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and warn does not listen to advice and he really doesn't even listen to vice
from charlie he's has the same when i get up in the morning i look in the
mirror and at that point everybody's had their say
and that and that's it i mean he really i mean do you should you should try
giving him advice i have believe me i mean you see it literally see his eyes
kinda go off into somewhere direction
mean he does not listed
so it's harley is somebody they actually listens to
any early days of course that changed weren't investing style because charlie
kept getting him to focus on good companies quality companies could come
these quality copies
these days you have their social friends
you know charlie doesn't have any role at all in many berkshire and he kind of
makes jokes about that
but their social front
satellite
messages and teachings permissible to do so younger
like me and constructionist general
well i think that the most important
dating that he tells on students that i've heard him say
that i'm idaho people really listen to is to follow your passion to do what you
really wind to do
and not waste time with resume filling jobs
and not work for anybody who makes your stomach turn
because army
you can't really get a head that way communi seem like it for a while but in
the end
the odds are better if you really what what you're doing
that you'll really really succeed
through
hall you have to do is walked to the via john mcfarlane said for a question
question i mean this is something you really surprised me and you touched on
in dallas column
deo having having
metal watched alkane for some experience for me was
worries surprise that he invested and grown men
and uh... one thing to do it
i was a little surprised
because he's taking some of the same risks
you know i think he's had a lot of her time to get to know colleagues
management over decades
and i think he's more comfortable they understands the inner workings of that
bank but it's still an investment bank
i think that d
one has been impulsive once or twice in his career in solid was a case where he
fell in love with time different gone
latin scholar police management
but he's getting another rates premium to do it just like was solomon
i do think that one factor that's different as they call it is going to be
transformed into into a delivers commercial bank
and it's going to be operated with different regulation
and that might that isn't enough after that i could say okay
i can understand this
but yeah just from somewhere
that's gala and that the other problem is that you know he really doesn't and
weren't a lot of paying people to begin with i mean that's the it you know
something that
he does won't save reluctantly but
you hear him say me
so-and-so it would take three people to replace them and that's true and they
wonder why my nyc and paid three times as much to me the big the people who
work for berkshire hathaway are not pain you know
like wall streeters or even like they might not make somewhere else so
undi when he started boom
beat on the board of solomon he was just stunned at the way people on wall street
are paid in really almost with a moral kind of a pendant salad and there were
some justification to that because it's a heads they win tails they don't listen
to a ***
so-called mad at me bank i_t_n_ and you know he's not a on the board and alright
you know somehow he's reconciled until today's
house we talked about this a little the other day dot com
given the deep dive you did with both barcode and berkshire and given your
background the insurance industry
one of the industry that while there certainly appears the company's training
in a meaningful discount to the group
just what are your thoughts meant just seems like that's tremendous disconnect
aka lead the way you describe the company they don't take at risk
uh...
there's a disconnect from any one of my missing
army wool was found this email instead
two-way berkshire traded and that's a value of the country didn't have much
connection to each other
there just wasn't connections
and particularly it was rare that you ever saw and i think the sister of
stocks in general
companies that don't and there's not a penalty for taking such a breast
which also means there's not a reward
taking cong
less risk
and the only way you see it is over a long period of time where a company like
berkshire is able to build its book value
that mortgage ali had to say don't go back to go well
cc these are companies that are losing billions of dollars because they've
taken the rescue their stocks are getting killed
wet you know berkshire isn't so to some extent they're not going backwards that
in terms of value
you know it's trading at
what you could argue is a discount to its fair value
it's not the cheapest it's ever been
that it's certainly not getting the kind of premium that you might think
that may be because of words age
uh... i was interested in here and more
about uh... to relationship as our research analyst and um... needed some
the content of you're our research reports s specifically keira blossoming
for valuation of berkshire that kind of thing
well and they'd spend five years since high standing research under trip and i
had a model
aunt that i use for i basically valued the flight of the company
and looked at its future growth and learning and effects out of that to the
to the book value or it could appear on the rest of the
on parents
uh...
you know and it was a very you know i suggested that people use their own
growth assumptions because
you know it can be it can be anything
i don't have it in front of me but i'd
believe it's published on the internet if anybody would like to keep it to have
a copy of it
room
palestine i'm
really
interested in your review
mannered recent berkshire and the ability of berkshire to retain them
after warren buffett
yell and a lot of the markup actually quite old and they will be retained a
leading away
you know because they're it's time for them to be retired
odd and her son and i think our hanging around because they like working for
worrying
uh... so that's going to very significant challenge that the next year
will face
now they've got successors that they've identified for warren
i think another challenge the next two yellow faces are those the right people
because he select the nutrition in their own successors
it's it's going to be challenged it it was really a lot of it depends on they
pick they could make a great or a terrible decision of choosing the next
email to poor kid
hi on not just not enough research are
darden
at the risk of getting to granular on kinda interested in those scratched
notes that you're talking about on
and the the when case you're talking about
if someone who was
who is very quantitatively oriented in those excel
looked at that and put it into
a model do you think that
people could understand what's going on on inside warrants headwind
find out your company and then try and actually replicate that
yes emi what you would see is a columnist said sales
and a columnist expenses anaconda said profits and it would have kentucky plant
you a little planet kansas city plan this plan that plan
and it would have for square singapore dark where for clarity fifty-eight dada
and that would tend
with the last player that was reported
that's what is its that's all it is
and that the difference from a model as it would not add the quarters at and it
would not protect anything into the future
that's you know in other words he looked at what had been reported
and he said they've earned milic you know they've had a million in sales
favorite you know this many thousand
i what does not
they've earned this i want this can they do it yes no
that's this is it
and up margin of safety i mean there's a saying hong
click onto my
i think it's funny intelligent investor that the margin of safety
the purpose of the margin of safety is touring render forecast unnecessary
one more question
them a little bit of a different note number of political pundits are throwing
out mister bacchus names potential candidate
for out tonight secretary of treasury under president-elect obama tom for
expenses with mister buffett you really think this would be something you'd be
love willing to leave berkshire four
so this is a call in the servants
brand
he would have to be han shot with a pledge art
interactive stains to washington dc
execute i think they've already and sort of semi announced to the candidates are
and the reason he's not one of them is because he would never ever
he would never be taken away for would never spent his day meetings he would
never let somebody else catalyst time
you know there's gonna be kind of a kitchen cabinet an informal advisers and
he did that for source nickel hilton for obama
and
house though i think you so much we mentioned earlier uh... a couple things
one was that
uh... we have gifts for all our presenters but they were going to
receive those uh... in real time we're making an exception in your case
so we do have a small gift for you
have also said earlier when we started the the conference that
uh... mister jefferson's we refer to him would be very proud
of what we're doing here as part of his academic over elections university
uh... he also said that in a relationship you had was a
another of our forefathers and some two hundred years ago
i don't think the parallel between now and warren buffett charlie munger would
work
but a very interesting relationship of john adams
anyone's told john now that i cannot live without books
and i think that's appropriate this is uh...
this gifted has that quote uh...
replicated
and we thank you so much for being with us
ha