Berkshire’s 2014 Annual Meeting
Among delightful things I did last week in Omaha was lunch with Bloomberg reporter Noah Buhayar on Thursday ahead of Saturday’s meeting of Berkshire Hathaway shareholders. Noah wrote several stories in which he kindly quoted me. Here are highlights.
1. Coke Pay. On Berkshire’s abstention from voting on whether to support or oppose Coca-Cola’s executive pay plan, which other Coca-Cola shareholders challenged and which Buffett considered excessive, Noah correctly quoted what I said Thursday as follows: “People like to raise tricky issues at the Berkshire meeting, and that’s probably the trickiest one. You’ve got to decide when you’re going to throw that weight around.” That’s pretty much the answer Buffett and Munger gave on Saturday. (See Noah’s piece referencing Coke here.)
2. Shareholder Activism. On Charlie Munger’s remarks about shareholder activism being bad for America–and the responses of two activists–Noah quoted me from a Sunday morning follow-up interview: “As iconoclastic and unusual as Berkshire Hathaway is, it represents big, corporate America on this issue of activism. Munger perceives activist investing as making corporations more like commodities than complex, social institutions that over time can contribute value.” (See Noah’s piece on this topic here.)
3. Stock Picking to Business Building. On Buffett’s move from picking stocks to building companies: “He became famous as a stock picker, and that reputation still dominates in the public image. He was very good at doing that, but that has not been the definition or content of Berkshire in recent years.” (See Noah’s piece on this big shift at Berkshire here and my elaboration of it here.)
4. Mood and Continuity. I predicted on Thursday: “The mood at the meeting will be celebratory, with the stock near an all-time high. Topics at the gathering are often similar from year to year. From one meeting to the next, the big thing that changes is size. Everything’s bigger.” (See Noah’s piece referencing the celebratory mood here.)
Plus ça change, plus c’est la même chose. And it’s a good thing too.