May 2009

Question: Have you given any thought to spinning off any companies? Buffett: We will not be spinning off any companies. We've got a wonderful business. We want to continue it within Berkshire. We've got this ability in terms of moving money around into various opportunities without tax consequences. So if See's Candies is a wonderful business, which it is and generates capital that can't be ... read more

Buffett: We don't want relationships that are based on contracts. I can't really think of a formal contract that we have. We have understandings about bonus arrangements with various managers. We have different arrangements because all the businesses are different. We don't try to hold people by contracts and it wouldn't work. We basically don't like engaging in them. Munger: Our model is a ... read more

Question: Will you be looking to do more business in China? Buffett: China is a huge market. There will perhaps be opportunities to buy more businesses there. We would have bought more than 10% of BYD if we could have - but that's all they wished to sell us. Chinese dollar assets are going to build as long as there is a significant trade surplus with China. Munger: I think China has one of ... read more

Munger: Best days of Berkshire are ahead. This company will make a big contribution to its surrounding civilization. ... read more

Question: The Bank of America and Merrill Lynch deal has been in the news lately because of lack of disclosure. Who should be authorized to make a decision not to disclose information to public? If Berkshire Hathway was pressured - how would you respond? Buffett: I'd be terribly interested to hear Charlie's answer on that. If you learn from a confidential source that there's going to be a ... read more

Question:  When will see return on investment on MidAmerican Energy's wind farms? Buffett: We're the largest in terms of wind and capacity of any utility. But the wind only blows about 35% of the time in Iowa... so you can't count on it for your baseload. But Iowa has been very receptive and progressive in encouraging us to bring them a lot of wind capacity. We are a net exporter of ... read more

Question: How would you quantify the impact and damage of Berkshire losing its AAA credit rating? What are you doing actively to restore its AAA rating? Buffett: It won't regain it soon - I don't think ratings agencies would turn around like that. Moody's affirmed the rating in January. In terms of our credit default swaps which is a metric you can use for credit acceptance. That spread came ... read more

Question: What is your latest outlook on the dollar given what's been thrown up in the air in the last 6 months?\ Buffett: It's pretty unpredictable. I guarantee you the dollar will buy less 10-20 years from now. But we are doing things that will hurt the purchasing power of the dollar. On the other hand the same thing is happening in different countries around the world. The British will run a ... read more

Question on Berkshire's latest investment - BYD Munger:...I know it looks like Warren and I have gone crazy - but I don't think we have. The car you're going to see - I think they make everything in that car except the glass and rubber. Whoever went into autos and made every part? This is not normal. This is very unusual and I regard it as a privilege to have Berkshire associated with a company ... read more

Buffett: 1Q operating earnings of $1.7B vs. $1.9B one year ago. Cash on hand a little less than $20B. We're lucky to be in the insurance and utility businesses ... read more