The Omaha Experience – attending the Woodstock of Capitalism aka the annual shareholders meeting of Berkshire Hathaway

There are a few wish lists that I have had over time. Like I am sure, all of us do.

One of those was to be able to go and watch tennis action at the Wimbledon Championships . I had the good fortune to accomplish this wish, a few years ago.

One other wish was to be able to attend the annual shareholders meeting of Berkshire Hathaway and see Warren Buffett and Charlie Munger in person, over the day-long event that happens in Omaha, Nebraska, in the US.

Few years back, I booked the hotel and had worked on the shareholder badges for the event also, and I was all set to go. However, Covid hit, and I could certainly not travel, but moreover, the event itself was cancelled that year.

Then last year, again, I had booked the hotel and had also worked on the shareholder badges that get you entry. But I met with an accident that led to some health issues, and I was stuck at home for a few months, and was advised to not travel. And I could not make it last year as well.

Meanwhile towards the end of the last year, the 99-years old Charlie Munger passed. He made a fantastic pair with Warren Buffett, at Berkshire Hathaway, but also, he was the more colourful of the two, when it came to his quotable quotes, his humour, his candid and quick responses, and he was very popular at these annual events. So, I felt bad that I could not make it while he was around and a part of these annual programs. I felt a stronger urgency to go now, as Buffett is also not getting any younger, at 93 years of age, and moreover, there are already very conscious moves happening in the Berkshire organization, where management and leadership are being transitioned to others, beyond Warren Buffett. Before Buffett completely transitions out of the company, and especially reduces his participation at the annual shareholders’ meetings, I reckoned that I needed to make a trip and fulfil my long pending wish. And which is how, I found myself headed to this event, often referred to as the Woodstock of Capitalism! ?

And I summarize my experience at the event, in this set of articles. This is the first part of the series.

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The Back Story

Over the years, as I went from dark black to grey hair (!!), I have experimented with many styles and modes of investing. Winning some, losing many, I did not find a true calling when it comes to a framework for investments. Till I got to the idea of value investing. Reading a few books, following some people who were into value investing, listening to many podcasts on the subject, somewhere I found a certain conviction in this approach. And as one follows the value investing trail, it inevitably leads you to Benjamin Graham and Warren Buffett. Which is how, I ended up consuming a fair bit of Buffett speak, and consequentially, Charlie Munger speak as well.

I know many other investors who have probably consumed all of the published materials by these two or who are far more disciplined than I am, on the value investing approach. But I am reasonably focused on this style, and which is how, I have been fascinated to this annual event in Omaha, when Buffett and Munger engage the shareholders in a day-long session of talks and Q&A.

As regards what Value Investing is, my simple understanding around this, is to be able to identify high quality businesses, trying to ascertain the business’s intrinsic value, and when you get an opportunity to purchase shares of the business below this intrinsic value (for whatever reasons – this is where it shows that the market – or Mr. Market as Benjamin Graham used to refer to it – is not perfect and is often swayed by different reasons, including some short term events or emotions etc.), pick up these shares and generally hold these for long, as the stock price will move towards and perhaps better than intrinsic value, in time, and which is that difference that you get in terms of your profit on the purchase.

There are other elements to this value investing idea, especially from where Buffett’s philosophy (and that of many other value investors’) comes, and which include:

·????? Thinking of this purchase of shares not just as an investment, but as becoming an “owner” of the business and having a long-term view on it,

·????? Which means, it is not just about making profits and exiting, but letting the compounding of growth benefit you, over many years,

·????? Which also puts the onus of the initial selection to purchase to be very critical; the identifying of such opportunities, evaluating them from all aspects, with an idea of potentially hold the shares “forever”. Which might lead you to make very few purchases, but those being significant in size and length of time.

I am still very much a work-in-progress when it comes to implementation of these principles of investment, but nonetheless, an exposure to the Berkshire Hathaway annual meeting would provide the right inspiration on this path, and which got me planning to attend the event.

Read part 2 of the series: Preparation to Attend

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