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The Oracle of Omaha
In response, Buffett quipped, "Because Berkshire shareholders won't lose their shorts."
Then, Buffett mused about the possibilities of creative advertisement for this company.
"Fruit of the Loom - we cover the asses of the masses."
Buffett joked again about how his Vice Chairman encouraged him to buy the
underwear company.
"Warren, we have to get into women's underwear," Buffett said, imitating Munger. He
then added, "And he's 78."
With the video portion finished, Warren Buffett and Charlie Munger walked onto the
stage. And the world's second-richest man introduced himself.
"I'm Warren, he's Charlie. We work together. We don't have a choice. He can see and I
can hear."
The crowd laughed and applauded the introduction. Buffett and Munger have worked
together since 1962.
Before taking questions for the next six hours, Buffett said he had just one more thing
to say. Berkshire had arranged a shopping event for the audience. All of Buffett's
companies had booths.
And Buffett encouraged everyone to shop. "It's good for your digestion." He paused
for a minute and then continued:
"Even if shopping is not good for your digestion, it will be good for mine!"
Promptly at lunch break, nearly half the crowd went downstairs to the shopping areas
to aid in Buffett's digestion.
At last, the oracle of Omaha was ready to take questions. One of the first questions was
why Buffett bought Anheuser, brewer of Budweiser beer. Buffett was quick to joke
about it.
He said, "I'm still cracking my Coca-Cola. The meeting might get a bit exciting if I
opened a Bud here."
While the audience chuckled, Buffett sipped his Coke. He then pointed out that
Anheuser was a business with a durable competitive advantage and that there was no
generic label in the beer business.
Buffett then cited some beverage consumption statistics. "Out of the 64 ounces of liquid
a person consumes, 11 will be a Coca-Cola product," he said.
Buffett turned to ask Munger, "Charlie, do you have any consumption habits - that you
can talk about?"
One question was from a little girl, about ten years old. It was in the form of a poem.
"To come here we had to fly, do you think Petro China is at an all-time high? For my
future job can I be a taster of See's Candies? My sisters and I will work for free."
Buffett remarked that they bought Petro China at three times earnings and it was a
very attractive price. He mentioned that what he liked about the company was the fact
that they intend to pay out 45% of their earnings. Buffett owns 1.3% of this Chinese
company, and would have bought more had the price not shot up.
| Copyrights 2005 by A&A Morning Glory Learning Sdn Bhd. All Rights Reserved. |
| A&A Morning Glory Learning Sdn Bhd |
| A&A Morning Glory Learning Sdn Bhd |
| Copyrights 2005 by A&A Morning Glory Learning Sdn Bhd. All Rights Reserved. |
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