Life after 50
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Berkshire investors mull a future without Buffett
Matthew Cranston United States correspondent May 7, 2023
https://www.afr.com/world/north-ame...mull-a-future-without-buffett-20230507-p5d6ba
Omaha | At Berkshire Hathaway’s 59th annual general meeting, shareholders waited in long queues to snap up everything from Warren Buffett boxer shorts to golf balls.
Although sales of merchandise featuring the company’s elderly founders were strong, the reasons were not necessarily something to celebrate. At 92 and 99, veteran investors Mr Buffett and Mr Munger might not be around for the next AGM.
Susy Abbondi, and investor in Berkshire for 20 years, waited an hour and a half to buy two pillows. Matthew Cranston
Many investors said they were attending the so-called “Woodstock for capitalists” meeting in the midwest US city of Omaha for the same reason: key man risk.
Stephen Tedder, an ophthalmologist, who has 70 per cent of his wealth tied up in Berkshire Hathaway shares, said this could be the billionaire investors’ last AGM, but he was confident the conglomerate would still thrive.
“I think when they are gone, the share price will probably have a temporary hiccup just because Wall Street sells on news. I’m thinking probably 5 per cent [drop] but within a month or two it’ll probably be right back.”
About 36 per cent of professional investors thought there was a “Buffett” premium in the Berkshire share price, but it was less than 5 per cent, according to a Bloomberg survey. Among retail shareholders, that view is about 28 per cent.
Only 20 per cent of professional investors and 22 per cent of retail investors said the “Buffett factor” exceeded 10 per cent.
Stephen Tedder, a Berkshire Hathaway shareholder, says time is running out for the founders. Matthew Cranston
And only 16 per cent of professional investors and 18 per cent of retail investors said there was no premium, and that successor Greg Abel would keep the company chugging along.
For many though, shelling out for Mr Buffett and Mr Munger paraphernalia was also key. Susy Abbondi, an investor in Berkshire for 20 years, waited an hour and a half to buy Mr Buffett and Mr Munger pillows.
“Part of me was like, ‘I must come this year because Charlie is 99’, I mean, how many more years is he going to be around?”
Brad Wetherill travelled from Alberta in Canada after “procrastinating” about attending for 20 years. “Time is not on Warren or Charlie’s side. So it’s now or ever.”
During the annual movie shown by Berkshire at the beginning of the AGM, several historical clips of Mr Buffett and Mr Munger answering questions about their age from as far back as 32 years were aired.
“An idiot would have a very good record [running the company] long after the founders are dead,” Mr Munger said in 1995, referring to the “autopilot” nature of some of their business investments.
For Australian investors attending the AGM, Mr Munger is probably still right.
Australian Mark O’Hare, who has been to 12 AGMs, said while the succession plan had long been on the agenda with shareholders, how well it had been planned was not as well understood.
“Munger often says – if Warren was smart enough to set up the company so successfully, why would you not have confidence to think he has carefully planned for his and Munger’s succession?” Mr O’Hare said.
“As to the volatility of the share price, post Buffett’s death, I think there will inevitably be a decline. However, I think this will be as a result of speculation by short-term holders.
“Long-term shareholders, of which Berkshire has the most of any S&P 500 company, are well-prepared for this event.”
Matthew Cranston United States correspondent May 7, 2023
https://www.afr.com/world/north-ame...mull-a-future-without-buffett-20230507-p5d6ba
Omaha | At Berkshire Hathaway’s 59th annual general meeting, shareholders waited in long queues to snap up everything from Warren Buffett boxer shorts to golf balls.
Although sales of merchandise featuring the company’s elderly founders were strong, the reasons were not necessarily something to celebrate. At 92 and 99, veteran investors Mr Buffett and Mr Munger might not be around for the next AGM.
Susy Abbondi, and investor in Berkshire for 20 years, waited an hour and a half to buy two pillows. Matthew Cranston
Many investors said they were attending the so-called “Woodstock for capitalists” meeting in the midwest US city of Omaha for the same reason: key man risk.
Stephen Tedder, an ophthalmologist, who has 70 per cent of his wealth tied up in Berkshire Hathaway shares, said this could be the billionaire investors’ last AGM, but he was confident the conglomerate would still thrive.
“I think when they are gone, the share price will probably have a temporary hiccup just because Wall Street sells on news. I’m thinking probably 5 per cent [drop] but within a month or two it’ll probably be right back.”
About 36 per cent of professional investors thought there was a “Buffett” premium in the Berkshire share price, but it was less than 5 per cent, according to a Bloomberg survey. Among retail shareholders, that view is about 28 per cent.
Only 20 per cent of professional investors and 22 per cent of retail investors said the “Buffett factor” exceeded 10 per cent.
Stephen Tedder, a Berkshire Hathaway shareholder, says time is running out for the founders. Matthew Cranston
And only 16 per cent of professional investors and 18 per cent of retail investors said there was no premium, and that successor Greg Abel would keep the company chugging along.
For many though, shelling out for Mr Buffett and Mr Munger paraphernalia was also key. Susy Abbondi, an investor in Berkshire for 20 years, waited an hour and a half to buy Mr Buffett and Mr Munger pillows.
“Part of me was like, ‘I must come this year because Charlie is 99’, I mean, how many more years is he going to be around?”
Brad Wetherill travelled from Alberta in Canada after “procrastinating” about attending for 20 years. “Time is not on Warren or Charlie’s side. So it’s now or ever.”
During the annual movie shown by Berkshire at the beginning of the AGM, several historical clips of Mr Buffett and Mr Munger answering questions about their age from as far back as 32 years were aired.
“An idiot would have a very good record [running the company] long after the founders are dead,” Mr Munger said in 1995, referring to the “autopilot” nature of some of their business investments.
For Australian investors attending the AGM, Mr Munger is probably still right.
Australian Mark O’Hare, who has been to 12 AGMs, said while the succession plan had long been on the agenda with shareholders, how well it had been planned was not as well understood.
“Munger often says – if Warren was smart enough to set up the company so successfully, why would you not have confidence to think he has carefully planned for his and Munger’s succession?” Mr O’Hare said.
“As to the volatility of the share price, post Buffett’s death, I think there will inevitably be a decline. However, I think this will be as a result of speculation by short-term holders.
“Long-term shareholders, of which Berkshire has the most of any S&P 500 company, are well-prepared for this event.”
I ate like Warren Buffett for a week — and it was miserable
Bob Bryan Updated May 1, 2022
https://www.businessinsider.com/warren-buffett-diet-2017-10
Berkshire Hathaway CEO Warren Buffett
Rick Wilking/Reuters
Warren Buffett is one of the most successful investors in history.
He also has a really weird diet.
Buffett's diet of sugary soda, junk food, and limited vegetables has reached legendary status.
The Berkshire Hathaway CEO drinks about five cans of Coca-Cola products a day, constantly munches on See's Candies, and pours so much salt on his food that John Stumpf, the former Wells Fargo CEO, said watching Buffett dole it out was like a "snowstorm."
Business Insider has tried various people's diets — from Elon Musk's to Tom Brady's — so back in 2017 I decided to take on Buffett's strange food tastes for one workweek to see what it was like.
There were some basic ground rules — eat three meals a day, don't drink alcohol, and avoid vegetables.
Overall, I just tried to maintain the general attitude by which the man himself defines his diet.
"I checked the actuarial tables, and the lowest death rate is among 6-year-olds, so I decided to eat like a 6-year-old," Buffett told Fortune. "It's the safest course I can take."
So in honor of the 2022 edition of the Berkshire Hathaway Annual Meeting, here's a look at what it's like to eat like the man himself.
The cornerstone of the Buffett diet: Cherry Coke.
Bob Bryan/Business Insider
In 2015, Buffett told Fortune he was "one-quarter Coca-Cola."
Buffett said he favored either Diet Coke or Cherry Coke and had at least five cans of the soda a day.
I decided to opt for exclusively Cherry Coke throughout the week, as I'm not the biggest fan of the taste of plain Coke. I am, however, a fan of cherry and cherry-adjacent soda products like Dr. Pepper and Cheerwine (it's a North Carolina thing — Google it).
I also couldn't purchase cans of the stuff at my local grocery store, but a two-liter works out to 5.6 cans a day, within the ballpark of Buffett's consumption. Thus, I decided to go with one of these each day.
If you're wondering, that works out to 252 grams, or 0.56 pounds, of sugar a day from the Cherry Coke alone. That's right — I got 84% of my recommended daily carbohydrate intake from just the sugar in the Cherry Coke.
I didn't initially do the math on the sugar content of the Cherry Coke, believing it was better to go into the week with a bit of blissful ignorance. While I had assumed it would be rough consuming all of the syrupy-sweet drink, I couldn't anticipate the full devastation the Coke would have on my mood.
On the first breakfast of the week, I was nervous but had a supply of foolish confidence in my ability to handle what was ahead.
In the HBO documentary "Becoming Warren Buffett," the legendary investor said his breakfast each day came from McDonald's and was dictated by the stock market.
Typically, Buffett gets breakfast once the market is open. If stocks are up, he gets a bacon, egg, and cheese biscuit. If they're down, he opts for a cheaper breakfast of two sausage patties. If the market is flat, as it was Monday morning before the open, he goes for the sausage McMuffin.
I get to work around 7:30 a.m. ET every day, meaning I had to base my McDonald's selection on the premarket futures, which tend to be a bit harder to gauge. Regardless, I decided to try to factor in a bit of qualitative analysis based on the overseas markets and the previous day's close (and, by the end of the week, what I could tolerate).
The first breakfast wasn't too challenging. The biggest issue was the lack of coffee, as Buffett doesn't drink the stuff.
I decided to front-load the Cherry Coke to get the caffeine I usually got from my coffee while also preventing myself from drinking soda well into the night.
Additionally, I'd decided to keep track of my weight each morning and night. For the calorie counts, the Cherry Coke totals are added to the count at dinner, since they were dispersed throughout the day.
Breakfast, Day 1: McDonald's sausage, egg, and cheese McMuffin; Cherry Coke
Breakfast calories: 470
Monday-morning weight: 168.4 pounds
The Cherry Coke hit me like a ton of bricks.
I don't drink much soda — I drink mostly water and coffee at work — so the sudden increase in the amount of corn syrup in my diet made me feel incredibly sluggish. Plus, the sugar high was so off the charts that I almost felt the tingle of the carbonation in my fingers as I was typing.
Then again, I also put down half of the two-liter before 11 a.m. in an attempt to front-load the caffeine.
My inner child was excited to have ice cream in the middle of the day. The chili-cheese dog excited me less.
The bun on the Dairy Queen dog was spongy, but not like an angel food cake — like an actual kitchen sponge. The hot dog tasted very salty.
The sundae was delightful. Buffett says he typically gets cherry syrup on his DQ sundaes, which was not an option at my Manhattan location. I did get his preferred chopped nuts on top.
I was feeling pretty weighed down at this point. I don't have a big lunch most days — a salad at most — so the extra calories and copious sugar made me feel bloated......
Bob Bryan Updated May 1, 2022
https://www.businessinsider.com/warren-buffett-diet-2017-10
Berkshire Hathaway CEO Warren Buffett
Rick Wilking/Reuters
- I ate like Warren Buffett for a week.
- Buffett does not eat very healthy.
- My body felt terrible by the end of the week.
Warren Buffett is one of the most successful investors in history.
He also has a really weird diet.
Buffett's diet of sugary soda, junk food, and limited vegetables has reached legendary status.
The Berkshire Hathaway CEO drinks about five cans of Coca-Cola products a day, constantly munches on See's Candies, and pours so much salt on his food that John Stumpf, the former Wells Fargo CEO, said watching Buffett dole it out was like a "snowstorm."
Business Insider has tried various people's diets — from Elon Musk's to Tom Brady's — so back in 2017 I decided to take on Buffett's strange food tastes for one workweek to see what it was like.
There were some basic ground rules — eat three meals a day, don't drink alcohol, and avoid vegetables.
Overall, I just tried to maintain the general attitude by which the man himself defines his diet.
"I checked the actuarial tables, and the lowest death rate is among 6-year-olds, so I decided to eat like a 6-year-old," Buffett told Fortune. "It's the safest course I can take."
So in honor of the 2022 edition of the Berkshire Hathaway Annual Meeting, here's a look at what it's like to eat like the man himself.
The cornerstone of the Buffett diet: Cherry Coke.
Bob Bryan/Business Insider
In 2015, Buffett told Fortune he was "one-quarter Coca-Cola."
Buffett said he favored either Diet Coke or Cherry Coke and had at least five cans of the soda a day.
I decided to opt for exclusively Cherry Coke throughout the week, as I'm not the biggest fan of the taste of plain Coke. I am, however, a fan of cherry and cherry-adjacent soda products like Dr. Pepper and Cheerwine (it's a North Carolina thing — Google it).
I also couldn't purchase cans of the stuff at my local grocery store, but a two-liter works out to 5.6 cans a day, within the ballpark of Buffett's consumption. Thus, I decided to go with one of these each day.
If you're wondering, that works out to 252 grams, or 0.56 pounds, of sugar a day from the Cherry Coke alone. That's right — I got 84% of my recommended daily carbohydrate intake from just the sugar in the Cherry Coke.
I didn't initially do the math on the sugar content of the Cherry Coke, believing it was better to go into the week with a bit of blissful ignorance. While I had assumed it would be rough consuming all of the syrupy-sweet drink, I couldn't anticipate the full devastation the Coke would have on my mood.
On the first breakfast of the week, I was nervous but had a supply of foolish confidence in my ability to handle what was ahead.
In the HBO documentary "Becoming Warren Buffett," the legendary investor said his breakfast each day came from McDonald's and was dictated by the stock market.
Typically, Buffett gets breakfast once the market is open. If stocks are up, he gets a bacon, egg, and cheese biscuit. If they're down, he opts for a cheaper breakfast of two sausage patties. If the market is flat, as it was Monday morning before the open, he goes for the sausage McMuffin.
I get to work around 7:30 a.m. ET every day, meaning I had to base my McDonald's selection on the premarket futures, which tend to be a bit harder to gauge. Regardless, I decided to try to factor in a bit of qualitative analysis based on the overseas markets and the previous day's close (and, by the end of the week, what I could tolerate).
The first breakfast wasn't too challenging. The biggest issue was the lack of coffee, as Buffett doesn't drink the stuff.
I decided to front-load the Cherry Coke to get the caffeine I usually got from my coffee while also preventing myself from drinking soda well into the night.
Additionally, I'd decided to keep track of my weight each morning and night. For the calorie counts, the Cherry Coke totals are added to the count at dinner, since they were dispersed throughout the day.
Breakfast, Day 1: McDonald's sausage, egg, and cheese McMuffin; Cherry Coke
Breakfast calories: 470
Monday-morning weight: 168.4 pounds
The Cherry Coke hit me like a ton of bricks.
I don't drink much soda — I drink mostly water and coffee at work — so the sudden increase in the amount of corn syrup in my diet made me feel incredibly sluggish. Plus, the sugar high was so off the charts that I almost felt the tingle of the carbonation in my fingers as I was typing.
Then again, I also put down half of the two-liter before 11 a.m. in an attempt to front-load the caffeine.
My inner child was excited to have ice cream in the middle of the day. The chili-cheese dog excited me less.
The bun on the Dairy Queen dog was spongy, but not like an angel food cake — like an actual kitchen sponge. The hot dog tasted very salty.
The sundae was delightful. Buffett says he typically gets cherry syrup on his DQ sundaes, which was not an option at my Manhattan location. I did get his preferred chopped nuts on top.
I was feeling pretty weighed down at this point. I don't have a big lunch most days — a salad at most — so the extra calories and copious sugar made me feel bloated......
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