2011 Berkshire Hathway AGM Notes (Dustin Hunter)

8/7/2019 2011 Berkshire Hathway AGM Notes (Dustin Hunter)

1/10

BerkshireHathawayAnnualMeetingNotes

April30,2011

DustinHunter([email protected])

SwiftcurrentCapitalManagement

Indianapolis,IN

(Thesenotesaretothebestofmyrecollectionandtrustyinkpen.Discrepanciesarelikelyduetomyerrorinunderstanding&transcribing.)OpeningComments:

TranscriptionsoftheQuestionspertainingtoDavidSokol&LubrizolarepostedontheBRKwebsite.

Earnings(excepthousingrelatedbusinesses)havebeenimprovingquarterbyquarter. 2ndworstquarterforinsurance:

o $50BhittoReinsuranceindustryo BRKistypically5%ofindustryo BRKreinsuranceunlikelytoprofitin2011

GSpreferredshareswerecalledin GEpreferredshareswilllikelybecalledinSeptember BurlingtonNorthern goodyear,andforrailingeneral Reinsuranceestimatedlosses:

o Australia 195Bo NewZealand 412Bo Japan 1,066Bo Total 1,673B(20%fromarrangementsw/SwissRe)o (Basedonpopulationcomparison,NewZealandsituation10xworsethanKatrina)

Geico Apriltornadoswilllikelyresultin25kautoclaimso Significantpolicyincrease:2011Q1(318k)vs.2010Q1(218k)o Goodwill(14B)significantlyunderstatedonbalancesheeto Buffettestimates$1.5kgoodwillforeachpolicyholder

AccountingcommentregardingWellsFargo basedontime&originalpurchasepriceo 3,704kshareswithgainsnotmarkedupo 337kshareswith'losses'markeddowno Net'loss'shown,butnotanaccuratereflection

WarrenBuffett(WB)discussionofDavidSokol(DS)&Lubrizol(LZ)acquisition:o EventsatSalomonBrothers20yrsagowere"Inexplicable&Inexcusable"o DSfailedtosaythathecontactedCitigroup&hadboughtLZshareso DSdidnottrytohidehispurchases afterabigdealoccurs,theyareusuallyrequiredto

submitalistofwhoknewwhatandwhentheyknewit FINRAreviews

o DShasahighnetworth&madesomethinglike24Mlastyearo MidAmericanEnergyownership:

80%Berkshire 10%WalterScott


2/10

BalanceownedbyGregAbel&DS Inthepast,WBlaidoutabonusplanforGregAbel&DSbasedon5year

performancefactorswith$50MtoDS&$25MtoGreg. DSchangedittobesplit

50/50,thusforgoing$12.5M(note:DSsharesofLZincreased$3Mafteracquisitionannouncement)

CharlieMungercommentedthatitisamistaketoassumethatpeoplewillalwaysmakeperfectlyrationaldecisions.

MorningQ&A Warren(WB)unlessnotedotherwise&Charlie(CM)

1) Q)WhenyoufoundoutabouttheDS LZsituation,whywereyounot"ruthless"? (inreferencetothestatementsintheSalomonBrothersvideoclipplayedatthemeetingeachyear)A)(WBranthroughtheplaybyplayoftheevents)

AwareofpotentialdealonJan.14th

March

14th

John

Freund

of

Citi

called

to

congratulate

&

noted

Citi's

work

with

deal

Thistriggereda'yellowlight'&promptedWBtocallMarkHamburg,whothencontactedDS March18th LZsubmittedadraftproxystatementforWBoutliningthehistoryofthe

transaction notedCiti'sinvolvementupfront

RonTollestravelingwithWBatthetimereceiving/communicatinginfoviaRon'sphone plannedBRKboardmeetinguponreturn receivedDSresignation

Uponreturn,WBdraftedthepressreleaseforDSreview DSremovedwordingabouthopesofsucceedingWBdashed,sayingneverintendedtosucceedWB(WBcommentedthathecouldhavebeenmorecarefulwiththe'notillegal'wordinginthepressrelease)

Pertheproxystatement,LZwasinterestedinthedealonDec.17th BRKnotifiedSECthroughMungerTollesOlsen CM Thepressrealeasecouldhavebeenbetter. Itisbettertonotincludeangerinone's

decisions QuotedTomMurphy"Youcanalwaystellsomeonetogotohelltomorrow."

2) Q)Whatwillbetheeffectonstockpricesofthegovernmentendingpermanentopenmarketpurchases?

A)Althoughitisahugeforcethatwillbegone, itiswellknown&likelyfactoredin.

3) Q)HowcanyouinsurethattherearenootherDS'sinlineatBRKnow?A)Commentedthatthelikelypersonis'straightasanarrow'

CM Comment"ThemeekshallinherittheEarth,butwilltheystaymeek?" SafetymeasuresincludingHowardBuffettasanindependentchairman makesiteasierto

changeaCEOifneeded

CM notedsimilaritytoRockefellers&oneinstancewheretheyhadtoremovesomeone4) Q)Ifyouhadanadditional50yearstogowithyourinvestmentcareer,whatadditionalarea/sector

wouldyouaddtoyour'CircleofCompetence'?

A)Wouldwantittobealargesector Techlikely

Largedisparitybetweenthewinners&losers abilitytopickwinnersiskey manyplayers CM TechorEnergy


3/10

5) Q)YoumentionedthatyouwereinitiallyunimpressedwithLZ,andthenquicklywarmedtoit.Whatchanged?

A)Knewnothingaboutthebusinessinitially Charliesmateraboutoil

JamesHambricksubsequentlygaveagoodexplanationofthebusinessthroughDS OilcompaniesarebigbuyersfromLZ itishardtobreakin&competewiththemduetoexisting

customerconnections&somepatents.

CM LZ&Iscarare'sistersundertheskin' inthattherearebarrierstoentryforpotentialcompetitors

6) Q)With$95kbookvaluepershare+discountedvalueoffutureearnings,itseemsthat180k/shareisafairvalue.(BasicallythisquestionerwasaskingBuffetttoverifyhisintrinsicvaluenumber)A)HeandCharliewouldcomeupwithslightlydiffering'ranges'ofintrinsicvalue,notaprecise

number.

CommentedthattheyhavegivensignalsaboutattractivenessofBRKpriceinthepast Currentlynotoverpriced Theyhavebeenlookingatalargeinternationalacquisition.However,

thelargepricetagwouldrequireissuingstock&theyarenotwillingtodoso.

BNSFpurchasewas30%stockandwaspainful CM questionerwaslookingatthetworightfactors&itwon'talwaysbeasattractive

7) Q)youremainpositiveaboutAmerica'seconomicfuturedespitethecurrentturmoil.Whydoyouseegoldwhereothersseesalt?

A)Howcanyounotbepositive...Whenhewasborn,therewasthemarketcrash,thedepression,

andsoon...stillthestandardoflivinghasincreased6for1

DocThompson(fatherinlaw)gavehimatalkpriortomarriagesayingthat"You'llfail,butit'snotyourfaultb/ctheDemocratsareinoffice."

In1951,BenGraham&hisfathertoldhimnottogetintosellingstocksrightnowbelievingtheresults

will

be

unattractive

&

people

will

blame

him.

Ourpotentialisnotusedup It'sjustthattherestoftheworldiscatchingon CM EuropesurvivedtheBlackDeath

8) Q)(Thequestionwasaboutinflationaryenvironmentsandthebestbusinesses.)A)Abusinesswithawonderfulproductthatrequireslittlecapitalreinvestmentisbetterinan

inflationaryenvironmentthanabusinessthatrequiresalotoftangiblecapital Assumingthatthe

businesshaspricingpower

ThinkSeesCandyvs.BNSF refertohisoldFortunearticle'HowInflationSwindlestheEquityInvestor'

CM Theydidn'talwaysknowthis andtheydon'tdoaswellwithlargeramountsofmoneytoinvest

9) Q)AtwhatpointcanweexpecttoseeBRKpaydividends?A)WhenBRKdoesit,shoulddo100% (Itookthistomeanthatalldrypowderformerlywaitingforacquisitionsshouldbedistributedatonce.) Thebasicquestioniswhetherornottheycanturn$1ofearningsintomorethan$1 used

comparisonofasavingsaccountwhereyoucanpullout5%vs.sellingitfor20%overthe

amountyouputin.


4/10

10)Q)WhatareyourthoughtsontherevenueoutlookforWellsFargo&U.S.Bancorp?A)Differentthan'Moneycenter'banks

Bothbankslessattractive U.S.Bancorpwillmakelessinthefutureb/coflessleverageuse Generalrule keepoutoftroubleontheassetside&usecheapcapital CM ReadtheM&TBankannualreport BobWilmersisasmartguy 'OldTestamentProphet' ReadJPMorgan(JamieDimon)lettersaswell Themarkettendstohavemoneyflowtothefinancialsector

11)Q)Commoditieshavedonewellandcontinuetoappreciate,whileBRKhasbeenflat.(Ithinktheunderlyingquestionwaswhethercommoditiesareabetterinvestment.)A)BRKhasdonewellovertimecomparedtogold

Hethinksofthreecategoriesforinvestment:o Currencies

Performancetiedtogovernmentbehavior Almostalldeclineovertime

o Commodities(goldlike) Theassetdoesn'tdoanything Hopethatotherswillbewillingtobuyformorelater(BiggerFool) ReadKeynes,Chapter12 relatedtohavingtooutguesswhatothersare

guessing

Mentionedprevioussilverinvestment&rationalizedbasedonindustrialuseo ProducingAsset

Farmexample Doesitproductionmeetyourexpectationsindependentofjustitssalesprice

Therearetimeswhencommoditiesmovealot.Butovertime,producingassetswill

do

better.

Rising

prices

create

their

own

excitement

SM Somethingsillyaboutanassetthatgoesupiftheworldisgoingtohell12)Q)Whenyouwerestartingyourfirstfund,howdidyouattractyourfirstinvestors? andsubsequent

ones?

A)Initialmoneycamefromfamilyandcollegeroommate

Puthisownmoneyinthefund Itwasaslowprocess stumbledalong Spreadbywordofmouth CM Leftthefamilybusiness&wasslowtodoso CM Conductyourselfinawaythatotherstrustyou CM Currentfeestructuresallowpeopletogetrichwithoutperformance

13)Q)BRKisaconglomerate.Howisitdifferentthanthe60'sconglomerates?A)Conglomerateallowsforthetaxefficienttransferofexcesscashfromonebusinesstoanother

Otherconglomeratesbecamestockissuingmachines Usingtheiroverpricedstocktopurchaseothercompanies(Gulf&Western,Litton,Teledyne)

Teledyneboughtbackitsownstockwhenunderpriced&benefittedshareholders


5/10

BRK notthesamegame rationaleisforrunningthebusiness theefficienttransferofexcesscashforefficientuse

14)Q)Whatdoyouwantyourlegacytobe? orhowdoyouwanttoberemembered?A)'Oldage'......Teacher

CM Hisfortunewasfairlywon&wiselyused15)Q)Regardingthedeclineofthedollar,BRKhaspreviouslyhadashortposition.Whatareyoudoing

now?

A)Notactiveinthatcurrently&notlikelytodo

Thedollarwilldeclineovertime butallcurrencieswilldecline shortinghastopredictwhichoneswilldecline

The1930dollarisworth6cents yetinflationdidnotdestroyus CM Greeceisextremelydysfunctional,butsurviving

16)Q)(ThisquestioneffectivelyaskstocompareBRKtoanoloadfund,presumablyanindexfund)A)Agreesthatforthenonactiveinvestor,anindexfundisgood

CM Formanagedfunds,thenext50yearswillbeharderthanthelast50years17)Q)WhyareoutsideinvestmentsbyBRKemployeesnotscreened?

A)BRKisnotanadvisororafund

RulesareinplaceforBRKmanagers PastV.P.ofBRKsubsidiary BRKprovidedtheevidencethatsenthimtojail JohnsManvillerecentlyissueditsowninternalletterabouttheDSLZissue&guidancefor

internalbehavior

CM Wallstreetentitieswithbigcompliancedepartmentsstillhavebigscandals18)Q)WhatareyourthoughtsonhelpfulchangesconcerningtheFed,theeconomy,andeconomic

policy?

A)Hugestimulus takingin15%GDPandspending25% notsustainable

Naturalcapitalismisthebiggestfactor Whenresidentialconstructionpicksup,therewillbemuchmoreemployment thereisan

indirectreservoirofjobsassociatedwithhousingindustry

Wehavecomebackwellbasedonthehitwetook TTI(electriccomponents)andIscar,consistentincreases CM Notenoughfinancialindustryremediation CM Needataxsystemthatdiscourages'trading' highfrequencytradingisbasicallylegalized

'frontrunning'

CM 25%ofengineersgoingtothefinancialsector CM OtherthingsthatgoonmakeDSlooklikeahero Note:S&Pfuturescontractthatisheldfor say10seconds gainstaxedas60%longterm/40%

shortterm(Wow)

UpdateonProtegeFundofFundsvs.S&P500IndexFundcontest(3yearmark):

FundofFunds (4.24%) S&PIndexFund(8.18%)


6/10

AfternoonQ&A Warren(WB)unlessnotedotherwise&Charlie(CM)

19)Q)You'vebeenpositiveonBYD.Isitstillattractivetoday?Whereisyourconfidencelevel?A)CM Theinvestmenthasstillmademoney

Delays&glitchesaretobeexpectedinacompanygrowingatthatrate goalwastodoublesaleseachyear&diditfor5years

20)Q)Whatareyourthoughtsoncommodities&commodityequities?Isthereanoilbubble peak?A)BRKhadapositionalongtimeagowhenoilwas$10/barrel

Itisafiniteresourcewith88Mbarrelsbeingproducedeachday Itwillsellformore...someday... Explorationdealsaremoreexpensivenowthaninthepast playersaremoresophisticated Thedollarwilldeclineovertime Inflationwillincreasecosts CM Overtime,BRKwouldhavedoneworseincommodities CM ItworksbestforthosewhobribeNigeria...

21)Q)Whatisthemostimportantthingyou'velearnedthisyear?A)CM ReadingGoogle'sBook referringtotheirengineeringculture

HaveCharliedothepressreleases...22)Q)Whatareyourthoughtsonthepathahead Istheremore'TooBigtoFail'inthefuture?

A)Freddie/Fanniehavenotreconstituted

Wasonthefenceregardingtheautomanufacturers endsupthingitwasrighttodo Problemwillstaywithus Regarding'TooBigtoFail'Companies CEO&spouseshouldloseeverythingifbailoutsare

required Boardshouldhavetoatleastrepayprior5yearscompensation

Leveragelimitsshouldbereduced CM Contextofpastfailures&excesses Currentsituationshouldhaveseenchangelikethe

30's

Finance&Economicsinacademia Teachingthewrongthingsaddstotheproblem23)Q)WB&MelindaGatesresignedfromWashingtonPostBoard.Willtherebefuturesharesales?

A)NoPostshareswillbesold relatedtobeing80andmosteffectiveuseoftime stillhappyto

adviseanytimeheisneeded

CM OntheCostcoBoard&reallylikeswhatthey'vedone ingeneral,beingonlotsofboardsisforthebirds

24)Q)WillaweakdollarerodeBRK discussBRK'spricingpower?(ThequestionerhadanAustralianaccent,sotheanswersrelatetoUS/Australia.)A)

Australia/US

could

move

no

specific

knowledge

CM Australia'sopenpitmines alludedtobeingapowerfulpositive butcan'tcompare25)Q)RelativeimportanceofBRKequityportfolio(Comparedtopurchasingwholecompanies)Where

willitgointhenext510years?

A)Stillspendmoretimethinkingabouttheportfolio&stocks acquisitionsjustdon'toccurthat

often

CM Willalwayshaveportfoliowithsecuritiesbecauseofinsuranceoperations


7/10

26)Q)With$17Bprofit/8yrsisn'titfairtoplacesomeintrinsicvalueontheunderwritingoperations?Arebreakevenassumptionstooconservative?

A)Hardtogiveguidance,butyes,thereislikelytobeunderwritingprofitovertime

CM Askedanotherway,wouldWarrentradeBRKinsuranceoperationforanyotherintheworld? No

GenRehadtohavesomethings'shakenout',butpleasedwithoperationnow FirstpurchasewasNationalIndemnityfor$7M.Nowhasmorenetworththananyother.

27)Q)Inhighinflation,whatarethebestandworstbusinessesforBRK?A)Pricingpower&marketpositionarekey

See'sisbetter Utilitiesareworse,makingabondlikereturn CM InCalifornia,proposedhighspeedrailprojectwith800milesoftrackhasabudgetof$43B

Forsameprice,BNSFhas22,000milesoftrack+engines&bridges sobasedonreplacement

cost,isagooddeal

28)Q)WillBRKsplitthe'A'shares Effects Pros&Cons?A)No Alreadyhavewiththeformer'B'sharesandthenthesubsequent'B'splitrelatedtotheBNSF

acquisition

CM Warrenusedtotellpeople"Mayyoulivetillthe'A'sharessplit."29)Q)CanyougiveusapolicyexampleofAjitinthereinsurancebusiness tohelpunderstandhis

thinking?

A)Willingtodiscussbigtransactions alwaysthinkg&beingcreative willingtolookatnewareas

CM Secretofsuccess beingveryinterestedinwhatyoudo AjitthinksofBRKfirst couldgetmoremoneyelsewhere CM promptedWBtofollowuponworstbusinesses retailing

30)Q)(Thequestionhadtodowithgoodwillamortization&returnoncapital)A)

Do

not

include

in

return

on

capital

calcs

Use

return

on

tangible

assets

Goodwillshouldeitherbekept(hasadurablecompetitiveadvantage)orwrittenoff(noadvantage) butnotamortized

CM Muchcheapertopurchasebusinesseswithinsurancefloat helpswhenthinkingthroughreturnoncapital(i.e.LZ)

31)Q)Inthebook'DamnRight',Cmmentionsthathewouldteachfinancethroughcasestudiesof100good&badbusinesses.Whataresomeexamplesofthose?

A)CM Costcoisanexampleof'right' Hasfosteredacultureofextrememeritocracyandhonesty

Thisisrare

GMisanexampleof'wrong' Verysuccessfulatonetime focusonshorttermandcontinualeroding&obligationsbyunionsendedupwipingoutshareholders

32)Q)Inarichsociety,howcanyouincentivizekidstoworkhard&besuccessful?A)WBwasrichaskidswereinhighschool triedtonotlivesodifferentlyfromothers

Don'tpushtooutdoparentsinexactsamething CM "Losethefightasgracefullyasyoucan."(meaningtry,butit'stough) CM Gettheminterestedinsomething...


8/10

33)Q)(ThisquestionrelatedtotheBRKsuccessionplanandcompensationoffuturemanagers.)A)Likelyseeabasesalarysupplementedbyoptions(basepriceattimeofissuanceandincrease

annually)

CM Notunthinkablethatsomeonecouldcontinueinthecurrentscenario34)Q)Howdoesrenewableenergy(cleanwater&food)affectBRKdecisions?(relatedtoinvestments)

A)Likelyseeabasesalarysupplementedbyoptions(basepriceattimeofissuanceandincrease

annually)

CM Withenoughenergyavailable,thecleanwaterproblemgoesaway CM Smarttobuyother'shydrocarbonsandsavewhatwe'vegot

35)Q)DidLZviolateitsdutytoshareholdersinnegotiatingatransactionwithBRK&notshoppingforthebestprice?

A)CM No,BRKwouldnothaveparticipatedotherwise

WithBRK,youhavesignificantsize&certainamountofmoney36)Q)HowdoyoudetermineifBRKisallocatingcapitalwellgoingforward?

A)Comparepricetoamountspentonbusinessesovertime

37)Q)ExplainwhythereweredifferenttermsforGS,GE,Dow,Wrigley/Mars,SwissRedeals.A)Eachoneoccurredatdifferenttimes Thus,therearedifferentopportunitycostsgiventhe

environmentatthetime

BRKwasearlyontheGS&GEdeals Thedealsmentionedarenotrelated Cannotmeasureeachdecisionagainstthebestpastdeal CM Nootherwaytodoit

38)Q)Whatisyouradviceregardingbeingablereadfaster speedreading?A)WBdoesnotreadfast&isslowernowthanheusedtobe

Mayhelpifyoucandoit butmaynotgetdetails&insightsoutofthematerial

CM

it's

over

rated

39)Q)WhatareyourthoughtsonCongressandpoliticsrelatedtothedebtceiling?A)PastexampleofIndianavotingtochangePItoaneven3.0tomakeiteasierforkidsis

comparabletothisdebate

Thecountryhasadifferentdebtcapacityatdifferenttimes Theceilingjustallowsforperiodicfights

Itisimportanttobeabletoborrowinyourowncurrencyvs.another night&daydifference ExampleofwantingtobuyaChicagobankinthe1950's,butcouldonlygetfinancingfrom

Kuwait Didnotdoitb/cnoideaofwhatthatcurrencymightdo

40)Q)DiscussBRKexposurelimitsregardingMidAmericanEnergyanditsproposednuclearplant.Istherisk/rewardsafe/acceptable?

A)TheU.S.is20%nuclear

Nuclearissafe ThereactiontotheincidentinTokyomakesitunpopular,butthatdoesnotchangehisview

CM Youcannotbecompletelyriskaverse alsonewerplantswillbesaferthanthecurrentonesoperatingrightnow

ThisdoesnotposeariskthatthreatensBRK'sexistence


9/10

41)Q)WillyoueverconsiderreinstatingBRK'sshareholderdirectgivingprogram?A)Itwastaxefficienttodonateto501c3's

Nootherbusinesscopiedit somedissentionaboutit AfterPamperedChefacquisition,therewasacampaigntoboycotttheindependentpeoplewho

soldPamperedChefproductsb/cother,unrelatedBRKshareholderschosetodirecttheirgiving

toorganizationslikePlannedParenthood.Sinceithadaneffectonthelivelihoodofthe

independentcontractors,itwasdiscontinued.

42)Q)Discusslongtermcashflowsandhowyouweighfutureprojectionsvs.pastreliability.A)Someproductstravelbetter SeesCandyhasastrongpositionoutwest,buttravelstoother

areaslesswell.

LZ canexpectsomegrowthbutnotbig CM Businessschoolsemphasizeprojections effectismoreharmthangood Thinkaboutfalse

projections&thesignificanceofthatondecisions

CM ExampleofScottFetzerbeingshoppedbyFirstBoston &couldnotgetadeal BRKdidthedealw/oFirstBoston&Charlie'scommentwasthathe'd'paythemtokeeptheirreport'.

(meaninghewasbetteroffnotevenseeing&beinginfluencedbyit) CM mentionednoteverseeingWBdoaformal'model'buttheybothhavementalmodelsthat

theyrunthrough(AgoodreferenceisAliceSchroeder'slecturevideoattheDardenSchoolin'08)43)Q)Inrecent13Ffilings,thereare(3)stocksthatarelistedunderWarrenE.Buffettwithnoother

reference.Whatdotheserelateto?

A)DefertoMarkHamburg LikelyrelatedtopensionbenefitplansinsideofBRK

44)Q)WhenlookingatChina,whatdoyoudodifferent Whatelsedoyoulookfor?A)Generallythesameinvestmentprocess Lesssure Lessclearinformation

CM Sofewthatit'shardtogleanapattern45)

Q)

Discuss

BRK's

cash

and

where

its

held.

A)Doesnotplaytheshorttermgameinpaper&moneymarkets

Mostlyintreasuries,eventhoughunattractive CM Stupidtomaximizeshorttermmoney Examplebuyingpipelinesin'08happenedinless

thanaweek Havetobesurethemoneyisready

46)Q)MidAmericanEnergyhasinvested$1Binwindpower.Canyouexplainhowtolookatthat?A)Cannotcountonthewind onlyblows35%ofthetime

Onlymakessensewithgovernmentcredits ItisanassettoBRKb/ctheypayalotoftaxes,thusthetaxbenefitcanbeused

47)Q)HowclosetobankruptcywasNetjetswhenSantulileft?A)WouldhavefailedifindependentfromBRK,butnotinsideBRK

48)Q)Whatisyouradviceforyoungpeople startups/entrepreneurs?A)WB'sDaleCarnegiediplomahangsonhiswall Communicationskillsarethefirstareatoimprove

toincreasevalue

CM EconomyistoughMicroiseasy Macroishard&eventheexpertsdisagreeonit49)Q)HowdotheMunichRe&SwissRerelationshipsaffectBRK?

A)NotofamagnitudethatwouldaffectBRK'sowninsurancebusiness


10/10

CM Reinsuranceisnoteasy.First15yrs,BRKdidnotsucceed(Lookseasy,butit'snot) Derivativesatinvestmentbanksledtohorrendouslossesforbusinessowners

50)Q)HowdidyourrelationshipwithToddCombsbegin?A)HesentalettertoCharlie,andsubsequentlymetfordinner.CharliethentalkedtoWB

51)Q)ThoughtsontherecentJ&JacquisitionofSythes?A)NoSpecificknowledge

beingdonewith2/3stock betterifallcashdeal(stillfeelspainfromKraftdeallastyear)52)Q)RegardingBRK'sEuropeanacquisitionbeingtoobigforacashdeal,Whatcanbedonetohelp?

A)LZis$9B Coupleofotherscurrentlylookingat noelephantsrightnow

Commentaboutoverpriceddotcombusinessesbeingableissue'confetti'forrealassets(meaningtradeoverpricedpiecesofpaperforgoodbusinessproducingrealthings)

53)Insightintohousing&RealEstateMarketinthenext10years??A)BoughtAlabamabrickbusinessb/cAlabamausesmorebrickthananyotherstate Overtime,

houseswillbebuiltinkeepingwithhouseholdgrowth

Nomovementsinceannualreport CM Lumpyearningareok WBnotedthatSeesCandyhaslosses8mos.oftheyear.

End

Documents

2011 Berkshire Hathway AGM Notes (Dustin Hunter)