Even those of us who spend time at the front of the room need to sit in the audience now and then. My annual trek to Omaha, Neb., to attend the AGR Partners Food & Agribusiness Roundtable in conjunction with the Berkshire Hathaway Annual Meeting is one of my most valued professional development commitments.
Some call the Berkshire Hathaway event, attended by over 40,000 people from across the globe, the “Woodstock of Capitalists.” Yes, many business owners and investors attend, but others come to engage with like-minded people and, of course, hear from the leadership of Berkshire Hathaway. Both conferences offered many nuggets of advice for business and life, which I will share in the next few columns.
Right opportunity, right price
My good friend the late Danny Klinefelter of Texas A&M University used to say, “Timing is everything,” especially when it came to buying land.
Warren Buffett, former CEO of Berkshire Hathaway, echoed that sentiment in an interview with Becky Quick of CNBC. Buffett said that you must pick the right opportunities at the right price and align them with operational excellence, along with consumer and societal trends that fit within your core values. Over his 60-year investment horizon from 1965 to 2025, he said this perfect timing has only occurred five times. The lesson: Pick your spots, maintain capital and liquidity, and invest in businesses with strong, proactive management.
Casino vs. church mentality
Buffett’s point is that in today’s world, more people and investors have adopted the casino mentality vs. the church mentality of character and discipline. With the acceleration of artificial intelligence in investing and everyday life, short-run gains are crowding out the disciplined, incremental approach that builds real wealth over the long run. You see it in sports gambling and day trading, both of which can be addictive, with real physical and mental health consequences. This reminds me of the 1984 Chicago song “Hard Habit to Break.”
You see the same thing in commodity marketing, with individuals seeking the home run rather than the base hits that keep you in the game. This is occurring in the red-hot beef market, where producers are beating themselves up for leaving money on the table.
Compliance: A smoother road
Buffett, who is 95, had a pointed take on regulation. He said that more businesses and people spend time, energy and money attempting to circumvent regulations rather than simply complying with them. Yes, regulations and laws can quickly stifle innovation and entrepreneurship, but that balance is often needed.
Next time, we will continue with more takeaways for your summer reflection as the days get longer.