Questionerit's a phrase that warren had used i think in pred at some time in which he said that his whole life was focused on on berkshire and he and he said i love my work so much i describe i describe myself as tap dancing to work and and so when we were searching for a title for the book and some very inappropriate ones were coming up i suddenly thought of this one and i thought that's it and fortunately uh warren agreed and and the publisher agreed to warren loved it from the minute uh he said that i'm in for that it is it just as appropriate as it has always been he truly loves to do what he does
Carol Loomisi i speak to warren a lot first of all there are a couple of things that we do during the year that i participate in so i'm always involved over november and december and january and february with the annual letter that's a lot of work between the two of us
Carol Loomisbetween the two of us he he writes it i edit it i send it back he he writes it i edit it i send it back he he writes it i edit it i send it back to him to him to him he makes some suggestions some changes he makes some suggestions some changes he makes some suggestions some changes according to what i've suggested according to what i've suggested according to what i've suggested he sends it back to me i make some of he sends it back to me i make some of he sends it back to me i make some of the same we were plain bridge at k graham's we were plain bridge at k graham's we were plain bridge at k graham's apartment apartment apartment in in new york um over on the east side in in new york um over on the east side in in new york um over on the east side i think the other two players were i think the other two players were i think the other two players were probably my husband john loomis and a probably my husband john loomis and a probably my husband john loomis and a friend of ours george gillespie although friend of ours george gillespie although friend of ours george gillespie although the the constitution of the bridge game the the constitution of the bridge game the the constitution of the bridge game sometimes changed sometimes changed sometimes changed and they wanted a picture for fortune and they wanted a picture for fortune and they wanted a picture for fortune magazine where i worked magazine where i worked magazine where i worked and they said let's get one at the and they said let's get one at the and they said let's get one at the bridge table so i went bridge table so i went bridge table so i went went over and sat down and and pulled my went over and sat down and and pulled my went over and sat down and and pulled my cards back cards back cards back tried to look like exactly like we were tried to look like exactly like we were tried to look like exactly like we were playing and warren playing and warren playing and warren on the spur of the moment leaned over to on the spur of the moment leaned over to on the spur of the moment leaned over to look at my cards look at my cards look at my cards and i broke into laughter it was it was and i broke into laughter it was it was and i broke into laughter it was it was perfect perfect perfect it was a it was a great example of his it was a it was a great example of his it was a it was a great example of his sense of humor which is sense of humor which is
Othersense of humor which is is very very extraordinary when peopleis very very extraordinary when peopleis very very extraordinary when people say things to him his instinctive wishsay things to him his instinctive wishsay things to him his instinctive wish is to say something funny backis to say something funny backis to say something funny back and he he manages to do that umand he he manages to do that umand he he manages to do that um a greater number of times than almosta greater number of times than almosta greater number of times than almost any person i know
Otheri first came to hear about warreni first came to hear about warreni first came to hear about warren buffett when my husband who wasbuffett when my husband who wasbuffett when my husband who was a has always worked in wall street jobsa has always worked in wall street jobsa has always worked in wall street jobs and was working for a smalland was working for a smalland was working for a small institutional firm at that timeinstitutional firm at that timeinstitutional firm at that time was assigned the midwest to coverwas assigned the midwest to coverwas assigned the midwest to cover and he read about warren never had heardand he read about warren never had heardand he read about warren never had heard of himof himof him here was his fellow in omaha who seemedhere was his fellow in omaha who seemedhere was his fellow in omaha who seemed to be making a moveto be making a moveto be making a move in investments and warren and johnin investments and warren and johnin investments and warren and john wrote him a letter and said i'm i'mwrote him a letter and said i'm i'mwrote him a letter and said i'm i'm going to begoing to begoing to be in omaha on monday could i possibly comein omaha on monday could i possibly comein omaha on monday could i possibly come over to see youover to see youover to see you and to me the amazing fact is thatand to me the amazing fact is thatand to me the amazing fact is that warren saw johnwarren saw johnwarren saw john because he never got his ideas frombecause he never got his ideas frombecause he never got his ideas from security salesmensecurity salesmensecurity salesmen and yet here he was willing to have johnand yet here he was willing to have johnand yet here he was willing to have john us stop by and they went out to lunchus stop by and they went out to lunchus stop by and they went out to lunch had a good time
Otherhad a good time
Otheri'm sure that um john told him i worked for fortune
Otheri'm sure that warren was immediately interested because he has said that if he hadn't been an investor he might have been a journalist and that would have been a great loss for the investment world but a really great gain for the journalist world and
Otherso when that he and susie his late wife susie came to new york not very long after that they asked us to have lunch and
Otherfirst i john came back from this meeting with warren and said i think i may have met the smartest investor in the country and i'm sure i rolled my eyes like uh wives do when their husbands overstate things but
Otheri said oh yes okay and then when we went to lunch with susie and warren a couple of months later
Otheri said this guy is the smartest investor in the country if not the smartest guy i've never been sure that it's only
Otheri've never been sure that it's only limited to investments well about investments his father once said of him that boy can see around corners where investments are concerned and i do think that he can he does have a vision for investments that other people find it extremely hard to duplicate and he has a philosophy to go with it and he sticks to the philosophy and he's incredibly patient which most investors are not that is a big failing of investors and then he knows business so well he he has a better grasp of business than anybody i know of all businesses and if it's one that he doesn't know he's willing to take the time to learn it he's willing to be patient about that and he brings this incisive mind to the job his iq is off the charts all the buffett children were tested for their iq when they were kids i'm not sure that warren was even the
Questioneri'm not sure that warren was even the highest the girls i think were extremely high but his iq is way way up there and uh he has the ability to use it in ways that are beyond other people he's amazing warren's childhood was as you as indeed i did not know him at all at the time so i only know what i've heard he was not close to his mother he never would talk very much at least to me about the relationships between him and his mother he was extremely close to his father his father was his hero i think he was hero to his sisters also but warren grew up thinking of his father as the man he would most like to emulate and it was something has never left him to this day that he says that his father influenced him immeasurably and installed in him a code of ethics that he's never ever stopped following i did meet his mother at one time as a matter of fact i made a
Charlie Roseat one time as a matter of fact i made a special effort to um to interview her i thought at one time i might write a book about warren as i've described it it was all hat and no cattle and we we never ended up doing that primarily because he didn't want to put the time in that it would have taken into just knowing how many hours he would have to be thinking about the book even though i was going to write it and but anyway for that i interviewed his mother probably it was probably the second time i had met her interviewed bertie his younger sister and so i i i did i did talk to his mother i came away with the feeling that she didn't influence him very much i think there was um a gap between them and he was he and his mother sort of got along well they didn't get along but uh but they sort of lived parallel lives and he was mainly
Othermainly influenced by his father very much so i think that one thing they would be most surprised to know about warren if they didn't know him and and hadn't read is that he loves prize fights boxing um he watches every friday night um he uh has even had floyd mayweather the the boxer uh on a buffett movie that just always struck me as one of those uh idiosyncratic things that you just quite can't quite imagine for warren buffett um i don't otherwise his his personality is start sort of out there what you see is what you get when he says that business is a game that he plays i think he means that he's not in it for the money but that it's the most uh ex astounding game that exists uh for anybody who has his talents and his interests and he enjoys playing it better than uh anybody else has and uh it's it's extraordinary what he's accomplished berkshire is an amazing company his
Questionerberkshire is an amazing company his fourth largestfourth largestfourth largest company in the fortune 500 he is thecompany in the fortune 500 he is thecompany in the fortune 500 he is the only manonly manonly man only person i should say in the in theonly person i should say in the in theonly person i should say in the in the history of the fortune 500history of the fortune 500history of the fortune 500 uh which is now more than 50 years olduh which is now more than 50 years olduh which is now more than 50 years old andandand um who has ever from scratchum who has ever from scratchum who has ever from scratch from a tiny little company built afrom a tiny little company built afrom a tiny little company built a company that is in the top 10 of thecompany that is in the top 10 of thecompany that is in the top 10 of the fortune 500.fortune 500.fortune 500. berkshire hathaway is is an amazingberkshire hathaway is is an amazingberkshire hathaway is is an amazing company andcompany andcompany and sometimes i think that people don'tsometimes i think that people don'tsometimes i think that people don't realize just exactly how amazing it iswell warren buffett is probably the mostwell warren buffett is probably the mostwell warren buffett is probably the most rational person i've ever metrational person i've ever metrational person i've ever met charlie munger would be a close uh rivalcharlie munger would be a close uh rivalcharlie munger would be a close uh rival maybe maybe one would have the edgemaybe maybe one would have the edgemaybe maybe one would have the edge and um and most peopleand um and most peopleand um and most people are not as rational as warren andare not as rational as warren andare not as rational as warren and charlie arecharlie arecharlie are and so i think that when he was dealingand so i think that when he was dealingand so i think that when he was dealing with peoplewith peoplewith people he was expecting rationality and theyhe was expecting rationality and theyhe was expecting rationality and they they were not behaving that waythey were not behaving that waythey were not behaving that way so i think that was uh what he and theyso i think that was uh what he and theyso i think that was uh what he and they they would say thingsthey would say thingsthey would say things also that they did not that were italso that they did not that were italso that they did not that were it would say things that were
Otherwould say things that werewould say things that were um not exactly honestum not exactly honestum not exactly honest knowing that they weren't ex going toknowing that they weren't ex going toknowing that they weren't ex going to quite live up to themquite live up to themquite live up to them whereas he always knew that what he waswhereas he always knew that what he waswhereas he always knew that what he was going to do he was going to live up togoing to do he was going to live up togoing to do he was going to live up to and i think those were things that heand i think those were things that heand i think those were things that he found it hard tofound it hard tofound it hard to accommodate in the way that other peopleaccommodate in the way that other peopleaccommodate in the way that other people reactedwarren's values are to be verywarren's values are to be verywarren's values are to be very honest tohonest tohonest to do what you're going to say to saydo what you're going to say to saydo what you're going to say to say when berkshire hathaway makes a bid forwhen berkshire hathaway makes a bid forwhen berkshire hathaway makes a bid for a company there are people whoa company there are people whoa company there are people who are out there in the world who thinkare out there in the world who thinkare out there in the world who think that somehow this bid isn't going to gothat somehow this bid isn't going to gothat somehow this bid isn't going to go throughthroughthrough and the fact is that bid is always goingand the fact is that bid is always goingand the fact is that bid is always going to be uhto be uhto be uh accomplished always going to be followedaccomplished always going to be followedaccomplished always going to be followed through onthrough onthrough on and uh so that's a big part of hisand uh so that's a big part of hisand uh so that's a big part of his valuesvaluesvalues his his values are to uhhis his values are to uhhis his values are to uh never never equivocatenever never equivocatenever never equivocate although he can be he has a great dealalthough he can be he has a great dealalthough he can be he has a great deal of judgment about how to handle peopleof judgment about how to handle peopleof judgment about how to handle people and so he may be very tactful in what heand so he may be very tactful in what heand so he may be very tactful in what he says
Othersays but basically he wants to lead a life that he and his father if his father would still it was still living would say was a good one and his values extend through all of his life he um he does not have a person one personality that he brings to business and one personality that he takes home there that is absolutely not not the way he is he's he's got a set of values that he sticks to
Othersusie was one of the warmest and charming people that i've ever met she was extremely empathetic she had a great interest in other people she could have been a journalist in one way because warren used to talk about that if if susie sat by somebody at the uh end of the at a dinner that a half an hour later they were had given her taken her into their complete confidence and they would know that she would go home uh thinking about it and very smart
Otheruh thinking about it and very smart very interested in uh invery interested in uh invery interested in uh in in doing the right things uh and usingin doing the right things uh and usingin doing the right things uh and using the money that the buffetthe money that the buffetthe money that the buffet buffets came to have in ways that wouldbuffets came to have in ways that wouldbuffets came to have in ways that would bebebe beneficial for people who weren't sobeneficial for people who weren't sobeneficial for people who weren't so luckyluckylucky she was an extraordinary person ishe was an extraordinary person ishe was an extraordinary person i absolutely would say that susieabsolutely would say that susieabsolutely would say that susie led warren toward towardled warren toward towardled warren toward toward interacting socially and changing hisinteracting socially and changing hisinteracting socially and changing his political views he grew up as a youngpolitical views he grew up as a youngpolitical views he grew up as a young republicanrepublicanrepublican his father was a republican congressmanhis father was a republican congressmanhis father was a republican congressman warren had nothing in his early lifewarren had nothing in his early lifewarren had nothing in his early life that would suggest he could have beenthat would suggest he could have beenthat would suggest he could have been beenbeenbeen a strong democrat but susie saw thingsa strong democrat but susie saw thingsa strong democrat but susie saw things in different ways and led himin different ways and led himin different ways and led him and led him toward changing hisand led him toward changing hisand led him toward changing his political viewspolitical viewspolitical views and he certainly has uh has stuck withand he certainly has uh has stuck withand he certainly has uh has stuck with them nowthem nowthem now for uh an enormously long timefor uh an enormously long timefor uh an enormously long time it's possible that he would have changedit's possible that he would have changedit's possible that he would have changed without susie but iwithout susie but iwithout susie but i i sort of doubt it she was the catalysti didn't know warren or when all of thisi didn't know warren or when all of thisi didn't know warren or when all of this was occurring butwas occurring butwas occurring but uh the tales i've heard i think he was
Questioneruh the tales i've heard i think he wasuh the tales i've heard i think he was he was a strange kid in some ways he washe was a strange kid in some ways he washe was a strange kid in some ways he was beyond his years when he was young hebeyond his years when he was young hebeyond his years when he was young he could talk to adultscould talk to adultscould talk to adults and they loved him as a matter of factand they loved him as a matter of factand they loved him as a matter of fact here was some smart kidhere was some smart kidhere was some smart kid he was funny uh they really loved uhhe was funny uh they really loved uhhe was funny uh they really loved uh how he was but i i think he was umhow he was but i i think he was umhow he was but i i think he was um a little bizarre in some ways so when hea little bizarre in some ways so when hea little bizarre in some ways so when he went to interviewwent to interviewwent to interview uh for harvard business schooluh for harvard business schooluh for harvard business school i think he was 15 wait wait and hei think he was 15 wait wait and hei think he was 15 wait wait and he lookedlookedlooked he has said he looked like he was 12. umhe has said he looked like he was 12. umhe has said he looked like he was 12. um and and he didn't get accepted which ofand and he didn't get accepted which ofand and he didn't get accepted which of coursecoursecourse the harvard business school has neverthe harvard business school has neverthe harvard business school has never been able to live downbeen able to live downbeen able to live down and i think he takes a kind of a joy andand i think he takes a kind of a joy andand i think he takes a kind of a joy and that he couldn't get into harvardthat he couldn't get into harvardthat he couldn't get into harvard business schoolbusiness schoolbusiness school um but i think she made him intoum but i think she made him intoum but i think she made him into a much more normal kind of persona much more normal kind of persona much more normal kind of person she changed his political sensibilitiesshe changed his political sensibilitiesshe changed his political sensibilities uh she was always there for himuh she was always there for himuh she was always there for him when whenever he needed to turn to herwhen whenever he needed to turn to herwhen whenever he needed to turn to her uh and he was he was extremely dependent
Questioneruh and he was he was extremely dependentuh and he was he was extremely dependent on susie and what she was likei think that part of warren's successi think that part of warren's successi think that part of warren's success comes from the fact thatcomes from the fact thatcomes from the fact that he does not have the same emotionalhe does not have the same emotionalhe does not have the same emotional currents affecting his investmentscurrents affecting his investmentscurrents affecting his investments decisionsdecisionsdecisions as other people do he tries toas other people do he tries toas other people do he tries to extract emotion from his investmentextract emotion from his investmentextract emotion from his investment decisionsdecisionsdecisions this is part of his rationality therethis is part of his rationality therethis is part of his rationality there certainlycertainlycertainly that's uh that's a key part of being athat's uh that's a key part of being athat's uh that's a key part of being a rationalrationalrational and um but i iand um but i iand um but i i but i think that sometimes he maybut i think that sometimes he maybut i think that sometimes he may overstate that toooverstate that toooverstate that too he hates to fire people uh emotions somehe hates to fire people uh emotions somehe hates to fire people uh emotions some certainly come into that he's very umcertainly come into that he's very umcertainly come into that he's very um caring about his employees so that i icaring about his employees so that i icaring about his employees so that i i don't think that hedon't think that hedon't think that he just uh erases emotion from what he doesjust uh erases emotion from what he doesjust uh erases emotion from what he does but in in his investment decisionsbut in in his investment decisionsbut in in his investment decisions it is um essential toit is um essential toit is um essential to the decisions he's making if he wishedthe decisions he's making if he wishedthe decisions he's making if he wished not to benot to benot to be emotional and which i think he he does iemotional and which i think he he does iemotional and which i think he he does i don't think he succeeds completelydon't think he succeeds completelydon't think he succeeds completely because he does have these things thatbecause he does have these things thatbecause he does have these things that infringe uh on his decisions
Otherinfringe uh on his decisions
Otherwarren's opinions of uh and the wall street investment bankers uh would not endear him to their mothers he feels that they're for the most part not out for their clients uh they're out for their own um uh business interests uh i don't think he thinks that his their uh honesty is uh always great so he uh he is not a general admirer of wall street bankers
Otheri think that certain investment bankers knew how smart warren was i remember bruce rosserstein a very famous wall streeter saying that you have to be very careful when negotiating with warren because he's so smart that he'll pick you if you're not uh not careful
Otherand um so
Otherand also he was warren was always more inflexible than an investment banker would uh want him to be he he'd name a price on a business and uh he thought that was the price that the business was worth and he
Questionerthat the business was worth and he wouldn't budge from that and wall street bankers really like people who negotiate uh warren is not a negotiator i'm just thinking he and donald trump would not be exactly on the same wavelength about negotiating when warren made his investment in solomon um i was one of the people along with many many others who were quite amazed because he because he had taken a very critical tone in talking about investment bankers and about their greed and here he was investing in one solomon brothers that was known to be a member of the club it just didn't quite uh add up but there was a man then running uh solomon john's good friend that warren had had business dealings with and uh had found john always to be honest and uh forthcoming and uh uh to the to the client and that was very important for warren he is uh if somebody has treated him
Otherhe is uh if somebody has treated him uh uh honestly and uhuh uh honestly and uhuh uh honestly and uh expertly he is likely toexpertly he is likely toexpertly he is likely to come back and respondwhen solomon's problemswhen solomon's problemswhen solomon's problems erupted my memory is that warren firsterupted my memory is that warren firsterupted my memory is that warren first learned about itlearned about itlearned about it while he was in las vegas except hewhile he was in las vegas except hewhile he was in las vegas except he really didn't quite understandreally didn't quite understandreally didn't quite understand what the problems were at the time andwhat the problems were at the time andwhat the problems were at the time and he had gone tohe had gone tohe had gone to las vegas with a family named blumkinlas vegas with a family named blumkinlas vegas with a family named blumkin who ran thewho ran thewho ran the nebraska furniture mart and it was anebraska furniture mart and it was anebraska furniture mart and it was a once a year expedition that theyonce a year expedition that theyonce a year expedition that they all looked forward to and he got a callall looked forward to and he got a callall looked forward to and he got a call and went out intoand went out intoand went out into a pay telephone he got a call abouta pay telephone he got a call abouta pay telephone he got a call about solomon went to a pay telephonesolomon went to a pay telephonesolomon went to a pay telephone to understand that there was somethingto understand that there was somethingto understand that there was something very important that john good friendvery important that john good friendvery important that john good friend wanted to talk to him aboutwanted to talk to him aboutwanted to talk to him about and he had no idea what it was and didand he had no idea what it was and didand he had no idea what it was and did not learnnot learnnot learn that evening really what it was thethat evening really what it was thethat evening really what it was the problem at solomon that warrenproblem at solomon that warrenproblem at solomon that warren eventuallyeventuallyeventually learned about was that a anlearned about was that a anlearned about was that a an important employee of solomon's hadimportant employee of solomon's hadimportant employee of solomon's had basicallybasicallybasically lied to the to the federal reserve
Otherlied to the to the federal reserve about solomon's accumulation of a certain issue of government bonds and the line to the fed was just not something that was done it was an egregious uh crime and once it was discovered by management at solomon it had not it had been covered up they never thought of it that way but it it was covered up and the fed did not learn what had happened there was a letter from the federal reserve to to the management of solomon saying that the crime had been a grievous crime and that uh it was likely that the fed would have to take uh action about this and the fed assumed that the letter had gone to the board of directors warren was not a part of management at this time the company was run by john goodfriend and um but the the board never saw this letter so there were conversations that warren engaged in after that where
Otherwarren engaged in after that where mysterious references were made to a letter that he had no idea what they were talking about it was like two people were talking right by each other and it was only much later that he learned about the letter when when solomon's problems erupted warren was in omaha doing his usual thing of running berkshire hathaway making one this big decision a year as he has uh sometimes said um and he was on the phone with um uh with john good friend and tom strauss uh the number two guy at uh at solomon and it claimed became clear to warren during that conversation as i remember it on a friday morning um that he that somebody needed to step in to run solomon there was a need and he was the logical guy to do it to this day i think that warren thinks he suggested that he come to come to new york to start running solomon i think john's good friend who
Othersolomon i think john's good friend who who just recently died might say that who just recently died might say that who just recently died might say that it was his idea for warren to do this it was his idea for warren to do this it was his idea for warren to do this but at any rate the upshot was that but at any rate the upshot was that but at any rate the upshot was that warren warren warren if this happened on a friday by if this happened on a friday by if this happened on a friday by saturday he was in new york and by saturday he was in new york and by saturday he was in new york and by sunday he was appearing sunday he was appearing sunday he was appearing before the press as the new acting ceo before the press as the new acting ceo before the press as the new acting ceo of solomon there was an important moment there was an important moment there was an important moment in this whole solomon affair in which uh in this whole solomon affair in which uh in this whole solomon affair in which uh warren called nick brady who was the warren called nick brady who was the warren called nick brady who was the secretary of the treasury secretary of the treasury secretary of the treasury nick brady was at the horse races in nick brady was at the horse races in nick brady was at the horse races in saratoga and um i guess he was pulled saratoga and um i guess he was pulled saratoga and um i guess he was pulled out of the stands uh out of the stands uh out of the stands uh to take this call and warren told him to take this call and warren told him to take this call and warren told him that if that if that if if the fed went through with its threat if the fed went through with its threat if the fed went through with its threat that it was going to that it was going to that it was going to uh um solomon's status uh um solomon's status uh um solomon's status and not allowed it to uh just to and not allowed it to uh just to and not allowed it to uh just to not allow it to uh sell and trade in in not allow it to uh sell and trade in in not allow it to uh sell and trade in in government bonds government bonds government bonds that it would destroy solomon and warren that it would destroy solomon and warren that it would destroy solomon and warren thought thought thought and he still thinks to this day he does and he still thinks to this day he does and he still thinks to this day he does think
Otherthink that if that it if solomon went down that if that it if solomon went down that if that it if solomon went down it would take other important parts of it would take other important parts of it would take other important parts of the of wall street with it the of wall street with it the of wall street with it and he said all of this uh to nick brady and he said all of this uh to nick brady and he said all of this uh to nick brady and and nick kept saying now warren it's and and nick kept saying now warren it's and and nick kept saying now warren it's just you know just you know just you know you're overstating this problem it's you're overstating this problem it's you're overstating this problem it's gonna be all right they were old friends gonna be all right they were old friends gonna be all right they were old friends and warren kept saying to him no you and warren kept saying to him no you and warren kept saying to him no you don't understand don't understand don't understand the matter is as serious as i'm saying the matter is as serious as i'm saying the matter is as serious as i'm saying it is to you it is to you it is to you and you need to take some action and and you need to take some action and and you need to take some action and when when when nick brady got off of the phone he still nick brady got off of the phone he still nick brady got off of the phone he still hadn't been convinced hadn't been convinced hadn't been convinced but the events then became begin to but the events then became begin to but the events then became begin to change change change and and in time he did take some action and and in time he did take some action and and in time he did take some action the threat from treasury that made the threat from treasury that made the threat from treasury that made warren think warren think warren think uh that it was so dire that he could uh that it was so dire that he could uh that it was so dire that he could solomon could not take it was that solomon could not take it was that solomon could not take it was that solomon would no longer be able to be a solomon would no longer be able to be a solomon would no longer be able to be a a government a government a government trader the fed had that ability trader the fed had that ability trader the fed had that ability to say who could trade government bonds to say who could trade government bonds to say who could trade government bonds and the fed
Otherand the fedand the fed was in fact saying you are you're awas in fact saying you are you're awas in fact saying you are you're a terribly you're you're an evil force andterribly you're you're an evil force andterribly you're you're an evil force and we don't want you tradingwe don't want you tradingwe don't want you trading our bondswarren said that it was the mostwarren said that it was the mostwarren said that it was the most important day in his lifei've always i've always thought abouti've always i've always thought abouti've always i've always thought about that just because i think the mostthat just because i think the mostthat just because i think the most important day of his life was when heimportant day of his life was when heimportant day of his life was when he married susie and i always wondered whatmarried susie and i always wondered whatmarried susie and i always wondered what susie thought about thatsusie thought about thatsusie thought about that
Other[Laughter]
Otherwarren had always said that umwarren had always said that umwarren had always said that um you can go through life building youryou can go through life building youryou can go through life building your reputationreputationreputation and in five minutes it can be destroyedand in five minutes it can be destroyedand in five minutes it can be destroyed and he believed that at that particularand he believed that at that particularand he believed that at that particular pointpointpoint his reputation was on the line hehis reputation was on the line hehis reputation was on the line he had not he had not come in to take overhad not he had not come in to take overhad not he had not come in to take over solomon brothers to save it fromsolomon brothers to save it fromsolomon brothers to save it from bankruptcybankruptcybankruptcy he had come in to keep it on its feethe had come in to keep it on its feethe had come in to keep it on its feet get it uh uhget it uh uhget it uh uh as a uh as a traitoras a uh as a traitoras a uh as a traitor of government bonds and the thought thatof government bonds and the thought thatof government bonds and the thought that it was going to end up withit was going to end up withit was going to end up with as bankruptcy was uh just unimaginableas bankruptcy was uh just unimaginableas bankruptcy was uh just unimaginable to him and i don't and he's he said he
Warrento him and i don't and he's he said he told nick brady told nick brady that he was not going to stay around to that he was not going to stay around to run it if it became bankrupt and nick run it if it became bankrupt and nick brady did not believe him brady did not believe him but uh i believe it would have happened but uh i believe it would have happened he would have said i was not he would have said i was not i did not come to rescue solomon i did not come to rescue solomon with the thoughts that it was going to with the thoughts that it was going to become bankrupt become bankrupt and i will i'm not going to stay around and i will i'm not going to stay around you can find somebody else for that
Warrenwell in the end the fed well in the end the fed uh did not um uh did not um in in the end the fed did not come forth in in the end the fed did not come forth with the with the uh most terrible thing it could do which uh most terrible thing it could do which was to remove solomon as a government was to remove solomon as a government trader it um it trader it um it relented to some point at some point relented to some point at some point to some it relented to some degree and to some it relented to some degree and and solomon proceeded to and solomon proceeded to although its stock was wrecked at that although its stock was wrecked at that point it had to come back from that point it had to come back from that proceeded to behave pretty much as it proceeded to behave pretty much as it had been had been but the whole incident had been so but the whole incident had been so uh extreme and so uh extreme and so carried out in the public that the
Othercarried out in the public that the government uh called hearings and warren had to go down and testify certainly for the first time that he'd ever had to do anything like that he'd hardly been involved with anything that hadn't gone well up to that time and here he was the man on the spot being called to testify at government hearings and to this day he uses that episode the televised episode as he began it goes in every berkshire movie because he wants the people who work for him the managers of his business to hear that every year extraneous i always argue that it's time to take it out i don't get any advice he has said that if um uh if it's a mistake if if an employee solomon employee makes a mistake he will be um he will understand um if he if he is if he does something that could land up on the front page of the new york times
Otherthe new york times
Otherhe will be unforgiving he will be
Otherhe will be unforgiving he will be
Otherhe will be unforgiving he will be ruthless
Otherruthless
Otherruthless and um uh it was
Otherand um uh it was
Otherand um uh it was it was a big word it was i argued at the
Otherit was a big word it was i argued at the
Otherit was a big word it was i argued at the time it was too big a word
Othertime it was too big a word
Othertime it was too big a word
Other[Laughter]
Other[Laughter]
Other[Laughter] i was having conversations with warren
Otheri was having conversations with warren
Otheri was having conversations with warren during this period first of all
Otherduring this period first of all
Otherduring this period first of all he was he was in new york
Otherhe was he was in new york
Otherhe was he was in new york
Other[Music]
Other[Music]
Other[Music] and i saw him maybe once or twice in new
Otherand i saw him maybe once or twice in new
Otherand i saw him maybe once or twice in new york
Otheryork
Otheryork
Otherthere was a shareholder meeting while
Otherthere was a shareholder meeting while
Otherthere was a shareholder meeting while all of this was going on i went to that
Otherall of this was going on i went to that
Otherall of this was going on i went to that and during his famous uh
Otherand during his famous uh
Otherand during his famous uh press conference on sunday right after
Otherpress conference on sunday right after
Otherpress conference on sunday right after he had become
Otherhe had become
Otherhe had become
Otheracting ceo of solomon i was at that
Otheracting ceo of solomon i was at that
Otheracting ceo of solomon i was at that press conference
Otherpress conference
Otherpress conference
Otherso i was very tuned in to what was going
Otherso i was very tuned in to what was going
Otherso i was very tuned in to what was going on
Otheri was nervous for him on the other hand
Otheri was nervous for him on the other hand
Otheri was nervous for him on the other hand i think he is so capable of handling
Otheri think he is so capable of handling
Otheri think he is so capable of handling almost
Otheralmost
Otheralmost
Otherany situation that i i thought
Otherany situation that i i thought
Otherany situation that i i thought i thought he would i thought he would do
Otheri thought he would i thought he would do
Otheri thought he would i thought he would do it this one was putting
Otherit this one was putting
Otherit this one was putting strains on him that he had never had
Otherstrains on him that he had never had
Otherstrains on him that he had never had before
Otherbefore
Otherbefore
Otherbut when a question came up at the
Otherbut when a question came up at the
Otherbut when a question came up at the press conference about how he was going
Otherpress conference about how he was going to handle the fact that he had a big company in omaha and he was going to be in new york handling solomon he said well my mother has sewn my name on my underwear so it's going to be okay
Otherwarren did decided from the or said from the very beginning that if he took over at solomon first of all he hoped it would be temporary um and he would be taking no money from solomon he was a dollar a year man and i guess in the sense that that word is often used um he he never he never took any money for it and people said well of course he's doing this because of his large stake in solomon brothers and i never believed that was true i i believed of course he wouldn't have been in the position if he hadn't had that large stake because there wouldn't have been any a dialogue between him and and john's good friend but i i never
Charlieand john's good friend but i i never believed that ibelieved that ibelieved that i it was it was a potential blot on hisit was it was a potential blot on hisit was it was a potential blot on his lifelifelife and he did not want this to happen heand he did not want this to happen heand he did not want this to happen he wanted to save the firmwanted to save the firmwanted to save the firm and i i think the money that berkshireand i i think the money that berkshireand i i think the money that berkshire hadhadhad in it was a very much of a secondaryin it was a very much of a secondaryin it was a very much of a secondary matter
Questionerwell when warren took the job at solomonwell when warren took the job at solomonwell when warren took the job at solomon umumum he had once said that he washe had once said that he washe had once said that he was if he made one good business decision atif he made one good business decision atif he made one good business decision at berkshire a year he wasberkshire a year he wasberkshire a year he was doing his job solomon required him todoing his job solomon required him todoing his job solomon required him to make one decisionmake one decisionmake one decision after another every day a hundredafter another every day a hundredafter another every day a hundred maybe not 100 a day but certainlymaybe not 100 a day but certainlymaybe not 100 a day but certainly 10 big ones a day and it was a world10 big ones a day and it was a world10 big ones a day and it was a world that he wasn'tthat he wasn'tthat he wasn't totally familiar with umtotally familiar with umtotally familiar with um but he he did it becausebut he he did it becausebut he he did it because he he knew that somebody had to do ithe he knew that somebody had to do ithe he knew that somebody had to do it and as he saidand as he saidand as he said i was the right person um in this worldi was the right person um in this worldi was the right person um in this world where he had to make all these decisionswhere he had to make all these decisionswhere he had to make all these decisions we had to deal with people who werewe had to deal with people who werewe had to deal with people who were very very greedy where he could not evenvery very greedy where he could not evenvery very greedy where he could not even make any headway against amake any headway against amake any headway against a compensation system that was pretty
Questionercompensation system that was pretty egregious and is still today being um uh fought over um he knew that that he he was the right place omaha all of his life had been a the place he wanted to be and he knew that the work that he was doing at uh at berkshire which he never considered work it was part of his tap dancing to to work routine he knew that how lucky he'd been that he was not in this uh in this environment and that he was going to return to the environment that was perfect for him we'll never know what would have happened if solomon had gone down but warren believed and still believes to this day that it was an integral part of a wall street where promises are taken for granted and people people trade every day on the uh theory that they will get paid he felt that the um the infrastructure there was not set up for a severe shock like solomon going down
Othera severe shock like solomon going down
Otherand on that sunday when all of this was being debated is what would happen
Otherthe key point was that the japanese market was going to open that night and if if it was if the solomon uh situation was still as severe as the fed wanted it to be
Otherwarren believed that trading in japan would be really affected and then it would just roll around the world
Otherand he believed that there was a uh too big to fail scenario the term was not used then like it later came to be in 2008
Otherbut he believed that solomon was too big to fail and that it would fail if the fed stuck to its dictum that it was to be removed from trading
Otherunfortunately my total exposure to ben graham was hearing a speech of his at one day
Otherbut he he believed that he basically coined the term value investing
Otherhe believed in a careful scrutiny of a company's financial statements decisions based on
Questionerdecisions based on the probability that this was a success a company that could survive under any circumstances and the belief that if you bought value it would eventually prove out and one of his dictums that warren has said is the two rules of investing according to warren and i think he got this from ben grammer the first rule is um never lose money and the second rule is never forget the first rule when warren was first into investments and he learned this from ben graham he was in his investments often were to uh to buy a company that you could figure was a discarded cigar bud but it had one more smoke in it and he wanted to buy at the right time to uh be able to pull out the one smoke to be able to benefit from the one smoke and uh so the uh the cigar the discarded cigar but theory was one that he used at the beginning of his investment life warren if he bought a
Otherinvestment life warren if he bought a discarded cigar but uh company would certainly make himself known to the management of that company would would state his opinions as to what might be good for it um and would um hang around looking around wait uh looking for the last puff from the cigar cigar but the cigar but theory only was important if you were dealing with small companies you just couldn't expand that into and multiply that into large acquisitions and it was warren would have continued to be a small operator if he had if he had stuck to the cigar but theory and he he is an opportunist um he's always looking for the right opportunities he's willing to have anybody bring a strange strange thought to him as to what he might do and to uh to move on it and uh it it just wasn't going to um to work to stick to discarded cigar butts
Questionerif berkshire was to be built into any kind of important company what made the turn was that warren got to know charlie munger um a california lawyer who had also grown up in omaha but the two young men had not known each other because charlie was eight years older than warren and they just didn't happen to but they had but they both worked for um warren's grandfather's grocery store but at separate times so they didn't know each other and charlie became uh warren's uh sort of alter ego and became a man that uh warren depended on heavily uh just to discuss things with uh charlie's opinion was important and charlie felt and managed to convince warren and this was a real turning point in warren's business life that buying important companies buying good companies at fair prices was the way to proceed and leave the cigar
Questionercigar butts in the in the gutter if you pardon the expression charlie's uh influence on warren and pushing him in the direction of good businesses at fair prices was a huge turning point for warren and berkshire there's no telling what berkshire would be today if uh if that if that turn in events uh hadn't occurred uh we'd uh we'd all be poorer that's for sure and um so um warren has said that after he left the discarded cigar but era he was still drawn to them occasionally but but charlie was keeping him um and and warren was learning increasingly that buying good companies at fair prices was the way to go warren's initial initial plan when he made the investment to buy berkshire hathaway was to end up selling his stock back to the company at a at a profit and um and it it and this could have happened the company was at that time selling off a mill here and there and getting a
Questionera mill here and there and getting a little cash paying a big dividend and warren was expecting to end up benefiting from this then the ceo of berkshire hathaway uh and engaged in a little bit of chicanery promising them one price uh for a tender offer that they were making uh that was their way of of buying in stock and the the ceo of berkshire promised him one price and then went back on it and that was just something that warren couldn't live with and so he changed his strategy seavery stanton's change made warren very very angry i imagine he was just about livid with anger warren took great offense at what seabury's stanton did warren did not like two-timing of any kind he probably did not in this case probably did not put quite enough study into what he was actually buying but he made a an effort he changed his strategy and became to think that he would take over
Questionerbecame to think that he would take over control of berkshire hathaway because the ceo seaberry stanton had cheated him and are gone back on his promise and so he ended up buying this uh textile company which was not uh in great shape and which warren has said was the biggest mistake he ever made was buying this uh textile company or getting control of it not buying it as as warren got into berkshire hathaway i think he he realized its frailties um he he worked hard to to make the company do the right uh go down the right road but to the extent that it was pulling off throwing off cash he wasn't going to put it back into textiles and um in the first of um of berkshire's uh ability to take cash and use it in a uh in a an important and constructive way in other in other businesses uh he took cash from um from berkshire hathaway and moved it
Questionerum from berkshire hathaway and moved it into insuranceinto insuranceinto insurance and insurance turned out to be uh justand insurance turned out to be uh justand insurance turned out to be uh just ideal for warren it itself accumulatedideal for warren it itself accumulatedideal for warren it itself accumulated cash or threw off cashcash or threw off cashcash or threw off cash and and so that was the beginning ofand and so that was the beginning ofand and so that was the beginning of warren'swarren'swarren's ability to to build a large company fromability to to build a large company fromability to to build a large company from thisthisthis this company that he really claims was athis company that he really claims was athis company that he really claims was a mistake to buy in the first placemistake to buy in the first placemistake to buy in the first place and he stuck with the company he wantedand he stuck with the company he wantedand he stuck with the company he wanted it to be toit to be toit to be to succeed he really did he didn't wantsucceed he really did he didn't wantsucceed he really did he didn't want thosethosethose um those those peopleum those those peopleum those those people those those uh employees who were goingthose those uh employees who were goingthose those uh employees who were going to be thrown out of work he did not wantto be thrown out of work he did not wantto be thrown out of work he did not want that to happen so he stuck with itthat to happen so he stuck with itthat to happen so he stuck with it longer than he probably should have butlonger than he probably should have butlonger than he probably should have but finallyfinallyfinally he had to at concede that ithe had to at concede that ithe had to at concede that it berkshire the mills must be shut downberkshire the mills must be shut downberkshire the mills must be shut down the millthe millthe mill must be shut down and the textilemust be shut down and the textilemust be shut down and the textile businessbusinessbusiness disappearedwhen warren started investing umwhen warren started investing umwhen warren started investing um he he sometimes and i would say prettyhe he sometimes and i would say prettyhe he sometimes and i would say pretty oftenoftenoften had the intention of of liquidating thehad the intention of of liquidating thehad the intention of of liquidating the company he felt that the cost
Othercompany he felt that the cost of gaining control of the company was not as much as the assets of the company and that there was a profit to be made there and and his intention was to to move forward with uh with liquidating companies this wouldn't always have been the case but but but often but i think his first experiences in that business so to speak uh convinced him that it was not exactly where he wanted to be i mean there was a small company called dempster in in nebraska it was a small town whose whose population depended heavily on this company existing and closing it down um liquidating it was a lot of pain for and he was not a man who enjoyed causing pain and susie was probably at home saying oh i'm so sorry about all those people there i know it was that that his father's death was a huge uh sadness for warren he'd been so close to his father
Otherso close to his father so close to his father uh they had they worked together um he uh they had they worked together um he uh they had they worked together um he did did did he'd been um as a young boy he had he'd been um as a young boy he had he'd been um as a young boy he had worked sometimes at his worked sometimes at his worked sometimes at his uh father's brokerage office um uh father's brokerage office um uh father's brokerage office um and uh he admired his father and uh he admired his father and uh he admired his father and his standards so greatly that to and his standards so greatly that to and his standards so greatly that to have this have this have this um this person leave his life was um this person leave his life was um this person leave his life was amazing was was was so hard for him amazing was was was so hard for him amazing was was was so hard for him um he actually i as has not um he actually i as has not um he actually i as has not been happy to talk about it because uh been happy to talk about it because uh been happy to talk about it because uh it was uh it was a huge it was uh it was a huge it was uh it was a huge uh a huge calamity for him uh a huge calamity for him uh a huge calamity for him to to deal with but warren has the to to deal with but warren has the to to deal with but warren has the ability ability ability to pick himself up from things and move to pick himself up from things and move to pick himself up from things and move forward forward forward uh he's amazing that way warren definitely has a uh a warren definitely has a uh a warren definitely has a uh a tendency to look forward and to think tendency to look forward and to think tendency to look forward and to think optimistically i don't think we could optimistically i don't think we could optimistically i don't think we could ever have gotten where he's gotten if he ever have gotten where he's gotten if he ever have gotten where he's gotten if he hadn't been an optimist and he believes hadn't been an optimist and he believes hadn't been an optimist and he believes that there are pessimists around who that there are pessimists around who that there are pessimists around who don't understand facts as well as he don't understand facts as well as he don't understand facts as well as he does does does and he is in the business of being a and he is in the business of being a and he is in the business of being a teacher teacher
Otherteacher trying to straighten out the landscape
Othertrying to straighten out the landscape
Othertrying to straighten out the landscape for these people
Otherwarren decided to close down his
Otherwarren decided to close down his
Otherwarren decided to close down his partnership in 69 because
Otherpartnership in 69 because
Otherpartnership in 69 because the late 60s were a period of enormous
Otherthe late 60s were a period of enormous
Otherthe late 60s were a period of enormous speculation
Otherspeculation
Otherspeculation and stock prices had gotten in
Otherand stock prices had gotten in
Otherand stock prices had gotten in to levels that warren just could not
Otherto levels that warren just could not
Otherto levels that warren just could not understand in many cases that people
Otherunderstand in many cases that people
Otherunderstand in many cases that people were
Otherwere
Otherwere buying he and he said i just don't
Otherwere buying he and he said i just don't
Otherwere buying he and he said i just don't understand this market
Otherunderstand this market
Otherunderstand this market and i'm better getting out of it and so
Otherand i'm better getting out of it and so
Otherand i'm better getting out of it and so he just chose to close down the hedge
Otherhe just chose to close down the hedge
Otherhe just chose to close down the hedge fund
Otherfund
Otherfund which is what it was and and
Otherwhich is what it was and and
Otherwhich is what it was and and berkshire meanwhile was there he'd been
Otherberkshire meanwhile was there he'd been
Otherberkshire meanwhile was there he'd been he'd taken control of that in 1965.
Otherhe'd taken control of that in 1965.
Otherhe'd taken control of that in 1965. people used to write how he had left the
Otherpeople used to write how he had left the
Otherpeople used to write how he had left the investment business and i used to laugh
Otherinvestment business and i used to laugh
Otherinvestment business and i used to laugh at that because
Otherat that because
Otherat that because he hadn't left the investment business
Otherhe hadn't left the investment business
Otherhe hadn't left the investment business he just changed the
Otherhe just changed the
Otherhe just changed the uh the uh party that
Otheruh the uh party that
Otheruh the uh party that through which he was uh doing it and so
Otherthrough which he was uh doing it and so
Otherthrough which he was uh doing it and so he he just said there's idiocy out here
Otherhe he just said there's idiocy out here
Otherhe he just said there's idiocy out here in the stock market and i don't really
Otherin the stock market and i don't really
Otherin the stock market and i don't really want to have a part of it
Carol Loomisbecoming warren buffett is athat's a long period of years in whichthat's a long period of years in whichthat's a long period of years in which he was becoming warren buffetthe was becoming warren buffetthe was becoming warren buffett and he was not the statesman that he nowand he was not the statesman that he nowand he was not the statesman that he now is uh when he started out of courseis uh when he started out of courseis uh when he started out of course he was so young that no one would havehe was so young that no one would havehe was so young that no one would have accepted him as a statesmanaccepted him as a statesmanaccepted him as a statesman anyway but he has developed over theanyway but he has developed over theanyway but he has developed over the yearsyearsyears so much he's broadened that that is theso much he's broadened that that is theso much he's broadened that that is the best word for him hebest word for him hebest word for him he is has broadened in ways that have madeis has broadened in ways that have madeis has broadened in ways that have made him a differenthim a differenthim a different man i think my expression was thatman i think my expression was thatman i think my expression was that fortunefortunefortune for which i worked was lucky to havefor which i worked was lucky to havefor which i worked was lucky to have been standing alongside warren buffettbeen standing alongside warren buffettbeen standing alongside warren buffett while he was becomingwhile he was becomingwhile he was becoming warren buffett he he changedwarren buffett he he changedwarren buffett he he changed not only that he kept creating anot only that he kept creating anot only that he kept creating a journalist loved this kept creating newjournalist loved this kept creating newjournalist loved this kept creating new storiesstoriesstories um and uh he was never dullum and uh he was never dullum and uh he was never dull you you know you knew that um uhyou you know you knew that um uhyou you know you knew that um uh just when you thought you understood thejust when you thought you understood thejust when you thought you understood the kind of thing that warren buffett waskind of thing that warren buffett waskind of thing that warren buffett was going to do he would come up withgoing to do he would come up withgoing to do he would come up with something new andsomething new and
Questionersomething new and for a journalistic organization to be standing alongside him while he did that and to have some some pretty good access because i had known him for so long was was a wonderful thing warren was quite an expert about newspapers he bought the um buffalo evening news and um and he he he got interested in the post because he recognized it because he recognized it as a great greatly undervalued company and company and company and he he got to know kay graham he he got to know kay graham told her he had no evil intentions at all all all and uh he was going to let um uh and uh he was going to let um uh and uh he was going to let um uh he wasn't going to try to tell her what he wasn't going to try to tell her what he wasn't going to try to tell her what she to do in her newspapers she to do in her newspapers she to do in her newspapers and um it um it just and um it um it just and um it um it just it was it was a great investment it was it was a great investment it was it was a great investment opportunity for him opportunity for him opportunity for him and if there was something else i don't and if there was something else i don't and if there was something else i don't know what it was that nixon's know what it was that nixon's know what it was that nixon's the political uh strife that the political uh strife that the political uh strife that the washington post entered into hurt the washington post entered into hurt the washington post entered into hurt its value its value its value and made made most people run from the and made made most people run from the and made made most people run from the stock stock stock and the stock went way way down to
Questionerand the stock went way way down to levels that were almost unconscionable uh and warren realized how uh very very low it uh it was and uh so he has always wanted to move into undervalued situations and this was one that was right up there on the rise and for you to see kay graham uh was warren did think she was undervalued she'd been thrown into this job for which in some senses people would have said she had no background for a very very important journalistic job she was not she didn't have a lot of self-confidence and so she needed constantly to have her self-confidence build up she was not familiar with financial figures finance was not a big part of her life and warren was a teacher and he has said that he oh that his ambition in life is to be a teacher uh he kate kay graham was a uh one of his primary uh students um she said that that he
Questionerum she said that that heum she said that that he uh that she was going to the buffettuh that she was going to the buffettuh that she was going to the buffett school of businessschool of businessschool of business which is kind of uh ludicrouswhich is kind of uh ludicrouswhich is kind of uh ludicrous considering that he couldn't get intoconsidering that he couldn't get intoconsidering that he couldn't get into harvard business schoolharvard business schoolharvard business school and he had a great opportunityand he had a great opportunityand he had a great opportunity to influence the way that the post isto influence the way that the post isto influence the way that the post is goinggoinggoing to uh go even though i don't mean thatto uh go even though i don't mean thatto uh go even though i don't mean that journalistically because he wasjournalistically because he wasjournalistically because he was hands off entirely in in what the posthands off entirely in in what the posthands off entirely in in what the post was runningwas runningwas running kay graham did introduce warren to thekay graham did introduce warren to thekay graham did introduce warren to the world of washingtonworld of washingtonworld of washington and it was a little bit rocky at times iand it was a little bit rocky at times iand it was a little bit rocky at times i think he turned up for one of his firstthink he turned up for one of his firstthink he turned up for one of his first dinners with her without a tuxedo anddinners with her without a tuxedo anddinners with her without a tuxedo and they had to find a tuxedothey had to find a tuxedothey had to find a tuxedo on very short notice in in washingtonon very short notice in in washingtonon very short notice in in washington um and but he enjoyed it umum and but he enjoyed it umum and but he enjoyed it um i think at first he probably felt likei think at first he probably felt likei think at first he probably felt like he was in ahe was in ahe was in a totally unfamiliar environment and hetotally unfamiliar environment and hetotally unfamiliar environment and he waswaswas but he could talk with the best of thembut he could talk with the best of thembut he could talk with the best of them and and and he enjoyed it andand and and he enjoyed it andand and and he enjoyed it and uh kay kay had wonderfuluh kay kay had wonderfuluh kay kay had wonderful dinner parties and um so uh
Otherdinner parties and um so uh he got he got so he liked it i think the whole period after which he became involved with the washington post was important to his growth he he thought more broadly um his uh democratic uh inclinations uh his political democratic inclinations were were strengthening um and he he was able to to test them out talking to people like the editorial editor of the washington post meg greenfield he he was introduced to new people entirely different group than he had ever dealt with before and still he wanted to go back to omaha but he didn't mind getting into washington politics a little bit
Carol Loomisi i think of 1970 as being sort of the key year in in which the conditions for women changed in the business world and and kaye was getting involved at that time in the in the management of the post um i was at fortune i never did think of myself as
Othermyself asmyself as um on any kind of battlefield thereum on any kind of battlefield thereum on any kind of battlefield there i just i knew i'd been put into a jobi just i knew i'd been put into a jobi just i knew i'd been put into a job thatthatthat most women didn't do and i was enjoyingmost women didn't do and i was enjoyingmost women didn't do and i was enjoying that andthat andthat and and trying to get better all the timeand trying to get better all the timeand trying to get better all the time and and kaye wasand and kaye wasand and kaye was kay was a learner um and warrenkay was a learner um and warrenkay was a learner um and warren um one thing i will say aboutum one thing i will say aboutum one thing i will say about warren among many is that umwarren among many is that umwarren among many is that um i have never ever met a businessi have never ever met a businessi have never ever met a business leader who is as unprejudiced asleader who is as unprejudiced asleader who is as unprejudiced as warren is about gender orwarren is about gender orwarren is about gender or nationality ethnic anything warren hasnationality ethnic anything warren hasnationality ethnic anything warren has only oneonly oneonly one prejudice and that is about intelligenceprejudice and that is about intelligenceprejudice and that is about intelligence and he doesn't care where that turns upand he doesn't care where that turns upand he doesn't care where that turns up it and so i think of him as being umit and so i think of him as being umit and so i think of him as being um more uh supportive of womenmore uh supportive of womenmore uh supportive of women over the years than any businessover the years than any businessover the years than any business executive i knowexecutive i knowexecutive i know because many many a big businessbecause many many a big businessbecause many many a big business executivesexecutivesexecutives that i respect for other reasons arethat i respect for other reasons arethat i respect for other reasons are just a little bitjust a little bitjust a little bit insensitive on the women front andinsensitive on the women front andinsensitive on the women front and warren has none of that he has alwayswarren has none of that he has alwayswarren has none of that he has always been a supporter of womenfor berkshire um insurancefor berkshire um insurancefor berkshire um insurance is in itself a profitable business
Otheris in itself a profitable business is in itself a profitable business particularly if it's well particularly if it's well particularly if it's well run and warren has had a real knack for getting getting getting good people uh to run his insurance good people uh to run his insurance good people uh to run his insurance companies but it has the additional companies but it has the additional companies but it has the additional uh advantage of creating something uh advantage of creating something uh advantage of creating something that's called float that's called float that's called float and float is a uh is the money that and float is a uh is the money that and float is a uh is the money that hangs around berkshire hangs around berkshire hangs around berkshire while a claim is waiting to be paid while a claim is waiting to be paid while a claim is waiting to be paid eventually somebody's going to get that eventually somebody's going to get that eventually somebody's going to get that claim payment claim payment claim payment but in the meantime the money is there but in the meantime the money is there but in the meantime the money is there that in effect has been reserved for that in effect has been reserved for that in effect has been reserved for payment payment payment and can be used by berkshire to and can be used by berkshire to and can be used by berkshire to invest in other things and invest in other things and invest in other things and warren turned out to have a warren turned out to have a warren turned out to have a extraordinary ability to both extraordinary ability to both extraordinary ability to both run the insurance companies accumulate run the insurance companies accumulate run the insurance companies accumulate float float float and use the money thrown off both by the and use the money thrown off both by the and use the money thrown off both by the running and the float running and the float running and the float to buy companies that fed the to buy companies that fed the to buy companies that fed the the growth of berkshire i think c's for warren represented i think c's for warren represented i think c's for warren represented his departure from the cigar but his departure from the cigar but his departure from the cigar but days to the time days to the time days to the time of buying good companies at fair prices of buying good companies at fair prices
Questionerof buying good companies at fair prices seas is a company that has thrown off uhseas is a company that has thrown off uhseas is a company that has thrown off uh money i mean it does it does it does notmoney i mean it does it does it does notmoney i mean it does it does it does not need a lot of capital investmentsneed a lot of capital investmentsneed a lot of capital investments historically warren has tried to stayhistorically warren has tried to stayhistorically warren has tried to stay did try for many many years to stay awaydid try for many many years to stay awaydid try for many many years to stay away from companies that required largefrom companies that required largefrom companies that required large amounts of capital investmentsamounts of capital investmentsamounts of capital investments eventuallyeventuallyeventually to build berkshire he had to move intoto build berkshire he had to move intoto build berkshire he had to move into companies likecompanies likecompanies like the railroad and the utilitythe railroad and the utilitythe railroad and the utility that do require large capitalthat do require large capitalthat do require large capital expenditures ifexpenditures ifexpenditures if berkshire's growth would have haveberkshire's growth would have haveberkshire's growth would have have stopped if if he hadn't done thatstopped if if he hadn't done thatstopped if if he hadn't done that but seas was a company that threw offbut seas was a company that threw offbut seas was a company that threw off all this moneyall this moneyall this money that could be used for other things andthat could be used for other things andthat could be used for other things and meanwhile was a wonderful companymeanwhile was a wonderful companymeanwhile was a wonderful company uh people love it i have some in theuh people love it i have some in theuh people love it i have some in the kitchenkitchenkitchen um and um uh so it wasum and um uh so it wasum and um uh so it was it was a great uh a greatit was a great uh a greatit was a great uh a great acquisition for warren and one that iacquisition for warren and one that iacquisition for warren and one that i think he still feelsthink he still feelsthink he still feels very proud of todayi think that warren could think of somei think that warren could think of somei think that warren could think of some of his investments as a comfort zone
Otherof his investments as a comfort zone
he understands them like coca-cola
he understands them like coca-cola
he understands them like coca-cola
Other[Music]
[Music]
[Music]
Otherhe doesn't think they're going to go
away because he himself could probably
away because he himself could probably
away because he himself could probably
notnotnot
exist if he didn't have uh frequent
exist if he didn't have uh frequent
exist if he didn't have uh frequent
infusions of cocoa and um
infusions of cocoa and um
infusions of cocoa and um
Otherso i i think he
so i i think he
so i i think he
Otherhe does feel that knowing a business
he does feel that knowing a business
he does feel that knowing a business
and knowing the kind that's not going to
and knowing the kind that's not going to
and knowing the kind that's not going to
go away
go away
go away
can't be in in change by technology
can't be in in change by technology
can't be in in change by technology
i those are important
i those are important
i those are important
Other[Music]
[Music]
[Music]
Otherimportant pegs for him to use when he's
important pegs for him to use when he's
important pegs for him to use when he's
considering
considering
considering
investment absolutely
warren's divisions of his life
warren's divisions of his life
warren's divisions of his life
Otherthe business life has always been the
the business life has always been the
the business life has always been the
one that he focused on
one that he focused on
one that he focused on
Otherand he he was not i think he probably
and he he was not i think he probably
and he he was not i think he probably
would say this himself he was not
would say this himself he was not
would say this himself he was not
the most dedicated father who ever
the most dedicated father who ever
the most dedicated father who ever
existed although his
existed although his
existed although his
Otheruh his kids all grew up to be wonderful
uh his kids all grew up to be wonderful
uh his kids all grew up to be wonderful
people
people
people
and uh wonderful admirers and very
and uh wonderful admirers and very
and uh wonderful admirers and very
devoted to their
devoted to their
devoted to their
to their father um but
to their father um but
to their father um but
Otherwarren's personal life did not include a
warren's personal life did not include a
warren's personal life did not include a
lot of time spent
Otherlot of time spent away from the reading and the thinking about berkshire that made it grow he just wasn't built that way susie's leaving for california was um kind of unprecedented as a a a way for a married couple to live because they uh continued to travel together after she was in california um i think it was a great blow for warren because he had depended on her so much she had sort of uh she had she had filled in every emotional facet of his life and it it was um it extraordinarily hard for him on the other hand he still had the business and he could he could turn to that uh and draw from it uh the strength that that it had always given him um it was um it was it most of his friends didn't quite understand what was going on um but it was something they managed to work out for a lot of years in in omaha she was always going to be mrs
Othermrs buffett mrs warren buffett she
Otherbuffett mrs warren buffett she
Othershe had staked out her own area of of
Othershe had staked out her own area of of
Othershe had staked out her own area of of philanthropy but uh she needed
Otherphilanthropy but uh she needed
Otherphilanthropy but uh she needed uh she needed time to uh she needed
Otheruh she needed time to uh she needed
Otheruh she needed time to uh she needed a different uh venue for uh
Othera different uh venue for uh
Othera different uh venue for uh uh for her own interests and and i never
Otheruh for her own interests and and i never
Warrenuh for her own interests and and i never had
Warrenhad
Warrenhad thought of it really but i guess it it
Warrenthought of it really but i guess it it
Warrenthought of it really but i guess it it it could be because women were
Warrenit could be because women were
Warrenit could be because women were kind of reaching out in in every
Warrenkind of reaching out in in every
Warrenkind of reaching out in in every direction
Otherwarren was able to avoid the tech bubble
Otherwarren was able to avoid the tech bubble
Otherwarren was able to avoid the tech bubble because
Otherbecause
Otherbecause he um he recognized something about
Otherhe um he recognized something about
Otherhe um he recognized something about the tech tech companies many people did
Otherthe tech tech companies many people did
Otherthe tech tech companies many people did not recognize and still don't
Othernot recognize and still don't
Othernot recognize and still don't that technology changes
Otherthat technology changes
Otherthat technology changes and that a company that is highly
Otherand that a company that is highly
Otherand that a company that is highly prosperous
Otherprosperous
Otherprosperous in 1985 or 1990
Otherin 1985 or 1990
Otherin 1985 or 1990 can be kind of thrown out let's talk
Othercan be kind of thrown out let's talk
Othercan be kind of thrown out let's talk about
Otherabout
Otherabout aol think about aol where it stood
Otheraol think about aol where it stood
Otheraol think about aol where it stood um in in the late 80s and uh the fact
Otherum in in the late 80s and uh the fact
Otherum in in the late 80s and uh the fact that it
Otherthat it
Otherthat it was soon to to assume a much less
Otherwas soon to to assume a much less
Otherwas soon to to assume a much less important role still around today
Otherimportant role still around today
Otherimportant role still around today but warren does not like to buy business
Otherbut warren does not like to buy business
Otherbut warren does not like to buy business as a change he likes
Otheras a change he likes
Otheras a change he likes businesses like without coca-cola you
Questionerbusinesses like without coca-cola you can argue with change because everybody's worrying about their weight but he likes um uh businesses that are going to uh continue to to be there uh to operate pretty much in the same way that they always have and to turn out uh the good profits that they always have so technology was too much change for him he never knew where they were going to be 10 years from there they might be great in year one but year 10 they could have been even almost put out of business by change in technology it wasn't for him in the late 80s he was pretty much said to be a has-been people said it was all over for warren buffett and he just because he was not involved in technology the technology bubble was forming uh it was going to explode in the early 90s and they just said though warren buffett doesn't know what he's doing he's uh he's not with it uh he's not cool um
Questionerhe's not with it uh he's not cool um he is somebody that uh just um has had his day and it's gone warren doesn't enjoy criticism published criticism any more than anybody else i don't think um but i think that uh down deep he he knew that his methods were the right thing for him uh he was not to be swerved and to a different direction and i i i don't see any sign that he changed his way of operating so i i don't think it got to him very much it had to be a pretty long period in his life because it went on for a number of years i remember that charlie and he talked about that they both wanted to be around when the bubble burst because they just couldn't quite imagine how things had gotten as much out of kilter as they had he hates to be misquoted and um and and berkshire is a complicated company so when berkshire hathaway when somebody at berkshire hathaway buys in a stock they always
Questionerbuys in a stock they always the headline writers intuitively turn to headlines that say buffett buys apple as we're hearing these days where there are now three buyers they've always been at least two or for many decades there's been at least two but now there are three buyers so it could easily be and then the apple investment for example was not warren's investment at all it was one of the two guys who worked for him uh ted wessler and todd combs and um so it's easy for the press to get things wrong about berkshire because it's a complicated company and i i do think that um he would like to always be quoted uh accurately in the press um and have berkshire described in the way that it actually is happening but uh he uh he manages to uh and i think that one of the reasons he's gone on television more is because he wanted to be able to
Questioneris because he wanted to be able to explain himselfexplain himselfexplain himself he didn't want to have the presshe didn't want to have the presshe didn't want to have the press standing interpreting what he was doingstanding interpreting what he was doingstanding interpreting what he was doing he wanted to be the guy who was thehe wanted to be the guy who was thehe wanted to be the guy who was the explainer and his speechesexplainer and his speechesexplainer and his speeches which can be very complicated are alwayswhich can be very complicated are alwayswhich can be very complicated are always done extemporaneouslydone extemporaneouslydone extemporaneously and so they do not lend themselves toand so they do not lend themselves toand so they do not lend themselves to being put downbeing put downbeing put down in in perfect order i i know this uhin in perfect order i i know this uhin in perfect order i i know this uh personally because i havepersonally because i havepersonally because i have had to take some of them and edit themhad to take some of them and edit themhad to take some of them and edit them intointointo into articles but that's the way withinto articles but that's the way withinto articles but that's the way with extemporaneousextemporaneousextemporaneous speeches but he's uh hespeeches but he's uh hespeeches but he's uh he has been on stage a public stage a lothas been on stage a public stage a lothas been on stage a public stage a lot andandand has grown to enjoy it i would say andhas grown to enjoy it i would say andhas grown to enjoy it i would say and now charlie is going to enjoy it alsonow charlie is going to enjoy it alsonow charlie is going to enjoy it also uh warren called me it was um iuh warren called me it was um iuh warren called me it was um i i think i was not aware at the time shei think i was not aware at the time shei think i was not aware at the time she came to that fortune conferencecame to that fortune conferencecame to that fortune conference of what she had just learnedof what she had just learnedof what she had just learned she left very quickly after theshe left very quickly after theshe left very quickly after the conferenceconferenceconference she told me that a friend of hersshe told me that a friend of hersshe told me that a friend of hers was ill that was during the aids periodwas ill that was during the aids period
Otherwas ill that was during the aids period and she she had some friends who were and she she had some friends who were and she she had some friends who were were ill with aids but now even were ill with aids but now even were ill with aids but now even as we talk about it i i think probably as we talk about it i i think probably as we talk about it i i think probably it it was because she herself was was it it was because she herself was was it it was because she herself was was the one who was she knew her the one who was she knew her the one who was she knew her she herself was the one who was ill and she herself was the one who was ill and she herself was the one who was ill and was going off to deal with it was going off to deal with it was going off to deal with it and the war and i learned i learned that and the war and i learned i learned that and the war and i learned i learned that susie was ill susie was ill susie was ill when warren called to tell me that she when warren called to tell me that she when warren called to tell me that she had throat cancer had throat cancer had throat cancer and uh he was taking it pretty hard and uh he was taking it pretty hard and uh he was taking it pretty hard he went to san francisco uh every he went to san francisco uh every he went to san francisco uh every weekend weekend weekend for i don't know how long but it was a for i don't know how long but it was a for i don't know how long but it was a long period long period long period and um it was not the normal kind of and um it was not the normal kind of and um it was not the normal kind of thing for him to do thing for him to do thing for him to do but um the circumstances but um the circumstances but um the circumstances susie being that ill the brightening susie being that ill the brightening susie being that ill the brightening that i that i think it would have that i that i think it would have that i that i think it would have brought to her weekends when he was out brought to her weekends when he was out brought to her weekends when he was out there there there i i think he knew it was important it i i think he knew it was important it i i think he knew it was important it was important for him too um i was playing golf at so i heard the um i was playing golf at so i heard the um i was playing golf at so i heard the news news news uh about susie dyne at wingfoot golf uh about susie dyne at wingfoot golf uh about susie dyne at wingfoot golf club where i was playing golf
Warrenclub where i was playing golf i walked off after a match it was the women's tournament a competition has once a year and i walked off after playing a match and my daughter was standing there and i looked at her you know why she why was she there and she said to me susie buffett has died and i said oh my gosh he'll never be able to stand this that's what i said remember this perfectly he he got up and and went back to work and recovered not recovered because he was still distraught by it but he but he went back to work in a way that i i could not have imagined that he could do and i've heard his daughter susie say i thought he might disappear into his bedroom and never come out and and the fact is he picked himself up and resumed his life after susie's death uh warren definitely did throw himself back in to his work uh in a way that uh let him keep going
Otheruh in a way that uh let him keep going in a forward sort of way
Otheri don't recall that i talked to him anymore it was always when i did talk to him it was with a feeling of enormous sympathy because i knew what a void it would have been in his life
Otherwell i think that warren's place in the pantheon of american businessmen is totally established um i laugh a little bit at um at lists of leaders in business that need to change every year journalistically because you can't run the same list every year and that leave warren buffett off because i i just i think that he is without doubt the um the leading businessman of the of the country um i i think he is quite possibly quite probably uh going to be the only one that ended up in the history books uh although i recall saying this to a friend uh recently and the friend said when you're talking about a hundred years from now which is what
Questionera hundred years from now which is what you're saying there aren't going to be any books and i said uh but i i i think he's going to end up in the history books a hundred years from now i'm not sure though what role he's going to be assigned will he be famous for what he did as an investor as a businessman because there is a difference or as a philanthropist and i'm i'm just not sure which of those roles you know andrew carnegie was carnegie more accurately was a businessman before he was a philanthropist but we remember him today as a philanthropist and i'm just not sure how it's going to turn out
Questionerthe shareholders well they they range from people with not much money to uh hedge fund guys who are uh the richest and uh often considered uh the most the greediest uh of all kinds of businessmen um i would say that uh an awful lot of the people that i've met out there
Questionermet out there are been people you'd like to spend your time around and i've seen many letters that have come in to warren after the meeting from people talking about how much they enjoyed the people they met how much they like the whole atmosphere how friendly they think it is of course that's a midwestern trade anyway and i think it's a congenial crowd that is drawn back just because it's not only warren and charlie up there but this the whole atmosphere of all these people who have had very good fortune in many cases because they've bought the stock but who sort of see them as cells as part of something a little bit bigger than the stock there is definitely a a sense of of a buffett community with a uh with a a charlie munger geography on the side um these these people they don't sell their stock if there were statistics about this there probably
Otherstatistics about this there probably would we would probably find that there would we would probably find that there would we would probably find that there are more long-term holders of berkshire are more long-term holders of berkshire are more long-term holders of berkshire than than than an any company people consider it a than any company people consider it a than any company people consider it a religion religion religion they don't they don't want to they don't they don't want to they don't they don't want to they don't it's always been a mistake to sell it's always been a mistake to sell it's always been a mistake to sell berkshire hathaway and so they don' berkshire hathaway and so they don' berkshire hathaway and so they don' want to be want to be want to be making the mistake now and um making the mistake now and um making the mistake now and um so they do see themselves as part of so they do see themselves as part of so they do see themselves as part of community and warren does community and warren does community and warren does everything he can to encourage that everything he can to encourage that everything he can to encourage that feeling feeling feeling because he regards shareholders because he regards shareholders because he regards shareholders as uh owners of the business as uh owners of the business as uh owners of the business and he regards the smallest of them as and he regards the smallest of them as and he regards the smallest of them as equal in size to the biggest many questions that are asked that many questions that are asked that many questions that are asked that the question are either asked for a the question are either asked for a the question are either asked for a response from both response from both response from both warren and charlie or warren and charlie or warren and charlie or warren turns to charlie or charlie warren turns to charlie or charlie warren turns to charlie or charlie intercedes to answer and warren's intercedes to answer and warren's intercedes to answer and warren's answers answers answers uh are always given with great tact uh are always given with great tact uh are always given with great tact he's very careful how he answers he's very careful how he answers he's very careful how he answers questions questions questions charlie has no tact um i once wrote of charlie has no tact um i once wrote of
Warrencharlie has no tact um i once wrote of him that he said he that when they handed out humility uh that he didn't get his fair share but he is uh he says what's on his mind and he doesn't care whether he insults the questioner or not so you'll certainly get this yen and yang where where warren is being very tactful and and charlie is almost saying to warren you know you don't mean that well the really truth is this it's a very interesting uh conversation whatever what happened in 2008 is as close as uh as ever happened leaving aside the depression of the 30s to the country's financial structure sort of falling apart this country depends on prompt payments there's a system out there in which everybody is expected to pay what they owe and and for the most part they do and wall street is a probably the epitome of this and we were very close um in the in 2008 in september 2008 specifically to that whole structure
Warrenspecifically to that whole structure breaking down and heroic efforts by a lot of people managed to prevent this from happening but i don't think most people realize how really uh terrible it was i was talking to him some on the phone he was getting calls from various people seeking help he he knew it was very very bad he he knew it was very very bad he he knew it was very very bad i don't don't recall that he ever said i don't don't recall that he ever said i don't don't recall that he ever said we've got two days we've got two days we've got two days or otherwise we're going to have a or otherwise we're going to have a or otherwise we're going to have a disaster disaster disaster but he knew it was bad and he was uh but he knew it was bad and he was uh but he knew it was bad and he was uh he was on he was talking to everybody he was on he was talking to everybody he was on he was talking to everybody and he was getting calls and he was getting calls and he was getting calls from people like tim geithner in um from people like tim geithner in um from people like tim geithner in um in washington the secretary of the in washington the secretary of the in washington the secretary of the treasury uh was calling him treasury uh was calling him treasury uh was calling him about very very important things about very very important things about very very important things and the dialogue between the two of them and the dialogue between the two of them and the dialogue between the two of them was going to determine was going to determine was going to determine a lot of what happened in the country a lot of what happened in the country a lot of what happened in the country well i don't think he um does anything well i don't think he um does anything well i don't think he um does anything without some sort of uh purpose or the without some sort of uh purpose or the without some sort of uh purpose or the belief that it will be
Otherbelief that it will bebelief that it will be uh to the to the good umuh to the to the good umuh to the to the good um and um he knew that his was a voiceand um he knew that his was a voiceand um he knew that his was a voice um that uhum that uhum that uh would would be important in the dialoguewould would be important in the dialoguewould would be important in the dialogue and then i i also believe that heand then i i also believe that heand then i i also believe that he he thought that the right actions wouldhe thought that the right actions wouldhe thought that the right actions would be takenbe takenbe taken in washington because to contemplatein washington because to contemplatein washington because to contemplate that they wouldn't be takenthat they wouldn't be takenthat they wouldn't be taken was to lead to disasterwas to lead to disasterwas to lead to disaster and so he he himself was optimistic thatand so he he himself was optimistic thatand so he he himself was optimistic that the right strategies were going to bethe right strategies were going to bethe right strategies were going to be formed and carried out
Otherwell derivatives are securitieswell derivatives are securitieswell derivatives are securities whose value is derivedwhose value is derivedwhose value is derived some other benchmark like the value of asome other benchmark like the value of asome other benchmark like the value of a stockstockstock so a stock option for exampleso a stock option for exampleso a stock option for example is a derivative it is ais a derivative it is ais a derivative it is a means by which one financial partymeans by which one financial partymeans by which one financial party transfers risk to another financialtransfers risk to another financialtransfers risk to another financial partypartyparty but an important thing about it is thatbut an important thing about it is thatbut an important thing about it is that the risk doesn't go awaythe risk doesn't go awaythe risk doesn't go away it's changed hands guy a has gotten itit's changed hands guy a has gotten itit's changed hands guy a has gotten it out of his handsout of his handsout of his hands and transferred it to guy band transferred it to guy band transferred it to guy b but the risk is still there and stillbut the risk is still there and stillbut the risk is still there and still stillstillstill something that kind of hangs over the
Questionersomething that kind of hangs over the economy and as derivatives have exploded um uh they and they are uh they are a huge force in the financial world and um warren uh does not uh think think well of them he um has uh called him uh he's called them uh weapons of mass destruction
Charliewell i learned it i learned that warren was going to give away well it was always apparent after susie's death that warren suddenly had a problem on his hand that he had hadn't anticipated he was going to have to be the the person who determined where his fortune how how it would be allocated uh he had expected this but there wasn't anybody else to do it so he was going to have to deal with it i heard him talk about it a little in conversations we had after susie died but i then think i just got a call from him said well i i've made i've made the decision i'm going to give
Warreni've made the decision i'm going to give i'm going to give most of my money toi'm going to give most of my money toi'm going to give most of my money to the to the gates foundationthe to the gates foundationthe to the gates foundation and i said we'd like to write about thatand i said we'd like to write about thatand i said we'd like to write about that and soand soand so we fortune did do the story that brokewe fortune did do the story that brokewe fortune did do the story that broke that newswell i definitely think that each eachwell i definitely think that each eachwell i definitely think that each each one of thoseone of thoseone of those uh four foundations is carrying out uhuh four foundations is carrying out uhuh four foundations is carrying out uh purposes uh missions thatpurposes uh missions thatpurposes uh missions that susie would have approved ofsusie would have approved ofsusie would have approved of and absolutely i know quite a lot aboutand absolutely i know quite a lot aboutand absolutely i know quite a lot about the threethe threethe three um the three the foundations of theum the three the foundations of theum the three the foundations of the three childrenthree childrenthree children they've all risen the children havethey've all risen the children havethey've all risen the children have risen to the occasionrisen to the occasionrisen to the occasion uh the work they're doing is uh isuh the work they're doing is uh isuh the work they're doing is uh is wonderful and i knowwonderful and i knowwonderful and i know very personally the work of the susan tvery personally the work of the susan tvery personally the work of the susan t buffettbuffettbuffett foundation and i can say that it's itsfoundation and i can say that it's itsfoundation and i can say that it's its mission is beingmission is beingmission is being carried out well susie would have lovedcarried out well susie would have lovedcarried out well susie would have loved it allum the susan thompson buffett foundationum the susan thompson buffett foundationum the susan thompson buffett foundation does notdoes notdoes not go around seeking out the pressgo around seeking out the pressgo around seeking out the press and uh it probably umand uh it probably umand uh it probably um it probably is not known to a lot ofit probably is not known to a lot ofit probably is not known to a lot of people but but i would say it's known to
Carol Loomispeople but but i would say it's known to quite a few too and heaven knows the information is publicly available there's no no problem about finding out what any foundation is doing i i feel very privileged to have known uh to have known warren and to um to have played a an important a role in any way may be important and and working with him on his uh annual letter um because he regards that uh as a part of his legacy um and uh it's uh it's not only i've been a privilege to work with him on that and to maybe help just a little bit make it better but not much because of the content of it is entirely his and uh i i feel that even if he didn't everybody needs an editor but even if he hadn't had an editor this and this letter would have been famous um um and also just to have had the chance to play bridge and to be at social occasions because
Otherand to be at social occasions because everyeveryevery i was in a group that every um two yearsi was in a group that every um two yearsi was in a group that every um two years met which i always called the buffettmet which i always called the buffettmet which i always called the buffett group although it had a verygroup although it had a verygroup although it had a very uh it had a very uh it had a wide rangeuh it had a very uh it had a wide rangeuh it had a very uh it had a wide range of namesof namesof names but it was the essentially the only waybut it was the essentially the only waybut it was the essentially the only way you could describe this group wasyou could describe this group wasyou could describe this group was friends of warren buffett so i alwaysfriends of warren buffett so i alwaysfriends of warren buffett so i always thought the buffett groupthought the buffett groupthought the buffett group and to to been a part of a lifeand to to been a part of a lifeand to to been a part of a life as big as warren's isas big as warren's isas big as warren's is is a wonder for anybody who everis a wonder for anybody who everis a wonder for anybody who ever managed to enjoy that i've beenmanaged to enjoy that i've beenmanaged to enjoy that i've been very lucky in thatwell i don't see howanybody could uhanybody could uhanybody could uh perform uh with the excellence thatperform uh with the excellence thatperform uh with the excellence that warren has and charlie has hadwarren has and charlie has hadwarren has and charlie has had in a slightly less uh important positionin a slightly less uh important positionin a slightly less uh important position
Otherthey have been such great leaders ofthey have been such great leaders ofthey have been such great leaders of that company that i don't know howthat company that i don't know howthat company that i don't know how anybodyanybodyanybody can uh follow that that's a tough act tocan uh follow that that's a tough act tocan uh follow that that's a tough act to follow if everfollow if everfollow if ever there was one however berkshire is athere was one however berkshire is athere was one however berkshire is a a bunch of assets is a collection ofa bunch of assets is a collection ofa bunch of assets is a collection of assetsassetsassets that is really wonderful and i know thatthat is really wonderful and i know that
Warrenthat is really wonderful and i know that charlie i've heard charlie say again and charlie i've heard charlie say again and charlie i've heard charlie say again and again again again i've told my kids not to sell because i've told my kids not to sell because i've told my kids not to sell because this company is going to thrive on and this company is going to thrive on and this company is going to thrive on and on on on and i i think that is probably right the and i i think that is probably right the and i i think that is probably right the assets are so wonderful assets are so wonderful assets are so wonderful well my very favorite uh buffett rule is well my very favorite uh buffett rule is well my very favorite uh buffett rule is uh don't in investing uh uh don't in investing uh uh don't in investing uh but rule number one is don't lose but rule number one is don't lose but rule number one is don't lose don't lose money and rule number two is don't lose money and rule number two is don't lose money and rule number two is don't forget the don't forget the don't forget the first rule so i love that
Questionerno i don't think i've experienced his no i don't think i've experienced his no i don't think i've experienced his tough side but i tough side but i tough side but i i do know that uh that he i do know that uh that he i do know that uh that he has that reputation as being tough with has that reputation as being tough with has that reputation as being tough with some of his managers and i've heard some of his managers and i've heard some of his managers and i've heard about that about that about that uh and i i know of one who uh and i i know of one who uh and i i know of one who um i know um i know um i know almost complained or certainly commented almost complained or certainly commented almost complained or certainly commented about uh the fact that about uh the fact that about uh the fact that how how tough and maybe even harsh how how tough and maybe even harsh how how tough and maybe even harsh strict he was in dealing with but i i strict he was in dealing with but i i strict he was in dealing with but i i have not seen have not seen have not seen it personally it personally it personally
Questionerwell i'm not certain that um well i'm not certain that um well i'm not certain that um there has ever been more brain power there has ever been more brain power there has ever been more brain power employed in a more creative way then
Otheremployed in a more creative way then warren has expended on berkshire he has never allowed himself to be trapped in any kind of formulaic way he has been opportunistic and there have been lots of opportunities that have come along and he has created some and some he has seized and um it and he all through this he has had a devotion of one idea he wants to make berkshire better and it is uh is something that for 50 years now that's been his every thought when he gets up in the morning what can i do what if there's a business happening what can i what can we how will this affect us what can we glean from this and uh if you're spending uh 50 years with pretty much 100 of your very high intelligence and energy focused on one ambition it's probably not surprising that the company has grown into the fourth largest uh in the country the the companies that form berkshire
Questionerthe the companies that form berkshirethe the companies that form berkshire are a collection of good businessesas identified byas identified byas identified by a man who undoubtedly has one of thea man who undoubtedly has one of thea man who undoubtedly has one of the great mindsgreat mindsgreat minds for business that ever existedfor business that ever existedfor business that ever existed the companies in the standard poor's uhthe companies in the standard poor's uhthe companies in the standard poor's uh 500500500 are just everybody who's in the standardare just everybody who's in the standardare just everybody who's in the standard poor's 500 and some of these are notpoor's 500 and some of these are notpoor's 500 and some of these are not goodgoodgood businesses and some of these arebusinesses and some of these arebusinesses and some of these are companies thatcompanies thatcompanies that warren would not even have gotten closewarren would not even have gotten closewarren would not even have gotten close tototo uh considering belonged to beuh considering belonged to beuh considering belonged to be cons could would not have come close tocons could would not have come close tocons could would not have come close to realizingrealizingrealizing should be to thinking should beshould be to thinking should beshould be to thinking should be in a umin this group of carefullyin this group of carefullyin this group of carefully chosen companies that berkshire hasbecomebecomebecome i i think investors whoi i think investors whoi i think investors who own berkshire hathaway in general feelown berkshire hathaway in general feelown berkshire hathaway in general feel good about themselves because theygood about themselves because theygood about themselves because they uh they they bought a companyuh they they bought a companyuh they they bought a company that uh has has grownthat uh has has grownthat uh has has grown uh has grown in a in a way thatuh has grown in a in a way thatuh has grown in a in a way that has distinguished it uh in the businesshas distinguished it uh in the businesshas distinguished it uh in the business enterprise in the business environmententerprise in the business environmententerprise in the business environment and umand umand um they're they're they can't think ofthey're they're they can't think ofthey're they're they can't think of anything bad
Questioneranything bad about being a berkshire shareholder it's they they see themselves as a part of a community they see warren and charlie as the the leaders uh they see a great reputation they know that to say i'm i've been a berkshire shareholder for a number of years is um is is a credit to themselves and i think they're just people who who who relish being in this community