The Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) shareholder meeting with Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) is jokingly referred to as Woodstock for Capitalists as it draws a large and growing crowd every year. And hundreds of thousands of people tune-in to watch the event streamed live on Yahoo.
But should you watch the live broadcast?
What is your purpose for watching the Berkshire Hathaway shareholders meeting?
My main purpose for not watching the full three-to-five hour live broadcasting is because I know I will not learn anything new about investing.
That’s why I’ll be watching the three-minute highlight reel instead.
And nothing new regarding investment technique or strategy will be said in the Q&A with Buffett and Munger.
If your purpose is to gain investment knowledge, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) have already written down their investment wisdom in their respective shareholder letters. Start from 1977 and right through until today for Buffett’s shareholder letters, and Charlie Munger (Trades, Portfolio)’s Wesco Financial Corp. Shareholder letters start from 1997 and run through 2009.
Further, avoid reading other people’s biased opinions on those same letters. Always read the original source, because a lot of media companies like to use Buffett’s reputation to market their own products. It's exactly the same reason Nike Inc. uses star athletes to market its products. There is nothing wrong with the marketing practice of association when it is used ethically, but Buffett has never endorsed them.
But if I was a shareholder, I would attend. It is an event I’d love to experience, but I wouldn’t expect to learn anything new.Â
Remember there is an opportunity cost to watching the full live broadcast, so it’s important to define your purpose for watching or not watching. If you decide not to watch, then determine how to use that time productively instead. May I suggest spending that time reading to gain an undestanding of a stock, industry or valuation technique?
The decision is yours, and in Jocko Willink’s words, “Take extreme ownership.”
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