We have just obtained the the best transcript of Warren Buffett’s Berkshire Hathaway meeting. Below it is embedded in scribd, enjoy!
H/T shai Dardashti
WB: Good morning. I’m Warren and this hyperkinetic fellow is Charlie. We’ll conduct this pretty much as we have in past. We’ll take questions until 3:30, and then begin the regular meeting of shareholders at that time. Feel free to shop. See ‘s Candy has placed a lollipop at every seat, and if you could open
the lollipop now we’ll post a picture on Facebook, and for the media. And now you can take off the cover and good part comes. CM and I have fudge and peanut brittle. If we’ve consumed 10k calories each we’ll have to stop early.
We released Q1 earnings yesterday. In general, all our companies with the exception of those in residential construction have pretty much shown good earnings. Our five largest non-reinsurance companies all had record earnings last year, $9bil pre-tax. I said that I thought they would earn $10bil
pretax this year, and nothing we have seen so far would cause me to backtrack on this. One cost at Geico is an accounting change or deferred policy acquisition cost, dpac. No change on cash, but took earnings down 250m pretax. It is a deferred advertising issue. We had a terrific Q1 at Geico, float grew and we had a 9% margin. The Dpac charges may affect 2Q and a little in 3Q, but underlying figures are somewhat better than what we’ve presented.
We feel good about Q1 and about the year. We should introduce the directors. Introducing the directors: Charlie Munger. Please hold applause until end, but I know he’s sort of irresistible. Howard Buffett, Steve Burke, Susan Decker, Bill Gates, Charlotte Gottesman, Koegh, Don Murphy, Walter Scott, and Ron Olson.