCRIMINATION IN THE WORKPLACE. ACTIVE MANAGEMENT, PROACTIVE ATTENTION IS NEEDED. IN ITS STATEMENT IN OP SESSION TO THE PROPOSAL, THE BOARD SAID, MR. BUFFET, BERKSHIRE'S CHAIRMAN AND CEO SET THE TONE AT THE TOP FOR BERKSHIRE AND ITS EMPLOYEES FOR OVER 50 YEARS. IT ALSO STATES MR. BUFFET HAS A RECORD OF OPPOSING EFFORT SEEN OR UNSEEN TO SUPPORT DIVERSITY OR INCLUSION. HE HOLDS EXTRAORDINARY -- OVER HIS COMPANIES AND THE BROADER COMMUNITY. HE OPPOSES EVIDENTS. GIVEN THAT WE ASK HIM TO STEP FORWARD DESACRCISIVELY IN HIS O WAY THE EXPECTATIONS HE HAS AND THE EFFORTS HE EXPECTS TO SEE, THE METRICS THAT WILL BE USED TO JUDGE SUCCESS. ACTIONS SPEAK LOUDER THAN WORDS, BUT SILENCE HERE SPEAKS VOLUMES. THANK YOU. >> THANK YOU. THE PROPOSAL IS NOW READY TO BE ACTED UPON. MR. HAMBURG, WHEN YOU ARE READY TO YOU PROVIDE THE VOTING RESULTS DISCLOSED IN THE PRELIMINARY REPORT. >> THE REPORT STATES THE BAIL-IN OF THE PROXY HOLDERS IN RESPONSE TO PROXIES RECEIVED THROUGH LAST THURSDAY EVENING CAST 124,842 VOTES FOR THE MOTION AND 391,662 VOTES AGAINST THE MOTION. AS THE NUMBER OF VOTES AGAINST THE MOTION EXCEEDS THE MAJORITY OF THE NUMBER OF VOTES OF ALL CLASS "A" AND CLASS "B" SHARES PROPERLY CAST ON THE MATTER, THE MOTION HAS FAILED. THE CERTIFICATION REQUIRED BY DELAWARE LAW OF THE PRECISE COUNT OF THE VOTES WILL BE PLACED WITH THE MINUTES OF THIS MEETING. >> THANK YOU. THE PROPOSAL FAILS. >> I MOVE THAT THIS MEETING BE ADJOURNED. > I SECOND THE MOTION TO ADJOURN. >> MOTION TO ADJOURN HAS BEEN MADE AND SECONDED. THIS MEETING IS ADJOURNED, AND I WOULD JUST LIKE TO ADD ONE FINAL COMMENT THAT I REALLY HOPE -- AND I THINK THE ODDS ARE VERY, VERY GOOD WE GET TO HOLD THIS NEXT YEAR IN OMAHA, AND I HOPE THAT WE GET A RECORD TURNOUT OF BERKSHIRE SHAREHOLDERS AND WE REALLY LOOK FORWARD TO MEETING YOU IN OMAHA. I GUESS IT WILL BE NEXT APRIL 30th, BUT WE'LL BE SURE OF THAT DATE A LITTLE LATER. SO THANK YOU FOR WATCHING, AND WE WILL SEE YOU NEXT YEAR AND HOPEFULLY IN OMAHA. MEETING'S ADJOURNED. >> THAT CONCLUDES THE 2021 BERKSHIRE HATHAWAY ANNUAL MEETING TO SHAREHOLDERS, BUT STICK AROUND. THERE IS A LOT TO TALK ABOUT, A LOT TO GO THROUGH WITH OUR PANEL HERE AT YAHOO FINANCE. OF COURSE BUFFET AND MUNGER TALKING ABOUT ALL MANNER OF SUBJECTS CONCERNING BERKSHIRE, HOW THE COMPANY PERFORMED, THE ECONOMY, RAILROADS, TECH STOCKS, BITCOIN, THE WHOLE GAMUT. AND THE ATMOSPHERE HERE IN THE ROOM, YOU GUYS, DIFFERENT FROM LAST YEAR WHEN THERE WAS ABSOLUTELY NO ONE IN THE CAVERNOUS CHI CENTER IN OMAHA. THERE ARE DIRECTORS. YOU CAN HEAR THEM TALKING BEHIND ME NOW. A GOOD NUMBER OF THEM TURNED OUT, SO THERE WAS SOME REACTION AND RESPONSE TO THE ZINGERS IN PARTICULAR THAT BUFFET AND MUNGER DELIVERED TO THE CROWD, BUT STILL, NOT THE SAME AS THE 40,000 PEOPLE WHO ATTEND EACH YEAR. YOU HEARD BUFFET AT THE END TALK ACT HOW HE OPENED EVEN WOULD BE BACK IN OMAHA NEXT YEAR, AND OF COURSE HE HAD THE EXACT DATE RIGHT THERE, APRIL 30th OF 2022. I WANT TO GO AROUND AND GET REACTION TOP LINE FROM THE PANEL. MILES, WHY DON'T WE START WITH YOU? >> ANDY, IT'S FUNNY, EVERY YEAR YOU COME OUT AND YOU ALWAYS THINK ABOUT TONE AND TOPICS. I WAS THINKING ABOUT LAST YEAR'S MEETING, AND WROTE ABOUT IT A LITTLE THIS MORNING ON YAHOO FINANCE. THAT WAS KIND OF THE BOTTOM OF SORTS. IF YOU GO THROUGH AND LOOK AT A BUNCH OF NATIONAL COVID STATISTICS. IF YOU THINK ABOUT WHERE THE ECONOMY WAS, WHERE EVERYONE'S TU WAS. THE MARK OF COURSE WE NOW KNOW BOTTOMED ABOUT SIX WEEKS BEFORE THAT MEETING, WHICH I BELIEVE THE EXACT DATE WOULD HAVE BEEN MAY 2nd. BUT IT WAS REALLY KIND OF THE ABSOLUTE TROUGH, THE COVID MOMENT IN THE UNITED STATES. THERE HAVE BEEN MANY DARK DAYS SINCE THEN, BUT NOW WE'RE TALKING ABOUT MORE THAN 50% OF THE POPULATION WITH TAT LEAST OE SHOT OF THE VACCINE. WE'RE SEEING THINGS RE-OPEN. TO THAT END, THE CONVERSATION THIS YEAR WAS MUCH MORE A CLASSIC BUFFET CONVERSATION, IF YOU WILL. I KNOW WE'LL GET TO KIND OF THE HISTORY LESSON WE HAD AT THE BEGINNING WITH THE TOP 20 STOCKS NOW VERSUS 30 YEARS AGO. BUFFET KIND OF TALKED ABOUT THE ECONOMY, NEWS OF THE DAY. BUT WE HAD A LITTLE -- IT SEEM LAST YEAR HE WAS TRYING TO PEP UP THE COUNTRY, PEP UP HIMSELF AND NOT GOB SO DOUR. BUT JULIA, IT DID FEEL LIKE YOU CAN SORT OF THE GET BUFFET TRYING TO, I DON'T KNOW, MAYBE SOUND MORE NORMAL. AT A CERTAIN POINT THE YEARS ALL RUN TOGETHER, BUT THIS ONE MAYBE DIDN'T FEEL SO SAD AS LAST YEAR'S FELT. >> MILES, I THINK YOU TOTALLY NAILED IT. I ACTUALLY REWATCHED LAST YEAR'S MEETING, AT LEAST THE S-- EVEN THOUGH HE HAD A BULLISH UNDERTONE, I THINK LAST YEAR A LOT OF FOLKS WERE LOOKING TO WARREN BUFFET BECAUSE IT WAS SUCH UNCHARTED TERRITORY. REMEMBER HE DIDN'T EVEN HAVE HIS HAIRCUT LAST YEAR LIKE THE REST OF US. BUT YEAH, I WOULD ALSO AGREE WITH YOU. A LOT OF THINGS CHANGED. HE REFERENCED THAT IN THE BEGINNING. WE WILL GET TO THAT AS YOU JUST MENTIONED. BUT EVEN IT'S YEAR, TALKING ABOUT THE RISE OF THE RETAIL INVESTOR. EVEN BRINGING UP ROBIN HOOD, GAMBLING WITHIN -- KIND OF TALKING ABOUT THE CASINO AND WARNING ABOUT THAT. WHILE AMERICAN COMPANIES ARE A GREAT PLACE TO PUT YOUR MONEY AND INVEST AND SAVE YOU HAVE TO BE VERY CAREFUL, TOO. THOSE WERE MY KEY TAKEAWAYS HERE. SHOULD WE BRING IN -- AKIKO, WHAT DO YOU THINK? >> I SHOULD POINT OUT, THIS IS MY FIRST YEAR COVERING THE EVENT. IT'S INTERESTING TO SEE JUST HOW BROAD THE QUESTIONS WERE. PICKING UP ON YOUR POINT, THOUGH, ABOUT WHAT WARREN BUFFET SAYS ABOUT THE ROBIN HOOD TRADE, WHAT STOOD OUT TO ME IN THESE HOURS THAT HE ANSWERED PATIENTLY ALL THE QUESTIONS WAS A BIT OF A DIVIDE I SAW BETWEEN THE SENTIMENT OF THE MARKET IS RIGHT NOW, WHERE SOME OF THE EXCITEMENT IS VERSUS WHERE BOTH WARREN BUFFET AND CHARLIE MUNGER SEE THE OPPORTUNITIES. WHEN YOU TALK ABOUT BITCOIN FOR EXAMPLE, NO SURPRISE, STRONG OPINION THERE FROM CHARLIE MUNGER SAYING OF COURSE HE HATES THE BITCOIN SUCCESS, AND HE THINKS THE WHOLE DEVELOPMENT IS DISGUSTING AND CONTRARY TO THE INTEREST OF CIVILIZATION. THOSE WERE HIS WORDS. I ALSO THOUGHT IT WAS INTERESTING THE COMMENT ON THE CLIMB ISSUE -- AT THE END OF MEET WING SAW THE PROPOSAL VOTED DOWN FOR INCREASED DISCLOSURES ON CLIMATE RISK. BUT WE HEARD FROM WARREN BUFFET WHEN HE WAS ASKED ABOUT HIS -- HOW HE FELT ABOUT THAT IN THE DISCUSSION OF BUILDING CLIMATE RISK, INVESTING IN A FOSS YOU WILL FUEL COMPANY. HE REALLY SEEMED TO DOUBLE DOWN, SAYING CHEVRON IS NOT AN EVIL COMPANY. HE SAYS I HAVE NO COMPUNCTION ABOUT OWNING IT. IN FACT WE WENT FURTHER AND SAID, IF WE OWNED THE ENTIRE BUSINESS I WOULDN'T FEEL UNCOMFORTABLE. THAT SEEMS TO BE A BIT OF DIVIDE WHERE INVESTMENT SENTIMENT IS. WE'VE GOT THE S.E.C. WEIGHING IN ON THAT. SO NOT SO SURE IN THE END IF BERKSHIRE IS GOING TO HAVE THEIR HAND FORCED ESSENTIALLY BECAUSE OF REGULATION, BUT I THOUGHT THAT WAS AN INTERESTING COMMENTARY, TOO. >> OKAY, THANKS, AKIKO AND MILES. WE'RE GOING TO TAKE A QUICK BREAK, BUT WE'LL BE RIGHT BACK AFTER THAT. MUCH MORE TO DISCUSS HERE AT LOS ANGELES AT THE END OF THE BERKSHIRE HATHAWAY ANNUAL MEETING FOR SHAREHOLDER ♪ STAY TUNED. >>> WELCOME BACK TO YAHOO FINANCE. THE NUMBER OF THINGS DISCUSSED HERE, WARREN BUFFET AS WELL AS CHARLIE MUNGER WEIGHING IN ON THE BROADER MACRO PICTURE. TAKE A LISTEN TO WHAT HE HAD TO SAY. >> THIS ECONOMY RIGHT NOW IS 85% OF IT IS RUNNING IN SUPER HIGH GEAR, AND PEOPLE CAN'T -- AND YOU'RE SEEING SOME INFLATION. RESPOND IN THE AN INCREDIBLE WAY. I DON'T THINK IT WAS A SURE THING THAT WOULD HAPPEN. >> LET'S BRING IN EMPIRE FINANCIAL RESEARCH FOUNDER AND CEO. LET ME FIRST GET YOUR THOUGHTS ON WHAT STOOD OUT TO YOU IN TERMS OF WHAT HE HEARD FROM WARREN BUFFET AND CHARLIE MUNGER TODAY. >> THIS IS MY 23rd CONSECUTIVE BERKSHIRE MEETING. THE THING THAT REALLY JUMPED UP OUT AT ME WAS THEY SPENT SOME TIME TALKING ABOUT THE FIST RISK FACTOR OF ANYONE BUYING A STOCK SHOULD BE BAD MANAGEMENT. THAT CAN MESS UP A BUSINESS. THEN THEY LAMENTED THE DIFFICULTY OF GETTING RID OF A DIFFICULT CEO. IT GOT BACK TO THE MAIN THING I FOCUS ON WHEN IT COMES TO BERKSHIRE, WHICH ISN'T BAD MANAGEMENT, BUT AGING MANAGEMENT. AND WE HAVE SEEN IT OVER AND OVER AGAIN WHERE YOU GET SOME LEGENDARY CEO, HE STARTS TO LOSE HIS MARBLES DUE TO OLD AGE LIKE WE ALL DO. SO THE FIRST THING I LOOK FOR AT ANY ANNUAL MEETING WHEN I SEE BUFFET OR MUNGER ON TELEVISION IS, ARE THEY LOSING IT? WE JUST SAW A 90-YEAR-OLD MAN BACKED UP BY A 97-YEAR-OLD MAN GO FOR FOUR CONSECUTIVE HOURS WITHOUT EVEN A BATHROOM BREAK BEING ASKED DOZENS OF QUESTIONS THEY HAD NO ADVANCED KNOWLEDGE OF. 23 YEARS AGO AT MY FIRST ANNUAL MEETING THEY SOUNDED THE SAME TODAY. IT'S REMARKABLE. I JUST GOOGLED AVERAGE LIFE EXPECTANCY OF IS 77 YEARS OLD. THEY'RE GIVING THE SAME ANSWERS BUT MIXING IT UP, AND THERE'S ALWAYS NEW STUFF THROWN IN THERE. YOU HAVE TO SIT BACK AND BE IN AWE THESE GUYS ARE GOING STRONG AT THEIR RESPECTED AGES. >> WHAT DID YOU MAKE OF THE QUESTIONS THAT WENT ALONG THE LINES OF, YOU GUYS MISSED A HUGE OPPORTUNITY LAST MARCH, YOU DIDN'T STEP UP TO THE PLATE, AND YOU LET US DOWN AS SHAREHOLDERS? >> IN FACT, SOLD THE AIRLINES. SOLD THE BANKS. THAT WAS A $10 BILLION MISTAKE. BUT HERE'S THE THING -- I WAS EMAILING WITH ONE OF MY FRIENDS WHO WAS CRITICIZIING THEM FOR THAT AND HE SAID 20 YEARS AGO BUFFET WOULDN'T HAVE MADE THOSE MISTAKES. HE WOULD HAVE PLAYED OFFENSE. I SAID, TRUE, BUT THE BUFFET OF THE 20 YEARS AGO HAD A RULE, NO TECH STOCKS. SO I'M PERFECTLY FINE IF BUFFET MAKES A COMBINED $15 BILLION MISTAKE ON AIRLINES AND ON THE BANKS. BUT HE'S MADE OVER $100 BILLION IN PROFITS FROM BERKSHIRE'S SHAREHOLDER JUST ON APPLE. I'LL TAKE THAT TRADE ALL DAY LONG. >> ONE OF THE HALLMARKS OF THE ANNUAL MEETING AND OF WARREN AND CHARLIE IS THAT THEY TALK VERY OPENLY AND TRANSPARENCY ABOUT THEIR MISTAKES, SO A LOT OF FOLKS ARE CERTAINLY LEARNING FROM THEM, AND SO ONE OF THE THINGS THAT STOOD OUT TO ME -- FELT LIKE A TRADITIONAL MEETING IN A LOT OF WAYS BUT FOCUSES ON THE RISING RETAIL INVESTOR CLASS AND SHARING THEIR LESSONS WITH THEM. WHAT ARE YOUR THOUGHTS ON THAT AS SOMEONE WHO'S BEEN INVOLVE IN THE FINANCIAL EDUCATION AS THEY TALK ABOUT THE WORLD CHANGING, BRINGS THINGS UP FROM 30 YEARS AGO AND HOW THOSE STOCK, THEY'RE NOT EVEN THE ONES THAT ARE WELL KNOWN TODAY? >> WELL, LOOK, ONE OF THE FIRST MEETINGS I EVER WENT TO WAS 1999, 2000 RIGHT AT THE TOP OF THE BUBBLE WHEN THEY WERE CRITICIZED. AND I WAS SHOUT FROM THE ROOFTOPS, THESE GUYS HAVE NOT LOST IT. AND I'M DOING THE SAME THING TODAY. IT'S AMAZING HOW HISTORY REPEATS ITSELF. I THINK THEY WERE MOSTLY LA LAMENTING, PARTICULARLY THE ROBIN HOOD APP AND THE CASINO NATURE OF INVESTING. THEY JUST SHOOK THEIR HEAD AND SAID INVESTORS -- BUFFET WENT ON A RIP ABOUT BUYING AND SELLING CALL AND PUT OPTIONS ON APPLE STOCK. IT'S JUST PURE SPECULATION, PURE GAMBLING. AND I DON'T KNOW IF THEY ACTUALLY QUITE CAME OUT AND SAID IT, BUT I FOR SURE HEARD IT. THEY SAID, THIS IS GOING TO END BADLY, AND A LOT OF INNOCENT PEOPLE WHO DIDN'T EXPERIENCE THE INTERNET BUBBLE AND HOUSING BUBBLE BURSTING ARE GOING TO GET INCINERATED. BUT THEY MAKE NO PREDICTION AS TO WHEN THAT WILL HAPPEN. >> APPLE ONE OF THOSE NAMES THAT CAME UP IN ONE QUESTION WHERE THEY ASKED SPECIFICALLY WARREN BUFFET WHETHER OR NOT IT WAS A MISTAKE TO SELL SOME SHARES LAST YEAR WHEN WE'VE SEEN STOCK GO UP SINCE THEN. TAKE A LISTEN TO WHAT HE HAD TO SY AND I'LL GET YOUR THOUGHTS ON THE OTHER END. >> IT'S AN EXTRAORDINARY BUSINESS, BUT I DO WANT TO IT'S A DIFFERENT WAY, BUT TIM -- COOK IS -- WE SEE A LOT OF MANAGER OF A LOT OF BUSINESSES -- YOU'RE LOOKING AT TWO GREAT ONES ON BOTH ENDS HERE. HE'S HANDLED THAT BUSINESS SO WELL. HE COULDN'T DO WHAT STEVE JOBS, OBVIOUSLY, COULD DO IN TERMS OF CREATION, BUT STEVE JOBS COULDN'T, REALLY,ENING YO, DO WHAT TIM COOK HAS DONE IN MANY RESPECTS. >> WE HEARD WARREN BUFFET SAY THAT APPLE HAS A PRODUCT THAT IS INDISPENSABLE TO PEOPLE. SORT OF COMPARE IT TO THE COST OF A CAR VERSUS THE COST OF AN iPHONE. HOW MUCH MORE WE RELY ON APPLE DEVICES. WHAT DID YOU MAKE OF HOW HE WEIGHED IN ON THIS OPENING SAYING, LOOK, SELLING APPLE WAS PROBABLY A MISTAKE. >> ANY TIME YOU SELL A STOCK AND IT SUBSEQUENT BY GOES UP, YOU SORT OF MAYBE WISH YOU DIDN'T SELL IT, EVEN THOUGH THAT'S PRUDENT RISK MANAGEMENT. INSTEAD OF BEMOANING THE FACT HE SOLD 5% OF HIS APPLE POSITION, HE HELD ON TO 95%. AND CONSEQUENTLY -- OVER $100 BILLION. AND I SPEAK FROM EXPERIENCELE I BOUGHT APPLE WAY BACK WHEN. IT WENT UP 20%, AND I SOLD IT. APPLE IS NOT A TYPICAL INVESTMENT FOR BUFFET. IT'S A TECH STOCK. AFTER THE FIRST BUBBLE, YOU THINK HE WOULD HAVE -- AND THE FACT THAT HE JUST -- IS WHAT'S EXTRAORDINARY. WE SHOULD BE CELEBRATING THAT, NOT CRITICIZING HE SOLD A FEW SHARES. >> YEAH, YOU WANT TO JUMP IN HERE GUYS AND TALK A LITTLE BIT ABOUT THE THEMES WHITNEY'S BEEN HITTING ON? GOING BACK TO THE FIRST SOUND WE PLAYED WHERE BUFFET IS TALKING ABOUT THE STRENGTH OF ECONOMY RIGHT NOW. AND THAT WAS FRAMED OUT OF A QUESTION ON, DID BERKSHIRE MISS AN OPPORTUNITY? I THINK THE SHAREHOLDERS' QUESTION WAS, I'M INVESTING WITH BERKSHIRE, WHICH HAS $100 BILLION ON THE SHEET. YOU DIDN'T DEPLOY THAT. WHITNEY, THIS IS YOUR 23rd. THIS IS MY 6th MEETING BUT IT MADE ME THINK ABOUT THE QUESTIONS I TYPICALLY GET EVERY YEAR, WHICH ARE VERSIONS OF, WHY DIDN'T YOU DO THING "X," THING "Y"? I BROUGHT IT UP EARLIER IN THE PROGRAM. WE DIDN'T HAVE WARREN BUFFET SITTING THERE AWAY HISTORY LESSON ABOUT THE ECONOMY SINCE WORLD WAR II. HE WASN'T DEFENDING THE STATE OF THE AMERICAN ECONOMY IN A WAY I THINK HE'S GOTTEN USED TO OR ALMOST FELT THE NEED TO, AND I THOUGHT THAT WAS MAYBE A REFRESHING IS THE WORD THAT CAME TO MY MIND, BECAUSE IT'S THE STUFF THAT COMES UP EVERY ANNUAL MEETING WITH A LITTLE BIT OF SECOND GUESSING, BUFFET DOING HIS MACRO ANALYSIS. WASN'T THE SAME THING AS LAST YEAR WHEN EVERYTHING, FOR OBVIOUS REASONS, BUT EVERYTHING WAS FRAMED THROUGH THE STATE OF THE PANDEMIC, WHAT'S GOING TO HAPPEN NEXT? WARREN, PLEASE TELL US? I THINK AS HE SAID -- WHAT WAS THAT JOKE FROM THE NEBRASKA GOVERNOR? I'M ALL RIGHT WITH THAT ONE. HE DIDN'T REALLY HAVE A COMMENT ON THAT LAST YEAR, AND IT WAS SORT OF THE ONLY THING THAT EVERYONE WANTED TO HEAR. >> YEAH, I WOULD JUST SAY, THIS IS THE CORONAVIRUS PANDEMIC IS THE THIRD BIG BUST IN THE 23 YEARS I HAVE BEEN COMING. THERE WAS THE AFTERMATH OF THE INTERNET BUBBLE, THE GLOBAL FINANCIAL CRISIS. IT WAS REMARKABLE HOW SIMILAR THE TONE WAS A YEAR AGO, REASSURING PEOPLE, NEVER BET AGAINST AMERICA. WE'RE GOING TO COME BACK. ST SIMILAR TO 2009 WHEN THE MEETING WAS A MONTH AFTER THE BOTTOM LIKE LAST YEAR. PROBABLY THE BIGGEST MISTAKE INFORMSERS MAKE IS WE'RE TOO BEARISH AND ALWAYS SEEING THE NEXT STORM AND ALWAYS GETTING TOO DEFENSIVE AND SELLING OUR WINNERS TOO EARLY AND BUFFET TO HIS CREDIT HAS MANEINTAINED FOR0 PLUS YEAR OPTIMISM ABOUT AMERICA AND PUT MONEY TO WORK WHEN OTHER INVESTORS ARE PANICKING. I WISH HE HAD DONE A LITTLE BIT MORE OF THAT A YEAR AGO, BUT GENERALLY SPEAKING THAT'S QUIBBLING AROUND THE EDGES. HE HAS FUNDAMENT ALLY BEEN RIGH HIS ENTIRE REAR AND BEEN OPTIMISTIC ABOUT AMERICA. IT'S EASY NOW TO HAVE THAT VIEWPOINT. IT WAS NOT A YEAR AGO, BUT HE WAS. >> ALL RIGHT. AGAIN, MORE TO TALK ABOUT HERE. STAY TUNED. WE'RE GOING TO GO TO A BREAK. THIS IS THE POSTGAME SHOW OF THE 2021 BERKSHIRE HATHAWAY ANNUAL MEETING OF SHAREHOLDERS. STAY TUNED. >>> YAHOO FINANCE'S LIVE COVERAGE OF THE ANNUAL BERKSHIRE HATHAWAY SHAREHOLDERS MEETING IS BROUGHT TO YOU BY -- >>> WELCOME BACK TO YAHOO FINANCE'S LIVE COVERAGE OF THE BERKSHIRE HATHAWAY'S ANNUAL SHAREHOLDERS MEETING. A NUMBER OF ISSUES DISCUSSED TODAY, BUT ONE OF THE INTERESTING POINTS MADE BY WARREN BUFFET IS SORT OF GIVES ADVICE TO THOSE JUST DIPPING THEIR TOES IN THE MARKET. HE MADE A COMPARISON TO TODAY VERSUS 1989. TAKE A LISTEN TO WHAT HE HAD TO SAY. >> 1989 WASN'T THE DARK AGES. WE WEREN'T JUST DISCOVERING CAPITALISM OR ANYTHING ELSE, AND PEOPLE THOUGHT THEY KNEW A LOT ABOUT THE STOCK MARKET AND THE EFFICIENT MARKET THEORY WAS IN. IT WAS NOT A BACKWARD TIME. AND IF YOU LOOK, THE TOP COMPANY AT THE TIME HAD A MARKET OF -- SO THE LARGEST COMPANY IN THE WORLD HAS GONE FROM $100 MILLION TO $2 TRILLION. AT THE BOTTOM, THE NUMBER 20 HAS GONE FROM 20 MILLION TO SOMETHING A LITTLE OVER TEN TIMES THAT. WELL, THAT TELL US SOMETHING ABOUT WHAT'S HAPPENED WE QUALITY, WHICH IS A HOT SUBJECT IN THIS CURRENT. TELLS A LITTLE SOMETHING ABOUT INFLATION. IT TELLS YOU THAT CAPITALISM WORKED INCREDIBLY WELL, ESPECIALLY FOR THE CAPITALISTS. >> -- TODAY SAYING ESSENTIALLY HOW MANY OF THOSE ARE GOING TO BE AT THE TOP OF THE LIST 30 YEARS FROM NOW. HE WAS SAYING WE WERE AS SURE OF OU OURSELVES BACK IN 1989 AS WE ARE TODAY BUT THE WORLD CAN CHANGE. >> INTERESTING. BUFFET DID THE EXERCISE OF H LOOKING AT THE MARKET CAPS AS HE ALLUDED TO IN THAT CLIP. EVERYONE SAW THE MEETING. DIDN'T WANT TO PLAY ALL SEVEN MINUTES OF HIS ANSWER. THE GREAT TAKEAWAY IS THIS IS A GREAT TIME TO BE AN INVESTOR IN THE SOCK MARKET. THE VALUE OF THE BIGGEST COMPANIES IN THE STOCK MARKET, ABOUT 20 TIMES HIGHER TODAY -- OR AT LEAST AT THE VERY TOP, THAN IT WAS JUST 30 YEARS AGO. BUT HIS LESSON, HIS ADVICE, AS TENDED TO BE THE CASE OVER THE LAST -- YOU KNOW, HE'S GOTTEN MORE VOCAL ABOUT IT IN THE LAST 10 OR 15 YEARS IS THAT YOU HAVE AN OPTION AS AN INVESTOR TO JUST BUY ALL THE STOCKS. YOU CAN GET AN S&P 500 FUND BASICALLY FOR FREE. I THINK IT COSTS THREE OR FOUR BASIS POINTS OVER AT VANGUARD, OR .3 OR .4 BASIS POINTS, EXCUSE ME, OVER AT VANGUARD. YOU'RE BUYING THE ENTIRE MARKET FOR FREE AND THE ENTIRE MARKET OVER TIME HAS GONE UP NICELY. YOU DON'T NEED TO BE ENGAGED IN TRYING TO GUESS WHICH OF THE BUSINESSES WILL BE LARGE OVER THE NEXT 30 YEARS BUT RATHER CAN ACCESS ALL THE BUSINESSES AND ALL THE APPRECIATION THEY'RE LIKELY TO ENJOY OVER THE NEXT 30 YEARS WITHOUT HAVING TO ENGAGE IN THE VERY DIFFICULT JOB OF TRYING TO PICK INDIVIDUAL SECURITIES ON WHICH ONES ARE GOING TO PERFORM BEST. >> JULIA, YOU KNOW, IT SEEMED TO BE A BIT OF A CAUTIONARY TALE HEAR THAT WARREN ONE BUFFET WAS TRYING TO TELL. HE WAS TALKING ABOUT TRADERS LOOKING TO MAKE 30, 40 TRADES A DATE. HE SAID, IF YOU LOOK BACK IN 1989, THE BESTS IN 1989 DIDN'T NECESSARILY DO WELL. >> THAT'S RIGHT AND WHEN YOU LOOK AT THE COMPANIES I THINK THERE ARE ONLY SIX AMERICAN COMPANIES ON THAT LIST AT THE TIME. THOSE SIX COMPANIES ARE NOWHERE TO BE FOUND ON TODAY'S LIST, WHICH IS DOMINATED BY AMERICAN COMPANIES, SPECIFICALLY SOME OF THOSE BIG TECH NAMES. BUT KIND OF BUILDING ON WHAT MILES SAID, WARREN BUFFET HAS LONG ADVOCATED FOR INVESTORS BUYING THESE LOW-COST INDEX FUN FUNDS RATHER THAN PAYING SOMEONE MANAGEMENT FEES TO PICK THE NEW THING TO SELL THESE DAYS, WHETHER IT'S THE LATEST IPO OR LATEST CPAC. AND THEN ONE OTHER SMALL THING I WILL ADD, BECAUSE THE LATEST LIST HE DID SHOW FOR MARCH 2021 WITH THOSE BIG TECH COMPANIES, LATER IN THE CONVERSATION, CHARLIE MUNGER DID BRING UP THAT LIST AND POINT OUT THAT APPLE HAS BEEN VERY IMPORTANT TO AMERICA, AND WE'VE DONE SO WELL IN THIS NEW TECH FIELD. AND HE ALSO SAID -- MUNGER SAID HE WOULD NOT LIKE TO PRESENT GIANTS BE BROUGHT DOWN TO LOW LEVEL BY ANTI-COMPETITIVE REASONINGS. JUST AN INTERESTING POINT HE BROUGHT UP LATER IN THE MEANING THAT HE'S VERY MUCH IN SUPPORT OF THESE BIG TECH COMPANIES WHICH HAVE BEEN UNDER A LOT OF SC SCRUTINY LATELY. >> YOU'RE RIGHT, JULIA. ANDY I WONDER WHAT YOU MADE ABOUT THOSE COMMENTS. THEY WERE ALSO ASKED ABOUT VALUATIONS, WHETHER THEY THOUGHT THEY WERE TOO SKY HIGH. DIDN'T SOUND LIKE THEY THOUGHT THEY WERE IN HE TALKED ABOUT THAT RELATIVE TO INTEREST RATES, AKIKO, SAYING YOU'VE GOT INTEREST RATES AT THIS LEVEL, IT MAKES STOCKS LOOK MUCH LESS EXPENSIVE. YOU DIVERSE INTO NEGATIVE INTEREST RATES, SOME INTERESTING THINGS THERE. ANOTHER THING THAT CAUGHT MY EAR WAS HIS DISCUSSION OF AUTO STOCKS AND THE HUNDREDS OF AUTO STOCKS THAT EXISTED 100 YEARS OR SO IN THIS COUNTRY AND HOW THEY ALL TURNED OUT TO BE BAD INVESTMENTS. THAT WAS INTERESTING. ANOTHER POINT I THOUGHT WAS INTERESTING WAS HIS TAKE LATE IN THE MEETING ABOUT SHORTAGES. GREG ALSO CHAMI CHIMING IN THER SAYING THE ECONOMY WAS HOT. BUFFET SAID IT WAS RED-HOT, AS A MATTER OF FACT, AND THAT THERE IS UPWARD PRESSURE ON PRICING THEY'RE SEEING THROUGHOUT THE BERKSHIRE HATHAWAY ECOSYSTEM, IF YOU WILL. SO A LOT TO CHEW ON THERE FOR INVESTORS IN BERKSHIRE HATHAWAY AND INVESTORS IN GENERAL. MUCH MORE TO DISCUSS HERE COMING UP. BUT WE'RE GOING TO TAKE A QUICK BREAK. STAY TUNED, AND MORE TO COME. >>> WELCOME BACK TO THE 2021 BERKSHIRE HATHAWAY ANNUAL MEETING SHAREHOLDERS POSTGAME PROGRAM. BUFFET TALKING A LOT ABOUT THE STIMULUS WE HAD OVER THE PAST 12 MONTHS AND THAT EFFECT ON THE ECONOMY. TAKE A LISTEN TO WHAT HE HAD TO SAY HERE. >> IT'S A FASCINATING TIME. WE'VE NEVER REALLY SEEN WHAT SHOVELING MONEY IN ON A BASIS WE'RE DOING IT OFF, ON A FISCAL BASIS FOLLOWING A MONETARY POLICY OF SOMETHING CLOSE TO 0% INTEREST RATES, AND IT IS ENORMOUSLY PLEASANT. BUT IN ECONOMICS YOU HAVE TO REMEMBER, YOU CAN NEVER DO ONLY ONE THING. YOU ALWAYS HAVE TO SAY AND THEN WHAT? AND WE'RE SENDING OUT HUGE SUMS. I MEAN, THE PRESIDENT SAID IT ON WEDNESDAY -- 85% OF THE PEOPLE ARE GOING TO GET A $1,400 CHECK. 85%. AND A COUPLE OF YEARS AGO WE WERE SAYING 40% OF THE PEOPLE WOULD NEVER COME UP WITH $400 IN CASH SOME WE'VE GOT 8 5% OF THE PEOPLE GETTING THOSE SUMS AND SO FAR WE HAVE HAD NO UNPLEASANT CONSEQUENCES. PEOPLE FEEL BETTER. PEOPLE GET THE MONEY, FEEL BETTER. PEOPLE LESSONING MONEY DON'T FEEL VERY GOOD, BUT IT CAUSES STOCKS TO GO UP, CAUSES BUSINESSES TO FLOURISH. IT CAUSES AN ELECTORATE TO BE HAPPY, AND WE'LL SEE IF IT CAUSE ANYTHING ELSE. IF IT DOESN'T CAUSE ANYTHING ELSE YOU CAN COUNT ON IT CONTINUE. BUT, NO, THERE ARE CONSEQUENCES TO EVERYTHING IN ECONOMICS. >> WHITNEY TILSON I WANT TO GO TO YOU AND GET YOUR REACTION TO WHAT BUFFET JUST SAID ABOUT STIMULUS AND THE EFFECT ON ECONOMY AND MARKETS? >> RIGHT AFTER THAT, MUNGER WEIGHED IN AND SAID, IF IT CONTINUES FOR TOO LONG, THE CONSEQUENCE WILL BE TERRIBLE, FURTHER MAKING BUFFET'S POINT. BUT IT REALLY REFLECTS THEIR HUMILITY IN THAT WHO COULD HAVE EVER EXPECTED ANY OF THIS? THEY SAID AT ONE POINT IT'S JUST THE MOST REMARKABLE TIME IN THEIR ENTIRE LIVES TO JUST SIT BECOME AND BE A SPECTATOR AND LOOK A WHAT'S GOING ON. AND THEY ARE BASICALLY -- TO BE A SUCCESSFUL INVESTOR YOU HAVE TO BE VERY ARROGANT TO BELIEVE THAT YOU CAN OUTWIT ALL THE OTHER INVESTORS OUT THERE. BUT YOU ALSO HAVE TO HAVE A TREMENDOUS HUMILITY, AND THEY OUTLINED THIS INCREDIBLE PUZZLE. THEY DON'T CLAIM TO HAVE THE ANSWERS. THEY DON'T KNOW HOW THE STORY'S GOING END, BUT THEY'RE ENJOYING THE SHOW, AND IN THE MEANTIME THEY HAVE THEIR HEADS DOWN, LOOKING TO BUY BACK THEIR OWN STACK, MAKE ACQUISITIONS, BUY STOCKS IN THE MARKET AND DO WHAT THEY'VE ALWAYS DONE AND THEY'RE NOT TEMPTED TO STRAY FROM WHAT THEY'VE ALWAYS DONE. IT'S A GOOD LESSON FOR ALL OF US. >> AKIKO, YOU HAD A TAKE ON THIS. SOME FINAL THOUGHTS GOING AROUND. YOU FIRST. >> TO WHITNEY'S POINT, THEY WERE ANSWERING A QUESTION THAT CAME IN AND SAID, WHY DID YOU JUST SIT ON YOUR HAND HERE WHEN THERE WERE MORE OPPORTUNITIES IN THE MARKET? I THINK WHITNEY BRINGS UP A GOOD POINT. WE HEARD WARREN BUFFET AS WELL AS CHARLIE MUNGER SAYING, LOOK, THE ECONOMY RUNNING IN HIGH GEAR. I DON'T THINK ANY OF US COULD HAVE PREDICTED THAT. I THOUGHT THEIR PGS ON THE AIRLINES WERE INTERESTING AS WELL. THEY HAVE GOTTEN SOME HEAT. WE HEARD WARREN BUFFET SAY, LOOK, THEY WERE THE BIG BENEFICIARIES OF THE C.A.R.E.S. ACT, BUT AT THE END OF THE DAY THEY WOULD HAVE STUCK TO THEIR POSITIONS, PULLING OUT OF AIRLINE STOCKS AND PARING BACK ON BANKS. >> JULIA, WHAT ABOUT YOU? REGARDING THE STIMULUS OR JUST IN GENERAL. >> SURE. THEY SAID PEOPLE -- I'M GOING PARAPHRASE HERE -- NUMB TO NUMBERS. TRILLIONS DON'T MEAN ANYTHING TO ANYBODY, BUT $1,400 MEANS SOMETHING TO THEM. BUFFET TALKING ABOUT CHARLIE MUNGER AND WE'RE ALL WITNESSING WHAT THEY CALL THE MOST INTERESTING-. I AM SO LOOKING FORWARD TO THIS MEETING IN 2022, BEING BACK IN PERSON WITH EVERYONE. IT'S BEEN ONE OF THE MOST UNPRECEDENTED TIMES OF OUR LIVES. I KNOW WE SAY THAT A LOT, BUT THIS MEETING LEFT ME FEELING MORE CONFIDENT THAN I DID LAST TIME THIS YEAR FOR SURE. >> AND MILES, FINAL THOUGHTS FROM YOU? >> THAT'S IT. WE'LL SEE EVERYBODY AT THE OLD MATTRESS FACTORY ON 13th STREET NEXT YEAR AFTER THE 2022 ANNUAL SHAREHOLDER MEETING. >> SHORT AND SWEET. LOTS TO CHEW ON OVER SATURDAY NIGHT AND INTO SUNDAY FOR SHAREHOLDERS AND FOR THE MARKETS IN TERMS OF THINGS WARREN BUFFET AND CHARLIE MUNGER DISCUSSED. YES, THE DYNAMIC DUO IS BACK, AND WE WANT TO THANK YOU ALL VERY MUCH FOR WATCHING THIS LIVE STREAM OF THE BERKSHIRE HATHAWAY 2021 ABOUT YULE SHAREHOLDERS MEETING HERE ON YAHOO FINANCE. HAVE A GREAT WEEKEND AND A GREAT YEAR. UNTIL WE SEE YOU AGAIN NEXT YEAR. BYE-BYE. THANKS.
A great Q&A session
Greg and Ajit are not like Warren and Charlie. They're out of place in this format (Greg pads his phrasing too much and Ajit needs a beta-blocker, he's so nervous and awkward). Ajit is more comfortable by the end. Greg never loosens up
Buffett really gets warmed up by around the 2-hour mark. Buffett and Munger no longer seem to care whether anyone wants to invest in Berkshire; they know the business is great and they don't feel the need to convince people who can't be bothered to understand it. That's the buyback mindset: we'll buy the shares if you don't want them
They acknowledge that we're in a zero-interest-rate Twilight Zone that's stranger than anything we've seen. Berkshire is the "enterprise in the whirlpool of speculation". The stock market prices we're seeing are a result of unprecedented government manipulation of markets
They acknowledge that the FAANG prices (and the KSU railway bid) only make sense because interest rates are so low, but still want to hold Apple. I guess they don't have any certainty about what's going to happen, so Berkshire will just hold Apple and ride the speculative whirlpool. Let things fall where they may (price-wise) and focus on the quality of the underlying business long-term?
Buffett and Munger are hilarious together. For example, the Bitcoin response, "I'm alright on that one!" They have lost respect for the investing (speculating) public and they don't seem to want to bother convincing people
Buffett and Munger seem happy to be around each other, and they're both having a laugh. Their chemistry is on display. A fantastically good meeting, one of the best ever
We don't know how much longer we get these two useful info. Please take the time too watch and enjoy. It's worth it I promise.
Transcript by any chance? Quicker to read than watching in my opinion