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Chapters below.

Warren Buffett and Charlie Munger take shareholder questions at the 1995 Berkshire Hathaway annual meeting, covering intrinsic value, capital allocation, and the circle of competence that keeps them out of businesses they can't understand. They explain why cash on the balance sheet is an admission of failure, why Graham and Fisher differ less than people assume, and what made Wells Fargo worth owning when every bank with that much real estate exposure looked doomed. Along the way they cover Salomon pay, Lloyd's of London, the national debt, the USAir mistake, and why Berkshire has never split the stock.

0:11 - Bank stocks

2:51 - Writing a book

3:20 - Dividends

6:21 - Salomon pay

13:37 - Cash as residual

15:02 - Newspapers

18:36 - Hostile takeovers

20:38 - Graham vs Fisher

25:58 - Munger's stock sales

27:12 - Suspect accounting

30:23 - Lloyd's of London

34:29 - Global investing and buybacks

39:00 - Media attention

41:53 - GEICO returns

43:03 - Guinness

45:00 - The shirt

45:33 - Meeting date

46:33 - Foreign securities

48:15 - Helzberg

51:48 - Intrinsic value

55:50 - Stock price and Microsoft

57:48 - Business school education

1:03:55 - Ten years on

1:05:30 - Manager bonuses

1:09:00 - Foreign exchange

1:10:18 - Small-cap opportunities

1:14:36 - Lawyers and lawsuits

1:18:12 - A second Borsheims

1:21:46 - Return on equity

1:24:51 - What Berkshire adds

1:28:10 - Growth, size and reading

1:33:51 - Wells Fargo vs PNC

1:36:35 - Negative equity and buybacks

1:40:29 - Credit cards and banking

1:45:31 - Moats at SunTrust and PNC

1:46:11 - The Salomon casino remark

1:47:42 - National debt and more Coca-Cola

1:57:32 - Berkshire vs a money manager

2:00:27 - Insurance returns and judging management

2:04:25 - P/E and interest rates

2:08:33 - USAir

2:10:12 - Book recommendations

2:11:22 - The stock split question

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Chapters below.

Warren Buffett and Charlie Munger open the 1995 Berkshire Hathaway annual meeting with the vote to authorize preferred stock, then take shareholder questions on capital allocation, insurance float, and how they actually value the operating businesses. They explain the Helzberg acquisition, why technology sits outside the circle of competence, and what went wrong at USAir. Along the way they cover derivatives, stock option accounting, the culture problem at Salomon, and why reluctance to sell a wonderful business is a feature rather than a flaw.

0:00 - Opening remarks

3:09 - The preferred stock proposal

9:49 - Preferred stock and dilution

16:02 - Shareholder votes on the preferred

19:17 - Preferred share rights

21:41 - Hybrid preferred structure

25:29 - The vote and adjournment

27:41 - Helzberg Diamonds announcement

34:19 - Family members on the board

38:26 - Chrysler

39:10 - Capital allocation to subsidiaries

43:14 - Multi-year insurance policies

49:01 - Catastrophe insurance competition

52:46 - Technology investing

56:22 - Writing down USAir

1:01:30 - Economic value added

1:06:16 - Derivatives

1:12:46 - Salomon's outlook

1:17:46 - American Express

1:23:34 - Stock option accounting

1:29:12 - Meeting videotapes

1:31:25 - Borsheims sales

1:31:54 - Succession planning

1:37:01 - The discounting period

1:40:18 - Future use of preferred stock

1:42:40 - Insurance float

1:45:01 - The Beardstown Ladies

1:46:05 - Economic rules of thumb

1:52:04 - Valuing the operating businesses

1:56:41 - Salomon's culture

2:01:52 - Ben Graham editions

2:04:35 - Future returns and reluctance to sell

2:16:45 - Screening a first investment

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