Buffett & Gates Go Bac to School - Part 1

THE WORST INVESTMENT YOU'VE EVER MADE? BUFTT: THE WORST INVESTMENT I EVER MADE? HOW LONG DO YOU HAVE? STUD I RECEIVED AN E-MAIL A COUPLE WKS BACK FROM YOU AND ITAID, IF I FORWARD IT TO 20 PEOPLE, I'D GET TEN THOUSAND DOLLARS. I STILL HAVEN'T SEEN THE MOY YET. GATES: MYFAVORITE WAS THAT THEY WOULD COVER LEGAL COSTS FOR JUST DOLLARS A MONTH. STUNT: WHAT DO YOU THINK IS SOME OF THE MOST IMPORTANT OR MOST CHALLENGING SOCIAL ISSUES THAT WE FACE? GATES: I THINK THE ISSUES OF EQUITY BUFFETT: WE GOT LUCKY TICKETS IN LIFE. WEGOT TICKETS THAT SAY "AMERICAN." WE GOT TICKETS THAT SAY "INTELLIGENT." STUDEN WHAT IS THE BEST PIECE OF ADVICE THAT YOU HAVE EVER BE GIVEN? BUFFETT: WHAT DID I TELL YOU THAT IMPRESSED YOU THE MOST? (LAUGHTER) NARRATOR: THE WORLD'S BIGGEST BILLIONAIRES, WARREN BUFFETT AND BILL GATES, GIVE SDENTADVICE ON HOW TO GET A JOB, HOW TO FIND SUCCESS, AND HOW TO HELP CHANGE THE WORLD. COMING NEXT ON "BUFFETT AND GATES GO BACK TO SCHOOL." THIS PROGRAMA MADE POSIBLE BY THE UNIVERSITY OF NEBRASKA FOUNDATION SUPPORTING E MISSION OF EXCELLENCE AT THE FOUR CAMPUSES OF THE UNVERSITY OF NEBRASKA THIGH PRIVATE GIVING, AND BY CONTRIBUTIONS TO YOUR PBS STATION FROVIEWERS LIKE YOU. THANK YOU. ♪MUSIC♪ NARUTO THE TWO RICHEST MEN IN THE WORLD ARE DRAMATICALLY DIFFERENT. WARREN BUFFETT EARNED HfIS $41 BILLION THE OLD-FASHIONED WAY BY INVESTING IN SOLID OLD-LINE COMPANIES THAT SELL BASIC product - INSURANCE, SOFT DRINKS, HOME IMPROVEMENT, AND SHOES. BILL GATES IS THE MODERN GENIUS WHO EARNED HIS $50 BILLION BY CREATING THE WORLD'S LARGEST SOFWARE COMPANY-MICROSOFT. HIS INNOVATIVE PRODUCTS INCLUDE WINDOWS, OFFICE, AND XBO360. ♪MUSIC♪ IN SPITE OF THEIR DIFFERENCES, THE TWO MEN ARE CLOSE FRIENDS - AND THEY SHARE A COMMONASSION -INTERACTING WITH AMERICA'S BRIGHTEST STUDENTS. TODAY, BUFFETT HAS INVITED GATES TO JOIN HIM IN A DIALOGUE WTH STUDENTS FROM THE UNIVERITY OF NEMASKA SCHOOL OF BUSINESS ADMINISTRATION. BUFFETT EARNED HIS BACHELOR'S DEGREE HE IN 1950. WARREN BUFFETT: THERE WAS A GIRL I HAD A BIG CRUSH ON AND SHE WAS PAYING NO ATTENTION TO ME. SHEAS GOING WH SOME GUY WHO PLAYED THE UKULELE, SO I THOUGH I SULD LEARN TO PLAY THE UKULELE. SO I GOT A UKULELE AND LEARNED TO PLAY IT AND Her STL IGNORED ME. (LAUGHTER) NARRATOR: BOTH MEN RELISHHE OPPORTUNITY TO ENGAGE IN SPIRITED DISCUSSION WITH MEMBERS OF THE NEXT GENERATION OF BUSINESS LEADERS. THE ONE CONDITION THEY PLACED ON THIS EVENT IS THAT NO FACULTY, STAFF, PARENTS OR REPORTERS WILL BE ALLOWED TO TALK. LY STUDENTS WILL ASK THE QUESTIONS. STUDENT: WE ARE ALL PRETTY EXCITED - JUST TO HAVE THE OPPORTUNITY TO MEET WITH THE TWO RICHEST PEOPLE IN THE WORLD. STUDENT: THERE'S A LOT OF QUESTIONS. STUDENT: I'VE BEEN WAITING FOR THIS ALL WEEK. STUDENT: I'M FEELING PUMPED. I'M EXCITED SEE THEM AS PEOPLE. WARREN BUFFETT: GOT IT? TERRIFIC. WELL, TH IS GONNA BE GREAT. BOUNCER: EASE GIVE A WARM UNIVERSITY OF NEBRASKA-LINCOLN COLLEGE OF BUSINESS ADMINISTRATION WELCOME TO WARREN BUFFETT AND BILL GATES (APPLAUSE) NARRATOR: AS THE MEN TAKE THEIR SEATS, STUDENTS SELECTED BY THE FACULTY OF THE BUSINE COLLEGE A READY WITH QUESTIONS THAT HAVE NOT BEEN SHARED WITH EITHER BUFFETT OR GATES. (APPLAUSE) THE SCENTS BEGIN WITH ONE OF THE MOST DIFFICULT QUESTIONS FACING BUSINESS TODAY. HELLO. MY NAME'S KIM MARTIN. I'M A FINANCE MAR HERE AT THE UNIVERSITY. MY QUESTION IS: HOW DO YOU INSTILL ETHICAL LEADERSHIP THROUGHOUT YOUR ORGANIZATION AND TO BEGIN WITH, HOW DO YOU KNOW THAT THE MANAGMENT, ONE LEVEL BELOW YOU, IS MAKING DECISIONS THAT WOULD PARALLEL YOUR OWN? WAREN BUFFETT: WE HAVE ALL THE MONEY WE NEED. YOU KNOW, ED LI TO HAVEORE, BUT WE CAN AFFORD TO LOSE MONEY. BUT WE CAN'T AFFORD TO LOSE REPUTATION. NOT A SHRED OF REPUTATION. D THEREFORE, I ASK TE MANAGERS. I ASK THEM TO JUDGE EVERY ACTION THEY TAKE NOT JUST BY LEGAL STANDARDS, ALTHOUGH OBVIOUSLY THAT'S THE FIRST TEST. BUT ALSO, BY THE TEST WHAT I CALL THE NEWSPAPER TEST. HOW WOULD THEY FEEL ABOUT ANY GIVEN ACTION IF THEY KNEW IT WAS TO BE WRITTEN UP THE NEXT DAY IN THEIR LOCAL PAPER TO BE READ BYHEIR FAMILY, BY THEIR FRIENDS, BY THEIR NEIGHBORS, WRITTEN BY A SMART, BUT KIND OF UNFRIENDLY REPORTER. AND IF IT PASSES THAT TEST, IT'S OKAY. AND I TELL THEM IF ANYTHING IS CLOSE TO THE NES, IT OUT. A THEY CAN ALWAYS CALL ME IF THEY WANTED TO CHECK SOMETHING. BUT IF THEY CALL ME, THERE'S SOMETHING WRONG WITH IT PROBABLY ANYWAY. AND THAT'S ABOUT. BILL GATES: IN MICROSOFT'S CASE OUR TOP MANAGMENT TEAM, THE MAJORITY OF THEM JOINED US AS, RIGHT AFTER WHATEVER DEGREE THEY GOT, IF ANY. NOW OUR BUSINESS IN MANY WAYS IS KIND OF SIMPLE. IT'S ABOUT WRITING GREAT SOFTWARE. WE SIT DOWN EVERY YEAR TO GO THROUGH THE VARIOUS THINGS THAT person HAVE TO BE CAREFUL ABOUT. WE HAVE PRODUCTS THAT HAVE HIGH MARKET SHARE. WE DO BUSINESS ALL OVER THE WORLD. SO THERE'S SOME PARTICULAR DICTATE HOW YOU WORK WITH SUPPLIERS, GIFTS THEY MIGHT COME FORWARD WH. BUT IT'S MAINLY SEEING This PE IN ACTION THAT MAKE US CONFIDENT ABOUT THEIR BEHAVIOR. BUFFETT: I SHOULD MENTION AT I AM THINLY COLLEGE GRAD UP HERE. (LAUGHTER) GATES: YEAH, I'LL BE TAKING MY RIVARD SHIRT OFF PRETTY SOON CAUSE I DIDN'T COMPTE THE WHOLE COSE SO I DT INK I SHOULD LEAVE IT ON THE WHOLE TIME. BUFFETT: BUT THEY DON'T ALLOW YOU TO WEAR IT JUST HALF THE DAY, AS I UNDERSTAND IT. (LAUGHTER HI. I'M TARA EIACAN ALSO A SENI FINANCE MAJOR AT THENIVERSITY. D THIS IS F MR. GATES. SINCE YOU JOINED THE ARD AT BERKSHIRE HATHAWAY, HAVE YOU CONSIDERED POSSIBLY TAKINOVER FOR M BUFFETT WHEN HE RETIRES? (LAUGHTER) BUFFETT: I'M GONNA TAKE NOTES ON THIS ONE IF YOU DON'T MIND. (LAUGHTER) TES: YAH, THIS BEING ON THE BERKSHIRE BOARD IS A REAL HONOR FOR ME AND I JUST JOINED THE BOARD LAST DECEMBER. I HAVE TO SAY IT'S NOT VERY REMUNERATIVE. I OULDN'T EVEN MAKE THE FLIT OUT HERE ON MY ON MY BERKSHIRE DIRECTOR'S FEE. (LAUGHTER) BUFFETT: I DIDN'T HEAR THAT PART. (LAUGHTER) GATES: BUT RKSHIRE'S BEEN ORGANIZED IN A VERY UNIQUE WAY AND OF COURSE VERY DIFFERENT FROM MY BUSINESS EXPERIENCE, WHICH IS ALL REALLY LATED TO SOFTWARE AND WHAT GOES ON THERE. SO I'M LOOKING FORWARD TO BEING A GOOD ADVISOR. MAKING SURE THAT BERKSHIRE'S GROOMING PEOPLE FOR WHATEVER SUCCEION EVENTUALLY HAS TO TAKE PLACE, BUT IT WON'T BE ME. BERKSHIRE'S T A LOT OF GREAT PEOPLE AND THEY UNDERSTAND THE UNIQUE SYEM THERE AND WILL STEP UP TO IT. BUFFETT: WE PAY OUR BOARD, OUR DIRECTORS $900 DOLLARS A YE AND I REALLY WOULD LIKE PAY THEM MORE, BUT BILL'S SO FAR AHEAD OF ME ON TT FORBES LIST ALREADY, I DON'T WANT TO GIVE HIM ANY AMMUNITION. (LAUGHTER) SERIOUSLY, WE'RE VERY, VERY LUCKY. I MEAN, THERE ARE PEOPLE THAT WOULD PAY ANYTHING TO HAVE BILL ON THEIR BOARD. AND YOU KNOW, IT'S A REAL ACT OF FRIENDSHIP THAT HE HAS come ON THE BERKSHIRE BOARD. IT KES A LOT OF TIME, IF THE REWARDS SARTRE, THEY'RE ONLY PSYCH. BUT TO HAVE M THERE, YOU KNOW, AND THE SMALL DIFFERENCE IN OUR AGES, MAKES ME FEEL VERY GOOD. I'M THE OLDER ACTUALLY. I AM JUST EXPLAINING. IT MES ME FEEL VERWOOD TO KNOW THAT I'VE GOT PEOPLE BOTH OF THE QUALITY AND THE EXPERIENCE AND EVERYTHING ELSE TO MAKE THAT DECISION WHEN I'M N THERE THE NEXT MORNING, SO I'M VERY GRATEFUL. TA STEINBACH: THANK YOU. BUFFETT: HERE IT COMES. BRING OUT HIS HIGH SCHOO... (LAUGHTER & APPLAUSE) I'M BRIAN POPPE. I'M A NIOR ACTUARIAL SCIENCE MAJOR. QUESTION FOR YOU IS HOW DID YOU TWO MEET THE FIRST ME? ISHERE LIKE SOME SORT OF BILLIONAE' CONFERENCE THAT I DON'T KNOW ABOUT BUFFETT: YEAH, WE HAVE THESE THINGS, BUT WE DON' TALK ABOUT THEM. NO, I MET BILL ON JULY 5TH, 1991. AND I WAS OUTN WASHINGTON AS A GUEST OF A IEND OF MINE WHO AS AN EDITORIAL PAGE EDITOR OF THE WAHINGTON POLAND SHE KNEW BILL'S xPARENTS AND SAD WE'RE GOING DOWN TO THIS PLACE THE HOOD CANAL TO MEET THEM-THE SENIOR GATES AND BILL MAY SHOW UP. AND I'LL LET BILL TAKE I FROM THERE. GATES: WELL, IT WA A FUN EVENT BECAUSE MY MOM WAS VERY SOCIABLE AND ALWAYS, YOU KNOW, GETTING PEOPLE TOGETHER. AND I, AT THIS TIME, DIDN'T BELIEVEN VACATIONS. YOU KNOW, I WAS TOTALLY FOCUSED ON MY JOB. AND SO WHEN SHE SAID TO YOU'VE GOT TO COME OUT AND MEET WITH WARREN AND KATHARINE GRAHAM ...AND A COUPLE OF OTHERPEOPLE, I SAID, MOM, I'M BUSY. AND YOU KNOW, AND SHE SAID, NO THIS WILL BE GREAT. AND I THOUGHT, WELL, I'M NOT SURE, YOU KNOW, I'M INTO THIS SOFTWARE THING D I DIDN'T KNOW MUCH ABOUT INVESTING AND I HADN'T THOUGHT ABOUT IT MUCH, BUT I WENT OUT. AND SO WARREN AND I MET AND I'D ACTUALLY COME OUT IN A HELICOPTER, I WAS PLANNING TO GO BACK A F HOURS LATER. BUT THEN, BY THE ENOF THE DAY I WAS THERE, YOU KNOWJUST TALKING TO WARREN. AND SO IBEGANN UNBELIEVLE FRIENDSHIP FOR ME AND YOU KNOW, I CAN TELL THAT EVEN THOUGH WE CAME FROM DIFFERENT DIRECT, THE KINDS OF THINGS THAT FASCNAD US AND THAT WE THOUGHT WERE IMPORTANT WE VERY MUCH THE SAME. AND SO YOU KNOW, FOR THE LST 14 YEA WE FOUND EVERY EXCUSE POSSIBLE TO GET TOGETHER WHETHER IT'S, YOU KNOW, BRIDGE OR GOLF, BUT REALLY IT'S ABOUT TALKING ABOUT T WORLD AND THINKINGBOUT WHAT'S GOING ON THAT'S AT THE CORE OF IT. BUFFETT: THE MORAL OF THAT IS - LISTEN TO YOUR MOTHER. (LAUGHTER) HI. I'M MARK SCHMITZ. I'M A SENIOR ACTUARIAL SCIENCE MAJOR. CAN YOU TELL US A LITTLE BIT ABOUT YOUR WORK - TYPICAL WORK DAY A HOW YOU MANAGE YOUR TIME TO PLAY HALO 2.... AND THAT KIND OF STUFF. GATES: WELL, I DON'T GET TO PLAY MUCH HALO 2. I HAVE TO SAY WHEN I PLAY WITH MY LEAGUES AT WORK, I GET SLAUGHTERED SO FAST, IT'S UNBELIEVABLE - WHEN I'M ON XBOX LIVE. I'M A LITTLE BETTER AT PROJECT GOTHAM RACING. YOU KNOW, IT'S NICE TO HAVE A JOB WHERE GAMING THIS A SERIOUS PURSUIT WHEN YOU GET TO THINK ABOUT THAT AND TALK ABOUT THAT. BUFFETT: THAT'S WHAT HE SAYS. (LAUGHTER) GATES: AND PLAYING AUND WITH THE LATEST TECHNOLOGY WHETHER IT'S, YOU KNOW, NEW PCS, KING ANEW SOFTWARE, SITTING DOWN WITH RESECHERS. IT'S WHY I THINK MY JOB IS THE BEST. WARREN THINKS He IS THE BES BUT I'M SURE I'M RIGHT. ANYWAY, I'M IN MEETINGS A LOT. MY CALENDAR GETS VERY FULL WITH THOSE. D THEN AT NIGHT, AFTER THE KIDSAVE GONE TO BED, I'M ON E- A GREAT DEAL. I GET MESSAGES DURING THE DA THAT'S MY CHANCE TO GIVE LONG RESNSES. AND THEN OVER THE WEEKEND, I SEND A LOT OF MAIL AS WELL. I TAKE TWO WEEKS A YEAR TO JUST GO OFF AND READ AND THINK WHERE I'M NOT INTERRUPTED BY WORK OR ANYTHING ELSE AND I'M JUST SOLIDLY TRYING TO THINK ABOUT THE FUTURE AND PEOPLE GET TO SEND ME THINGS TO READ AS PART OF THAT SO-CALLED "THINK WEEK." SO IT'S A NICE MIX OF THINGS. ABOUT 25 PERCENT OF THE TIME, THEN I'M OUT TRAVELING AROUND MEETING WITH STOMERS - EUROPE, ASIA, AND THAT SORT OF HELPS ME THINK, OKAY WE HAVE THE RIGHT PRIORITIES? WHAT AREEOPL RESPONDING WELL TO? AND WHAT WOULD THEY LIKE TO SS DO BETTER? BUFFETT: I'M ON "THINK WEEK" ABOUT 50 WEEKS A EAR. (LAUGHTER) I WORK ABOUT TWO. D YOU'D BE SURPRISED AT MY DAYS. I MEAN THEY A - ARE VERY UNSTRUCTURED. NO MEETINGS. NONE. I MEAN, I DON'T LIKE MEETINGS. AND READ A LOT. BUT I WISH I WE A FASTER READER AND I'D YOU KNOW GEMORE DONE, BUT I DO REAA LOT AND I'M ON THE PHONE A MODERATE AMOUNT. OUR BUSINESSES RUN THEMSVES BASICALLY OUT THERE. JOB IS ALLOCATING CAPITAL AND THAT'S WHAT I'M THINKING ABOUT. BUT I DON'T LIKE TO HAVE THINGS ALL PACKED HOUR TO HOUR TO HOUR. BILL AND I ARE BOTH EXTRAORDINARILY LUCKY. I MEAN WE REALLY GET TO DO WHAT WE LIKE TDO THE WAY WE WANT TO DO IT, WITH PEOPLE THAT WE CHOOSE TO BEAROUND AND THEY'RE TERRIFIC. I MEAN WE'VE REALLY GOT EVERYTHING OUR WAY. AND WE'RE VERY FORTUNATE. AND IN HIS WORLD, HE HAS A DIFFERENT KIND OF PE THAN I HAVE, BUT WE BOTH LOVE IT THE WAY WE DIT AND MY GUESS IS THAT WE'RE EACH THE MOST PRODUCTIVE IN THAT PARTICULAR MODELO CAUSE IT FITS OUR PERSONALITIES AND APTITUDE. MY NAME'S TOPHER VORHIES AND I'M A SENIOR FINAL MAJOR. MY QUESTION IS AFTER THE XBOX 360, WHERE DO YOU SEE VIDEO GAMES GOING? (LAUGHTER) GATES WELL XBOX 360'S PRETTY GOOD STUFF. IT'S SORT OF THE FIRST OF GENERATION OF WHAT WE CL HIGH-DEFINITION GAMES WHERE TH REALISTIC VISION THAT YOU GET ISLMOST LIKE REALITY. THE OTHER SIGHING IS, WE WAN GAMING TO BE MORE SOCIAL SO THIS IDEA OF "LIVE," WHERE YOUR FRIENDS N GET ON, CAN HA GATORS AND CONTESTS AND MAKE IT INTO A VERY SOCL ACTIVITY. BUT WE THINK WE CAN DRAW IN PEOPLE WHO ARE OLDER, PEOPLE WHO ARE YOUNGER, MORE WOMEN INTO IT BY HAVING MORE VARIETY OF THESE GAME TYPES. NOW EVERY FOUR OR FIVE YEARS, THERE BE A NEW GAME. SO AFTERBOX 360 I DON'T WHAT WE'LL CALL IT... 720 OR SOMETHING OBVIOUS LIKE THAT. YOU ONLY HAVE TO GO OUT MUCH FURTHER UNTIL THE VISUAL REALISM IS SO GOODHART IT'S LIKE TRYING TO IMPROVE A CD ADIO. YOU KNOW, THERARE WAYS ENCODING AUDIO WITH MORE RESOLUTION THAN A IMPACT DISK. BUT PEOPLE CAN'T TELL THE DIFFERENCE. SO A LOT OF IT WILL COME BACK TO THE CREATIVITY OF THOSE ME DEVELOPERS. WE WILL START TO HAVE CAMERAS AND SPEECH RECOGNITI SO YOU'LL BE ABLE TO TALK TO THE GAME INSTEAD OF JUST ING THE TRIGGERS. YOU'LL BE ABLE TO TAKE, YOU KNOW, A BAT OR A GOLF CLUB, AND OUR CAMERA WILL WATCH WHAT YOU'RE DOING AND SO IT'LL BE BIT MORE LE THE VIRTUAL REALITY THING IN TERMS OF REACTING AND THEN ITS SEEING EXACTLY W TO RESPOND TO THAT. HEO, I'M PAMELA BRACEY, I'M A SENIOR MARKETING MAJOR AT THE UNIVERSITY. IF YOU GUYS DECIDED TO DROP A $0 BILL WOU YOU BOTHER TO GO BACKED PICK IT UP? OR WOULD YOU LET A LOWLY COLLE STUDENT LIKE MYSELF GO GET IT? (LAUGHTER) BUFFETT: IF HE DROPS TEN CENTS ON THE FLOOR AS HE'S WALKING OUT AND HE DOESN'T PICK IT UP, I'LL PICK IT UP. (LAUGHTER AND APPLAUSE) ♪MUSIC♪ NAHTOR: NEXT, WARREN BUFFETT AND BILL GATES GIVE WORLD CLASS ADVICE TO THE STUDETS ABOUT GOOD HABITS, MAKING MISTAKES, AND KEEPING THEIR INR SCORECARD IN CHECK. ♪MUSIC♪ HI. MY NAME IS NICOLE BROCKHOFT AND I AM A SENIOR BUSINESS ADMINISTRATION MAJOR HERE AT THE UNIVERSITY. AND I S JUST WONRINGHAT IS THE BEST PIECE OF ADVICE YOU'D EVER BEEN GIVEN ANDOW S IT IMPACTED YOUR PERSONAL OR PROFESSIONAL LIVES? BUFFETT: WHAT DID I TELL YOU THAT IMPRESSED YOU THE MOST? (LAUGHTER) GATES: ACTUALLY, I CAN SWER THAT. WHEN FIRST I MET WARREN, WE WERE TALKING ABOUT A GETTING TOGETHER AND DOING SOMEINGAGAIN. WELCHE PULLED OUT HIS CALENDAR AND THE PAS WERE SO BLANK AND I SAID, WOW, YOU KNOW, YOU'VE MANAGED TO AVOID GETTING TIED INTO LOT OF KIND OF MEANINGLESS ACTIVITY. AND YOU KNOWWARREN SAID, YEAH YOU HAVE TO BE GOOD AT SAYG "NO" AND PICKING THE THINGS THAT REALLYAKE A DIFFERENCE. AND THAT'S ONE OF MANYHINGS I'VE LEARNED FROM WARREN, BUT THAT'S ONE OF MY FAVORITES AND SO I CAN BLAME IT ON HIM WHENEVER I'M TURNING THINGS DOWN. BUFFETT: WELL, ACTUALLY, I LD HIM T TRUTH IS I DON'T GET INVITED ANYPLACE. (LAUGHTER) THINK THAT I GOT AN AWFUL LOT OF GOOD ADVICE FROM MY DAD. AND HE DIDN LAY IT ON ME. I MEAN HE JUST, YOU KNOW, YOU PICKED IT FROM HIM, UT THERE WASEVER ANY OF THIS, YOU KNOW, DO THIS, DO THAT TYPE OF THING AT ALL, BUT I THINK HE REALLY TT THAT IT'MORE IMPORTANT IN TERMS OF WHAT'S ON YOUR INNER SCORECARD THAN YOUR OUTER SRECARD. SOME PEOPLE GET IN THE SITION WHERE THEY - THEY'RE THININ ALL OF THE TI, BUT WHAT THE WORLD'S GOING TO THINK OF THI OR THAT INSTEAD OF WHAT THEY THEMSELVES THINK ABOUT IT. IF YOUR INNER SCORECA, IF YOU'RE COMFORTABLE WITH THAT, I THINK YOU'RE GOING TO HAVE A PRETTY HAPPY LIFE. D I INK THE PEOPLE THAT STRIVE TOO MUCH FOR THE OUTER SCORECARD SOMETIMES FIND IT IT'S A LITTLE HOLLOW WHEN THEY GET ALL THROUGH. I'M MARY REISER. I'M AN ACCOUNTING MAJOR. I'D LITO KNOW WE ALL CONSIDER YOU TO BE THE FINANCIAL SINESS EXPERTS AND WE LOOK TO YOU AND FOLLOW YOUR LEAD. BUT WHEN YOU NEED ADVISE AND FEBACK ABOUT AN IDEA OR A DECISION, I'D LIKE TO KW WHO DO YOU GO T BUFFETT: WELL, USUALLY I LOOK IN T MIRROR, TO BE PERFECTLY HONEST. (LAUGHTER & APPLAUSE) THE NATURE OF WHAT I DO MEANS I HAVE TO THINK PRETTY MUCH INDEPENDENTLY BECAUSE IF I TAKE A POLL, IN EFFECT, I'M GNG TO DO WTEVER EVERYBODY ELSE IS DOING AND I DON'T THINK MUCH OF THAT USUALLY IN INVESTMENTS AND SO I HA TO VE AN ENVIRONMENT AND I HAVE TO HAVE THE TEMPERAMENT PERSONALLY THAT LETS ME THINK R MYSELF. AND I'VE GOT A TERRIFIC PARTNER, A FELLOW NAMED CHARLEY MUNGER, AND YOU CAN'T FIND ANYBODY ANY SMARTER, ANY BETTER QUALITY AT ANYTHI, BUT THINK A LOT AKE. AND WE TALK THINGS OVER OCCASIONALLY, BUT WE DON'T TALK THEM OVER VERY OFTEN BECAUSE I KNOW HOW HE THINKS. HE KNOWS HOW I THINK. HE'S TAUGHT ME A LOT, YOU KNOW, AND WHY SHOULD I PAY FOR A PHONE CALL IF I KNOW WHAT HE'S GOING TO SAY. SO, IF I NEED TO GET A CABINET AROUND TO MAKE DECISIONS OR ANYTHING LIKE AT, I PROBLY SHOULDT BE RUNNG THE PLACE, THAT DOESN'T BOTHER ME TO HAVE THE RESPONSIBILITY FOR IT, BUT I JUST DON'T WANT TO PUT IT P TO A VOTE BECAUSE I'VE SEEN TOO MANY PARTICULARLY IN THE INVESTMENT WORLD. AS YOU GET LARGER AND LARGER THOSE MAKING THE DECIONS THEY GET MORE AND MORE HOMOGENIZED. AND I DON'T THINK YOU WILL EVER GET BRILLIANT INVESENT DECISNS OUT OF A LARGE OMMITTEE. GATES: FOR ME, PROBAB THE MOST IMPORTANT DEONS I MAKE ARE LOT LIKE WHEN I TAKE WHATECHNOLOGIES THE COMPANIES GOING TO BET ON. THOSE ARE A BIT LIKE WARREN - WHERE YOU REALLY HAVE TO BE WILLING TO BE CONTRARY TO LEAVE SOME THINGS ASIDE AND TO GO INTO SOME PLAC TT AREN'T VERY HOT. IF YOU GET OUTSIDE OF THAT THNICAL REALM, YOU KNOW, I'M SUPER LUCKY, I HAVE STEPHEN BALLMER, WHO IS NOW CEO OF MICROSOFT AND WE'RE IN EACH OTHER'S OFFICES ALMOST EVERY DAY. HE YOU KNOW, HE MORE OF A BUSINESS TYPE THINKER. I'M MORE OF TECHNOLOGY TYPE THINKER, BUT WE A LITLE BIT HAVE LEARNED WHAT THE OTHEONE'S GOING TO SAY OVER THE YEARS SO WE CAN GIVE EACH OTHER A HARD TIME ABOUT THE POSITIONS WE EXPECT. OUTSIDE OF THAT, IF I HAD SOME REAY TOUGH DECISION, I'D TK TO MY DAD. I'D TALK TO WARREN. I'D TALK TMY WIFE MENDA. I HAVE ENOUGH PEOPLE THAT KNOW ME AND ACTUALLY KNOW WHERE MY JUDGMENT ISN'T ITS STRONGE WHERE I MIGHT GET OVEREXCITED ABOUT SOMETHING, OR YOU KNOW, FORGET TO THINK ABOUT SOMETHING AND SO THEYE GOOD AT CORRECTING - PARTICURLY MELINDA - GOOD ATCORRECTING WHATEVER THOSE BLIND SPOTS ARE. AND I THINK IT IS REALLY GOOD TO ENCOURAGE YOUR FRIENDAND ADVISORS TO REALLY GIVE THEM THATICSE. YOU KNOW, I CAN G TO A PTY AND FORGET TO SAY HELLO TO VARIOUS PEOPLE OR SOMETHING THAT'S A VERY MINOR EXAMPLE OFY BLIND SPOT. BUT... BUFFETT: NOT TO THE HOSTESS. (LAUGHTER) GATE WELL, MELINDA WOULD HELP ME DO THAT. BUFFETT: SHE WOULD. GATES: SO YOKNOW, A SMALL NUMBER OF PEOPLE THAT YOU CAN TURN TO ON CERTAIN KEY THINGS IS A GRT, GREAT T. BUFFETT: INCIDENTALLY, AT BERKSHIRE - LL HAS AN INTEGRATED BUSINESS - WE HAVE THIS DIVERSE GROUOUT THERE. BUT WE HAVE 40 MAGERS AND I REALLY ENCOURAGEHEM TO BEOING THE SAME THING. I MEAN THEY RUN THEIR SINESSES AND THEY KNOW HOW TO DO IT. AND THEY'RE GOING TO MAKE SOME MISTAKES, UT THEY BASICALLY MAKE THE CALLS AND THEY DON'T HAVE TO CHECK WITH US.