Berky Meeting Nuggets 2017

It's time for the latest Berkshire Hathaway annual shareholders meeting summary, the 2017 version of  Woodstock for Capitalists that was held in Omaha last week.  Last year I focused on some of the funnier lines said at the meeting, and other times I've focused on specific topic, but this year I'm going more observational.

On the scramble to enter the meeting
The Wall Street Journal published an article the day before the meeting about the secrets of some frequent meeting-goers in their attempts to get good seats once the arena doors open at 7am.  (It’s first-come, first-served seating.)  I have my own strategy that I’ve refined over the years, which includes knowing where the shortest entrance line always is, and also where to find the limited supply of free pastries and beverages are once inside the venue.  I almost – almost – feel bad for those who stand in line outside for so long, only to get much worse seats than I do.

On Warren Buffett and Charlie Munger
Warren Buffett and Charlie Munger, as one late-day questioner put it, must have iron bladders.  They sit on chairs answering questions for hours at a time, always drinking Coke, and never have to take a bathroom break.  They are ages 86 and 93, respectively.

On protesters
For the first time in several years, one of the questioners was actually a protester.  She had another person hold up a sign behind her while going on a rant about how capitalism is bad, using slavery, wealth and the sugar in Coca-Cola(!) as examples.   She was soon boo-ed loudly enough that no one could hear her speak.  Note to interrupting protesters:  Meeting attendees will only hate you and your cause more for wasting their time doing this.  Also, most of us love sugar.

On foreign meeting attendees
There have always been large numbers of international visitors at the meeting.   However, this year I felt the number of Asians not only far exceeded Europeans, it actually rivaled Americans in attendance.  Many appeared to be there as members of large tour groups.  I sat among a crowd of friendly Chinese folks, and there were also a few questions during the meeting about the Chinese stock market.  Not sure what to make of this trend, if anything.

On Jack Bogle
In this year’s shareholder letter, Buffett went out of his way to point out how much money that Jack Bogle, the founder of Vanguard Funds and the father of index fund investing, had saved for investors.  It’s in the billions of dollars, collectively.  Bogle happened to be in the reserved seating area this year, and Buffett introduced him.  It was an historic moment, knowing that Buffett, Munger, Bogle, and I were all in the same room together.

Iowa's Medical Marijuana "Victory"

Let's briefly ignore the fact that we should legalize recreational marijuana, and instead make time for an Iowa medical marijuana update.....

When last we visited the Iowa legislative and executive branch, our soon-to-be-gone Republican Governor Branstad (leaving to become the biggest dufus ambassador to China we've ever had) and the Republican-controlled House were still doing everything they could to pretend that even highly-regulated medical marijuana was a gateway drug.

More specifically, Iowa law allowed certain medically-eligible patients to possess a small amount of pot, but it can't be grown or purchased in Iowa nor imported it from another state.  It's a joke.

A glimmer of hope for the future occurred at the end of this year's legislative session, when the Iowa Senate -- where there is now also a majority of Republicans, just fewer dumb ones -- overwhelmingly passed a bill that would expand medical marijuana to many more afflictions, and well as allow a few Iowa-based regulated growing centers.

Unfortunately, the House watered it down to the point that there won't be enough THC (the psychoactive constitute in cannabis that matters to medical marijuana patients) in the drug to make a difference for most who need it.  And who knows if the outgoing governor will sign it into law, although he probably will because it will politically help the incoming governor.

So in summary, it's another hollow victory for medical marijuana in Iowa, which is actually a step up from the completely empty victory of the past.  The state remains mired in a stupid, fearful 'unintended consequences' attitude that has prevailed in Iowa for some time, even in the middle of the biggest opioid addiction crisis in history, and a still-increasing number of alcohol-related deaths.

The bottom line is, if my child or I was suffering physically, and I knew using marijuana helped, I would go get it anywhere, anyhow, and dare somebody to arrest me for possessing or using it.  Also, I'd laugh at the fact Iowa is missing out on getting taxes from me out of the deal.....Idiots!

The ABC's Of Injustice

Anyone for the alphabet game?
Before now I hadn't thought of it.
Could be interesting.
Don't know if there will be a point to it.
Even a possibility of it being lame.
For now, I'm going to try it.
Gorsuch is now on the Supreme Court.
He shouldn't be.
Ironically.....
Justice was not served.
Keep in mind that another was chosen.
Last year Obama nominated Garland.
Most agreed he was qualified.
Never even got a confirmation hearing.
Opposition didn't care.
Partisan politics at worst.
Questionable constitutionality at best.
Republicans should be ashamed.
Senator Grassley especially is a tool.
Too old, too white, too Trump-loving.
Unfit to represent the state and country.
Very sad situation.
We have other problems in the U.S.
Xenophobia is one of them.
Yet I've no more time to elaborate.
Zero.

Best Song Lyrics (Part XIX)

If I said one of the greatest songwriters of all-time had the given name of Gordon Matthew Thomas Sumner, would you know who that is?  Maybe 1 out of 100 people over the age of 40 (and 1 out of 1000 younger than that) could tell you it was the artist currently known as Sting.

Sting first become famous as the front man for The Police, writing and singing big hits like Every Breath You Take and Every Little Thing She Does Is Magic in the late 70s and early 80s,  He started his solo career in the mid-80s, and has been going strong ever since.

At the peak of his powers in the 90s, Sting had a string of great songs that included the hits If I Ever Lose My Faith In You and Fields Of Gold.  But it was one of his earlier efforts, a pre-Cold War ending song called Russians, which had the sharp lyrics that resonated with me both then, and now:

In Europe and America, there's a growing feeling of hysteria,
Conditioned to respond to all the threats, in the rhetorical speeches of the Soviets,
Mr. Krushchev said we will bury you, I don't subscribe to this point of view,
It would be such an ignorant thing to do, if the Russians love their children too

How can I save my little boy, from Oppenheimer's deadly toy,
There is no monopoly in common sense, on either side of the political fence,
We share the same biology, regardless of ideology,
Believe me when I say to you, I hope the Russians love their children too

There is no historical precedent, to put the words in the mouth of the President,
There's no such thing as a winnable war, it's a lie we don't believe anymore,
Mr. Reagan says we will protect you, I don't subscribe to this point of view,
Believe me when I say to you, I hope the Russians love their children too

We share the same biology, regardless of ideology,
What might save us, me, and you, is if the Russians love their children too

That's The Ticket

I recently attended the Big XII basketball tournament in Kansas City.  I've been to this event quite often over the past 25 years, back to when it was only the Big 8 basketball tournament held at an older arena in Kansas City,

In all of the tournament game sessions I've attended in that time, perhaps 25 or so, I've only had advance tickets in hand once.  Every other time, including this year, I relied on being able to buy tickets from those selling near the venue.

Given this experience of buying secondary market tickets on the street, a/k/a ticket scalping, I feel I can provide a good list of do's and don'ts in this area.

DO check the secondary ticket prices on-line before you go.  This is something that wasn't available years ago, the ability to look at StubHub or some other on-line ticket broker.  It's nice to have an idea of the prices going in, however, know that the on-line prices should generally be a bit higher than what you could get on the street, where there is no automatic third-party broker transaction fee.

DON'T get too excited.  Know why you often see ticket scalpers many blocks away from the venues?  It isn't because they're afraid of violating some scalping ordinance.  It's because they know rubes who have never bought/sold tickets on the street before are likely to buy/sell them at the first opportunity.  If a ticket scalper is blocks away from the stadium, you can be sure there will be many others closer to it, buying/selling at a more market-based price.

DO try to buy tickets from a non-professional seller.  A good rule of thumb is to look for someone wearing the school colors of a team.  Those folks are more likely to be happy to sell their extra tickets at a less-than-market-based price, just to not delay their getting into the arena.  This is the same reason why a professional scalper is constantly asking if anyone has any extra tickets; then they can buy low and re-sell them again.  (An easy rule of thumb for identifying pro scalpers is, it's anyone wearing a sign about buying or selling tickets!)

DON'T be afraid to negotiate.  No one selling tickets should expect to get the full price for which they're asking.  It's a barter system.  Ask for a lower price.  If you are far apart in price, just say you aren't ready to accept that and walk away.  You might end up buying from them later.

DO wait until as close to game time as possible to buy.  This is the most obvious, and most violated, strategy of buyers.  By game-time, the nervous amateurs will be gone, and the pro scalpers will be more eager to get rid of the remaining tickets they hold.  A willingness to miss some of the pre-game festivities, and maybe even the start of the game, is easily the most difficult and the most valuable thing a buyer can do.

The Critical Condition Of Critical Thinking

I've always sub-titled this blog "The random rants of a critical independent thinker."**  What does this critical thinker moniker mean to me?

First, I now realize it means I've been using an extra, unnecessary word for a lot of years, because true critical thinking is always independent.  It's should not be affected by race, gender, religious or political affiliation, or any pre-conceived notion that would alter one's perspective.

Critical thinking is actively assessing factual information, and then drawing a conclusion.  In other words, it's the opposite of most thinking today, in which people seek out information to support their already drawn conclusions (a/k/a confirmation bias).

Note that I said "factual" information.  Critical thinkers don't just assume everything they hear and read is true.  This is a real problem for most people today, who seem to swallow anything they hear from their neighbor, or read on the internet.  Critical thinkers not only question the rationality of the information, but also the reliability of the source providing it.

As for that sourcing, critical thinkers absorb information from a wide variety of people and places.  You can't call yourself a critical thinker if you only read the same, single newspaper / web site year-round.  Or watch the same broadcast network year-round.  Or talk to only people with the same background.

Based on that basic summary, it follows that I believe there's at least one other truth about critical thinkers:  These days, they are in short supply.

**Due to the second paragraph, as of today, it's "The random rants of a critical thinker."

Better To Be Seen Than Heard

Thirty years ago, I worked in a corporate administrative role that required daily phone contact with dozens of outside contacts around the country.  Most of the time, these conversations were cordial and professional.  Rarely but occasionally, these conversations were the opposite of cordial and professional.

Always, however, these conversations were better if I had met in-person with the individual on the other side of the phone.  Back in the day, travel was the only way to accomplish this (although now one could get halfway there courtesy of technology via Skype or FaceTime), but the relationship was consistently better if that occurred.  Once you looked another person in the eye and interacted with them, the relationship would improve, at least to some degree.

I was reminded of this again this week, after sending emails to my national elected representatives.  Knowing I would only get a form letter in return (maybe), I didn’t spend a lot of time on my email.  I quickly offered my opinions and my support or disagreement, and got out.  And in return, I got my form letters.   I suspect the same would have happened had I called.

With thousands of constituents, I understand that a personal reply from a congressperson is improbable, even from a staffer.   But it’s also too easy to be dismissive of faceless words and voices.  Thirty years ago, that was mostly done using a phone, but today, it can be done by email, text, and a variety of faceless social media.

I’m still convinced that the impact of whatever as individual wanted to say is more meaningful if delivered in person – even in the current political climate.  Each year I visit the Iowa Capitol building to visit my state reps.  There’s no doubt this carries more weight with them than an email, because I personify an actual constituent / voter.   [Note:  I did get personal emails back from my local/state elected officials in reply to my own.]

I’ve never attended a local meeting of a national elected representative; there are usually opportunities to do so, I’ve simply never had the passion for an issue to do that.  Maybe it’s time, because after all these years and technology substitutes, it's still better to be seen than it is to be heard.