The Oracle of Omaha

April 2014

Berkshire Hathaway shareholders are entitled to attend the annual meeting held the first weekend in May in Omaha, Nebraska.  The three-day event is almost more of a non-stop party than a business meeting.  Clearly, it is a must-do for stockholders.

Things kick off Friday evening with an open house at Borsheim's.  Borsheim's Fine Jewelry was founded in Omaha in 1870 and has been a subsidiary of Berkshire Hathaway for almost 30 years.  Free booze flows freely, and appetizer stations are everywhere.  Outside tents offer a dinner buffet, live music, and dancing.  The place is packed and the mood is, needless to say, festive.

Throughout the weekend, Borsheim's offers storewide discounts on a wide variety of upscale merchandise.  Attendees can also buy exclusive Berkshire Hathaway-labeled merchandise - perfect for Christmas gifts.

 

One year Borsheim's featured Sticks - a nationally acclaimed Iowa-based company that sells beautifully crafted art and furniture.  I have been a longtime fan of Sticks, so I was thrilled to meet artist-founder Sarah Grant.  With Sarah's guidance, Tom and I ordered a custom-designed Lazy Susan for Becky's medical school graduation.  

The annual meeting is held at the huge CenturyLink Center because the meeting attracts thousands of stockholders along with others who are lucky enough to get meeting credentials.

The party resumes on Saturday with entrance to a trade show featuring all the companies in which Berkshire Hathaway has ownership.  Among the companies that Berkshire Hathaway fully owns are Geico, Clayton Homes, Duracell, Fruit of the Loom, Dairy Queen, Pampered Chef, See's Candies, and BNSF Railway.  In addition, Berkshire holds large positions in Wells Fargo, Apple, Coca-Cola, and Bank of America.  Fundamentally, Warren Buffet invests in strong companies that demonstrate consistent earning power.  He likes "simple" companies that you can understand, and he holds on to them for a long time.

The trade show is an absolute hoot.  Essentially, all the Berkshire Hathaway companies have large booths or displays with generous giveaways.  You'll see the Fruit of the Loom guys attracting visitors to sweet deals on underwear, Dilly Bars sold for a dollar, and scads of freebies from companies like Heinz and Coke - just to name a few.  People walk out with huge sacks of See's Candies products because you'll never find more offerings at such sweet prices.

Warren Buffet always makes an appearance at the trade show before entering the arena's annual meeting spot.  He typically shows Board Director Bill Gates how to land a newspaper on the porch of a Clayton Homes porch - much to the delight of the crowd.

There actually is a business meeting, but it begins with a humorous video of Warren and featured Berkshire Hathaway companies.  You can count on the Geico gecko having a starring role, and you wish you could see the video all over again because it is so entertaining and clever.



Alas, the lights go down and the stage is lit with Buffet and his partner Charlie Munger seated at a long table, ready to field questions from anyone and everyone.  They do this for hours but keep up their energy with Coke, See's Candies and Dilly Bars along the way.  It's the ultimate product placement.  Buffet's Board of Directors are seated in the front row - a virtual Who's Who in the business world.  One year Bono sat with the Board who were as star struck as I was from the cheap seats in the arena.

Stockholders come and go from the arena all day, but Buffet and Munger hold fast, cleverly and clearly addressing a wide variety of questions and issues.  Many are concerned about the succession plan for the day when the brilliant 88-year old investor no longer heads the business.

Sunday finds people back at Borsheim's where Warren plays bridge Bill Gates and others in front of an adoring crowd.