Berkshire Hathaway Lovefest Includes Prophecy from Oracle
Berkshire Hathaway just concluded its annual shareholders lovefest (here and here). At a time when shareholder meetings are often raucous, the BH meeting was akin to revival. The presence of its Pope and CEO, Warren Buffett, the Oracle of Omaha, made it so. Everyone genuflected upon entry and listened in a state of rapture on earth. For 4-5 hours, he gave answers that were prophetic to his disciples. The meeting was attended by 40,000 people, making the Oracle the head of the largest mega-church in the world.
Warren Buffett is the most admired CEO there is. To his shareholders and other followers, he’s all-knowing. It’s hard to argue that point. If all of us had followed his lead a long time ago and had stayed the course, we’d be worry-free. He is Midas of the 20th and 21st centuries.
I followed the sayings of Buffett this year, hoping for a fresh view of things, yearning for heartfelt honesty, willing to take a dose of reality. I’m probably just an oddball, but I didn’t get any of that.
According to the Oracle, business is picking up. His many companies are hiring again. He has a gleam in his eye as he surveys the world, looking for even more businesses to buy. He fully supports Goldman Sachs and believes in the firm’s integrity.
For the unchurched, business is picking up only marginally. There’s a little hiring going on, but there are still layoffs, business closures, and millions of unemployed. Most employers find expansion impossible because they can’t get a loan. Main Street’s view of Wall Street is still jaundiced. I guess if I had $20 billion in cash after plunking $5 billion into Goldman recently, I’d have the same view of things Buffett does. Since I don’t, I think he’s off his rocker.
One more reason not to get investment advice from an employment lawyer.
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About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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Buffett is admired not only because he makes his investors rich, but because he is a respected employer and known for telling the truth (something often lacking in CEO’s). If he says sales and hiring are up in his companies, you can bet they are. He is also known for buying companies that other people fear to invest in. Soon those other people find he was right and wish they had seen the big picture the way he did. He isn’t always right, but when he isn’t he owns up to it (Buffett did not expect the economic crisis to be as bad as it was.)
You talked about companies not being able to get loans (something definitely true a few months ago), yet I have been hearing more and more that credit is beginning to loosen up. I hear ads daily from banks and credit unions telling us they have money to loan. You are a great source for employment law. No offense intended, but for economic advice I think I will still rely on Buffett (as well as a few others.)
Nae,
As well you should. No offense taken. As I said in my post, if we’d all been disciples of Buffett for a long time, we’d be in good shape. For all of Buffett’s good qualities (as you outlined), there’s no way he can relate to ordinary people. I think some of what he said at this year’s BH annual meeting is evidence of that.
I see the ads, too — just no loans. Banks and credit unions will lend to people like Buffett but that’s about it. I have clients who have always maintained great credit, have been in business a long time, have had a tough go for a couple of years, but are ready to get on with it. They can’t get the time of day, much less a loan.
As always, Nae, I appreciate your comments.
John