2019 Annual Meeting
Final annual meeting with Charlie Munger present in person, covering buyback policy, Kraft Heinz lessons, furniture retail competition, and Munger's succession humor.
2019 Annual Meeting
Date: May 4, 2019 Location: Omaha, Nebraska Attendees: Warren Buffett, Charlie Munger (final in-person appearance) Source: Full Transcript
Overview
This was the last annual meeting with Charlie Munger present in person before his passing in late 2023. Munger was 95 at the time and participated fully in the Q&A session with characteristic wit and wisdom.
The meeting featured discussions of Berkshire's buyback policy, lessons from Kraft Heinz, competition facing retail businesses, and memorable Munger commentary.
Business Results
Q1 2019 Performance
Buffett emphasized focusing on operating earnings:
"Pay attention to operating earnings, not accounting losses."
New Headquarters Lease
Berkshire signed a 20-year lease for Omaha headquarters, signaling long-term commitment to Omaha.
Key Topics
Munger's "Insurgency Campaign"
Munger joked about succession, wearing buttons that read:
"Maturity, experience, why accept second best? Vote for Charlie."
Share Buybacks
Munger signaled more aggressive share repurchases:
"I predict we'll get a little more liberal in repurchasing shares."
On buybacks at the right price:
"We will spend a lot of money on buybacks if the price is right."
Kraft Heinz Lessons
Buffett acknowledged overpaying:
"Kraft Heinz is a good business, but we paid too much. That was a mistake."
Despite problems, would partner with 3G again:
"Despite Kraft Heinz problems, Berkshire could partner with 3G again. They're good operators."
Precision Castparts Outlook
On improving earnings:
"Buffett expects Precision Castparts earnings will 'improve fairly significantly.' We're working through the cycle."
BNSF Railway
On adopting precision-scheduled railroading:
"BNSF may adopt 'precision-scheduled railroading.' It's more efficient."
On energy efficiency improvements.
Banking Regulations
On CEO accountability:
"Bank CEOs who make bad mistakes should lose all their net worth. They're responsible."
On regulatory limits:
"Berkshire will probably increase stakes above 10% if regulations are eased."
Furniture Retail Competition
On internet competition:
"Internet competition for Berkshire's furniture retailers. We're feeling the pressure."
Investment Mistakes
Buffett on learning from errors:
"The older you get, the better you understand human behavior. And mistakes."
Alternative Investments
On pension funds and fees:
"Pension funds should avoid 'alternative' investments. The fees are too high for most."
Value Investing Evolution
Defending the Amazon investment:
"Amazon buy doesn't mean portfolio managers aren't 'value' investors. Value has evolved."
Insurance Business Value
On the insurance operations:
"Berkshire insurance businesses are worth more than you think. The float is extremely valuable."
Apple Success
On Apple's stock performance:
"Buffett's biggest problem with Apple is the stock keeps going up. We should have bought more."
Notable Quotes
"Kraft Heinz is a good business, but we paid too much."
"I predict we'll get a little more liberal in repurchasing shares."
"The older you get, the better you understand human behavior."
"You're just going to have to endure us." (Munger on succession)
Key Themes
- Munger's Final Appearance - Last in-person meeting
- Buybacks - More aggressive repurchase policy
- Kraft Heinz - Lesson learned about overpaying
- Competition - Retail facing internet pressure
- Insurance - Float value underestimated
Related
- meeting-2020 - First virtual (COVID) meeting
- meeting-2023 - First meeting without Munger
- warren-buffett
- charlie-munger
- berkshire-hathaway
- kraft-heinz
This summary captures the key topics from the full 2019 transcript.