2003 Annual Meeting
Annual meeting during the Iraq War period, discussing Berkshire's resilience, investment in Chinese oil, and Munger's criticism of corporate governance failures.
2003 Annual Meeting
Date: May 3, 2003 Location: Omaha, Nebraska Attendees: Warren Buffett (72), Charlie Munger (79) Source: Full Transcript
Overview
The 2003 annual meeting was held during the Iraq War period. Topics included Berkshire's resilience during uncertain times, investment in Chinese oil, and Munger's criticism of corporate governance failures.
Opening
Buffett on the times:
"We're living in uncertain times. But America will prevail."
On Berkshire:
"We're strong. We've weathered many storms."
Business Results
On performance:
"The businesses are doing well. We've had good results."
On insurance:
"Float is growing. The insurance model is working."
Key Topics
China Investment
On the oil investment:
"We invested in Chinese oil. It's a great resource."
On the opportunity:
"China has huge potential. We're positioning early."
On the risks:
"There are political risks. But the economics are compelling."
Corporate Governance
Munger on failures:
"Corporate governance has failed in many places."
On Enron-style problems:
"The accounting was fiction. People believed what they wanted to believe."
On incentives:
"Stock options created wrong incentives. Managers gamed the system."
Berkshire's Approach
On integrity:
"We tell it like it is. Our managers are honest."
On alignment:
"Our managers own stock. Their interests match yours."
War and Economy
On the conflict:
"War is disruptive. But economies recover."
On oil prices:
"Oil is volatile. It affects everything."
Notable Quotes
"Corporate governance has failed in many places."
"The accounting was fiction. People believed what they wanted to believe."
"China has huge potential. We're positioning early."
Key Themes
- War - Uncertain times
- China - Oil investment
- Governance - Munger's criticism
- Integrity - Berkshire's approach
- Resilience - Berkshire's strength
Related
This summary captures the key topics from the 2003 transcript.