Thoughts from Attending the 2019 Berkshire Annual Shareholders Meeting.

This time of year I am usually fresh off my fix and fill about the legendary success and wisdom of Berkshire Hathaway's Warren Buffet and his vice-chairman, Charlie Munger. The period around Berkshire’s annual meeting, where Warren and Charlie reveal their thoughts in abundance, and get extensive media coverage while doing so, is where I get recharged and re-reminded of the simple, basic, common sense that I need to carry me though the rest of the year.  Predominantly investing in biotech companies I don't resemble the typical Buffet “value investor”, but the common sense and wisdom that flows from Charlie and ‘The Oracle’ finds applicability across all assets classes, and indeed, all facets of life and human behavior.

This year, since schedule has allowed, I made my first trip to the meeting in person. This was a “bucket-list” event for me that I justified to myself by arguing that there can’t possibly be too many more opportunities to see these two legends (now 88 and 95 years old) in this particular forum. Of course, however, one could have said the same thing for the last 20+ years. 

The most memorable part of this event that can only be witnessed in person were all the people from around the globe, from all walks of life, from all levels of sophistication that make this pilgrimage, and have done so for many years. Everyone is cool, everyone is equal, everyone is family, everyone has easy ability pick up conversation with everyone else -- from the most successful captains of industry that attend, to the retiree that counts pennies.  Seldom is the concept of a “level playing field” experienced as well as when a billionaire has to stand in line to use the same porta potty as you in the Borsheims parking lot.

I have attended shareholder meetings from other companies that manage well into the billions of dollars of assets only to be greeted with a that look of surprise when “a shareholder actually showed up”. That is not the case here, and that is only the beginning of the differences that set Berkshire Hathaway apart from so many others.

A long weekend of events, parties, and cheesy promotional antics centered around the 8:30 am Saturday morning start time of the actual meeting. I woke up at 4:30 am, debated my options to get from my hotel to what will be a congested part of downtown Omaha, which I did by 6:15 am. I was greeted by a very long line of people waiting outside that may have already exceeded the 19,000 person capacity of CHI Arena that holds the event. Through friends I was able to get a seat in the upper deck for the meeting, then later an acute case of FOMO forced me to 4^th row right in front of the stage.  My “note to self” for next year is to only sit where I can be comfortable; the screens are big enough and the audio loud enough to not have to endure being uncomfortable for a lengthy period of time.

The “investment industry” often feels like it is as much about collecting fees from its clients as it is about actually improving their net worth.  As such it is quite rewarding to see these 19 thousand people, and all the other believers that were not present, that they all must “get it”. They won’t get ‘taken’ the way so many others have and will by this industry. And that was encouraging.

The stamina for two gentlemen aged 88 and 95 to engage in questions and answers for six hours outlasted most of the crowd. Warren, cordial and verbose, Charlie, brief and candid; both continue to retain their amazing wit. Their ability to address the most over-complicated question or subject matter, and respond with the most simple, yet complete and satisfying answers, is a talent that I quite admire and have never seen mastered so successfully elsewhere.

This year, and as I understand this was for the first time, we got to see interactions with members of the next generation that will likely lead Berkshire.  On appropriate occasion, Warren passed questions about Berkshire’s businesses from shareholders to managers Ajit Jain and Greg Abel to address the crowd. I was hoping they would do that. 

The formal parts of this weekend could easily be viewed online from my home.  But the people I shared the experiences with over the long weekend could not.  I am grateful to have shared a lot of fun and enlightening experiences with those that I spent time with.  I do not know if I will attend annual meetings in future years, but if I do, I expect they will continue to be satisfying, fun, and rewarding regardless as to who will be sitting on top of the stage.