I'm Going to the 'Woodstock for Capitalists' - the Berkshire Hathaway AGM

The nondescript Midwestern U.S. city of Omaha, Nebraska will come alive this weekend with its hosting of the Berkshire Hathaway annual general meeting (AGM). I will be there to catch all the excitement and get the most valuable insight to you via a live blog on Saturday, April 30 starting at 10:30 a.m. Eastern time. Also, look for articles on WalletPop.ca describing my experience of the entire weekend.

Why Omaha?

Why will 40,000 people descend on Omaha, a city with a population of 408,958?

One reason only: Warren Buffett, Berkshire's Chairman and Chief Executive Officer.

The crux of Saturday's meeting is Buffett and his business partner, Charlie Munger, answering upwards of 50 questions directly from Berkshire shareholders and through pre-selected financial journalists.

The questions are never-before-seen and there is neither legal counsel nor public relations present to filter questions or answers. I would expect pure straight talk.

Buffett in the limelight

Buffett, 80, is the third wealthiest person in the world, with an estimated net worth of $50 billion, according to Forbes 2010 list of billionaires. He is often nicknamed the "Oracle of Omaha" and is widely considered one of the world's most successful investors.

Buffett has become a very public figure over the last few years. He is a popular subject for financial and mainstream media, to the extent that networks such as CNBC have a "Warren Buffett Watch" web site dedicated to all things Buffett.

He has provided his opinions on many topics including personal finance matters, entrepreneurship, philanthropy, career advice, education, global economic issues and, of course, investing. I would expect the AGM to include questions just as wide-ranging in nature.

An AGM like none other

Company AGMs are often dull gatherings where management answers predictable questions from analysts about their financial results and outlook. Expect no questions about Berkshire's numbers. Shareholders know that the company has delivered an impressive 20.2% compounded annual return since 1965. The company has soundly beaten its benchmark, the Standard & Poor's 500 Index (S&P 500), which returned 9.4% annually over the same period.

I would expect to see long-time Berkshire shareholders who make the annual trip to this "Woodstock for Capitalists," as Buffett calls it, to pay homage to the man who has increased their fortunes in exchange for their loyalty.

Buy, buy, buy

We're not talking stocks here.

Berkshire's meeting will be held at Omaha's Qwest Center arena and convention centre. This venue is normally reserved for sporting events and concerts. The adjoining 194,300-square-foot Exhibitor Floor at the Qwest Center will have products from nearly 40 Berkshire subsidiaries. I anticipate the Berkshire faithful will line up for the opportunity to purchase insurance from GEICO, Blizzards from Dairy Queen, books about Buffett from Bookworm and Quikut knives from The Pampered Chef.

Throughout the weekend, Berskhire's companies in Omaha will be showcasing their wares from jeweller Borsheim's to Nebraska Furniture Mart to private jet carrier NetJets. Many will be offering shareholders a special discount as well.

What I'll be looking for

Buffett has a knack for being able to explain complex concepts in simple terms. His folksy perspective, sense of humour and straightforward analogies help the average person make sense of what's going on in our economy.

As a financial consultant, my goal is to empower people to make confident financial decisions. I will be listening for advice that I can bring back to my customers and readers that will benefit them in their own personal financial matters.

"Ready cash"

Here's one piece of advice to get you started even before the meeting. In his most recent annual letter to shareholders, Buffett included a copy of a 1939 type-written letter authored by his uncle's father, Ernest. Buffett states that "Ernest never went to business school – he never in fact finished high school – but he understood the importance of liquidity as a condition for assured survival."The letter stresses the importance of "keep[ing] a reserve" of "ready cash," more commonly known today as an emergency fund. Ernest built a fund of $1,000 for each of his children and put it in an envelope along with his letter. He says "my wish is that you place this envelope in your safety deposit box, and keep it for the purpose that it was created for. Should the time come when you need part, I would suggest that you use as little as possible, and replace it as soon as possible."

Ernest ends the letter with a comment about Buffetts of generations past. They "never spent all they made, but always saved part of what they made, and it has all worked out pretty well."

Great advice for anyone. Expect more this weekend.

Participate: If you could ask Warren Buffett one question, what would it be? Leave your question in the Comments below, and tune into the live blog this Saturday when you can ask me questions while I'm attending the meeting.



Facts about Berkshire Hathaway
Berkshire Hathaway is a conglomerate holding company composed of over 50 subsidiary companies with interests ranging from insurance, reinsurance, manufacturing, apparel, energy, financial services and retail. Some of Berkshire's better known brands operating in Canada include Fruit of the Loom, Dairy Queen and Benjamin Moore Paints.

The company also has multi-billion dollar investments in large U.S. companies including Coca-Cola, American Express, Kraft Foods and Procter & Gamble.

Berkshire is the sixth largest U.S. corporation based on 2010 revenues of $136.2 billion. Its headquarters is in Omaha, Nebraska.