2005 Berkshire Hathaway Annual Meeting (Full Version)

Berkshire Hathaway annual shareholder meeting (April 30, 2005)
Video combines Morning session & Afternoon session.

[JenPurple]

*** Rising costs, price level, margin compromises ? *** Finally a great real question! 54:14 Depends on the industry, raw materials, lag on pricing increases, squeeze margins (temporary), overtime businesses with strong competitive positions will pass it through labor/raw materials inflation

[SeenaAbedi]

4:05:34 Charlie quotes a person who said that no man is fit to hold public office if they aren’t perfectly willing to leave it at any time.

If that person disagreed with what the government asked him to do, he could go back to being the most sought after lawyer in the world. He didn’t need the governments salary, he had his own identity.

[drilldrulus]

Durable, competitiv advantage, management we like and trust to a reasonable price

[SeenaAbedi]

1:19:20 Warren mentions what happened to farmland in Nebraska, 25 years ago when people were running from cash and overpaying for farmland. There was a farm being sold for about 2 000$ an acre in the 1980's and a few years later, Warren ended up buying it for 600$ an acre from the Federal Department of Insurance Corporation.

Many banks failed in Nebraska, some banks that had been able to survive the great pression. People go crazy in economics.

[SeenaAbedi]

3:55:23 Charlie’s recounts a story of a nice man who had a 2.5 million dollar house and 5 million in equities. That man started using puts / calls and in due time he had nothing left and started working in a restaurant.

That type of destruction wasn’t possible until all the gambling instruments and leverage was created for retail investors.

[SeenaAbedi]

4:05:02 Warren has been on 19 boards and he’s never seen a director, where his fees where important to him, object to an acquisition proposal, object to a compensation arrangement to the CEO, it has never happened.

[SeenaAbedi]

1:46:44 Warren foresees the 2008 housing crisis and explains it by giving an example in layman terms.

[SeenaAbedi]

35:30 Warren shares a story about a known investor who wanted to buy an insurance company, although he had no knowledge about it because he'd otherwise have to return the investor's money which meant he wouldn't make the 2% fee.

[JenPurple]

0:05 Show appreciation for friends, employees, and families ❤

[SeenaAbedi]

38:28 Warren explains why he got interested in the stock market at the age of 7 and talks about his journey.

[christnimrod]

Thank you for your Timeless Wisdom Warren and Charlie. I AM your Friend Nimrod (Genesis 10:8-10; Matthew 1:1-16 is the Genealogy of My Brave, Conquering, Courageous and Bold Twin Brother Jesus Christ.) Continue to Prosper. Prosperity is your Divine Right as you both already know. Amen.

[JenPurple]

Volume, trading activity
3:05:42 The profits of exchange coming out the trading activities

[JenPurple]

Select mangers 17:16 Passion, love, energy, integrity for the business

[SeenaAbedi]

2:27:51 Charlie Munger: " I want you to remember one of my favourite sayings with asset allocation. If the things not worth doing it all, it's not worth doing well. "

[JenPurple]

1:21:12 When housing price increasing at far grater rate than construction costs or inflationary factors, pretty serious consequences “sometimes”.

[SeenaAbedi]

3:41:04 Munger mentions how real estate is having bubble evaluation problems and many of his rich friends are selling their worst properties for bids that over exceed their highest expectations.

[SeenaAbedi]

1:35:54 Warren quotes Charlie : An ounce of prevention is worth a pound of cure

[JenPurple]

1:56:04
“Unreasonable expectation” from the headquarters that earnings have to go up with NO volatility

[JenPurple]

Businesses do not need expectations quarter after quarter 1:57:03

1:57:49

Setting up a system that exerts financial or psychological pressure on the people around you to do things they don’t wanna do in order to avoid disappointing you it’s a terrible mistake.

[JenPurple]

2:03:26 When Charlie first did think of business? Love the game and winning.