Warren Buffett On The Future Of AI, Self-Driving Cars & Mankind | May 5, 2014 | Summary and Q&A

Summary

Warren Buffett gives an interview where he discusses various topics such as his annual shareholder meeting, business schools, questions from Twitter, the number of attendees at the shareholder meeting, Berkshire Hathaway's exhibition floor, his successor, corporate taxes, executive compensation, Coca-Cola, Microsoft, Alibaba, bitcoin, print media, and the situation in Ukraine.

Questions & Answers

Q: How many business schools were present at the shareholder meeting?

About 40 business schools were present at the shareholder meeting.

Q: Why did Warren Buffett bring in business schools to the shareholder meeting?

Buffett believes it is important to engage with business schools and values their focused questions.

Q: Did Warren Buffett receive a lot of questions from Twitter?

Yes, Buffett received thousands of emails from Twitter, including some brilliant questions and some not-so-brilliant ones.

Q: How many attendees were there at the shareholder meeting?

The exact number is not known, but it was definitely higher than the previous record which was around 38,000. It may have been around 38,000-40,000.

Q: What is it like for Warren Buffett to be on the exhibition floor?

Buffett enjoys being on the exhibition floor and interacting with Berkshire shareholders. He has a good time and sees familiar faces.

Q: Does Warren Buffett ever get nervous during the shareholder meeting?

No, Buffett does not get nervous as the crowd is friendly and he enjoys the interaction. He does, however, bring an extra suit in case of any mishaps.

Q: How does Warren Buffett select companies to add to the exhibition floor?

Buffett looks for companies to add to the exhibition floor every year, but there is limited space. He wants to add companies that fit with Berkshire's culture.

Q: Does Warren Buffett believe they will hold the shareholder meeting in Dallas next year?

No, Buffett does not believe they will hold the shareholder meeting in Dallas. He values the connection to Omaha and does not want to leave it behind.

Q: Would Warren Buffett require his successor to live in Omaha?

It is highly probable that Omaha would remain the headquarters and the successor would live in Omaha. Corporate citizenship and tax reasons make it unlikely that the headquarters would be moved.

Q: Would Warren Buffett consider incorporating Berkshire overseas to get better tax rates?

No, Buffett does not see Berkshire ever incorporating overseas for tax reasons. He believes that the current tax rates in the United States are sufficient.

Q: Who are the likely successors to Warren Buffett?

The likely successors to Warren Buffett are internal candidates, and at present, they are all male. However, that does not mean the situation won't change in the future.

Q: Would Warren Buffett require his successor to follow the Berkshire way?

While Buffett cannot require anything since he won't be there, he believes that his successor will be someone who is deeply ingrained in the Berkshire culture. They may do things their own way, but the core principles of Berkshire will remain unchanged.

Q: Does Warren Buffett pay all his taxes?

Yes, Buffett pays all his taxes and believes it is important for individuals and corporations to pay their fair share.

Q: Is high corporate tax rate a negative for businesses in the United States?

While high corporate tax rates and onerous business regulations can be frustrating, it is important to consider the overall context. Corporate taxes as a percentage of GDP have decreased over the years, and the corporate sector has done well in the United States.

Q: Why did Warren Buffett abstain from voting on Coca-Cola's compensation packages?

Buffett abstained from voting on Coca-Cola's compensation packages because he disagreed with them. However, he did not want to go to war with the management and still holds the company and its directors in high regard.

Q: What would Coca-Cola's compensation packages look like if Berkshire fully owned the company?

If Berkshire fully owned Coca-Cola, the compensation packages would likely be structured differently. Berkshire believes in tying compensation with performance and would align it with the control of the person being paid.

Q: What was the attendance at the shareholder meeting this year?

The exact attendance numbers are not known, but it was an all-time high, likely between 38,000 and 40,000 attendees.

Q: Does Warren Buffett invest in Bitcoin or Blackberry?

No, Warren Buffett does not invest in either Bitcoin or Blackberry. He is not interested in investing in IPOs and believes it is rare to find a bargain price in an IPO. As for Bitcoin and Blackberry, he would probably short both.

Q: What does Warren Buffett think of the situation in Ukraine?

Warren Buffett is concerned about the situation in Ukraine and believes it is dangerous when boundaries start getting changed. He prefers stable and predictable situations and does not like uncertainties.

Q: Will the situation in Ukraine lead to a dark outcome like in Weimar Germany?

Charlie Munger, vice chair of Berkshire Hathaway, believes that the memory of Weimar Germany's inflation and the rise of Hitler is unsettling. He does not like to be reminded of Hitler or countries trying to change borders.

Q: How is the United States handling the situation with Vladimir Putin?

Warren Buffett does not have insight into the behind-the-scenes actions but believes it is important to handle the situation carefully and not escalate the problem.

Q: Does Warren Buffett believe the U.S. dollar will eventually disappear?

Warren Buffett believes that the U.S. dollar will remain the world's reserve currency for a long time. He does not see it going away in the foreseeable future.