QuestionerGentlemen, I want to thank both of you for being with us today. People look at partnerships, they look at marriages, and a lot of things don't last for very long. But you two have been working together for 57 years. I just wondered what's the secret. Warren, what do you think?
WarrenWell, obviously, we like each other a lot. We have minds that work the same way to a great degree. We find the same thing's quite humorous. We find the things we deplore we agree on. We've never had an argument. We've had lots of disagreements. Whenever we disagree, Charlie says, well, you'll end up agreeing with me because you're smart and I'm right. I haven't quite figured out the answer to that yet with 56 years of practice. So he's made me think about things I haven't thought about. In fact, I would say that every time I'm with Charlie, I've got at least some new slant on an ID that that causes me to rethink certain things. And we've had absolutely, we've had so much fun in the partnership over the years. It's been almost hilarious. It's been so much fun. You know, when we sat down, Warren said Charlie, you said to me, you know, Charlie being around makes me not only smarter, but it makes me behave better.
CharlieWell, we both have the theory that you should hang around good people and always behave better every year than you behaved the previous year. And as you rise in the world, it's particularly important to know that rule. And I don't think we deserve much credit for our good morals because we early figured out that they would work, the world would reward us better if we behave that way. There's no cost to them.
WarrenYeah. Charlie has to remind me of that occasionally.
CharlieI constantly quote Warren and everybody always loves it. I say, you take the high road, it's uncrowded.
WarrenYeah, such a good idea. You do not run into heavy traffic. You've got a huge advantage on the high road is that there aren't too many competitors.
CharlieOne thing that Warren has often quoted, you to me, he says that, you know, what is it about maturity?
WarrenOh, yeah. Well, Charlie's always telling me that maturity is behaving better than the other guy. And I say, well, why don't you tell that to the other guy?
QuestionerWarren just said that you probably each walk away from each other each time. you see each other and you've made each other think about an issue a little differently. Can you talk about something that you've thought about differently recently because of your interactions
[2:43]
Warrenwith each other? Well, you saw some of it today. We don't agree totally on everything, and yet we're quite respectful of one another. And we both have this fundamental idea that the world works better if you make your relationships win-win. And we both early learned that the way to get a good partner was to be a good partner. And these are very old-fashioned ideas. And they just worked so fabulously well. And they work so well at Berkshire. People are sold to Berkshire. I like coming the annual meeting. They're just almost deliriously happy with their decision. Well, think about hardwarming that is to us.
QuestionerWarren, how about you? What's something that Charlie has made you think differently on recently?
WarrenWell, the most important thing, he namely feel differently on really goes way back when he, when he weaned me away. He actually hit me over the head with him, two by four, but with the idea, from the idea of buying very so-so companies at very cheap prices, knowing that there was some small profit and looking for really wonderful businesses that we could buy at fair prices. So he is, in terms of quality. of business, quality of individual. I mean, he is, he's kept me from a lot of mistakes in terms of getting in with people that might be a mistake to be in with as well as, as businesses. He's, it's been heavy lifting on his part, but he's improved my behavior.
QuestionerHow much of what, I mean, a lot of what you're saying goes back to kind of old-fashioned values and really treating people fairly. How much of your outlook on life do you think comes because you were raised right here in Omaha, both of you.
WarrenA lot. A lot.
CharlieNow, we, a lot.
WarrenWe were raised in a similar environment, and we both worshipped our fathers, and we had fathers that deserved to be worshipped. And we, we, there's a lot of Omaha on both of us.
QuestionerOver the weekend, Charlie, you mentioned working for Warren's grandfather at the grocery store. You both worked for him.
CharlieI certainly did. What'd you learn there? Well, I learned. how hard it is to work for 10 hours for $2. It was not a gentle, loving relationship. He worked us pretty hard. He worked Warren pretty hard. He worked everybody pretty hard except himself. I once with another fellow, John Pestle, we shoveled wet, deep, heavy snow all around. We had these driveway and everything at the store. We did that for about four hours. And we couldn't unclunch our fingers or anything.
[5:33]
QuestionerWe went to my grandfather, and he said, well, how much should I pay you, boys? Because the dime's too little and dollars too much. The main thing we learned from the grocery store was we didn't want to work at a grocery store. When, how often do you two get to talk now? Because, Charlie, you're in California. You're on the West Coast.
WarrenWe talk less than we used to because we don't need to talk to.
CharlieYeah. It's unnecessary.
WarrenBut Berkshire has been a real joy to both of us, and not just because, you know, the stock made us rich. It's just been such a happy experience. There's so many people that are satisfied with Berkshire. Well, this weekend, it's stockholders, yes, but even beyond that managers and all. I mean, it's formed literally hundreds of very people. pleasant relationships with the kind of people you'd like to have relationships with. And it's been our own little test tube for some ideas that weren't and still aren't prevalent in American business. And we got to do things our own way. Like what? What's an idea you get to work? Whatever. You know, in terms of salary structure of the directors, for example. What other company attracts the best directors in the United States by paying $900 a year? year. And we've tried to create a model that we believe in. And we want it to work because if we believe in it as a failure, you know, who's going to pay any attention to it? So everything's worked out well.
QuestionerIf you two have one goal that you'd like to accomplish in the next year, what would it be? And I think I probably know for you, Warren. You know what I'd say. Yeah, I'm guessing you're looking for one more big deal?
WarrenJust one more. I won't ask for another one, you know, not until the first one's done. No, I'm always looking for ways to improve Berkshire. I would rather have Berkshire do well than they do well. I mean, that's just the way it is.
QuestionerCharlie, how about you? A goal for the next year?
CharlieWell, of course, we like every deal. But I think we also like the fact that we've got something going here that's going to keep going more or less. less the way it has under us long after we're gone. I don't think virtue is going to change. And that is a source of great pleasure because most corporate bureaucracies with prosperity let defects and complacency bureaucracy. All kinds of bad things creep in. I don't think Vircher is going to do much of that. One thing I, you know, I hope that the 25 people, those pictures were in the report this year and last year are the same 25. next year. Those are the 25 people at headquarters.
WarrenYeah. Yeah. We have people who like each other all do more than their share. That's true of a very high percentage of our managers. They work for Berkshire because they want to work for Berkshire, not as a way to make a living.
QuestionerWell, I want to thank you both for your time today. Really appreciate it.
WarrenThank you.