2015 Annual Meeting
Annual meeting covering record earnings, Clayton Homes acquisition controversy, Kraft Heinz deal, and Charlie Munger's sharp criticism of investment management industry.
2015 Annual Meeting
Date: May 2, 2015 Location: Omaha, Nebraska Attendees: Warren Buffett (84), Charlie Munger (91) Source: Full Transcript
Overview
The 2015 annual meeting covered record earnings, the Clayton Homes acquisition controversy, the Kraft Heinz deal, and Charlie Munger's sharp criticism of the investment management industry. The meeting also discussed the anniversary book and honored the late Don Keough.
Opening
Buffett's classic opening:
"I'm Warren; this is Charlie. He can hear. I can see. We work together."
Tribute to Don Keough
Buffett honored former director Don Keough who passed away:
"Don Keough was my neighbor from over 55 years ago. He was a coffee salesman, then broadcast Nebraska football games."
On his legacy:
"Don was always there for me. We'll miss him terribly."
Carrie Sova Recognition
Buffett praised the meeting organizer:
"Carrie Sova is a 30-year-old woman who has a 1.5-year-old baby at home and manages to put on this whole event."
On the commemorative book:
"She put together a terrific book on Berkshire's 50 years. The credit goes to Carrie."
Business Results
Record Earnings
Buffett highlighted Berkshire's performance:
"We've had record earnings. The businesses are performing well."
On the diversified portfolio:
"Our subsidiaries across insurance, railroads, and energy are all contributing."
Key Topics
Clayton Homes Controversy
On the Clayton Homes acquisition:
"We've taken some criticism on Clayton. But we run it the right way."
Kraft Heinz Deal
On the major acquisition:
"The Kraft Heinz deal was a great opportunity. 3G Capital is a great partner."
On the partnership:
"We provide the capital, they provide the operational expertise. It's a good combination."
Performance of Portfolio Companies
On IBM investment:
"IBM is a long-term holding. We're patient with it."
On Coca-Cola:
"Coca-Cola continues to deliver. The brand is incredibly strong."
Insurance Industry
On GEICO:
"GEICO is growing well. The direct model continues to gain share."
On reinsurance:
"The reinsurance market is competitive. But we have advantages others don't."
Railroad Performance
On BNSF:
"BNSF is performing well despite some headwinds. The railroad is essential."
On energy shipments:
"Coal shipments are down but intermodal is up. We're adapting."
Energy Sector
On Berkshire Hathaway Energy:
"Our utilities are stable. We're investing in renewable capacity."
On the future of energy:
"The energy business is changing. We're positioned for the long term."
Notable Quotes
"I'm Warren; this is Charlie. He can hear. I can see. We work together."
"Don Keough was always there for me."
"The Kraft Heinz deal was a great opportunity."
Key Themes
- Record Earnings - Berkshire performing at all-time highs
- Kraft Heinz - Major new acquisition with 3G
- Clayton Homes - Defending the manufactured housing deal
- Patience - Long-term holding philosophy
- Energy Transition - Investing in renewables
Related
This summary captures the key topics from the 2015 transcript.