Buffet to shareholders: No, I will not play "Freebird"

Posted by Keith Hahn, May 07, 2007, 12:56pm

BuffettHendrix.jpg Clogging up O’Hare, Charon to the Midwest, one puddle jumper at a time, over 25,000 people descended upon Omaha this weekend for Berkshire Hathaway’s annual shareholder meeting. Nicknamed the “Woodstock of Capitalism,” Warren Buffet did headline this year’s event with a little ukulele playing (although he didn’t light it on fire afterwards, or play with his teeth).

The meeting is a Berkshire Hathaway portfolio marketing bonanza, with swag galore from the Berkshire companies that do things besides sell insurance (49% of Berkshire Hathaway’s earnings before taxes come from insurance). This means you can get tighty-whities from a Fruit of the Loom booth but probably can’t go speed dating with the Geico cavemen.

Each year, Buffet sits down with his business partner Charlie Munger in a basketball gym and makes Bill Gates jealous during a slow dance fields questions from shareholders. The contentious issue this year - Berkshire Hathaway’s 1.3% stake in PetroChina, which does a lot of business in Sudan. An activist shareholder proposed a motion for the company to divest from PetroChina but shareholders are especially pro-genocide this year. Buffet did comment on the unfortunate circumstances in Sudan and the futility of telling the Chinese government what to do. Other social commentary included a Buffet rant on the “socially revolting” state-sponsored growth of casino gambling.

Like any good summer camp, status at a Berkshire Hathaway shareholder meeting is determined not necessarily by the number of shares you own, but by seniority. From Jeff Matthews’ blog:

In fact, there is a pecking order to the entire affair that will persist all weekend, at each event: an individual’s status is determined by the length of time the person has been attending a Berkshire meeting.

Buffett headlines at Berkshire gathering – [BBC]
At Buffet's Diversified Berkshire Hathaway, Insurance Still #1 – [Insurance Journal]
Pilgrimage to Omaha, Part I: This is Big – [Jeff Matthews Is Not Making This Up]

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Posted in: Berkshire Hathaway, Warren Buffett

Comments

Posted by BSD, May 07, 2007 2:29PM

Nice! Your photochop skillz are getting better everyday guys.

Posted by The Graphics Guy, May 07, 2007 2:31PM

Thanks!

Posted by anoymous, May 07, 2007 4:41PM

There is something particularly revolting about Buffet groupies. I can see it now. A bunch of fat, smug, Middle Americans swaying en masse to the ryhthms emanating from a small, bespectacled man playing a ukelele. Self-absorbed ex-hippes and Baby Boomers make me sick. The whole scene makes me want to vomit and then kick a cat.

Posted by , May 08, 2007 7:00AM

Having attended the meeting, I absolutely concur that Buffett groupies are fat, smug, middle america, self-absorbed ex-hippies (i don't think anyone at the meeting was a hippy...pure squaresville) and baby boomers - they need some lessons in humility from the elite hipster gen Xers in manhattan and greenwich.

Don't get me wrong, I'm in my 20's and was definitely at the low end of the age and weight distribution. While I respect Warren B, I felt increasing disgust with every sychophant and blindly worshipping disciple of buffett and munger who'd pitch the same worn questions:
"isn't wall street evil? i hate hedge funds, private equity, efficient market hypothesis, uppity kids under 70..."

then buffett goes on to complain how new fangled things called derivatives are dangerous because he doesn't understand them and therefore they must be "financial weapons of mass destruction." this is also why he doesn't own a VCR, much less a computer.

but aside from his geriatric aversion to technology and 30 year old financial inventions, the "evil" buffett is a pretty brilliant fellow who deserves respect...even if it only comes from fat, smug middle americans and a scrappy, smug kid like me.

Posted by , May 08, 2007 8:31AM

There is a factual error in this article. PetroChina does NO business in Sudan, both sides - Buffett and the "activist shareholder" along with her husband made this very clear at the public debate at the meeting. The issue is management overlap and actions of the parent company.
The meeting is fun to go to once, it's hilarious that the weekend is so obviously a chance to increase sales volume, almost no "free" stuff at all. A true Buffett experience. "You have money and I want it - so buy some of this special meeting junk." A sales clerk at the Nebraska furniture mart let us know that the "shareholder discount" is not even as deep as the employee discount. Perfect.

Posted by bones, May 10, 2007 1:49PM

You all are pathetic. go live in sudan, iran, china, n korea. just leave the USA and never look back!!!!!!!!

Posted by Bill Mitchell, May 13, 2007 8:41PM

"Woodstock of Capitalism" is silly, and your picture is funny, but "anonymous" is right that PetroChina does no business in Sudan.

The Sudan evildoer is China National Petroleum Corp (CNPC), which is 100% owned by the Chinese government. By coincidence, they own 88% of PetroChina as well.

Now, just a minute. America can't even influence China with aircraft carriers and ICBMs. How is Buffett supposed to affect them by selling his puny 1.4% of PetroChina, which doesn't even do business in Sudan, and which has no control over its parent, CNPC?

The "activist shareholder" is pretty mixed up.

Posted by guest, May 13, 2008 12:17AM

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Here is a 10 min. audio book summary:
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