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BRK AGM Answers and New info learned
I am keeping this brief since I am sure others will post good info. Also, I am composing this on a Palm and am painfully slow with graffitti.

Q3-Freddie Mac-sold because husiness
changed -more risky loans, taking uncompensated risk of megacatasrophe for example by not requiring earthqhake insurance along
New Madrid fault. Risk of increased
govt. regulation was not an issue!

Q19-Re synergy
WEB reluctantly used synergy to
describe how GenRe benefits from
being part of BRK. It can write larger policies and does not haue to lay off
risk to other reinsurers.

Q21-Asbestos liability
They refused specific comment on
USG other than to say it was miniscule part of BRK. In general not
concerned with exposure. CM noted
plantiff's Bar's power increases over
time since judges haue jobs for life
as long as they don't piss anyone
powerful off. Judges should be throwing more cases out. Also, risk-reward for bringing suit very good odds for plantiff's attornies.

Q22 I will let UR Take this one :-)

OTHER ITEMS FREQUENTLY DISCUSSED HERE:

ON SELLING COKE OR GILLETTE

WEB said it would be very difficult to sell a stock where he or CM are on the
board. Others would assume they were selling on inside info.
WEB says being on board of publically
traded holding may be a mistake-
limits flexibility.

ON THE FUTURE OF BRK
WEB hopes they acquire 40 businesses over the next 20 years without increasing BRK shares outstanding.
WEB puts probability of long term 15%
BRK earnings growth at near zero.
CM agreed.

ON ACQUIRING A FORIEGN BUSINESS-
would be very interested if economics were compelling
"phone hasn't rung yet"

NET JETS
WEB says growth limited by plane
auailaibility. Wants to go worldwide,
"decades until business matures"
No fear whatsoever of UAL venture -
they have huge corparate culture disadvantages.
Fractional jet ownership is not a commodity business. "You don't
want to buy a parachute from lowest
bidder." EJ emphasizes safety and
service. Was refusing to fly to Aspen
on night of recent crash.
70% of EJ new business is by refferal
from satisfied clients.
WEB-CM do not worry about dumb
competitors in a service business (as opposed to a commodity business)
CM-"they will bleed, we have more blood"

ON THE THREAT OF THE INTERNET
Obvious that it will not be as large
a threat to brick and mortar retailers
as many thought.
CM noted example of grocery delivery business-terrible when he
was doing it as a boy -very inefficient
"the idea of doing this on the internet
is zany" (refering to Webvan)

Moneymaking opportunity in Net so far
mainly by stock promotion, not
economic value creation.

ON THE FORTUNE NOV 99 ARTICLE
WEB Still expects 6-7% returns from
equities next 15 years
"15% is a dream world"
CM noted pension acct'ng is"drifting
into scandal"-must decrease estimated returns from 9% WEB said
"but then the actuaries would be
fired since no management would want to take that earnings hit.

ON SUCCESSION WITHIN BERKSHIRE
In addition to the often described plan for himself, WEB asks all subsidiary managers to update succession plans
witin their companies every two years

FINOVA
now in chapter 11 -whether Berkadia
venture is a go now depends on courts-other plans such as one from GE may be submitted to the court.. Leukadia experience huge asset in managing assets of bankrupt Finova. BRK is Finova's
largest creditor and should do well
in most scenarios, but handling assets
properly can be worth a billion!

FINANCIAL SERVICES
WEB says "hard to understand even if you own it"
3 parts
1.GenRe Securities--Derivatives business run by Mark Byrne
WEB says less risk than other many other derivative opertations.
CM says in general derivative accounting is highly flawed "intrinsically irresponsible"--too optimistic in long term assumptions--like owning a taxi company and using 30 years for the life
of your fleet.
2.Structured settlements-- a very predictable business
3.WEB trading in the fixed income/arbitrage arena
CM calls this "oddball pastimes of WEB."

Most of my other notes are about items previously covered in years past.
I will post the more interesting quotes later if noone else does.

I greatly enjoyed meeting a number of other members of this board this weekend. Thanks to TMF Hunzi for her hospitality yesterday.
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