Berkshire Annual Meeting in person

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WarAdmiral
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Berkshire Annual Meeting in person

Post by WarAdmiral » Wed Feb 05, 2020 6:42 pm

This years Berkshire Annual Meeting is on May 2 2020

I was wondering if there is value in attending Berkshire's Annual meeting in person versus watching it live on yahoo (or youtube recorded). I have learned so much from watching these two great men on YouTube and reading Berkshire's annual letters that i feel i should go attend this meeting at least once while these men are conducting it.

It is through one of Berkshire's letters that i learned about the "Little Book on Common Sense Investing" by Jack Bogle, which changed my life.

I am an indexer but just bought 1 BRK.B stock so i could get the passes to the meeting.

Has anyone attended the meeting before ? Any pros/cons ? Any tips ?

Thank you.

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Re: Berkshire Annual Meeting in person

Post by saver007 » Wed Feb 05, 2020 7:17 pm

I did it couple years ago for the same reasons.

It was exausting waking up early AM and standing in line.
I had a head ache all day but seeing Warren, Charlie and bill gates from a few feets away was totally worth the effort.

I flew to Kansas City then drove to Omaha instead of flying directly to Omaha to save on flight.

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Re: Berkshire Annual Meeting in person

Post by shelanman » Wed Feb 05, 2020 7:23 pm

I attended a few years ago.

It's fairly expensive to attend -- flights are insane unless you stay longer, and hotels are pretty high too.

But, I had a great time, and it was totally worth going. In the end, I stayed 5 days, and made a nice trip out of it.

The meeting itself is a pretty exhausting day, but at the same time, listening to Warren and Charlie give their honest viewpoints on a wide range of topics is quite interesting.

The "shareholder dinner" at the steakhouse was pretty disappointing, on the other hand.

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Re: Berkshire Annual Meeting in person

Post by Rick Ferri » Wed Feb 05, 2020 7:29 pm

I loved the one I attended. It's like a Rolling Stones concert only for Buffett / Munger groupies.
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Re: Berkshire Annual Meeting in person

Post by abuss368 » Wed Feb 05, 2020 7:47 pm

Interesting. I have thought about this in the past when I owned shares in Berkshire.
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Re: Berkshire Annual Meeting in person

Post by CyclingDuo » Wed Feb 05, 2020 8:05 pm

WarAdmiral wrote:
Wed Feb 05, 2020 6:42 pm
This years Berkshire Annual Meeting is on May 2 2020

I was wondering if there is value in attending Berkshire's Annual meeting in person versus watching it live on yahoo (or youtube recorded). I have learned so much from watching these two great men on YouTube and reading Berkshire's annual letters that i feel i should go attend this meeting at least once while these men are conducting it.

It is through one of Berkshire's letters that i learned about the "Little Book on Common Sense Investing" by Jack Bogle, which changed my life.

I am an indexer but just bought 1 BRK.B stock so i could get the passes to the meeting.

Has anyone attended the meeting before ? Any pros/cons ? Any tips ?

Thank you.
If you have the chance, desire, and the time to go - GO! It's an absolute blast - at least for one time to experience it all!

As mentioned upthread you will be exhausted from standing, sitting, fighting the crowds, and all of the buzz. We live very close by, so it's not been a big deal for us to attend (2 hour drive door to door). You never know, every year could be the last time you get to see the dynamic duo.

Outside of that, watching the live feed with Warren and Charlie with the Q&A is well worth the watch if you cannot attend. Much cheaper as well...

CyclingDuo
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WarAdmiral
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Re: Berkshire Annual Meeting in person

Post by WarAdmiral » Thu Feb 06, 2020 12:54 pm

Thank you all for your input. Will report back on this thread with my experience if i decide to go.

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Re: Berkshire Annual Meeting in person

Post by Caduceus » Tue Feb 11, 2020 5:06 pm

I'd say there's less of a reason to go now. I wish I had gone earlier, maybe seven or eight years earlier. But Buffett now streams the entire meeting live on Youtube so you can watch the whole thing at your own pace. I've read Buffett's shareholder letters back to back three times, Schroeder's biography of him many times over, and I cannot imagine sitting for several hours in an uncomfortable seat watching him answer questions.

You can get all of what he says at these meetings through Youtube - I believe it's live-streamed these days with the whole gaggle of journalists doing the whole "pre-game" and "post-game" commentary thing.

Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years. Think about it this way. Berkshire can be divided into three parts, each of which you can value within a range quite accurately. It has (1) cash, (2) the stock portfolio, (3) operating businesses. Its current market capitalization is around $550 billion. It has around $130 billion in cash, of which $20 billion is reserved for operating purposes, so let's say it has $110 billion of cash. It has a stock portfolio of about $250 billion. $550 - $360 = $190 billion - so that's basically what the market is currently valuing Berkshire Hathaway's operating businesses.

Operating earnings can be lumpy because of the insurance operations (does badly when there are hurricanes, etc.) but, even at roughly $15 billion of operating earnings a year, Berkshire is trading at roughly 12 times its net income. The only other companies I've managed to find coming close to these valuations these days are oil/gas companies.

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Re: Berkshire Annual Meeting in person

Post by oldzey » Tue Feb 11, 2020 5:14 pm

I've sure had fun live streaming it at home the past 3 years:

2017: viewtopic.php?t=218282

2018: viewtopic.php?t=248764

2019: viewtopic.php?t=280335

Never been in person, but looks like a great time.
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Re: Berkshire Annual Meeting in person

Post by simplesimon » Tue Feb 11, 2020 5:17 pm

I went in 2009 when I was in my mid-20’s so I made it a little bit of an adventure. In addition to the Q&A it was very cool meeting people all going for the same reason as you. I ate some great steak, went across the river to Council Bluffs to gamble a little, and randomly connected with a group of locals at an Omaha bar. Great memories!

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Re: Berkshire Annual Meeting in person

Post by flaccidsteele » Wed Feb 12, 2020 12:33 am

WarAdmiral wrote:
Wed Feb 05, 2020 6:42 pm
This years Berkshire Annual Meeting is on May 2 2020

I was wondering if there is value in attending Berkshire's Annual meeting in person versus watching it live on yahoo (or youtube recorded). I have learned so much from watching these two great men on YouTube and reading Berkshire's annual letters that i feel i should go attend this meeting at least once while these men are conducting it.

It is through one of Berkshire's letters that i learned about the "Little Book on Common Sense Investing" by Jack Bogle, which changed my life.

I am an indexer but just bought 1 BRK.B stock so i could get the passes to the meeting.

Has anyone attended the meeting before ? Any pros/cons ? Any tips ?

Thank you.
I’ve owned Berkshire class B since the 90s and can personally say that the meeting is boring as hell. Stay home and watch the highlights on the Internet
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat

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Re: Berkshire Annual Meeting in person

Post by BionicBillWalsh » Wed Feb 12, 2020 1:19 am

I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
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Re: Berkshire Annual Meeting in person

Post by EvelynTroy » Wed Feb 12, 2020 4:43 am

I attended the annual meeting many years ago - like others I was glad I went, great fun and excitement.
I was able to shake Mr. Buffett's hand in a smaller setting at the yearly Yellow Brkers party - that Fri. evening before the meeting.
At that time the get together was held at a local bar downtown - it was a big bar. I see the event is now at a big hotel. Mr. Buffett just walked in and started mingling and visiting with everyone, no speeches, media, lights, etc.
Kind of sounds like he doesn't attend any longer, but not sure.

http://www.yellowbrkers.com/

Have fun if you decide to go.
Evelyn

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Re: Berkshire Annual Meeting in person

Post by abuss368 » Wed Feb 12, 2020 8:09 am

Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years.
No one knows! Warren Buffett has said as they get larger it is becoming increasingly difficult to out perform the S&P 500.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: Berkshire Annual Meeting in person

Post by Caduceus » Wed Feb 12, 2020 9:23 am

abuss368 wrote:
Wed Feb 12, 2020 8:09 am
Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years.
No one knows! Warren Buffett has said as they get larger it is becoming increasingly difficult to out perform the S&P 500.
It will be increasingly difficult to out-perform the S&P 500. That is true, but this is a matter of the time-frame. At present valuations, I think it's quite easy for Berkshire to out-perform. Over very long periods of time, like rolling 30-year periods, I don't think Berkshire, going forward, will deviate very significantly from the performance of the S&P. Those are very different arguments.

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Re: Berkshire Annual Meeting in person

Post by abuss368 » Wed Feb 12, 2020 9:37 am

EvelynTroy wrote:
Wed Feb 12, 2020 4:43 am
I attended the annual meeting many years ago - like others I was glad I went, great fun and excitement.
I was able to shake Mr. Buffett's hand in a smaller setting at the yearly Yellow Brkers party - that Fri. evening before the meeting.
At that time the get together was held at a local bar downtown - it was a big bar. I see the event is now at a big hotel. Mr. Buffett just walked in and started mingling and visiting with everyone, no speeches, media, lights, etc.
Kind of sounds like he doesn't attend any longer, but not sure.

http://www.yellowbrkers.com/

Have fun if you decide to go.
Evelyn
Could you even imagine? Look up and there is Warren Buffett and he shakes your hand.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: Berkshire Annual Meeting in person

Post by petulant » Wed Feb 12, 2020 9:39 am

Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
I'd say there's less of a reason to go now. I wish I had gone earlier, maybe seven or eight years earlier. But Buffett now streams the entire meeting live on Youtube so you can watch the whole thing at your own pace. I've read Buffett's shareholder letters back to back three times, Schroeder's biography of him many times over, and I cannot imagine sitting for several hours in an uncomfortable seat watching him answer questions.

You can get all of what he says at these meetings through Youtube - I believe it's live-streamed these days with the whole gaggle of journalists doing the whole "pre-game" and "post-game" commentary thing.

Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years. Think about it this way. Berkshire can be divided into three parts, each of which you can value within a range quite accurately. It has (1) cash, (2) the stock portfolio, (3) operating businesses. Its current market capitalization is around $550 billion. It has around $130 billion in cash, of which $20 billion is reserved for operating purposes, so let's say it has $110 billion of cash. It has a stock portfolio of about $250 billion. $550 - $360 = $190 billion - so that's basically what the market is currently valuing Berkshire Hathaway's operating businesses.

Operating earnings can be lumpy because of the insurance operations (does badly when there are hurricanes, etc.) but, even at roughly $15 billion of operating earnings a year, Berkshire is trading at roughly 12 times its net income. The only other companies I've managed to find coming close to these valuations these days are oil/gas companies.
What about the unrealized capital gains in the stock portfolio?

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Re: Berkshire Annual Meeting in person

Post by 1789 » Wed Feb 12, 2020 9:45 am

Caduceus wrote:
Wed Feb 12, 2020 9:23 am
abuss368 wrote:
Wed Feb 12, 2020 8:09 am
Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years.
No one knows! Warren Buffett has said as they get larger it is becoming increasingly difficult to out perform the S&P 500.
It will be increasingly difficult to out-perform the S&P 500. That is true, but this is a matter of the time-frame. At present valuations, I think it's quite easy for Berkshire to out-perform. Over very long periods of time, like rolling 30-year periods, I don't think Berkshire, going forward, will deviate very significantly from the performance of the S&P. Those are very different arguments.
I don’t think it will outperform after the two is gone. But who knows.
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Re: Berkshire Annual Meeting in person

Post by Grt2bOutdoors » Wed Feb 12, 2020 9:47 am

petulant wrote:
Wed Feb 12, 2020 9:39 am
Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
I'd say there's less of a reason to go now. I wish I had gone earlier, maybe seven or eight years earlier. But Buffett now streams the entire meeting live on Youtube so you can watch the whole thing at your own pace. I've read Buffett's shareholder letters back to back three times, Schroeder's biography of him many times over, and I cannot imagine sitting for several hours in an uncomfortable seat watching him answer questions.

You can get all of what he says at these meetings through Youtube - I believe it's live-streamed these days with the whole gaggle of journalists doing the whole "pre-game" and "post-game" commentary thing.

Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years. Think about it this way. Berkshire can be divided into three parts, each of which you can value within a range quite accurately. It has (1) cash, (2) the stock portfolio, (3) operating businesses. Its current market capitalization is around $550 billion. It has around $130 billion in cash, of which $20 billion is reserved for operating purposes, so let's say it has $110 billion of cash. It has a stock portfolio of about $250 billion. $550 - $360 = $190 billion - so that's basically what the market is currently valuing Berkshire Hathaway's operating businesses.

Operating earnings can be lumpy because of the insurance operations (does badly when there are hurricanes, etc.) but, even at roughly $15 billion of operating earnings a year, Berkshire is trading at roughly 12 times its net income. The only other companies I've managed to find coming close to these valuations these days are oil/gas companies.
What about the unrealized capital gains in the stock portfolio?
What about them? They aren’t realized as in available unless they are sold. It’s the underlying dividend income discounted that you might take into account but unrealized gains can change on a dime.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: Berkshire Annual Meeting in person

Post by MichCPA » Wed Feb 12, 2020 9:49 am

Caduceus wrote:
Wed Feb 12, 2020 9:23 am
abuss368 wrote:
Wed Feb 12, 2020 8:09 am
Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years.
No one knows! Warren Buffett has said as they get larger it is becoming increasingly difficult to out perform the S&P 500.
It will be increasingly difficult to out-perform the S&P 500. That is true, but this is a matter of the time-frame. At present valuations, I think it's quite easy for Berkshire to out-perform. Over very long periods of time, like rolling 30-year periods, I don't think Berkshire, going forward, will deviate very significantly from the performance of the S&P. Those are very different arguments.
The total return of BRK-B is 20% behind VOO over the past 10 years, 'almost certain' seems like a stretch. I think its probably a 50-50 shot. While the valuations are good, Buffett and Co haven't really done overly well with their tech investing. It took way too long to realize that IBM is a zombie that gets most of its revenue by buying business software, killing development, and jacking up the price until its cheaper for its customers to switch.

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Re: Berkshire Annual Meeting in person

Post by Caduceus » Wed Feb 12, 2020 9:52 am

1789 wrote:
Wed Feb 12, 2020 9:45 am

I don’t think it will outperform after the two is gone. But who knows.
I happen to agree. I don't think there will be anyone quite like Buffett again. People have this image of him in their minds because of his folksy, down-to-earth style. But what he's done has been extraordinarily difficult and his genius is singular. The people they've hired to replace him and Munger do not even come close. You look at some of the types of things Combs/Weschler are buying (Amazon), and this is something Buffett would never have bought in a million years at current prices.

But note that I did not say that Berkshire will outperform the S&P 500 in general. I said that at present valuations, I am happy to make quite a big bet that it will out-perform in the next decade.

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Re: Berkshire Annual Meeting in person

Post by flaccidsteele » Wed Feb 12, 2020 11:28 am

Caduceus wrote:
Wed Feb 12, 2020 9:52 am
1789 wrote:
Wed Feb 12, 2020 9:45 am

I don’t think it will outperform after the two is gone. But who knows.
I happen to agree. I don't think there will be anyone quite like Buffett again. People have this image of him in their minds because of his folksy, down-to-earth style. But what he's done has been extraordinarily difficult and his genius is singular. The people they've hired to replace him and Munger do not even come close. You look at some of the types of things Combs/Weschler are buying (Amazon), and this is something Buffett would never have bought in a million years at current prices.

But note that I did not say that Berkshire will outperform the S&P 500 in general. I said that at present valuations, I am happy to make quite a big bet that it will out-perform in the next decade.
Bold call

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Re: Berkshire Annual Meeting in person

Post by WarAdmiral » Wed Feb 12, 2020 1:33 pm

Caduceus wrote:
Wed Feb 12, 2020 9:52 am
1789 wrote:
Wed Feb 12, 2020 9:45 am

I don’t think it will outperform after the two is gone. But who knows.
I happen to agree. I don't think there will be anyone quite like Buffett again. People have this image of him in their minds because of his folksy, down-to-earth style. But what he's done has been extraordinarily difficult and his genius is singular. The people they've hired to replace him and Munger do not even come close. You look at some of the types of things Combs/Weschler are buying (Amazon), and this is something Buffett would never have bought in a million years at current prices.

But note that I did not say that Berkshire will outperform the S&P 500 in general. I said that at present valuations, I am happy to make quite a big bet that it will out-perform in the next decade.
Didn't many of us think Apple will lose it's charm after Steve Jobs ? Look where it is now. Berkshire may shine even more after these two are gone.

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Re: Berkshire Annual Meeting in person

Post by dm200 » Wed Feb 12, 2020 1:35 pm

WarAdmiral wrote:
Wed Feb 05, 2020 6:42 pm
This years Berkshire Annual Meeting is on May 2 2020
I was wondering if there is value in attending Berkshire's Annual meeting in person versus watching it live on yahoo (or youtube recorded). I have learned so much from watching these two great men on YouTube and reading Berkshire's annual letters that i feel i should go attend this meeting at least once while these men are conducting it.
It is through one of Berkshire's letters that i learned about the "Little Book on Common Sense Investing" by Jack Bogle, which changed my life.
I am an indexer but just bought 1 BRK.B stock so i could get the passes to the meeting.
Has anyone attended the meeting before ? Any pros/cons ? Any tips ?
Thank you.
No, but this sure sounds like a "Life Bucket List" item ;)

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Re: Berkshire Annual Meeting in person

Post by Caduceus » Wed Feb 12, 2020 1:51 pm

WarAdmiral wrote:
Wed Feb 12, 2020 1:33 pm

Didn't many of us think Apple will lose it's charm after Steve Jobs ? Look where it is now. Berkshire may shine even more after these two are gone.
Berkshire is not at all like Apple. The whole concept behind Berkshire is capital allocation, not innovation. You got a whole bunch of operating businesses in boring industries - insurance, utilities, brick, paint, underwear (you get the point) - that generate cash for Berkshire headquarters to invest in. Berkshire has $130 billion in cash now because its businesses have no need of this cash to invest for growth or to mitigate depreciation, etc. For decades, the person deciding where the excess capital goes - what's the next business to buy - has basically been Buffett. Right now, the cash and portfolio portion of Berkshire is worth more than the sum of its operating businesses - to give a sense of how important this function is.

It will still be a strong business when he goes. GEICO won't disappear. The railroads won't disappear. And so on. But no one's going to be able to allocate capital like Buffett does, especially not at such ginormous sums. The days of out-performance where you get 23% compounded returns are over. The only reason Berkshire will do better than the S&P 500 at present valuations is just a function of price - the market's valuing Berkshire very inexpensively in relation to its earnings and portfolio.

I wish he had a thousand years more to go - there won't be an investment great like him ever again. And you know, nearly all of it is going to charity. So also likely to not have a philanthropic great like him again too.

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Re: Berkshire Annual Meeting in person

Post by petulant » Wed Feb 12, 2020 2:50 pm

Grt2bOutdoors wrote:
Wed Feb 12, 2020 9:47 am
petulant wrote:
Wed Feb 12, 2020 9:39 am
Caduceus wrote:
Tue Feb 11, 2020 5:06 pm
I'd say there's less of a reason to go now. I wish I had gone earlier, maybe seven or eight years earlier. But Buffett now streams the entire meeting live on Youtube so you can watch the whole thing at your own pace. I've read Buffett's shareholder letters back to back three times, Schroeder's biography of him many times over, and I cannot imagine sitting for several hours in an uncomfortable seat watching him answer questions.

You can get all of what he says at these meetings through Youtube - I believe it's live-streamed these days with the whole gaggle of journalists doing the whole "pre-game" and "post-game" commentary thing.

Berkshire is almost certain to out-perform the U.S. total stock market index in the next 10 years. Think about it this way. Berkshire can be divided into three parts, each of which you can value within a range quite accurately. It has (1) cash, (2) the stock portfolio, (3) operating businesses. Its current market capitalization is around $550 billion. It has around $130 billion in cash, of which $20 billion is reserved for operating purposes, so let's say it has $110 billion of cash. It has a stock portfolio of about $250 billion. $550 - $360 = $190 billion - so that's basically what the market is currently valuing Berkshire Hathaway's operating businesses.

Operating earnings can be lumpy because of the insurance operations (does badly when there are hurricanes, etc.) but, even at roughly $15 billion of operating earnings a year, Berkshire is trading at roughly 12 times its net income. The only other companies I've managed to find coming close to these valuations these days are oil/gas companies.
What about the unrealized capital gains in the stock portfolio?
What about them? They aren’t realized as in available unless they are sold. It’s the underlying dividend income discounted that you might take into account but unrealized gains can change on a dime.
Well, I'm just suggesting that the portfolio isn't worth the current market value of the holdings since sale would require realizing the capital gains. And, at least some of the future gains of the portfolio would come from capital appreciation, not the dividends. Those future gains will be double-taxed since they're inside the C corporation. Then, even after the corporate dividends received deduction, the stock holdings are still providing double-taxed dividend income. The stock portfolio probably needs to be discounted from where you've put it--and after doing that, the implied P/E for remaining businesses will be higher.

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Attending the Berkshire Hathaway Annual Shareholders Meeting

Post by Tbonerazor » Wed Feb 12, 2020 3:22 pm

[Thread merged into here, see below. --admin LadyGeek]

Hi Bogleheads,

Returning to the forum after a while.
It has long been my dream to attend the Annual Shareholders meeting of Berkshire Hathaway in Omaha. For this, I had purchased one share of BRK B stock through Fidelity as I have a taxable account with them.
However the dates for the meeting itself have been put forth. But I have received no communication from BRK to obtain passes. It seems they attach a perforation with their annual report. (https://www.theinvestorspodcast.com/how ... l-meeting/).
I am just concerned i might be too late to the party. So I need some inputs on attending the event and planning travel.
  • How do i obtain passes if i have not obtained any communication from BRK or Fidelity yet?
  • Ideal airport to fly into for cheaper fares (like Kansas City?). I am flying from the NY metro/ NJ area. I don't mind renting a car and driving.
  • Ideal time to book hotels/accommodation before the prices become prohibitively costly. Me and my wife will be traveling.
  • Apart from the Q&As with Warren Buffett and Charlie Munger, any other must-do sessions?
Thanks.

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Re: Berkshire Annual Meeting in person

Post by Caduceus » Wed Feb 12, 2020 4:17 pm

petulant wrote:
Wed Feb 12, 2020 2:50 pm

Well, I'm just suggesting that the portfolio isn't worth the current market value of the holdings since sale would require realizing the capital gains. And, at least some of the future gains of the portfolio would come from capital appreciation, not the dividends. Those future gains will be double-taxed since they're inside the C corporation. Then, even after the corporate dividends received deduction, the stock holdings are still providing double-taxed dividend income. The stock portfolio probably needs to be discounted from where you've put it--and after doing that, the implied P/E for remaining businesses will be higher.
What do you think the mark-down should be? Take a look at Berkshire's equity portfolio and you'll see lots of positions that have been there from basically forever. Buffett has been remarkably sensitive to taxes. Let's put it this way - Berkshire tends to own many of its securities for a long time, and when it sells them off, the present value of the tax burden incurred by future capital gains is not going to impact the calculation much. To raise the implied operational P/E by even 1, the present value of the future tax burden will need to be something like 15 - 20 billion, which obviously, it isn't. It might raise it by two decimal points.

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Re: Berkshire Annual Meeting in person

Post by LadyGeek » Wed Feb 12, 2020 4:44 pm

I merged Tbonerazor's post into the on-going discussion.
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Re: Berkshire Annual Meeting in person

Post by btq96r » Wed Feb 12, 2020 4:47 pm

I think it would be worth the trip if for no other reason than to experience it before time takes these two men away from us. I have to imagine once they pass it won't be anywhere near the banner event it is today.
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Re: Berkshire Annual Meeting in person

Post by petulant » Wed Feb 12, 2020 6:50 pm

Caduceus wrote:
Wed Feb 12, 2020 4:17 pm
petulant wrote:
Wed Feb 12, 2020 2:50 pm

Well, I'm just suggesting that the portfolio isn't worth the current market value of the holdings since sale would require realizing the capital gains. And, at least some of the future gains of the portfolio would come from capital appreciation, not the dividends. Those future gains will be double-taxed since they're inside the C corporation. Then, even after the corporate dividends received deduction, the stock holdings are still providing double-taxed dividend income. The stock portfolio probably needs to be discounted from where you've put it--and after doing that, the implied P/E for remaining businesses will be higher.
What do you think the mark-down should be? Take a look at Berkshire's equity portfolio and you'll see lots of positions that have been there from basically forever. Buffett has been remarkably sensitive to taxes. Let's put it this way - Berkshire tends to own many of its securities for a long time, and when it sells them off, the present value of the tax burden incurred by future capital gains is not going to impact the calculation much. To raise the implied operational P/E by even 1, the present value of the future tax burden will need to be something like 15 - 20 billion, which obviously, it isn't. It might raise it by two decimal points.
No idea, but I think there needs to be one. $15-20 billion might be reasonable. The cash pile might also need a haircut since interest income is double-taxed before getting to shareholders and even returning the cash hoard, if not used for acquisition, could get taxed.

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Re: Berkshire Annual Meeting in person

Post by oldzey » Wed Feb 12, 2020 8:42 pm

BionicBillWalsh wrote:
Wed Feb 12, 2020 1:19 am
I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
That 7,476 mile trip to Omaha (one way) from the Sandwich Islands would definitely be a drawback.
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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Re: Berkshire Annual Meeting in person

Post by oldmotos » Thu Feb 13, 2020 9:56 pm

My wife and I went about 7 years ago and had a good time. We drove my truck over and bought some living room furniture using the "Berkshire Discount" at Nebraska Furniture Mart. We always planned on going back but it hasn't worked out. My wife who shows little interest in investing loved listening to Warren & Charlie.

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Re: Berkshire Annual Meeting in person

Post by Bruce » Fri Feb 14, 2020 12:06 am

Enjoyed it one time, went with a pilot friend and left at the break to tour the Net Jets fleet out at the airport. Amazing display of different corporate jets. Those who can afford Net Jets really do live differently then you and me.

Once was enough for me, but glad I went. The trade show of Berkshire company’s product demos and displays was interesting as well, and I am sure has only gotten bigger.
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Re: Berkshire Annual Meeting in person

Post by james22 » Fri Feb 14, 2020 8:59 am

Caduceus wrote:
Wed Feb 12, 2020 9:52 am
I am happy to make quite a big bet that it will out-perform in the next decade.
Me too.

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Re: Berkshire Annual Meeting in person

Post by BionicBillWalsh » Sun Feb 23, 2020 4:57 pm

oldzey wrote:
Wed Feb 12, 2020 8:42 pm
BionicBillWalsh wrote:
Wed Feb 12, 2020 1:19 am
I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
That 7,476 mile trip to Omaha (one way) from the Sandwich Islands would definitely be a drawback.
Your map app has let you down.

~ 7476/2

Still would be a pain. Especially with life in the time of Corona.
Jerry Garcia: If I knew the way...I would take you home.

Marlon Marlin
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Re: Berkshire Annual Meeting in person

Post by Marlon Marlin » Sun Feb 23, 2020 7:07 pm

Thought I read that Warren and Charlie aren't going to be present (or presenting) this year.
Some people are so poor, all they have is money.

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Re: Berkshire Annual Meeting in person

Post by KaskadeForever » Sun Feb 23, 2020 7:20 pm

I belie
Marlon Marlin wrote:
Sun Feb 23, 2020 7:07 pm
Thought I read that Warren and Charlie aren't going to be present (or presenting) this year.
In the annual letter, Warren said Ajit Jain and Greg Abel will be joining him and Charlie in taking questions.

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Re: Berkshire Annual Meeting in person

Post by Marlon Marlin » Sun Feb 23, 2020 7:23 pm

KaskadeForever wrote:
Sun Feb 23, 2020 7:20 pm
I belie
Marlon Marlin wrote:
Sun Feb 23, 2020 7:07 pm
Thought I read that Warren and Charlie aren't going to be present (or presenting) this year.
In the annual letter, Warren said Ajit Jain and Greg Abel will be joining him and Charlie in taking questions.
Okay. Sounded unclear. Guess the new guys will be in addition, not instead of.
Some people are so poor, all they have is money.

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Re: Berkshire Annual Meeting in person

Post by oldzey » Mon Feb 24, 2020 1:15 am

BionicBillWalsh wrote:
Sun Feb 23, 2020 4:57 pm
oldzey wrote:
Wed Feb 12, 2020 8:42 pm
BionicBillWalsh wrote:
Wed Feb 12, 2020 1:19 am
I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
That 7,476 mile trip to Omaha (one way) from the Sandwich Islands would definitely be a drawback.
Your map app has let you down.

~ 7476/2

Still would be a pain. Especially with life in the time of Corona.
Hmm... here's my map app: Link
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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Re: Berkshire Annual Meeting in person

Post by BionicBillWalsh » Mon Feb 24, 2020 1:31 am

oldzey wrote:
Mon Feb 24, 2020 1:15 am
BionicBillWalsh wrote:
Sun Feb 23, 2020 4:57 pm
oldzey wrote:
Wed Feb 12, 2020 8:42 pm
BionicBillWalsh wrote:
Wed Feb 12, 2020 1:19 am
I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
That 7,476 mile trip to Omaha (one way) from the Sandwich Islands would definitely be a drawback.
Your map app has let you down.

~ 7476/2

Still would be a pain. Especially with life in the time of Corona.
Hmm... here's my map app: Link
There are the Sandwich Islands...and there are the South Sandwich Islands. They are oceans apart. :wink:
Jerry Garcia: If I knew the way...I would take you home.

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Re: Berkshire Annual Meeting in person

Post by oldzey » Mon Feb 24, 2020 1:52 am

BionicBillWalsh wrote:
Mon Feb 24, 2020 1:31 am
oldzey wrote:
Mon Feb 24, 2020 1:15 am
BionicBillWalsh wrote:
Sun Feb 23, 2020 4:57 pm
oldzey wrote:
Wed Feb 12, 2020 8:42 pm
BionicBillWalsh wrote:
Wed Feb 12, 2020 1:19 am
I enjoy the heck out of the internet streaming of the whole program. Bloomberg usually does pretty good coverage of the event as well and it is fun to see Warren and Charlie interact with the media.

Warren's annual letter is absolute must reading for investors, intellects, historians, and all Americans. He has a way of distilling contemporary and financial topics to their absolute fundamentals and always has a unique viewpoint that is worth hearing.

That said...a trip to Omaha is about as appealing as a root canal to me.
That 7,476 mile trip to Omaha (one way) from the Sandwich Islands would definitely be a drawback.
Your map app has let you down.

~ 7476/2

Still would be a pain. Especially with life in the time of Corona.
Hmm... here's my map app: Link
There are the Sandwich Islands...and there are the South Sandwich Islands. They are oceans apart. :wink:
Hehe - gotcha - my bad. :beer
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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