[Music][Music][Music] thank you very much Warren for comingthank you very much Warren for comingthank you very much Warren for coming this evening and honoring us and um Ithis evening and honoring us and um Ithis evening and honoring us and um I don't think you need much of andon't think you need much of andon't think you need much of an introduction um but I just will say thatintroduction um but I just will say thatintroduction um but I just will say that I think it's fair to say that you areI think it's fair to say that you areI think it's fair to say that you are the most respected investor in the worldthe most respected investor in the worldthe most respected investor in the world and I thinkuh the most respected businessman in theuh the most respected businessman in theuh the most respected businessman in the world uh not just because you've made aworld uh not just because you've made aworld uh not just because you've made a great deal of money but because you'vegreat deal of money but because you'vegreat deal of money but because you've done it with enormous integrity anddone it with enormous integrity anddone it with enormous integrity and humility and as people will see tonighthumility and as people will see tonighthumility and as people will see tonight with enormous sense of humor and inwith enormous sense of humor and inwith enormous sense of humor and in addition to being a business person thataddition to being a business person thataddition to being a business person that everybody would aspire to be um he haseverybody would aspire to be um he haseverybody would aspire to be um he has in recent years become the with Billin recent years become the with Billin recent years become the with Bill Gates and Melinda Gates the largestGates and Melinda Gates the largestGates and Melinda Gates the largest philanthropist in the worldum I I think his netk worth might be inum I I think his netk worth might be inum I I think his netk worth might be in in excess a little bit higher than minein excess a little bit higher than minein excess a little bit higher than mine I'd say uh uh about $50 billion moreI'd say uh uh about $50 billion moreI'd say uh uh about $50 billion more more or less and he's committed to givemore or less and he's committed to givemore or less and he's committed to give 99% of that away uh and he's in the99% of that away uh and he's in the
99% of that away uh and he's in the process of doing so so thank you onprocess of doing so so thank you onprocess of doing so so thank you on behalf of the country and everybody elsebehalf of the country and everybody elsebehalf of the country and everybody else for doingthat I I your background is pretty wellthat I I your background is pretty wellthat I I your background is pretty well known but some people may not know thatknown but some people may not know thatknown but some people may not know that you actually spent much of youryou actually spent much of youryou actually spent much of your formative years in Washington DC yourformative years in Washington DC yourformative years in Washington DC your father father was elected to thefather father was elected to thefather father was elected to the Congress so you moved here you went toCongress so you moved here you went toCongress so you moved here you went to Alice deel Junior High School got a lotAlice deel Junior High School got a lotAlice deel Junior High School got a lot ofofof uh C's and D's as I understand and thenuh C's and D's as I understand and thenuh C's and D's as I understand and then you went to wooder Wilson High School uhyou went to wooder Wilson High School uhyou went to wooder Wilson High School uh finished uh 16th in your class uh butfinished uh 16th in your class uh butfinished uh 16th in your class uh but you were class of 17 we might addyou were class of 17 we might addyou were class of 17 we might add right well you had you were working youright well you had you were working youright well you had you were working you were doing you were delivering papers inwere doing you were delivering papers inwere doing you were delivering papers in the morning and delivering papers in thethe morning and delivering papers in thethe morning and delivering papers in the evening and so forth and my questionevening and so forth and my questionevening and so forth and my question really to begin is that many people whoreally to begin is that many people whoreally to begin is that many people who grow up in Washington love living heregrow up in Washington love living heregrow up in Washington love living here and they want to stay here so they hopeand they want to stay here so they hopeand they want to stay here so they hope to Aspire to be the head of a lobbyingto Aspire to be the head of a lobbyingto Aspire to be the head of a lobbying firm someday or they had of a
firm someday or they had of afirm someday or they had of a congressional staff or something um docongressional staff or something um docongressional staff or something um do you ever have any regrets that you mightyou ever have any regrets that you mightyou ever have any regrets that you might might have been able to make somethingmight have been able to make somethingmight have been able to make something of yourself had you stayed here well Iof yourself had you stayed here well Iof yourself had you stayed here well I I'm still young DAV but I I may comeI'm still young DAV but I I may comeI'm still young DAV but I I may come back I I went out to Alice Deal todayback I I went out to Alice Deal todayback I I went out to Alice Deal today first time I'd been there in 65 yearsfirst time I'd been there in 65 yearsfirst time I'd been there in 65 years and and I met the principal uh I went toand and I met the principal uh I went toand and I met the principal uh I went to Wilson also today but but at Alice I toWilson also today but but at Alice I toWilson also today but but at Alice I to get my recording sponged but I had noget my recording sponged but I had noget my recording sponged but I had no luck well um you told me earlier todayluck well um you told me earlier todayluck well um you told me earlier today that you you lived in Spring Valley yeahthat you you lived in Spring Valley yeahthat you you lived in Spring Valley yeah I lived I lived at U 49th Street betweenI lived I lived at U 49th Street betweenI lived I lived at U 49th Street between vaness and for road yeah and so today uhvaness and for road yeah and so today uhvaness and for road yeah and so today uh with the camera crew you knocked on thewith the camera crew you knocked on thewith the camera crew you knocked on the door of the person who was living indoor of the person who was living indoor of the person who was living in your house what did that person say wellyour house what did that person say wellyour house what did that person say well we had a good time I mean the housewe had a good time I mean the housewe had a good time I mean the house seemed to have shrunk but uh she she wasseemed to have shrunk but uh she she wasseemed to have shrunk but uh she she was she was very wonderful woman she's livedshe was very wonderful woman she's livedshe was very wonderful woman she's lived in the house for 30 plus years and and
in the house for 30 plus years and andin the house for 30 plus years and and we got along very well and then wewe got along very well and then wewe got along very well and then we retraced my paper up so when you wereretraced my paper up so when you wereretraced my paper up so when you were growing up in Washington you weregrowing up in Washington you weregrowing up in Washington you were already a business person well I thoughtalready a business person well I thoughtalready a business person well I thought so I didn't get a lot of publicso I didn't get a lot of publicso I didn't get a lot of public recognition as such but well but uh sorecognition as such but well but uh sorecognition as such but well but uh so you were making money and as Iyou were making money and as Iyou were making money and as I understand it uh you filed your firstunderstand it uh you filed your firstunderstand it uh you filed your first tax return when you were 14 years oldtax return when you were 14 years oldtax return when you were 14 years old yeah it was for the it was for the yearyeah it was for the it was for the yearyeah it was for the it was for the year when I was 13 and I filed it when I waswhen I was 13 and I filed it when I waswhen I was 13 and I filed it when I was 141414 okay and did you think the tax ratesokay and did you think the tax ratesokay and did you think the tax rates were too high then or not it it hurtwere too high then or not it it hurtwere too high then or not it it hurt more in those days I I did deduct mymore in those days I I did deduct mymore in those days I I did deduct my bicycle and my watch as as businessbicycle and my watch as as businessbicycle and my watch as as business expenses and and only because theexpenses and and only because theexpenses and and only because the statute of limitations is applied I tookstatute of limitations is applied I tookstatute of limitations is applied I took him entirely apparently I never used myhim entirely apparently I never used myhim entirely apparently I never used my bicycle for pleasure or my watch I neverbicycle for pleasure or my watch I neverbicycle for pleasure or my watch I never looked at my watch except when I waslooked at my watch except when I waslooked at my watch except when I was deliveringdeliveringdelivering papers so um after you graduated frompapers so um after you graduated frompapers so um after you graduated from wooder Wilson you then went to uh
wooder Wilson you then went to uhwooder Wilson you then went to uh actually the University of Pennsylvaniaactually the University of Pennsylvaniaactually the University of Pennsylvania for a year and a half and then youfor a year and a half and then youfor a year and a half and then you transferred back to to University oftransferred back to to University oftransferred back to to University of Nebraska why did you leave pen that wasNebraska why did you leave pen that wasNebraska why did you leave pen that was a great business school why did youa great business school why did youa great business school why did you leave yeah I just I I felt I wouldleave yeah I just I I felt I wouldleave yeah I just I I felt I would I really I wanted to quit after one yearI really I wanted to quit after one yearI really I wanted to quit after one year to be give you the honest answer on myto be give you the honest answer on myto be give you the honest answer on my father talked me he kind of talked mefather talked me he kind of talked mefather talked me he kind of talked me into going to college in the first placeinto going to college in the first placeinto going to college in the first place and then he talked me into going aand then he talked me into going aand then he talked me into going a second year but he said if I went asecond year but he said if I went asecond year but he said if I went a second year then I could I could dropsecond year then I could I could dropsecond year then I could I could drop out and uh so then I went back toout and uh so then I went back toout and uh so then I went back to Nebraska that way I got out of collegeNebraska that way I got out of collegeNebraska that way I got out of college in three years And So It sped things upin three years And So It sped things upin three years And So It sped things up and I planed to live in Nebraska so whenand I planed to live in Nebraska so whenand I planed to live in Nebraska so when you graduated from University ofyou graduated from University ofyou graduated from University of Nebraska you applied to Harvard BusinessNebraska you applied to Harvard BusinessNebraska you applied to Harvard Business School and were rejected that's true umSchool and were rejected that's true umSchool and were rejected that's true um has Harvard ever announced that they'vehas Harvard ever announced that they'vehas Harvard ever announced that they've regretted that this year well
regretted that this year wellregretted that this year well the I I understand the developmentthe I I understand the developmentthe I I understand the development officer is kind ofunhappy so you rejected by Harvard youunhappy so you rejected by Harvard youunhappy so you rejected by Harvard you went to Columbia business school andwent to Columbia business school andwent to Columbia business school and then you met the man who you reallythen you met the man who you reallythen you met the man who you really idolized Ben Graham and when you tookidolized Ben Graham and when you tookidolized Ben Graham and when you took his class was he as great as you hadhis class was he as great as you hadhis class was he as great as you had thought he was going to be he he reallythought he was going to be he he reallythought he was going to be he he really was he only he only taught one semesterwas he only he only taught one semesterwas he only he only taught one semester one class I mean he came up from Wallone class I mean he came up from Wallone class I mean he came up from Wall Street and taught this class uh that'sStreet and taught this class uh that'sStreet and taught this class uh that's the reason I went to Columbia and uh itthe reason I went to Columbia and uh itthe reason I went to Columbia and uh it he I knew what he I knew I'd alreadyhe I knew what he I knew I'd alreadyhe I knew what he I knew I'd already read all the books and everything so Iread all the books and everything so Iread all the books and everything so I but it was inspirational just to bebut it was inspirational just to bebut it was inspirational just to be around him and I I it it it made a realaround him and I I it it it made a realaround him and I I it it it made a real difference in my life so when you umdifference in my life so when you umdifference in my life so when you um graduated you wanted to go work for himgraduated you wanted to go work for himgraduated you wanted to go work for him and uh in his firm and then he rejectedand uh in his firm and then he rejectedand uh in his firm and then he rejected you uh for an interesting reason uh inyou uh for an interesting reason uh inyou uh for an interesting reason uh in those days I understand that they werethose days I understand that they werethose days I understand that they were Jewish firms and non-jewish firms andJewish firms and non-jewish firms and
Jewish firms and non-jewish firms and his was a Jewish firm and you weren'this was a Jewish firm and you weren'this was a Jewish firm and you weren't Jewish so he said because you weren'tJewish so he said because you weren'tJewish so he said because you weren't Jewish he didn't hire you is that rightJewish he didn't hire you is that rightJewish he didn't hire you is that right that's true he's and and I I was readythat's true he's and and I I was readythat's true he's and and I I was ready to convert believeme I I think they might have felt as ame I I think they might have felt as ame I I think they might have felt as a little phony at the time something I uhlittle phony at the time something I uhlittle phony at the time something I uh but it was it it was true that therebut it was it it was true that therebut it was it it was true that there were very few firms in Wall Street thatwere very few firms in Wall Street thatwere very few firms in Wall Street that would hire Jews at that time and thenwould hire Jews at that time and thenwould hire Jews at that time and then only employed five or six people but heonly employed five or six people but heonly employed five or six people but he told me to the extent that they had weretold me to the extent that they had weretold me to the extent that they had were able to employ five or six people theyable to employ five or six people theyable to employ five or six people they really felt that the Jews could not getreally felt that the Jews could not getreally felt that the Jews could not get into most jobs in Wall Street and thatinto most jobs in Wall Street and thatinto most jobs in Wall Street and that they they were were going to employ onlythey they were were going to employ onlythey they were were going to employ only Jews well his name was Ben Graham butJews well his name was Ben Graham butJews well his name was Ben Graham but actually his real name was Ben grossactually his real name was Ben grossactually his real name was Ben gross bomb well is is is yeah his parents Ibomb well is is is yeah his parents Ibomb well is is is yeah his parents I think they Chang their name yeah my mythink they Chang their name yeah my mythink they Chang their name yeah my my son is named Howard Graham Buffett namedson is named Howard Graham Buffett namedson is named Howard Graham Buffett named after Ben and and he's very glad thatafter Ben and and he's very glad that
after Ben and and he's very glad that Ben's Buffett changed hisBen's Buffett changed hisBen's Buffett changed his name so you moved back for a while to umname so you moved back for a while to umname so you moved back for a while to um U Nebraska but then he ultimatelyU Nebraska but then he ultimatelyU Nebraska but then he ultimately changed his mind and you went to workchanged his mind and you went to workchanged his mind and you went to work for Ben Graham I kept pestering him yeahfor Ben Graham I kept pestering him yeahfor Ben Graham I kept pestering him yeah I made a real pester myself and in thoseI made a real pester myself and in thoseI made a real pester myself and in those years um what did you aspire to would doyears um what did you aspire to would doyears um what did you aspire to would do you aspire to become a very wealthyyou aspire to become a very wealthyyou aspire to become a very wealthy person would you want to be buyingperson would you want to be buyingperson would you want to be buying stocks would you want to buy companiesstocks would you want to buy companiesstocks would you want to buy companies what was your aspiration in those earlywhat was your aspiration in those earlywhat was your aspiration in those early days I I loved i l just analyzingdays I I loved i l just analyzingdays I I loved i l just analyzing Securities I just spent hours and hoursSecurities I just spent hours and hoursSecurities I just spent hours and hours and hours just I I kept turning theand hours just I I kept turning theand hours just I I kept turning the pages of Moody which instead of goingpages of Moody which instead of goingpages of Moody which instead of going you know you had no internet thanyou know you had no internet thanyou know you had no internet than anything else so he had two sources ofanything else so he had two sources ofanything else so he had two sources of information Moody and standard and Poesinformation Moody and standard and Poesinformation Moody and standard and Poes and and we happened to have these setsand and we happened to have these setsand and we happened to have these sets of moodies they were about in agregateof moodies they were about in agregateof moodies they were about in agregate probably about 8,000 pages about fiveprobably about 8,000 pages about fiveprobably about 8,000 pages about five different manuals and I went throughdifferent manuals and I went through
different manuals and I went through those Page by Pagethose Page by Pagethose Page by Page and well it must have been exciting uhand well it must have been exciting uhand well it must have been exciting uh oh yeah it's a little strange I mean youoh yeah it's a little strange I mean youoh yeah it's a little strange I mean you know I I I actually went to Amazon a fewknow I I I actually went to Amazon a fewknow I I I actually went to Amazon a few years ago and I found an old 1951 Moodyyears ago and I found an old 1951 Moodyyears ago and I found an old 1951 Moody now everybody else is going there fornow everybody else is going there fornow everybody else is going there for Playboy magazine but I'm ordering thePlayboy magazine but I'm ordering thePlayboy magazine but I'm ordering the old moodies so you've got a strange guyold moodies so you've got a strange guyold moodies so you've got a strange guy here well when you were uh working inhere well when you were uh working inhere well when you were uh working in New York uh you were attracted to one ofNew York uh you were attracted to one ofNew York uh you were attracted to one of the companies that Ben Graham wasthe companies that Ben Graham wasthe companies that Ben Graham was involved with which was Geico absolutelyinvolved with which was Geico absolutelyinvolved with which was Geico absolutely as I understand you came down andas I understand you came down andas I understand you came down and knocked on the door what Geico and youknocked on the door what Geico and youknocked on the door what Geico and you just started talking with them and yeahjust started talking with them and yeahjust started talking with them and yeah it it it was really a lucky day I went Iit it it was really a lucky day I went Iit it it was really a lucky day I went I went I was at the Columbia Universitywent I was at the Columbia Universitywent I was at the Columbia University library and I looked up Ben in who wholibrary and I looked up Ben in who wholibrary and I looked up Ben in who who in America and it had a whole bunch ofin America and it had a whole bunch ofin America and it had a whole bunch of things but it said chairman governmentthings but it said chairman governmentthings but it said chairman government employees insurance company so I askedemployees insurance company so I askedemployees insurance company so I asked the librarian uh how can I learn more
the librarian uh how can I learn morethe librarian uh how can I learn more about this I'd never taken any coursesabout this I'd never taken any coursesabout this I'd never taken any courses in insurance and he said well there'sin insurance and he said well there'sin insurance and he said well there's this big best manual if you read thatthis big best manual if you read thatthis big best manual if you read that you can find out about the company andyou can find out about the company andyou can find out about the company and there was one page on governmentthere was one page on governmentthere was one page on government employees insurance so that Saturday Iemployees insurance so that Saturday Iemployees insurance so that Saturday I got on the first train and they camegot on the first train and they camegot on the first train and they came came down to uh to Washington and I wentcame down to uh to Washington and I wentcame down to uh to Washington and I went to the headquarters of what was thento the headquarters of what was thento the headquarters of what was then called government employeescalled government employeescalled government employees insurance and to my total surprise theinsurance and to my total surprise theinsurance and to my total surprise the place was locked I mean people didn'tplace was locked I mean people didn'tplace was locked I mean people didn't work in people normal worked on Saturdaywork in people normal worked on Saturdaywork in people normal worked on Saturday people in Washington didn't seem to workpeople in Washington didn't seem to workpeople in Washington didn't seem to work on Saturday so I kept pounding on theon Saturday so I kept pounding on theon Saturday so I kept pounding on the door and finally a janitor came and Idoor and finally a janitor came and Idoor and finally a janitor came and I said to the janitor I said is theresaid to the janitor I said is theresaid to the janitor I said is there anybody here I can talk to except youanybody here I can talk to except youanybody here I can talk to except you now he didn't seem to get offended atnow he didn't seem to get offended atnow he didn't seem to get offended at that particular introduction so he saidthat particular introduction so he saidthat particular introduction so he said there's a follow up on the on the Ithere's a follow up on the on the Ithere's a follow up on the on the I think sixth floor and uh he's the only
think sixth floor and uh he's the onlythink sixth floor and uh he's the only one here and he was a man named Laurerone here and he was a man named Laurerone here and he was a man named Laurer Davidson and Laurer Davidson changed myDavidson and Laurer Davidson changed myDavidson and Laurer Davidson changed my life in a big way he was a wonderfullife in a big way he was a wonderfullife in a big way he was a wonderful wonderful man and uh uh he talked withwonderful man and uh uh he talked withwonderful man and uh uh he talked with me for maybe four hours on that Saturdayme for maybe four hours on that Saturdayme for maybe four hours on that Saturday and gave me an education like I'd neverand gave me an education like I'd neverand gave me an education like I'd never gotten in school and so you liked it sogotten in school and so you liked it sogotten in school and so you liked it so much you eventually bought the wholemuch you eventually bought the wholemuch you eventually bought the whole company right it's one of those thingscompany right it's one of those thingscompany right it's one of those things yeah it it took a few years so when youyeah it it took a few years so when youyeah it it took a few years so when you were starting your investmentwere starting your investmentwere starting your investment partnership I think you started aroundpartnership I think you started aroundpartnership I think you started around 1956 with a partnership that's correct1956 with a partnership that's correct1956 with a partnership that's correct right and as I understand it if somebodyright and as I understand it if somebodyright and as I understand it if somebody had put 10 ,000 in inhad put 10 ,000 in inhad put 10 ,000 in in 1956 and it stayed with you and and kept1956 and it stayed with you and and kept1956 and it stayed with you and and kept that stock that they could have gottenthat stock that they could have gottenthat stock that they could have gotten when you liquidated some of thewhen you liquidated some of thewhen you liquidated some of the Partnerships that 10,000 be worthPartnerships that 10,000 be worthPartnerships that 10,000 be worth roughly $500 million today that's aboutroughly $500 million today that's aboutroughly $500 million today that's about right wow yeah so those people are veryright wow yeah so those people are veryright wow yeah so those people are very grateful to you who did that right no I
grateful to you who did that right no Igrateful to you who did that right no I was grateful to them though I mean theywas grateful to them though I mean theywas grateful to them though I mean they they were betting on a 25-year-old youthey were betting on a 25-year-old youthey were betting on a 25-year-old you know who who looked about 20 and actedknow who who looked about 20 and actedknow who who looked about 20 and acted about 12 and then uh so I you know andabout 12 and then uh so I you know andabout 12 and then uh so I you know and actually they were mostly relatives Iactually they were mostly relatives Iactually they were mostly relatives I mean it's my father-in-law and sistermean it's my father-in-law and sistermean it's my father-in-law and sister and and and her husband my aunt so yourand and and her husband my aunt so yourand and and her husband my aunt so your investment partnership started youinvestment partnership started youinvestment partnership started you started buying companies and uh buyingstarted buying companies and uh buyingstarted buying companies and uh buying stocks and one of the companies youstocks and one of the companies youstocks and one of the companies you bought was Burkshire Hathaway and youbought was Burkshire Hathaway and youbought was Burkshire Hathaway and you though your company is now very famousthough your company is now very famousthough your company is now very famous it's named Burkshire hathway that wasit's named Burkshire hathway that wasit's named Burkshire hathway that was not one of your best investments was itnot one of your best investments was itnot one of your best investments was it it was really dumb yeah you yeah I meanit was really dumb yeah you yeah I meanit was really dumb yeah you yeah I mean it was it was what I call a I used toit was it was what I call a I used toit was it was what I call a I used to call Graham's approach on buying verycall Graham's approach on buying verycall Graham's approach on buying very cheap stocks that weren't very goodcheap stocks that weren't very goodcheap stocks that weren't very good companies cigar butts because you itcompanies cigar butts because you itcompanies cigar butts because you it would be like walking down the streetwould be like walking down the streetwould be like walking down the street and finding a cigar butt there was oneand finding a cigar butt there was one
and finding a cigar butt there was one puff left in and it didn't cost anythingpuff left in and it didn't cost anythingpuff left in and it didn't cost anything it was kind of disgusting but it didn'tit was kind of disgusting but it didn'tit was kind of disgusting but it didn't cost anything but I thought Burkshirecost anything but I thought Burkshirecost anything but I thought Burkshire haway was that kind of a companyhaway was that kind of a companyhaway was that kind of a company and it wasn't much of a puffand it wasn't much of a puffand it wasn't much of a puff eater well so you know your company'seater well so you know your company'seater well so you know your company's name Burkshire Hathaway you've sold thatname Burkshire Hathaway you've sold thatname Burkshire Hathaway you've sold that company many years ago did you evercompany many years ago did you evercompany many years ago did you ever think of changing the name no no I don'tthink of changing the name no no I don'tthink of changing the name no no I don't I don't do much of that okay so when youI don't do much of that okay so when youI don't do much of that okay so when you started originally you were buyingstarted originally you were buyingstarted originally you were buying stocks you picked stocks but then youstocks you picked stocks but then youstocks you picked stocks but then you started buying whole companies was thatstarted buying whole companies was thatstarted buying whole companies was that a different skill set and how did youa different skill set and how did youa different skill set and how did you learn to buy and operate these companieslearn to buy and operate these companieslearn to buy and operate these companies well when I buy 100 shares of XYZwell when I buy 100 shares of XYZwell when I buy 100 shares of XYZ company I I look at it as buying thecompany I I look at it as buying thecompany I I look at it as buying the whole company uh and so I've alwayswhole company uh and so I've alwayswhole company uh and so I've always looked at buying stocks as buyinglooked at buying stocks as buyinglooked at buying stocks as buying businesses so it really wasn't abusinesses so it really wasn't abusinesses so it really wasn't a different situation now I I couldn'tdifferent situation now I I couldn'tdifferent situation now I I couldn't resell it and I couldn't uh if I own theresell it and I couldn't uh if I own the
resell it and I couldn't uh if I own the stock I couldn't change managementsstock I couldn't change managementsstock I couldn't change managements which I could if I own the whole companywhich I could if I own the whole companywhich I could if I own the whole company but it was basically the same approachbut it was basically the same approachbut it was basically the same approach I'm a better in investor because I'm a aI'm a better in investor because I'm a aI'm a better in investor because I'm a a business person and I'm a betterbusiness person and I'm a betterbusiness person and I'm a better business person because I'm an investorbusiness person because I'm an investorbusiness person because I'm an investor they cross over well today Brookshirethey cross over well today Brookshirethey cross over well today Brookshire hathway has how many different companieshathway has how many different companieshathway has how many different companies that are part of the the got about 75that are part of the the got about 75that are part of the the got about 75 but some of those own more companies sobut some of those own more companies sobut some of those own more companies so it so you have 75 companies you haveit so you have 75 companies you haveit so you have 75 companies you have about uh 270,000 employees 200,000about uh 270,000 employees 200,000about uh 270,000 employees 200,000 270,000 employees how do you manage all270,000 employees how do you manage all270,000 employees how do you manage all that you have a very small office howthat you have a very small office howthat you have a very small office how many people do you have in your officemany people do you have in your officemany people do you have in your office managing all this well we're now up tomanaging all this well we're now up tomanaging all this well we're now up to 24 oh we're we're on one floor we're24 oh we're we're on one floor we're24 oh we're we're on one floor we're never going to leave one floor I I tellnever going to leave one floor I I tellnever going to leave one floor I I tell them they can to hire all the peoplethem they can to hire all the peoplethem they can to hire all the people they want but we're not going to leavethey want but we're not going to leavethey want but we're not going to leave one floor so if they want people sittingone floor so if they want people sittingone floor so if they want people sitting on their lab go to it you
on their lab go to it youon their lab go to it you know so you do you sit in your officeknow so you do you sit in your officeknow so you do you sit in your office during the day looking at new ideas forduring the day looking at new ideas forduring the day looking at new ideas for companies is that how you spend yourcompanies is that how you spend yourcompanies is that how you spend your time I I like to read a lot so I read atime I I like to read a lot so I read atime I I like to read a lot so I read a lot I read newspapers and I read alllot I read newspapers and I read alllot I read newspapers and I read all kinds of financial information and andkinds of financial information and andkinds of financial information and and basically I'm looking for one good ideabasically I'm looking for one good ideabasically I'm looking for one good idea a year and do people send you lettersa year and do people send you lettersa year and do people send you letters over the transom has any of those ideasover the transom has any of those ideasover the transom has any of those ideas ever worked occasionally but not notever worked occasionally but not notever worked occasionally but not not very often but I only need one a yearvery often but I only need one a yearvery often but I only need one a year here okay we're in June incidentallyhere okay we're in June incidentallyhere okay we're in June incidentally David if you want to help me out allDavid if you want to help me out allDavid if you want to help me out all right okay well we have a coupleright okay well we have a coupleright okay well we have a couple companies we like to sell to you butcompanies we like to sell to you butcompanies we like to sell to you but uh um you don't pay high prices but umuh um you don't pay high prices but umuh um you don't pay high prices but um um so in your office do you have aum so in your office do you have aum so in your office do you have a computer in your office that you not incomputer in your office that you not incomputer in your office that you not in my office but but uh other people in themy office but but uh other people in themy office but but uh other people in the office haveoffice haveoffice have them so I know you're not a famousthem so I know you're not a famousthem so I know you're not a famous technology person but do you have antechnology person but do you have antechnology person but do you have an iPad or do you do no internet things I
iPad or do you do no internet things IiPad or do you do no internet things I do internet things yeah I I love thedo internet things yeah I I love thedo internet things yeah I I love the internet I mean the Internet it's it'sinternet I mean the Internet it's it'sinternet I mean the Internet it's it's fascinating to me because uh it's it'sfascinating to me because uh it's it'sfascinating to me because uh it's it's probably affected my life you knowprobably affected my life you knowprobably affected my life you know almost as much as say Bill gags we havealmost as much as say Bill gags we havealmost as much as say Bill gags we have a when Bill and I appear togethera when Bill and I appear togethera when Bill and I appear together sometimes we we use the trick questionsometimes we we use the trick questionsometimes we we use the trick question of aside from email which one of us isof aside from email which one of us isof aside from email which one of us is on is is is on the computer more and theon is is is on the computer more and theon is is is on the computer more and the answer is me because you play bridge onanswer is me because you play bridge onanswer is me because you play bridge on theu I bridge on the internet and everytheu I bridge on the internet and everytheu I bridge on the internet and every every every night you spend yeah aevery every night you spend yeah aevery every night you spend yeah a couple hours a night and after all thesecouple hours a night and after all thesecouple hours a night and after all these years of doing it are you a champion noyears of doing it are you a champion noyears of doing it are you a champion no no I'm not even closeno I'm not even closeno I'm not even close uh I I just have a good time every youuh I I just have a good time every youuh I I just have a good time every you know it it's the most interesting game Iknow it it's the most interesting game Iknow it it's the most interesting game I found and do people know that they'refound and do people know that they'refound and do people know that they're playing with you over the internet I Edplaying with you over the internet I Edplaying with you over the internet I Ed the name T-Bone and that's it's gottenthe name T-Bone and that's it's gottenthe name T-Bone and that's it's gotten around that I am T-Bone yeah I used toaround that I am T-Bone yeah I used toaround that I am T-Bone yeah I used to put my age is 103 so when I did
put my age is 103 so when I didput my age is 103 so when I did something dumb people would say for asomething dumb people would say for asomething dumb people would say for a guy3 he not badguy3 he not badguy3 he not bad but so um you met over the years Billbut so um you met over the years Billbut so um you met over the years Bill Gates how did you first meet Bill whatGates how did you first meet Bill whatGates how did you first meet Bill what how did you first meet him I met him inhow did you first meet him I met him inhow did you first meet him I met him in on July 5th 1991 M Greenfield who someon July 5th 1991 M Greenfield who someon July 5th 1991 M Greenfield who some of the people probably knew had a had aof the people probably knew had a had aof the people probably knew had a had a house out in Banbridge Island out righthouse out in Banbridge Island out righthouse out in Banbridge Island out right there in Seattle and she'd call me inthere in Seattle and she'd call me inthere in Seattle and she'd call me in the late 80s and she said Warren do Ithe late 80s and she said Warren do Ithe late 80s and she said Warren do I love Seattle do I have enough money tolove Seattle do I have enough money tolove Seattle do I have enough money to buy a second place and I said Megbuy a second place and I said Megbuy a second place and I said Meg anybody that calls me and ask does haveanybody that calls me and ask does haveanybody that calls me and ask does have enough as the ones that don't call soenough as the ones that don't call soenough as the ones that don't call so she bought this house and she wanted toshe bought this house and she wanted toshe bought this house and she wanted to show it to me then in 1991 so actually Kshow it to me then in 1991 so actually Kshow it to me then in 1991 so actually K Graham I Raleigh Evans uh uh maybe oneGraham I Raleigh Evans uh uh maybe oneGraham I Raleigh Evans uh uh maybe one or two others went out there and andor two others went out there and andor two others went out there and and visited May and then Meg knew the seniorvisited May and then Meg knew the seniorvisited May and then Meg knew the senior Gates so she called up uh Bill seniorGates so she called up uh Bill seniorGates so she called up uh Bill senior and Mary Gates and said I've got thisand Mary Gates and said I've got thisand Mary Gates and said I've got this crew out here and could we drop down and
crew out here and could we drop down andcrew out here and could we drop down and Mary said fine and then Mary called upMary said fine and then Mary called upMary said fine and then Mary called up Bill and said uh Warren buff is comingBill and said uh Warren buff is comingBill and said uh Warren buff is coming down and would you like to come down hedown and would you like to come down hedown and would you like to come down he said hell no uh he said what do I havesaid hell no uh he said what do I havesaid hell no uh he said what do I have in common with that guy you know he hein common with that guy you know he hein common with that guy you know he he he doesn't understand technology youhe doesn't understand technology youhe doesn't understand technology you know he's hopeless and Mary was veryknow he's hopeless and Mary was veryknow he's hopeless and Mary was very determined and she said you know you'redetermined and she said you know you'redetermined and she said you know you're going to come Bill and so theygoing to come Bill and so theygoing to come Bill and so they negotiated a while and finally they gotnegotiated a while and finally they gotnegotiated a while and finally they got down to where he said he'd come down fordown to where he said he'd come down fordown to where he said he'd come down for I don't know an hour and 27 minutes orI don't know an hour and 27 minutes orI don't know an hour and 27 minutes or some of the and and he came down and wesome of the and and he came down and wesome of the and and he came down and we hit it off and we were still talking 10hit it off and we were still talking 10hit it off and we were still talking 10 hours later and we became good friendshours later and we became good friendshours later and we became good friends but he never convinced you to buybut he never convinced you to buybut he never convinced you to buy Microsoft stock or buy technologyMicrosoft stock or buy technologyMicrosoft stock or buy technology companies he didn't he didn't try to hecompanies he didn't he didn't try to hecompanies he didn't he didn't try to he tried to get me to use a computer didtried to get me to use a computer didtried to get me to use a computer did that work uh eventually uh uh when Ithat work uh eventually uh uh when Ithat work uh eventually uh uh when I learned I could play bridge on it I gotlearned I could play bridge on it I got
learned I could play bridge on it I got interested I still don't understand whatinterested I still don't understand whatinterested I still don't understand what happens with it though I mean I thoughthappens with it though I mean I thoughthappens with it though I mean I thought he originally said I'll get the mosthe originally said I'll get the mosthe originally said I'll get the most beautiful woman working at Microsoft andbeautiful woman working at Microsoft andbeautiful woman working at Microsoft and that's what he did but but but he wasthat's what he did but but but he wasthat's what he did but but but he was engaged to her so Melinda so it didn'tengaged to her so Melinda so it didn'tengaged to her so Melinda so it didn't work so as you got to know Bill betterwork so as you got to know Bill betterwork so as you got to know Bill better did he influence your views on how todid he influence your views on how todid he influence your views on how to make investments or influence your viewsmake investments or influence your viewsmake investments or influence your views ononon philanthropy I wouldn't say too much wephilanthropy I wouldn't say too much wephilanthropy I wouldn't say too much we we we have a group of maybe 50 peoplewe we have a group of maybe 50 peoplewe we have a group of maybe 50 people that started getting together in 1968 wethat started getting together in 1968 wethat started getting together in 1968 we meet every other year Don Graham whomeet every other year Don Graham whomeet every other year Don Graham who here tonight is as the buffet group yeahhere tonight is as the buffet group yeahhere tonight is as the buffet group yeah and and and at that at those meetings weand and and at that at those meetings weand and and at that at those meetings we would talk about various subjects andwould talk about various subjects andwould talk about various subjects and philanthropy was an important subject sophilanthropy was an important subject sophilanthropy was an important subject so uh I think it was maybe in 1993 oruh I think it was maybe in 1993 oruh I think it was maybe in 1993 or something like that we had a meeting uhsomething like that we had a meeting uhsomething like that we had a meeting uh I think it was in Ireland at that timeI think it was in Ireland at that timeI think it was in Ireland at that time and and I actually brought along theand and I actually brought along the
and and I actually brought along the gospel of wealth for everybody to readgospel of wealth for everybody to readgospel of wealth for everybody to read we discussed it then but so our thinkingwe discussed it then but so our thinkingwe discussed it then but so our thinking sort of evolved uh together in a way butsort of evolved uh together in a way butsort of evolved uh together in a way but have you um ever regretted not gettinghave you um ever regretted not gettinghave you um ever regretted not getting involved in giving away money earlier ininvolved in giving away money earlier ininvolved in giving away money earlier in your life or you've done my my wifeyour life or you've done my my wifeyour life or you've done my my wife regretted that she thought I should sheregretted that she thought I should sheregretted that she thought I should she liked the idea of giving away we bothliked the idea of giving away we bothliked the idea of giving away we both agreed on giving away all the money Iagreed on giving away all the money Iagreed on giving away all the money I mean that that once we had everything wemean that that once we had everything wemean that that once we had everything we wanted and we've had everything wewanted and we've had everything wewanted and we've had everything we wanted I mean it it it uh you know itwanted I mean it it it uh you know itwanted I mean it it it uh you know it the Surplus wealth I have has no utilitythe Surplus wealth I have has no utilitythe Surplus wealth I have has no utility to me it has all kinds of utility to theto me it has all kinds of utility to theto me it has all kinds of utility to the rest of the world if used properly sorest of the world if used properly sorest of the world if used properly so and we agreed on that early she wouldand we agreed on that early she wouldand we agreed on that early she would have liked the idea of giving away morehave liked the idea of giving away morehave liked the idea of giving away more of it earlier and I I felt that I wasof it earlier and I I felt that I wasof it earlier and I I felt that I was going to be a better compounding machinegoing to be a better compounding machinegoing to be a better compounding machine than than than most places and thatthan than than most places and thatthan than than most places and that there would be a whole lot more to givethere would be a whole lot more to give
there would be a whole lot more to give away later on so I told her I'll pile itaway later on so I told her I'll pile itaway later on so I told her I'll pile it up and you UNP it you know all right nowup and you UNP it you know all right nowup and you UNP it you know all right now your father was a very conservativeyour father was a very conservativeyour father was a very conservative Republican congressman and you wereRepublican congressman and you wereRepublican congressman and you were probably a liberal Democrat is that aprobably a liberal Democrat is that aprobably a liberal Democrat is that a fair well yeah I would but I was I wasfair well yeah I would but I was I wasfair well yeah I would but I was I was always very conservative back you werealways very conservative back you werealways very conservative back you were conservative or when he was alive andconservative or when he was alive andconservative or when he was alive and then you later moved further to the leftthen you later moved further to the leftthen you later moved further to the left and would you fair it's fair to sayand would you fair it's fair to sayand would you fair it's fair to say you're a liberal Democrat now or yeahyou're a liberal Democrat now or yeahyou're a liberal Democrat now or yeah but I'm not a card gearing Democrat Ibut I'm not a card gearing Democrat Ibut I'm not a card gearing Democrat I support certain Republicans and I havesupport certain Republicans and I havesupport certain Republicans and I have and and actually sure gives some moneyand and actually sure gives some moneyand and actually sure gives some money to a republican congressman and uhto a republican congressman and uhto a republican congressman and uh you've become famous recently inyou've become famous recently inyou've become famous recently in Washington for among other things theWashington for among other things theWashington for among other things the buffet rule which says that uh people Ibuffet rule which says that uh people Ibuffet rule which says that uh people I guess tax rat should be at least as highguess tax rat should be at least as highguess tax rat should be at least as high as their secretaries yeah in terms ofas their secretaries yeah in terms ofas their secretaries yeah in terms of the aggregate of payroll and and andthe aggregate of payroll and and andthe aggregate of payroll and and and income taxes I I couldn't get a disease
income taxes I I couldn't get a diseaseincome taxes I I couldn't get a disease named after me so I had to settle for anamed after me so I had to settle for anamed after me so I had to settle for a tax I and have any of your friendstax I and have any of your friendstax I and have any of your friends suggested that you compensate yoursuggested that you compensate yoursuggested that you compensate your secretary uh in capital gains kind ofsecretary uh in capital gains kind ofsecretary uh in capital gains kind of thing so she could pay a lower ratething so she could pay a lower ratething so she could pay a lower rate she's been suggesting that lately yeahshe's been suggesting that lately yeahshe's been suggesting that lately yeah right yeah yeah she's always on theright yeah yeah she's always on theright yeah yeah she's always on the phone with some Tax Advisor now thephone with some Tax Advisor now thephone with some Tax Advisor now the interesting thing is people haveinteresting thing is people haveinteresting thing is people have speculated about how much money she madespeculated about how much money she madespeculated about how much money she made but the tax rate actually above $16,000but the tax rate actually above $16,000but the tax rate actually above $16,000 for most people goes down if you takefor most people goes down if you takefor most people goes down if you take the aggre the payroll and income taxesthe aggre the payroll and income taxesthe aggre the payroll and income taxes because the the payroll tax is the mostbecause the the payroll tax is the mostbecause the the payroll tax is the most regressive of all and quits at thatregressive of all and quits at thatregressive of all and quits at that point and uh so actually between say 106point and uh so actually between say 106point and uh so actually between say 106 and 200 in most cases the rate would beand 200 in most cases the rate would beand 200 in most cases the rate would be down down well your financial Acumen isdown down well your financial Acumen isdown down well your financial Acumen is pretty well known so we now have in ourpretty well known so we now have in ourpretty well known so we now have in our country $5.5 trillion dollars of debt incountry $5.5 trillion dollars of debt incountry $5.5 trillion dollars of debt in our federal government and one trillionour federal government and one trillion
our federal government and one trillion a year or so adding up um what would youa year or so adding up um what would youa year or so adding up um what would you do if you were able to wave a wand anddo if you were able to wave a wand anddo if you were able to wave a wand and try to fix our debt problem or deficittry to fix our debt problem or deficittry to fix our debt problem or deficit problem well I I think I would do whatproblem well I I think I would do whatproblem well I I think I would do what everybody in this room could do uh Ieverybody in this room could do uh Ieverybody in this room could do uh I mean if if you ask everybody here howmean if if you ask everybody here howmean if if you ask everybody here how much the federal government should bemuch the federal government should bemuch the federal government should be raising annually over or in aggregateraising annually over or in aggregateraising annually over or in aggregate over the next 10 years the answers wouldover the next 10 years the answers wouldover the next 10 years the answers would come in somewhere between 185 and 19.5%come in somewhere between 185 and 19.5%come in somewhere between 185 and 19.5% which is close to what's been thewhich is close to what's been thewhich is close to what's been the situation since World War II if you asksituation since World War II if you asksituation since World War II if you ask them how much the government should bethem how much the government should bethem how much the government should be spending they they probably come in atspending they they probably come in atspending they they probably come in at 21% some come in 20 and a half or 21 and21% some come in 20 and a half or 21 and21% some come in 20 and a half or 21 and a half there's and incidentally you cana half there's and incidentally you cana half there's and incidentally you can have a two percentage Point deficithave a two percentage Point deficithave a two percentage Point deficit relative to GDP and and the debt to GDPrelative to GDP and and the debt to GDPrelative to GDP and and the debt to GDP will not grow I mean in fact it probablywill not grow I mean in fact it probablywill not grow I mean in fact it probably will shrink Just a Touch so you can havewill shrink Just a Touch so you can havewill shrink Just a Touch so you can have a couple percent deficits on averagea couple percent deficits on average
a couple percent deficits on average and I would take the plan that 90% ofand I would take the plan that 90% ofand I would take the plan that 90% of the people here would come up with tothe people here would come up with tothe people here would come up with to get to that 19% of Revenue and or to getget to that 19% of Revenue and or to getget to that 19% of Revenue and or to get to 21% it can be Simpson bowls it can beto 21% it can be Simpson bowls it can beto 21% it can be Simpson bowls it can be a bunch of different things and no one'sa bunch of different things and no one'sa bunch of different things and no one's going to agree 100% on every point butgoing to agree 100% on every point butgoing to agree 100% on every point but we do I think we do agree on the factwe do I think we do agree on the factwe do I think we do agree on the fact that we probably should be raising 18that we probably should be raising 18that we probably should be raising 18 and a half to 19% and we should beand a half to 19% and we should beand a half to 19% and we should be spending 21 or their abouts and thatspending 21 or their abouts and thatspending 21 or their abouts and that means it means getting more from taxesmeans it means getting more from taxesmeans it means getting more from taxes and it means cutting expenditures andand it means cutting expenditures andand it means cutting expenditures and the problem is that you know the thethe problem is that you know the thethe problem is that you know the the Democrats don't want to talk about whatDemocrats don't want to talk about whatDemocrats don't want to talk about what expenditures they would cut and and theexpenditures they would cut and and theexpenditures they would cut and and the Republicans don't want to talk aboutRepublicans don't want to talk aboutRepublicans don't want to talk about increasing revenues so would you wouldincreasing revenues so would you wouldincreasing revenues so would you would be in favor of increasing the thebe in favor of increasing the thebe in favor of increasing the the capital gains tax or no yeah I would I Icapital gains tax or no yeah I would I Icapital gains tax or no yeah I would I I would be in favor of that but but we canwould be in favor of that but but we canwould be in favor of that but but we can come to we're raising we'll say you knowcome to we're raising we'll say you knowcome to we're raising we'll say you know 2.4 2.5 trillion now we have to raise
2.4 2.5 trillion now we have to raise2.4 2.5 trillion now we have to raise you know probably three or 400 billionyou know probably three or 400 billionyou know probably three or 400 billion more than that and that can be done Imore than that and that can be done Imore than that and that can be done I mean we've done it straight through Imean we've done it straight through Imean we've done it straight through I mean I operated under all kinds of taxmean I operated under all kinds of taxmean I operated under all kinds of tax rates including 39.6% on capital gainsrates including 39.6% on capital gainsrates including 39.6% on capital gains and the country has growing under alland the country has growing under alland the country has growing under all these circum our country Works uh butthese circum our country Works uh butthese circum our country Works uh but somebody has to step up and say where itsomebody has to step up and say where itsomebody has to step up and say where it comes from it won't come from justcomes from it won't come from justcomes from it won't come from just talking about reform doesn't solvetalking about reform doesn't solvetalking about reform doesn't solve anything on either the expenditure sideanything on either the expenditure sideanything on either the expenditure side or the revenue side I mean you've got toor the revenue side I mean you've got toor the revenue side I mean you've got to get specific about it and and like Iget specific about it and and like Iget specific about it and and like I said I would I'll bet if everybody insaid I would I'll bet if everybody insaid I would I'll bet if everybody in this room designed a plan I could signthis room designed a plan I could signthis room designed a plan I could sign on to 90% of them and um today uh theon to 90% of them and um today uh theon to 90% of them and um today uh the economy in the United States is thoughteconomy in the United States is thoughteconomy in the United States is thought to be growing about 2 and a half% a yearto be growing about 2 and a half% a yearto be growing about 2 and a half% a year do you agree with that do you thinkdo you agree with that do you thinkdo you agree with that do you think there's any chance of a recession in thethere's any chance of a recession in thethere's any chance of a recession in the near term I think it's very lownear term I think it's very low
near term I think it's very low unless unless events in Europe developunless unless events in Europe developunless unless events in Europe develop in some way that that spill over herein some way that that spill over herein some way that that spill over here big time uh butbig time uh butbig time uh but incidentally if the economy grows 2% aincidentally if the economy grows 2% aincidentally if the economy grows 2% a year and population grows 1% a year thatyear and population grows 1% a year thatyear and population grows 1% a year that means each generation is living 20%means each generation is living 20%means each generation is living 20% better than the generation before and itbetter than the generation before and itbetter than the generation before and it means in a century people are livingmeans in a century people are livingmeans in a century people are living three times as well as they lived at thethree times as well as they lived at thethree times as well as they lived at the start of the century so so right I meanstart of the century so so right I meanstart of the century so so right I mean our our our rates of gain in the wayour our our rates of gain in the wayour our our rates of gain in the way people live has have been dramatic in mypeople live has have been dramatic in mypeople live has have been dramatic in my lifetime I was born in 1930 there's sixlifetime I was born in 1930 there's sixlifetime I was born in 1930 there's six times the real GDP per capita as when Itimes the real GDP per capita as when Itimes the real GDP per capita as when I was born six times in one person's lifewas born six times in one person's lifewas born six times in one person's life time we have a system that works uh Itime we have a system that works uh Itime we have a system that works uh I mean and it'll keep working you know itmean and it'll keep working you know itmean and it'll keep working you know it may not work at six times for the nextmay not work at six times for the nextmay not work at six times for the next 80 years but it'll work it'll be two and80 years but it'll work it'll be two and80 years but it'll work it'll be two and a half times or three times now are youa half times or three times now are youa half times or three times now are you worried about the Euro going away do youworried about the Euro going away do youworried about the Euro going away do you think Europe would allow the to go away
think Europe would allow the to go awaythink Europe would allow the to go away or that's the big question I mean youor that's the big question I mean youor that's the big question I mean you know Lincoln said that you know Houseknow Lincoln said that you know Houseknow Lincoln said that you know House Divided cannot stand and half slave halfDivided cannot stand and half slave halfDivided cannot stand and half slave half free wouldn't work and we've got afree wouldn't work and we've got afree wouldn't work and we've got a system where it's they're half in andsystem where it's they're half in andsystem where it's they're half in and half out I mean they're in on commonhalf out I mean they're in on commonhalf out I mean they're in on common currency and they're not in on commoncurrency and they're not in on commoncurrency and they're not in on common fiscal policy or common culture orfiscal policy or common culture orfiscal policy or common culture or common labor practices and that housecommon labor practices and that housecommon labor practices and that house will fall but that doesn't mean it haswill fall but that doesn't mean it haswill fall but that doesn't mean it has to and that it means that they have toto and that it means that they have toto and that it means that they have to they have to reconcile some of thesethey have to reconcile some of thesethey have to reconcile some of these things it can't be half slave half freethings it can't be half slave half freethings it can't be half slave half free now you invest most of your money Inow you invest most of your money Inow you invest most of your money I guess in the United States yeah have youguess in the United States yeah have youguess in the United States yeah have you increasingly been investing outsideincreasingly been investing outsideincreasingly been investing outside particularly in the Emerging Markets orparticularly in the Emerging Markets orparticularly in the Emerging Markets or you're not as comfortable investing inyou're not as comfortable investing inyou're not as comfortable investing in the Emerging Market I'm I'm comfortablethe Emerging Market I'm I'm comfortablethe Emerging Market I'm I'm comfortable in any place I understand the businessin any place I understand the businessin any place I understand the business well and to some extent the rules thatwell and to some extent the rules that
well and to some extent the rules that they operate in and where I've got thethey operate in and where I've got thethey operate in and where I've got the right management and so I we will buy aright management and so I we will buy aright management and so I we will buy a business you know in any one of 40business you know in any one of 40business you know in any one of 40 countries tomorrow if it's the rightcountries tomorrow if it's the rightcountries tomorrow if it's the right kind of business uh but most businesseskind of business uh but most businesseskind of business uh but most businesses I hear about are in the United StatesI hear about are in the United StatesI hear about are in the United States they think of Berkshire here we're notthey think of Berkshire here we're notthey think of Berkshire here we're not we're on the radar screen here to awe're on the radar screen here to awe're on the radar screen here to a greater extent than around the world sogreater extent than around the world sogreater extent than around the world so I understand it's somebody somebody fromI understand it's somebody somebody fromI understand it's somebody somebody from Israel sent you a letter over theIsrael sent you a letter over theIsrael sent you a letter over the transom a one and a half page letter andtransom a one and a half page letter andtransom a one and a half page letter and you ultimately bought that company thatyou ultimately bought that company thatyou ultimately bought that company that person was talking about for four plusperson was talking about for four plusperson was talking about for four plus billion that we bought 80% of it for 4billion that we bought 80% of it for 4billion that we bought 80% of it for 4 billion and and he wanted me to go seebillion and and he wanted me to go seebillion and and he wanted me to go see it he told me what a wonderful placeit he told me what a wonderful placeit he told me what a wonderful place plant he had and everything and I saidplant he had and everything and I saidplant he had and everything and I said I'm not going to go see you know I don'tI'm not going to go see you know I don'tI'm not going to go see you know I don't go to I don't go to Iowa you know as fargo to I don't go to Iowa you know as fargo to I don't go to Iowa you know as far as that's concerned and he said no thatas that's concerned and he said no that
as that's concerned and he said no that he said you've never seen a plant likehe said you've never seen a plant likehe said you've never seen a plant like this and I said Aon I said you know Ithis and I said Aon I said you know Ithis and I said Aon I said you know I love your business I love you you knowlove your business I love you you knowlove your business I love you you know I'll give you $4 billion but I'm notI'll give you $4 billion but I'm notI'll give you $4 billion but I'm not going to I'm not going to go to you knowgoing to I'm not going to go to you knowgoing to I'm not going to go to you know I got to start Crossing oceans orI got to start Crossing oceans orI got to start Crossing oceans or anything crazy like that so he said wellanything crazy like that so he said wellanything crazy like that so he said well if you buy The Bu business will you comeif you buy The Bu business will you comeif you buy The Bu business will you come and I said yes so we bought the businessand I said yes so we bought the businessand I said yes so we bought the business and then I went to Israel and it wasand then I went to Israel and it wasand then I went to Israel and it was everything he said and he was veryeverything he said and he was veryeverything he said and he was very pleased and I said yes I said if I'dpleased and I said yes I said if I'dpleased and I said yes I said if I'd seen this thing I'd have paid you moremoney that's why I don't go visitmoney that's why I don't go visitmoney that's why I don't go visit businesses so what about China do youbusinesses so what about China do youbusinesses so what about China do you invest much there you go to China veryinvest much there you go to China veryinvest much there you go to China very much we've had we've had a too big in Imuch we've had we've had a too big in Imuch we've had we've had a too big in I was sitting in 2002 or 2003 reading thewas sitting in 2002 or 2003 reading thewas sitting in 2002 or 2003 reading the report of pet China and it wasreport of pet China and it wasreport of pet China and it was fortunately it was in English and I uhfortunately it was in English and I uhfortunately it was in English and I uh put about $500 million into petfordput about $500 million into petfordput about $500 million into petford China the government of China ownedChina the government of China ownedChina the government of China owned about 90% of it we owned 1.3% so between
about 90% of it we owned 1.3% so betweenabout 90% of it we owned 1.3% so between the two of us we control thethe two of us we control thethe two of us we control the company the uh and we made quite a bitcompany the uh and we made quite a bitcompany the uh and we made quite a bit of money out it it was a very very cheapof money out it it was a very very cheapof money out it it was a very very cheap company I mean one of the huge oilcompany I mean one of the huge oilcompany I mean one of the huge oil companies in the world the whole companycompanies in the world the whole companycompanies in the world the whole company was selling for 35 billion in the marketwas selling for 35 billion in the marketwas selling for 35 billion in the market and that was ridiculous now one of yourand that was ridiculous now one of yourand that was ridiculous now one of your most famous Investments is Coca-Colamost famous Investments is Coca-Colamost famous Investments is Coca-Cola Cola you bought it relatively cheaplyCola you bought it relatively cheaplyCola you bought it relatively cheaply it's very good for you everybody and nowit's very good for you everybody and nowit's very good for you everybody and now when you I don't care whether you drinkwhen you I don't care whether you drinkwhen you I don't care whether you drink it just pour it on your neighbor butit just pour it on your neighbor butit just pour it on your neighbor but open theopen theopen the can now when you were a young boy youcan now when you were a young boy youcan now when you were a young boy you you were addicted I was told to Pepsiyou were addicted I was told to Pepsiyou were addicted I was told to Pepsi how did you switch to Coke well I Ihow did you switch to Coke well I Ihow did you switch to Coke well I I would like to say of course that I justwould like to say of course that I justwould like to say of course that I just finally grew up and when I was a kidfinally grew up and when I was a kidfinally grew up and when I was a kid Pepsi was 12 ounces for a nickel andPepsi was 12 ounces for a nickel andPepsi was 12 ounces for a nickel and Coke was 6 and half ounces for a nickelCoke was 6 and half ounces for a nickelCoke was 6 and half ounces for a nickel and if you have any insights into myand if you have any insights into myand if you have any insights into my personality or not which Ipersonality or not which I
personality or not which I bought so of the Investments you've madebought so of the Investments you've madebought so of the Investments you've made over the years at Berkshire hey whichover the years at Berkshire hey whichover the years at Berkshire hey which one would you say was the single bestone would you say was the single bestone would you say was the single best investment is there one that you reallyinvestment is there one that you reallyinvestment is there one that you really are most proud of well the the one I'mare most proud of well the the one I'mare most proud of well the the one I'm probably the most emotionally attachedprobably the most emotionally attachedprobably the most emotionally attached to is Geico becauseto is Geico becauseto is Geico because of a bunch of reasons but it goes backof a bunch of reasons but it goes backof a bunch of reasons but it goes back to a day in January of 1951 a Saturdayto a day in January of 1951 a Saturdayto a day in January of 1951 a Saturday and andand andand and that what Laura Davidson did for methat what Laura Davidson did for methat what Laura Davidson did for me changed my life and they didn't have tochanged my life and they didn't have tochanged my life and they didn't have to do it I mean I walked in there as somedo it I mean I walked in there as somedo it I mean I walked in there as some 20-year-old kid on a on a Saturday and20-year-old kid on a on a Saturday and20-year-old kid on a on a Saturday and he he spent four hours educating me andhe he spent four hours educating me andhe he spent four hours educating me and then he became a friend for life andthen he became a friend for life andthen he became a friend for life and then subsequent people are Jack burn andthen subsequent people are Jack burn andthen subsequent people are Jack burn and and Tony nicely who here tonight I meanand Tony nicely who here tonight I meanand Tony nicely who here tonight I mean it's it's it's just been a wonderfulit's it's it's just been a wonderfulit's it's it's just been a wonderful Association whether we made any money orAssociation whether we made any money orAssociation whether we made any money or not but we but we've done pretty well onnot but we but we've done pretty well onnot but we but we've done pretty well on the investment too but it beyond that itthe investment too but it beyond that itthe investment too but it beyond that it it it has a special meaning to me are
it it has a special meaning to me areit it has a special meaning to me are there Investments that you really wishthere Investments that you really wishthere Investments that you really wish you had never done what's your worstyou had never done what's your worstyou had never done what's your worst investment I made a lot of terribleinvestment I made a lot of terribleinvestment I made a lot of terrible deals uh and the worst it's it's hard todeals uh and the worst it's it's hard todeals uh and the worst it's it's hard to probably the worst deal will be one Iprobably the worst deal will be one Iprobably the worst deal will be one I make in the future but the uh themake in the future but the uh themake in the future but the uh the current title I I I bought a company andcurrent title I I I bought a company andcurrent title I I I bought a company and and and inent I did it I mean we do notand and inent I did it I mean we do notand and inent I did it I mean we do not have uh PowerPoints around or peoplehave uh PowerPoints around or peoplehave uh PowerPoints around or people explaining this stuff to me I just goexplaining this stuff to me I just goexplaining this stuff to me I just go out and do them and we we bought aout and do them and we we bought aout and do them and we we bought a company uh called Dexter shoe Georgecompany uh called Dexter shoe Georgecompany uh called Dexter shoe George Mitchell's here tonight he knows theMitchell's here tonight he knows theMitchell's here tonight he knows the company and we paid $400 million for itcompany and we paid $400 million for itcompany and we paid $400 million for it uh which went to zero but we paid 400uh which went to zero but we paid 400uh which went to zero but we paid 400 million in stock and the stock we gavemillion in stock and the stock we gavemillion in stock and the stock we gave up is probably worth maybe three or fourup is probably worth maybe three or fourup is probably worth maybe three or four billion today so whenever Burkshire goesbillion today so whenever Burkshire goesbillion today so whenever Burkshire goes down I feel better about that deal Idown I feel better about that deal Idown I feel better about that deal I meanmeanmean my what about the deals you passed onmy what about the deals you passed onmy what about the deals you passed on are you famously passed on Intel when itare you famously passed on Intel when it
are you famously passed on Intel when it was getting started I thought and otherwas getting started I thought and otherwas getting started I thought and other yeah I knew Bob Bob noise pretty wellyeah I knew Bob Bob noise pretty wellyeah I knew Bob Bob noise pretty well and we bought it we bought the convertsand we bought it we bought the convertsand we bought it we bought the converts when they were private were just uhwhen they were private were just uhwhen they were private were just uh because of Bob we bought them at granalbecause of Bob we bought them at granalbecause of Bob we bought them at granal college and and the endom grenal Collegecollege and and the endom grenal Collegecollege and and the endom grenal College went from 8 million to to a billionwent from 8 million to to a billionwent from 8 million to to a billion dollars in about 12 or 14 years so anddollars in about 12 or 14 years so anddollars in about 12 or 14 years so and Intel Intel was a help on that but I youIntel Intel was a help on that but I youIntel Intel was a help on that but I you know in theknow in theknow in the end I don't worry about things I don'tend I don't worry about things I don'tend I don't worry about things I don't understand I mean I think it was Tomunderstand I mean I think it was Tomunderstand I mean I think it was Tom Watson senior said I'm no genius but I'mWatson senior said I'm no genius but I'mWatson senior said I'm no genius but I'm smart in spots and I stay around thosesmart in spots and I stay around thosesmart in spots and I stay around those spots you know and that there's a lot tospots you know and that there's a lot tospots you know and that there's a lot to that and knowing your circle ofthat and knowing your circle ofthat and knowing your circle of competence is where that perimeter is iscompetence is where that perimeter is iscompetence is where that perimeter is is enormously important and you know theenormously important and you know theenormously important and you know the fact that there all there's all kinds offact that there all there's all kinds offact that there all there's all kinds of things things I can't do and there'sthings things I can't do and there'sthings things I can't do and there's plenty of companies I can't analyze butplenty of companies I can't analyze butplenty of companies I can't analyze but I don't have to worry about that of all
I don't have to worry about that of allI don't have to worry about that of all the companies you bought maybe the onethe companies you bought maybe the onethe companies you bought maybe the one that bought you brought you the mostthat bought you brought you the mostthat bought you brought you the most trouble was Salam and when you bought ittrouble was Salam and when you bought ittrouble was Salam and when you bought it at one point it was almost uh in effectat one point it was almost uh in effectat one point it was almost uh in effect put into bankruptcy and you had to goput into bankruptcy and you had to goput into bankruptcy and you had to go and run the company was that the mostand run the company was that the mostand run the company was that the most difficult experience you had atdifficult experience you had atdifficult experience you had at Berkshire haway I would say thatBerkshire haway I would say thatBerkshire haway I would say that probably was yeah that was I was thereprobably was yeah that was I was thereprobably was yeah that was I was there CEO for nine months and four days and itCEO for nine months and four days and itCEO for nine months and four days and it was 20 years ago I think I rememberwas 20 years ago I think I rememberwas 20 years ago I think I remember every day ofevery day ofevery day of it so um today when you have all theseit so um today when you have all theseit so um today when you have all these manag just running your 75 differentmanag just running your 75 differentmanag just running your 75 different companies do they call you every day andcompanies do they call you every day andcompanies do they call you every day and say I got this problem or that problemsay I got this problem or that problemsay I got this problem or that problem or how often do you talk to them no ifor how often do you talk to them no ifor how often do you talk to them no if they need to call me they're in troublethey need to call me they're in troublethey need to call me they're in trouble they I mean I I we buy businesses wherethey I mean I I we buy businesses wherethey I mean I I we buy businesses where the managers come with them and and uhthe managers come with them and and uhthe managers come with them and and uh um there are some managers that I don'tum there are some managers that I don'tum there are some managers that I don't talk to once a year and there's one I
talk to once a year and there's one Italk to once a year and there's one I talk to almost every day uh but uh aftertalk to almost every day uh but uh aftertalk to almost every day uh but uh after the one that I talk to almost every daythe one that I talk to almost every daythe one that I talk to almost every day I would say the next most the highestI would say the next most the highestI would say the next most the highest frequency it would be maybe once a weekfrequency it would be maybe once a weekfrequency it would be maybe once a week uh but they always call call me I don'tuh but they always call call me I don'tuh but they always call call me I don't call them now when you want to make ancall them now when you want to make ancall them now when you want to make an investment um you have a board ofinvestment um you have a board ofinvestment um you have a board of directors do you ever ask them uh I'vedirectors do you ever ask them uh I'vedirectors do you ever ask them uh I've heard that you will buy a railroad forheard that you will buy a railroad forheard that you will buy a railroad for 20 some billion and not tell your board20 some billion and not tell your board20 some billion and not tell your board of directors I told a few of them few ofof directors I told a few of them few ofof directors I told a few of them few of them okay that was an exception uh thatthem okay that was an exception uh thatthem okay that was an exception uh that I told them not that the no the part ofI told them not that the no the part ofI told them not that the no the part of part of why we're able to make deals ispart of why we're able to make deals ispart of why we're able to make deals is because we we can act fast they know webecause we we can act fast they know webecause we we can act fast they know we have the money they know we'll do thehave the money they know we'll do thehave the money they know we'll do the deal we closed on October 6th 2008 on adeal we closed on October 6th 2008 on adeal we closed on October 6th 2008 on a $65 billion doll investment in Wrigley$65 billion doll investment in Wrigley$65 billion doll investment in Wrigley in in conjunction with Mars and theyin in conjunction with Mars and theyin in conjunction with Mars and they knew we would have the 6 and A5 billionknew we would have the 6 and A5 billionknew we would have the 6 and A5 billion and that we would close on that day
and that we would close on that dayand that we would close on that day people weren't closing on anything sopeople weren't closing on anything sopeople weren't closing on anything so it's it's it's a realit's it's it's a realit's it's it's a real advantage to be able to pull the triggeradvantage to be able to pull the triggeradvantage to be able to pull the trigger and and and one and if we have to goand and and one and if we have to goand and and one and if we have to go through lots of presentations andthrough lots of presentations andthrough lots of presentations and everything I mean I I've been on 19everything I mean I I've been on 19everything I mean I I've been on 19 corporate boards and you know every dealcorporate boards and you know every dealcorporate boards and you know every deal works on the PowerPoint you know and andworks on the PowerPoint you know and andworks on the PowerPoint you know and and so it it it it's a show and tell typeso it it it it's a show and tell typeso it it it it's a show and tell type thing and I don't I don't reallything and I don't I don't reallything and I don't I don't really participate in it so um recently cameparticipate in it so um recently cameparticipate in it so um recently came out in court uh discussion that uh theout in court uh discussion that uh theout in court uh discussion that uh the insider trading thing that's going oninsider trading thing that's going oninsider trading thing that's going on relating to investment you had made inrelating to investment you had made inrelating to investment you had made in Goldman right um it came out that youGoldman right um it came out that youGoldman right um it came out that you had set the deal and you told thehad set the deal and you told thehad set the deal and you told the investment banker this is the deal andinvestment banker this is the deal andinvestment banker this is the deal and they had to get back to you but you saidthey had to get back to you but you saidthey had to get back to you but you said don't call for a few hours becausedon't call for a few hours becausedon't call for a few hours because you're going to Dairy Queen with youryou're going to Dairy Queen with youryou're going to Dairy Queen with your grandchildren is that right you yougrandchildren is that right you yougrandchildren is that right you you didn't want to be disturbed on a dealdidn't want to be disturbed on a deal
didn't want to be disturbed on a deal well I just I I knew what I would do andwell I just I I knew what I would do andwell I just I I knew what I would do and I told them what I would do and if theyI told them what I would do and if theyI told them what I would do and if they wanted to do it fine if they didn't wantwanted to do it fine if they didn't wantwanted to do it fine if they didn't want to do it fine I mean we we we don'tto do it fine I mean we we we don'tto do it fine I mean we we we don't really negotiate at at at Berkshire it'sreally negotiate at at at Berkshire it'sreally negotiate at at at Berkshire it's just I don't have enough time you knowjust I don't have enough time you knowjust I don't have enough time you know to spend the rest of my life you knowto spend the rest of my life you knowto spend the rest of my life you know negotiating with people so I tell themnegotiating with people so I tell themnegotiating with people so I tell them what I'll do and and if it works fine ifwhat I'll do and and if it works fine ifwhat I'll do and and if it works fine if it doesn't work fine then now umit doesn't work fine then now umit doesn't work fine then now um famously people wonder who will be yourfamously people wonder who will be yourfamously people wonder who will be your successor and I wonder if tonight yousuccessor and I wonder if tonight yousuccessor and I wonder if tonight you wanted to give us any insights into thatwanted to give us any insights into thatwanted to give us any insights into that well I have left the director's of Ouijawell I have left the director's of Ouijawell I have left the director's of Ouija board and I plan to keep in contact withthem I don't want to disappoint you butthem I don't want to disappoint you butthem I don't want to disappoint you but you're not on the short listyou're not on the short listyou're not on the short list [Laughter]David um can I be on the longDavid um can I be on the longDavid um can I be on the long list so um we're we're we're in perfectlist so um we're we're we're in perfectlist so um we're we're we're in perfect shape for it though I will say that weshape for it though I will say that weshape for it though I will say that we we've got we've got successors that thatwe've got we've got successors that thatwe've got we've got successors that that in most ways are better than I am butin most ways are better than I am but
in most ways are better than I am but you expect that Berkshire will be aroundyou expect that Berkshire will be aroundyou expect that Berkshire will be around for 20 30 40 years forever it's it'sfor 20 30 40 years forever it's it'sfor 20 30 40 years forever it's it's it's built to be forever it it it has ait's built to be forever it it it has ait's built to be forever it it it has a special culture it has directors who arespecial culture it has directors who arespecial culture it has directors who are committed to that it has managers itcommitted to that it has managers itcommitted to that it has managers it would we have an organization wouldwould we have an organization wouldwould we have an organization would reject anybody that tried to tamper withreject anybody that tried to tamper withreject anybody that tried to tamper with that culture and and I think it it isthat culture and and I think it it isthat culture and and I think it it is special and it can stay special so todayspecial and it can stay special so todayspecial and it can stay special so today having achieved all that you havehaving achieved all that you havehaving achieved all that you have achieved you've got the admiration ofachieved you've got the admiration ofachieved you've got the admiration of virtually everybody in the world forvirtually everybody in the world forvirtually everybody in the world for what you've done what kind of motivateswhat you've done what kind of motivateswhat you've done what kind of motivates you to keep going uh what are youryou to keep going uh what are youryou to keep going uh what are your aspirations of the next five years or soaspirations of the next five years or soaspirations of the next five years or so I'm having the time of my life I mean II'm having the time of my life I mean II'm having the time of my life I mean I get to do every day exactly what I likeget to do every day exactly what I likeget to do every day exactly what I like to do with people who I love and whoto do with people who I love and whoto do with people who I love and who seem to like me pretty well and and itseem to like me pretty well and and itseem to like me pretty well and and it doesn't get any better than that I Idoesn't get any better than that I Idoesn't get any better than that I I tell the students that come to see metell the students that come to see metell the students that come to see me and I have 48 universities come out
and I have 48 universities come outand I have 48 universities come out every year I tell the students take theevery year I tell the students take theevery year I tell the students take the job you would take if you didn't need ajob you would take if you didn't need ajob you would take if you didn't need a job and I've got the job that I I don'tjob and I've got the job that I I don'tjob and I've got the job that I I don't need a job and i' I've got that job nowneed a job and i' I've got that job nowneed a job and i' I've got that job now you've give you're giving away 99% ofyou've give you're giving away 99% ofyou've give you're giving away 99% of your wealth you have three children Uyour wealth you have three children Uyour wealth you have three children U seven grandchildren and nineseven grandchildren and nineseven grandchildren and nine great-grandchildren that's it and any ofgreat-grandchildren that's it and any ofgreat-grandchildren that's it and any of them ever say maybe you could leave somethem ever say maybe you could leave somethem ever say maybe you could leave some of that to me or they never well I'mof that to me or they never well I'mof that to me or they never well I'm leaving some of it to them uh and one ofleaving some of it to them uh and one ofleaving some of it to them uh and one of the things I do is that I don't write athe things I do is that I don't write athe things I do is that I don't write a will very often but when I when I writewill very often but when I when I writewill very often but when I when I write a will I give it to my children firsta will I give it to my children firsta will I give it to my children first before I sign it they all read itbefore I sign it they all read itbefore I sign it they all read it they're they're the executiv uh and Ithey're they're the executiv uh and Ithey're they're the executiv uh and I want them I want two things I want themwant them I want two things I want themwant them I want two things I want them to understand exactly what's in it andto understand exactly what's in it andto understand exactly what's in it and secondly I want them to agree with it Isecondly I want them to agree with it Isecondly I want them to agree with it I mean and if they don't I want them to wemean and if they don't I want them to wemean and if they don't I want them to we talk it out now and we'll figure outtalk it out now and we'll figure out
talk it out now and we'll figure out what makes sense and so every I don'twhat makes sense and so every I don'twhat makes sense and so every I don't know five or six years or seven yearsknow five or six years or seven yearsknow five or six years or seven years whenever I do this they read itwhenever I do this they read itwhenever I do this they read it and sometimes there is something thatand sometimes there is something thatand sometimes there is something that they don't understand in terms ofthey don't understand in terms ofthey don't understand in terms of exactly what their duties might be orexactly what their duties might be orexactly what their duties might be or something of the sort and then in termssomething of the sort and then in termssomething of the sort and then in terms of equating I've got one son that likesof equating I've got one son that likesof equating I've got one son that likes a farm I've got a farm that he'll geta farm I've got a farm that he'll geta farm I've got a farm that he'll get I've got another daughter that likes theI've got another daughter that likes theI've got another daughter that likes the particular house and I've got theseparticular house and I've got theseparticular house and I've got these various ways of equating that andvarious ways of equating that andvarious ways of equating that and percentages and all of that and uh inpercentages and all of that and uh inpercentages and all of that and uh in the end I think they feel very verythe end I think they feel very verythe end I think they feel very very lucky in life so the average person wholucky in life so the average person wholucky in life so the average person who doesn't have your investment skills anddoesn't have your investment skills anddoesn't have your investment skills and they want to not lose their money theythey want to not lose their money theythey want to not lose their money they would you recommend that they play thewould you recommend that they play thewould you recommend that they play the stock market they buy mutual funds whatstock market they buy mutual funds whatstock market they buy mutual funds what do you recommend to the average investordo you recommend to the average investordo you recommend to the average investor well playing the stock market playing iswell playing the stock market playing iswell playing the stock market playing is not a word I would choose I I would
not a word I would choose I I wouldnot a word I would choose I I would recommend that they put arecommend that they put arecommend that they put a similar sum that maybe they'd be earningsimilar sum that maybe they'd be earningsimilar sum that maybe they'd be earning more as they went along but but savemore as they went along but but savemore as they went along but but save something every month and just and andsomething every month and just and andsomething every month and just and and basically put it in an index fund theybasically put it in an index fund theybasically put it in an index fund they are not in a position to make judgmentsare not in a position to make judgmentsare not in a position to make judgments on stocks themselves they're not in theon stocks themselves they're not in theon stocks themselves they're not in the game anymore than I'm you know I can Igame anymore than I'm you know I can Igame anymore than I'm you know I can I can prescribe in medicine or somethingcan prescribe in medicine or somethingcan prescribe in medicine or something of the sort they will get a good resultof the sort they will get a good resultof the sort they will get a good result the the American economy has donethe the American economy has donethe the American economy has done wonderfully I mean if you take the 20thwonderfully I mean if you take the 20thwonderfully I mean if you take the 20th century the Dow started at 66 and ancentury the Dow started at 66 and ancentury the Dow started at 66 and an ended atended atended at 11,400 now think of that how could11,400 now think of that how could11,400 now think of that how could anybody get a bad result in investinganybody get a bad result in investinganybody get a bad result in investing starting at 66starting at 66starting at 66 11,400 but a lot of people do because11,400 but a lot of people do because11,400 but a lot of people do because they jump in at the wrong time or theythey jump in at the wrong time or theythey jump in at the wrong time or they think they know this stock versus thatthink they know this stock versus thatthink they know this stock versus that stock but the average person to juststock but the average person to juststock but the average person to just consistently buy equities which to meconsistently buy equities which to meconsistently buy equities which to me are by far the most attractive uhare by far the most attractive uh
are by far the most attractive uh investment Choice around and they andinvestment Choice around and they andinvestment Choice around and they and put it in and if they do that for 20 orput it in and if they do that for 20 orput it in and if they do that for 20 or 30 years they'll do very well but you30 years they'll do very well but you30 years they'll do very well but you you don't subscribe to the efficientyou don't subscribe to the efficientyou don't subscribe to the efficient market theory that says basically youmarket theory that says basically youmarket theory that says basically you can't beat the stock market you youcan't beat the stock market you youcan't beat the stock market you you subscribe to that theory that you can'tsubscribe to that theory that you can'tsubscribe to that theory that you can't or you well if I subscribe to thator you well if I subscribe to thator you well if I subscribe to that theory I still be deliveringtheory I still be deliveringtheory I still be delivering papers no no I I think I think I I I I Ipapers no no I I think I think I I I I Ipapers no no I I think I think I I I I I don't think there's any question thatdon't think there's any question thatdon't think there's any question that certain people who evaluate stocks ascertain people who evaluate stocks ascertain people who evaluate stocks as businesses can make Intelligentbusinesses can make Intelligentbusinesses can make Intelligent Decisions about businesses which willDecisions about businesses which willDecisions about businesses which will enable them to do very well in in theenable them to do very well in in theenable them to do very well in in the Securities Market but I don't thinkSecurities Market but I don't thinkSecurities Market but I don't think somebody that is listening you know to asomebody that is listening you know to asomebody that is listening you know to a a a TV channel tell them what to do ora a TV channel tell them what to do ora a TV channel tell them what to do or somebody you know jumping around withsomebody you know jumping around withsomebody you know jumping around with astronics or or even some salespersonastronics or or even some salespersonastronics or or even some salesperson who's getting paid more money forwho's getting paid more money forwho's getting paid more money for selling them something and getting themselling them something and getting them
selling them something and getting them to change tomorrow uh is is the key toto change tomorrow uh is is the key toto change tomorrow uh is is the key to it now you you gave away or committed toit now you you gave away or committed toit now you you gave away or committed to give away the bulk of your money to uh agive away the bulk of your money to uh agive away the bulk of your money to uh a foundation set up by other people whyfoundation set up by other people whyfoundation set up by other people why did you choose not to just have thedid you choose not to just have thedid you choose not to just have the money go to a foundation named after youmoney go to a foundation named after youmoney go to a foundation named after you that presumably you would control andthat presumably you would control andthat presumably you would control and how did that idea come about wellhow did that idea come about wellhow did that idea come about well originally i' I'd actually planned Ioriginally i' I'd actually planned Ioriginally i' I'd actually planned I thought my first wife would outlive methought my first wife would outlive methought my first wife would outlive me and that she would give away the moneyand that she would give away the moneyand that she would give away the money so it it would have gone to a foundationso it it would have gone to a foundationso it it would have gone to a foundation that she ran but the idea was to get thethat she ran but the idea was to get thethat she ran but the idea was to get the money spent and you say it's run bymoney spent and you say it's run bymoney spent and you say it's run by other people but if you know if if youother people but if you know if if youother people but if you know if if you set up the Ford Foundation or you set upset up the Ford Foundation or you set upset up the Ford Foundation or you set up the Carnegie Foundation they're beingthe Carnegie Foundation they're beingthe Carnegie Foundation they're being run by other people just that therun by other people just that therun by other people just that the Carnegie didn't know who they would beCarnegie didn't know who they would beCarnegie didn't know who they would be or or Henry Ford didn't know who they'dor or Henry Ford didn't know who they'dor or Henry Ford didn't know who they'd be so you they are going to be run bybe so you they are going to be run bybe so you they are going to be run by other people if they extend beyond your
other people if they extend beyond yourother people if they extend beyond your lifetime and I uh I picked people that Ilifetime and I uh I picked people that Ilifetime and I uh I picked people that I had enormous confidence in the fact thathad enormous confidence in the fact thathad enormous confidence in the fact that they had a similar judgment about wherethey had a similar judgment about wherethey had a similar judgment about where money should go and and where I thoughtmoney should go and and where I thoughtmoney should go and and where I thought they would do a first class job ofthey would do a first class job ofthey would do a first class job of administering it and then I mean in theadministering it and then I mean in theadministering it and then I mean in the case of the Gates Foundation I getcase of the Gates Foundation I getcase of the Gates Foundation I get people that are putting up their ownpeople that are putting up their ownpeople that are putting up their own money Big Time who are very able peoplemoney Big Time who are very able peoplemoney Big Time who are very able people who working full-time at it themselveswho working full-time at it themselveswho working full-time at it themselves who aren't charging me anything and andwho aren't charging me anything and andwho aren't charging me anything and and I've got these foundations that are runI've got these foundations that are runI've got these foundations that are run by my children that it's been wonderfulby my children that it's been wonderfulby my children that it's been wonderful for them and they each have a separatefor them and they each have a separatefor them and they each have a separate foundation so that they can follow theirfoundation so that they can follow theirfoundation so that they can follow their own interests and not have to sort of Loown interests and not have to sort of Loown interests and not have to sort of Lo you know roll logs as to who votes foryou know roll logs as to who votes foryou know roll logs as to who votes for this one or that one and it's all workedthis one or that one and it's all workedthis one or that one and it's all worked out perfectly and what was Bill Gates'sout perfectly and what was Bill Gates'sout perfectly and what was Bill Gates's reaction when you called him and saidreaction when you called him and saidreaction when you called him and said guess what I'm giving you $50 billion
guess what I'm giving you $50 billionguess what I'm giving you $50 billion eventually I I think he said whateventually I I think he said whateventually I I think he said what shouldn't joke about this I I don'tshouldn't joke about this I I don'tshouldn't joke about this I I don't remember exactly what he said but Iremember exactly what he said but Iremember exactly what he said but I think he was surprised okay and did hethink he was surprised okay and did hethink he was surprised okay and did he suggest you put your name on thesuggest you put your name on thesuggest you put your name on the foundation as well I I I I I don't wantfoundation as well I I I I I don't wantfoundation as well I I I I I don't want my name onmy name onmy name on anything you can there are all kinds ofanything you can there are all kinds ofanything you can there are all kinds of people that do want their names on it sopeople that do want their names on it sopeople that do want their names on it so if you can sell it to some other guy whyif you can sell it to some other guy whyif you can sell it to some other guy why should you give give it to me where youshould you give give it to me where youshould you give give it to me where you don't get anything out of it youdon't get anything out of it youdon't get anything out of it you know okay I understand so umknow okay I understand so umknow okay I understand so um as you go forward now are there certainas you go forward now are there certainas you go forward now are there certain things that you would like to accomplishthings that you would like to accomplishthings that you would like to accomplish uh beyond what you've accomplished areuh beyond what you've accomplished areuh beyond what you've accomplished are there certain social problems you'd likethere certain social problems you'd likethere certain social problems you'd like to see being solved or economic problemsto see being solved or economic problemsto see being solved or economic problems or is your goal mostly to keep youror is your goal mostly to keep youror is your goal mostly to keep your company doing well and give away thecompany doing well and give away thecompany doing well and give away the money well in terms of personally suremoney well in terms of personally suremoney well in terms of personally sure I'd like to I'd like to I I wantI'd like to I'd like to I I wantI'd like to I'd like to I I want Berkshire I mean that that that is my
Berkshire I mean that that that is myBerkshire I mean that that that is my painting in life I've been painting itpainting in life I've been painting itpainting in life I've been painting it all my life virtually and I want to keepall my life virtually and I want to keepall my life virtually and I want to keep painting it and have it become even Upainting it and have it become even Upainting it and have it become even U more of what it already is and and somore of what it already is and and somore of what it already is and and so that's what I love anything anythingthat's what I love anything anythingthat's what I love anything anything thatthatthat works positively for Berkshire in termsworks positively for Berkshire in termsworks positively for Berkshire in terms of adding better businesses you knowof adding better businesses you knowof adding better businesses you know having wonderful managers around and ithaving wonderful managers around and ithaving wonderful managers around and it makes them be in a position to get theirmakes them be in a position to get theirmakes them be in a position to get their full potential from their companies Ifull potential from their companies Ifull potential from their companies I love and I'll do that as long as I can Ilove and I'll do that as long as I can Ilove and I'll do that as long as I can I like the idea that the the the basicallylike the idea that the the the basicallylike the idea that the the the basically the fruits of that you know will be usedthe fruits of that you know will be usedthe fruits of that you know will be used by some very intelligent people toby some very intelligent people toby some very intelligent people to improve the lot of a whole bunch ofimprove the lot of a whole bunch ofimprove the lot of a whole bunch of people who didn't get the lucky straw inpeople who didn't get the lucky straw inpeople who didn't get the lucky straw in life like I got and how old were youlife like I got and how old were youlife like I got and how old were you when you realized you were much betterwhen you realized you were much betterwhen you realized you were much better than other people in picking stocks andthan other people in picking stocks andthan other people in picking stocks and and making these kind of Investments didand making these kind of Investments didand making these kind of Investments did you realize that as a young person or
you realize that as a young person oryou realize that as a young person or did it take much longer before youdid it take much longer before youdid it take much longer before you realize you were much better thanrealize you were much better thanrealize you were much better than everybodyeverybodyeverybody else it sounds obnoxious but I thought Ielse it sounds obnoxious but I thought Ielse it sounds obnoxious but I thought I was going to be pretty good on I I wentwas going to be pretty good on I I wentwas going to be pretty good on I I went through this period at Wilson witerthrough this period at Wilson witerthrough this period at Wilson witer Wilson where IWilson where IWilson where I um I was I was really bad at Alice dealum I was I was really bad at Alice dealum I was I was really bad at Alice deal but I was kind of working out of it atbut I was kind of working out of it atbut I was kind of working out of it at wter Wilson and I had these teacherswter Wilson and I had these teacherswter Wilson and I had these teachers that I caused some trouble to but theythat I caused some trouble to but theythat I caused some trouble to but they did think I knew a lot about stocks anddid think I knew a lot about stocks anddid think I knew a lot about stocks and of course in those days teach teers putof course in those days teach teers putof course in those days teach teers put all their money in AT&T I mean that wasall their money in AT&T I mean that wasall their money in AT&T I mean that was the ultimate safe investment so when Ithe ultimate safe investment so when Ithe ultimate safe investment so when I was feeling particularly obnoxious Iwas feeling particularly obnoxious Iwas feeling particularly obnoxious I would I shorted a little AT&T andwould I shorted a little AT&T andwould I shorted a little AT&T and brought the confirmation showed him tobrought the confirmation showed him tobrought the confirmation showed him to the teachers made him worry a little butthe teachers made him worry a little butthe teachers made him worry a little but I no I you you couldn't you couldn'tI no I you you couldn't you couldn'tI no I you you couldn't you couldn't love anything as much as I lovedlove anything as much as I lovedlove anything as much as I loved Investments and and and not get fairlyInvestments and and and not get fairlyInvestments and and and not get fairly good at it I spent I read every book in
good at it I spent I read every book ingood at it I spent I read every book in the Alo Public Library on investments bythe Alo Public Library on investments bythe Alo Public Library on investments by the time I was 11 and we moved back herethe time I was 11 and we moved back herethe time I was 11 and we moved back here and as soon as I got back here and myand as soon as I got back here and myand as soon as I got back here and my dad was in Congress I said getdad was in Congress I said getdad was in Congress I said get everything in library Congress I want toeverything in library Congress I want toeverything in library Congress I want to read it well there's one company inread it well there's one company inread it well there's one company in Washington we didn't mention uh youWashington we didn't mention uh youWashington we didn't mention uh you obviously bought Geico and that's one ofobviously bought Geico and that's one ofobviously bought Geico and that's one of your most famous Investments but youyour most famous Investments but youyour most famous Investments but you made a very famous investment in themade a very famous investment in themade a very famous investment in the Washington Post many years ago WhatWashington Post many years ago WhatWashington Post many years ago What attracted you to the Washington Post andattracted you to the Washington Post andattracted you to the Washington Post and how long have you held that investmenthow long have you held that investmenthow long have you held that investment well I I love the business as such butwell I I love the business as such butwell I I love the business as such but when I bought the Washington Postwhen I bought the Washington Postwhen I bought the Washington Post company uh this is pretty split they hadcompany uh this is pretty split they hadcompany uh this is pretty split they had about 48 million shares outstanding andabout 48 million shares outstanding andabout 48 million shares outstanding and the stock got down to 16 but but thanksthe stock got down to 16 but but thanksthe stock got down to 16 but but thanks to the Nixon challenge the TV stationto the Nixon challenge the TV stationto the Nixon challenge the TV station their TV stations and a few things BBtheir TV stations and a few things BBtheir TV stations and a few things BB Roso and the rest the stock cascadedRoso and the rest the stock cascaded
Roso and the rest the stock cascaded down from 37 so it when we bought it thedown from 37 so it when we bought it thedown from 37 so it when we bought it the whole valuation of the America of thewhole valuation of the America of thewhole valuation of the America of the Washington Post company was about $100Washington Post company was about $100Washington Post company was about $100 million now if you'd asked any reportermillion now if you'd asked any reportermillion now if you'd asked any reporter at the Washington Post to go out and doat the Washington Post to go out and doat the Washington Post to go out and do a story on what the Washington Posta story on what the Washington Posta story on what the Washington Post company's constituent businesses werecompany's constituent businesses werecompany's constituent businesses were worth they would have come back and saidworth they would have come back and saidworth they would have come back and said four or 500 million so you were reallyfour or 500 million so you were reallyfour or 500 million so you were really buying a wonderful business run bybuying a wonderful business run bybuying a wonderful business run by wonderful people at 20 cents orwonderful people at 20 cents orwonderful people at 20 cents or thereabouts on the dollar and uh youthereabouts on the dollar and uh youthereabouts on the dollar and uh you know it it uh it's almost a a classicknow it it uh it's almost a a classicknow it it uh it's almost a a classic investment if you'd asked any of theinvestment if you'd asked any of theinvestment if you'd asked any of the people who were selling their stock topeople who were selling their stock topeople who were selling their stock to us what's the Washington Post companyus what's the Washington Post companyus what's the Washington Post company worth they would have said three or fourworth they would have said three or fourworth they would have said three or four times what it's selling for but theytimes what it's selling for but theytimes what it's selling for but they sold it because they thought it wassold it because they thought it wassold it because they thought it was going to go down the next day and theygoing to go down the next day and theygoing to go down the next day and they were right for a while but you've ownedwere right for a while but you've ownedwere right for a while but you've owned that now for it's been it's been 29
that now for it's been it's been 29that now for it's been it's been 29 years I mean 39 years so you are anyears I mean 39 years so you are anyears I mean 39 years so you are an optimist about the future of our countryoptimist about the future of our countryoptimist about the future of our country it's the CCH yeah we haven't lost theit's the CCH yeah we haven't lost theit's the CCH yeah we haven't lost the secret sauce I mean yeah go back to thatsecret sauce I mean yeah go back to thatsecret sauce I mean yeah go back to that I when I was born inI when I was born inI when I was born in 1930 that was1930 that was1930 that was 252 on the day before I was born on a252 on the day before I was born on a252 on the day before I was born on a Saturday Friday was 252 that was a highSaturday Friday was 252 that was a highSaturday Friday was 252 that was a high for the year it was going to go down tofor the year it was going to go down tofor the year it was going to go down to 42 there's no connection in this folks42 there's no connection in this folks42 there's no connection in this folks uh the uh but you know if I seenuh the uh but you know if I seenuh the uh but you know if I seen that my dad my dad was going to lose histhat my dad my dad was going to lose histhat my dad my dad was going to lose his job and and and he worked in a bank andjob and and and he worked in a bank andjob and and and he worked in a bank and there and he had all his money in thatthere and he had all his money in thatthere and he had all his money in that bank had had Clos and he had no money tobank had had Clos and he had no money tobank had had Clos and he had no money to pay his mortgage or anything that waspay his mortgage or anything that waspay his mortgage or anything that was going to happen within a year if you'dgoing to happen within a year if you'dgoing to happen within a year if you'd seen that you said this you know go backseen that you said this you know go backseen that you said this you know go back it be like the old Woody Allen movie youit be like the old Woody Allen movie youit be like the old Woody Allen movie you know just don't don't even come outknow just don't don't even come outknow just don't don't even come out and look at what has happened since thatand look at what has happened since thatand look at what has happened since that time I mean you know we went through a
time I mean you know we went through atime I mean you know we went through a terrible War we went through a terribleterrible War we went through a terribleterrible War we went through a terrible depression we went through 25%depression we went through 25%depression we went through 25% unemployment went through thousands ofunemployment went through thousands ofunemployment went through thousands of banks closing six for one you know we'rebanks closing six for one you know we'rebanks closing six for one you know we're not smarter than the people in 1930 wenot smarter than the people in 1930 wenot smarter than the people in 1930 we don't work harder than the people indon't work harder than the people indon't work harder than the people in 1930 we've just got a system that works1930 we've just got a system that works1930 we've just got a system that works that's been working you know since sincethat's been working you know since sincethat's been working you know since since 1776 and it'll keep working oh any1776 and it'll keep working oh any1776 and it'll keep working oh any regrets in life not really noregrets in life not really noregrets in life not really no and today you are um somebody who veryand today you are um somebody who veryand today you are um somebody who very close to the president of United Statesclose to the president of United Statesclose to the president of United States if he ask you to come in and serve as anif he ask you to come in and serve as anif he ask you to come in and serve as an adviser would you do thatadviser would you do thatadviser would you do that or it won'tor it won'tor it won't happen if he if he wants to ask mehappen if he if he wants to ask mehappen if he if he wants to ask me anything I'll I'll certainly be i' I'danything I'll I'll certainly be i' I'danything I'll I'll certainly be i' I'd always be glad to help but that would bealways be glad to help but that would bealways be glad to help but that would be true of any president under anytrue of any president under anytrue of any president under any circumstances and today Berkshirecircumstances and today Berkshirecircumstances and today Berkshire hathway is at a buy at this price wellhathway is at a buy at this price wellhathway is at a buy at this price well the businesses owns are worth more thanthe businesses owns are worth more thanthe businesses owns are worth more than the market price but that's true of
the market price but that's true ofthe market price but that's true of other businesses too well what i' wouldother businesses too well what i' wouldother businesses too well what i' would like to do is uh on behalf of everybodylike to do is uh on behalf of everybodylike to do is uh on behalf of everybody here thank you for an extraordinary tourhere thank you for an extraordinary tourhere thank you for an extraordinary tour to force of uh your explanations ofto force of uh your explanations ofto force of uh your explanations of things and PRK you very much for comingthings and PRK you very much for comingthings and PRK you very much for coming this evening and I think everybody's hadthis evening and I think everybody's hadthis evening and I think everybody's had an enjoyable evening I know I certainlyan enjoyable evening I know I certainlyan enjoyable evening I know I certainly did and I want to thank you on behalf ofdid and I want to thank you on behalf ofdid and I want to thank you on behalf of everybody here and all America for whateverybody here and all America for whateverybody here and all America for what you've done and for your philanthropyyou've done and for your philanthropyyou've done and for your philanthropy and for your confidence in America andand for your confidence in America andand for your confidence in America and on behalf ofon behalf ofon behalf of uh the Washington economic club and uhuh the Washington economic club and uhuh the Washington economic club and uh and our everybody here i' give you a fewand our everybody here i' give you a fewand our everybody here i' give you a few gifts if I could you may get on thatgifts if I could you may get on thatgifts if I could you may get on that short list eventually thiswaywayway um this um is a woodro Wilson um highum this um is a woodro Wilson um highum this um is a woodro Wilson um high school jacket we've had made up for youschool jacket we've had made up for youschool jacket we've had made up for you go Tigersand um we have here um a copy of theand um we have here um a copy of theand um we have here um a copy of the original map of the District of Columbiaoriginal map of the District of Columbiaoriginal map of the District of Columbia we'd like to give to you as a gift fromwe'd like to give to you as a gift fromwe'd like to give to you as a gift from the club and um I'd like to give you as
the club and um I'd like to give you asthe club and um I'd like to give you as a personal gift a um copy of thea personal gift a um copy of thea personal gift a um copy of the Declaration of Independence when weDeclaration of Independence when weDeclaration of Independence when we talked about this appearance um you weretalked about this appearance um you weretalked about this appearance um you were at The Archives and I think you said youat The Archives and I think you said youat The Archives and I think you said you hadn't been there before it washadn't been there before it washadn't been there before it was marvelous never been there and um Imarvelous never been there and um Imarvelous never been there and um I cornered you and you said you weren'tcornered you and you said you weren'tcornered you and you said you weren't sure you would what you had agreed tosure you would what you had agreed tosure you would what you had agreed to but you agreed that you would do thisbut you agreed that you would do thisbut you agreed that you would do this and I thank you for honoring yourand I thank you for honoring yourand I thank you for honoring your commitment to come and this says it'scommitment to come and this says it'scommitment to come and this says it's inscribed to you and it says Warreninscribed to you and it says Warreninscribed to you and it says Warren Buffett a rare Modern Man with theBuffett a rare Modern Man with theBuffett a rare Modern Man with the essential traits of our founding fathersessential traits of our founding fathersessential traits of our founding fathers great wisdom courage and Leadership andgreat wisdom courage and Leadership andgreat wisdom courage and Leadership and also great wealth oh thank you thank youalso great wealth oh thank you thank youalso great wealth oh thank you thank you very much thank you appreciate it thanks