2011 Annual Meeting
Annual meeting covering debt ceiling crisis, European debt concerns, and Buffett's "dangerous decade" commentary.
2011 Annual Meeting
Date: April 30, 2011 Location: Omaha, Nebraska Attendees: Warren Buffett (80), Charlie Munger (87) Source: Full Transcript
Overview
The 2011 annual meeting took place during the U.S. debt ceiling crisis and European debt concerns. Buffett and Munger discussed the economic outlook, Berkshire's positioning, and defended their investment approach during uncertain times.
Opening
Buffett on the economy:
"The U.S. economy is recovering but slowly. We're in uncertain times."
On Berkshire's resilience:
"We've been through many crises. We survive and thrive."
Business Results
Insurance Float Growth
On the float:
"Our insurance float continues to grow. It's now over $70 billion."
On underwriting:
"We've had good underwriting results. But we never count on it."
Key Topics
U.S. Debt Ceiling
On the political brinksmanship:
"The debt ceiling debate is dangerous. Default would be catastrophic."
On the dollar:
"If we default, the dollar would fall. That would be very bad."
European Debt Crisis
On contagion:
"Europe has serious problems. The euro was poorly designed."
On the threat:
"The European debt crisis could spread. We're watching carefully."
Berkshire's Cash
On holding cash:
"We keep a lot of cash. It costs us but it's necessary."
On deployments:
"We haven't found elephants. We'll wait."
Investment Philosophy
On the "dangerous decade":
"I said the 2010s would be dangerous. I still believe that."
On patience:
"We're not going to do anything dramatic. We're waiting."
American Express
On the holding:
"American Express is a wonderful business. We've owned it for decades."
On competition:
"Visa and Mastercard are formidable. But Amex has its niche."
Notable Quotes
"The debt ceiling debate is dangerous. Default would be catastrophic."
"Europe has serious problems. The euro was poorly designed."
"I said the 2010s would be dangerous. I still believe that."
Key Themes
- Debt Ceiling - Political brinksmanship
- Europe Crisis - Contagion concerns
- Patience - Waiting for elephants
- Cash - Holding for opportunities
- American Express - Long-term holding
Related
This summary captures the key topics from the 2011 transcript.