2009 Annual Meeting
Post-crisis annual meeting where Buffett explained why he was buying during the panic, discussed the "financial Pearl Harbor," and Munger called derivatives "weapons of mass financial destruction."
2009 Annual Meeting
Date: May 2, 2009 Location: Omaha, Nebraska Attendees: Warren Buffett (78), Charlie Munger (85) Source: Full Transcript
Overview
The 2009 annual meeting was held as the financial crisis was winding down. Buffett explained why he was buying during the panic, discussed the "financial Pearl Harbor," and Munger called derivatives "weapons of mass financial destruction."
Opening
Buffett on the crisis:
"We've been through a financial Pearl Harbor. The system nearly collapsed."
On the government's response:
"Treasury and Fed acted boldly. Without them, it would have been worse."
Business Results
During the Crisis
On Berkshire's performance:
"We didn't panic. We kept investing."
On cash position:
"We had cash when others needed it. That's when opportunities appear."
Key Topics
Buying During the Panic
Buffett explained his approach:
"Be fearful when others are greedy, and greedy when others are fearful."
On Goldman Sachs:
"We invested in Goldman because they had the best franchise in the world."
On the prices available:
"For the first time in my life, great businesses were available at ridiculous prices."
Derivatives as Weapons
Munger's famous line:
"Derivatives are weapons of mass financial destruction."
On the danger:
"They're like weapons that can detonate anywhere in the system."
What Went Wrong
On the crisis causes:
"Too much leverage everywhere. People forgot about risk."
On the rating agencies:
"The rating agencies were wrong. They were paid to be wrong."
The Bailout
On TARP:
"The bailouts were necessary. The alternative was worse."
On moral hazard:
"We're creating moral hazard. But we had no choice."
Looking Forward
On the recovery:
"America will recover. We've always recovered."
On Berkshire's position:
"We're stronger than ever. We have money to deploy."
Notable Quotes
"Be fearful when others are greedy, and greedy when others are fearful."
"Derivatives are weapons of mass financial destruction."
"For the first time in my life, great businesses were available at ridiculous prices."
"America will recover. We've always recovered."
Key Themes
- Financial Pearl Harbor - The severity of the crisis
- Buying the Panic - Being greedy when others are fearful
- Derivatives Danger - Munger's famous condemnation
- Government Response - Necessary but imperfect
- Recovery - Optimism about the future
Related
- meeting-2008 - During the crisis
- meeting-2010 - Post-crisis optimism
- warren-buffett
- charlie-munger
- berkshire-hathaway
This summary captures the key topics from the 2009 transcript.