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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“You're listening to TIP.On today's episode, I'm joined by Moniz Pabrai for our annual compensation publishedover the Berkshire Hathaway weekend.We talk about what Berkshire might look like under Greg Abel and why $25 million in annualcompensation is a bargain for shareholders.Later in the episode, we discuss the biggest mistake investors make, selling the winnerstoo early.Moniz has a story about his frontline investment.He sold that later and up 200X and what that taught him about patience and compounding.We also touched on concentration, the S&P 500 versus Berkshire over the next decadeand the next century.And then we end with my favorite part of the conversation.Moniz tells us this beautiful story about his friendship with Guy Spear.Since 2014, with more than 200 million downloads, we have interviewed the world's best investors,studied deeply the principles of value investing, and uncovered many compelling investment opportunities.We focus on understanding businesses and intrinsic value, investing accordingly, and sharingeverything we learn with you.This show is not investment advice.It's intended for informational and entertainment purposes only.All opinions expressed by hosts and guests are solely their own, and they may have investmentsin the securities discussed.Now for your host, Stig Brodersen.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Stig, I always look forward to this.It's like the pregame tailgate party.So always a pleasure to be here with you.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, you know, Charlie Munger said that Greg is better than Warren in some important ways.And he never went further to describe what those...But I thought about what he might've meant.So Greg is in Des Moines, Iowa, and he has a team, maybe more now, but he has a teamof about 30 people who are between him and the businesses.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So he has put in a lot of very smart people to help him basically look at these companies.And for Warren, it was easier because he bought these businesses one at a time.And he got to know them one at a time.For example, when he bought See's Candy, there were very few operating subsidiaries and Warrenspent an inordinate amount of time on See's, an inordinate amount of time on Coke and onBuffalo News and so on.Now Greg doesn't have that luxury because when he comes in, there's like 80 plus businessesplus Mormon Group has hundreds of businesses inside that.So he's never going to be able to know the businesses as well as Warren does.And the second thing is Warren's persona was not to get involved.And so the Berkshire companies for decades have been undermanaged.It can be an advantage to leave these managers alone, but it also has a lot of disadvantages.I think Greg got a nice middle ground in the sense that he's not overbearing in your face,et cetera.But at the same time, if he clearly sees that a manager is not delivering, not the rightperson, et cetera, he is going to act on that.And so I think we are going to be seeing tighter operations.Most of the acquisitions Warren did, did not work well for Berkshire.Let that sink in, Stig.Because we're talking about God here.I would have some conversations with Charlie and I would tell him, Charlie, I hate retail.I wrote a chapter in my first book about how much I hate retail.And he says to me, well, all the subsequent furniture companies we bought after NebraskaFurniture Mart, and all the subsequent jewelers we bought after Borsheim's are so useless.I'm with you, Monish.And I think if Charlie had his way, Berkshire would have had a much smaller retail footprintthan they ended up with.And Warren himself has said, I think it was a 22 or 23 letter where he said that 12 ideasover 58 years or something have led to the creation of Berkshire.And Warren has made more than, I would guess, somewhere between 300 to 400 investments orbuying companies in those almost six decades.And it's a three or 4% hit rate.And so that's the beautiful thing about this business.The interesting thing about 4% is that if we go back for the last 90 years in the U.S.stock market, about 4% of the businesses have delivered all the returns in the market.The other 96% have barely matched bonds or inflation.They haven't done much.The funny thing is what's happened in the bigger market and what's happened inside Berkshire”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“We had him on the show and talked to him about it.And then he made this comment, and I hope you'll forgive me for saying this becauseI actually think it came across in a really nice way.But he said something, and I'm going to put it to the quote, and he said something alongthe lines of, I've been speaking with a lot of stock investors and they want to make moneyout of my study.And I'm not really sure what to do about that.And I was like, have you met stock investors?Yeah, of course.They're looking at your research and like, how do I make money out of it?And he was just more like, that's such an interesting finding.Let me see if I can get funding for another research project.And I was like, yes, welcome to the world of finance.Another question here, you were very kind here going into, before we hit record, youwere like, you have a tough job.You have to come up with questions no one has asked before.But the good thing here is that now with the transition to Greg, that part is going tobe new because we haven't had this transition before with Berkshire, but I can't help butask you about the $25 million annual compensation now.And I think together with a lot of other Berkshire shareholders, I was curious about what Buffettwould come up with as this is how a CEO should be compensated.And so it's all base.And then I don't know if Buffett has nudged Abel or probably not, but he takes his entirecompensation after tax and then buy Berkshire in the open market.If you are on the board, if you are God, how would you incentivize Greg Abel to alignhim most with shareholders?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Yeah, so I try to keep it front and center that Manish is not going to do well if he's lost in a team and such. So thankfully, I have a few very gifted people in the company, and I have delegated to the point of abdication. You know, just to tell you how much I just don't care for this stuff is, we use a software package to do our reviews for our people, and it does a 360 review. So it sends information to peers, superiors, subordinates, everything, and then all of that gets pulled together. And then it gives us a combined report of what the person thinks and what all these people above or below him think as well, right? And they send it to me as well to fill out for at least the people who are directly reporting to me. And I've never filled it out because that's just not Manish. So whenever I go, I tell them, I'm sorry, I just can't go here. And here's my three sentences about what's going on with this person. Warm regards, okay? And that's it. So I try not to get involved in things that I don't like, right? And I'm probably not being fair to those individuals because they would probably appreciate more granularity with me about what is going on, but it's just not me. And so I really don't want to spend my time on reviews. I mean, I hate reviews. I don't like to think about compensation changes and I have no problem with the change. I just don't want to spend brain cells on it. And so thankfully, I've been able to keep our team without going deep into that area, which I would just not like to do.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well said. So if we continue in this framework of choosing, let's call the simplicity over complexity, could you talk to us about why you set up the PopRideWagons ETF and how that adds to your daily happiness?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Yeah. So our minimums in PopRide funds are very high. Funds are over a billion dollars and so it's multiple millions. And so it's just a very small sliver of folks that it would appeal to, and it's very concentrated and so on. And I always felt like we had so many people interested in wanting to invest,”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, one of the mental models that is very front and center for me is that I run intopeople who criticize Gandhi, who criticize Buffett, who criticize all kinds of peoplewho are, from my perspective, great or phenomenal.So if they can criticize Gandhi, then who am I?Like Buffett says, we can choose to live our life with an inner scorecard or an outerscorecard.And it's really important to live by an inner scorecard.So you are not going to silence the critics.And the critics will say all kinds of things, and they may be fair or unfair or whatever.But I love Terry Roosevelt's quote about the man in the arena, which it is not thecritic who counts.And I have that quote right here on my wall.I'm just going to read you a couple of parts of it, right?A subcredit belongs to the man who is actually in the arena, whose face is marred by dustand sweat and blood, who strives valiantly, who errs, who comes up short again and again.That's very important.Who comes up short again and again.He's human, okay?He's not perfect.He's not always able to prevail because there is no effort without error or shortcoming.But who does actually strive to do the deeds, who knows great enthusiasms, the great devotions,who spends himself in a worthy cause, who at the best knows in the end the triumphs”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“of high achievement, and who at the worst, if he fails, at least fails while daring greatly,so that his place shall never be those old and timid souls who neither know victory nor defeat.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Okay. So I just think that to me, it's all about the man in the arena. And the man in the arena is not perfect. He comes up short, he's bloodied and scarred and whatever, but he keeps persevering,ignores the critics, right? And so I think that's our job is we don't need to be in a walled garden. We can be in the open. I mean, Munger and Buffett have been in an open field with all kinds of people sayingall kinds of things about him. People criticize Warren all the time. So I think, yeah, the outer scorecard, inner scorecard, those are great models to have.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Let's take a quick break and hear from today's sponsors.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“All right. Back to the show.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“But then at the same time, there are also things you want to take on.You know, it's sort of like you always want to make sure that you keep your promises.And one way to do that is not to make any promises.But it's also a poor life if you don't make promises to people that you really, reallycare for.But then you also have the struggle.But the struggle is where the meat is.That's still the good part.It's wonderful.If I can go back to, this sounds very operational after.This is a wonderful quote that you just listed up and here I am.But I know you invest in a lot of emerging countries.This is one of the many wonderful reasons why I like to invest with you.But do you ever have any issues withdrawing money from those countries?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, our investments really very heavily are in one country outside the US, which isTurkey.And I was drawn to Turkey because it was screening cheap, but we didn't invest inthese businesses because we wanted Turkish exposure.We invested in these businesses because they were exceptional businesses available atcigar butt prices.And I think one thing to keep in mind is that for most businesses, almost all businesses,the micro is going to trump the macro.So how well we do with our Turkish businesses is probably 95% dependent on what the managersof those businesses do and what is the nature of the markets they are serving.It's really things inside and around the business.Very little has to do with the macro.So anytime I bring up some Turkish business to someone, they'll say, what about Erdogan?And quite frankly, the focus on going after the leadership of a country as being yournumber one factor you're concerned about is very myopic.The important thing is, what is the quality of these managers?What is the quality of the business?What is the size of the market?How well are they executing?I think those are much more important questions because usually the companies we've investedin, there is no real advantage the leader of Turkey is going to get by trying to goin and mess with those companies.He's got other fish to fry.So it's always important to focus around and inside the business.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, I told my investors, and you've probably read this, but I said, look,if you are invested in any of the Pabrai funds, and they're very concentrated,in some cases, one stock is more than half the fund.And I said that if you have less than 20% of your net worth with me,you have nothing to be concerned about.And if you have more than 20% of your net worth with me, you can trim the position.In fact, I recommend you trim it.So if someone has one fifth of their assets with Pabrai funds,and when you look through those one fifth, probably no more than 10%, 12% of theirnet worth is in one particular company, that's plenty of diversification.I mean, let's put it this way.Walmart went public in, I think, 1970 or 72.I think maybe 72, they went public.So it's been, what, 28 and 26, so like 54 years since they've been public.The heirs of Sam Walton own more than what they owned in terms of the percentage of Walmart thatthey own today versus when it IPO, because Walmart has bought back shares.46% of the company is owned by family members, 56 years after the IPO.And they are not diversified.Pabrai funds is diversified.The Walton family is not diversified.But the Walton family would be far worse off if they had listened to the helpers.You don't need to listen to the helpers.The helpers are just helping themselves.So the reality is that most entrepreneurs and most people who have become billionaireshave, through that journey, had 90%, 95%, 99% of their net worth in a single stock.And they don't lose sleep over it.So we somehow accept that some couple running a Chinese restaurant has 90% of everythingin the restaurant.They're just busy working.It's not even liquid.They don't lose sleep over it.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And here we have a portfolio that we can buy and sell every day.And we want to own one of everything.I mean, that just makes no sense.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So as you know, with the frontline story, and just to give your listeners a Cliff Notesversion of it, is that I bought a stock with basically no downside.Very quickly, I doubled my money and patted myself on the back and exited.And then I saw it go up 200x after that or more.Now, in the fall of 2008, you know, God loves Manish a lot.And the proof of that is that in the fall of 2008, I was going to make a trip to SanJose, California.And I was saying, oh, I'm in San Jose, have some time.Who can I meet?And I see that Michael Burry lives in San Jose, California.And I don't know Michael Burry very well.But I sent him an email and said, Michael, this is Manish.You may or may not know me, but I would love to meet you in your office if you have sometime.And he says, come on over.Okay.And so it's like September 2008 or something.So I go to Michael Burry's office, which you saw in the big short.They showed his office.His office looks like that, all these papers all over and all that.And as soon as I go into his office, he launches into CDSs.Okay.And he's going, picking up all these things.Literally, he didn't even say, hi, Manish, welcome, whatever.He just goes straight into CDSs.And God, who loves me so much, brought me to the epicenter of CDSs.Okay.There's no human on the planet who could have explained CDSs to me and the whole housingmarket implosion, et cetera, which is going to happen in the future better than MichaelBurry.And it's going so far above my head.And so poor God, he thought Manish is a capable guy.And he said, if I just send him to Mecca and show him the sermon, everything will be obviousto him.But of course, God did not understand how dumb I am.Okay.Now, so this whole frontline thing happened and I got a double and went up to 100x.Last year, I happened to have a trip to Norway.I'd never been to Norway in my life.Okay.And I'm at this conference for offshore drillers, whatever, in Norway.That's where I went.Right.And they say that we have a field trip, which is not on the schedule.If you guys want to go on the field trip, the field trip is to the headquarters of frontline.Okay.So I said, you know, God has a sense of humor.Okay.I said, I'm going to go on this field trip because I know that's why he brought me toNorway, not for the offshore drillers.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He wants to rub my nose in.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He wants to rub my nose in my mistakes.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So I go to the headquarters of frontline.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And we go into, and you know, it was an out-of-body experience.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So when I go into the headquarters of frontline, it's very high-end Persian drugs.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“It's very ornate, extremely ornate, old school, mahogany interiors and all that.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“But they have a lot of art all over the place.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And they have a lot of ships, replicas of ships.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And those replicas of ships, they're like four feet, five feet.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“There's a VLCC.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Here's another VLCC.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“These are the very large crude carriers, which went up to 100X, right?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I'm walking around and seeing that I owned 2% of all of this.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And Fredrickson did all of that.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And then I go, there's a door that opens and it's right on the harbor.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I mean, it's the most beautiful building right on the harbor, all these boats and everything.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Such a nice office.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I said, God wanted you to see this, Monish.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He didn't want you to die just knowing that was a 200X, whatever.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“All those VLCC, everything got paid by a tiny rounding error of the returns on that investment.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And so I like the way God has a sense of humor with me.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I knew the frontline trip was not to, hey, I'm going to make you some money.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“It was like, hey, I took you to the altar.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“You decided not to get married.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And I want to show you what could have been if you had gotten married.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I love it.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So you wanted to know, I'm sorry, the similarity between frontline and what?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“What were you saying?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“The Metco thesis.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Yeah.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So actually the Metco thesis is more similar to a company called Ipsco than it is to frontline.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And you may recall that Ipsco was a Canadian steelmaker.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And this was a beautiful math game.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“It's like playing blackjack in Vegas.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Okay.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“What a blessed life.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I wake up one morning, I look at Ipsco and Ipsco is a Canadian company with a $40 stock price.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“They have $15 a share in cash on their balance sheet, no debt.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And they have publicly announced that for the next two years, they're going to produce$15 a share of cashflow each of the next two years.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“So if you just hold the stock for two years, you have $45 in cash.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Stock is currently at 40.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Plant, equipment, inventory, everything free.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Okay.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“What's not to like about that?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And then, of course, the issue was that in year three, it's a cyclical business.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“They make tubular steel.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Cash flows could be negative.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“They could go below zero.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“But I said, you know, why entertain such morose thoughts?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I had never in all the years I was friends with Charlie Munger ever requested that he meet me.I always met him when he wanted to meet.So he would say, Monish, come for dinner.I'd come.I'd never ask for anything.He's too busy.But that year in 23, for the first time, I was feeling that I need to meet Charlie.So I reached out to his assistant and said, I'd really like to connect with Charlie.She said, oh, here's some dates and weekends, whatever, what do you want to do?So I picked a Saturday and I flew from Austin to meet Charlie.It turned out that exactly four weeks after that, he passed away.Okay.And so we had our last, what was to be our last meal together in October, 2023.And when I'm talking to Charlie, console energy comes up.And Charlie says that he's invested in console and this was in May of 2023.And I told Charlie, we both bought the same stock, a coal company,within two weeks of each other, without ever having spoken to each other about it.So I said, how strange is that?So he says, Monish, it was bound to happen.I'm glad, glad Charlie felt like that, like bound to happen.Why are you saying that?But then I told Charlie in October, I said, Charlie, I was orgasmic about console.But then I ran into Alpha, Alpha Metallurgical Resources.And it was even better than console.So I said, I'm going to send you a write-up on Alpha.And I think you should switch.You should switch from console to Alpha.So I sent him the write-up.And six days before he passed away, the Tuesday before Thanksgiving,he was still buying Alpha stock.What I love about Charlie is he's 99.9 years old.And it's irrelevant what his life expectancy is.He's still excited to make bets.And so he was buying Alpha literally till he passed away.And so, I mean, I think these are just great bets because no one wants to be in coal.It's a four-lettered word.And people don't want to even spend time thinking about it.And that's all okay with me.No problem.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And here's a number that really stood out to me.Companies like Ramp and Rider spend 82% less time on audits with Vanta.That's not just faster compliance, it's more time for growth.I love that over 10,000 companies from startups to big enterprises trustVanta to handle this stuff so they can focus on what actually moves the needle.Get started today at Vanta.com slash tip.All right, back to the show.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, I think that's a wonderful question and it's a very important question.So one of the lessons that took me many decades to learn is not to sell a good company or greatcompany when it's fairly priced or even overpriced.I was always trying to sell things at 90% of fair value.And that was a very bad framework to have, because we don't know what actual fair valueis for a great business.Only when it gets egregiously overpriced, like there's no way you can justify it,is when you can consider exiting the business.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“and our offshore drillers fall apart.Everything falls apart.In fact, I just can't see that.I can see that maybe one or two of them might have some issues, but I don't see it acrossthe board.So we don't need to be right to the fourth decimal.We also don't need to know which one of these is going to be the one.They're all there.Let them all run.Let them go do their thing.We just watch in the sidelines, see what happens.And that's it.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, the ETF laws and rules require plenty of diversification, much more diversificationthan I would naturally, that's my natural bent.So we are not going to have large positions there, which is fine.And in Powered by Funds, we've never wanted to put more than 10% into anything.So that's also fine.And so basically, I think at the end of the day, if you've got a spectacular winner,it's going to take care of itself, even with a small position size, as long as you don'ttrim, as long as you don't desecrate the temple, we're all fine.And so we don't need to go all in with a big conviction.The winners are going to get there.Even no matter what they wear, they start out, they'll get there.So just be relaxed and patient, and they'll be fine.In fact, that's exactly what happens in index investing.We don't get to see what's happening with the sausage factory, how the sausage is madewith the index.But effectively, what's happening in the index is that it keeps the winners for a very longtime.And the few 4%, 5% of companies are driving the whole end result.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“taking costs out of the system and all of that, that they've taken out everyone andbuilt their footprint.So yes, we want to have the fittest businesses.And one of the definitions of fitness is lack of leverage.So when you look at these businesses, you want to see management teams that have theability to zigzag and you have a capital structure that allows you the freedom to zigzag.And so I think, yeah, there's a lot of things that you can learn from Darwin that you canapply in the corporate world, which would be helpful.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, let's jump from Darwin and then to our friend, Guy.Especially in, I think Guy would appreciate that we make that jump, but especially inthis tricky situation.But I wanted to round off the episode by asking you, Manish, what's the most important thingthat you learned from Guy, both whenever it comes to investing, but also about livinga good life?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Yeah, well, first of all, Guy's situation is very unfortunate.Very sad, actually.I was so heartbroken, probably still heartbroken.Guy and I are very different people.And I would have never predicted that someone like him would be my best friend.I mean, we are so different in how we think about things.And I recently wrote a letter to Guy, old-fashioned letter.And I told him that I've often wondered, why do we have a connection?Why do I feel such a strong connection with you?Why do you feel such a strong connection with you?And I told him that I concluded that it was because he sees me.You remember the Avatar movie, I See You?You don't remember, you have to go back and see the movie again.Okay, you got too much going on.You watch the movie.So, in the movie, there's a point and they bring it up several points where they makethe comment, I see you.And I see you is very deep.And what I felt with Guy, I still feel is, he gets me in a way almost no one gets me.And I get him in a way almost nobody gets him.So, I told him, Guy, I think the reason we have this connection is because you see meand I see you.And I remember that one time, Guy and I were going to take an overnight train in India.From Mumbai to Delhi.The train leaves at around 4pm from Mumbai and it gets into Delhi around 10 o'clock inthe morning.It's an overnight train.And it's a beautiful train.It's the Rajdhani.It's a very nice train.And he and I had a two-person private compartment.And I told him, Guy, I want to just tell you something.Just when the journey was about to start.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“I said, you see that there's that button there.That's a bell.And I said, when you press that bell, the butler is going to show up and the butlerwill do whatever you want.Okay.But I said that I want you, the first time you press that bell, to drown the butler incash.Okay.I said, the first time you press the bell, don't ask him for anything.Just hand over.And I said, drowning in cash in India, $25 is enough.Okay.He's almost going to have a cardiac at that point.So I said, just ring the bell.So he rings the bell.The butler shows up.Guy gives him the $25.And I'm going to take a little detour for a second before I continue the story.Another friend of mine who used to be an engineer installing cellular networks in Africa,used to work for AT&T.So they'd go to different African countries and he was in charge.So he said that one time he went to Ghana.Okay.And they always put him up in the best hotel, Accra, right on the ocean.Beautiful hotel, right?So he says that the porter carrying my luggage to my villa, I gave him a dollar, $1 tip.And the guy looked at the dollar and he said, he gave me a full military salute.Okay.And he said, no one has ever given me that type of salute or that type of respect ever in my life.So he said, I gave him another dollar and said, can you please do it again?He said, I was giving him a lot of dollars because of the salute.He said it was awesome.So anyway, coming back to Guy.And so the guy shows up, gives him the $25.He's almost died.It's like almost half his month's salary or something.And he said, yes, sir.What can I do for you?So Guy says, nothing right now, please.This was just, we just wanted to say that we're so happy to have you, et cetera.And the guy couldn't believe, he couldn't believe that we had called him.And I said, now Guy, feel free to ring that bell as often as you want.Okay.And he's going to drop everyone else and be here.Okay.Now Guy loves to have tea.Right.And I said, don't you want some tea, Guy?He says, yeah.So in that 17-hour journey, Guy must have rung that bell like 30 times.Okay.Like there was tea coming every 45 minutes.And then he's FaceTiming his wife, Lori.He's in an orgasmic state.Okay.He's in an orgasmic state in a third-world country with a train, whatever.And he's telling his wife, Lori, that in the compartment, we don't have to go to a diningcar.In the compartment, they bring me my tea, they bring me biscuits, they bring me this,”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“bring me that.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And then I tell them it's slightly cold, they bring me a new one, this, that, whatever.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And then he says, for dinner, white tablecloth, everything in our suite, right?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And I'm thinking, he's continuously FaceTiming his wife, telling her this, that, whateverelse is going on.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And I told Guy, Guy, I see if you were traveling with anyone else, they would not be able tounderstand what's really going to get you excited.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And so that was just a wonderful experience.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And I felt many times when I'm doing something, he'll make some comment and I'll say, what?”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He's looking straight into me.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He knows exactly what I need.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“It was just so beautiful.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Watch the movie again.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Avatar, yeah.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Well, Stig, I always enjoy ourconversations and you always impress me so much because every time I'm thinking, Stig is goingto have such a hard time.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He's asked me everything already.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“He's a poor guy, has to watch so many hours of videos and all that.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“But you outdo yourself each time.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“It's so much fun.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Thank you so much.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“All right, Manish.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“We'll see you soon.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Thanks for listening to TIP.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“Follow The Investor's Podcast on your favorite podcast app.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“And visit TheInvestor'sPodcast.com for show notes and educational resources.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“This podcast is for informational and entertainment purposes only and does not provide financial,investment, tax or legal advice.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“The content is impersonal and does not consider your objectives, financial situation or needs.”

TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

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TIP812: Mohnish Pabrai – Berkshire & Letting Winners Run

“All rights reserved.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“He'll start this meeting with a 1-hour>> He'll start this meeting with a 1-hour>> He'll start this meeting with a 1-hour business update, then move on to thatbusiness update, then move on to thatbusiness update, then move on to that first Q&A session, which also willfirst Q&A session, which also willfirst Q&A session, which also will include vice chair of insuranceinclude vice chair of insuranceinclude vice chair of insurance operations Ajit Jane. starts in about 15operations Ajit Jane. starts in about 15operations Ajit Jane. starts in about 15 minutes. Let's give you a look at theminutes. Let's give you a look at theminutes. Let's give you a look at the rest of the day schedule. The first Q&Arest of the day schedule. The first Q&Arest of the day schedule. The first Q&A session will be a little more than ansession will be a little more than ansession will be a little more than an hour. After that, you can catch ourhour. After that, you can catch ourhour. After that, you can catch our halftime show with big names includinghalftime show with big names including”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“halftime show with big names including Accidental's Vicky Hollow and Brooks running CEO Dan Sheridan. The second session starts at 12:45 with the BNSF CEO Katie Farmer and the new president of Berkshire's Consumer Products Service and Retailing and NetJet CEO Adam Johnson joining Abel on stage after another hourong break. The official shareholder meeting will start at 3 p.m. Eastern time.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Well, I didn't do it. Good morning. I I”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well, I didn't do it. Good morning. I I uh I was led to a man named Sandy Goddisman in New York who I much later found out was a close friend of Warren and did a lot of work with Warren and uh he had an account for me and and uh uh many years later I I met Warren. I thought he's such a nice fellow I'd like to help him out. Maybe I'll buy some of his stock. And then I found out that I'd owned his stock for a couple of decades already. So”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“[laughter][laughter][laughter]”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well, the first time I came was after I met Warren and I got a kick out of it. I mean, and a real kick out of he really makes me laugh and u and like big like”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Kind of a little pressure on the new guy. Greg Ael's going to have to make you laugh now.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Where do you see them?”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Okay.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Certainly friendly. Yeah.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that was big time humor. That was very funny stuff.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“it's a pretty good cushion to operate with that.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“really good." I was really happy to see that. So, I think he's going to have that same experience of what it's like to be there as a shareholder and and and to see how the story goes down, how how Greg tells the story.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“And you know, he's going to have his own kind of wisdom reflected back onto himself because I mean, the one thing Abel's going to do is talk a lot of continuity of the culture and the discipline and everything else.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. And that's a great analogy to this. What What was the show? There was the national ampoon show off Broadway and I was in it with my brother Brian and Joe Flity, Harold Ramos, Gilder Rner, John Belalushi and Paul Jacobs on the piano and it was a it was outrageous show at the time. It was a great great show.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“It was worth being late for.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“It was I only did it once but I'm so glad I did. I was lucky.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“glad I did. I was lucky.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> You know I and I didn't get in trouble because it was just those guys.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Right.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Well, Bill, I know you've got to make your way uh out to the floor. I get lost going through the curtains. I do. Nice to see you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> for sure. Birkshire shares are down nearly 6% since the start of the year. So, big question now is could Abel's comments today be enough to spark some enthusiasm uh for the stock? We're going to talk uh talk about that in just a moment uh with John Rogers of Aerial”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Yeah.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Incredible.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“I certainly met the people that at at Bell Labs that we”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Yeah. You know, and obviously I met Vick. He we made the deal and and so I I enjoy meeting the people and uh uh uh but you can make mistakes with people. I mean look at the divorce rate, you know, that's that's more important than whether you got the right CEO or anything else and and now you've got years of trial. I mean, back when I was young, you had to make the decision, you know, or you didn't have to make a decision. A good many people made the decision when they were 20 or 21 now”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“optimistic about the markets or not.optimistic about the markets or not.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Yeah. They got married. And now they they they spent five years and they still make the same mistakes.”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“Well, I don't know. Maybe that people behave differently before the marriage than after. Who knows exactly? Yeah,”

CNBC Full Interview with Warren Buffett — 2026 Annual Meeting (May 2, 2026)

“War of the worlds with Orson Wells.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> John Rogers, thanks so much for getting us kicked off today. Really appreciate”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“us kicked off today. Really appreciate it. Enjoy the meeting. Right now, weit. Enjoy the meeting. Right now, weit. Enjoy the meeting. Right now, we take you to this year's annualtake you to this year's annualtake you to this year's annual Berk
hire Hathway shareholder meetingBerk
hire Hathway shareholder meetingBerk
hire Hathway shareholder meeting right now.Tell me doctor, where are we going thisTell me doctor, where are we going thisTell me doctor, where are we going this time?is to live thisis to live thisis to live this night.All I wanted to doAll I wanted to doAll I wanted to do was play my guitar and saywas play my guitar and saywas play my guitar and say take me away.take me away.take me away. I don't mind. But you better promise meI don't mind. But you better promise meI don't mind. But you better promise me I'll be back in time.I'll be back in time.Give me back in time.Give me back in time.Give me back in time. Give me back in time.Heat. Heat.Last Timeto die.Heat. Heat.Back in time”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and and the in Berkshire as a whole. But what we really treasure is thewhat we really treasure is thewhat we really treasure is the engagement with our again our owners,engagement with our again our owners,engagement with our again our owners, our shareholders and the and theour shareholders and the and theour shareholders and the and the questions that come. So thank you.questions that come. So thank you.questions that come. So thank you. Really appreciate it.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Now to touch on this morning, we haveNow to touch on this morning, we haveNow to touch on this morning, we have three sessions that we'll we'll we'llthree sessions that we'll we'll we'llthree sessions that we'll we'll we'll cover over the morning early afternoon.cover over the morning early afternoon.cover over the morning early afternoon. The first session, there'll be someThe first session, there'll be someThe first session, there'll be some pleasantries here and then we'll movepleasantries here and then we'll movepleasantries here and then we'll move into a business update. Uh that'll beinto a business update. Uh that'll beinto a business update. Uh that'll be the first session. As we move into thethe first session. As we move into thethe first session. As we move into the second session, I'll have a Jane join ussecond session, I'll have a Jane join ussecond session, I'll have a Jane join us here on stage. We'll obviously take anyhere on stage. We'll obviously take anyhere on stage. We'll obviously take any questions. So, it'll be a question andquestions. So, it'll be a question andquestions. So, it'll be a question and answer period. We'll do the traditionalanswer period. We'll do the traditionalanswer period. We'll do the traditional uh rotating between our shareholders anduh rotating between our shareholders anduh rotating between our shareholders and Becky. Becky, thank you for being here.Becky. Becky, thank you for being here.Becky. Becky, thank you for being here. Um, and we'll do the traditional Q&AUm, and we'll do the traditional Q&AUm, and we'll do the traditional Q&A and then that session will wrap and thenand then that session will wrap and thenand then that session will wrap and then we'll move to a third session that willwe'll move to a third session that willwe'll move to a third session that will have Katie Farmer. Katie is a been thehave Katie Farmer. Katie is a been thehave Katie Farmer. Katie is a been the uh CEO of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“uh CEO ofuh CEO of BNSFR railway for for the past fiveBNSFR railway for for the past fiveBNSFR railway for for the past five years. And then we'll also be joined byyears. And then we'll also be joined byyears. And then we'll also be joined by Adam Johnson who is a uh 10ear CEOAdam Johnson who is a uh 10ear CEOAdam Johnson who is a uh 10ear CEO 10year CEO of uh NetJets but also took10year CEO of uh NetJets but also took10year CEO of uh NetJets but also took on an incremental role recently and uhon an incremental role recently and uhon an incremental role recently and uh we announced that in December. Adam tookwe announced that in December. Adam tookwe announced that in December. Adam took on the consumer products group, serviceson the consumer products group, serviceson the consumer products group, services and retailing group. So we'll have themand retailing group. So we'll have themand retailing group. So we'll have them join us for the third session. Again,join us for the third session. Again,join us for the third session. Again, the traditional question and answerthe traditional question and answerthe traditional question and answer period.period.period. The only thing that I would I would sayThe only thing that I would I would sayThe only thing that I would I would say this is also a little bit incremental orthis is also a little bit incremental orthis is also a little bit incremental or uh different from past uh meetings.uh different from past uh meetings.uh different from past uh meetings. Throughout this morning, we'll haveThroughout this morning, we'll haveThroughout this morning, we'll have three different videosthree different videosthree different videos uh associated with operating companies.uh associated with operating companies.uh associated with operating companies. The first one will be from GEICO. NancyThe first one will be from GEICO. NancyThe first one will be from GEICO. Nancy Pierce, who's the CEO of of Geico,Pierce, who's the CEO of of Geico,Pierce, who's the CEO of of Geico, long-termlong-termlong-term uh veteran and wealth of experience withuh veteran and wealth of experience withuh veteran and wealth of experience with GEICO. She's over in the managerGEICO. She's over in the managerGEICO. She's over in the manager section. She'll she'll narrate a videosection. She'll she'll narrate a videosection. She'll she'll narrate a video on GEICO. And then we'll also have a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So let's move to the formalities. Now I'm going to introduce our ourI'm going to introduce our ourI'm going to introduce our our directors. I'm going to do itdirectors. I'm going to do itdirectors. I'm going to do it alphabetically. So, if they could justalphabetically. So, if they could justalphabetically. So, if they could just uh acknowledge with a wave or howeveruh acknowledge with a wave or howeveruh acknowledge with a wave or however they would like to acknowledge our ourthey would like to acknowledge our ourthey would like to acknowledge our our shareholders, our owners.shareholders, our owners.shareholders, our owners. Start with Howard Buffett,Susie Buffett,our chairman Warren Buffett,Warren, we have a little surprise thereWarren, we have a little surprise thereWarren, we have a little surprise there for you.for you.for you. If you look up to the right, you'll seeIf you look up to the right, you'll seeIf you look up to the right, you'll see a jerseya jerseya jersey and a number. We are We are retiring.worn appropriately. It's number 60 forworn appropriately. It's number 60 forworn appropriately. It's number 60 for 60 years as our CEO of Berk
hire.60 years as our CEO of Berk
hire.60 years as our CEO of Berk
hire. Equally, it's being uh it's it's placedEqually, it's being uh it's it's placedEqually, it's being uh it's it's placed beside Charlie's jersey, number 45.beside Charlie's jersey, number 45.beside Charlie's jersey, number 45. Charlie was with Berk
hire for 45Charlie was with Berk
hire for 45Charlie was with Berk
hire for 45 years, obviously, our vice chairman, andyears, obviously, our vice chairman, andyears, obviously, our vice chairman, and a treasured partner of Warren, and it'sa treasured partner of Warren, and it'sa treasured partner of Warren, and it's just reflective of a great partnership.just reflective of a great partnership.just reflective of a great partnership. Thank you, Warren.I'm happy to report both those jerseysI'm happy to report both those jerseysI'm happy to report both those jerseys will remain in the rafterswill remain in the rafterswill remain in the rafters uh for the years to come. So great.Now we'll continue with our directors.Now we'll continue with our directors.Now we'll continue with our directors. Steve Burke,Ken Chanel,Chris Davis,our lead director, and I'll just add aour lead director, and I'll just add a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and I know the directors would be here and I knew I would have some family here, but it's wonderful that I'll have you here. So, thank you. Now, back to a great tradition. I'm going to throw the mic over to Warren. Warren, thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“And Warren, thank you for taking the mic”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“My job is to deal with both the past and the future. The past actions of Solomon are presently causing our 8,000 employees and their families to bear a stain. Virtually all of these employees are hardworking, able, and honest. I want to find out exactly what happened in the past so that this stain is borne by the guilty few and removed from the innocent. To help do this, I promise to you, Mr. chairman and to the American people Solomon's wholehearted cooperation with all authorities. These authorities have the power of subpoena, the ability to immunize witnesses, and the power to prosecute for perjury. Our internal investigation has not had these tools. We welcome their use. As to the future, the submission to this subcommittee details actions that I believe will make Solomon the leader within the financial services industry in controls and compliance procedures.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Berk
hire's anthem that's embedded in Berk
hire.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“should we think about this? how how are should we think about this? how how are we how should we all be comfortable we how should we all be comfortable we how should we all be comfortable we're approaching this uh correctly and we're approaching this uh correctly and we're approaching this uh correctly and they said well we don't really like to they said well we don't really like to they said well we don't really like to call it artificial intelligence they call it artificial intelligence they call it artificial intelligence they call it narrow artificial intelligence call it narrow artificial intelligence call it narrow artificial intelligence and they have three really important and they have three really important and they have three really important principles associated with it and the principles associated with it and the principles associated with it and the first one was that yes we're using it first one was that yes we're using it first one was that yes we're using it and we'll use it uh with these engineers and we'll use it uh with these engineers and we'll use it uh with these engineers we have and and and these highly skilled we have and and and these highly skilled we have and and and these highly skilled individuals we brought in but but how individuals we brought in but but how individuals we brought in but but how are you going to manage it? Well, the are you going to manage it? Well, the are you going to manage it? Well, the first thing was that we still have our first thing was that we still have our first thing was that we still have our employees, our senior management team employees, our senior management team employees, our senior management team involved in implementing the involved in implementing the involved in implementing the recommendations recommendations recommendations that we then receive associated with the that we then receive associated with the that we then receive associated with the uh the architecture or the framework uh the architecture or the framework uh the architecture or the framework they put in place. There may be and they put in place. There may be and they put in place. There may be and there may be things that still occur and there may be things that still occur and there may be things that still occur and and should occur just like they did and should occur just like they did and should occur just like they did within our systems or within that. But”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that we're comfortable with. And and I like to call it the constraint. We know we're constraining our data. We know what data we're using and we know what data is coming in. Now when you talk about all the operations that we're focused on, yes, the next day of operations come in and it updates that that data set and we may get a different if we ask the question the day later, we'll get a marginally different answer. It's got new information. But if we ask it, well, if you ignore today's information and just focused on yesterday, do we get the same answer? Yes. So we we call that our safeguard. And then the third thing on technology and associated with this narrow AI is it has to be um additive to our businesses. We're not going to do AI for the sake of AI. You can spend a lot of money in this area and we need to know what we're trying to”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“type of uh risks and these type of obligations and secondly, we would challenge that liability verdict. And we challenged it. It's been a long process, but as owners and shareholders, and this was a very significant event that occurred in this in this past quarter or or occurred in in April. We're very fortunate that it was up to the applet court. They reduced they reversed and remanded that liability verdict and said back to ground zero. Start over again. And what they were really saying was that that class of customers and who did we actually affect and and and where was the causation that's been that will be revisited and then the related damages. Um some positive things associated with it. We we recover a billion dollars of security we've already posted. the people the the the the law firms that pursued it are responsible for our costs”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“There is 17.2 2 billion of payables associated with the treasuries that are associated with the treasuries that are associated with the treasuries that are in that total. How does that happen? We in that total. How does that happen? We in that total. How does that happen? We bought the treasuries right before the bought the treasuries right before the bought the treasuries right before the end of March and the payable i.e. the end of March and the payable i.e. the end of March and the payable i.e. the the the the fact we use our cash to the the the fact we use our cash to the the the fact we use our cash to purchase those treasuries that that purchase those treasuries that that purchase those treasuries that that occurred right after the end of March. occurred right after the end of March. occurred right after the end of March. So we've got the treasuries up in the So we've got the treasuries up in the So we've got the treasuries up in the 397 and we're still holding the cash. 397 and we're still holding the cash. 397 and we're still holding the cash. Accordingly, our cash in U US Treasury Accordingly, our cash in U US Treasury Accordingly, our cash in U US Treasury bills net is 380 billion. Um, and yes, bills net is 380 billion. Um, and yes, bills net is 380 billion. Um, and yes, it it grew by that 7 billion you can see it it grew by that 7 billion you can see it it grew by that 7 billion you can see on the slide. on the slide. on the slide. The other important thing to focus on is The other important thing to focus on is The other important thing to focus on is our cash and investments at the bottom, our cash and investments at the bottom, our cash and investments at the bottom, the 705.8 the 705.8 the 705.8 billion versus the 708 billion versus the 708 billion versus the 708 uh7 billion at the end of the year. So uh7 billion at the end of the year. So uh7 billion at the end of the year. So we're down just uh under three billion. we're down just uh under three billion. we're down just uh under three billion. Now what what drives that or what what's Now what what drives that or what what's Now what what drives that or what what's the underlying numbers behind that? We the underlying numbers behind that? We the underlying numbers behind that? We produced uh a little more than u well produced uh a little more than u well produced uh a little more than u well close to 10.5 billion dollars of income”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Geico started out um 90 years ago by trying to make things simple and giving”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“trying to make things simple and giving a great price and service to customers.a great price and service to customers.a great price and service to customers. And when you think about it, today is umAnd when you think about it, today is umAnd when you think about it, today is um exactly the same thing. We're justexactly the same thing. We're justexactly the same thing. We're just continuing to try and perfect that andcontinuing to try and perfect that andcontinuing to try and perfect that and make it a little better every day, amake it a little better every day, amake it a little better every day, a little faster, a little easier. I'mlittle faster, a little easier. I'mlittle faster, a little easier. I'm Nancy Pierce and I became CEO of GeicoNancy Pierce and I became CEO of GeicoNancy Pierce and I became CEO of Geico in December of 2025. Um, prior to that,in December of 2025. Um, prior to that,in December of 2025. Um, prior to that, I was the chief operating officer, butI was the chief operating officer, butI was the chief operating officer, but I've just had my 40th anniversary withI've just had my 40th anniversary withI've just had my 40th anniversary with GEICO. I started as a claims associateGEICO. I started as a claims associateGEICO. I started as a claims associate in 1986 right out of college and I'vein 1986 right out of college and I'vein 1986 right out of college and I've just had the pleasure over many, manyjust had the pleasure over many, manyjust had the pleasure over many, many years of working in I think just aboutyears of working in I think just aboutyears of working in I think just about every department or every sector um thatevery department or every sector um thatevery department or every sector um that Geico has. So while I started in claims,Geico has. So while I started in claims,Geico has. So while I started in claims, uh I've been in pricing, I've been inuh I've been in pricing, I've been inuh I've been in pricing, I've been in product management, I've been inproduct management, I've been inproduct management, I've been in underwriting, I've had an opportunity tounderwriting, I've had an opportunity tounderwriting, I've had an opportunity to run operations in different parts of therun operations in different parts of therun operations in different parts of the country. Um but what really has kept mecountry. Um but what really has kept me”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“you. Now we'll move to the more formal or not the formal but our traditional Q&A question and answer uh and we'll go again to the stations and to Becky. But today we'll start with station one. Station one.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Now, as you as you've all picked up, that was a that was a deep fake. Um, but but here's the interesting thing. that was that was done with zero input from Warren voice photo. You know, we we got we were able to obtain that with uh information that's out there and replicate those actions and that voice. And the reality is that's what we're dealing with when we think of Berkshire”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“dealing with when we think of Berkshire and how we have to protect it every day. It can go to deep fakes and they're using a way to try to penetrate our business. It can be the cyber attacks, but it's a good it's a great reminder for our team because that is a significant risk across Berk
hire that we're managing every day, cyber risk, and it's one that we take extremely serious. I touched on the technology side. We're constantly using technology to uh protect our businesses. And then we're also trying to use technology to identify it. We've all a lot of us have heard about mythos and what's going on there. Um we're we're we're very focused on those risks. But Aj before we move truly to our first question um and you've touched on this many times when you when we think of cyber risk and we ensure it what's what's our current approach across our insurance businesses”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Now formally station one unless Warren you're up there again.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Anything you'd like to”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I didn't see it anymore.>> I didn't see it anymore.>> I didn't see it anymore. Well said, Warren. No, but uh obviouslyWell said, Warren. No, but uh obviously”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Good morning, Mr. Abel and then Mr.Good morning, Mr. Abel and then Mr.Good morning, Mr. Abel and then Mr. Chen. My name is Jackie Han from China,Chen. My name is Jackie Han from China,Chen. My name is Jackie Han from China, currently work in Toronto, Canada. Thiscurrently work in Toronto, Canada. Thiscurrently work in Toronto, Canada. This is my ninth bookshare meetings. So Iis my ninth bookshare meetings. So Iis my ninth bookshare meetings. So I guess I'm officially a repeat customer”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you. And thank you for attending your ninth shareholder meeting.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“consistent with how we've uh how we've done it in the past. So thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. Yeah. A please I should have Thank you. Thank you. Um, you know, insurance, much like investing, is a game that requires patience. And it is very difficult to get people to sit back and do nothing. When I recruit people, my modus operendi, I tell them right up front, I said I tell them, "Your job is to say no. You will get bombarded with deals day in and day out, but your base case is just say no. I said every now and then you will come across a deal that'll hit you with a 2x4 and it'll be screaming money. That's when you come to me and we'll make a decision whether to do it or not. Yeah,you know, all all kidding aside, it is you know, all all kidding aside, it is very difficult to sit there and do nothing while everyone else is being binded and dying by brokers and taken to London. Uh so I think the real test of being successful certainly in insurance”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yes. Low strategy.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“And I think that's part of management. You have to be ready and including investment, you have to be disciplined and ready to say no. And it and trust me, we understand that a lot of people”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Let's go back to Becky. Becky,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Anything there?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you. Thank you, Ajit. Thank you, Becky.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“transition, we'll we'll we'll move to a NetJets video. Again, just give you some uh more knowledge on NetJets and Adam Johnson. We'll then take a break, but this is the uh the the exciting part, and we're very fortunate Warren agreed to this. At 11:45, Becky and Warren will do an interview backstage. So, basically in 45 minutes, if you take a break and then reconvene, we'll have Warren on the uh large screen. Uh Becky is will interview them. As we take the break, there'll be a couple other activities. Um one, you'll get a 3minut warning before the 11:45. So, if you'd like to rejoin us, but you'll be able to see it throughout the arena, but it'll be a again an interview from Warren. And then, uh, also during the break, we often did commercials during the movies and we could have incorporated into the video. We'll have those at the 15minute”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“video. We'll have those at the 15minute mark. Basically, at 11:30, the videosmark. Basically, at 11:30, the videosmark. Basically, at 11:30, the videos will the uh commercials will play.will the uh commercials will play.will the uh commercials will play. That'll be a 12minute se uh reel of ourThat'll be a 12minute se uh reel of ourThat'll be a 12minute se uh reel of our various commercials from our differentvarious commercials from our differentvarious commercials from our different companies. Be a three-minute warning andcompanies. Be a three-minute warning andcompanies. Be a three-minute warning and then we have the interview with Warrenthen we have the interview with Warrenthen we have the interview with Warren and then we'll recommence the thirdand then we'll recommence the thirdand then we'll recommence the third session. As we recommence that session,session. As we recommence that session,session. As we recommence that session, we'll have a video from Katie on BNSFwe'll have a video from Katie on BNSFwe'll have a video from Katie on BNSF that allow our team to get settled inthat allow our team to get settled inthat allow our team to get settled in here. So, please uh enjoy your break ashere. So, please uh enjoy your break ashere. So, please uh enjoy your break as we go to it. And Becky and Warden, wewe go to it. And Becky and Warden, wewe go to it. And Becky and Warden, we look forward to your interview. Thanklook forward to your interview. Thanklook forward to your interview. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Back to CNBC's special coverage of the>> Back to CNBC's special coverage of the>> Back to CNBC's special coverage of the Berkshire Hathaway annual shareholderBerkshire Hathaway annual shareholderBerkshire Hathaway annual shareholder meeting. I'm Mike Sani live in Omaha,meeting. I'm Mike Sani live in Omaha,meeting. I'm Mike Sani live in Omaha, Nebraska. CEO Greg Ael and vice chairmanNebraska. CEO Greg Ael and vice chairmanNebraska. CEO Greg Ael and vice chairman of insurance operations Ajit Jane takingof insurance operations Ajit Jane takingof insurance operations Ajit Jane taking questions for a little over an hourquestions for a little over an hourquestions for a little over an hour after Ael presented a state of theafter Ael presented a state of theafter Ael presented a state of the business update. Abel has just called abusiness update. Abel has just called abusiness update. Abel has just called a break and he also told shareholders that”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“break and he also told shareholders that Becky Quick will interview chairman Warren Buffett. That will kick off in less than an hour right here on CNBC.com. We have a big halftime show for you. Becky Quick is heading back over here to join us and we'll speak with Accidental Petroleum CEO Vicky Halib, Berk
hire's Brooks running CEO Dan Sheridan, and former Activision Blizzard CEO and longtime Berk
hire shareholder Bobby Kodic. While this morning was the start of a new era with Greg Ael running things, Warren Buffett stole the show to start off. Uh he began with uh it began with Greg Ael thanking Warren for his 60 years running Berk
hire and raising a Buffett banner to the rafters of the arena, symbolically retiring his number 60 jersey. The crowd wildly cheering this moment. After that, Abel turned over the mic to Warren Buffett himself, who was seated”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Warren Buffett himself, who was seated on the floor.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Buffett started out by saying how happy he is with his decision to turn Berkshire over to Greg Ael, saying, "We couldn't have made a better decision," adding that Greg is the right person.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Buffett then trumpeted Berk
hire's biggest holding, of course, that is Apple.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Buffett also took a moment to recognize CEO Tim Cook as he gets ready to step down this fall.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Warren did not uh you know make mention of the fact that Tim Cook is retiring at an age 30 years younger than than Warren himself did. He's at 65 right now. Now, following all that, Greg Ael then went into the business update. One of the things that struck out was uh AI and the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“same level, but there was a a new level of comfort and a new level of kind ofof comfort and a new level of kind ofof comfort and a new level of kind of stepping into their roles and notstepping into their roles and notstepping into their roles and not worrying about looking over theirworrying about looking over theirworrying about looking over their shoulders about what anybody else wasshoulders about what anybody else wasshoulders about what anybody else was paying attention to with it. what whatpaying attention to with it. what whatpaying attention to with it. what what Ajet was just saying where he wasAjet was just saying where he wasAjet was just saying where he was speaking aboutspeaking aboutspeaking about how they get down to the idea that youhow they get down to the idea that youhow they get down to the idea that you don't want to do like the key to doingdon't want to do like the key to doingdon't want to do like the key to doing something great in insurance is to notsomething great in insurance is to notsomething great in insurance is to not do anything. Say no everythingdo anything. Say no everythingdo anything. Say no everything”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> and then to tell all of your the people>> and then to tell all of your the people>> and then to tell all of your the people that you have underneath you to makethat you have underneath you to makethat you have underneath you to make sure that their compensation is notsure that their compensation is notsure that their compensation is not based on them writing insurance for thembased on them writing insurance for thembased on them writing insurance for them to to get paid. It's on making sureto to get paid. It's on making sureto to get paid. It's on making sure you're making the right choices andyou're making the right choices andyou're making the right choices and you're going to have a flat a flatyou're going to have a flat a flatyou're going to have a flat a flat compensation structure no matter what.compensation structure no matter what.compensation structure no matter what. So you're not incentivized to go out andSo you're not incentivized to go out andSo you're not incentivized to go out and do the very thing that's going to winddo the very thing that's going to winddo the very thing that's going to wind up leaving Birkshire on the hook.up leaving Birkshire on the hook.up leaving Birkshire on the hook.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Verify first, maybe trust later. Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“All right. Berk
hire is Accidental All right. Berk
hire is Accidental All right. Berk
hire is Accidental Petroleum's largest shareholder, and Petroleum's largest shareholder, and Petroleum's largest shareholder, and earlier this year, it acquired Oxy Chem. earlier this year, it acquired Oxy Chem. earlier this year, it acquired Oxy Chem. That's a deal worth almost $10 billion. That's a deal worth almost $10 billion. That's a deal worth almost $10 billion. That is thanks in part to the That is thanks in part to the That is thanks in part to the relationship that was forged by CEO relationship that was forged by CEO relationship that was forged by CEO Vicky Halib of Accidental. She now joins Vicky Halib of Accidental. She now joins”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well, the the reality is that with a an incredible leadership team and amazing employees and a strong board, we have over the past 10 years accomplished everything that we set out to do in 2016 when I took the role. What we've done is transformed our portfolio. We've taken it from uh a part a company that was 50% production in the Middle East with a lot of risk to now geopolitically much better. where 83% of our production is in the United States. We've taken it from um from production of 650,000”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“from um from production of 650,000 barrels a day to 1.4 million barrels a day. We've doubled our resource, more than doubled. We've gone from 8 billion BOE of resource of oil and gas to 16.5 billion. And we've um also been able to um to ensure that we had sustainability along runway. the portfolio is not just double more than double it's higher quality assets so higher margin assets and so now we've got 30 years of runway uh in our portfolio assuming uh activity at the current level but now we're not going to keep the current level we will take advantage of accelerating this this runway these this 16 1.5 billion we can accelerate that when the macro allows and what that's going to do it's going to be a massive value creator for Oxy. And now that we've done all that we needed to do to get the portfolio straightened out to to get to where we are with the assets and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well, what's the goal for the next 10>> Well, what's the goal for the next 10>> Well, what's the goal for the next 10 years?years?years?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. Okay.>> Yeah. Okay.>> Yeah. Okay.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“without some growth starting to happen, we'll will start to go up. And so I Iwe'll will start to go up. And so I Iwe'll will start to go up. And so I I think that you know by by the time thatthink that you know by by the time thatthink that you know by by the time that we're ready to start our growth andwe're ready to start our growth andwe're ready to start our growth and again that that would be when we get toagain that that would be when we get toagain that that would be when we get to the 10 billion that would be later thisthe 10 billion that would be later thisthe 10 billion that would be later this year first of next year. So we'll be ayear first of next year. So we'll be ayear first of next year. So we'll be a part of that process to help build backpart of that process to help build backpart of that process to help build back the supply of oil for the world.the supply of oil for the world.the supply of oil for the world.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yes. Um, and we do with uh with Greg>> Yes. Um, and we do with uh with Greg>> Yes. Um, and we do with uh with Greg what we do with our other largewhat we do with our other largewhat we do with our other large shareholders or and and our team doesshareholders or and and our team doesshareholders or and and our team does with any shareholders. We we want ourwith any shareholders. We we want ourwith any shareholders. We we want our shareholders to understand what we'reshareholders to understand what we'reshareholders to understand what we're doing, how we're doing it. Um, so Gregdoing, how we're doing it. Um, so Gregdoing, how we're doing it. Um, so Greg has been involved in a part of thehas been involved in a part of thehas been involved in a part of the process of um of understanding what the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“with that frees us up. So that just right now we're at 13.8 billion in debt principle. I believe that by the end of this year, first of next year, we'll be down to the 10. and and then that resets everything that we can do that that finalizes the transformation for us and then we're off and running.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you. Appreciate it.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I certainly have to acknowledge that the consumer attitude is a little bit different. I watch the University of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“If you are affluent and you are looking at your retirement accounts, the market's doing really well and those consumers are looking for new experiences. However, if you're in a lower income uh demographic right now, when you think about persistent inflation, um interest rates that are still relatively high, not by historical averages, but for recent years, um these consumers are pressed. They're trying to manage strained family budgets. I think that what we're trying to do at the end of the day is just be mindful of that we do have a consumer base that is ultimately forced to spend more money on certain other things that they may have been had more money in their wallet before. Gas prices are obviously rising.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Brooks Running is right here with us. Good to see you Dan.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thanks for having me. Um, so in general been a pretty competitive environment for a while for for running shoes and things like that. You did report your results and pretty decent growth. What are you seeing broadly speaking?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, customers we Q1 was fantastic for us. Grew 23% globally, a very broad growth story for us. All regions growing double digit. Uh, our core markets really really strong and we're seeing the consumer be very very dur durable and strong right now. So, um, we're excited about the future for for our growth and obviously for the category we're competing in.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“What do you attribute that strength to? I mean, I guess you say the category. It strikes me that while we talk about um a lot of the relatively newer entrance into running shoes in particular,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. Well, the first thing we always track is participation. And participation in health and wellness, specifically in run and walk, is at an all-time high. We think there's 52 million runners in the US that run twice a week. Globally, we think that's up to 600 million. So, that's the the foundation of our business. On top of that is performance matters in people's lives. The last couple weeks in the marathon, we've seen epic athletic achievement and per under two hours. So, what a great spotlight for our sport and uh that's driving interest as well. The the general theme of health and wellness around the world, though, is is a one-way street, we think, and more people than ever are running, walking,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. Well, first off, epic athletic achievement. So good for our sport. Running is at the center of everybody talking about it. So we sit right in the middle of that with innovation, Becky. And and we were talking off air about this. The shoe matters for the athletes. And so we have always been a company on innovation and R&D for our athletes and everybody that moves and and that's why”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. Well, new obviously for us and and Yeah. Well, new obviously for us and and Yeah. Well, new obviously for us and and what I've been uh talking about this what I've been uh talking about this what I've been uh talking about this week is just the consistency of week is just the consistency of week is just the consistency of leadership at Berk
hire. We've seen it leadership at Berk
hire. We've seen it leadership at Berk
hire. We've seen it with Greg over the years. Um but now with Greg over the years. Um but now with Greg over the years. Um but now we're seeing it with Adam and I couldn't we're seeing it with Adam and I couldn't we're seeing it with Adam and I couldn't be more excited to to have more be more excited to to have more be more excited to to have more interaction with Adam and start to learn interaction with Adam and start to learn interaction with Adam and start to learn from him. But consistency, this deserved from him. But consistency, this deserved from him. But consistency, this deserved trust, empowerment that has the bedrock”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“this is a moment where we get to network and those networks, you know, last throughout the year. And so it's more one-on-one networking than than in groups. And we've been fortunate to do that this weekend.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, there's not one way. This is the the best part about Berk
hire's empowerment and decentralization. I think all of us independently operate, but there's access to be able to share ideas and and solve different problems. We are we are solving very different businesses here, but there's some common themes in the macroeconomic environment, in geopolitical ways, and so we do find times to connect and and share what we're all dealing with.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“What's I was going to say, what's the the kind of frontier in terms of your”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, sounds like you're on it, Mike. I mean, this is this is the game. Innovation in our space is just ramping. Both in terms of how fast innovation is coming for runners. Midsole compounds and weight in running right now is really the the arms race. And so, we've got uh great midsole compounds that are that are reducing weight, still giving the runner cushioning and resiliency and rebound. And so all of us in this category are are in this arms race to to create performance products that improve people's lives, which Brooks has done for 25 years. We 25 years now, we're on a 14% compounded annual growth rate. So consistent growth over that time based in product.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That's right. That's right.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That's right. That's right.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That's right. That's right.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Dan, good to talk to you. Thank you very much. Dan Sheridan, CEO of Brooks Running. Let's get down to the floor here in Omaha. CBC producer Katie Kramer is at the Oriental Trading Company's booth. So Katie, what are this year's hide items?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I get the best assignment every year, Mike. I get to check out what shareholders are shopping for on the exhibit hall floor. And this year, Greg Ael is a new character in so many different um branded items. We've got Squishallows, we have got candy, we've got spatulas from Pampered Chef, and collectible ducks from Oriental Trading. this year. Warren Buffett, Charlie Munger, and Greg Ael available as rubber ducks. And Oriental Trading uh CEO Steve Mendsick is here. How fast are these selling?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, they're selling like hot cakes. Uh”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, they're selling like hot cakes. Uh Warren uh Warren obviously uh is still a feature for us, but Greg has reached icon status uh this year. He's on the Mount Rushmore uh with uh with Charlie and Warren here. And uh we're selling we're selling a lot of them. Um they're high.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Uh yeah, we're over a thousand ducks sold. so far. So rolling our top seller,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Uh you better hurry. If you're in if you're in the building, you better hurry.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Supplies are limited very much.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Supplies are limited very much. Uh, you've also got Squishallows that have got Greg Abel's face on them this year. You've got some collaborative items with BNSF, with NetJets, uh, with Seas Candies. These Candies has got 11 tons of chocolate over there. So, this is the moment when shareholders really, uh, empty their wallets and fill their luggage for all the great stuff they're taking home with them.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“More than 30 years.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> It was fantastic. I have to say I Greg>> It was fantastic. I have to say I Greg>> It was fantastic. I have to say I Greg handled himself fantastically well. Ihandled himself fantastically well. Ihandled himself fantastically well. I think Ajet adds a great dimension to thethink Ajet adds a great dimension to thethink Ajet adds a great dimension to the stage. Warren's presence, especially hisstage. Warren's presence, especially hisstage. Warren's presence, especially his AI presence, I think added special valueAI presence, I think added special valueAI presence, I think added special value and I think the business is in terrificand I think the business is in terrificand I think the business is in terrific shape. If you were to think about thisshape. If you were to think about thisshape. If you were to think about this company and its current market value, ifcompany and its current market value, ifcompany and its current market value, if you were toyou were toyou were to revalue the equity portfolio to let'srevalue the equity portfolio to let'srevalue the equity portfolio to let's say the historic mean of the S&P, say 17say the historic mean of the S&P, say 17say the historic mean of the S&P, say 17 times,times,times,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> that's maybe about 70 or 80 billion of>> that's maybe about 70 or 80 billion of>> that's maybe about 70 or 80 billion of risk. The operating businesses trade wayrisk. The operating businesses trade wayrisk. The operating businesses trade way below 17 times, probably closer to 10below 17 times, probably closer to 10below 17 times, probably closer to 10 times. So there's a lot of upside intimes. So there's a lot of upside intimes. So there's a lot of upside in Berkshire.Berkshire.Berkshire.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That's great. Bobby, want to thank you very much for sitting here with us and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you for having me.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That'd be great. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Aid I uh I like your Charlie answer.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, there is a lot of chatter there's a lot of need. Uh fortunately there's enough capacity in the insurance world today that would like to write that risk for no other reason but people are sitting on excess capital and they'd like to find a way to deploy that excess capital. uh we ourselves have taken a small participation in a program that's put in being put in place so as to write insurance for the ships in the in the state of Homos. Uh we haven't written any deals as yet. It's still being fine-tuned, but if we can get our terms in terms of the underwriting decisions and the fact that the US Navy will escort these ships, we have put a price on which we will be comfortable underwriting that risk. But nothing has”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“underwriting that risk. But nothing has happened as yet.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Greg Ael also highlighted what makes Berk
hire's business special and spelled out his ethos for running the company going forward.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“We do not embrace in in in our Thank you. Yes.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Let's get a deeper dive into this morning's Q&A session with our Yun Lee.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So, uh, Yun, you looked at the numbers this morning. Of course, you were in on the session, uh, uh, from Greg Able this”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“if they survive. Yeah, exactly. Um Iif they survive. Yeah, exactly. Um Iif they survive. Yeah, exactly. Um I think there was a lot a little bit ofthink there was a lot a little bit ofthink there was a lot a little bit of suspense about how much uh sharesuspense about how much uh sharesuspense about how much uh share repurchase activity there was in therepurchase activity there was in therepurchase activity there was in the quarter. Obviously Greg Ael had saidquarter. Obviously Greg Ael had saidquarter. Obviously Greg Ael had said they had restarted the job the buybackthey had restarted the job the buybackthey had restarted the job the buyback program over 200 million. And then itprogram over 200 million. And then itprogram over 200 million. And then it turns out it was 235 million total inturns out it was 235 million total inturns out it was 235 million total in the quarter. Obviously a pretty smallthe quarter. Obviously a pretty smallthe quarter. Obviously a pretty small amount relative to a trillion dollaramount relative to a trillion dollaramount relative to a trillion dollar market cap,market cap,market cap,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“right? That's very small. and he heright? That's very small. and he heright? That's very small. and he he still sounded very, you know,still sounded very, you know,still sounded very, you know, conservative and he signaled this, youconservative and he signaled this, youconservative and he signaled this, you know, disciplined approach to buyback.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“You I think we u with tech being a big topic of discussion this morning, Abel uh did take a moment to speak about the role data centers will play in Berk
hire's energy investments. Listen up.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“another Q&A session that's going to include some of the folks from the operating businesses as well. So that interview uh between Becky and Warren will happen back in the arena for all to see.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yeah.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> A friend told me yesterday he's recently started using the phrase, I don't fret, I don't worry. And that's probably a good way to go about life. But let let's talk about some of the issues that are out there right now. Um, inflation is up. That's an issue. So, how does Berkshire how does Berkshire handle that with its businesses?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“years. And if you looked up, you know, zero interest rates in year after year after year, it was a 900 page book. And it wasn't an entry for it, you know. I mean, it was the most important economic development. I mean, in terms of the impact it would have and everything during the lifetime of the students reading it. But uh uh it's what you don't think of that that does all the damage.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“He doesn't have a full whatever the complete citizenship requirement is. And and you can say, why does he care? I mean, he's gotten along fine with here and everything. He still wants to be a citizen.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Warren, I want to thank you for taking this time to sit down with us today. Warren Buffett, the chairman of Berk
hire Hathaway. Uh Greg Ael is going to be taking the stage in just a moment and you will see more from him in”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“moment and you will see more from him in just a moment.>> Okay, we're clear.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“We're 177y old company and if we didn't have in our DNA the ability to adapt and to evolve, we wouldn't be here today and we wouldn't be relevant still in in our customer supply chains. And so that adaptability and innovation and really putting the customer first is what we focus on. That that's core to who we are. My name is Katie Farmer and I'm president and CEO of BNSF Railway. I have had the pleasure of working alongside the 35,000 men and women of BNSF for going on 34 years now. And I've worked in almost every area of our company, which is how I came to lead BNSF as our CEO for the last 5 years. We have a long rich history. We got our start as a sixmile railroad in the state of Illinois, a little railroad called the Aurora Branch. And over time, that railroad grew into the Chicago, Burlington, and Quincy railroads. And”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“company on so as if it were a family company for the next hundred years to those who will come after us. And with Greg, Greg, it's great to help focus on execution and making sure that every day you're making that business your family's business. you're making it better. So, we are very honored to be a part of the Berkshire Hathaway family. We understand the responsibility that we have, which is to operate every single day with the highest ethical standards and deliver value for the shareholder. And I want the shareholders to know that we have 35,000 proud railroaders who come to work every single day and focus on those two things.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“um extremely well done in that it gives us a great understanding of your businesses but also you as leaders and I'm just going to start with a question for each of you. Um and then we'll go to the uh back to the question and answer. I think Katie you well I know you did you heard me speaking earlier. Um, I talked to our owners and and shareholders around our operating performance and where we are. Highlighted we were in fifth of sixth last year. We've now moved to fourth and and we need to see we and we also talked about needing significant improvement, a step change. But the one thing I didn't really touch on is I started talking about the the the getting to that next level. But as you touched on, you have 35,000 employees and to move the organization to look externally and recognize where do we go? How do you take on that challenge?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, thank you, Greg. And first of all, thank you for the opportunity to speak today and talk about our great company. It's a pleasure to do that, Greg. So, thank you. You know, we absolutely recognize that it's important for us to run an efficient operation, to have a competitive cost structure, and to continue to further close the gap between us and our competitors. You know, we have an exceptional leadership team in place that understands the importance of aligning the entire organization, as you said, Greg, the 35,000 men and women of BNSF, aligning them around that operational excellence. You saw that we made progress, as Greg said, in 2025. We continued to make progress in the first quarter of 2026, but we know that we have more work to be done to drive that operational excellence across all areas of our company.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“with our owners, our shareholders, and we really do look forward to the uh the question. So, thank you for joining us on stage again.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“put the asset at risk to try to get to a short-term outcome because a petroleum prices higher or petrol petroleum prices are higher. It's very much continuing to take that that long-term perspective.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, it's interesting and and Warren has said this in the past before. You know, the railroad is a really good reflection of what's happening in the industrial and the consumer economies because our loadings really cut across all the various commodities. You know, we touch agricultural products, we touch coal, the industrial commodities like cement and steel and aggregates. You know, certainly our interotal business, which is such a big part of our business, reflects what's going on with the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“choices now. So, as fuel prices go up, they make choices about what they're buying. And so that's where I get back to if if it is a prolonged higher fuel price environment, I do do believe that we will see that customer impact across our businesses.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, I mean certainly, you know, when you see um when you when you see the increases that have occurred in the in the instant spikes in some cases that occurred certainly on the consumer product side, on the real uh retail side, um it it has affected some of the demand on that side. I would um I would also tell you that we have also faced multiple times at NetJets with a hundred you know dollars a gallon or $100 a barrel pricing. We see those spikes. We see the demand. haven't seen it on the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Great. Thank you, Adam, and thank you, Becky, for the question. We'll now move to station five.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I ran it that that autonomy meant you meant you embraced it and there was a meant you embraced it and there was a meant you embraced it and there was a great amount of uh accountability that great amount of uh accountability that great amount of uh accountability that came with it and sheer pride that you came with it and sheer pride that you came with it and sheer pride that you wanted to do things right. We've got a wanted to do things right. We've got a wanted to do things right. We've got a clear set of uh when we talk about clear set of uh when we talk about clear set of uh when we talk about integrity and how I started it, we have integrity and how I started it, we have integrity and how I started it, we have a lot of expectations a lot of expectations a lot of expectations and that's where both on the uh on the and that's where both on the uh on the and that's where both on the uh on the integrity how they approach managing integrity how they approach managing integrity how they approach managing their business and and servicing their their business and and servicing their their business and and servicing their customers and I've said there's a lot of customers and I've said there's a lot of customers and I've said there's a lot of external factors we we we can we can external factors we we we can we can external factors we we we can we can observe but our primary engagement is observe but our primary engagement is observe but our primary engagement is with their are they managing the risk with their are they managing the risk with their are they managing the risk and risk and foremost do they do they and risk and foremost do they do they and risk and foremost do they do they see themselves as that chief risk see themselves as that chief risk see themselves as that chief risk officer you've heard us discuss many officer you've heard us discuss many officer you've heard us discuss many times are they good allocators of times are they good allocators of times are they good allocators of capital with the capital they have there capital with the capital they have there capital with the capital they have there because even capital you have to manage because even capital you have to manage because even capital you have to manage your operating expense as well I view your operating expense as well I view your operating expense as well I view everything you know that that when we're”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“there's generally some people within our subsidiaries or maybe someone we know that could help them with that with that performance gap because we do treasure um continuous improvement and strongly, as you've heard, believe in uh operational excellence and there's, as I've said, there's room for us to to get better and that's how we would approach the situations where we see the gap and need to close it. Katie, maybe you can probably touch on both. Um, absolutely.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So, thank you for the question and as I said, we absolutely know that it's critically important that we continue to drive an efficient operation, that we continue to have a competitive cost structure, and that we continue to close the gap with our competitor relative to our profitability. There's a couple of specific things that we're working on and it's really about operationalizing”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Thank you, Katie.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Uh yeah. Well, I one I will tell you um you know the one of the I came back on June 1st of 2015 and that Monday Monday afternoon and and many of the team that's up here today we got in”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that Monday afternoon and when we we started building that back Um, I will tell you it was also a reinforcement from probably from Greg. I remember my first board meeting prep and I was excited and we were starting to kind of move and and I was talking about uh growth and we're going to get this right. We're going to grow and Greg pulled me aside in a very kind way and he said, "Why don't you pay $1 back to Warren and work on getting your debt down?" That was a teaching lesson. Uh, I took that to heart. I heard it clearly and I actually already knew that. And so we just started really putting our blinders on and we said safety and service, safety and service. Warren bought NetJets after becoming customer in 1995. Bought nets uh in 1998 and he did a video for us that we still use and he said I want safety and I want service and we've been really focused on”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“great.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Y”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“thank you Adam. Thank you Katie”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“recover those tears from our fromrecover those tears from our from through through the uh either through athrough through the uh either through athrough through the uh either through a direct contract with them or through thedirect contract with them or through thedirect contract with them or through the product we're creating and and and thatproduct we're creating and and and thatproduct we're creating and and and that was a good approach in that we just umwas a good approach in that we just umwas a good approach in that we just um held our course and wanted to continueheld our course and wanted to continueheld our course and wanted to continue to service them. So they yes there isto service them. So they yes there isto service them. So they yes there is financial impacts but our team did a afinancial impacts but our team did a afinancial impacts but our team did a a really remarkable job of addressing itreally remarkable job of addressing itreally remarkable job of addressing it and and really minimizing the impact anyand and really minimizing the impact anyand and really minimizing the impact any of our businessesof our businessesof our businesses um as far as recovering it. Umum as far as recovering it. Umum as far as recovering it. Um that would definitely be at ourthat would definitely be at ourthat would definitely be at our operating level they would be makingoperating level they would be makingoperating level they would be making such a decision. But but overall rightsuch a decision. But but overall rightsuch a decision. But but overall right now our perspective has been there's anow our perspective has been there's anow our perspective has been there's a there's a lot to sort out when it comesthere's a lot to sort out when it comesthere's a lot to sort out when it comes to refunds.to refunds.to refunds. uh what we're eligible for and and so atuh what we're eligible for and and so atuh what we're eligible for and and so at this point in time, we're very muchthis point in time, we're very muchthis point in time, we're very much taking an approach that um uh if it'staking an approach that um uh if it'staking an approach that um uh if it's appropriate, our teams will evaluate itappropriate, our teams will evaluate itappropriate, our teams will evaluate it and and and again, it'll be a discussionand and and again, it'll be a discussionand and and again, it'll be a discussion with our customers and in with a number”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“with our customers and in with a number of them. So, it it's it's an operating subsidiary decision, but we're not naive to it and that we're encouraging them. It's there's a lot to be sorted out at this moment in time and and and we're not pursuing them. that doesn't mean we may not have a a subsidiary and I'll I'll look to our our team on stage here that may be uh pursuing one or seeking one.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“uh not as far as the the reimbursement, but I would say just as far as the impact of the tariffs and what we're seeing with our customers, um you know, I I would say that in early 2025, we saw several of our our customers pulling forward shipments in advance in advance of the tariffs. And um you know we we certainly saw our volumes ramp up at the beginning of 2025 because people were were trying to get ahead of the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“were trying to get ahead of the implementation of the tariffs. So we didimplementation of the tariffs. So we didimplementation of the tariffs. So we did see uh you know an increase in volumessee uh you know an increase in volumessee uh you know an increase in volumes through early 2025. That reallythrough early 2025. That reallythrough early 2025. That really stabilized then in the back part of 2025stabilized then in the back part of 2025stabilized then in the back part of 2025 and then into 2026. I would say that ourand then into 2026. I would say that ourand then into 2026. I would say that our customers have have really adapted tocustomers have have really adapted tocustomers have have really adapted to the tariffs and adjusted to the tariffs.the tariffs and adjusted to the tariffs.the tariffs and adjusted to the tariffs. With that said, it it does cause someWith that said, it it does cause someWith that said, it it does cause some uncertainty and I think where we seeuncertainty and I think where we seeuncertainty and I think where we see that really showing up is, you know,that really showing up is, you know,that really showing up is, you know, it's very difficult for our customersit's very difficult for our customersit's very difficult for our customers from a planning perspective and I Ifrom a planning perspective and I Ifrom a planning perspective and I I think it's keeping some capital on thethink it's keeping some capital on thethink it's keeping some capital on the sidelines as far as investment insidelines as far as investment insidelines as far as investment in manufacturing facilities and it's justmanufacturing facilities and it's justmanufacturing facilities and it's just really the uncertainty of the tariffsreally the uncertainty of the tariffsreally the uncertainty of the tariffs that that really is what we're seeingthat that really is what we're seeingthat that really is what we're seeing reflected with our customers.reflected with our customers.reflected with our customers.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, I mean I would echo both those>> Yeah, I mean I would echo both those>> Yeah, I mean I would echo both those points. one um I would probably use uhpoints. one um I would probably use uhpoints. one um I would probably use uh you know Berkshire Hathaway Autoyou know Berkshire Hathaway Autoyou know Berkshire Hathaway Auto Automotive Jeff Rocker who is an”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“pretty decent spot um, moving forward.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> thank you, Adam.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“We'll move to station six.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Okay. Uh, station station 7.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Hi, Greg.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“There you have it. The 61st Berkshire Hathaway annual meeting is in the books. That was Greg Ael's first time running the show, but he did get a little help from the chairman, Warren Buffett.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“from the chairman, Warren Buffett. Buffett sat down with Becky ahead of theBuffett sat down with Becky ahead of theBuffett sat down with Becky ahead of the afternoon session and delivered a numberafternoon session and delivered a numberafternoon session and delivered a number of newsy comments. Uh we'll kick thingsof newsy comments. Uh we'll kick thingsof newsy comments. Uh we'll kick things off. He kicked things off by saying thatoff. He kicked things off by saying thatoff. He kicked things off by saying that he is staying cautious with his ownhe is staying cautious with his ownhe is staying cautious with his own investments.investments.investments.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“But with stocks sitting at record highsBut with stocks sitting at record highsBut with stocks sitting at record highs and at elevated valuations, Beckyand at elevated valuations, Beckyand at elevated valuations, Becky pressed him on the overall valuationpressed him on the overall valuationpressed him on the overall valuation picture and whether he seespicture and whether he seespicture and whether he sees opportunities anywhere. Here's what heopportunities anywhere. Here's what heopportunities anywhere. Here's what he said.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Abel was also asked uh about his willingness to divest holding companies invest subsidiary companies and whether Berk
hire will remain a conglomerate under his leadership. conglomerate.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> He declined the opportunity to point to>> He declined the opportunity to point to>> He declined the opportunity to point to any daylight between him and Warren onany daylight between him and Warren onany daylight between him and Warren on that. He said there's a Berk
hirethat. He said there's a Berk
hirethat. He said there's a Berk
hire Hathaway way and that's the way we'reHathaway way and that's the way we're”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Hathaway way and that's the way we're going to keep going.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah, I mean, fortunately, we do have a team and teams. It can be a variety of things that surface daily, quarterly, in an annual basis. Uh, always very proud of them. I mean, it's heads down and we're going to work our way through this.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“going to work our way through this.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“So, you're right with energy costs going up. For example, if you think of our chemical businesses,”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“uh we have we have uh Liz Resol, we have we just completed the Oxycam transaction on January 2nd. We closed that. Uh and then we have a third one called LSPI and I like to think of them as our our chemical group. Their inputs went up immediately. Mhm.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Now, that takes time for us to catch up on pricing because we have customer contracts and they do reset and it's a it's a bounce and on the back end they'll be a little slower to correct. So, it's a uh there's a way to adjust for price appropriately and and fairly for both the customer and us, but that takes time. So, I would say the biggest thing is we see im some immediate increase in the input costs across certain businesses.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“>> we know the quality of the businesses”

Mental Models for Running Startups and Businesses, SXSW 2026 on March 16, 2026

“[music][music][music][music] >> Great to be here and thank you for taking the time to come to this session.”

Mental Models for Running Startups and Businesses, SXSW 2026 on March 16, 2026

“Charlie Munger had given a talk a few decades back at Harvard, the psychology of human misjudgment. And then later he revised that talk for Poor Charlie's Almanac, which is wonderful. I try to reread it every year, but it took me many, many years to understand what Charlie was talking about even though he tried to dumb it down for all of us, it took still took me a while. So, I wanted to kind of present some of these things related to mental models in a little bit different context and different format than he does. And mental models are realities that when we encounter them for the first time surprise us. We already understand a lot of things about how the world works, but we'll encounter things periodically which are like, "Huh, I”