Simplicity is rarely something revered in our world anymore. But this weekend, “the simple life” was on full display as I spent my first visit in Omaha with the oracle.
I arrived Friday afternoon with a clear vision about what I was going to see and hear in the coming days. I have read many of the books about Buffett, watched videos documenting previous meetings, etc. but they failed in capturing what I consider to be the most important aspect of Buffett’s life.
My father and I jumped in our rental car and drove to the Qwest Center for the first time. I wasn’t expecting much in Omaha. I imagined a small town in the middle of cornfields, with the Qwest Center sitting in the middle, sticking out like a sore thumb.
What I found was a city with a “downtown”, with what seemed like one main street, “West Dodge”, and a “simple” feel. Instead of mass franchises scattered, as you would find in many other cities, small family stores dot the landscape. Stores like vacuum cleaner repair shops, pool stores, family owned restaurants.
We drove through the city gazing at these businesses interspersed with homes. There are indeed a few “skyscrapers”, but even they are square and plain.
Our hotel was likewise plain and simple, even though the brand itself was cookie cutter. In twenty minutes, we had landed, rented our car, and driven to the hotel where I found four delicious See’s chocolates sitting on my bed.
Since moving briefly to New York City to work Benjamin Graham a few years after graduating from Columbia, Buffett has lived in Omaha. He returned to his simple home to complete college after attending only two yeas at the University of Pennsylvania’s Wharton School.
The next morning at five I awoke to get ready for the meeting. We drove the rental car through the wonderfully timed thunder and lightning. The line at the Qwest Center had already stretched far from the door with hundreds more diehards.
The line snaked back and forth under the overpass above as people took shelter from the rain. At about six fifty, the doors unexpectedly burst open and the line collapsed into a “mosh pit”. After running down the side of the line, I entered the first door and stepped on a fresh box of Dunkin Donuts someone had dropped when the mob started moving.
As chaotic as the outside was, the inside was peaceful. We took two seats on the end of one of the middle floor rows. I walked to see the exhibition hall before the meeting began. The huge hall was full of simple and basic goods. Dairy Queen Dilly Bars, Justin Boots, and Fruit of the Loom underwear.
Buffett’s answers were like always, straight to the point, simple and stunningly brilliant. Normally twenty seven thousand people packed into an arena would be starring at Brittany Spears or some other extravagant show, backed by hundreds of people. Not this weekend. Instead, just two elderly gentlemen sitting on a dais, with a blue curtain hanging behind them, and two identical plants on either side.
One shareholder asked Buffett a question about the Florida Insurance Industry. Instead of answering himself, Buffett asked that Ajit Jain or another one of the insurance employees stand and answer the question. A Berkshire employee ran to the microphone and answered the question. The Berkshire managers were seated in one section just to Buffett’s left.
After the meeting, we drove down West Dodge Road to Borsheim’s Jewelry store to see the infamous gems. The building was set in a simple suburban feeling mall next to a few other common stores. The entrance while pleasant looking is far from extravagant.
Lastly was the dinner at the Nebraska Furniture Mart. “South of the border” food was being served under tents pitched outside the buildings on the massive seventy-seven acre campus.
In business schools across the country, students are taught complicated is smart and simple is not. Students adept at solving equations with Greek letters are more highly sought after. MBA students dream of building the next Google.
Everything at the meeting went against complexity. As Buffet says:
“If calculus or algebra were required to be a great investor,
I’d have to go back to delivering newspapers.”
Buffett is successful by being simple. He drives to work everyday in his Cadillac and takes an elevator to his three thousand square foot office, where no more than seventeen people manage a company worth one hundred and sixty billion dollars with more than two hundred thousand people.
Having seen the men this past weekend and studied their interviews and speeches, it is clear the simplicity is constant throughout their lives. Munger reportedly wears mostly Brooks Brothers clothing, a line known for its proper and classic look, for a fair price. Likewise, up until recently, Buffett wore whatever he could find. He still buys his Zegna suits off the rack.
Munger outright refuses to use a computer. A Dell he was given years ago remains idle, untouched, covered in dust on his desk. Buffett uses a computer to play bridge, but to my knowledge does not actively use one at work.
I believe Munger and Buffett would be far less successful if they did a few of the following:
1) If Munger and Buffett both sat at computers all day, they would stop thinking nearly as much as they do now. A computer would give them a crutch and a temptation to listen to others and they would lose the logic and rational thought they have become so famous for.
2) If Munger and Buffett lived in New York and worked on Wall Street. The “buzz” would likely interfere with their thoughts. Both men have said again and again that isolated rational thought is the key to successful investing. As Buffet says:
"With enough inside information and a million dollars, you can go broke in a year."
3) If Munger and Buffett spent time shopping for the newest most fashionable clothing, they would lose focus on what they are doing. When asked in a recent CNBC interview what one word would describe his success, Buffett answered, “focus”. Spending time on frivolous accessories would make his extreme focus much harder.
Although picturing Buffett and Munger doing any of these three things is laughable, most managers do them all.
The simple life these men live is the polar opposite of the life of the average Wall Street trader. Many of these fund managers and their clients would do much better to attempt to simplify their lives; maybe by moving to Omaha and/or leaving their computers off.
The annual meeting made me wonder: why does our society appear to be increasingly embracing the complex way of life, when “the simple life” clearly leads to awesome wealth and happiness? The investment community and our world would benefit greatly from a trip to Omaha next May. I know I will.
I arrived Friday afternoon with a clear vision about what I was going to see and hear in the coming days. I have read many of the books about Buffett, watched videos documenting previous meetings, etc. but they failed in capturing what I consider to be the most important aspect of Buffett’s life.
My father and I jumped in our rental car and drove to the Qwest Center for the first time. I wasn’t expecting much in Omaha. I imagined a small town in the middle of cornfields, with the Qwest Center sitting in the middle, sticking out like a sore thumb.
What I found was a city with a “downtown”, with what seemed like one main street, “West Dodge”, and a “simple” feel. Instead of mass franchises scattered, as you would find in many other cities, small family stores dot the landscape. Stores like vacuum cleaner repair shops, pool stores, family owned restaurants.
We drove through the city gazing at these businesses interspersed with homes. There are indeed a few “skyscrapers”, but even they are square and plain.
Our hotel was likewise plain and simple, even though the brand itself was cookie cutter. In twenty minutes, we had landed, rented our car, and driven to the hotel where I found four delicious See’s chocolates sitting on my bed.
Since moving briefly to New York City to work Benjamin Graham a few years after graduating from Columbia, Buffett has lived in Omaha. He returned to his simple home to complete college after attending only two yeas at the University of Pennsylvania’s Wharton School.
The next morning at five I awoke to get ready for the meeting. We drove the rental car through the wonderfully timed thunder and lightning. The line at the Qwest Center had already stretched far from the door with hundreds more diehards.
The line snaked back and forth under the overpass above as people took shelter from the rain. At about six fifty, the doors unexpectedly burst open and the line collapsed into a “mosh pit”. After running down the side of the line, I entered the first door and stepped on a fresh box of Dunkin Donuts someone had dropped when the mob started moving.
As chaotic as the outside was, the inside was peaceful. We took two seats on the end of one of the middle floor rows. I walked to see the exhibition hall before the meeting began. The huge hall was full of simple and basic goods. Dairy Queen Dilly Bars, Justin Boots, and Fruit of the Loom underwear.
Buffett’s answers were like always, straight to the point, simple and stunningly brilliant. Normally twenty seven thousand people packed into an arena would be starring at Brittany Spears or some other extravagant show, backed by hundreds of people. Not this weekend. Instead, just two elderly gentlemen sitting on a dais, with a blue curtain hanging behind them, and two identical plants on either side.
One shareholder asked Buffett a question about the Florida Insurance Industry. Instead of answering himself, Buffett asked that Ajit Jain or another one of the insurance employees stand and answer the question. A Berkshire employee ran to the microphone and answered the question. The Berkshire managers were seated in one section just to Buffett’s left.
After the meeting, we drove down West Dodge Road to Borsheim’s Jewelry store to see the infamous gems. The building was set in a simple suburban feeling mall next to a few other common stores. The entrance while pleasant looking is far from extravagant.
Lastly was the dinner at the Nebraska Furniture Mart. “South of the border” food was being served under tents pitched outside the buildings on the massive seventy-seven acre campus.
In business schools across the country, students are taught complicated is smart and simple is not. Students adept at solving equations with Greek letters are more highly sought after. MBA students dream of building the next Google.
Everything at the meeting went against complexity. As Buffet says:
“If calculus or algebra were required to be a great investor,
I’d have to go back to delivering newspapers.”
Buffett is successful by being simple. He drives to work everyday in his Cadillac and takes an elevator to his three thousand square foot office, where no more than seventeen people manage a company worth one hundred and sixty billion dollars with more than two hundred thousand people.
Having seen the men this past weekend and studied their interviews and speeches, it is clear the simplicity is constant throughout their lives. Munger reportedly wears mostly Brooks Brothers clothing, a line known for its proper and classic look, for a fair price. Likewise, up until recently, Buffett wore whatever he could find. He still buys his Zegna suits off the rack.
Munger outright refuses to use a computer. A Dell he was given years ago remains idle, untouched, covered in dust on his desk. Buffett uses a computer to play bridge, but to my knowledge does not actively use one at work.
I believe Munger and Buffett would be far less successful if they did a few of the following:
1) If Munger and Buffett both sat at computers all day, they would stop thinking nearly as much as they do now. A computer would give them a crutch and a temptation to listen to others and they would lose the logic and rational thought they have become so famous for.
2) If Munger and Buffett lived in New York and worked on Wall Street. The “buzz” would likely interfere with their thoughts. Both men have said again and again that isolated rational thought is the key to successful investing. As Buffet says:
"With enough inside information and a million dollars, you can go broke in a year."
3) If Munger and Buffett spent time shopping for the newest most fashionable clothing, they would lose focus on what they are doing. When asked in a recent CNBC interview what one word would describe his success, Buffett answered, “focus”. Spending time on frivolous accessories would make his extreme focus much harder.
Although picturing Buffett and Munger doing any of these three things is laughable, most managers do them all.
The simple life these men live is the polar opposite of the life of the average Wall Street trader. Many of these fund managers and their clients would do much better to attempt to simplify their lives; maybe by moving to Omaha and/or leaving their computers off.
The annual meeting made me wonder: why does our society appear to be increasingly embracing the complex way of life, when “the simple life” clearly leads to awesome wealth and happiness? The investment community and our world would benefit greatly from a trip to Omaha next May. I know I will.
