1
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And now one of the most respected
Investors in America

2
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is going to tell you
about their secrets.

3
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Warren Buffett.
It's the sound of money.

4
00:00:33,310 --> 00:00:36,813
Billionaire investor Warren Buffett,
The second richest man in America.

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It is estimated that it is worth
around 62 billion dollars

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and he does
The richest man in the world.

7
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You know Buffett isn't exactly
What you might expect.

8
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Even though it is
In the money business

9
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He doesn't even have
a calculator or a computer.

10
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He takes the long view
and has made billions

11
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many billions.

12
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Maybe you can beat the house

13
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But I don't think
You can beat Warren Buffett.

14
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Buffett filed his first tax return
at 13 years old.

15
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But he's not your average billionaire, Tom.

16
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No, he certainly doesn't, Matt.

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He's a $44 billion average Joe.

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Warren Buffett has an approach

19
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That doesn't make it very popular.
with his fellow billionaires.

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Warren Buffett, the boy from Nebraska

21
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who grew up to become
The Wizard of Omaha.

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What happened to him?
that allowed him

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become the richest man
in the world?

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How did he do it?

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Seventy years ago,
I was in high school,

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Almost a third of
How the country has been present.

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And when I was in high school

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I really only had
Two things on my mind

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girls and cars.

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And I wasn't doing
very good with the girls

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So we'll talk about cars.

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But let's imagine
that when we finish

33
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I'll let each of you
Choose the car of your choice.

34
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Sounds good, right?

35
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Choose, any color, whatever.

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It will be tied with a bow

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And tomorrow it will be at your house.

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and you say
"Well, what's the catch?"

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And the catch is

40
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which is the only car you are
I'm going to come into your life.

41
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Now what are you going to do?

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Knowing that that's the only car
are you ever going to have

43
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And do you love that car?

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You are going to take care of it
How can you not believe.

45
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Now what I would like to suggest...

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You are not going to get
Only one car in your life.

47
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But you're going to get a body
and a mind

48
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And that's all you're going to get.

49
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And that body and mind
it feels great now

50
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But it has to last a lifetime.

51
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On the way to the office
It's all a five-minute drive.

52
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I've been doing it for 54 years.

53
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One of the good things
about this five minute trip

54
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Is that it, on the way?
There is a McDonalds

55
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So I'll pick something up.

56
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Good morning, thank you
for choosing McDonalds.

57
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Go ahead and order
Whenever you're ready.

58
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I'll have a Sausage McMuffin
with egg and cheese.

59
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- Anything else?
- That's all, thank you.

60
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Yes, and I tell my wife
While I get ready in the morning

61
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I say $2.61, $2.95 or $3.17

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And she puts that amount
in a little cup of me here

63
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and that determines
Which of the three breakfasts do I get?

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- That will be $2.95.
- Okay, $2.95.

65
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- Here's the $2.
- How are you, sir?

66
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Hey, great.

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- You are in a candid camera.
- I see. Hello everyone!

68
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When I don't feel
so prosperous

69
00:04:03,688 --> 00:04:06,900
Could go with $2.61
What are two sausage patties?

70
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And then I put them together
And pour a Coca-Cola.

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00:04:12,822 --> 00:04:15,074
- Hello how are you?
- Here's your Sausage McMuffin, sir.

72
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$3.17 is
A bacon, egg and cheese biscuit.

73
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But the market is down this morning

74
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So I think I'll let the $3.17 pass
and go with the $2.95.

75
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I like numbers.

76
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It started before I can remember.

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It felt good
working with numbers.

78
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I was always playing
with numbers in one way or another.

79
00:04:48,441 --> 00:04:49,776
And it was fun to have

80
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a lot of boys
and have them betting

81
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What a marble
It would reach the drain first.

82
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I had a lot of energy when I was a child.
I was inquisitive

83
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and I was the youngest ever
in class because I would skip.

84
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I have always been competitive.

85
00:05:08,420 --> 00:05:10,422
I liked reading more than most children.

86
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I really liked reading a lot.

87
00:05:13,258 --> 00:05:16,303
My Aunt Edie gave me a copy
of the World Almanac.

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And that was heaven for me.

89
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And I can still tell you

90
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that the population of Omaha
It was 214,006 in 1930.

91
00:05:23,643 --> 00:05:25,437
some numbers
Just stay with you.

92
00:05:26,730 --> 00:05:29,441
And very early,
probably when I was 7 or so

93
00:05:29,524 --> 00:05:31,902
I took this book
outside Benson Library

94
00:05:31,985 --> 00:05:34,571
Called a thousand ways
To win $1000.

95
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And one of the ways in this book
was having penny weighing machines.

96
00:05:43,789 --> 00:05:46,833
And I sat and calculated
how much would it cost

97
00:05:46,917 --> 00:05:49,211
to buy the first weighing machine
and then how long would it take

98
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for the profits of that
to buy another one.

99
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I would sit there and create
these compound interest tables

100
00:05:54,424 --> 00:05:55,676
to find out how long
it would take me to have

101
00:05:55,759 --> 00:05:57,719
a weighing machine
for every person in the world.

102
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I had everyone in the country
Weighing

103
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ten times a day
and I'm just sitting there

104
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Like John D. Rockefeller
of weighing machines.

105
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The assignment when it was
A small child was a nickel a week.

106
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But I liked the idea of having
a little more than a nickel a week

107
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to work with
And I got into the business very early.

108
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I started selling Coca-Cola
door to door.

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He sold the front door door to door.

110
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I sold on Saturday night

111
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Liberty Magazine,
Ladies Home Journal, whatever.

112
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I think I enjoyed the game
Almost right from the beginning.

113
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But I like to be my own boss.

114
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That's something I liked
about the delivery of papers.

115
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I could organize the route I wanted.

116
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Nobody was bothering me
at 5 or 6 in the morning.

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I was delivering 500 papers a day,
and I made a penny a piece of paper.

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But, in terms of compound

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That penny has turned
in something else.

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Einstein is famous for having said
That compound interest

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It is the eighth wonder of the world
or something like that

122
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and it goes back to that story
You probably learned

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When you were in elementary school
where someone did something

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for the king and the king said that
"What can I do for you?"

125
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and he said
"Well, let's take a chess board

126
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and put a kernel of wheat
in the first place

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And then duplicate it in the second
and double it in the third."

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And the king accepted it easily

129
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And by the time he discovered
What two at 64 amounted to

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I was giving away
the whole kingdom.

131
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So it's a pretty simple concept.

132
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But, over time, he manages
extraordinary things.

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Berkshire is an amazing company

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Fourth largest company
in fortune 500.

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He is the only person
Who made it, from scratch?

136
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built a company that is
In the top 10 of Fortune 500.

137
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Berkshire Hathaway. Fine, thanks.

138
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Well, Berkshire is
a holding company.

139
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It has a large number
of separate businesses

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that operate
independently of each other

141
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and, to a large extent,
from the parent company

142
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Berkshire Hathaway.

143
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What colors do they have?

144
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My favorite green and gold.
It's so strong.

145
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Alright, well, let's get
More of you in a second...

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We are maybe 70,
Maybe 80 businesses.

147
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And we ask them to behave in a way

148
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That doesn't hurt our reputation.
at Berkshire Hathaway.

149
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But they run their own lives.

150
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Other people do most
decoration in the office

151
00:08:49,684 --> 00:08:51,311
So several things come into play.

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Originally,
When I moved in 1962...

153
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You can see this.

154
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I fell
to the south omaha library

155
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And I think for a dollar

156
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I have seven copies
from the old New York Times

157
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of the great times
Like the panic of 1907.

158
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This is one, 1929 obviously.

159
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But I wanted to put myself on the walls
Days of extreme panic on Wall Street

160
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just as a reminder that anything
can happen in this world.

161
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I mean it's instructional art,
you can call him.

162
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I was born in 1930
Here in Omaha, Nebraska

163
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During the stock market crash.

164
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My dad lost his job in 1931,
a year after I was born.

165
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He was a stock salesman

166
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and he had the few savings
He had in the bank

167
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And so he started his own company.

168
00:09:56,251 --> 00:09:57,878
He worked
through depression.

169
00:10:02,674 --> 00:10:05,344
He had an investment company and...

170
00:10:05,427 --> 00:10:07,054
As an adult,
When I looked back I thought

171
00:10:07,137 --> 00:10:09,681
“Wow, did that ever take?
A lot of nerve."

172
00:10:11,100 --> 00:10:12,810
Sometimes we went there
on sunday

173
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and we could play
with the added machine.

174
00:10:16,647 --> 00:10:19,817
My brother and I tended
to play games together.

175
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And I remember, at one point

176
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He told me
"I'm going to be a millionaire

177
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by the time I'm 30"
or something like that.

178
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I was totally out of anything
my family had experienced

179
00:10:30,869 --> 00:10:33,122
But he was unusual that way.

180
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Well I was the oldest

181
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and then my brother
And then my sister.

182
00:10:40,754 --> 00:10:43,591
And my father would go
to New York periodically

183
00:10:43,674 --> 00:10:46,218
To verify companies and stocks
And things like that.

184
00:10:46,302 --> 00:10:49,346
When I came back, I always had
a costume for each of us

185
00:10:49,513 --> 00:10:50,848
And Warren loved it.

186
00:10:51,891 --> 00:10:54,643
He was very affable.
He was quiet.

187
00:10:55,060 --> 00:10:57,313
It was hard to say
He was a genius at that time.

188
00:10:57,396 --> 00:10:59,648
But, I mean, who was watching?

189
00:11:04,195 --> 00:11:08,199
The first books I read about investing
They were actually in my dad's office.

190
00:11:10,284 --> 00:11:12,119
Very soon
I read all the books in the office

191
00:11:12,203 --> 00:11:14,372
And read some of them more than once.

192
00:11:16,332 --> 00:11:18,292
My dad had several nicknames for me.

193
00:11:18,376 --> 00:11:22,129
I would call myself "fireball" sometimes,
Because I would start small businesses.

194
00:11:22,838 --> 00:11:24,423
He didn't care about money at all.

195
00:11:25,216 --> 00:11:28,010
He believed a lot
in having an internal control panel

196
00:11:28,094 --> 00:11:29,845
and never worry
about what other people

197
00:11:30,179 --> 00:11:33,057
they are thinking about you
you know, just...

198
00:11:33,599 --> 00:11:35,476
If you know why you are doing
What you are doing

199
00:11:35,560 --> 00:11:36,894
That's good enough.

200
00:11:37,520 --> 00:11:39,856
I admired everything about him
to the extent

201
00:11:39,939 --> 00:11:42,859
I was absorbing lessons
of him without knowing it.

202
00:11:43,192 --> 00:11:46,195
and the idea
that all lives have the same value

203
00:11:46,279 --> 00:11:48,614
it's something
that his three children felt

204
00:11:48,698 --> 00:11:50,032
As I can remember.

205
00:11:53,286 --> 00:11:55,329
My dad, at one point,
ran for Congress

206
00:11:55,413 --> 00:11:57,165
When I was 12 years old or so.

207
00:11:58,207 --> 00:12:00,209
It was a very republican home.

208
00:12:00,626 --> 00:12:03,087
And I campaigned for him.
My sisters campaigned for him.

209
00:12:03,171 --> 00:12:04,589
The whole family did it.

210
00:12:08,259 --> 00:12:12,263
My mother was very, very bright,
And she was very gregarious.

211
00:12:12,347 --> 00:12:14,349
She was a good activist for my dad.

212
00:12:15,725 --> 00:12:18,770
She had a lot of ambition.

213
00:12:18,853 --> 00:12:21,105
And I think my brother Warren had

214
00:12:21,189 --> 00:12:26,820
Much of its extreme competitiveness
from my mother actually.

215
00:12:27,779 --> 00:12:29,697
She was brilliant at mathematics.

216
00:12:29,906 --> 00:12:31,533
You know, I guess
They still had these things

217
00:12:31,616 --> 00:12:33,535
where the crumbs
And things added up.

218
00:12:33,618 --> 00:12:36,704
And she could add it in her head
Faster than the machine could do it.

219
00:12:36,788 --> 00:12:39,124
She was absolutely amazing at it.

220
00:12:40,750 --> 00:12:43,044
She was very obedient
about taking care of children.

221
00:12:43,128 --> 00:12:45,880
But you didn't understand
the same feeling of love.

222
00:12:45,964 --> 00:12:47,090
It was there, but alone...

223
00:12:47,173 --> 00:12:49,426
It didn't turn out the same way
Like with my dad.

224
00:12:51,469 --> 00:12:55,390
In the nation,
the only permanent way to prosperity

225
00:12:55,473 --> 00:12:57,309
It is a balanced budget.

226
00:12:57,559 --> 00:12:59,769
Unless that goal is achieved

227
00:12:59,853 --> 00:13:04,274
All post-war plans will collapse
Like Hitler's conquest.

228
00:13:04,357 --> 00:13:06,943
Have you heard
Congressman Howard L.H. Buffett

229
00:13:07,027 --> 00:13:08,945
Republican member
of the House of Representatives

230
00:13:09,029 --> 00:13:10,322
from Nebraska speaking at the...

231
00:13:10,405 --> 00:13:14,117
When I was about 12 or 13 years old,
We moved to Washington, my family

232
00:13:14,201 --> 00:13:17,245
and he was angry.
I was having fun in Omaha.

233
00:13:17,329 --> 00:13:20,332
And I lost all my friends
And now I moved to a city

234
00:13:20,415 --> 00:13:22,959
where everyone was strangers and...

235
00:13:23,043 --> 00:13:24,795
So I was very, very unhappy.

236
00:13:28,632 --> 00:13:31,343
At school, I just lost interest.

237
00:13:32,469 --> 00:13:34,971
I was pleased
by tormenting my teachers.

238
00:13:37,974 --> 00:13:41,311
At that time, for example,
Atandt was the stock

239
00:13:41,395 --> 00:13:43,188
that all teachers had
for his retirement.

240
00:13:43,981 --> 00:13:46,692
and I decided
that would lead my teachers

241
00:13:46,775 --> 00:13:48,485
a little crazy
If I ran out of stock.

242
00:13:48,568 --> 00:13:52,030
Because when you fall short,
You're betting it will fall.

243
00:13:52,698 --> 00:13:54,741
So he cut ten shares of Atandt

244
00:13:54,825 --> 00:13:56,743
and then brought
confirmation to school

245
00:13:56,827 --> 00:13:58,996
and showed these teachers
I was cutting stock.

246
00:14:00,163 --> 00:14:01,665
They found a great pain in my neck

247
00:14:01,748 --> 00:14:03,917
but they thought
He knew a lot about stocks.

248
00:14:08,005 --> 00:14:09,339
And then at home

249
00:14:09,423 --> 00:14:12,050
My mother would have
Big headaches.

250
00:14:12,760 --> 00:14:14,928
And you didn't want to be near her
When she had the headaches.

251
00:14:15,012 --> 00:14:16,889
And she lashed out more.

252
00:14:16,972 --> 00:14:18,307
She would never do it in public.

253
00:14:19,933 --> 00:14:21,894
well i think
We were terrified of her.

254
00:14:23,312 --> 00:14:26,106
When I woke up in the morning
I would listen to hear his voice.

255
00:14:26,231 --> 00:14:28,817
I realized, by his voice, it was
It's going to be a terrible day or not.

256
00:14:30,361 --> 00:14:33,197
When she became difficult,
The three children felt it.

257
00:14:35,783 --> 00:14:39,912
When I was at a low point,
I decided I would run away.

258
00:14:41,622 --> 00:14:44,375
Then I talked to two other guys
to run away with me.

259
00:14:46,126 --> 00:14:48,212
So we went out
And we started hitchhiking.

260
00:14:49,463 --> 00:14:51,298
And then they picked us up
by highway patrol

261
00:14:51,382 --> 00:14:53,634
And that scared us.

262
00:14:56,971 --> 00:14:58,013
It's very interesting.

263
00:14:58,097 --> 00:15:00,391
My dad never gave me hell
about doing this.

264
00:15:00,474 --> 00:15:02,059
But finally he said, you know...

265
00:15:02,351 --> 00:15:05,104
He said,
"You can do better than this."

266
00:15:05,187 --> 00:15:07,398
And I'm just saying that

267
00:15:07,481 --> 00:15:10,401
I mean I felt like it was
Say it, basically.

268
00:15:10,484 --> 00:15:13,571
So, in every way, he was teaching me.

269
00:15:13,654 --> 00:15:17,283
It was never taught by telling me things.
He just taught by example.

270
00:15:17,908 --> 00:15:19,702
He had unlimited confidence in me

271
00:15:19,785 --> 00:15:24,290
Even when I was ruined
And that takes you a long, long way.

272
00:15:27,752 --> 00:15:29,629
The best gift they gave me

273
00:15:29,712 --> 00:15:32,173
was to have the father
that I had when I was born.

274
00:15:38,095 --> 00:15:39,138
I didn't want to go to university.

275
00:15:39,222 --> 00:15:41,933
I was 16
When I left high school

276
00:15:42,141 --> 00:15:43,976
And I was buying shares.

277
00:15:44,060 --> 00:15:46,395
I mean, I was actually having
a very good moment and I didn't see

278
00:15:46,479 --> 00:15:48,856
That really was a lot to gain.
going to university.

279
00:15:48,940 --> 00:15:51,025
but my dad
Sort of disgraced in it.

280
00:15:53,111 --> 00:15:54,987
I had a roommate
who was a friend of mine

281
00:15:55,071 --> 00:15:57,407
And the roommate said
It would just drive him crazy.

282
00:15:57,490 --> 00:15:59,200
Because he studied all the time.

283
00:15:59,283 --> 00:16:02,412
When Warren came in
About 15 minutes before the exam

284
00:16:02,495 --> 00:16:04,455
And just ace through it.

285
00:16:06,207 --> 00:16:08,584
I finished in three years,
Because I had enough credits.

286
00:16:08,668 --> 00:16:11,212
And he was in a hurry.
I wanted to go out.

287
00:16:15,216 --> 00:16:17,051
when I left
from the University of Nebraska

288
00:16:17,135 --> 00:16:20,013
I applied to Harvard Business School.

289
00:16:20,138 --> 00:16:21,973
They told me I had to be interviewed

290
00:16:22,056 --> 00:16:23,725
in a place near Chicago.

291
00:16:23,892 --> 00:16:27,729
I got there and he interviewed me
For about 10 minutes

292
00:16:28,021 --> 00:16:31,733
And he said, "Forget it,
You're not going to Harvard."

293
00:16:31,816 --> 00:16:34,152
And now I'm thinking
"What do I tell my dad?"

294
00:16:34,235 --> 00:16:37,280
You know, "this is terrible."
And it turned out to be

295
00:16:37,363 --> 00:16:38,907
the best thing
That has happened to me.

296
00:16:39,282 --> 00:16:42,494
Later that summer,
I was looking through a catalog.

297
00:16:42,577 --> 00:16:43,787
And in the catalog

298
00:16:43,870 --> 00:16:46,456
I had these names of people
that they were teaching.

299
00:16:46,664 --> 00:16:49,042
And one was Graham
And another was Dodd.

300
00:16:49,417 --> 00:16:51,961
I had read this book
for both of them.

301
00:16:52,087 --> 00:16:54,047
So I wrote him a letter
in mid-august

302
00:16:54,130 --> 00:16:57,133
And I said, "Dear Professor Dodd."

303
00:16:57,342 --> 00:16:59,761
I said,
"I thought you guys were dead.

304
00:16:59,970 --> 00:17:02,681
But now that I found out
that you are alive

305
00:17:02,764 --> 00:17:05,392
and teaching at Columbia,
I would really like to come."

306
00:17:05,475 --> 00:17:08,061
And he admitted me. So you know what?

307
00:17:08,478 --> 00:17:10,981
That just shows
You can never tell.

308
00:17:17,362 --> 00:17:19,197
Gentlemen, Professor Graham.

309
00:17:19,656 --> 00:17:21,116
Ben was this amazing teacher.

310
00:17:21,199 --> 00:17:24,703
I mean it was natural
And it attracted us all.

311
00:17:24,786 --> 00:17:27,247
They are Wall Street professionals
more precise

312
00:17:27,330 --> 00:17:31,042
in the shortest term
What is the long-term forecast?

313
00:17:31,126 --> 00:17:32,919
Well, our studies indicate

314
00:17:33,003 --> 00:17:35,589
you have your choice
between throwing coins

315
00:17:36,256 --> 00:17:39,176
And taking the consensus
of expert opinions.

316
00:17:39,342 --> 00:17:42,804
And the results are
almost the same in each case.

317
00:17:43,889 --> 00:17:46,975
It was like learning baseball
from a teammate whose batting .400.

318
00:17:47,684 --> 00:17:50,312
It really is...
It shaped my professional life.

319
00:17:53,065 --> 00:17:56,109
There are two investment rules
According to Warren

320
00:17:56,193 --> 00:17:58,904
And he learned this from Ben Graham.

321
00:18:02,407 --> 00:18:05,452
Rule number one, never lose money.

322
00:18:05,661 --> 00:18:09,122
Rule number two,
Never forget rule number one.

323
00:18:11,375 --> 00:18:15,254
Ben Graham basically coined
the term investment value.

324
00:18:15,337 --> 00:18:20,717
He believed in careful scrutiny
of the financial statements of a company

325
00:18:20,801 --> 00:18:25,180
and if he bought value,
It would eventually be tested.

326
00:18:28,142 --> 00:18:30,686
A few years ago, I went to Amazon

327
00:18:31,145 --> 00:18:33,397
And indeed,
They had this manual there, so...

328
00:18:34,148 --> 00:18:35,190
While I relive my youth

329
00:18:35,274 --> 00:18:37,359
Other boys went
to Amazon probably

330
00:18:37,443 --> 00:18:40,237
and buy old playboys or something.

331
00:18:40,321 --> 00:18:42,489
but I bought
Old Moody's Manuals instead.

332
00:18:42,573 --> 00:18:46,201
And when I left school
I started selling shares.

333
00:18:46,285 --> 00:18:47,870
I was 20 years old at the time.

334
00:18:47,953 --> 00:18:50,456
and looked about 16
and performed around 12.

335
00:18:50,539 --> 00:18:52,541
So I wasn't
the most awesome seller

336
00:18:52,625 --> 00:18:53,959
Someone met.

337
00:18:54,501 --> 00:18:57,671
But what I would do was was
I went through page by page

338
00:18:58,005 --> 00:19:00,925
Searching possibly
Undervalued stocks.

339
00:19:02,718 --> 00:19:05,179
Is this how to go
through an old family album?

340
00:19:05,262 --> 00:19:06,597
Better.

341
00:19:11,018 --> 00:19:13,354
When I left business school
in Columbia

342
00:19:14,105 --> 00:19:17,233
He had developed some pretty decent skills.
In business terms

343
00:19:17,525 --> 00:19:20,820
But I really hadn't come to an agreement
with the world exactly.

344
00:19:22,571 --> 00:19:24,699
How were you
Around girls back then?

345
00:19:24,782 --> 00:19:26,492
Bad. It was...

346
00:19:26,575 --> 00:19:28,995
I was a little off the swing
of things there for a while.

347
00:19:30,329 --> 00:19:33,666
I went to my 60th reunion.
There was a girl there.

348
00:19:34,208 --> 00:19:36,961
I took it out once
to the Uptown theater

349
00:19:37,044 --> 00:19:39,672
in Washington and I asked
If she remembered

350
00:19:39,755 --> 00:19:42,300
What movie did we watch, and did she say?
"No, I don't remember that."

351
00:19:42,383 --> 00:19:44,594
And then she said
"But I remember one thing."

352
00:19:45,052 --> 00:19:47,221
and like an idiot
I said, "What was that?"

353
00:19:47,305 --> 00:19:49,432
And she said, "Well,
You picked me up in a hearse."

354
00:19:49,557 --> 00:19:51,517
And it was true
that I had a middle interval

355
00:19:51,601 --> 00:19:53,769
in a hearse
While I was in high school

356
00:19:53,853 --> 00:19:55,354
what was
It's not the softest thing...

357
00:19:55,438 --> 00:19:59,609
Or cooler, as they would say now,
What you could do on a date.

358
00:20:03,196 --> 00:20:05,281
There were two turning points
in my life

359
00:20:05,948 --> 00:20:09,369
Once when I came out of the womb
And one time when I met Susie basically.

360
00:20:13,164 --> 00:20:15,041
She was the girl, yes.

361
00:20:16,626 --> 00:20:19,337
But it took a little longer
to find out what the boy was.

362
00:20:23,007 --> 00:20:26,511
I was going to be
her little sister's roommate

363
00:20:26,594 --> 00:20:28,096
at Northwestern.

364
00:20:28,179 --> 00:20:31,891
Then I enter his house,
And he was sitting in this chair

365
00:20:31,975 --> 00:20:35,436
and made a sarcastic reindeer.

366
00:20:35,979 --> 00:20:39,357
So I made one back.
I thought, "Who is this idiot?"

367
00:20:40,483 --> 00:20:42,569
And that's how we met, yeah.

368
00:20:45,363 --> 00:20:48,283
Listen, Warren is smarter
than you even know.

369
00:20:48,616 --> 00:20:51,369
Your brain goes all the time.

370
00:20:51,578 --> 00:20:54,122
And my dad told me

371
00:20:54,330 --> 00:20:56,458
"Now you have
to understand about it

372
00:20:56,541 --> 00:20:58,501
you are not going to have
discussions with him

373
00:20:58,585 --> 00:21:00,628
Like you would with most normal people.

374
00:21:00,795 --> 00:21:03,089
But he has a heart of gold."

375
00:21:05,091 --> 00:21:08,720
I was totally in love with her,
And why not? And she of him.

376
00:21:09,930 --> 00:21:13,558
She would sit on his lap all the time,
And he would stroke her hair.

377
00:21:14,309 --> 00:21:15,894
I was softening it.

378
00:21:17,229 --> 00:21:19,940
Susie was really kind, considerate

379
00:21:20,023 --> 00:21:22,734
And she was the balancing force.

380
00:21:25,946 --> 00:21:28,114
I just got very, very, very lucky.

381
00:21:28,740 --> 00:21:31,576
But I was an unpleasant person,
And it took a while.

382
00:21:31,660 --> 00:21:35,956
But she stayed there
with a little watering you can

383
00:21:36,039 --> 00:21:40,127
and I just fed myself
and it changed me.

384
00:21:42,879 --> 00:21:46,049
someone once said
that the chains of habit

385
00:21:46,258 --> 00:21:47,384
They are too light to be felt

386
00:21:47,467 --> 00:21:49,428
Until they are too heavy to break.

387
00:21:51,138 --> 00:21:53,849
I had been terrified
of speaking in public.

388
00:21:54,641 --> 00:21:56,184
I couldn't do it, I would throw up.

389
00:21:57,603 --> 00:22:00,731
And I knew if I didn't cure him then,
I would never cure him.

390
00:22:02,441 --> 00:22:04,651
And then I saw an ad on the paper

391
00:22:04,735 --> 00:22:08,071
For Dale Carnegie's course,
that worked in the development

392
00:22:08,155 --> 00:22:11,700
Your ability to speak in public
And I went there.

393
00:22:11,909 --> 00:22:13,535
Be sincere.

394
00:22:13,911 --> 00:22:16,914
A good smile has the same effect
like a puppy's tail.

395
00:22:17,873 --> 00:22:19,166
They made us do
All these crazy things

396
00:22:19,249 --> 00:22:20,292
to get out of ourselves.

397
00:22:20,375 --> 00:22:23,420
And then we stand at the tables
and did all kinds of things.

398
00:22:28,509 --> 00:22:30,344
If I hadn't done that

399
00:22:30,677 --> 00:22:32,304
all my life
It would have been different.

400
00:22:34,014 --> 00:22:36,266
So in my office, you won't see

401
00:22:36,350 --> 00:22:38,686
the degree I got
from the University of Nebraska.

402
00:22:38,769 --> 00:22:41,939
You won't see the master
I got it from Columbia University.

403
00:22:42,022 --> 00:22:44,274
but you will see
the small award certificate

404
00:22:44,358 --> 00:22:46,735
I got it from Dale Carnegie's course.

405
00:22:48,237 --> 00:22:50,489
In fact, every week

406
00:22:50,698 --> 00:22:54,660
the instructor would give a pencil
to whoever has done more

407
00:22:54,743 --> 00:22:56,996
with what we learned the previous week.

408
00:22:57,413 --> 00:22:59,582
And so on in the fourth or fifth week

409
00:22:59,957 --> 00:23:03,836
I proposed to his mother
And she said yes.

410
00:23:04,211 --> 00:23:08,591
And that week, I won the pencil
And I also committed.

411
00:23:08,674 --> 00:23:10,593
I mean, it was an amazing week.

412
00:23:16,474 --> 00:23:17,683
The wedding day
It was kind of interesting.

413
00:23:17,767 --> 00:23:19,351
Because I couldn't see anything
without my glasses

414
00:23:19,435 --> 00:23:23,356
and I was so nervous that I just
I decided to take off my glasses

415
00:23:23,439 --> 00:23:25,858
And I couldn't see
All those people out there.

416
00:23:33,032 --> 00:23:35,785
I was 19 when we got married.
And I was 21 years old.

417
00:23:37,411 --> 00:23:39,747
but she was
Much more mature than me.

418
00:23:39,830 --> 00:23:41,165
There is no comparison.

419
00:23:46,337 --> 00:23:48,089
She was a better person than me.

420
00:23:49,340 --> 00:23:51,384
But when you get married
It's not a question of saying

421
00:23:51,467 --> 00:23:53,928
I'm going to put
a 14 percent factor in mood

422
00:23:54,011 --> 00:23:57,390
and 17 percent for intellect
and 22 percent for looks.

423
00:23:57,473 --> 00:23:58,891
It doesn't work that way.

424
00:24:00,226 --> 00:24:03,271
I knew it was the right decision,
And it was.

425
00:24:12,655 --> 00:24:14,449
You could live anywhere in the world

426
00:24:14,532 --> 00:24:17,201
- Why do you choose Omaha, Nebraska?
- Yes, I love it and I...

427
00:24:17,285 --> 00:24:20,121
You know, I was born
a mile from here

428
00:24:20,204 --> 00:24:23,958
And, you know, I've never had
A bad experience in Omaha.

429
00:24:36,596 --> 00:24:38,723
Omaha and Nebraska are home to me.

430
00:24:41,142 --> 00:24:42,894
Everything about it looks like home.

431
00:24:45,522 --> 00:24:48,691
It's the rhythm. They are relationships.

432
00:24:49,609 --> 00:24:52,445
There is a lot of continuity.
There is a lot of community.

433
00:24:52,529 --> 00:24:53,947
There is a lot of friendship.

434
00:24:54,197 --> 00:24:56,741
It is a very solid place
and friendly place

435
00:24:56,825 --> 00:24:59,828
in which to grow in
and to carry out a business.

436
00:25:04,332 --> 00:25:08,003
When I returned to Omaha
In early 1956

437
00:25:08,086 --> 00:25:10,130
I had no idea what I was going to do.

438
00:25:11,631 --> 00:25:14,551
But a few months after I returned
Some family members said

439
00:25:14,634 --> 00:25:16,011
"What should we do with our money?"
and I said

440
00:25:16,094 --> 00:25:18,680
"Well, I'm not going back
In the business of selling stocks

441
00:25:18,763 --> 00:25:20,724
But if you want to join me
in an association "

442
00:25:20,807 --> 00:25:21,892
I said, "I was glad I did it."

443
00:25:21,975 --> 00:25:24,436
So in a couple of months
after returning

444
00:25:24,519 --> 00:25:26,354
I established the first association.

445
00:25:33,153 --> 00:25:36,698
I wrote all the checks individually.
I filed 11 income tax returns.

446
00:25:36,781 --> 00:25:39,951
I took delivery in shares
For all these different companies.

447
00:25:40,035 --> 00:25:43,330
I was a one man band there
for six years.

448
00:25:47,042 --> 00:25:50,420
Warren would sit on top
in his small office there.

449
00:25:50,629 --> 00:25:52,130
And I would mention

450
00:25:52,214 --> 00:25:54,174
the name of a company
And, most of the time

451
00:25:54,257 --> 00:25:56,218
I knew much more
What I did about the company.

452
00:25:56,301 --> 00:25:58,387
He would know
How many shares were outstanding.

453
00:25:58,470 --> 00:26:01,014
I would know the capitalization.
I would know the profits.

454
00:26:01,098 --> 00:26:02,891
It was absolutely incredible.

455
00:26:04,268 --> 00:26:07,354
I mean, when Warren said something,
It meant a lot.

456
00:26:07,437 --> 00:26:10,107
And I think all of us
He paid a lot of attention to Warren

457
00:26:10,190 --> 00:26:13,360
When he took
A definitive position on something.

458
00:26:15,320 --> 00:26:19,241
When I first met Warren in 1959

459
00:26:19,324 --> 00:26:20,826
I recognized immediately

460
00:26:20,909 --> 00:26:24,413
that he was
a very intelligent person.

461
00:26:24,621 --> 00:26:26,081
During the last four or five years

462
00:26:26,165 --> 00:26:27,791
the stock market
has been booming

463
00:26:27,875 --> 00:26:30,461
and presumably forecasting
best business

464
00:26:30,544 --> 00:26:32,379
that has not really materialized.

465
00:26:32,463 --> 00:26:34,631
So maybe the stock market
It's really correction

466
00:26:34,715 --> 00:26:36,800
a previous incorrect forecast
this time

467
00:26:36,884 --> 00:26:38,510
instead of making a new one correct.

468
00:26:39,094 --> 00:26:43,390
He made a lot of money buying
fine quote values

469
00:26:43,474 --> 00:26:46,852
what were
Incredibly cheap statistically.

470
00:26:50,397 --> 00:26:53,442
Warren was, at that time,
deal with small businesses.

471
00:26:53,525 --> 00:26:57,238
And their investments were often
buy a company

472
00:26:57,321 --> 00:27:00,616
that you could figure
It was a discarded cigarette butt.

473
00:27:00,699 --> 00:27:02,952
But it had one more smoke.

474
00:27:03,202 --> 00:27:05,454
and he wanted to buy
at the right time

475
00:27:05,538 --> 00:27:08,332
be able to benefit
of the only smoke.

476
00:27:09,208 --> 00:27:12,753
The first association began
with $105,100.

477
00:27:12,837 --> 00:27:14,171
I put the 100,
and the other people

478
00:27:14,255 --> 00:27:15,881
Put in the 105,000.

479
00:27:15,965 --> 00:27:20,428
And then in early 1962,
I moved to Kiewit Plaza.

480
00:27:20,511 --> 00:27:22,972
And for the moment
I moved to Kiewit Plaza

481
00:27:23,055 --> 00:27:25,391
We had $7 million dollars invested

482
00:27:25,474 --> 00:27:27,643
And a fair amount was profit.

483
00:27:31,439 --> 00:27:35,109
Then I was renting a house,
I never had a house until that point.

484
00:27:36,110 --> 00:27:37,403
And then two years later

485
00:27:37,486 --> 00:27:40,615
I bought the house
I live today in 1958.

486
00:27:48,789 --> 00:27:51,000
We had three children, Susie and me.

487
00:27:54,879 --> 00:27:58,049
And we had them young, by the way,
Which I think is a very good thing.

488
00:28:03,513 --> 00:28:05,264
My daughter Susie was born here.

489
00:28:06,933 --> 00:28:09,102
I called her Susie like that
As soon as I looked at her

490
00:28:09,185 --> 00:28:10,603
Because she looked
Just like his mother.

491
00:28:14,941 --> 00:28:16,984
And she was a healthy one.

492
00:28:20,113 --> 00:28:24,575
And then Howie was, you know,
This absolute bundle of energy

493
00:28:25,910 --> 00:28:30,081
that made things very difficult
for Big Susie for a while.

494
00:28:33,334 --> 00:28:36,004
Peter again turned back
to Susie's personality

495
00:28:36,087 --> 00:28:38,047
And he was an easy child.

496
00:28:43,052 --> 00:28:44,971
Well, you know, I would describe
my childhood as normal

497
00:28:45,054 --> 00:28:46,723
But who knows what is normal.

498
00:28:47,432 --> 00:28:48,808
People often think

499
00:28:48,892 --> 00:28:51,394
You know, "Well, Warren Buffett
"He was this famous rich guy."

500
00:28:51,478 --> 00:28:53,980
He wasn't famous and he wasn't rich.
When we were growing up.

501
00:28:56,274 --> 00:29:02,363
What I saw first,
Day after day, it was consistency.

502
00:29:03,323 --> 00:29:06,368
Every day we heard the garage door
Close in the house

503
00:29:06,534 --> 00:29:09,913
And then, like clockwork,
My dad would walk in the door

504
00:29:09,996 --> 00:29:11,206
"I'm home!"

505
00:29:11,289 --> 00:29:13,291
And we all had dinner together

506
00:29:13,375 --> 00:29:15,543
which I think is surprising
many people

507
00:29:18,630 --> 00:29:21,049
My dad
I used to rock myself to sleep at night

508
00:29:21,132 --> 00:29:22,509
and sing "Over the Rainbow."

509
00:29:22,884 --> 00:29:27,013
So I have this incredibly sentimental
attachment to that song.

510
00:29:27,722 --> 00:29:30,016
I have always had a very close
relationship with him.

511
00:29:35,814 --> 00:29:37,566
I have three very different children

512
00:29:37,649 --> 00:29:41,069
And they have a common heart
which they got from their mother.

513
00:29:43,738 --> 00:29:46,741
She did most of the work, by far,
of raising children

514
00:29:46,825 --> 00:29:48,410
Which is probably a good thing.

515
00:29:48,785 --> 00:29:50,412
They have more of its qualities
than mine

516
00:29:50,495 --> 00:29:53,039
that I would recommend.

517
00:29:54,416 --> 00:29:57,794
Well my mom was the biggest part
of my life growing up.

518
00:29:58,503 --> 00:30:01,006
Although they disciplined me
on a regular basis

519
00:30:01,089 --> 00:30:02,549
and she was
Usually the one who does it

520
00:30:02,632 --> 00:30:04,176
She was still my best friend.

521
00:30:04,718 --> 00:30:06,970
she was someone
who would help someone

522
00:30:07,054 --> 00:30:08,597
I mean, if she knew them
or I didn't know them

523
00:30:08,680 --> 00:30:12,225
Or maybe he even didn't agree with them,
She would still help them.

524
00:30:13,727 --> 00:30:15,771
She was incredibly empathetic.

525
00:30:15,854 --> 00:30:19,316
And she was interested
in each person individually.

526
00:30:20,067 --> 00:30:23,195
She never cared
about money or business at all.

527
00:30:23,987 --> 00:30:25,531
I mean, he say saying

528
00:30:25,614 --> 00:30:29,117
"I will be
The richest man in the world."

529
00:30:29,576 --> 00:30:31,829
and I think that
Well it's like someone says

530
00:30:31,912 --> 00:30:34,581
"I play music,
And I'm going to be Mozart."

531
00:30:34,665 --> 00:30:38,335
I don't know.
How does anyone know...?

532
00:30:39,086 --> 00:30:41,380
How does anyone know, you know?

533
00:30:41,463 --> 00:30:45,759
So it was fine.
I really don't care.

534
00:30:47,136 --> 00:30:51,265
I would say Susie led Warren
towards changing their political views.

535
00:30:51,348 --> 00:30:53,058
He grew up a young Republican.

536
00:30:53,142 --> 00:30:56,186
His father was
A Republican congressman.

537
00:30:56,353 --> 00:30:59,356
But Susie saw things
in different ways.

538
00:30:59,440 --> 00:31:01,150
She was the catalyst.

539
00:31:01,233 --> 00:31:04,653
Freedom, freedom, freedom.

540
00:31:04,737 --> 00:31:06,780
- Stronger! Stronger!
- Freedom.

541
00:31:06,864 --> 00:31:08,782
- Stronger!
- Freedom.

542
00:31:08,866 --> 00:31:11,118
- What do we want now?
- Freedom.

543
00:31:11,202 --> 00:31:16,165
When the children were growing up,
He was very involved in civil rights.

544
00:31:16,332 --> 00:31:18,000
I was immersed in it.

545
00:31:18,083 --> 00:31:21,086
And I think that's what made Warren
a democrat.

546
00:31:21,212 --> 00:31:25,091
He would go with me to listen to the speakers.

547
00:31:26,133 --> 00:31:29,053
I remember that speech
that Martin Luther King gave.

548
00:31:29,136 --> 00:31:31,138
That was one
of the most inspiring speeches

549
00:31:31,222 --> 00:31:33,057
I have ever heard.

550
00:31:33,140 --> 00:31:34,850
I come to tell you this...

551
00:31:34,934 --> 00:31:36,477
It took me out of my seat.

552
00:31:36,560 --> 00:31:38,896
My wife was with me.
We both had the same experience.

553
00:31:38,979 --> 00:31:40,147
It won't be long...

554
00:31:40,231 --> 00:31:42,566
It was interesting, he...
In that speech, he spoke of

555
00:31:42,650 --> 00:31:45,277
"Truth forever on the scaffold

556
00:31:45,361 --> 00:31:50,074
forever wrong on the throne,
But that scaffolding balances the future."

557
00:31:50,574 --> 00:31:52,660
Well he was going to be dead
in six months

558
00:31:52,868 --> 00:31:55,079
But that scaffolding swayed
the future.

559
00:31:56,956 --> 00:31:58,749
My wife was more active than me

560
00:31:58,833 --> 00:32:00,877
But I was one hundred percent
with her mentally

561
00:32:00,960 --> 00:32:05,339
And I was just working.
A little more about my own investments.

562
00:32:06,424 --> 00:32:08,217
But it didn't make a difference what
what we were going to do with the money

563
00:32:08,301 --> 00:32:09,469
After we did it.

564
00:32:09,552 --> 00:32:11,554
I thought I would accumulate it
over the years

565
00:32:12,013 --> 00:32:13,389
So she goes unpunished

566
00:32:13,473 --> 00:32:17,643
In terms of running
a very large base.

567
00:32:17,894 --> 00:32:21,064
And I was particularly good
By aggravating the money

568
00:32:21,189 --> 00:32:24,359
and therefore
Society would benefit by waiting.

569
00:32:27,987 --> 00:32:31,449
I was genetically blessed
with a specific wiring

570
00:32:31,532 --> 00:32:34,285
That is very useful
in a highly developed market system

571
00:32:34,369 --> 00:32:35,954
Where there are many chips
on the table

572
00:32:36,037 --> 00:32:39,082
And, you know,
Turns out I'm good at that game.

573
00:32:41,376 --> 00:32:43,544
Ted Williams wrote a book
called the science of hitting

574
00:32:43,628 --> 00:32:46,297
And in it he had
a photo of himself at bat

575
00:32:46,381 --> 00:32:50,927
and the strike zone broken
in, I think, 77 squares.

576
00:32:51,302 --> 00:32:53,054
and he said
If I waited for the field

577
00:32:53,137 --> 00:32:56,015
That was really in its sweet spot,
he battery .400

578
00:32:56,099 --> 00:32:58,852
and if I had to balance something
in the bottom corner

579
00:32:58,935 --> 00:33:01,271
I'd probably hit .235.

580
00:33:01,646 --> 00:33:04,691
And in investment,
I'm in an unnamed strike business

581
00:33:04,774 --> 00:33:06,651
what is the best business
You can be inside.

582
00:33:06,985 --> 00:33:09,070
I can look
to thousands of different companies

583
00:33:09,154 --> 00:33:11,239
and I don't have to be right
in each of them

584
00:33:11,322 --> 00:33:12,907
or even 50 of them.

585
00:33:14,200 --> 00:33:16,327
Then I can choose the ball I want to hit.

586
00:33:18,121 --> 00:33:20,623
And the trick to investing
it's just to sit there

587
00:33:20,707 --> 00:33:22,876
And watch pitch after pitch go by

588
00:33:22,959 --> 00:33:24,836
and wait for the
Right in your sweet spot.

589
00:33:24,919 --> 00:33:27,672
And the people who scream
"Swing, you," he ignores them.

590
00:33:29,007 --> 00:33:30,425
There is a temptation

591
00:33:30,508 --> 00:33:33,720
For people to act
too often in actions

592
00:33:33,803 --> 00:33:35,430
Simply because they are so liquid.

593
00:33:36,389 --> 00:33:39,184
Over the years,
You develop a lot of filters.

594
00:33:39,392 --> 00:33:42,020
and I know it
what I call my circle of competence

595
00:33:42,103 --> 00:33:44,397
So I stay within that circle

596
00:33:44,481 --> 00:33:48,235
and I don't worry about things
who are outside that circle.

597
00:33:48,610 --> 00:33:50,320
Defining what your game is

598
00:33:50,403 --> 00:33:54,157
where you will have an advantage
It is enormously important.

599
00:34:02,040 --> 00:34:04,918
I bought the first shares
of Berkshire in 1962

600
00:34:05,001 --> 00:34:07,254
and it was
a northern textile business

601
00:34:07,337 --> 00:34:10,841
destined to become extinct
Finally, and it was

602
00:34:10,924 --> 00:34:13,969
a statistically cheap stock
in a terrible business.

603
00:34:15,345 --> 00:34:17,848
Berkshire Hathaway
was closing mills

604
00:34:17,931 --> 00:34:21,435
and, while the factories closed,
would free up some capital

605
00:34:21,685 --> 00:34:23,770
and then
They would buy back the shares.

606
00:34:23,854 --> 00:34:25,480
So I bought some stock with the idea

607
00:34:25,564 --> 00:34:28,233
that there would be
Another tender offer at some point

608
00:34:28,317 --> 00:34:31,153
and we would sell the stock
with a modest profit.

609
00:34:31,778 --> 00:34:34,907
And in a moment,
The management asked me

610
00:34:34,990 --> 00:34:36,742
At what price
We would present our stock.

611
00:34:36,825 --> 00:34:39,161
And I said $11 and 50 cents.

612
00:34:41,663 --> 00:34:44,708
And the tender offer came out
a few months later

613
00:34:45,167 --> 00:34:49,004
And it was $11 and three eight

614
00:34:49,088 --> 00:34:50,881
what was
An eighth of a point cheaper.

615
00:34:51,924 --> 00:34:55,511
And that made me very angry
So I started buying more shares.

616
00:34:56,512 --> 00:34:59,139
I just felt
that had been double crossed

617
00:34:59,223 --> 00:35:02,726
by management,
and, in May 1965

618
00:35:02,810 --> 00:35:05,104
I bought enough
So we control the company

619
00:35:05,479 --> 00:35:07,064
And we changed management.

620
00:35:13,779 --> 00:35:15,614
That was a pretty stupid way.
to behave

621
00:35:15,698 --> 00:35:18,784
As Warren has told
in retrospect.

622
00:35:19,869 --> 00:35:21,537
One of the reasons
Warren's success

623
00:35:21,620 --> 00:35:24,415
Is it brutal in the evaluation?
his own past.

624
00:35:24,498 --> 00:35:28,919
Want to identify moody thoughts
and avoid them in the future

625
00:35:29,545 --> 00:35:32,298
But it was an accident
who chose Berkshire Hathaway.

626
00:35:32,465 --> 00:35:35,259
If the president had not tried
to deceive him of an eighth

627
00:35:35,426 --> 00:35:38,929
there wouldn't have been any
Buffett-Berkshire Hathaway History.

628
00:35:42,099 --> 00:35:43,517
If you are emotional
about investment

629
00:35:43,601 --> 00:35:44,935
You're not going to do it right.

630
00:35:45,353 --> 00:35:47,104
You can have all these feelings
about stock

631
00:35:47,188 --> 00:35:49,148
Stock has no feelings
about you.

632
00:35:50,191 --> 00:35:51,901
Looking back, it's interesting,
That tender offer

633
00:35:51,984 --> 00:35:54,111
I didn't realize it but it happened

634
00:35:54,195 --> 00:35:56,572
about five days
After my dad had died

635
00:35:56,656 --> 00:35:59,575
And if that had
It affected me or not, I don't know.

636
00:36:03,788 --> 00:36:06,832
Do you remember your last
conversation with your father?

637
00:36:06,958 --> 00:36:09,252
Yes, but I don't want to
to talk about it.

638
00:36:16,509 --> 00:36:19,470
I think just the sober thing
and hurt him.

639
00:36:20,346 --> 00:36:21,681
But...

640
00:36:24,058 --> 00:36:25,643
Warren soldiers.

641
00:36:29,021 --> 00:36:32,108
Both Warren and I
I could look at our parents

642
00:36:32,191 --> 00:36:34,360
and look what they did right
And what they did wrong.

643
00:36:35,194 --> 00:36:36,821
Warren's father was

644
00:36:36,904 --> 00:36:39,991
a real old fashioned
Right wing ideologue.

645
00:36:41,117 --> 00:36:43,202
and his father
He was so intense about it.

646
00:36:43,578 --> 00:36:46,831
that Warren just decided
that was a mistake.

647
00:36:46,915 --> 00:36:50,043
It hung your head
be such an ideologue.

648
00:36:50,126 --> 00:36:52,962
So he loved his father
But he didn't want to become

649
00:36:53,046 --> 00:36:56,466
than a true believer
in anything.

650
00:36:59,093 --> 00:37:04,307
My politics became more open
After my dad died.

651
00:37:06,017 --> 00:37:07,894
Civil rights changed my views.

652
00:37:08,645 --> 00:37:10,021
You know, in 1776

653
00:37:10,105 --> 00:37:11,940
Thomas Jefferson wrote
"All men are created equal"

654
00:37:12,023 --> 00:37:13,691
and then
When they wrote the Constitution

655
00:37:13,775 --> 00:37:15,735
They suddenly
decided not to

656
00:37:15,819 --> 00:37:17,779
They were only three-fifths of a person
If you were black.

657
00:37:17,862 --> 00:37:19,364
I mean it caught my attention
like a little crazy.

658
00:37:22,075 --> 00:37:25,704
I was talking to him one day
about some racial problem

659
00:37:25,954 --> 00:37:30,125
and he told me
"Wait until women discover

660
00:37:30,208 --> 00:37:32,669
They are the slaves of the world."

661
00:37:33,962 --> 00:37:37,799
Now how many men
Were they aware of that?

662
00:37:37,882 --> 00:37:39,593
And even women then?

663
00:37:41,970 --> 00:37:44,139
The initial example
It's really my mother.

664
00:37:44,306 --> 00:37:46,266
She came from a generation

665
00:37:46,349 --> 00:37:48,727
where the main function
of the wife was

666
00:37:48,810 --> 00:37:51,104
to help her husband at work

667
00:37:51,521 --> 00:37:55,692
and my sisters
They are completely as smart as me

668
00:37:55,776 --> 00:37:57,861
They have better personalities
of what I have

669
00:37:57,944 --> 00:38:00,322
But they got the message
a million different ways

670
00:38:00,405 --> 00:38:02,991
that his future was limited.

671
00:38:03,075 --> 00:38:06,203
and I received the message
that the sky is the limit and...

672
00:38:06,286 --> 00:38:09,456
It wasn't due to lack of love
or anything like that, just...

673
00:38:09,539 --> 00:38:10,874
It was the culture.

674
00:38:12,793 --> 00:38:14,419
On the other hand, you can look
on the other hand and say

675
00:38:14,503 --> 00:38:16,630
It's quite encouraging
Because if you look

676
00:38:16,713 --> 00:38:19,758
in what this country achieved
Only using half of his talent

677
00:38:19,841 --> 00:38:21,385
you know, just think
of the potential for the future.

678
00:38:21,468 --> 00:38:23,679
I am enormously optimistic in America
about the future

679
00:38:23,762 --> 00:38:27,683
and part of the reason is that we,
for some pretty stupid decisions

680
00:38:27,766 --> 00:38:30,519
essentially putting half of our talent
on the sidelines.

681
00:38:32,229 --> 00:38:33,272
Warren is probably

682
00:38:33,355 --> 00:38:35,858
the most rational person
I have known

683
00:38:35,941 --> 00:38:39,194
Charlie Munger would be
a close rival.

684
00:38:39,570 --> 00:38:44,533
And Charlie became a man
which Warren depended heavily on.

685
00:38:45,117 --> 00:38:47,786
And I think his first experiences

686
00:38:47,870 --> 00:38:51,457
In the era of the discarded cigarette butt
convinced him

687
00:38:51,540 --> 00:38:54,752
which wasn't exactly
where I wanted to be.

688
00:38:55,419 --> 00:38:57,546
Made so much money for so long

689
00:38:57,629 --> 00:38:59,840
doing what he was taught
by Ben Graham

690
00:38:59,923 --> 00:39:02,301
that he would buy these
very cheap shares.

691
00:39:02,384 --> 00:39:03,844
If they were cheap enough,
he didn't care

692
00:39:03,927 --> 00:39:05,929
If it were a lousy company
and terrible management.

693
00:39:06,013 --> 00:39:07,723
I knew I was going
To make money anyway

694
00:39:07,806 --> 00:39:09,558
Just because of the low cost.

695
00:39:10,643 --> 00:39:14,647
Charlie Munger has had
A big impact on me when moving

696
00:39:14,730 --> 00:39:18,192
towards looking wonderful
Companies at fair prices

697
00:39:18,275 --> 00:39:20,861
instead of fair companies
at wonderful prices.

698
00:39:21,111 --> 00:39:22,613
And that was enormously important.

699
00:39:22,696 --> 00:39:25,115
Because it enabled Berkshire
to climb in a way

700
00:39:25,199 --> 00:39:28,327
that would have been impossible
do the opposite.

701
00:39:29,954 --> 00:39:32,081
- Yeah?
- What are the key indicators?

702
00:39:32,164 --> 00:39:35,709
you search within companies
before making an investment?

703
00:39:36,085 --> 00:39:38,921
Well, I'm looking for something
That gives them a moat around them.

704
00:39:42,133 --> 00:39:44,677
We have a company called
See the sweets on the west coast

705
00:39:44,760 --> 00:39:46,887
See the chocolates in the candy box.

706
00:39:47,763 --> 00:39:50,307
If you give a box of chocolates from See

707
00:39:50,391 --> 00:39:54,228
to your girlfriend on the first date
and she kisses you

708
00:39:55,563 --> 00:39:56,605
We own you, you know?

709
00:39:56,689 --> 00:39:58,566
I mean, we can breed
The price tomorrow.

710
00:39:58,649 --> 00:40:00,067
I mean, you will buy the same box.

711
00:40:00,151 --> 00:40:01,652
You are not going to
fool for success.

712
00:40:01,736 --> 00:40:04,572
So the key there is the answer.

713
00:40:05,156 --> 00:40:07,575
You don't want to go home
on Valentine's Day

714
00:40:07,658 --> 00:40:10,077
and tell your wife
or your love...

715
00:40:10,536 --> 00:40:12,705
Preferably, they are the same person.

716
00:40:12,788 --> 00:40:15,249
You don't say
"Here, honey, I took the low offer."

717
00:40:15,333 --> 00:40:16,667
Not working.

718
00:40:16,792 --> 00:40:19,921
The price is...
To some extent, it is irrelevant.

719
00:40:20,004 --> 00:40:22,965
If you have a cheap castle,
people are going to come

720
00:40:23,049 --> 00:40:24,967
and I want to take that castle
away from you.

721
00:40:25,051 --> 00:40:26,552
And you better have a strong moat.

722
00:40:26,636 --> 00:40:29,430
You better have a knight in a castle
That knows what it's doing.

723
00:40:30,723 --> 00:40:33,559
You are not buying an asset.
You are buying a name.

724
00:40:33,643 --> 00:40:37,522
You are buying a brand.
You are buying a real franchise here.

725
00:40:38,272 --> 00:40:42,610
And Charlie was more responsible
for that anyone.

726
00:40:45,196 --> 00:40:48,491
We were mental partners
From the moment we met.

727
00:40:49,409 --> 00:40:51,160
I want to know, going back 50 years

728
00:40:51,244 --> 00:40:53,621
how was it
When did you first meet Warren?

729
00:40:53,705 --> 00:40:55,540
Well, I thought I was a prodigy.

730
00:40:56,541 --> 00:40:58,960
And I received a lot of criticism.
my wife said

731
00:40:59,043 --> 00:41:01,254
"What are you paying for?
Such enormous respect

732
00:41:01,337 --> 00:41:04,966
To that young man with a crew cut
Who won't eat vegetables? "

733
00:41:07,343 --> 00:41:09,053
He is impiously intelligent.

734
00:41:09,137 --> 00:41:11,598
He has
A much broader intellect than me.

735
00:41:12,098 --> 00:41:14,601
And it is magnificent to be able to

736
00:41:14,684 --> 00:41:18,688
to condense important ideas
in just a few words.

737
00:41:18,813 --> 00:41:23,109
If you are not interested
on the economic scene right now

738
00:41:23,610 --> 00:41:25,236
You are mentally dead.

739
00:41:25,320 --> 00:41:26,905
Charlie is tactless.

740
00:41:26,988 --> 00:41:29,032
Alright, let's talk
A little about bankers.

741
00:41:29,115 --> 00:41:32,160
Charlie, on Friday, compared them
to heroin addicts.

742
00:41:32,243 --> 00:41:35,830
Yeah, well, that's colorful Charlie,
But I wouldn't have chosen that.

743
00:41:36,247 --> 00:41:39,417
I once wrote about him
that when they surrendered humility

744
00:41:39,501 --> 00:41:41,378
He didn't get his fair share.

745
00:41:41,920 --> 00:41:45,882
The ideal way to run the headquarters
is to have a man

746
00:41:46,132 --> 00:41:50,095
preferably more than 80,
sitting in an office alone.

747
00:41:51,054 --> 00:41:53,431
Anything else is pure friptary.

748
00:41:54,307 --> 00:41:56,226
He is always honest
In what he tells me

749
00:41:56,309 --> 00:41:58,270
Then I listen to it.

750
00:42:00,230 --> 00:42:01,857
We never had an argument.

751
00:42:02,732 --> 00:42:04,067
Just us...

752
00:42:05,819 --> 00:42:07,863
We just rolled easily.

753
00:42:09,239 --> 00:42:13,493
Suppose Warren doesn't want to do
something I would have done.

754
00:42:13,869 --> 00:42:17,539
And suppose that happens four times
More than 40 years or something like that.

755
00:42:18,081 --> 00:42:19,875
What the hell difference
Does it make me?

756
00:42:21,293 --> 00:42:23,587
Reduce logging
Exercising is fine.

757
00:42:28,216 --> 00:42:29,509
we both know

758
00:42:29,593 --> 00:42:32,930
what we have done better
for having ethics.

759
00:42:33,305 --> 00:42:36,016
Warren is not interested
By making money by deceiving people.

760
00:42:39,186 --> 00:42:42,981
Warren Opinions
of Wall Street investment bankers

761
00:42:43,065 --> 00:42:46,485
I wouldn't do it
to their mothers.

762
00:42:46,860 --> 00:42:48,403
He feels that they are

763
00:42:48,487 --> 00:42:51,573
for the most part,
Not out for your clients.

764
00:42:51,657 --> 00:42:54,827
They are out
for their own commercial interests.

765
00:42:56,370 --> 00:42:59,164
In the late 1960s,
There was just a flood

766
00:42:59,248 --> 00:43:03,127
of accounting shenanigans
and mergers built

767
00:43:03,210 --> 00:43:06,547
about false accounting
and deceitful people.

768
00:43:06,630 --> 00:43:09,842
It was a moment
When many charlatans

769
00:43:09,925 --> 00:43:13,137
were prevailing on Wall Street,
They were applauded by Wall Street.

770
00:43:13,220 --> 00:43:15,389
and I understood
What was the game about?

771
00:43:15,472 --> 00:43:17,016
But I didn't want to play in it.

772
00:43:17,182 --> 00:43:21,061
So I closed the association
At the end of 1969

773
00:43:21,145 --> 00:43:24,648
and took the title of president
for Berkshire Hathaway.

774
00:43:27,943 --> 00:43:29,778
Well I guess modern Berkshire

775
00:43:29,862 --> 00:43:32,198
it's more or less
Quite a reflection of Warren.

776
00:43:34,742 --> 00:43:38,662
I have built
a business that suits me well.

777
00:43:39,872 --> 00:43:42,583
It's a little crazy
to spend your life painting

778
00:43:42,666 --> 00:43:44,835
If you are painting a theme
You don't want to look.

779
00:43:45,419 --> 00:43:48,047
I have come to paint
My own painting in business

780
00:43:48,130 --> 00:43:50,341
on a somewhat limitless canvas.

781
00:43:52,176 --> 00:43:54,136
It's a different place.

782
00:43:55,554 --> 00:43:58,683
I work with a large group of people
that makes my life very easy

783
00:43:58,766 --> 00:44:00,518
And that takes good care of me.

784
00:44:03,771 --> 00:44:06,565
We have 25 people in the office

785
00:44:06,649 --> 00:44:10,111
And if you come back
It's exactly the same 25

786
00:44:10,236 --> 00:44:11,862
exactly the same.

787
00:44:13,239 --> 00:44:15,283
We don't have any committees
in Berkshire.

788
00:44:15,575 --> 00:44:17,243
we don't have
a public relations department.

789
00:44:17,326 --> 00:44:19,745
We do not have relationships with investors.
We don't have general advice.

790
00:44:19,829 --> 00:44:21,622
we don't have
a human relations department.

791
00:44:21,706 --> 00:44:23,082
We just don't go for anything

792
00:44:23,166 --> 00:44:25,793
what people do
just as a matter of form.

793
00:44:27,003 --> 00:44:29,046
It's exactly the life I like.

794
00:44:29,547 --> 00:44:33,634
And it doesn't work for me.
It's just a form of gaming, basically.

795
00:44:43,102 --> 00:44:44,645
Oh, I like quiet things.

796
00:44:45,271 --> 00:44:46,856
I actually closed the door
in the office

797
00:44:46,939 --> 00:44:49,233
Because I don't want to listen
Anyone who talks outside.

798
00:44:49,317 --> 00:44:52,862
distinctively changed his views,
and the belt-tightening proposal...

799
00:44:52,946 --> 00:44:56,366
And I probably still spent
Five or six hours a day of reading.

800
00:44:56,449 --> 00:44:59,410
See what's trending today
Our quick summary of what you have...

801
00:44:59,494 --> 00:45:01,788
Well, what's amazing?
It's what he remembers.

802
00:45:03,456 --> 00:45:04,874
It's like a little computer,
you know?

803
00:45:04,958 --> 00:45:06,918
I keep thinking about the hard drive
will run out of space

804
00:45:07,001 --> 00:45:08,336
But it doesn't.

805
00:45:10,505 --> 00:45:12,257
He is one of the smartest people
we know it.

806
00:45:12,715 --> 00:45:14,259
So I was in a couple.
of family dinners

807
00:45:14,342 --> 00:45:16,803
in the house of doors
Where Mary, Bill's mother, was trying

808
00:45:16,886 --> 00:45:20,223
to convince him to come out
to the familiar place on Hood Canal

809
00:45:20,348 --> 00:45:22,350
to meet Warren Buffett,
And he was resisting

810
00:45:22,434 --> 00:45:24,144
Because I was very busy
with Microsoft.

811
00:45:24,227 --> 00:45:27,772
And finally he said
"Mom, it's okay, I'll come to lunch."

812
00:45:29,649 --> 00:45:32,694
So we both flew there
somewhat reluctantly

813
00:45:32,777 --> 00:45:34,612
Because, you know,
Buy and sell shares

814
00:45:34,696 --> 00:45:38,450
That's how I thought of Warren,
It wasn't of particular interest to me.

815
00:45:38,533 --> 00:45:40,618
And it didn't seem like added value.

816
00:45:40,702 --> 00:45:42,996
It turned out
That was completely wrong.

817
00:45:43,204 --> 00:45:46,374
We knew that day
that we would be very close friends.

818
00:45:46,625 --> 00:45:49,502
In fact, we just couldn't get enough
from each other.

819
00:45:50,837 --> 00:45:52,297
Shortly after meeting Bill Gates

820
00:45:52,380 --> 00:45:55,425
Bill's father asked each of us
to write on a piece of paper

821
00:45:55,508 --> 00:45:59,054
a word that would best describe
What had helped us the most.

822
00:45:59,137 --> 00:46:01,306
Bill and me,
without any collaboration at all

823
00:46:01,389 --> 00:46:02,933
They each wrote the word “focus.”

824
00:46:05,143 --> 00:46:09,815
Well the focus has always been
a strong part of my personality.

825
00:46:09,898 --> 00:46:12,317
If I'm interested in something
I'm very interested.

826
00:46:12,776 --> 00:46:13,985
If I am interested in a new topic

827
00:46:14,069 --> 00:46:15,779
I want to read about it
I want to talk about that

828
00:46:15,862 --> 00:46:19,032
and I want to meet people
who are involved in it.

829
00:46:20,283 --> 00:46:22,244
We both love to work hard.

830
00:46:22,327 --> 00:46:25,122
You know none of us like
frivolous things.

831
00:46:25,205 --> 00:46:27,416
You know he doesn't know much
about cooking or art

832
00:46:27,499 --> 00:46:30,669
or a wide variety of things.

833
00:46:31,420 --> 00:46:32,671
I can't tell you the color

834
00:46:32,754 --> 00:46:36,008
from the walls of my room
or my living room.

835
00:46:36,758 --> 00:46:39,720
I don't have a mind that relates
to the physical universe well.

836
00:46:39,803 --> 00:46:41,388
Warren, reviewing the Dow.

837
00:46:41,471 --> 00:46:45,642
But the business universe,
I think I understand reasonably well.

838
00:46:46,810 --> 00:46:50,439
Warren's ability to qualify
People and business

839
00:46:50,564 --> 00:46:52,566
It's quite magical.

840
00:46:52,941 --> 00:46:55,360
He is the best of
Anyone we know.

841
00:46:55,444 --> 00:46:59,364
We should all try to be
20 percent as good at that.

842
00:47:03,869 --> 00:47:07,206
I like to sit and think,
And I spend a lot of time doing that.

843
00:47:07,289 --> 00:47:09,625
And sometimes
It's pretty unproductive

844
00:47:09,708 --> 00:47:13,879
But I find it nice
Think about...

845
00:47:14,505 --> 00:47:16,882
particularly about business
or investment problems.

846
00:47:16,965 --> 00:47:19,843
They are easy. They are human problems
which are the difficult ones.

847
00:47:20,219 --> 00:47:22,012
Sometimes there is none
Good answers with human problems.

848
00:47:22,096 --> 00:47:24,723
There is almost always
a good answer with money.

849
00:47:38,153 --> 00:47:40,614
He was some kind of genius.

850
00:47:41,323 --> 00:47:47,997
I think sometimes geniuses are
By default, lonely and isolated.

851
00:47:51,333 --> 00:47:54,044
It wasn't very well adjusted.

852
00:47:54,962 --> 00:47:59,467
He was just so funny.
I mean, humorous guy

853
00:47:59,800 --> 00:48:04,347
who perhaps had a moat around him
because I was afraid

854
00:48:04,430 --> 00:48:08,768
And I didn't know anyone
that I wanted to let in.

855
00:48:11,312 --> 00:48:12,730
And to this day...

856
00:48:13,230 --> 00:48:15,691
I mean, I don't know...

857
00:48:16,859 --> 00:48:21,322
Well no one knows him like I do
And probably any wife would say that.

858
00:48:21,989 --> 00:48:23,324
But...

859
00:48:27,662 --> 00:48:29,372
He's a loner, in a sense.

860
00:48:30,414 --> 00:48:33,334
And it's hard to connect
on an emotional level

861
00:48:33,417 --> 00:48:38,297
Because, I think that's it
It is not its basic mode of operation.

862
00:48:40,007 --> 00:48:43,553
I was there physically.

863
00:48:44,262 --> 00:48:47,432
But he was reading
all the time.

864
00:48:49,892 --> 00:48:52,478
I always told my mother
We have to speak in sound bytes.

865
00:48:53,521 --> 00:48:54,647
I learned that from the beginning

866
00:48:54,731 --> 00:48:58,067
that if you start, you already know
entering something long

867
00:48:58,151 --> 00:48:59,736
Unless you've explained it to them
in advance

868
00:48:59,819 --> 00:49:02,989
it's going to be a long thing
and you need it to go away

869
00:49:03,448 --> 00:49:04,782
you lose it.

870
00:49:05,283 --> 00:49:07,452
you lose it
what the giant thought

871
00:49:07,535 --> 00:49:09,454
He has it in his head at that moment

872
00:49:09,787 --> 00:49:12,123
What was he probably thinking about?
Before entering

873
00:49:12,207 --> 00:49:14,125
And he really wants to go back to.

874
00:49:18,630 --> 00:49:20,673
He's not like the rest of us.

875
00:49:21,090 --> 00:49:23,843
I don't think my dad
Have you ever taken someone for granted?

876
00:49:23,968 --> 00:49:27,263
But you're a little blind
I think sometimes

877
00:49:27,347 --> 00:49:30,308
to what other people might be doing
behind the scenes.

878
00:49:30,391 --> 00:49:33,019
and my dad has been
A little pass.

879
00:49:35,605 --> 00:49:39,734
Warren can't find the light switch,
And it's probably my fault.

880
00:49:40,068 --> 00:49:43,655
years ago,
When the children were little

881
00:49:43,738 --> 00:49:45,865
I felt really sick.
I had the flu.

882
00:49:45,949 --> 00:49:48,159
So I lay down in bed
And I told Warren

883
00:49:48,243 --> 00:49:51,288
“Will you get me a frying pan or something?
from the kitchen?

884
00:49:51,371 --> 00:49:54,416
I may not make it to the bathroom
I feel so sick."

885
00:49:54,499 --> 00:49:55,709
He said it's okay.

886
00:49:55,792 --> 00:49:58,336
Then he trotted to the kitchen.

887
00:49:58,420 --> 00:50:02,048
and I listen
This bang, beep, boom, bang.

888
00:50:02,716 --> 00:50:06,011
and he appears
And he brings me a colander.

889
00:50:06,094 --> 00:50:10,474
And I looked at him and said,
"Look, honey, this has holes in it."

890
00:50:10,557 --> 00:50:12,309
"Uh-oh, okay."

891
00:50:12,392 --> 00:50:14,019
Then he ran down.

892
00:50:14,311 --> 00:50:17,606
All this blow and everything,
And he appears.

893
00:50:17,981 --> 00:50:21,193
And put the strainer
on a cookie sheet.

894
00:50:26,323 --> 00:50:28,492
Physical proximity to Warren

895
00:50:28,575 --> 00:50:31,119
does not always mean
that he is there with you.

896
00:50:33,955 --> 00:50:36,291
It's so cerebral, see?

897
00:50:39,920 --> 00:50:42,172
That's why I learned
have my own life.

898
00:50:42,256 --> 00:50:45,175
We were two parallel lines and...

899
00:50:45,259 --> 00:50:49,388
But very connected
When I was open to connecting.

900
00:50:53,100 --> 00:50:54,268
I made a joke at one point.

901
00:50:54,351 --> 00:50:56,520
I said, "You know,
We could make a tape

902
00:50:56,603 --> 00:50:59,231
of mom screaming, you know,
"Bye, Warren, I'll be back later!"

903
00:50:59,314 --> 00:51:00,732
And then make the door slam.

904
00:51:00,816 --> 00:51:02,818
And you would only think
She was here.

905
00:51:03,735 --> 00:51:06,447
I don't think he knew
What she was doing most of the time.

906
00:51:09,241 --> 00:51:12,536
Once Howie and I left,
As we get older

907
00:51:12,661 --> 00:51:14,496
She began to see
The writing on the wall here

908
00:51:14,580 --> 00:51:17,041
and you know it's just begun
trying to find out

909
00:51:17,124 --> 00:51:19,418
how could there at least be
a little more

910
00:51:19,501 --> 00:51:21,795
what she called him
You know, a room of your own.

911
00:51:28,886 --> 00:51:30,596
The worst mistakes involve

912
00:51:31,013 --> 00:51:34,391
Not understanding other people
just as you could.

913
00:51:44,652 --> 00:51:47,321
Well she left Omaha in 1977

914
00:51:47,404 --> 00:51:51,200
And there really isn't much
say about that.

915
00:52:00,209 --> 00:52:01,961
It was devastating for him.

916
00:52:02,169 --> 00:52:04,088
and I came home

917
00:52:04,422 --> 00:52:09,135
Because I can't say
I was mad at her exactly.

918
00:52:09,427 --> 00:52:12,305
But I kept thinking,
"How can you leave it?

919
00:52:12,388 --> 00:52:16,058
He is so...
It can't work alone."

920
00:52:16,934 --> 00:52:21,397
Then my mother, she had asked
a group of his friends

921
00:52:21,522 --> 00:52:23,232
to look at it.

922
00:52:23,316 --> 00:52:24,942
And Astrid was one of them.

923
00:52:25,651 --> 00:52:27,445
So I called Astrid, and said

924
00:52:27,528 --> 00:52:30,615
"Astrid, will you take Warren...
Make him some soup?

925
00:52:30,823 --> 00:52:32,533
Go there and take care of him

926
00:52:32,617 --> 00:52:35,536
Because he's not going to make it."

927
00:52:35,953 --> 00:52:38,414
And it took a while
to solve it

928
00:52:38,498 --> 00:52:39,540
But he discovered it.

929
00:52:39,624 --> 00:52:41,834
I said: "I won't let you

930
00:52:41,918 --> 00:52:45,379
Because I will be where you want me
When you want me. "

931
00:52:47,715 --> 00:52:49,550
My mother moved to San Francisco.

932
00:52:49,717 --> 00:52:51,886
And, I think, one of the reasons
It was important to her

933
00:52:51,969 --> 00:52:54,722
leave omaha
It was because she only felt

934
00:52:54,806 --> 00:52:57,016
Like I'm trapped
In this environment

935
00:52:57,100 --> 00:52:59,143
that everyone knew who she was

936
00:52:59,310 --> 00:53:02,397
that she, you know,
He couldn't have his own identity.

937
00:53:03,106 --> 00:53:05,942
I knew there was
something I needed to do

938
00:53:06,067 --> 00:53:08,152
and that she really recognized

939
00:53:08,236 --> 00:53:11,489
that the money gave to all of us and to her

940
00:53:11,573 --> 00:53:14,909
a choice in many ways
that many people didn't have.

941
00:53:15,577 --> 00:53:19,330
There was a time
Warren was being criticized that...

942
00:53:19,414 --> 00:53:23,042
Here was this very, very rich man.
who was getting richer every year

943
00:53:23,209 --> 00:53:25,420
And I really wasn't giving
A lot of money away.

944
00:53:25,503 --> 00:53:28,548
And it was a great review.
by some people

945
00:53:28,923 --> 00:53:30,758
That Warren
I never said anything about.

946
00:53:32,218 --> 00:53:34,387
The most important thing
When making money it is time.

947
00:53:34,471 --> 00:53:36,222
You don't have to be
particularly intelligent.

948
00:53:36,306 --> 00:53:38,058
You just have to be patient.

949
00:53:38,850 --> 00:53:40,852
Susie didn't want to wait
as much as me

950
00:53:40,935 --> 00:53:44,230
But she never fully appreciated
composed as I did.

951
00:53:45,315 --> 00:53:47,776
That is a disagreement we have.

952
00:53:47,859 --> 00:53:49,861
Now I run a base.

953
00:53:50,654 --> 00:53:53,865
I think we should be giving
More money away.

954
00:53:54,240 --> 00:53:59,371
But I understand why we don't
Because it's a business.

955
00:53:59,829 --> 00:54:01,665
For me I wanted it

956
00:54:01,748 --> 00:54:04,209
It wasn't the money itself.

957
00:54:04,334 --> 00:54:06,211
You can see that
in the way he lives.

958
00:54:06,294 --> 00:54:09,631
I mean, he doesn't buy huge paintings

959
00:54:09,714 --> 00:54:12,259
or build big houses
or something like that.

960
00:54:12,509 --> 00:54:17,681
Everything is mental with him
And money is the scorecard.

961
00:54:18,807 --> 00:54:21,101
And he used to tell me

962
00:54:21,184 --> 00:54:26,189
"Everyone can read what I read,
It’s a level playing field.”

963
00:54:26,273 --> 00:54:28,984
And he loves that,
Because it is competitive.

964
00:54:29,401 --> 00:54:32,320
And he's sitting there
all alone in his office

965
00:54:32,404 --> 00:54:36,074
reading these things
that everyone else can read

966
00:54:36,158 --> 00:54:39,077
but he loves
The idea that he is going to win.

967
00:54:43,206 --> 00:54:44,791
I'll tell you how you do it.

968
00:54:45,751 --> 00:54:50,047
Have you ever seen a juggler?
Would you juggle 25 bottles of milk?

969
00:54:50,464 --> 00:54:52,299
How could he do that?

970
00:54:52,966 --> 00:54:54,551
The answer is
It started with a bottle

971
00:54:54,635 --> 00:54:56,720
Then two, then three
and kept doing it

972
00:54:56,803 --> 00:54:58,722
And, very soon, he was 25 years old.

973
00:54:58,805 --> 00:55:00,390
And that's the way we did it.

974
00:55:00,682 --> 00:55:03,185
So basically,
We start with cash

975
00:55:03,727 --> 00:55:05,979
and it ended
Buy a lot of businesses

976
00:55:06,063 --> 00:55:07,815
including insurance companies.

977
00:55:09,066 --> 00:55:12,611
Insurance is, in itself,
a profitable business

978
00:55:12,694 --> 00:55:16,865
But it has the added advantage
to create something

979
00:55:16,949 --> 00:55:18,367
That's called Float.

980
00:55:18,617 --> 00:55:22,162
And FLOAT is money
that hangs by Berkshire

981
00:55:22,246 --> 00:55:24,540
while a claim is waiting to be paid.

982
00:55:24,790 --> 00:55:29,128
And Warren turned out
have extraordinary ability

983
00:55:29,211 --> 00:55:31,922
to use the money
thrown by the float

984
00:55:32,006 --> 00:55:35,551
buy companies
That fueled Berkshire's growth.

985
00:55:38,721 --> 00:55:41,891
In 1983, Mrs. B received
in your business

986
00:55:41,974 --> 00:55:45,185
selling control for $55 million

987
00:55:45,269 --> 00:55:48,022
to a company owned
by investor Warren Buffett.

988
00:55:54,195 --> 00:55:57,948
Warren was quite the expert.
about newspapers.

989
00:55:58,282 --> 00:56:01,285
He was interested in the publication,
Because he recognized it

990
00:56:01,368 --> 00:56:04,622
as a very undervalued company.

991
00:56:05,956 --> 00:56:07,583
He had to write me a letter.

992
00:56:07,666 --> 00:56:10,586
"Dear Mrs. Graham, I just bought
Five percent of your company

993
00:56:10,669 --> 00:56:14,215
and I mean you have no harm,
And I think it's a great company.

994
00:56:14,298 --> 00:56:16,133
I know it's owned by Graham
and Graham runs

995
00:56:16,217 --> 00:56:17,677
And that's fine with me."

996
00:56:18,135 --> 00:56:21,347
And I thought,
"Whoa, this guy is really excellent."

997
00:56:22,598 --> 00:56:26,644
I used to come to board meetings
with about 20 annual reports.

998
00:56:26,727 --> 00:56:29,146
and it would take me
through these annual reports.

999
00:56:29,230 --> 00:56:30,731
I mean, it was like going
to business school

1000
00:56:30,815 --> 00:56:32,233
with Warren Buffett.

1001
00:56:33,192 --> 00:56:37,071
Kay Graham introduced Warren
to the world of Washington

1002
00:56:37,154 --> 00:56:40,783
completely different group
than what I had dealt with before.

1003
00:56:42,451 --> 00:56:45,788
It was clear that working with Kay

1004
00:56:45,872 --> 00:56:48,291
gave him a different type
trustworthy.

1005
00:56:48,374 --> 00:56:50,084
And he was the star.

1006
00:56:51,586 --> 00:56:54,297
everyone wants to listen
What Warren Buffett has to say.

1007
00:56:54,380 --> 00:56:57,383
The Oracle of Omaha
Building your image

1008
00:56:57,467 --> 00:56:59,093
And having a little fun.

1009
00:57:01,387 --> 00:57:04,974
Berkshire shares have risen
More than 2000 percent in value.

1010
00:57:05,058 --> 00:57:07,852
one of the greatest
Market capitalizations in the world

1011
00:57:08,061 --> 00:57:09,228
and could grow much more

1012
00:57:09,312 --> 00:57:12,357
Since Warren Buffett shows no signs
to decelerate.

1013
00:57:12,607 --> 00:57:16,611
So how did he do it? Investing
in what he knows and understands.

1014
00:57:16,694 --> 00:57:18,404
Good old-fashioned American brands

1015
00:57:18,488 --> 00:57:21,866
Like Coca-Cola, Fruit of the loom
and dairy queen.

1016
00:57:21,950 --> 00:57:23,034
What inspired you? I mean...

1017
00:57:23,117 --> 00:57:24,786
- This inspired me.
- Buy what you like.

1018
00:57:24,869 --> 00:57:26,496
- Is that what it is?
- Yes, absolutely.

1019
00:57:29,040 --> 00:57:34,129
Today, the Coca-Cola company
will sell almost two billion

1020
00:57:34,212 --> 00:57:38,216
Eight ounce servings of one form
or other Coca-Cola products.

1021
00:57:38,466 --> 00:57:41,678
Now if you get an extra penny a day,
a penny a portion

1022
00:57:41,845 --> 00:57:45,598
That's 20 million dollars a day,
That's $7.3 billion a year.

1023
00:57:45,682 --> 00:57:47,142
of one cent more.

1024
00:57:48,309 --> 00:57:49,728
When you have Coca-Cola

1025
00:57:49,811 --> 00:57:55,025
you have a piece of minds
of billions and billions of people.

1026
00:57:56,693 --> 00:57:58,194
That's really good.

1027
00:58:00,322 --> 00:58:02,365
And who got the maximum
Hundred dollar bills these days?

1028
00:58:02,449 --> 00:58:04,784
Well his name is Warren Buffett
in this country

1029
00:58:04,868 --> 00:58:07,704
And he just moved
his friend Bill Gates

1030
00:58:07,787 --> 00:58:10,415
As the richest businessman
in the world.

1031
00:58:18,131 --> 00:58:19,382
and the purpose
from Wednesday's meeting

1032
00:58:19,466 --> 00:58:22,093
was to discuss Buffett's company
Berkshire Hathaway plan

1033
00:58:22,177 --> 00:58:24,638
buy railway giant
Burlington Northern.

1034
00:58:24,721 --> 00:58:26,348
Valued at 26 billion dollars

1035
00:58:26,431 --> 00:58:28,934
This would be from Buffett
Largest acquisition in history.

1036
00:58:33,355 --> 00:58:35,524
Berkshire has created
of practically nothing

1037
00:58:35,607 --> 00:58:38,735
in hundreds of billions
dollars in market capitalization.

1038
00:58:39,361 --> 00:58:41,238
Nobody else has a record like that.

1039
00:58:42,030 --> 00:58:45,409
He wanted to have
an outstanding reputation.

1040
00:58:45,575 --> 00:58:48,203
And never really bothered
the apple cart

1041
00:58:48,287 --> 00:58:51,665
When you bought a business,
which kept management in place.

1042
00:58:53,208 --> 00:58:57,921
I was establishing a reputation
That paid off later in life.

1043
00:58:59,256 --> 00:59:02,134
It's been building and building
Since I've known him.

1044
00:59:04,386 --> 00:59:06,513
It takes 20 years
to build a reputation

1045
00:59:06,597 --> 00:59:08,682
And it takes five minutes to lose it.

1046
00:59:12,728 --> 00:59:15,105
When Warren made his investment
in Solomon

1047
00:59:15,189 --> 00:59:18,817
I was one of the people
along with many, many others

1048
00:59:18,901 --> 00:59:21,612
who were quite amazed
Because he had taken

1049
00:59:21,695 --> 00:59:25,366
a very critical tone to speak
about investment bankers

1050
00:59:25,449 --> 00:59:27,076
and about his greed.

1051
00:59:27,159 --> 00:59:31,205
And here I was investing
In a solomon brothers

1052
00:59:31,288 --> 00:59:33,999
that was known
be a member of the club.

1053
00:59:36,543 --> 00:59:38,587
Warren and Charlie went to the board.

1054
00:59:38,712 --> 00:59:43,342
And Charlie couldn't stand
what was happening there

1055
00:59:43,509 --> 00:59:45,636
And I didn't like the culture at all.

1056
00:59:45,886 --> 00:59:49,265
And soon after they got involved

1057
00:59:49,348 --> 00:59:50,975
The thing exploded.

1058
00:59:59,567 --> 01:00:05,114
In 1991, on a terrible day in August,
I received a call

1059
01:00:05,364 --> 01:00:09,243
And Salomon's two best officers
They were at the other end.

1060
01:00:09,326 --> 01:00:13,622
and they said
That, you know, "we have problems."

1061
01:00:16,167 --> 01:00:18,252
This is NBC Nightly News.

1062
01:00:18,544 --> 01:00:20,504
Good night,
It's the kind of scandal

1063
01:00:20,588 --> 01:00:23,007
that rocks wall street
and raise questions

1064
01:00:23,090 --> 01:00:26,177
Questions about integrity
of our financial institutions.

1065
01:00:26,636 --> 01:00:28,512
For the giant securities firm
of the Solomon brothers

1066
01:00:28,596 --> 01:00:32,058
under investigation for incorrect
Treasury bond trading...

1067
01:00:33,184 --> 01:00:34,810
Salomon admitted that he exceeded

1068
01:00:34,894 --> 01:00:37,230
the trading limit
in government bonds

1069
01:00:37,313 --> 01:00:39,607
Once buying bonds
On behalf of a client

1070
01:00:39,690 --> 01:00:41,776
who didn't even know about the deal.

1071
01:00:41,984 --> 01:00:44,028
Solomon Brothers
is under investigation

1072
01:00:44,111 --> 01:00:46,197
by the Treasury Department,
the Federal Reserve

1073
01:00:46,280 --> 01:00:48,491
The SCC and the Department of Justice.

1074
01:00:48,741 --> 01:00:51,577
But more important
that the fate of the company itself

1075
01:00:51,661 --> 01:00:54,956
is the impact of your actions
could have in the public trust

1076
01:00:55,039 --> 01:00:58,167
and about credibility
of the US market worldwide.

1077
01:01:00,044 --> 01:01:03,047
The company must
One hundred and fifty billion dollars.

1078
01:01:03,131 --> 01:01:05,675
I owed more money
than any other private company

1079
01:01:05,758 --> 01:01:07,593
in the United States at that time.

1080
01:01:07,719 --> 01:01:09,762
and that night

1081
01:01:10,263 --> 01:01:12,682
I met the man who ran
The Federal Reserve in New York

1082
01:01:12,765 --> 01:01:16,311
who was the sheriff, in fact,
and I said

1083
01:01:16,394 --> 01:01:18,396
"You know, I've never really had
A lot of money before."

1084
01:01:18,479 --> 01:01:20,356
I said,
"I have a small mortgage on a house

1085
01:01:20,607 --> 01:01:23,067
But 150 billion
It's kind of amazing."

1086
01:01:23,151 --> 01:01:25,486
And I was waiting for him to say
"Well, don't worry, Warren.

1087
01:01:25,570 --> 01:01:27,447
we will give you
a few weeks to breathe."

1088
01:01:27,947 --> 01:01:32,202
and he told me
"Be prepared for any eventuality."

1089
01:01:39,209 --> 01:01:41,461
Early today,
The United States Department of the Treasury announced

1090
01:01:41,544 --> 01:01:44,255
Salomon Brothers had been suspended
to participate

1091
01:01:44,339 --> 01:01:45,965
in the auction of new problems.

1092
01:01:46,049 --> 01:01:49,844
It was one more shock
for a Wall Street with scandal scholarships.

1093
01:01:51,262 --> 01:01:54,641
The Fed was in effect saying
You are an evil force

1094
01:01:54,724 --> 01:01:57,435
and we don't love you
exchanging our bonuses.

1095
01:01:59,604 --> 01:02:02,691
It was a big turning point.
for Warren.

1096
01:02:03,274 --> 01:02:06,069
and he believed
that at that particular point

1097
01:02:06,152 --> 01:02:08,280
His reputation was at stake.

1098
01:02:09,489 --> 01:02:12,242
Warren had 24 hours
to decide

1099
01:02:12,325 --> 01:02:13,785
As to whether I would go
keep going

1100
01:02:13,868 --> 01:02:15,579
Or he just retires.

1101
01:02:16,162 --> 01:02:17,372
And I think at that moment

1102
01:02:17,455 --> 01:02:19,875
Salomon Brothers could be gone
bankrupt.

1103
01:02:20,584 --> 01:02:23,920
And Warren stepped forward
and took responsibility.

1104
01:02:27,757 --> 01:02:29,092
Well...

1105
01:02:29,968 --> 01:02:36,767
I'm Warren Buffett, I was elected
Interim President of Salomon Inc.

1106
01:02:37,559 --> 01:02:39,853
a few hours ago
at a meeting of the Board of Directors.

1107
01:02:40,479 --> 01:02:42,189
Why was it necessary?
For you to get in the way

1108
01:02:42,272 --> 01:02:44,232
and what is
Your leadership mandate?

1109
01:02:44,441 --> 01:02:46,401
I think it was necessary
intervene

1110
01:02:46,485 --> 01:02:50,072
Because I would
Whatever it takes to dig

1111
01:02:50,155 --> 01:02:52,574
Any information
about what has happened in the past

1112
01:02:52,658 --> 01:02:53,992
and I would do everything I could
To make sure

1113
01:02:54,076 --> 01:02:55,535
that things are exactly right
in the future.

1114
01:02:55,619 --> 01:02:57,829
Mr. Buffett,
Are you satisfied that...

1115
01:02:57,913 --> 01:02:59,665
I had to convince the Treasury

1116
01:02:59,748 --> 01:03:03,710
than what was done in the past
It was horrible and stupid.

1117
01:03:03,794 --> 01:03:06,672
And they had every right
be furious with us.

1118
01:03:06,755 --> 01:03:09,007
But this company employed 8,000 people

1119
01:03:09,466 --> 01:03:11,218
And I was going to
go away from business

1120
01:03:11,301 --> 01:03:14,054
unless they let us continue
basically.

1121
01:03:16,473 --> 01:03:18,600
Warren believed there was

1122
01:03:18,684 --> 01:03:20,477
A stage too big to fail.

1123
01:03:20,561 --> 01:03:22,438
The term was not used then

1124
01:03:22,521 --> 01:03:25,732
But he believed
That Solomon was too big to fail.

1125
01:03:26,316 --> 01:03:28,736
And if Solomon fell

1126
01:03:28,819 --> 01:03:32,614
I would take other important parts
of Wall Street with him.

1127
01:03:35,576 --> 01:03:37,786
We had this mortality
of the treasure

1128
01:03:37,870 --> 01:03:40,080
So I called the Treasury.

1129
01:03:40,372 --> 01:03:42,082
Nick Brady was the secretary.

1130
01:03:42,708 --> 01:03:45,044
You know,
I'm begging for my life.

1131
01:03:45,127 --> 01:03:47,212
And I'm sure of my voice
It was cracking and everything else.

1132
01:03:47,296 --> 01:03:49,423
I said, "Nick, this is
The most important day of my life."

1133
01:03:50,215 --> 01:03:51,508
And then I really felt

1134
01:03:51,592 --> 01:03:54,970
what was going to be
A colossal disaster.

1135
01:03:56,388 --> 01:03:58,015
I wasn't sure I was right at all.

1136
01:03:58,098 --> 01:03:59,475
In fact, he probably thought
I was wrong

1137
01:03:59,558 --> 01:04:02,269
but he knew
that I felt what he was saying.

1138
01:04:03,187 --> 01:04:06,023
Then the Treasury modified its order.

1139
01:04:06,106 --> 01:04:09,276
And indeed, of course,
It was a great support.

1140
01:04:10,152 --> 01:04:11,487
It was huge.

1141
01:04:16,242 --> 01:04:17,576
He saved Solomon.

1142
01:04:17,952 --> 01:04:21,330
Nick Brady went with Warren,
Because I trusted him.

1143
01:04:22,164 --> 01:04:25,584
Shows how to have a good reputation
It is really useful in life.

1144
01:04:27,712 --> 01:04:31,173
I thank you for the opportunity
appear before this subcommittee.

1145
01:04:32,258 --> 01:04:34,260
I would like to start by apologizing

1146
01:04:34,343 --> 01:04:36,095
for the events
that have brought us here.

1147
01:04:36,637 --> 01:04:40,516
A nation has the right to wait
its rules and laws to be obeyed.

1148
01:04:40,892 --> 01:04:43,060
But I have also asked
Every Salomon employee

1149
01:04:43,144 --> 01:04:45,605
be yours
Own compliance officer.

1150
01:04:45,938 --> 01:04:48,107
After they first obey all the rules

1151
01:04:48,191 --> 01:04:50,651
So I want employees
wonder

1152
01:04:50,818 --> 01:04:53,946
if they are willing to have
any act contemplated

1153
01:04:54,405 --> 01:04:57,992
Appears the next day on the main page
from your local newspaper

1154
01:04:58,493 --> 01:05:01,704
to be read by their spouses,
children and friends.

1155
01:05:02,538 --> 01:05:04,207
If you follow this test

1156
01:05:04,290 --> 01:05:06,751
They don't need to fear
my other message to them.

1157
01:05:07,210 --> 01:05:09,921
Losing money for the company,
And I will be understanding.

1158
01:05:10,171 --> 01:05:13,508
Lose a bit of reputation
for the signature, and I will be ruthless.

1159
01:05:14,092 --> 01:05:15,718
I appreciate your questions.

1160
01:05:37,657 --> 01:05:38,783
50 years have passed

1161
01:05:38,867 --> 01:05:41,828
Since I formally took control
from Berkshire Hathaway.

1162
01:05:41,911 --> 01:05:44,873
And, step by step,
We have created something

1163
01:05:44,956 --> 01:05:49,002
That's something I dreamed of
We could create over time

1164
01:05:49,085 --> 01:05:50,503
But it took a long time to do it.

1165
01:05:50,587 --> 01:05:53,631
It never seemed like we were doing
that progress on any day

1166
01:05:53,715 --> 01:05:55,592
But compound interest works.

1167
01:05:57,135 --> 01:05:59,387
When you think 50 years ago

1168
01:05:59,471 --> 01:06:02,390
When you founded this company,
Did you ever imagine it would be

1169
01:06:02,474 --> 01:06:04,559
the fifth largest company
in the world?

1170
01:06:06,186 --> 01:06:09,230
No, I didn't,
But if I was thinking about that

1171
01:06:09,314 --> 01:06:12,609
I wouldn't have thought in terms
to be the fifth or the fourth

1172
01:06:12,692 --> 01:06:13,735
or the third.

1173
01:06:13,818 --> 01:06:15,779
- you would have wanted number one.
- Well...

1174
01:06:16,196 --> 01:06:18,156
I mean, if you're going to dream,
You might as well dream.

1175
01:06:18,240 --> 01:06:19,866
two, three

1176
01:06:22,285 --> 01:06:24,955
Bill Gates wins. Bill Gates wins.

1177
01:06:25,038 --> 01:06:27,123
Well, a Berkshire Hathaway
shareholders meeting

1178
01:06:27,207 --> 01:06:30,752
It's partly a fun festival,
It's a kind of Mardi Gras

1179
01:06:30,836 --> 01:06:32,838
so that people come every year.

1180
01:06:32,921 --> 01:06:36,007
It's an opportunity for us
Lots of fun and meet people

1181
01:06:36,091 --> 01:06:38,218
that have been entrusted to us
with your money.

1182
01:06:41,680 --> 01:06:45,726
Well we used to have
Only 30 people in a cafeteria.

1183
01:06:46,476 --> 01:06:49,938
and now we have
This huge public spectacle.

1184
01:06:51,773 --> 01:06:53,483
The celebration is part

1185
01:06:53,567 --> 01:06:57,070
to make a group of people
work well together.

1186
01:06:57,904 --> 01:06:59,156
It's a celebration.

1187
01:06:59,239 --> 01:07:04,453
we are happy
You are here at our meeting.

1188
01:07:04,703 --> 01:07:08,415
Be sure to check out our merchandise.

1189
01:07:08,498 --> 01:07:12,878
we will sell you
See the Candy and Dilly bars.

1190
01:07:12,961 --> 01:07:16,340
And insurance for all your cars.

1191
01:07:16,423 --> 01:07:20,135
For your buy, buy, buy everything you see

1192
01:07:20,219 --> 01:07:25,057
at the Berkshire show.

1193
01:07:33,399 --> 01:07:36,735
He really loves doing what he does.

1194
01:07:37,111 --> 01:07:39,363
- I love you, Warren!
- Oh yeah.

1195
01:07:40,280 --> 01:07:43,826
I think investors
Who owns Berkshire Hathaway?

1196
01:07:43,909 --> 01:07:46,245
they see themselves
as part of a community.

1197
01:07:46,328 --> 01:07:48,414
One, two, three, smile!

1198
01:07:50,082 --> 01:07:52,418
There is more
Berkshire Long-Term Holders

1199
01:07:52,501 --> 01:07:53,961
than any company.

1200
01:07:54,044 --> 01:07:56,005
People consider it a religion.

1201
01:07:58,841 --> 01:08:01,594
They don't buy it with the idea
They will sell it next week.

1202
01:08:01,677 --> 01:08:04,305
I think most of them buy it
with the intention of sustaining it

1203
01:08:04,388 --> 01:08:07,516
for your life as they did
Buy a farm or buy an apartment house.

1204
01:08:08,184 --> 01:08:10,519
At Berkshire, everyone gets
the same information

1205
01:08:10,603 --> 01:08:12,730
of the comprehensive annual report.

1206
01:08:13,606 --> 01:08:15,274
We don't meet with the analysts.

1207
01:08:15,357 --> 01:08:17,610
I'm not interested in what an analyst
Think Berkshire.

1208
01:08:17,693 --> 01:08:20,404
I am interested in what the owners
of Berkshire think Berkshire.

1209
01:08:22,990 --> 01:08:25,242
Left a private association

1210
01:08:25,326 --> 01:08:27,953
where people knew
They were trusting him.

1211
01:08:28,662 --> 01:08:31,415
And he had his relatives
in the association

1212
01:08:31,499 --> 01:08:32,833
And they were not rich.

1213
01:08:33,209 --> 01:08:36,253
And as it got bigger
He started treating everyone else

1214
01:08:36,337 --> 01:08:37,838
The way he treated his relatives.

1215
01:08:41,175 --> 01:08:42,385
In terms of our feeling

1216
01:08:42,468 --> 01:08:44,220
towards the people
who are shareholders

1217
01:08:44,303 --> 01:08:46,055
We consider them as our partners.

1218
01:08:46,555 --> 01:08:48,891
They are not a faceless group
of the people.

1219
01:08:48,975 --> 01:08:50,142
And that's why at the annual meeting

1220
01:08:50,226 --> 01:08:52,228
you know,
I love seeing 40,000 of them.

1221
01:08:53,437 --> 01:08:55,773
Gives real meaning
to what we are doing every day.

1222
01:08:56,566 --> 01:09:02,155
Let's try...
If you know Susie like I know Susie.

1223
01:09:02,738 --> 01:09:05,908
Oh oh, what a girl.

1224
01:09:06,159 --> 01:09:08,870
We only have a lot of love
and respect for each other.

1225
01:09:08,953 --> 01:09:10,538
And that has never changed.

1226
01:09:11,122 --> 01:09:13,291
I don't go to most things in Omaha

1227
01:09:13,374 --> 01:09:15,835
because I think
Astrid lives there with him

1228
01:09:15,918 --> 01:09:17,462
And that's for her.

1229
01:09:18,755 --> 01:09:20,882
And then we do all kinds of things.

1230
01:09:24,802 --> 01:09:28,014
strange for seeming to people
I always think, who cares?

1231
01:09:28,097 --> 01:09:30,642
If you are working among the people
who are directly involved

1232
01:09:30,725 --> 01:09:32,185
Who cares what anyone thinks.

1233
01:09:32,268 --> 01:09:34,395
And my mother and my Astrid
They were very close.

1234
01:09:34,479 --> 01:09:36,731
You know,
They really, really loved each other.

1235
01:09:36,814 --> 01:09:40,068
And I think my mother
I was glad she was there

1236
01:09:40,151 --> 01:09:41,611
Because she, you know,
She loved my dad.

1237
01:09:41,694 --> 01:09:44,113
She wanted him to take care of
and happy and...

1238
01:09:44,239 --> 01:09:46,658
There is no one better than Astrid.
I mean, she loves my dad.

1239
01:09:46,741 --> 01:09:47,951
She wouldn't care if he had a penny.

1240
01:09:48,034 --> 01:09:50,161
where you belong

1241
01:09:50,245 --> 01:09:53,081
Well, Astrid has lived with me
for a long time.

1242
01:09:53,873 --> 01:09:55,375
She has done wonders for me.

1243
01:09:56,084 --> 01:09:58,128
It worked well,
But I don't think it works

1244
01:09:58,211 --> 01:10:00,088
for many other people necessarily.

1245
01:10:02,257 --> 01:10:04,426
Susie and I love each other
and we admire each other

1246
01:10:04,509 --> 01:10:07,303
and we were totally in sync
with what the other was doing

1247
01:10:07,470 --> 01:10:09,681
But we were
two different individuals.

1248
01:10:14,936 --> 01:10:18,857
The first time Warren came out
to San Francisco

1249
01:10:19,733 --> 01:10:22,652
We took a walk and he looked around
And he doesn't...

1250
01:10:22,736 --> 01:10:24,112
It's not very visual.

1251
01:10:25,113 --> 01:10:27,157
He was looking around and said

1252
01:10:27,240 --> 01:10:30,535
"This really is...
This is your city."

1253
01:10:37,459 --> 01:10:42,506
I'm so attracted to color and light
and form and nature

1254
01:10:42,798 --> 01:10:45,926
what he thought
It was a good place for me.

1255
01:10:47,511 --> 01:10:48,553
Over the years, I have developed

1256
01:10:48,637 --> 01:10:50,931
a better understanding
of human nature.

1257
01:10:51,223 --> 01:10:53,225
I can learn a lot about investments
from a book

1258
01:10:53,308 --> 01:10:57,062
But I don't think you can learn
so much about human beings.

1259
01:10:57,229 --> 01:10:58,647
You really need some experiences

1260
01:10:58,730 --> 01:11:02,901
And I'm wiser in that sense
that I was 40 or 50 years old

1261
01:11:02,985 --> 01:11:06,196
despite
I can't drop numbers

1262
01:11:06,280 --> 01:11:08,240
The same way it used to be able to.

1263
01:11:13,537 --> 01:11:18,125
Well I guess what we do
reflects who we are.

1264
01:11:18,208 --> 01:11:20,502
And that's true
for everyone in this room.

1265
01:11:20,669 --> 01:11:22,880
And if you do the work that I do

1266
01:11:22,963 --> 01:11:25,716
You meet the best human beings
in the world.

1267
01:11:25,966 --> 01:11:28,802
People who have done
an option not to make money

1268
01:11:28,886 --> 01:11:31,054
but to serve other human beings.

1269
01:11:31,138 --> 01:11:34,600
I think it's the best kind of life
Anyone could have done it.

1270
01:11:35,267 --> 01:11:36,810
I was with her in Arizona

1271
01:11:36,894 --> 01:11:39,354
In this most powerful fortune
women's conference

1272
01:11:39,438 --> 01:11:41,565
and she told me
who obtained a biopsy the day before.

1273
01:11:41,648 --> 01:11:43,901
And I didn't really think much about it.

1274
01:11:45,944 --> 01:11:48,906
Then we come home,
And the biopsy results were not good.

1275
01:11:48,989 --> 01:11:50,908
It was stage IV oral cancer.

1276
01:11:52,826 --> 01:11:55,621
I was on my way
to a board meeting in India

1277
01:11:55,704 --> 01:11:57,539
and I remember telling him
you know

1278
01:11:57,623 --> 01:11:59,083
"I'll see you when I get back."

1279
01:11:59,166 --> 01:12:01,043
And she rarely cried.

1280
01:12:01,252 --> 01:12:04,380
And she just started crying and said:
"No, you need to stay here

1281
01:12:04,630 --> 01:12:06,799
and you need to get out
for the operation."

1282
01:12:08,676 --> 01:12:10,719
So we were all there

1283
01:12:10,803 --> 01:12:14,056
And the day she was going
in surgery, that morning

1284
01:12:14,139 --> 01:12:15,641
my dad...

1285
01:12:16,976 --> 01:12:19,645
It's funny, he...
There's something about it that just can't...

1286
01:12:19,728 --> 01:12:21,230
You know, he just can't...

1287
01:12:21,313 --> 01:12:24,275
The idea that something happens
it was just for him...

1288
01:12:24,817 --> 01:12:26,986
You know, it was the worst
That could happen.

1289
01:12:28,779 --> 01:12:30,698
She knew it was going to be
Really difficult.

1290
01:12:30,781 --> 01:12:34,326
She knew recovery
It was going to be brutal.

1291
01:12:34,910 --> 01:12:38,497
So I think she had
That surgery for others.

1292
01:12:41,667 --> 01:12:44,629
It was a pretty big surgery.

1293
01:12:44,837 --> 01:12:46,505
She couldn't speak.
She couldn't swallow.

1294
01:12:46,589 --> 01:12:47,924
She couldn't eat.

1295
01:12:48,257 --> 01:12:51,218
But she came out
And I was really with her

1296
01:12:51,302 --> 01:12:53,346
for the next four months or so.

1297
01:12:54,347 --> 01:12:56,140
And my dad went out every weekend.

1298
01:13:02,522 --> 01:13:05,066
And, in a few months,
She was better.

1299
01:13:16,494 --> 01:13:18,413
She and my dad were gone
to Cody, Wyoming

1300
01:13:18,496 --> 01:13:21,207
what they did every year
with a group of friends.

1301
01:13:26,462 --> 01:13:29,590
And my dad called.
This was, I don't know.

1302
01:13:29,674 --> 01:13:32,635
Eight o'clock at night or something like that,
and he said

1303
01:13:33,136 --> 01:13:36,014
"Something happened to mom.
I'm in an ambulance.

1304
01:13:36,431 --> 01:13:37,765
You have to come."

1305
01:13:41,352 --> 01:13:44,105
I really thought something
It had happened to my dad.

1306
01:13:44,272 --> 01:13:46,274
I don't know why I thought that,
But I guess I thought

1307
01:13:46,357 --> 01:13:48,693
You know, my mom had
I had this recovery

1308
01:13:48,776 --> 01:13:50,069
It was successful

1309
01:13:50,153 --> 01:13:53,072
and why something
does it happen to you?

1310
01:13:58,745 --> 01:14:00,079
It was horrible

1311
01:14:00,997 --> 01:14:02,499
and a total shock.

1312
01:14:02,791 --> 01:14:04,250
You know, she had been fine.

1313
01:14:04,834 --> 01:14:06,961
She had been fine
They went to Cody and...

1314
01:14:07,045 --> 01:14:09,214
She was fine
And they were having dinner and...

1315
01:14:09,881 --> 01:14:12,050
You know, she wasn't feeling well.
After dinner and...

1316
01:14:12,801 --> 01:14:14,135
She had a stroke.

1317
01:14:18,974 --> 01:14:22,268
We enter the hospital room,
And my dad was sitting there.

1318
01:14:22,352 --> 01:14:25,313
I had been sitting there all night,
holding his hand.

1319
01:14:27,774 --> 01:14:29,442
I was so proud of him

1320
01:14:29,526 --> 01:14:31,903
Because when it came

1321
01:14:31,987 --> 01:14:33,572
I knew what I was supposed to do.

1322
01:14:33,655 --> 01:14:35,949
And he did it, which was nothing.

1323
01:14:40,495 --> 01:14:45,167
Then my dad went to sleep
and I sat with her and...

1324
01:14:45,250 --> 01:14:46,877
I just kept putting my hand
in your heart

1325
01:14:46,960 --> 01:14:49,504
To see if she was breathing and...

1326
01:14:51,965 --> 01:14:54,342
In a moment, you know
I didn't feel anything.

1327
01:14:54,426 --> 01:14:55,719
So I went out and got the nurse.

1328
01:14:55,802 --> 01:14:58,138
And I said, "Can you come in here?"

1329
01:14:58,221 --> 01:14:59,639
And she said, "No, he's gone."

1330
01:15:00,599 --> 01:15:02,893
So I have to say that
one of the worst moments of my life

1331
01:15:02,976 --> 01:15:04,936
I was waking up my dad
to tell him that.

1332
01:15:15,405 --> 01:15:17,783
It's a very strange thing, love.
You can't get rid of it.

1333
01:15:20,285 --> 01:15:22,579
If you try to give it,
you recover more.

1334
01:15:24,915 --> 01:15:26,667
If you try to hold on to it
you lose it.

1335
01:15:35,634 --> 01:15:38,512
Susie really brought me together.

1336
01:15:38,762 --> 01:15:42,850
She believed in me.
She put me together and...

1337
01:15:43,100 --> 01:15:45,894
And not only would it have resulted
be the person you turned out to be

1338
01:15:45,978 --> 01:15:47,855
But I wouldn't have...
In reality it would not have been

1339
01:15:47,938 --> 01:15:50,482
as successful in business
without that and...

1340
01:15:51,191 --> 01:15:52,985
She made me more of a complete person.

1341
01:16:00,868 --> 01:16:02,286
It turned dark

1342
01:16:02,369 --> 01:16:06,415
essentially calm and inward
for a certain amount of time.

1343
01:16:09,126 --> 01:16:12,296
You know, my dad is a lonely boy

1344
01:16:12,379 --> 01:16:16,675
and he had essentially lived
A lonely life in many ways.

1345
01:16:18,969 --> 01:16:21,639
I think it was reduced
him discovering

1346
01:16:21,722 --> 01:16:25,184
How was I going to get
through this tunnel

1347
01:16:25,267 --> 01:16:26,727
and come out the other side.

1348
01:16:31,816 --> 01:16:33,025
In my head at that moment, I thought

1349
01:16:33,109 --> 01:16:34,985
"God I do not know
If you ever get out of bed."

1350
01:16:39,031 --> 01:16:40,366
But he did it.

1351
01:16:53,129 --> 01:16:55,256
Welcome, I'm Patty Stonesifer

1352
01:16:55,339 --> 01:16:58,342
the CEO of The Bill and Melinda
Gates Foundation.

1353
01:16:58,426 --> 01:16:59,719
And we thank you for coming today

1354
01:16:59,802 --> 01:17:03,389
Especially since I sent
a very vague and very late warning

1355
01:17:03,472 --> 01:17:06,392
to ask you to come to a conversation
with Bill and Melinda

1356
01:17:06,475 --> 01:17:08,477
About the future about philanthropy.

1357
01:17:08,936 --> 01:17:11,439
So let's get on with it.

1358
01:17:11,689 --> 01:17:15,943
I have the pleasure
to introduce a good man

1359
01:17:16,068 --> 01:17:19,155
whose great decision
is going to change the world

1360
01:17:19,238 --> 01:17:20,573
Warren Buffett.

1361
01:17:31,209 --> 01:17:32,919
A notable decision tonight

1362
01:17:33,002 --> 01:17:34,962
of one of the richest men
in the world.

1363
01:17:35,046 --> 01:17:37,090
Mega billionaire Warren Buffett says

1364
01:17:37,173 --> 01:17:39,884
He is giving away
Most of his fortune to charity.

1365
01:17:39,968 --> 01:17:43,012
Buffett has committed to giving away
most of his fortune

1366
01:17:43,096 --> 01:17:45,556
to the bill and to Melinda
Gates Foundation

1367
01:17:45,640 --> 01:17:49,561
and giving more than 15 percent
of your money to foundations

1368
01:17:49,644 --> 01:17:53,064
Started by his three children
and his late wife Susan.

1369
01:17:53,398 --> 01:17:56,776
A global health activist named
What Buffett did today

1370
01:17:56,860 --> 01:17:59,195
one of the most notable
selfless acts

1371
01:17:59,279 --> 01:18:01,406
That history will ever be recorded.

1372
01:18:02,490 --> 01:18:04,909
That's a better hand than I get
at a Berkshire Hathaway meeting.

1373
01:18:06,911 --> 01:18:08,413
I would like to thank you for coming.

1374
01:18:08,496 --> 01:18:12,459
It's a great day for me.
It's a big day for my family.

1375
01:18:12,792 --> 01:18:14,169
My wife Susie and I had planned

1376
01:18:14,252 --> 01:18:17,505
what I did
would return to society.

1377
01:18:17,589 --> 01:18:19,674
And originally
I thought she would outlive me

1378
01:18:19,758 --> 01:18:21,926
and what she would do
a great decision about it.

1379
01:18:22,010 --> 01:18:25,180
But since his death, I had to rethink

1380
01:18:25,263 --> 01:18:27,682
the best way to get the money
in society

1381
01:18:27,766 --> 01:18:29,434
and let it be used
in the most effective way.

1382
01:18:29,517 --> 01:18:32,854
And I had a solution
Looking me in the face.

1383
01:18:33,980 --> 01:18:37,859
It was completely out of nowhere.
I mean, amazing.

1384
01:18:38,318 --> 01:18:43,448
The greatest single gift ever given
It was what he gave that day.

1385
01:18:44,449 --> 01:18:46,493
I would like to ask
the people it represents

1386
01:18:46,576 --> 01:18:49,496
Those various bases
go out.

1387
01:18:53,208 --> 01:18:55,919
The first three letters
They are easy to sign. I just sign "dad."

1388
01:19:10,851 --> 01:19:14,396
When he wrote us the letter
He put something in that letter

1389
01:19:14,479 --> 01:19:18,525
That was incredibly important to me.
what was exactly

1390
01:19:18,609 --> 01:19:21,111
How our base behaves
what is

1391
01:19:21,194 --> 01:19:23,196
"If you're going to try to hit
thousand

1392
01:19:23,280 --> 01:19:25,741
You won't do many things
that are important.

1393
01:19:25,824 --> 01:19:29,119
But if you are willing
basically hit multiple times

1394
01:19:29,202 --> 01:19:30,996
You can really change something big.”

1395
01:19:31,079 --> 01:19:32,414
ICCN!

1396
01:19:35,209 --> 01:19:37,461
Well I feel excellent about the fact
that my three children

1397
01:19:37,544 --> 01:19:40,589
Each one runs a separate base
that combines

1398
01:19:40,839 --> 01:19:44,134
your special interests,
if it's early education

1399
01:19:44,218 --> 01:19:47,513
or if it is agriculture
in areas where people's techniques

1400
01:19:47,596 --> 01:19:50,766
to use small plots of land
could use a lot of improvement.

1401
01:19:51,141 --> 01:19:53,477
All kinds of shapes.
Vaccines, whatever.

1402
01:19:54,686 --> 01:19:56,438
More powerful than Buffett's gift

1403
01:19:56,522 --> 01:19:59,775
is the message you are sending
to other rich Americans

1404
01:19:59,858 --> 01:20:01,777
that those
who have the least in this world

1405
01:20:01,860 --> 01:20:04,947
should benefit
of those who have the most.

1406
01:20:10,244 --> 01:20:11,412
in all my life

1407
01:20:11,495 --> 01:20:15,374
Everything I've spent
will be much less

1408
01:20:15,457 --> 01:20:17,293
that a percent
of everything I've done.

1409
01:20:17,376 --> 01:20:19,753
The other 99 percent more
will go to others

1410
01:20:19,837 --> 01:20:21,964
Because it has no use for me.

1411
01:20:26,051 --> 01:20:31,599
So it's nonsense to me
do not transfer that utility

1412
01:20:31,682 --> 01:20:33,142
to the people who can use it.

1413
01:20:35,019 --> 01:20:36,562
It's not doing me good.

1414
01:20:41,817 --> 01:20:43,778
I am very proud of what we do.

1415
01:20:45,905 --> 01:20:47,365
I almost cry at every board meeting.

1416
01:20:47,448 --> 01:20:51,118
Because I only think
She would be very proud.

1417
01:20:52,495 --> 01:20:55,915
And that is... my biggest job,
In my opinion, it is to make sure

1418
01:20:55,998 --> 01:20:58,417
that every penny is spent
the way she would want it to be spent.

1419
01:21:01,837 --> 01:21:04,340
Whoever you are in this life
You don't want to think

1420
01:21:04,423 --> 01:21:09,512
you wasted a lot
of your energy, love and time

1421
01:21:09,595 --> 01:21:11,430
into something useless.

1422
01:21:13,558 --> 01:21:16,352
I always thought I would get married
a minister, a doctor

1423
01:21:16,435 --> 01:21:21,732
or someone out doing
some valuable service

1424
01:21:21,816 --> 01:21:23,901
to human beings.

1425
01:21:24,360 --> 01:21:28,948
And the fact that I married someone
Who makes only piles of money?

1426
01:21:29,031 --> 01:21:32,034
It's really the antithesis
than I ever thought.

1427
01:21:32,410 --> 01:21:34,245
But I know what it is.

1428
01:21:34,328 --> 01:21:38,207
And he is...

1429
01:21:39,584 --> 01:21:42,503
There is no finer human being
that who is.

1430
01:21:54,599 --> 01:21:58,603
The truth is that I am here
in my position as a matter of luck.

1431
01:22:02,732 --> 01:22:06,569
When I was born in 1930,
The odds were probably 40 to 1

1432
01:22:06,653 --> 01:22:08,822
against my born
in the United States.

1433
01:22:09,823 --> 01:22:12,200
I won the ovary lottery
on that first day

1434
01:22:12,283 --> 01:22:14,077
And, on top of that, he was a man.

1435
01:22:15,328 --> 01:22:17,038
leave it
Like another fifty-fifty shot

1436
01:22:17,122 --> 01:22:18,665
And now the odds are 80 to 1

1437
01:22:18,748 --> 01:22:22,168
against being born a man
in the United States

1438
01:22:22,252 --> 01:22:25,755
And it was enormously important
in my entire life.

1439
01:22:26,548 --> 01:22:28,550
To think that makes me superior

1440
01:22:28,633 --> 01:22:30,635
to anyone else
As a human being it is just...

1441
01:22:30,719 --> 01:22:32,595
I can't continue
that line of reasoning.

1442
01:22:38,643 --> 01:22:41,438
I think I was lucky
have been standing

1443
01:22:41,521 --> 01:22:45,317
with Warren Buffett
while he was becoming Warren Buffett.

1444
01:22:45,901 --> 01:22:49,696
It has developed over the years.
It has been expanded.

1445
01:22:50,238 --> 01:22:53,366
Its values extend
throughout his entire life.

1446
01:22:54,743 --> 01:22:57,579
want to lead a life
that he and his father

1447
01:22:57,662 --> 01:23:01,041
If his father was still alive,
I would say it was good.

1448
01:23:03,210 --> 01:23:04,503
I think it will end

1449
01:23:04,586 --> 01:23:07,380
In the history books
in a hundred years.

1450
01:23:07,464 --> 01:23:10,675
I'm not sure
What role will be assigned?

1451
01:23:10,759 --> 01:23:12,386
He will be famous for what he did

1452
01:23:12,469 --> 01:23:16,056
as an investor
Or as a philanthropist?

1453
01:23:16,932 --> 01:23:19,476
But Warren said
that your ambition in life

1454
01:23:19,559 --> 01:23:20,894
is to be a teacher.

1455
01:23:22,521 --> 01:23:24,356
The world is a great movie to watch

1456
01:23:24,439 --> 01:23:26,900
but you don't want
to the dream walks through life.

1457
01:23:26,984 --> 01:23:28,277
The important thing to do

1458
01:23:28,360 --> 01:23:31,572
is to look for the job you would take
If you didn't need a job.

1459
01:23:31,655 --> 01:23:33,448
And life is wonderful then.

1460
01:23:33,532 --> 01:23:36,159
I mean, you know, you'll jump
getting out of bed in the morning

1461
01:23:36,243 --> 01:23:38,704
Because you really are
Waiting for the day.

1462
01:23:38,996 --> 01:23:43,750
I have, for more than 60 years,
was able to tap dance for work

1463
01:23:43,834 --> 01:23:46,044
Just because I'm doing
What I love to do

1464
01:23:46,128 --> 01:23:49,256
And I feel very, very lucky.

1465
01:23:49,506 --> 01:23:51,300
Okay, class dismissed.

1466
01:24:11,028 --> 01:24:12,363
Hello.

1467
01:24:12,863 --> 01:24:15,366
- Do you fear death?
- No, I don't.

1468
01:24:17,076 --> 01:24:19,286
I've had an excellent life, I feel...

1469
01:24:19,370 --> 01:24:21,330
You know, it's going to happen and...

1470
01:24:21,413 --> 01:24:22,873
I have no idea what happens after that.

1471
01:24:22,957 --> 01:24:26,669
I'm an agnostic, so I, you know...
It can be terribly interesting.

1472
01:24:26,752 --> 01:24:28,462
It may not be interesting at all.
We will find out.

1473
01:24:28,546 --> 01:24:31,006
But physically,
I'm pretty well depreciated.

1474
01:24:31,090 --> 01:24:32,925
I'm going to the recovery value.

1475
01:24:39,473 --> 01:24:40,724
But it really doesn't
any difference at all.

1476
01:24:40,808 --> 01:24:42,852
It doesn't interfere with my work.

1477
01:24:42,935 --> 01:24:44,145
Does not interfere
with my happiness.

1478
01:24:44,228 --> 01:24:45,855
Does not interfere
with my thoughts.

1479
01:24:50,901 --> 01:24:52,820
I don't feel any decline

1480
01:24:52,903 --> 01:24:56,699
in my enjoyment of life
Or my enthusiasm for life at all.

1481
01:24:57,283 --> 01:24:59,618
In fact, in a sense,
the game I'm in

1482
01:24:59,702 --> 01:25:01,662
It gets more interesting all the time.

1483
01:25:03,080 --> 01:25:06,208
It is a competitive game.
It's a great game.

1484
01:25:06,417 --> 01:25:09,334
And I really enjoyed the game.

1485
01:28:28,000 --> 01:28:29,792
Good night, Susie.

1486
01:28:31,900 --> 01:28:40,233
Translator: BTI Studios