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Basically I saw the same things you other fans did. Turned out to be a better meeting than I expected.

Like everyone I was impressed and touched by the Munger tribute movie. The part that showed a long collection of two man partners from the past in particular. Lone Ranger and Tonto, Bob Hope and Bing Crosby, on and on - with a soft hymn playing in the background. When the obvious final pair - Warren and Charlie - were shown, it brought a tear to my eyes. That movie will be my lasting memory of this meeting. Grown men can express love for other grown men without being gay.

Re Greg Abel, I was pleased and impressed to see the improvement from last year in his stage presence. But I may have a little different take on it.

Last year Greg was known to be CEO in waiting. And he was relatively new in taking over BRK's widespread operations ex. insurance. Last year when asked tough questions, Ajit was concise, well informed, and blunt in his responses. Abel somewhat talked "word salad" as someone noted and, at best, only told "sweet truth." He didn't look good compared with Ajit and seemed to frequently glance at Buffett to be sure he wasn't stepping on toes. There's a reason. Last year Abel didn't really yet have time to know his businesses and people in depth. And you don't start out throwing people and businesses under the bus until you're sure of your footing. Ajit didn't have that issue, he already knew the people and businesses in depth. And he didn't have many people reporting to him. So he dove right into the issues. Abel bided his time.

This year Ajit was the same, and very impressive. But Abel now seemed well informed and confident in his job also. His stage presence was much stronger, he addressed issues directly, and seemed totally comfortable in his shoes as both operations manager and CEO in waiting. I'm very comfortable with him as the next CEO. And I'm very happy that Warren cleared up any question as to who would manage the investment portfolio. We're in good hands.

And, as Ajit pointed out, Warren gently reinforced that Greg and Ajit were in charge. Berkshire is a better business with Greg and Ajit managing operations. Any who may have coasted a little under Warren aren't doing so now. They're better at running businesses than Warren.

Re the big stock buybacks from charitable gifts, I join others in cautioning not to put the prices paid as representing some discount from a fair price for such volumes. Warren would not take advantage of such gifts to make money. They would have been bought back from the charities.

I could not help taking notice of the impact age is having on us senior folks. Warren using a walking stick. Carol Loomis needing a lot of help from her daughter to answer Warren's question. Warren's stage presence in the first half and the amount of rambling. I found myself wanting to shout: "Damnit, finish and move on" on several questions. Did anyone else notice the desk sign that faced him which he turned around at the end of the meeting? It said "Shut UP." Warren knew it too going in. He was much better in the second half.

The wide spread of mental acuity also showed in clips and interviews. No reduction with Charlie. Buffett's sister seemed very mentally alert at 90. I would put Warren and Ron Olson as now more showing their age. Warren even talked about this concerning himself.

Omaha will certainly feel the impact if Buffett isn't around next year. One of the reasons I stopped attending the meetings in person was that Omaha steadily morphed from a pleasant MidWest city in 1998 to New Orleans at Mardi Gras in the way increased demand drove up prices. Since I had stopped learning much new by the 2012 meeting - I attended every year in between - I saw no reason to keep attending rather than to meet with old friends and make new ones. And old friends quit attending also for similar reasons. There was ample reporting on the meeting itself and now recently we can watch it via the internet.

Otherwise, as said earlier, I saw the same things others have reported.

I think most would agree with your assessment Texirish. Thanks for sharing your thoughts.

The most memorable takeaways for me were:

Making decisions by committee is not the Berkshire way in the past and it’s not going to be in future. Abel will be the capital allocation boss and he appears to be hard working, intelligent and trustworthy. We are very fortunate to have someone of this quality running a public company.

It’s interesting how each of the personalities are so different but yet all have a common value investing, integrity, work ethic philosophy.

Warren the savant. Pouring over financial reports. Thinking about competitive advantages and their sustainability. Avoiding risks from betting on things he didn’t understand. Independent thinker. Super human patience. Enough aggression to swing hard at the right moment and to concentrate his investments. Trusting of quality people. Generous with people. Honest and trustworthy beyond any human standard. Positive and optimistic. Modest. Wise. A teacher. A nose for avoiding trouble and losses. Simply an outstanding human being and utterly adored be everyone he helped along the way. Still working at 93. Adored and respected by his children. Kudos on a wonderful life.

Charlie, as Warren described yesterday, was incredibly curious about everything. Kind of like the opposite of AI. Real intelligence and knowledge. A sounding board for Warren. Helping him avoid pitfalls, solve problems efficiently and identify opportunities. And perhaps the architect of Berkshire. Now an important institution that plays an important role in the financial system, energy, insurance. An American organisation, that is respected globally, at time when charlatans and self serving speculators abound.

Ajit Jan. The more we get to know him, the more we love him. His skill at running insurance operations is unparalleled it seems. The results over multiple cycles speak for themselves. A very dangerous business that eats mortals for breakfast. Great to hear Ajit talk about who would succeed him if hit by a bus. Telling us he is not planning on retirement anytime soon and as you might expect, in an operation like this, there are others with the insurance gifts. It’s clear Ajit is an independent thinker. No hesitation calmly stating his logical rationale candidly and fearlessly, regardless of who is listening. Similar to Charlie in this regard. Facts and logic matter most.

Todd and Ted. I have listened to interviews with both and read about them. Clearly both gifted stock pickers. Similar to Warren, in the sense they don’t need to work for Berkshire but simply love what they do and being part of something bigger, honourable and special. Different experience and background. Todd now with operations responsibility and keeping on top of stock picking at the weekends. Again, long may they continue to provide value to Berkshire. Will provide invaluable sounding board and sector knowledge, as well as idea generation to Greg Abel. We are extremely fortunate to have gentlemen of this quality working for Berkshire.

Greg Abel. Energy expertise is clearly outstanding. Big CEO skills set. Not someone people will want to disappoint. Gives credit to others. Very smart and strategic, combined with a work ethic that means he knows all the details. Probably a better manager than Buffett. In the trenches leading by example, adding value. Operational talent is perhaps harder to find than capital allocation. Problem solving. Creativity. Dealing with people internal and external. Does he have both operational strengths and capital allocation skills. Of course he does. Made a point of stating yesterday to Warren, that Warren’s capital allocation philosophy will endure. Greg is in charge. He will ensure Berkshire is a good custodian of shareholder capital and will never lower return on asset expectations just to do something. He is not Warren Buffett and may have a smaller circle of competence than Warren Charlie, but given Berkshire’s size, I don’t see this as an issue. Greg’s performance over the next 10 or 15 years will have a direct effect on the value of Berkshire Hathaway. New management is taking over, or essentially already has it seems. Am I happy to entrust a fair amount of my family’s capital with Greg and company? Yes I am. And we still can benefit greatly from Buffett’s experience and magic. But unfortunately there is not much opportunity these days and Warren is slowing down and depending on when opportunity comes again, he unfortunately may not be around to see it. But we’ll see. Maybe Warren’s last chapter will be his best yet.

My other main takeaway from the meeting was the obvious lack of opportunities to deploy capital.
Not only is nothing much being allocated but we are now selling a little. Warren was very careful not to comment on the price of the market, or anything related. My interpretation of what he said and his actions is anything can happen. There is nothing big and worth buying currently. He has not reduced the equity portfolio significantly. We are not necessarily is some kind of super bubble. And that could happen in future years. But Berkshire has significant firepower and minds prepared to use it and perhaps more aggressively than in previous crashes, if that was to happen. But there is just no way of knowing which of the probabilistic outcomes, will actually play out over the coming years. Berkshire’s returns will be modest but we’ll do ok and we will be the last man standing, in any event.

Hold and buy more on any weakness (unlikely) is my recommendation to myself. 30 to 40% of my equity portfolio is about right. 90% is not warranted at current prices and the post untested Buffett Munger era about to unfold.

What a complete joy to be a shareholder of the company, so that it creates enough personal interest, to learn and observe such high class people at their work, if only from a distance.

“Since I had stopped learning much new by the 2012 meeting - I attended every year in between - I saw no reason to keep attending rather than to meet with old friends and make new ones. And old friends quit attending also for similar reasons. There was ample reporting on the meeting itself and now recently we can watch it via the internet.”

Thanks and I agree with most of your points. I am in Omaha for the third straight year and will keep making the pilgrimage. There is great energy here and a lot of youthful attendees from worldwide. The weekend to me, and most here, is not only about the AGM and of course seeing and hearing Warren in the flesh, but also attending the sub-meetings (Gabelli, VALUEx, MKL dinner/ brunch, get togethers with well known equity managers) with quality learning from not only the presenters and panels but also from wise fellow owners. As you stated, the ongoing friends & relationships are a huge reason I attend as well. Maybe most importantly, Chris Bloomstran made a terrific point which I agree with, we as shareholders want to maintain this passion and loyalty & show active support for this culture and everything WEB & CTM have built. Attendance is of course a lot of fun, but it also makes me feel I will be showing active support of Greg, Ajit & the Board & culture as we own Berkshire beyond Buffett. Most folks I know are committed to coming year after year. My only regret is that I wish I’d attended starting many years ago.

Well done EVBigMacMeal.

Yours is a post people should find a way to save and recall. Great summary of key people past, still present, and keys to the future.

You mentioned one point that I should have recalled. Warren said that he would do a better job of deploying capital in a future market meltdown than he did in 2008-09. He did lend money on attractive returns during that period - grew assets for future deployment when repaid. But he didn't make many deployments "Of Permanent Value", BAC being the possible exception.

Was glad to hear him make that statement. It is significant.

I think that's the game plan we're now following.

"he didn't make many deployments "Of Permanent Value""

BNSF was purchased in February 2010, amidst the depths of the 2008/2009 financial crisis. Back then, many (including myself) thought the market would take a deeper dive.

I concur with all points, Tex.

And I think we have reason for optimism on multiple counts. Uncertainty is over, Abel has proven he clearly has the skills, attitude, temperament,and integrity. Buffett has been able to witness this first-hand on the job. For several years.

Both of us go back to when Berkshire was a different animal. It WAS then what the public incorrectly thinks it is today: principally a collection of investees/stocks. The fact is we saw Warren gradually transition this over a quarter century to principally a collection of wholly owned businesses (is it 80+ Now?)with a stock portfolio. That’s what we are today. In both cases nothing matched Insurance.

That transition took a long time. And, frankly, it’s often been quite bumpy.

I actually think the THIRD phase is set up to be substantially better than the present phase. And Greg may be a much better man for THIS job than a 93-year old Warren. Or an 65 year old anybody! Our subsidiaries have needed a LOT of work. They’ve collectively underperformed. For years. But they are fundamentally, generally, excellent businesses with strong moats.

The magic is: Warren has set up a prolific cash generating stream even with Burlington, GEICO and other major subsidiaries in the process of righting their ships. Abel can really go full blast tuning this thing properly. The MASSIVE asset collection of the past quarter century is gonna get finely tuned. Sure, We’re gonna incrementally add an elephant or 2 but what we own, the largest capitalized businesses in the USA ..Will PERFORM at a level Buffett envisioned. But has never seen fully blossomed.

Charlie was the architect of Warren’s house. Warren was the architect of Greg’s house. Those who say “how can Berkshire get much bigger—it’s so big”. This is a world with $2 and $3 billion standalone companies. Berkshire is valued-less than ONE BILLION with multiple S&P 500 equivalent subsidiaries, dozens of other subsidies and a tidy $350 Billion in stocks. It can grow ALOT.

We are at the beginning of something. Phase 3. And it could be the best Phase yet. Berkshire. OPERATING. Per share progress and earnings could run far far ahead of revenue growth. What Cook did at Apple can happen here. Greg can get us there. It’s a phase he is the perfect guy for imo.

BNSF was purchased in February 2010, amidst the depths of the 2008/2009 financial crisis. Back then, many (including myself) thought the market would take a deeper dive.

It's true it was a big purchase, and the same general era, but I wouldn't call it the depths of the crisis.
The average S&P 500 firm was up 75% from the March 2009 lows on the day the acquisition was announced. The storm clouds were long gone by then.

I have long known that Berkshire didn't sit on their hands, they deployed a LOT of capital through the crisis period (about $46bn plus the later cost of warrant exercises). But I hadn't really thought before about the nature of the commitments being mostly of finite duration. I guess the thinking at the time was that by the time the fixed income and warrants and so on had matured there would likely be some other new big capital deployment opportunity for the funds being freed up, but this is the assumption that turned out to be wrong in a meaningful way. At that scale, there still hasn't been a target rich shopping environment except for a too-short-to-act window at the pandemic lows. (not too short for us mere mortals, but too short for people trying to deploy $100bn). The credit crunch era investments were big and made a lot of money, so we can't fault that. But it was a missed opportunity to do more lasting investments. As a random example, Costco was trading under $50 for roughly 8-9 months.

Jim

The credit crunch era investments were big and made a lot of money, so we can't fault that. But it was a missed opportunity to do more lasting investments. As a random example, Costco was trading under $50 for roughly 8-9 months.

I agree and second that with another example Starbucks, which was trading at a split adjusted price of below $4. A 20+ bagger since then. Not a tech stock or declining industry, very much in Buffett's zone of competency.

Another example is Apple selling below $3 split-adjusted in March 2009; a 50+ bagger since. It was 2 years after introduction of iphone and not everyone would have foreseen the awesome future growth. And Buffett viewed it as a tech stock whose future he couldn't predict. But he certainly made up for that later when he saw it as a great consumer products company.

One of his worst investments then was the twice out of Chapter 11 drywall maker USG. The ultimate cigar butt, and he didn't get even a puff out of it. He didn't heed Munger's advice to invest in wonderful companies at fair prices.

While he may have made decent money "saving" GS, GE and BAC, the opportunity cost of not investing in great companies at tremendous discounts was significant.

Not just Buffett, but several other well regarded value investors, viz. Leucadia missed out on the opportunities of the GFC and are no longer around.

As a random example, Costco was trading under $50 for roughly 8-9 months.

I thought I remembered a Owner-related principal that said a managerial "wish list" will not be filled, but my memory was not correct. It reads:

A managerial "wish list" will not be filled at shareholder expense. We will not diversify by purchasing entire businesses at control prices that ignore long-term economic consequences to our shareholders. We will only do with your money what we would do with our own, weighing fully the values you can obtain by diversifying your own portfolios through direct purchases in the stock market.


I do hope that they keep a managerial "wish list", with a price target for those short periods when everything is on sale.

By the way, I don't see a link from the main website, but the document exists nonetheless:

https://www.berkshirehathaway.com/owners.html

Whitney Tilson’s observation & comments on the annual meeting,

https://stansberryresearch.com/articles/notes-from...

ciao

If I had closed my eyes and listened to him yesterday versus, say, 25 years ago, I wouldn't have noticed any difference.

I damn near stopped reading when I read this.

Later I did. I ignored the opening sales pitch but the later stuff got too much.

I appreciate you sharing the link. I'm just not a fan.

Tilson is terrible. A grifter like many others riding in the Berkshire wake.

Additional annual meeting observations:
a. I walked into the Pilot booth and said my estimate is the typical Buc-ee's location takes in an estimated 750 million or more dollars annually. I said this would be a great bolt-on acquisition for Berkshire. They smiled at each other and one person made the mouth zip motion to her fellow managers. Buc-ee's is owned by two guys in their early 60s and has 58 locations at last count.
b. Berkshire's TerraPower nuclear project is now not expected to come on-line until 2032 because of sourcing issues with the HALEU fuel. The previous supplier when the project started is in Russia and now is caught in geopolitics. The new USA based source is working to get DOE certification.
c. I asked about re-conductoring transmission lines and where this stands within Berkshire's utilities and I got basically nothing answers with shoulder shrugs. I would think this is a no-brainer investment IF Berkshire were allowed to receive a fair return on investment. https://www.utilitydive.com/spons/how-composite-co...
d. The BNSF manager I spoke with said there is only one (1) bridge remaining to be rebuilt to double-stack height standards on the main line between Chicago and Los Angeles.
e. I was impressed with continuing innovation in a number of subsidiaries. For example, I asked about the exterior paint with UV and mildew resistance Benjamin Moore was touting in their booth. It has some impressive chemistry innovations. Lubrizol was another company that is forging ahead with innovation. CompuZol, a dielectric fluid designed for data centers appears to be getting traction against other fluids in this category. Lubrizol featured its additives for many well known consumer products in the cosmetic, automotive and other fields.


My opinion is obviously worth zero and here goes:
Methinks Warren is raising cash to buy a collection of companies with annual revenues of 20B to 60B at fair prices. Private equity firms are having a bit of an existential crisis as they cannot unload their holdings that were time stamped to be unloaded in 2022, 2023 and now 2024. The flipping game between private equity firms still exists, just that the potential buying firms are discounting more heavily. A fellow I stood in line with Saturday morning at the meeting works in one of the largest banks as a regional private wealth manager mostly to wealthy individuals needing loans to buy jets or real estate without selling a portion of their asset holdings. He gave an example of a client whose fund last sold a holding in 2019 and has now been working five years to sell its second holding. It is looking like the deal will go through later in 2024 but not at the valuation originally projected. Today I read an article about how the Swensen-nification of college funds has put many of them heavily into alternative (not bonds and not public stocks) investments. What is known of these these funds is many are seeing lower returns than the S&P on their holdings. Additionally, collectively these institutions that were harvesting 4% of their AUM ten years ago and now averaging 14% annual harvesting to cover scholarships, salaries, and other collegiate expenses. Yes, there is said to be huge amounts of dry powder $$ available to private equity, but what happens if we get a big market downdraft and maybe some other factors spooking the asset holders? If this happens is maybe Warren goes out in a blaze of acquisition glory snapping up the best of the private equity holdings for a fair price (I remember the Green Mail era of the 1980s. Fortune 500 companies sold their best holdings and not their less attractive divisions because the buyers balked at the unattractive candidates and only wanted the good stuff). Hey, but what do I know? I'm just throwing an opinion into the Berkshire strategy pile.

Uwharrie

Uwharrie,

Please keep sending your thoughts and observations. I find them quite valuable.

The more I listen to Warren and watch his actions, the more convinced I become that he envisions a scenario such as you describe. He says he obviously doesn't know when it will happen - but it's always done so in the past. He has formed a shareholder base that will support his patience - whether it pays off for him or his successors.

There's a lot of collective wisdom in the members of this board. Let's continue to share it.

Tex

I can only add a bit of color to what are thorough observations of the meeting.

My wonderful, grey-haired husband went out early, alone, to secure seats for us in the main auditorium. He says he was blocked and tackled by enthusiastic young men hurtling over rows to snatch the best seats. So, while inside the arena, we were a bit further back than we liked. A family of four, sat directly behind us and the children were clearly too young to be there. They moaned and barked continuously while crunching the plastic wrappers that covered their squishy toys. Mother said she was sorry but did not remove the noisemakers and Dad was focused on the meeting. So, crunch, crunch, bark, moan was pretty much what I heard instead of whatever Warren, Greg or Ajit had to say in the morning session. Thankful for CNBC.

We found much better seats after lunch.

My knowledge always deepens whenever I attend a meeting. "Re-learning" that Buffett has basically created Fort Knox with the continual replenishment of float, which allows for the purchase of other fine, safe businesses to add to the cash flow is always awe-inspiring to me. Also, understanding how the great architect of Berkshire, Charlie Munger, was so foundational to what Berkshire has become. Yin to the yang.

Though I encountered Warren, first, and was instantly smitten, Charlie's blunt observations, wit, practicality and honesty were what ultimately sealed the deal. When Charlie spoke, I knew he said what he thought was true, not what he thought anyone wanted to be true. I knew I was safe.

Becky's last question of the day to Warren, from Devon Spurgeon, was about Charlie's will and the first codicile, which was an ethical bequest of a transition of duty, rather than a material bequeath. She asked Warren, "If you were to make an ethical bequest to Berkshire shareholders, what duties would you impose, and why?"

He said, "I'd probably say, read Charlie [He mentioned Poor Charlie's Almanac earlier.] Also (paraphrasing), Whether you're rich or poor, kindness. Being kind. And his last sentence was, "...if you're lucky in life, make sure a bunch of other people are lucky, too."

-------

Tear time and standing ovation.

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Two other things,

1) we had dinner at the bar at the Marriott next to a young scion of a family-owned realtor in south Miami (my husband has the card). Their business is one of 300 nation-wide franchises, which are part of the larger Berkshire Hathaway HomeServices network, and has been one for ten or fifteen years (!), I forget which. I asked what he thought about the class action lawsuit and if it would affect their business. He thought it would ultimately be a win, since his company already had contract/agent agreements (I don't know what those are, exactly, but I think I get the picture), so it wouldn't be a problem, at all. He also said, they often get voluntary bonuses from clients for a job well-done, already. Also, his business benefits from Berkshire because of name recognition and an acknowledged higher level of integrity. (!) He also said his clientele has significantly improved in quality because of the name, while Berkshire benefits from them because of their on-the-ground expertise. Win/Win.

and, finally,

2) Husband and I were alone, in the Marriott elevator, with, Guy Spier! Yay. He didn't recognize us even though I think Bill and I each shared two separate See's Candy Tours with him--and he tried for several years to get us as clients, sending us a nice bound book on, Lists. I didn't recognize him, but he had a large clearly-marked name tag, so we had the advantage.

There you go...That's it.

“As a random example, Costco was trading under $50 for roughly 8-9 months.“

That stings Jim. A 15 bagger error of omission. Call it a $10 billion investment x 15. When Charlie Munger was telling him daily it’s a buy.

I loved Buffett’s joke about him and Charlie on the plane that was hijacked. Charlie endless lamenting the virtues of Costco. Hijacker asks Warren if he has any last wishes: yes kill me first.

Warren said no to Costco because it was a retailer and retailers are difficult businesses. Maybe it was Warren that was the abominable no man all these years. That’s certainly going to cause some missed opportunities but of course as you have pointed out before, avoiding the losses was probably the secret ingredient.

As it turned out, Warren avoided Alibaba another “God damn retailer”. So maybe it one each for Warren and Charlie.

If Berkshire now had $150 billion in Costco we would be wondering if he should lighten up at 50 times earnings, for a retailer.

The Costco error of omission shows how difficult investing is even for the person who is the best ever to play the game. It reminds me how the incredible bull run we have been on for a very long time has made probably all of us to some degree believe we are good investors. We will see what the investing Gods have to say about that over the next 20 years…

a. I walked into the Pilot booth and said my estimate is the typical Buc-ee's location takes in an estimated 750 million or more dollars annually. I said this would be a great bolt-on acquisition for Berkshire. They smiled at each other and one person made the mouth zip motion to her fellow managers. Buc-ee's is owned by two guys in their early 60s and has 58 locations at last count.

I love Buc-ee's and would really love it if it got bought by Berkshire.

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