Without Munger's "Spring Festival Gala in the Investment World"! Munger is still "everywhere"

Finance Associated Press

2024-05-05 02:58Published on the official account of Cailianpress, a subsidiary of Shanghai Poster Group

Finance Associated Press, May 5 (edited by Xiaoxiang) "There is one less person everywhere" - at the Berkshire shareholder meeting in 2024, it is difficult for people to see the figure of the late Buffett's close friend Munger, but what makes everyone feel embarrassed is that Munger seems to be everywhere......

In the first half of the shareholder meeting, Buffett almost blurted out a sentence about how Munger was when answering multiple answers. Perhaps the most impressive episode in the middle of the shareholder meeting was when Warren Buffett wanted CEO successor Abel to answer a question, but it turned out to be "Charlie......

Buffett, who realized that he had called the wrong name, then couldn't help laughing at himself, "I said that I was used to it, and I might say it later!"

Charlie Munger died at the age of 99 last November when he was just 33 days away from his 100th birthday.

Obviously, on the stage of shareholders' meetings, where almost Buffett and Munger have appeared together to stage the "two-person turn" over the years, Buffett does not seem to have fully adapted, which lacks Munger's speaking platform......

In fact, from the very beginning, this year's "Spring Festival Gala in the investment community" was almost filled with an atmosphere of reminiscence. The video clip that was shown before the Berkshire Hathaway meeting was a tribute to Munger. In this sometimes moving, sometimes humorous short film, Warren Buffett pays tribute to his longtime friend and business partner, and once again calls Charlie Munger "Berkshire's architect."

The short film details Charlie Munger's life, including his life in Omaha, Nebraska, USA, where he and Warren Buffett were born and raised, just two miles from Berkshire Hathaway's annual shareholder meeting. It also showcases clips of many witticisms from the investment guru known over the years.

Including at an annual meeting in 2015, Munger's classic line, "Warren, if people don't make mistakes often, we wouldn't be so rich." ”

One of Munger's quotes in the video also includes his speech at an earlier shareholder meeting: "If I'm dying and still be optimistic, surely you should be able to accept a little inflation" and "In real life, the right way to make decisions is based on your opportunity cost." When you get married, you have to choose the best person who can have you. The same goes for the rest of your life. ”

About 30,000 shareholders stood up and applauded Munger to pay tribute to Buffett's business partners for more than 60 years.

Buffett said that in memory of the deceased Munger, Charlie Munger's "Poor Charlie's Book" will be the only book to be sold at this year's shareholder meeting. In previous years, there are usually about 25 books on sale at the shareholders' meeting.

What would you like to do if you had the chance to spend another day with Munger?

Perhaps one of the most heartwarming questions in the shareholders' meeting was a child's question to Warren Buffett: What would you like to do if you had the chance to spend another day with Munger?

Warren Buffett laughed and replied, "That's an interesting question. Charlie loves to learn, and as mentioned in the previous video, he is interested in many things, and he has a wider interest in many things than I do. He and I used to do a lot of things together: tennis, golf, and we had more time together than we did when we were alone. ”

"It's also fun for us to make mistakes together, to correct mistakes together, to learn from them, and that seems to be more enjoyable because your partner will help you get out of it, and then you'll see that the decisions you made ten years ago are still making money. ”

Warren Buffett said, "Charlie has shared a lot of great ideas with me. Except when Charlie was in the army, he never considered eating healthy or not, but he still lived to be 99.9 years old. If Charlie could spend a day with me, I don't think it would be any different from any day we've spent together in the past. ”

Perhaps in Buffett's mind, every day he has worked with Munger in the past has been the best day.

In several other questions, Buffett also told the audience the story of the two stocks that Munger thinks Berkshire needs to buy the most, BYD and Costco, and admits that he doesn't listen enough to the latter.

"Charlie knocked on the table with me twice and said, 'Buy, buy, buy. 'BYD is one of them, Costco is the other, and I should be more aggressive at Costco. Warren Buffett recalled.

Buffett also lamented that in terms of managing funds, there has been no one in the world better suited to discuss it than Charlie in the past few decades.

As Warren Buffett wrote after Munger's death, "Berkshire Hathaway would not have been where it is today without Charlie's inspiration, wisdom and involvement." ”

The issue of succession is once again in the spotlight of shareholders' meetings

Of course, Munger's death may also make Buffett, who is nearly 94 years old, feel a little unforgiving. In response to a question, Warren Buffett said that at the age of 93, he is not as efficient as he was a few decades ago. The Omaha prophet quipped that he may not sign any more four-year employment agreements.

There is no doubt that at this shareholder meeting, the issue of Buffett's successor and Berkshire's future transition has also become the focus of shareholders.

As early as last year's shareholder meeting, Buffett had already designated Abel as his successor. In the shareholder letter released in February this year, Buffett once again emphasized that Abel is ready in every way to become the CEO of Berkshire Hathaway tomorrow.

In this regard, Warren Buffett said at the shareholders' meeting that due to his advanced age, his reading speed, physical strength and operational efficiency are declining, much lower than 30 years ago, and he doesn't even know the management of many subsidiaries anymore, "If there is a better person to report to work, why do you come to me?"

Buffett believes that Berkshire's current operation is "perfect" — Abel understands the plight of his business better and can give advice, while Ajit Jain's intelligence in the insurance industry is unmatched. The two vice chairmen also have better energy and the way the message is conveyed appropriately.

Jain also said that after announcing that Abel will succeed as CEO, the whole transition period has been very smooth, and the management of some subsidiaries will call Buffett to report the business, but now Buffett will deliberately direct the call to Abel and him to deal with.

In fact, it's not just Warren Buffett who is over 90 years old, but Ajit Jain, the head of Berkshire's insurance business, is also 72 years old this year. When asked how difficult it is to find Ajit Jain's successor, Buffett said that the company can't find another Ajit Jain, but we have an operating system that he created. At least some of it, it's almost impossible for competitors to imitate.

Ajit Jain responded that no one is irreplaceable.

Jahn pointed to Apple CEO Tim Cook, who was in attendance at the shareholder meeting, and said, "There is Tim Cook in the audience today, and he has proven it and set an example for a lot of people." Berkshire's board of directors is very focused on succession issues, and every year they sit in front of them to answer questions and share my thoughts with them, such as what happens to the operational side if I get hit by a truck. I'll introduce them to a short list of candidates that I think might be my replacement. In addition to that, I will go one step further and identify a specific person to whom I will give the keys if something happens to me. ”

(Finance Associated Press Xiaoxiang)

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