2004 Berkshire Hathaway Annual Meeting (Full Version)

Thank you. Good morning. Some of you may have noticed a stuntman was used in that. Arnold just couldn't handle some of those scenes. Before we get started, I'd especially like to thank Andy Hayward, who's here today, and if we can, no way we can find him out in the crowd. It's a little hard to see from up here, but Andy runs Deke Productions. He does that cartoon for us, and I let's give him a big hand.

Andy has produced a really extraordinary series, telling the story of the beginning of this country called "Liberty's Kids." It's been on public broadcasting the last couple of years. It's great for kids, but it's great for adults too. I've watched a number of sessions myself, and this summer in July, it will go on sale at Walmart. A very special celebration. For those of you who want to pick out something good for your children or your grandchildren, I can't think of a better series for them to watch.

And thanks again, Andy, and thanks also to Kelly Muchmore, who puts this whole production on. This is Kelly's show. She, along with that dog Dudley, who you saw in the movie—Dudley is a regular at Berkshire Hathaway. We don't count him in the 15.8, but she, along with Dudley, handle everything. I don't even give a thought to what's going to happen here, as might become evident during the meeting, and she is responsible for putting up that whole exhibition arrangement and really the whole thing. So Kelly, I don't know where you are exactly, but in any event, thank you very much.

Now we'll go through the business part of the meeting, and it may take a little longer than usual, but please be patient. I'd like to start out by calling the meeting to order. I'm Warren Buffett, Chairman of the Board of Berkshire Hathaway, and I welcome you to this meeting. This hyperkinetic fellow next to me is Charlie Munger, the Vice Chairman, and we will have a good time, and I hope you do too.

We work together because he can hear, and I can see. I mean, there are times when we can't remember each other's names, but we have a lot of fun together. Now, any shareholder who wishes to speak regarding the shareholder proposal expected to be presented by Human Life International or any other matters germane to the shareholders meeting should now go to microphone zones 1, which is in section 121 over on my right, or section 2, which is at section 221. I believe that's higher up on my right.

Let me see if I have that right. Yeah, or go to section E, section 7, which is, or section 105, which is microphone 7 on my left, or to section 205, which is microphone 8. If you'll go to, if you're going to want to talk about anything concerning the business of the meeting—not the questions afterwards, but just that relates to the matters germane to the meeting—please go there now because I'm not going to be able to spot people in a crowd this size.

When it comes time to do the business, we're going to ask anybody that cares to speak up on the business to be at those microphones, and that will be in just a couple of minutes. Now, after the adjournment of the business meeting, I'll respond to questions that you may have that relate to the businesses of Berkshire, but that don't call for any action at the meeting.

We had some complaints after last year that some people were asking six or seven-part questions; at least that's the reason I'm giving that we're eliminating those. The bigger reason is Charlie, I can't remember the first part by the time you get to the fifth part. So we are asking you to ask only one question, and don't try to get too clever about working three or four into a single question, and that will give more people a chance to get their questions asked. Only one question at a time, and we will go around from microphone to microphone and get as many in as we can.

Now, we're going to do this until noon, and then we'll take a break for lunch, and we'll come back about one and we'll continue until 3:30, and anything goes on the questions. We'll answer almost anything except questions about what we may be buying or se...