[0:21]
OtherWe promise not to sing.
WarrenGood morning, and we're delighted to have you all here. One of the things that makes it fun to run Berkshire is that we see real shareholders. We probably have a larger proportion of our shares held by individuals and not by institutions than virtually any large company in America. And that's the way we like it. And we love it when you come. We get to see you. You buy our products. You know, there's still a few things left downstairs, so feel free to leave any time during the meeting when Charlie's talking to go down and make a few purchases. Now, we're going to do as we've always done. First of all, I'd like to. I would like to give very special thanks to Andy Hayward. Andy, would you stand up, if you will, please? Andy is the man that there he is. Andy does those cartoons. He recruits Walter Cronkite and Bill Gates. He does the script. He gets Charlie Me to do recordings, and it's just wonderful the production he's put on. And for those of you, last year I mentioned a program that's on public broadcasting called Liberty's Kids. It's running consecutively there's, I think, 40 episodes. It tells the story really of the founding of the country, and it's a marvelous way to learn history. I've watched a number of the sessions. myself, and it, you know, kind of comes back to me from my early days, grade school, and high school, and Andy's done, I think, the parents of America and the country, a real service in producing this, and I will predict that 100 years from now people will be watching Liberty's kids. So I really salute Andy Hayward, and be sure to catch it on public broadcasting. And Andy, thanks for a wonderful production. Now, we're going to follow our usual procedure of leisurely proceeding through the four part of the business in three or four minutes. And then we will, I'll have a few comments actually on our business, and then, and a couple of acquisitions. And then we will spend the rest of the day until 3.30 with a break for lunch. We will spend here to answer any questions you have. We have microphones in various zones. We will proceed around and try to get every, every, and any subject that's on your mind, fire away, and I'll answer the easy ones, and Charlie will answer the tough ones. So now we will go through the formal part of the business. They've written a little script for me, and I will go through this. The meeting will now come to order.
[3:21]
WarrenI should introduce Charlie over here, not that he needs an introduction, but Charlie and I have been partners of one sort or another since 1959. We both grow up a good bit here. in Omaha, but we didn't know each other at the time. We both worked at the same grocery store. We had a similar experience. We found that neither one of us liked hard work. and if you go down to the Western Heritage Museum, they just opened an exhibit of that grocery store. It's a permanent exhibit. And naturally, I loved it. Charlie worked there a few years before I did in the past. But we didn't actually meet until I was 28 or 29, and Charlie was a few years older as he still is. And we've worked together now for, in one way or another, for 44 years. We've never had an argument. And we disagree sometimes on things. He have to learn to calibrate Charlie's answers. He, when I ask him whether he liked something, if he says, no, that means we put all our money in it. I mean, that is a huge If he says that's the dumbest idea I've ever heard, that's a more moderate investment that we make. And then you have to calibrate his answers. But once you learn to do that, you get a lot of wisdom. We have our directors with us, and I'll introduce them. We have, if you'll stand, please, as I call your name, and then you can, it'll be hard to do, but you can withhold your applause till they're all standing. Susan T. Buffett, Howard G. Howard G. Malcolm G. Chase, Ronald L. Olson, and Walter Scott, Jr. in addition to Charlie. Those are the directors of Berkshire Hathaway. As we mentioned in the annual report, we will be adding some directors who meet the four tests that I laid out in the report. We'll be adding some of those probably within the next year, whenever we're required to do so, we will be doing it. And we will have people who have a lot of their own money on the line. just like you do in Berkshire. And they will prosper or suffer in relation to how Berkshire does and not in relation to their director's fees or other things. So they will be selected for business savvy, which they will have. They will be selected for interest in the company, which is almost guaranteed by their holdings. They will be selected by their shareholder orientation, which, again, I think, that their holdings will produce. And we will have those people on board, probably by our next meeting. Also with us today, our partners in the firm of Deloitte and Touche are auditors.
[6:32]
OtherThey are available to respond to appropriate questions you might have concerning their firm's audit of the accounts of Berkshire. And I might say that almost any question would be appropriate. Mr. Forrest-Krutter, Secretary of Berkshire, he will make a written record of the proceedings. Ms. Becky Amick has been appointed in special. of elections at this meeting, she will certify to the count of votes cast in the election for directors. The name proxy holders for this meeting are Walter Scott Jr. and Mark N. Hamburg. We will conduct the business of the meeting and then adjourned the formal meeting. After that, we will entertain questions that you might have. Does the Secretary have a report of the number of Berkshire shares outstanding entitled to vote and represented at the meeting?
OtherYes, I do. As indicated in the proxy statement that accompanied the notice of this meeting that was sent to all shareholders of record, on March 5, 2003, being the record date for this meeting, there were 1,309,423 shares of Class A, Berkshire Hathaway Common Stock Outstanding, with each share entitled to one vote on motions considered at the meeting, and 6,763,493 shares of Class B, Berkshire Hathaway Common Stock Outstanding, with each share entitled to 1-200th of one vote on motions considered at the meeting. Of that number, 171,967, Class A shares, and 5,228,705 Class B shares are represented at this meeting by proxies returned through Thursday evening May 1.
OtherThank you. That number represents a quorum, and we will therefore directly proceed with the meeting. First order of business will be a reading of the minutes of the last meeting of shareholders. I recognize Mr. Walter Scott, who will place a motion before the meeting.
QuestionerI move that the reading of the minutes of the last meeting. the shareholders be dispensed with and the minutes approved. Do I hear a second?
OtherThe motion has been moved and second, and are there any comments or questions? We will vote on this motion by voice vote. All those in favor say aye. Opposed? You can signify by saying I'm leading. The motion is carried. The first item of business at the meeting is to elect directors. If a shareholder is present who wishes to withdraw a proxy previously sent in and vote in person on the election of directors, he or she may do so. Also, if any shareholder that is present has not turned in a proxy and desires of a ballot in order to vote in person, you may do so.
[8:55]
OtherIf you wish to do this, please identify yourself to meeting officials in the aisles who will furnish a ballot to you. With those persons desiring ballots, please identify themselves so we may distribute them. I now recognize Mr. Walter Scott to place a motion before the meeting with respect to election of directors.
OtherI move the Warren E. Buffett, Charles T. Munger, Susan T. Buffett, Howard G. Buffett, Malcolm G. Chase, Ronald L. Olson, and Walter Scott Jr. be elected as directors.
WarrenSounds good to me.
OtherIt has been moved in second of the Warnty, Buffett, Charles, Timonger, Susan T. Buffett, Howard, G. Buffett, Malcolm G. Chase, Ronald L. Olson, and Walter Scott Jr. be elected as directors. Are there any other nominations? Is there any discussion? The nominations are ready to be acted upon? If there are any shareholders voting in person, they should now mark their ballots on the election of directors and allow the ballots to be delivered to the inspector of elections. Would the process holders please also submit to the inspector of elections, a ballot on the election of directors voting the proxies in accordance with the instructions? in accordance with the instructions they have received. Ms. Azamek, when you're ready, you may give your report.
OtherMy report is ready. The ballot of the proxy holders, in response to proxies that were received through last Thursday evening cast not less than 1,058,098 votes for each nominee. That number far exceeds a majority of the number of the total votes related to all Class A and Class B shares outstanding. The certification required. by Delaware law of the precise count of the votes, including the additional votes to be cast by the proxy holders in response to proxies delivered at this meeting, as well as any cast in person at this meeting, will be given to the Secretary to be placed with the minutes of this meeting.
OtherThank you, Ms. Amick. Warnie Buffett, Susan T. Buffett, Howard, G. Buffett, Malcolm G. Chase, Charles Siemonger, Ronald L. Olson, and Walter Scott, Jr. have been elected as directors. The next item of business, is a proposal put forth by Berkshire shareholder, Christopher J. Freed, the owner of two Class B shares. Mr. Freed's motion is set forth in the proxy statement and provides that the shareholders request the company allows Class B shareholders who own at least seven registered shares of Class B stock to become eligible to participate in the shareholder-designated contributions program. The directors have recommended that the shareholders vote against this proposal. We will now open the floor to recognize Mr. Freed or is designated a present this proposal.
WarrenThank you, Mr. Buffett.
QuestionerGood morning, my fellow shareholders. My name is Chris Freed, and I am here to present a shareholder proposal. This proposal is designed to extend the shareholder-designated contribution program to include Class B shareholders. Let me first start off by saying in our shareholders.