Buffett does indeed have a family, and he has it set up so that none of his kid's get RICH when he dies. ALMOST ALL of what he owns is going to charity. (according to published articles)
He sez he is looking for anything to buy, preferably a company that will NOT require a lot of cash to operate (example - Airlines always have to layout a ton of cash on new airplanes, maintenence is costly, buying new routes or competitors that operate in the same geographical area, such as their bad idea on USAIR a few years ago).
He even looks at Europe, but sees no value (profit) in much of anything. He looks at Japan, sees companies way under book value, but the book value is worthless because it is based on past history, and NOBODY in Japan is buying anything. Sales in Japan are at a real low point. He wants product domination, such as Coke. (product domination: or words to that effect....less competition....)
He sez he bought Silver a year and a half ago because it was cheap, and he was running out of ideas on what else to buy.
But for now, he (BRK-HATH) is just sitting on a lot of money because he doesn't see anything out there to buy.
WB also said the Companies he (BH) buy are supposed to be 'crash-proof' - they just keep selling their products. Also, Coke, Gillette, American Express don't do much Research and Development, so whatever thay can add in sales, is generally revenue. he doesn't like to buy
companies that outlay a lot of cash into R&D because he may never see it profit, for 5 years, if ever.
And he hates Tech companies still, especially Internet related companies, because he sez he doesn't understand tech stuff. he only buys what he understands.
This is some of what he said at the Shareholder's meeting today. |
