I Took my Son to Buffett’s Berkshire Hathaway AGM (Again)

Honestly,
it
wasn’t
my
idea
to
drag
14-year-old
Isaac
back
to
Omaha,
Nebraska,
last
weekend.
Our
2022
trip
was
partly
revengeful
travel
to
compensate
for
a
pandemic-derailed
spring
break.
This
year’s
meeting
came
at
a
busy
time,
so
I
wasn’t
exactly
jumping
to
do
an
eight-hour
drive
through
Chicago
rush-hour
traffic,
endless
Iowan
cornfields,
and
prairie
lightning
storms.
It
was
Isaac
who
insisted.
He
had
emerged
from
the
2022
meeting
a
bit
of
a
Berkshirehead
and
wanted
to
see
how Charlie
Munger’s
passing would
change
things.

He
also
thinks
Warren
Buffett
is
hilarious.

For
me,
the
Berkshire
meeting
is
as
much
about
values
as
value
investing.
I
promise
Isaac
was
not
the
only
young
person
among
the
more
than
30,000
“Woodstock
for
Capitalists”
attendees
at
the
CHI
Health
Center.
Since
Isaac
predictably
replied
to
his
mother’s
questions
of
“how
was
it?”
and
“what
did
you
learn?”
with
“good”
and
“stuff,”
I’m
listing
some
virtues
I
hope
he
absorbed
from
this
year’s
meeting.

Virtue
#1:
Kindness

When a
representative
of
an
environmental
justice
group
in
Nevada
asked
a
challenging
question
on
utility
rates
and
renewable
energy
investment,
the
response
was
thoughtful
and
courteous.
No
matter
what
or
how
he’s
asked,
Buffett
treats
the
question
with
respect.

“Kindness
is
free,”
he
said,
noting
that
“the
world
isn’t
better
if
you’re
richer.”
Buffett
has
signed
the

The
Giving
Pledge,
committing
99%
of
his
wealth
to
philanthropy.
Kindness
is
also
essential
to
the
Berkshire
business
model.
Owners
want
to
sell
to
Berkshire
because
they
know
they’ll
be
treated
well.
I
got
a
classic
14-year-old
response
when
I
stressed
this
point
to
Isaac:
“yeah,
I
know
it’s
important
to
be
kind,
Dad.”
OK
then.

Virtue
#2:
Friendship

Asking
investing
successor
Greg
Abel
to
weigh
in
on
a
question,
Buffett
accidentally
said:

“Charlie?”

Warm
laughter
and
applause
filled
the
arena
(including
from
Abel).
The
traditional
opening
movie
was
dedicated
to
Munger’s
life
and
legacy,
including
some
of
his
most
memorable
quotes
(such
as,
“I’d
rather
throw
a
viper
down
my
shirt
than
hire
a
compensation
consultant”)
and
Buffett
crediting
him
as
Berkshire’s
“architect.”
It’s
clear
how
friendship
with
Munger
enriched
Buffett’s
life
and how
their
partnership
enriched
Berkshire.
For
his
part,
Isaac
was
disappointed
that
Berkshire
subsidiary
Jazwares
sold
out
of
their Warren
and
Charlie
Squishmallows position
(for
his
younger
siblings,
of
course).

Virtue
#3:
Humility

Buffett
took
personal
responsibility
for
a
failed
investment
in
Paramount
(PARA).
He
answered
several
questions
on
artificial
intelligence
(AI)
by
admitting
he
knows
nothing
about
it,
except
that
it’s
potentially
transformative
and
prone
to
deepfake
scams.
Though
he
is
one
of
Apple’s
(AAPL) largest
shareholders,
Buffett
quipped
there
might
be
a
little
man
inside
the
iPhone
for
all
he
understands
about
the
technology
(that
elicited
a
guffaw
from
a
digital
native
14-year-old).
But
he
also
described
himself
as
someone
who
wants
to
know if something
works –
while
Munger
needed
to
know how it
worked.
Understand
and
acknowledge
limitations.
But
no,
Isaac,
you
can’t
skip
homework
because
Algebra
falls
outside
your
“circle
of
competence.”

Virtue
#4:
Gratitude

Buffett
repeatedly
stresses
his
luck
at
winning
the
“birth
lottery”,
and
to
have
found
something
he
loves
to
do
and
people
he
loves
working
with.
He
thanked
others
throughout
the
meeting.
Though
Buffett
attributed
his
and
Munger’s
longevity
to
luck
(“Charlie
never
did
a
day
of
physical
exercise
and
did
not
watch
what
he
ate,”
while
Buffett
seems
to
subsist
on
See’s
Candies
and
Coca-Cola),
it’s
likely
that
disposition
has
contributed.
When
asked
if
he
worried
about
the
national
debt,
Buffett
replied
“I’m
not
a
worrier.”
That
said,
he
does
“think
about
it”
and
expressed
concern.
I
told
Isaac
a
positive
attitude
was
not
necessarily
a
substitute
for
vegetables
and
swim
practice.

Virtue
#5:
Reading

When
asked
if
he
was
starting
out
now
with
a
small
sum
to
invest,
Buffett
said
he’d
wade
through
20,000
pages
of
stock
information
to
identify
opportunities.
He
has
read The
Intelligent
Investor by
Benjamin
Graham
at
least
five
times.
Munger
once
said
“in
my
whole
life,
I
have
known
no
wise
people
who
didn’t
read
all
the
time –
none.
Zero.
You’d
be
amazed
at
how
much
Warren
reads –
and
how
much
I
read.
My
children
laugh
at
me.
They
think
I’m
a
book
with
a
couple
of
legs
sticking
out.”
I’m
keeping
this
quote
in
my
back
pocket
for
the
next
time
Isaac
spends
too
long
on
his
PlayStation.

Virtue
#6:
Security

One
attendee
asked
why
Berkshire
isn’t
spending
its
cash
pile, which
grew
to
a
record
$189
billion
(£152
billion)
in
the
first
quarter.
As
Buffett
wrote
in
the 2008
Berkshire
shareholder
letter:
“we
never
want
to
count
on
the
kindness
of
strangers
in
order
to
meet
tomorrow’s
obligations.
When
forced
to
choose,
I
will
not
trade
even
a
night’s
sleep
for
the
chance
of
extra
profits.”
Buffett
explained
the
current
cash
as
a
function
of
a
few
compelling
investment
opportunities.
Maintaining
liquidity
gives
Berkshire
the
ability
to
“be
greedy
when
others
are
fearful”
and
to
take
advantage
of
those
“occasional
times
when
we’re
the
only
ones
willing
to
act.”
I
decided
to
spare
Isaac
yet
another
lecture
on
the
benefits
of
deferred
consumption
and
the
miracle
of
compound
interest.

Virtue
#7:
Succession
Planning

Apple
chief
executive
Tim
Cook
attended
the
meeting
and
was
held
out
as
an
example
of
successful
corporate
baton
passing.
Ensuring
continuity
is
critical
to
legacy
building.
What
future
Berkshire
leaders
Greg
Abel
and
Ajit
Jain
lack
in
humour
and
folksy
wisdom,
they
make
up
for
in
intelligence
and
integrity.

Their
comments
on Berkshire
businesses
BNSF,
Berkshire
Hathaway
Energy,
and
Geico were
insightful.
Abel
ably
(sorry,
had
to
do
it)
summed
up
Berkshire’s
culture:
“we
treat
our
shareholders
as
partners
and
our
managers
as
owners.”
Isaac
told
me
he
might
not
want
to
drive
eight
hours
to
hear
Abel
and
Jain
speak,
but
he
does
not
plan
to
sell
the
Berkshire
investment
that
he
will
inherit.
My
succession
planning
at
work.

From
The
Archive: Why
Berkshire
Hathaway’s
Success
Will
Continue
After
Charlie
Munger…and
Warren
Buffett

Virtue
#8:
Global
Citizenship

The
meeting’s
first
questioner
had
travelled
from
Hong
Kong
and
asked
if
Berkshire
would
be
investing
more
in
China.
Several
hailed
from
Germany.
One
young
man
had
made
the
trip
from
New
Zealand –
another
from
Malaysia.
A
passionate
Canadian
asked
if
Buffett
would
allocate
more
capital
north
of
the
border,
and
an
Indian
extolled
the
merits
of
his
home
market.
Buffett
said
Berkshire
would
remain
mostly
domestic
in
its
investments.
But
he
also
keeps
tabs
on
most
global
markets,
repeatedly
mentioned
Berkshire’s
Japanese
holdings,
and
explained
the
company
would
continue
to
participate
in
the
global
economy
through
its
US-based
businesses.
Even
in
the
middle
of
America,
Isaac
and
I
felt
the
importance
of
global
connection.

Virtue
#9:
Patriotism

Buffett
repeatedly
stresses
his
luck
at
having
been
born
in
America,
and
he
did
so
here.

As
he
reminded
us
in
the 2020
pandemic-era
shareholder
letter:
“in
its
brief
232
years
of
existence
[…]
there
has
been
no
incubator
for
unleashing
human
potential
like
America
[…]
Never bet
against
America.”
In
this
year’s
meeting,
Buffett
wore
Berkshire’s
$5
billion-plus
tax
bill
as
a
badge
of
pride
and
chided
other
companies
for
pursuing
tax
shelters.
“It
is
beyond
arrogance
for
American
business
or
individuals
to
boast
they
have
‘done
it
alone,'”
he
once
wrote,
crediting
much
of
Berkshire’s
success
to
the
“American
tailwind.”
Patriotism
is
also
good
business
for
Berkshire.
“We
want
the
US
government
to
think
we’re
an
asset
and
not
a
liability
or
a
supplicant,”
said
Buffett,
alluding
to
times
Berkshire
is
able
to
provide
liquidity
on
favourable
terms.
On
the
drive
home,
Isaac
and
I
reflected
on
the
opportunities
enjoyed
by
generations
of
our
family
in
this
country.
In
a
divisive
election
year
when
its
problems
will
be
highlighted,
America’s
many
strengths
should
be
remembered,
too.

“Thanks
for
coming.
I
hope
you
come
back
next
year,”
Buffett
said
in
closing,
before
quipping:
“I
hope I come
back
next
year.”
Isaac
and
I
hope
you
do
too,
Mr.
Buffett.

This
article
originally
appeared
on
our
US
homepage
and
has
been
edited
and
republished
for
UK
audiences

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