Speaking of bucket list destinations this week, we had to throw in a bucket list event. It will only cost you the share price of a single Class A Berkshire Hathaway stock, which currently runs around $471,000. Could a shareholders’ meeting be that exciting? The answer is: yes. Warren and Charlie just know how to bring it. This is the insiders’ look inside what happens in the Berkshire Hathaway Meeting. If you play your cards right, there’s still a chance you can get in on the action for the May 5 – 7 festivities at the CHI Health Center in Omaha.
The Berkshire Hathaway Meeting: A Secret Millionaires Club
Every year in May, Berkshire Hathaway shareholders descend upon the Midwestern town of Omaha. It’s one of the few places outside of Aspen and Jackson Hole, where the “parking lot” is full of private planes. People are not in Omaha for the Dairy Queen, though that’s a Warren favorite. Instead, they’re in Omaha to pay their homage to an American icon, Warren Buffet. From an outsider’s perspective, it defies reason that over 40,000 people from all parts of the globe would travel to Omaha for a shareholder’s meeting. But this is not just any meeting. This is what many consider a lifetime experience. The Berkshire Hathaway Meeting is open only to invited guests and to those who can afford to own shares of Berkshire Hathaway.
Insider tip: almost anyone can go to the Berkshire Hathaway Meeting nowadays, with the opportunity to own Class B shares, which clock in at a much more reasonable $370 or so at today’s market pricing.
A Kickoff of Festivities
The weekend begins with the cocktail reception at Borsheims, one of the Berkshire Hathaway companies. Borsheims is a high-end jewelry and fine china department store. They make it even more upscale for the meeting by bringing in eight-carat diamonds and Chopard watches. Also pretty remarkable are all the paraphernalia for sale, that gets bought up in a frenzy. Think Berkshire-themed Monopoly and Charlie Munger and Warren-themed bobble-heads After all, people with $400k plus stock usually have extra disposable income. The atmosphere for the evening can only be described as Value Investors Gone Wild. There’s free-flowing alcohol and shareholders rocking it out to the band in the parking lot. It’s not all indulgence and shopping though. This year, as part of the wellness craze, there’s even a 5k on Sunday morning.
Dairy Queen + Paxton’s
For dinner in Omaha, the only choice is steak. While Warren is an investment God, Tim Zagat he is not. His recommendations are Dairy Queen and Gorat’s – where the corn is fresh out of the can. Probably not quite what you would expect from the billionaire next door. For the cultural experience, your best bet is 801 Chophouse at The Paxton, an Omaha institution for steak. Paxton’s is usually followed by beverages along Market Street.
The Early Bird Gets the Worm
The Shareholders’ Meeting begins bright and early on Saturday, with the doors opening at 7 AM. As in a U2 concert, but with much wealthier clientele, shareholders are camped out as early as 4 AM. In typical Warren Buffet style, there is no velvet rope or reserved seating. Investors get a prime view of the show on a first-come, first-served basis. When Warren arrives, it is as if a rock star has entered the arena. He sits with his family among the people on the main floor. Bodyguards hold back the throngs of groupies rushing to get closer to their God. Seriously – we can’t make this stuff up.
The meeting kicks off with a Hollywood production film, shamelessly promoting all the companies in the Berkshire Hathaway portfolio. The film is exclusive to the shareholder meeting, so no, you can’t find it online. In the past, celebrities such as the Desperate Housewives stars and Katy Perry, who created laughs at Warren’s expense. Even Warren does not take himself that seriously.
Clear the Way for Charlie
As the film ends, the crowd cheers wildly as Warren and his Vice Chairman, Charlie Munger, take the stage. Warren and Charlie acquired Berkshire Hathaway in 1962 and built it into one of the most admired companies in the world today. If you had invested in a hundred shares of Berkshire for $1,000 at the end of 1967, you would have had over $62 million today. Earnings in the current quarter were an astounding $18.1 billion. This reminds you that Warren has made, and continues to make, a lot of rich people even richer. Warren himself is worth over $106.8 billion dollars, 99.9% of which he plans to leave to charity.
The Unassuming Millionaire
This is the Secret Millionaire’s Club, and the diversity of who is part of this club will surprise you. As you survey the crowd, the wealthy come from all walks of life. Most of the attendees, minus the New York hedge fund managers, are clearly the millionaires next door. They own their own businesses, shop at Walmart and adhere to the value investing principles of Warren Buffet. For the next six hours, Warren and Charlie wittily banter and answer shareholder questions. Charlie may not say much, but what he does say is impactful. Shareholders even ask for personal advice to better themselves and their careers. The audience stays engaged, hanging onto every word. It suspends disbelief that two men in their 80s could engage 40,000 people for a nine-hour day. It is fascinating though to hear their philosophy on the current economic and political issues, as well as pop culture. Warren and Charlie are witty and funny, to say the least.
More than a Shareholder Meeting
As charming and entertaining as Warren and Charlie are, their advice will not make you a better value investor, or person, at the end of the day. The Berkshire Hathaway Meeting is about something else. People come in their wheelchairs, where the Berkshire Hathaway Meeting is the highlight of the year. A father brings his daughter to inspire her to be anything she wants to be. You’ll also see the husband who brings his family who is filled with pride to know he can provide for them because of his investment in Berkshire Hathaway. The Berkshire Hathaway meeting represents the American Dream and the exclusive club of those who have achieved it.
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