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The next Berkshire Hathaway Q&A will obviously be different that the ones of the past several decades. No longer will either Warren or Charlie be on stage to answer questions. Tens of thousands of shareholders and visitors have flocked to Omaha to hear their views on a wide range of subjects. And why not? Two unique individuals with a wide range of knowledge ranging from investing to how to live a good life.

This represents both change and opportunity. Next year’s audience knows change is coming. That represents opportunities to improve the Q&A in one sense – to better focus it on information for shareholders. To somewhat return to the original purpose of Warren meeting with shareholders in a lunch room to discuss BRK.

I’ve noted two problem areas in most meetings. One is uncontrolled questions from the audience that provides little substance to shareholders who have spent their time and money to learn. Wasted valuable time. The second is relatively little new info about BRK’s business activities. “Tough” questions, while welcomed in principle, are mostly talked around or transitioned to another subject it seems to me. Munger was an occasional exception.

I’ve been trying to imagine what a revised meeting Q&A might offer – both business related but also respecting the desires of many for discussions on broader subjects. So, maybe have two different Q&A sessions?

The first would be with just Greg and Ajit on stage. And questions would be only related to BRK business activities – both write-in and from the floor. Obviously details about investing specifics and confidential info would remain off-topic. As would forecasting future business results. But questions about the broad business strategies, known problem areas (wlldfires & legislation, BNSF, markets, earnings, slow growth, opportunities, etc.) would be fair game. An add-on to the 10-K. (I’ve never fully bought into that the 10-K provides all the info we need to know.)

In the second session, the topics would broaden along the lines of past meeting, but with an emphasis on subjects of general interest. Ted and Todd would join Greg and Ajit for a panel discussion. They wouldn’t be there to answer questions about their investments – clearly off-topic. But both individuals have a broad range of knowledge concerning investing, business, the economy, and life in general.

Todd is a regular guest speaker at Columbia and other investment related meetings. Ted has a similar background, and the personality that would come closest to replacing Warren’s “like-ability”. This panel discussion could still provide the broader range of discussion that is so appreciated from past meetings. Adding these two to Greg and Ajit’s background would provide a group hard to replicate. I’d pay to listen to them. And shareholders would learn more about Ted and Todd.

That’s about as far as my thinking has progressed thus far.

We’ve seen changes made in the past to improve the meeting. Going to moderated mail-in questions was a huge step forward. I suspect BRK would welcome any well though-out suggestions that we might provide.

Texirish,
Good thoughts. I attended the Markel annual meeting last week. The first session of the morning of Markel's Annual Meeting was labeled "CEO Conversation Fireside Chat". A professor of the University of Richmond's business school led this session. The CEOs were Tom Gayner of Markel and Jennifer Mann, President of North America Coca-Cola. The second session was a panel of two CEOs of two firms Markel owns led by the Markel President responsible for the Ventures Group. The third session was a panel of Markel's International Insurance leaders led by Markel's President of Insurance. The three sessions provided insights into the operations, culture and future of those aspects of Markel. These sessions allowed audience members to raise questions at the end of each session.

Berkshire could employ a similar methodology for featuring its different companies and divisions. I know I'd appreciate getting to know the leadership, business challenges and future plans for companies within Berkshire.

The CEO fireside chat session provided some worthwhile information to me. Mostly I walked away thinking Jennifer Mann is a highly capable corporate leader capable of kicking butt, taking names and leading folks forward in a positive manner.

The Markel Ventures panel felt reminiscent of the late 1990s when I first invested in Berkshire. This was the time when Buffett was literally stating in the annual report of being open to talking to companies with $25M in revenues. This was the route for how many family run companies took lower valuations to sell to Berkshire to enable their companies, staff, and customers to continue and thrive going forward. Justin Boots, Acme Brick and many other companies traveled this path. The two companies featured at Markel's panel discussion were Metromont and Costa. Both companies are thriving inside Markel with the original leadership continuing in place for the two companies

The Insurance panel was quite worthwhile. Basically, Markel is now in many international markets where rule of law prevails and is expecting to double its market share over the next five years. A word about market share. First, many of the insurance companies and products are serving niche segments. Second, Markel's market share ranges from 0.5% to 2.0% of the larger property and casualty share in those large national markets. The premise is growing to 1.0% to 4.0% in these markets is attainable while continuing to seek long-term profitable business premiums.

Markel's afternoon meeting first dealt with shareholder matters and votes. Afterwards the meeting went into honoring Tony Markel as Emeritas Chair of Markel's Board. The gathering on the University of Richmond football field (under tents) was a good time for all despite a light rain falling with drinks and food in abundance.

I agree with Texirish, maybe it is time to change the Berkshire meeting format.

Uwharrie

Unless it is a stock that is still being accumulated it is a mystery to me as to why no questions can be asked about the investment positions. There are plenty of clips from long ago meetings where WEB was answering questions about them. At some point that changed and we even had WEB telling a questioner that, "We aren't in the business of giving away free information." Also in the past at some point information regarding Lou Simpson's returns became public knowledge. Warren even said that Lou had outperformed him. Yet, both Ted and Todd's picks and returns are treated like classified information.

When Lou Simpson retired WEB immediately sold every position. To me it was really surprising. Lou was obviously a smart guy with a tremendous long term record and I found it hard to believe that there were no positions that merited keeping. Now we go the present and positions that WEB took are being sold off and/or completely liquidated. Is he pretty much doing the same thing?

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