Local time in the morning of April 30, United States town of Omaha, Buffett from more than 40,000 investors around the world pilgrimage. Buffett talks with reporters. Dongfang IC
22:30 April 30, Beijing time (East of 10:30), Warren Buffett runs Berkshire Hathaway 51 annual general meeting of the company duly convened. Warren Buffett and Charlie Munger field questions from shareholders, journalists and analysts ' questions, General painting at 17:18 local time periods. Dr z s brain cavity not fulfilled international
Most attention is undoubtedly the question of the day, Berkshire shareholders and investors from around the world gathered in one, Buffett and Munger to ask questions in order to achieve insight. In the last 6 hours of time, Buffett answered nearly 40 issues, ranging from United States political situation, global economic problems to the company's share price and the prospect of individual trades.
To record the following:
EST 16:26 the last audience question: in his annual shareholder letter, your sense of humor always brings a lot of fun for us. Your sense of humor come from?
Buffett: I think Charlie more than me have a sense of humor.
Munger: If you see the world exactly, is necessarily a sense of humor, because the world is so ridiculous.
EST 16:26 audience: how to explain investment in IBM?
Buffett: while IBM has some advantages, it also has certain weaknesses.
Munger: this is directly related to changes in the computer industry. No one knows if IBM will succeed or fail, but this is an area of many wise people will succeed.
EST 16:18 audience: the real estate market is still not very stable, what do you think?
Buffett: now the interest is low, very attractive, many real estate investors have to think so, but this is not right. Although 2012 are not so attractive, but I don't see a nationwide housing bubble. In Omaha, for example, as well as the United States much of the country, buyers are not paying bubble prices. I think, the next significant change or crisis, not because of a real estate bubble.
EST 16:13 audience: if loss of Berkshire's reinsurance Fund Manager Ajit Jain and what happens?
Buffett: no other Ajit, but others also brings great value to Berkshire.
EST 16:08 audience: many oil workers of Houston, whether oil prices will affect fed policy?
Buffett: I don't think it will have much impact. Low oil prices for the United States economy as a whole should be good, because the United States is a net importer of crude oil by country. Many consumers would benefit from lower oil prices. Crude oil for the United States economy is a very important part, but even if oil prices fall, United States economy continued to improve. Of course, if we can predict low oil prices, duration of course.
East Fortune retirement 16:01 reporter Carol question Looms: how to manage Berkshire's cash flow?
Buffett: and some other companies, we were never less than 20 billion dollars in cash, I like this. In this context, we do not have any cash flow concerns. We will not do anything to change the situation. If the extension of vendor payment cycle, we have more capital. But we do not need, do not want to damage relations between the supplier and a win-win situation.
Morningstar EST 15:51 (Morningstar) company Gregg Warren asked BNSF operations continues, what should I do?
Buffett: the continued depreciation of rail transport, had to invest more money, and quite different from the previous year, but any railway company must do so. For the BNSF, we take depreciation more money than it is now, is negative for now, but we'll keep looking for ways to adjust the existing situation. We did not know that oil prices have fallen so much, however, downturn in the coal industry and the direction of our investment is not too relevant. We have done research for a long time, we hope that the future railway transport industry to do better.
EST 15:40 Ruane, Cunniff and analyst Jonathan Goldfarb Brandt asked Berkshire will reassess United States American Express stock?
Buffett: United States express does hit, but also because of their business so attractive. But even if the United States express less attractive before, is still well worth a good business. Charlie and I continue to re-evaluate our investment to assess threats to the enterprise is a difficult task.
East Fortune retirement 15:26 reporter Carol question Looms: Brazil private-equity firm 3G Capital Partners business model and operating philosophy. In recent years, including the establishment of Kraft, Heinz Company trading, Berkshire was deemed to be against the layoffs, but 3G in terms of cutting costs relentlessly.
Buffett: 3G and its partner and suggest layoffs are necessary, they do cost-cutting has been very clever. We are concerned about the cuts may impact on the product packaging industry, but at the moment I do not see any damage. Too many employees and departments is never a good thing. If restricted in one area, it may also be the case in other areas.
EST 15:19 audience: management of Berkshire is a normal company, but why not AAA credit ratings?
Buffett: the credit rating is simply the wrong mechanism and mechanism before the block. The way they treated us and our reality is different.
Morningstar EST 15:13 (Morningstar) company Gregg Warren questions: in terms of subsidiary companies and managers to replace what?
Buffett: the Board of Directors will present the matter, which is why we have not announced a name. Because first of all, do not know when it will expand on the plans for a successor and, secondly, on his successor's personal circumstances may change at any time, in this case, the Board may select the next candidate, no one knows what will happen next. We won't spend a lot of time holding the name or position.
EST 15:05 CNBC reporter Andrew Ross Sorkin question: when Berkshire traded, can't seem to do due diligence, handshake is complete. Speed may be the advantage, but less due diligence will not for Berkshire at risk?
Buffett: we had made many mistakes in mergers and acquisitions, but most are economic prospects or future assessments about the error, they even did more due diligence seems to have problem too. No list can cover all the matters in the world. If we missed something, we have to focus on how to make up for these issues.
Munger: sometimes I see some projects fail, but we want to do basic project can be made. We are more concerned about quality, and human qualities, these are must do due diligence. And how many people look a spouse's birth certificate?
EST 14:58 audience: things that make you successfully established and Munger of Berkshire, what you disagree with?
Buffett: former mentor and I learned a lot, and I learned a lot from Munger. My life I have observed what can business operations. You have to know what they can do, which is unable to do so. It's not complicated, you do not need to have a high IQ to invest, but must have the emotional control. Some very smart people sometimes do stupid things to avoid "self destruction" would be nice.
Munger: emotional and sometimes opportunities complement each other, so can learn from their mistakes. I have now a grandfather, I always say is, don't envy others ' success, as long as the standard way of doing things. If Berkshire is really smart, probably will not be as successful as it is today.
Insurance analyst Cliff Gallant EST 14:53 question: Berkshire now has 10 billion or 20 billion cash flow, how to control cash flow?
Buffett: United States business model was mature enough. Not too smart to get huge returns. As long as the vision is good.
EST 14:48 CNBC reporter's question: some of Berkshire's investments as if we as individuals don't understand. Berkshire's investment decisions are made, how on earth can we see your own investments?
Buffett: my thinking is, if the target company to be purchased by Berkshire scale and benefit Berkshire, we would consider buying. Personally, I of course also have some assets, these assets are not interested in Berkshire. If these assets and Berkshire have conflict, I will not invest in. I would rather have Berkshire's money, because I want to earn the money to make the. I stood on the Berkshire side.
Munger: I have no outside of the Berkshire and Buffett is a significant investment. We won't do any thing and Berkshire have conflict.
EST 14:41 Ruane, Cunniff and analyst Jonathan Goldfarb Brandt questions: acquisitions of oil field chemicals last year can you talk about?
Buffett: I am particularly concerned about the details. Decided to buy and not to buy, not just according to the interest, and also to assess its feasibility.
Mergers in the oil field, is a very good business, but it is not an appropriate time.
East Fortune retirement 14:32 reporter Carol question Looms: biochemical and nuclear-related terrorist acts.
Buffett: these issues may occur. I certainly hope that doesn't happen, but when it does, I hope that these effects can be reduced to a minimum. 7 billion people around the world, everyone thinks differently, and relationship to each other may be threatened, many mentally ill people will do a lot of crazy things. Concerns at the Federal Reserve regard the possibility of risk, this should be the focus of concern for the Government. We've had good times, also went through turbulent times. "9·11" after some people had received letters containing germs, if your mind is not good, will send letters with the virus to other people, this is very bad. If there is anything that can put an end to these practices, I will do so.
Morningstar EST 14:19 (Morningstar) company Gregg Warren questions: in 2015 year Berkshire's share price was down by, whether you think should repurchase stock?
Buffett: lost must not exceed 1.2, 1.2 was my target, I was concerned about a number of. I think down bought back when 1.2% or 1.1% is very appropriate. But I do not accept shares to buy, I wouldn't brag about making money from buying stock. We can not find better ways to use capital, so we want to raise the threshold, do not want to get out of control. In any case, to buy back shares at lower than the actual value of the price, is a good thing for our shareholders.
Munger: buy-back value is rarely mentioned in the question, as Berkshire we are arrogant, I couldn't control myself.
14:13 in East Berkshire's talent does not seem very diverse, will affect the value of a company?
Buffett: Directors and managers has been established and will continue to Berkshire's culture and shareholders welcome the establishment of these cultures. These will not be easy to change. Our culture is no problem, will complement the ideas and values of each of us.
Charlie: I'm more optimistic than Buffett, I do not think that these questions. Our staff turnover is very low. Many directors are not for the money as the Director.
Buffett: many aspects into consideration when we choose competent people, they must have the professional skills and is suitable as a Manager. I feel that it is the best of the directors. Some consulting firms will call me, I recommend the list of candidates. But our Director asked me first, he was able to show our good faith, they are not here to make money, or to high positions. He would have the expertise to shareholder interests. There are interested in Berkshire company, consistent with the company's philosophy. We have no specific department or Committee of the annual general meeting of shareholders or other specialized companies, all our staff is your rolled up his sleeve to make the Conference.
Insurance analyst Cliff Gallant EST 14:05 question: insurance business through a Web platform now, Berkshire would consider it?
Buffett: you may want to try a lot of things, so I am very surprised that insurance business in the past from the phone platform to platform changes. We'll try a lot of things, made some mistakes. However, after twenty or thirty years, and I believe there will be very different.
East end of the upper part of 12:58 shareholders, will be held at 14:00 started the second-half.
EST 12:45 Buffett shows contrast five Fund Protege Partners p 500 average performance.
Munger says, "as long as our stock is good. "
Buffett stressed that "we have some excellent managers, but such a good manager like a needle in a haystack rare. "
EST 12:34 audience: the eradication of which competitors most beneficial to you, not to mention Donald Trump.
Buffett: we have many competitors, we have other people in our field of competitors. We are more interested in is what our clients want, you focus on customer, customer will interest you. You can not do this, business will stay away from you. We don't want to eliminate an opponent, we just want to do better.
EST 12:31 Ruane, Cunniff and analyst Jonathan Goldfarb Brandt questions: leasing is a great source of profits of Berkshire, will talk about?
Buffett: canned a truck leasing is a good business, we have $ 1 billion investment, this is not only a profitable business, or bring convenience to people's service. Aircraft leasing has been involved in, we think it is a terrible business.
EST 12:23 audience: investment banks, including Wells Fargo's future direction?
Buffett: Bank generally does not refer to an investment bank, is a very good business at Wells Fargo Bank. But when it comes to investment banks, we do not invest a lot of places. In 2008 we also made a lot of money invested in Goldman Sachs. We have a variety of revenue sources, we feared more than loved for investment banks.
East of 12:12 to a question: If Trump is elected President will bring policy regulatory risk for Berkshire?
Buffett: it's not a problem. Government policies and regulations will affect all companies in a wide range. We hope that Hillary Clinton is elected, but no matter who is elected, we will continue to grow, we will do very well. United States commercial and social match very well, people are willing to invest their money in this place.
Munger: the positive side, GDP numbers did not interpret the quality of a system.
East of 12:04 to a question: I realize that Berkshire no betting crude oil prices, but have any investment in this area?
Buffett: no, I don't think I can predict the price of oil or other commodities, and never make any trading decisions based on these forecasts.
EST 11:56 CNBC reporter Andrew Ross Sorkin question: Nevada new rules and restrictions for renewable energy impacts?
Buffett: Nevada's problem is that in the past few years, if there is an energy or solar power-related business, the price is beyond our capacity. Although the Government encourage solar energy or wind power, but installation of solar energy panels was more expensive than other sources of energy such as natural gas, then who is going to pay these bills in renewable energy brings, can become a problem. Federal Government policies are all United States taxpayers, Nevada, think it's not worth it. This is a political issue, I personally think that benefit communities through emission reductions, costs should be borne by the community as a whole.
EST 11:51 audience: many children including myself is the next generation of your followers. Kids today have begun to research stocks, could you spread your investment philosophy to children?
Buffett: don't envy others, don't be jealous of people who win the lottery, or through IPO to earn a lot of money. So-called millionaire is no secret, as long as they think about what makes sense, and have a strong mind, not by you which stocks to buy.
EST 11:47 Ruane, Cunniff and analyst Jonathan Goldfarb Brandt question: the railway industry and the auto industry have a recession, this recession will increase in the future?
Buffett: reduction of coal production, and winter is not so cold, have reduced the income of the coal industry, and the impact on railway operations and primarily related to coal. BNSF Railway Company's first-quarter earnings drop, and this trend is likely to continue this year. But at present we estimate business, not looking at the stock value alone. I believe that BNSF is our very good assets, have a very good development in the future.
East Fortune retirement 11:43 reporter Carol question Looms: If the United States, like Europe and Japan as the introduction of negative interest rates, what will be the impact on us?
Buffett: negative interest rates will impact our company, because we have a lot of cash and capital, have such a strong purchasing power. Some insurers, ten years ago and now is completely different, ten years ago no one taking into account the problem of negative interest rates. We certainly hope that our cash flow faster and better.
EST Investment Bank derivative products 11:35 the audience questions.
Buffett: derivatives, the most difficult is to assess the value, the biggest danger is whether it will break, causing stock transactions could not be completed.
Morningstar EST 11:26 (Morningstar) company Gregg Warren questions: in terms of renewable energy, Berkshire has invested a lot of money. Berkshire is do you want into renewable sources of energy? This is a long-term goal?
Buffett: of course, we hope that our next generation, our children have more energy available for use. The Federal Government has a lot of incentive, and everyone around the world to pay for their carbon emissions. Renewable sources of energy to replace the existing degree of energy, depending on Government policy. The current Government policy is to allow the community cost-sharing, rather than let everyone through emission reduction benefits. But we hope that laws and policies change in the future, if the Government gives us more on tax concessions, we will invest more in this area.
Hon EST 11:18 CNBC reporter Andrew Ross Sorkin: you have answered a question very well last year, Coca-Cola's are there any adverse effects, how much do you use every day to drink Coca-Cola's answer has not been adversely affected. But a Tufts University study, people should not continue to take too much sugar can cause cardiovascular disease and cancer, and so on. You put aside your own experiences to talk about drinking Cola, why have so many shares of Coca Cola?
Buffett: calories is a problem, I probably eat 700 calories a day Coca Cola, I may consume 2700-2800 calories a day. But if not be sugar from the perspective, I think I was willing to eat some sugar, my mother and grandfather also are doing. People probably already consumed 1.9 billion ounces of Cola consumed 108 ounces of Coke per person per year. If a person consumes calories a day one-fourth from coke, you can choose exactly how many calories, how much sugar intake. For example, coke and peanut candy are my favorite day, makes me very happy. Do a lot of happy things, and can make you live longer. I want to have a twin brother eat green vegetables broccoli water and see who we are happier, I believe I will be more than happy, long life. So I think Coke is a wonderful product. If you can eat a well balanced, not to let yourself be obese, there is no evidence that Coca Cola is harmful.
Munger: I have a diet Coke. Now you just considered bad regardless of the benefits. If each year how many people crash, you don't fly, it's very immature idea.
11:11 in East Germany audience: see Amazon.com and other companies ' growth, great changes to its marketing strategies. From sales to customer looking for a product to this transformation, and what it means to the company?
Buffett: we're not going to want to, this favorable trend to affect our long-term business in the future. For us, we are not anxious, we do not want to be involved in are still against it. For helping us a lot in the Internet era, but when thinking about new opportunities, we would face some resistance, but we have added to the Internet era, we will try to do things you are good at. Berkshire's biggest advantage is that we are not fixed in one industry, such as steel or tire. We will distributed in many industries. In my view, must have a flexible mind, to think about assets deployed in the areas.
Insurance analyst Cliff Gallant EST 11:01 question: in fact, Geico has no Progressive well. What do you think?
Buffett: Geico's performance was good in the first quarter. Geico and Progressive marketing models, I think that Geico has very good profits this year. Hope I was 100 years old when our market share than State Farm, part of what I'm going to do what I can do, is to live to be 100 years old.
Buffett: reinsurance business has little appeal to us. Many insurance income and interest rates. In simple terms, reinsurance are faced with fierce competition. Insurance providers, but demand does not increase, returns will deteriorate. As far as growth and profitability, Geico did a good job in the past.
EST 10:56 audience: for a long time, is there something if you go back and take a different approach?
Buffett: I've decided I'm my own favorite employees. Charlie and I are blessed by God, and we are working every day, these things are very interesting and worth it. We were very lucky, we are partners, so I have nothing to be complained about. From a business, looking back, I feel that the textile industry did not seem too appropriate.
Charlie: I'm 92 years old, but still has a lot of energy to do something, it is hard to come by.
East of 10:50 to a question: Why buy Precision Cast, the company's prospects?
Buffett: managers of this company is very good, Charlie and I've seen a lot of managers. And they have very sophisticated aircraft manufacturing technology.
East Fortune retirement 10:45 reporter Carol question Looms: hebafeite changes the argument of a decade ago, said Berkshire will acquire needed little or no capital investment business. BNSF with Berkshire Hathaway Energy is an example of exactly the opposite.
Buffett: perhaps we can spend 10 billion or 20 billion to buy the company, but if they cannot continue to grow, there will be a double burden. I can increase the assets reorganization and to buy other companies, driving us to raise more funds, gaining additional returns. And a lot of money is not invested in quickly earn rewards.
Munger: early when some companies can get a good return on our investment. But several did not get a good return, then our priorities will change. More importantly, with the least amount of money to get more in return.
(The above was authorized to release an account of Wall Street)
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