After my return from Omaha, I wrote down some highlights in my latest blog post. In addition, like last year, there is a small raffle in which you are of course welcome to participate - the details and pictures of the Berkshire Hathaway AGM can be found here:
https://www.valueinvestments.ch/berkshire-hathaway-generalversammlung-2023
I'll post everything else for you to read right here at Getquin:
After fulfilling my dream as an investor and asset manager to be there live in 2022 myself, I was allowed to take a good friend in a wheelchair with me this year: He really wanted to be there in 2022, but had to wait another year because of an important operation. In 2023 it worked out - now we can also give some tips on what you should consider with a handicap ♿︎.
I was already at the Berkshire Hathaway AGM last year - if you want to seize one of the last opportunities to see Warren Buffett (92) and Charlie Munger (99) live, here are my detailed instructions on how to get the coveted admission tickets:
https://www.valueinvestments.ch/berkshire-hathaway-generalversammlung-2022-eindruecke-erlebnisse
But now to the Berkshire Hathaway Annual General Meeting Saturday, May 6, 2023:
Berkshire Hathaway movie
Before the actual question and answer session with Warren Buffett and Charlie Munger, there was, as always, an exclusive movie about Berkshire Hathaway. Funny thing was that this time a montage of questions about succession planning at Berkshire was shown:
Back in 1994, a question came up about how and if Warren Buffett and Charlie Munger would have handled succession. Others were shown from 1995, 1996, 2001, 2008, 2012, 2016 and 2018.
Who would have thought almost 30 years ago that the two, at the ages of 92 and 99, would still not have had enough. Quite the opposite: in the question and answer session that followed, they again patiently answered questions of all kinds for over five hours.
Best of Warren & Charlie: question-and-answer session
The whole question-and-answer session can be found below in the video clip from CNBC. For those who don't want to sit through 7 hours and 44 minutes, I've put together a few highlights - translated, of course, and without any claim to completeness:
Banking Crisis: The topic came up both before and after the lunch break.
When asked what would have happened if Silicon Valley Bank's deposits had not been secured, the following was the response Warren Buffett:
"It would have been a disaster - that's the reason they were covered. It's exactly the same with the debt ceiling."
The political gambits around the U.S. debt ceiling in particular have made markets nervous time and again during Donald Trump's tenure and are a hot topic again now with Joe Biden. However, the U.S. and the global economy simply cannot afford for the U.S. to go bankrupt - as Warren Buffett rightly puts it, that would be a disaster.
Later, the discussion also focused on how to deal with the cadre at banks.
In this regard Warren Buffett:
"The lesson is you can run a bank, screw up, and still get rich. That's not a good lesson."
In my opinion, this should certainly be understood as a reference to the downfall and rescue of Credit Suisse. But top managers of other banks may also feel addressed here.
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Emotions: How do you protect yourselves from emotional investment decisions?
Warren Buffett asks Charlie Munger:
"Have we ever made an emotional decision?"
Charlie Munger:
"No!"
Charlie Munger's answer was immediate, short and dry. Among other factors, this is exactly what sets them apart from other investors. As a wealth manager, I see this all the time - even people with a lot of money are partly at the mercy of their own emotions, such as fear and greed, even though they see themselves as absolutely rational. This often results in a form of herd behavior. I try to keep this in check with clearly measurable criteria. And yet one catches oneself again and again having to resist the temptation to disregard these criteria.
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Artificial Intelligence (AI):
Charlie Munger:
"I'm a little skeptical about the hype around AI. I think old-fashioned intelligence works quite well."
Warren Buffett:
"AI can change a lot of things in the world, just not the way people think and behave."
While Charlie Munger is critical of the whole thing - as usual - Warren Buffett expressed a more nuanced view. Still, I think they are right - people themselves are emotional creatures and our behavior doesn't change that fast in its basic features.
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Value Investing:
Charlie Munger:
"My advice for value investors is to get used to earning less. Because there are so many competing against each other. (...) There's a lot of money in the hands of smart people trying to outdo each other."
Warren Buffett:
"What gives you opportunities is other people doing stupid things."
Indeed, a pure value investing strategy has not delivered the same good results in recent years as it once did. Still, you can see from Berkshire Hathaway's performance that respectable returns can still be generated very consistently.
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Capitalism:
Charlie Munger:
"You can try to eliminate the pain, but you also eliminate the opportunities. (...) You know what they say about the Russian economy: 'They're pretending to pay us, and we're pretending to work.' "
If you want to give yourself the concentrated 7h and 44min - here is the link to the CNBC video: https://youtu.be/UKw_NjWtg5w
Available for Sale & Held-to-Maturity:
For those wondering why from the second half of the Q&A Warren Buffett is "Available for Sale" and Charlie Munger is "Held-to-Maturity", here is the resolution:
It was a joke on their part when another question about the renewed banking crisis came after the lunch break: Warren Buffett said they had expected such questions and had prepared a few words in classic "banking jargon..." When he turned over the sign "Available for Sale" and especially when he put the sign "Held-to-Maturity" in front of Charlie Munger (99), the laughter in the hall was great. The two were clearly having fun and don't take themselves quite as seriously as others might.
Berkshire Hathaway Annual General Meeting visit with handicap ♿︎ - Experiences, tips and tricks
My friend Flurin and I both wanted to go to Omaha for a long time - then first the pandemic put a spanner in the works and then Flurin had to wait another year for health reasons. In 2023 it finally worked out - to his and my great joy we could successfully pull off the Omaha adventure.
We had very good experiences - despite or even because of the handicap: The Americans are very friendly, understanding and considerate towards people with handicaps. Only the sidewalks are not at all ideal for a wheelchair, but hardly anyone needs them in Omaha anyway - after all, that's what oversized cars are for.
Here we have collected some things that might help you - handicap or not, we can definitely recommend a visit to Omaha:
Tips & Tricks with Handicap ♿︎
- Transportation: It pays to have a big car and in Omaha there are more big cars than small ones. The vehicle of our choice was a Chevrolet Suburban - it was easier to get in and out of and the wheelchair fit all the way in without having to fold it up.
- Lodging: We stayed at the Residence Inn by Marriott in Omaha Downtown/Old Market. The price is of course overpriced during the General Assembly, but the location is top! By car, you can get to the Convention Center and the Old Market in just a few minutes. We were even able to roll/walk to the 5k run.
- Credentials: To get your entrance tickets quickly, you need a little luck: We asked a security staff friendly if she could accompany us to the front. This worked perfectly - after a short consultation with her supervisor. Waiting in line for one or two hours with a wheelchair would have been simply unreasonable.
- Waiting in line early? You can save yourself - right next to the lobby there is a special entrance with a big sign, so you are inside in five minutes without waiting in line.
- Best seats: Because we were inside so quickly, we got good seats in front of the stage. These are ideal because you can get there without an elevator. But there are also special seats at the top of each grandstand in the corners.
- Parking spaces: There was a small problem here, because the special parking spaces were quickly full on the day of the General Assembly. I unloaded Flurin beforehand in front of the Convention Center and parked the car alone in the underground garage right next to the Convention Center. Because we would not have made it up the stairs with the wheelchair. So it's worth getting there 20 minutes earlier than we did - about 6:40 should be enough.
- Restrooms: It has almost everywhere extra toilets for people with handicap ♿︎. Only at the Old Market did we have a little trouble, in some restaurants the space was very challenging for a wheelchair.
Berkshire Hathaway AGM - what did I do differently in 2023?
This year I took some of my own Tipps aus dem letzten Jahr heeded:
More space for souvenirs: After space issues in 2022, I took a half-empty checked bag - it was neatly filled on the return trip.Running Shoes: For the Invest in Yourself 5k Run. Only one tip I didn't heed - instead of signing up for it back in March, I signed up just before and paid full price.The Drover Steakhouse: Heads up. It pays to make reservations. This year it was very crowded and difficult to get a seat without a reservation.The Bookworm and Borsheims: This year I only visited the booths at the Bazaar of Bargains, which is absolutely enough.
Invest in Yourself 5k Run
This year, I participated in the Invest in Yourself 5k Run myself. This is organized by Brooks® - also a subsidiary of Berkshire Hathaway. There are some good runners who complete the 5k in record time: The fastest female runner crossed the finish line in 19 minutes and 16 seconds. The fastest runner made it in 16 minutes and 29 seconds. I am absolutely not a talented runner and made it with 25 minutes and 59 seconds to the 340th place of 2'116 runners - in my age group I was on the 40th place of 202 runners.
Many runners take it easy - some even walk with baby carriages. After an hour, the course is opened to traffic again. Those who are still on the road then may finish the run in peace, but on the sidewalk.
You don't have to take anything with you except sports clothes. On site there are snacks, bananas, water, coffee and enough toilets - just everything you need.
You can register online at www.investinyourself5k.com.
My companion Flurin has cut a video of the whole spectacle, which you can find here on my blog:
https://www.valueinvestments.ch/berkshire-hathaway-generalversammlung-2023
$BRK.B
$BRK.A
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#valueinvesting
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