2000 Berkshire Hathaway Annual Meeting (Full Version)

Berkshire Hathaway annual shareholder meeting (April 29, 2000)
Video combines Morning session & Afternoon session.

[GustavoLopez-feur]

These historical videos are a Jewel! Thank you for sharing!

Of a great interest (at least for me) was a stockholder recommending National RV (19:38) to Buffett and Munger, as a non discovered Value Gem. The company went bankrupt in 2008... laying off around 600 employees at its Perris headquarters...

"Value Investing is simple, but not easy" Warren Buffett

[legalmonkey]

I just love watching Charlie Munger's satisfied smile. He just seems pleased with himself. :)

[leightonschmitt]

Let's talk about National RV the company referenced in the first question (starting at 11:57).

The company really was trading at around 4x trailing earnings, and near book value. However, forward earnings were way different. They made RV's of course. According to their annual reports, the RV market softened in 2000 - 2003. NRV saw revenues fall 21% from 99 to 2000 and 24% from 2000 to 01. Due to the loss of operating efficiency and heightened SGA and costs (primarily marketing they say) the company went from profits in the 20-30M range to losses in the 10-20M range. Their revenues fell below their cost of goods (which is a ridiculously bad place to be) and stayed there basically until 2007.

They also had a fairly major accounting scandal and had to restate 5 years of earnings. From the time of this meeting to Q3 2007 the book value of the company dropped from 140M to just 24M. They still never got their costs under control and in November 2007 closed the plant in California laying off 600 employees.

So sometimes a "cheap" company can be a trap, I guess is the lesson.

[RoddyStafford]

It seems as thought they paid attention to the comment about National RV being a good business. Five years later, they acquired Forest River, Inc.

[JenPurple]

13:27 Business worth = PV( All Cash Flows); “a bird in the hand is worth two in the bush” When & How & Alternatives

[JenPurple]

25:02 Mania in Nebraska farmland 1980s, an acre produced < $70 sold for > $2000 when internet rate was 10%, killed many banks and borrowers

- fallout to the whole economy like 1920s
- isolated sector bubble bursts

[ryanl.]

At 00:55:40, Monish Pabrai asks a question. Thats amazing, as he became, and is, very close friends them both today!

[tcc]

Fascinating moment in time as the Internet Bubble peaked just a few weeks before this meeting in 2000
BRKB was 50% off its high, down to $27 (vs $444 today in 2024!)

[JenPurple]

4:18:03 We love products will travel. Some travel some don’t. Candy bars, Soft drinks, incredible difference within the US, market share gap can be significant.

[harris]

Valuation of a business 14:00- 21:00
Hight tech stock speculation 23:00-27:22
Will the internet affect your businesses in a negativ way 28:15-34:53
Intrinsic value and risk 40:44 -45:14
Insurance business 46:16-

[SeenaAbedi]

1:38:02 Charlie Munger says that he and Warren are right about dividend policies and that all leading business school in the US, all the professors in finance and all the leading economics departments are wrong

[JenPurple]

1:11:43 1964 American Express was at significant loss, but what it will look like in 10-20 years late. Focus: A stream of cash will be delivered discounted at appropriate interest rates.

[booneguy]

Charlie's smile cracks me up every time. 😂

[JenPurple]

4:45:00 Reinsurance business future: quite deviation from means for individual insurers.

[JenPurple]

4:49:41 Charlie on reinsurance: not a commodity business, such a huge time lag between premium and performance given.
The willingness and the ability to pay.

[JenPurple]

58:40 Inevitables - wonderful businesses, the danger/risk of going to other mediocre/not so wonderful businesses …

Share of the mind, favorable, anytime you can charge more and maintain/increase market share - very special

1:02:16 American Express vs The Dinners Club
Charging more, taking market share away, a newer product at a higher price, the dominance/power


1:06:18

[JenPurple]

1:28:39 The BEST time to buy stocks when interest rates were sky high, looks like safe to put money into treasury bills, prime rate 20% at 1980s, better to be buying equities at that time bc when interest rates change, the equities value change even more.

[erandalee]

That 10 year old hit the nail on the head

[SeenaAbedi]

3:43:30 Asks about different evaluation methodology, like EVA in particular. Munger calls it twaddle and bullshit and says it's as useless as theology.

[JenPurple]

2:13:04 Durable sustainable competitive advantage - the core

Study the successful ppl/products, why and how they did it? Why no new entrances? What gives u the moat? - Key

Study Mrs.B, State Farm, characteristics, lessons, focus