I'm from New Jersey. You picked me to ask a question today — I think that's a great chance. You often tell us investment principles, and you often remind us to be patient. Could you give us another hint?
Sometimes an opportunity is gone in a flash; you have to decide on the spot. In 1966 I got a phone call — I can't go into the details — a woman said she was willing to sell her husband's company for $6 million, including $2 million of assets and more than 900 lines of business, with expected pre-tax profit of about $2 million a year. The price sounded quite tempting.
Charlie and I discussed the opportunity at once. Charlie didn't know the woman, but he knew her partner Ben Rosser. We guessed the seller might be a wealthy widow, or that her husband was in a hurry to get out for some reason. Until December 31 we were still going through the books, trying to understand why she was selling.
The next morning Will Phillips called to remind us: people on the East Coast might be biased against Midwesterners. If this woman was from Iowa, she might not act like someone from the East. Facing a deal with a 33% annual return, it really is hard to stay patient.
This taught me: when a truly good opportunity shows up, you don't need to wait any more. When a profitable and reasonable chance appears, act. Patience matters, but what matters more is the sharpness to see the chance and the will to act. Of course the market never waits forever for anyone.
Patience is an important quality, but more important is being able to decide at once when the chance comes. When an opportunity suddenly sits in front of you — maybe just a five-second phone call — you have to judge immediately whether it's worth taking. In business decisions, the last thing you want is self-doubt. A lot of the time, hesitation is exactly why you miss it. That's why I find business so fascinating, and it's my greatest pleasure.
I'm already in my nineties, and far richer than most people, but I still come to the office every morning full of anticipation. It's not just a job; it's a source of joy from helping others and creating value. That kind of enthusiasm can be passed on. I hope my children can feel that joy too.
Like the partnership Charlie and I built over 60-plus years, we always work with people who share the same values. That model has never disappointed us, and it's still the standard we use to look for new partners. That's why every director and team member here today can work together so well. When you're sure an opportunity really is advantageous, you shouldn't hesitate — you have to act at once.
I'm from California. Thank you for putting this meeting together for us. You've said that besides Jobs, nobody could have created a company like Apple, but Tim Cook has done very well. Warren, you created Berkshire. You think Greg Abel is an unexpected talent in all this, but he looks like a very normal person — sorry, that's a very nice way to say someone is a normal person. Tell me why you think Greg Abel will be a great successor for decades to come?
You've asked a very important question. In our industry, putting together a good investment team is not easy. In a market as large as the US, building an environment that fits capital allocation takes a long time, especially on the capital-allocation side. It takes time to settle, and even more it takes finding a group of like-minded people you can trust. For years I've always treated every investment decision with care, and looked carefully at the risks.
Yesterday I walked the company's exhibition floor. The enthusiastic employees left a deep impression. They weren't in it for a return; they simply loved the work. That attitude is admirable. I think choosing work you love is crucial. In my career I've had five bosses, and I learned a lot from each. But in the end I chose to start my own thing, because doing what you like is the best working state.
Not everyone is as lucky as I was, finding a lifelong love at seven or eight. Like the story of the famous bandleader Glenn Miller: his orchestra was unknown at first, and only in 1941 did a distinctive style make them famous overnight. If you're lucky enough to find work you truly love while you're young, don't worry too much about starting salary. But do pick the right company and the right boss; some jobs really aren't worth doing.
We live in a great country, in the best of times. That's why I decided to hand the baton to Greg Abel. But building a company like Berkshire is never overnight. On the financial side there's a saying: 'Getting rich once is enough; don't take unnecessary risk.' There are always people who make money with borrowing or leverage, hoping to find a greater fool at the end. Remember: that kind of speculation will cost you.
I can't live life over, but if I could, I'd still choose to do what I love. So far, for me, it's been an incredibly wonderful ride.
On that gentleman's question just now, I want to say: even if you haven't met the right opportunity yet, don't be too anxious. In life the right moment always comes, and you'll also meet the people who really fit. Like looking for a life partner: maybe it's love at first sight, but missing one person doesn't mean you'll never meet the right one. Some people and things worth waiting for often show up at the most fitting time.
I'm from Massachusetts. Thank you for taking the time to talk with us today. I'm young, I want to invest, and I want to hear your view. What lessons did you learn early on? For a young person like me who wants to develop an investment philosophy, what advice do you have?
That's a very good question. I really wish someone had given me this kind of advice when I was young. It actually comes down to who you choose to go with — don't expect yourself to make a perfect decision every time. If your life has a particular direction, look for people worth respecting as partners. Like a few friends I've worked with in recent years: their scale is far from Berkshire Hathaway, but choosing to walk with like-minded people is the wise move. Unfortunately these things often only really sink in in the second half of life.
Rather than blindly following the rich and copying their success, look for wise people you genuinely admire. That's what I did: learn from excellent people, grow in practice. If you've already found meaningful work, and you don't have urgent money pressure, you might as well do what Charlie Munger did — spend time with wise people. The people I'm talking about all create value beyond their job description. Finding such partners and sharing success is a huge stroke of luck. Even if you can't find them yet, don't give up; keep at it and you'll meet people who share the path.
I remember going to GEICO to look for a job. The door was shut; I had no idea who was behind it. Ten minutes later I met the person who changed my life. Never forget the people who helped you; repay them with real action. Of course sometimes things don't go as you'd like. If you're lucky enough to be in a good environment, you have to know to treasure it. Being born in the US already makes you luckier than most people in the world — 8 billion people on earth, a little over 300 million Americans; that's an advantage in itself. But remember: never go against your own principles just to please others.
Investing is full of fun for me. A lot of people make money and leave the field, but what you should really look for is work you can love for life. People like Tom Murphy, with that kind of eye, are rare — he was still sharp at spotting other people's potential at 98. To become a better version of yourself, look for mentors like that. Berkshire's success comes from this too: Sandy Gottesman, who started working with us in 1963; Walter Scott, more than 30 years together; Greg Abel, 25 years now... walking with people like that is never wrong.
Funny thing is, this also seems to help you live longer. These partners and I are all unusually long-lived — maybe it's the Coke (laughs), but more likely it's that we all do what we love. Happy people tend to live longer. That's how it feels to me.
Mr. Buffett, Ajit Jain, Greg Abel — my name is Peter Chen, I'm from Shanghai, first time at the Berkshire meeting. My question today is about the rise of a life. Have you had low points in yours? At the lowest point, how did you break through and get past it?
Everyone's life has highs and lows. That's normal. Thanks for the question, though to me these things may not amount to much. Take Charlie: he also went through many hard times, but that's part of life — nobody has a smooth ride forever.
I'm not trying to give you the best advice, but I want to say: low tides are something everyone hits again and again in a lifetime. Maybe for you some valleys feel especially heavy, but please believe that hitting a setback doesn't mean the end of the world. I can promise you: even through a valley, you won't fall down because of it. Some people, when they're in trouble, get looked down on or laughed at, but truly great people, even when luck is temporarily bad, still believe a turn is coming. So don't think luck is just luck.
If you're in a valley, say a health problem, that's hard to put into words. But remember, we live in a fine era. Think about it: if you'd been born a hundred years ago, five hundred years ago, or in even earlier chaotic times, fate might have been completely different. Compared with that, our generation is already very lucky. After twenty-odd generations of effort, human civilization has reached a height never seen before. Twenty years ago, many things may have been beyond one person's control; today we can meet challenges with more wisdom.
I'd suggest you put your attention on the good things in life. Bad things will happen, that's inevitable, but even in hard times a good life can still be held. That's my view.
Personally, in 94 years, I've never run into anything truly terrible, and many of my friends are the same. I drink Coke when I want, I do what I want; at least so far, everything's still pretty good.
Another example: a pro football player's peak may only last to 30 or 40, but they've long been used to that life cycle. Same if you pick an industry — understand its rules from the start. Baseball players too; every position has its own challenges.
Charlie and I often talk about this: the human body doesn't need excessive exercise. We care about staying healthy, but we don't over-consume ourselves. I use athletes as a metaphor because I want you to see — looking at the positive side matters more. If you want a longer life, and you're lucky enough (like you, coming from far away still full of energy, able to talk and learn with so many smart, interesting people), then you're already luckier than most people of the past few hundred, few thousand years. That's what I wanted to share.
Respected Mr. Buffett, I'm Alisa, from Poland, now in Chicago. The story of that cold January day 74 years ago has deeply inspired me — a Saturday in 1951, you sat eight hours on a train from New York to Washington just to learn about insurance, even though when you arrived Kay's office door was shut. That persistence has always guided me. In 2011, at 15, with the same determination, I wrote asking to meet you. You wrote back that you didn't have much time left, about 3000 days. Now more than 5000 days have passed, and from 1951 to now your passion has always encouraged me. Today I ask again: could you give me a quarter of an hour? Even just an hour in your office? I know your schedule is packed, but as a survivor who went through a lot in Poland, I'm careful with friends but sincere. Please don't refuse me — at this moment 40,000 people stand behind you supporting this request; we are all expressing respect in the open. Finally, allow me to ask again, respectfully: would you be willing to share any one hour of your life with me? Thank you for your precious time.
This is wonderful! Please wait a moment — actually no need to go through my life in detail; I know my own story well. Thank you for asking such an interesting question in front of 40,000 people. Let me share something from when I was young:
In the early days of my business I often drove alone across states to visit different companies. I was still young, and companies didn't have dedicated IR departments; usually the CEO received you directly. I was always afraid of being turned away at the door. Later I figured out a method: when I asked for a meeting, I'd make it clear 'I only need 10 minutes' — unless the other person asked to go longer. You keep the time limit in your own hands.
That reminds me of a classic question from the coal industry 70 years ago: 'If you were stuck on a desert island for ten years, which competitor's stock would you hold?' Managers always love talking about rivals, like kids comparing toys. But I learned to steer the conversation — make sure they don't only talk about competitors, but also lay out their own core strengths.
Today companies are more and more complex; each department is like its own puzzle piece. IR teams always stress the benefits of buying the stock, and that function is getting bigger and bigger. The key is to understand the business in your own way. Berkshire has a unique management philosophy. We provide plenty of material to study, but we really can't interview 40,000 people one by one.
I sincerely admire your persistence, but I have to be frank: this is all we can offer. Your effort is admirable, but the rules have to apply fairly to everyone.
Recommended viewing: the documentary — Becoming Katharine Graham
At the 2017 Berkshire annual meeting we discussed the investment value of large tech companies. Now these firms — Microsoft, Apple, Amazon and so on — have grown to a stage where they don't need outside financing. They have ample own cash, and they're putting huge resources into AI. My question: compared with the past, has your view of these tech giants' balance-sheet structure and capital-allocation strategy changed? Especially given their current strong cash reserves and the large turn toward AI.
That's right. These businesses can earn fat profits precisely because they put in a lot of capital. Any business needs capital; that's beyond doubt. Take Coca-Cola: the bottling business needs a lot of upfront investment in equipment, but once you're in operations, additional capital needed is relatively small, and it can still produce a considerable return. Capital needs on the selling side are even more limited. That business model is excellent and lasting.
From a capital-operation angle, insurance is a special case. P&C needs ample funds as backing, but you can invest the float. Capital-intensive businesses like that, if managed well, bring excellent returns. Apple is another classic case — it almost doesn't need extra financing, and it can keep buying back stock. The price will move around, but the business model is very solid.
In investing, a lot of people have made huge wealth through capital management. Their secret is using other people's money and charging a fee. Even with poor performance, these managers still get considerable income; the ones who do well naturally attract more capital. That's how capital markets work; we don't have to scold it.
After years of thinking, Charlie and I finally chose this model: use investors' capital to create returns, and have them share the risk. It really is one of the most ideal business models. Of course it can be abused; we've seen cases in the US and Canada.
I'm 13, from Florida, my brother's 15, and I came with my dad today, so thank you for hosting the meeting. This is my first time at your annual meeting. My question is: among high-school courses, which ones can affect becoming a great investor later? Could you expand on that?
The teachers you meet in life often have the deepest influence on you. I was lucky: not only did I meet excellent teachers at school, I also learned a lot from employers and seniors. My father was my first investing teacher — because he worked in the investment business, every Saturday I could watch how he did business. I also read a lot of investing books, knowledge other kids rarely touched.
I remember in the Omaha public library I happened to find a 19th-century investing work, and later in New York I found more precious books. I love reading, but nowhere near as widely as Charlie Munger. Someone once asked who I'd most want to have lunch with; my answer is always Charlie. He's a walking library; he always finds real insight in books. Stay curious, and finding like-minded teachers is crucial.
I went to three schools, and ended up at the University of Washington. At each school I met two or three teachers who helped me a great deal. They didn't just pass on knowledge; they gave me special attention and guidance. Professor Benjamin Graham, for example, taught me as carefully as a father. And the book The Great Bridge Flyers gave me an important life lesson.
Father often said everyone is unique. Maybe you feel lost now, but you'll find a path that fits you. In school you'll meet those teachers you especially click with — the way they talk, the way they teach, it all feels right. At Columbia, Professor Graham gave me father-like care.
Looking back, at least ten mentors had a deep influence on my life. They all had one thing in common: they were willing to spend extra time helping young people. I think a good education experience comes more from that personal teacher-student relationship than from the school itself. These thoughts have already gone beyond what I originally meant to say.