One possible improvement for the annual meeting format could be to have three sessions: One with Greg Abel and future Chairman Howard Buffett, another session with Ajit (and perhaps his most trusted lieutenant), and a final session with top managers of the non insurance businesses. I think that the highly abbreviated Q&A this year is meant to test the waters for attendance and interest and I hope the Q&A eventually gets back to the ~5 hour format of past years.
I love that idea to include Howard Buffett. The few times I've heard him speak have been mostly philanthropy-related, so it would be nice to hear from him about Berkshire and his eventual role as non-executive chairman.
Thanks, Kevin, for your summary of Greg’s first letter. Reading his letter, I felt the same as you. He captured well the essence of what Warren is leaving behind: a solid foundation of what Larry Cunningham described as a Margin of Trust. When I met with Warren in 1985 he noted that he measures his performance as manager by how few shares trade—to which he added: that is not how his fellow CEOs or how they think on Wall Street. I’m sure Greg will grade his performance similarly.
Overall, I think it was a good letter. It carried a more corporate and restrained tone, rather than the colorful, almost conversational style Warren mastered.
In a way, I'm glad that Abel didn't try to copy Buffett's folksy writing style. I'd rather hear from the new CEO in whatever way is most authentic to him, even if it is more business-like. (And hopefully we can get our Buffett fix with more Thanksgiving letters in the future.)
I'm thrilled you loved Greg's letter, as did I. I met Warren at a party at his house, years ago, totally terrified to meet the, then, "world's richest man." However, I came to realize that there are, indeed, people you can trust.
Charlie sealed the deal at my first Wesco meeting when a well-suited businessman in the audience asked Charile, if he meant, ... fill in the blank. Charlie simply said, "I meant what i said."
Next....
I've been a happy Berkshire shareholder ever since. What I hear and see in Greg, is more of the same. Thank goodness.
Thank you for your excellent summary and look forward to your further analysis of Greg's first letter.
Hi Elizabeth - Thanks! I always loved that about Charlie. He was the epitome of "means what he says and says what he means". I know it will be impossible to replace Warren and Charlie atop Berkshire, but I agree that Greg seems to be an amazing choice. Every time I hear him speak (or write), he wins me over more and more.
We are shareholders since 2012. BRK's performance has declined over time for reasons that the company managers themselves understand. It was acceptable for WB to not address the issues given his extraordinary history but it is not for Greg as leader. It would have been OK for Greg to say I understand the issues and I will take the time to consider and address the issues in a manner consistent with Berkshire's history and culture. It is not acceptable to say BRK's declining performance is acceptable due to it's size & history which is effectively what he did. It was a great letter for fans of WB & history, it was not a great letter for shareholders of Berkshire looking forward. I say this as a big fan of WB & CM *and* as shareholders of BRK.
One possible improvement for the annual meeting format could be to have three sessions: One with Greg Abel and future Chairman Howard Buffett, another session with Ajit (and perhaps his most trusted lieutenant), and a final session with top managers of the non insurance businesses. I think that the highly abbreviated Q&A this year is meant to test the waters for attendance and interest and I hope the Q&A eventually gets back to the ~5 hour format of past years.
I love that idea to include Howard Buffett. The few times I've heard him speak have been mostly philanthropy-related, so it would be nice to hear from him about Berkshire and his eventual role as non-executive chairman.
Thanks, Kevin, for your summary of Greg’s first letter. Reading his letter, I felt the same as you. He captured well the essence of what Warren is leaving behind: a solid foundation of what Larry Cunningham described as a Margin of Trust. When I met with Warren in 1985 he noted that he measures his performance as manager by how few shares trade—to which he added: that is not how his fellow CEOs or how they think on Wall Street. I’m sure Greg will grade his performance similarly.
Thanks Arthur! Greg's message of stability and stewardship really reinforced how much he has been influenced and taught by Buffett.
Interesting: today half of the average A shares traded; twice the average B shares traded. Non-owners sold.
Overall, I think it was a good letter. It carried a more corporate and restrained tone, rather than the colorful, almost conversational style Warren mastered.
In a way, I'm glad that Abel didn't try to copy Buffett's folksy writing style. I'd rather hear from the new CEO in whatever way is most authentic to him, even if it is more business-like. (And hopefully we can get our Buffett fix with more Thanksgiving letters in the future.)
Agreed!
Dividend policy was a bit disappointing, though admittedly it is unlikely to change as long as WEB is around.
My rule of thumb for Berkshire and dividends: I'm reasonably sure it will happen in my lifetime, but I can't narrow it down any more than that.
I'm thrilled you loved Greg's letter, as did I. I met Warren at a party at his house, years ago, totally terrified to meet the, then, "world's richest man." However, I came to realize that there are, indeed, people you can trust.
Charlie sealed the deal at my first Wesco meeting when a well-suited businessman in the audience asked Charile, if he meant, ... fill in the blank. Charlie simply said, "I meant what i said."
Next....
I've been a happy Berkshire shareholder ever since. What I hear and see in Greg, is more of the same. Thank goodness.
Thank you for your excellent summary and look forward to your further analysis of Greg's first letter.
Hi Elizabeth - Thanks! I always loved that about Charlie. He was the epitome of "means what he says and says what he means". I know it will be impossible to replace Warren and Charlie atop Berkshire, but I agree that Greg seems to be an amazing choice. Every time I hear him speak (or write), he wins me over more and more.
We are shareholders since 2012. BRK's performance has declined over time for reasons that the company managers themselves understand. It was acceptable for WB to not address the issues given his extraordinary history but it is not for Greg as leader. It would have been OK for Greg to say I understand the issues and I will take the time to consider and address the issues in a manner consistent with Berkshire's history and culture. It is not acceptable to say BRK's declining performance is acceptable due to it's size & history which is effectively what he did. It was a great letter for fans of WB & history, it was not a great letter for shareholders of Berkshire looking forward. I say this as a big fan of WB & CM *and* as shareholders of BRK.