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At Berkshire Hathaway Meeting, Warren Buffett Talks of Sharing the Wealth Warren Buffett Holds Forth on Sharing the Wealth
(about 9 hours later)
OMAHA — Priyanka Bodalia, a 24-year-old from Cincinnati who works in accounting, was roaming the convention center here where Berkshire Hathaway’s annual meeting was taking place Saturday afternoon. She couldn’t have been more excited to hear from Warren E. Buffett, the company’s chief executive, and his partner, Charlie Munger, as well as to see the parade of boldface names that made the pilgrimage.OMAHA — Priyanka Bodalia, a 24-year-old from Cincinnati who works in accounting, was roaming the convention center here where Berkshire Hathaway’s annual meeting was taking place Saturday afternoon. She couldn’t have been more excited to hear from Warren E. Buffett, the company’s chief executive, and his partner, Charlie Munger, as well as to see the parade of boldface names that made the pilgrimage.
“All my friends are jealous that I’m here,” she said, beaming, as she stood with her father near the Dairy Queen booth. “I took a snap of Bill Gates and they were, like, ‘Are you kidding me? You’re in the same room as Bill Gates!’”“All my friends are jealous that I’m here,” she said, beaming, as she stood with her father near the Dairy Queen booth. “I took a snap of Bill Gates and they were, like, ‘Are you kidding me? You’re in the same room as Bill Gates!’”
Ms. Bodalia was hardly the exception among the 40,000 shareholders who had traveled here for what has become known as the Woodstock for Capitalists, an unabashed celebration of business, investing, innovation and entrepreneurship.Ms. Bodalia was hardly the exception among the 40,000 shareholders who had traveled here for what has become known as the Woodstock for Capitalists, an unabashed celebration of business, investing, innovation and entrepreneurship.
But she may be, increasingly, an exception among her generation. A poll released last week by the Harvard Institute of Politics found that among 18-to-29-year-olds, only 19 percent identified themselves as “capitalists,” and only 42 percent said they “supported” capitalism. The number was slightly higher for those in the next age group, 34 to 49 years old, with 31 percent identifying as capitalists and 50 percent saying they supported capitalism.But she may be, increasingly, an exception among her generation. A poll released last week by the Harvard Institute of Politics found that among 18-to-29-year-olds, only 19 percent identified themselves as “capitalists,” and only 42 percent said they “supported” capitalism. The number was slightly higher for those in the next age group, 34 to 49 years old, with 31 percent identifying as capitalists and 50 percent saying they supported capitalism.
In Nebraska, where Bernie Sanders beat Hillary Clinton by a wide margin in the Democratic caucuses, the juxtaposition between this weekend-long tribute to capitalism and the skepticism expressed by a generation that questions the very premise of the system, was stark.In Nebraska, where Bernie Sanders beat Hillary Clinton by a wide margin in the Democratic caucuses, the juxtaposition between this weekend-long tribute to capitalism and the skepticism expressed by a generation that questions the very premise of the system, was stark.
It is an issue that Mr. Buffett said he was well aware of. “You should be questioning it at that age,” he said in an interview. Mr. Buffett, perhaps surprisingly, spoke positively about Mr. Sanders — who rails against income inequality and the corrupting influence of money, and he praised him for being “direct” and “authentic.” But Mr. Buffett, a Hillary Clinton supporter, said Mr. Sanders’s solutions “are very off base.”It is an issue that Mr. Buffett said he was well aware of. “You should be questioning it at that age,” he said in an interview. Mr. Buffett, perhaps surprisingly, spoke positively about Mr. Sanders — who rails against income inequality and the corrupting influence of money, and he praised him for being “direct” and “authentic.” But Mr. Buffett, a Hillary Clinton supporter, said Mr. Sanders’s solutions “are very off base.”
“We have a system that has built abundance,” Mr. Buffett said, and yet he acknowledged that “it left too many people behind.” His answer for the next generation: “The conclusion shouldn’t be to kill the golden goose,” he said. Instead, he said we “need to make more eggs” and “distribute them better.”“We have a system that has built abundance,” Mr. Buffett said, and yet he acknowledged that “it left too many people behind.” His answer for the next generation: “The conclusion shouldn’t be to kill the golden goose,” he said. Instead, he said we “need to make more eggs” and “distribute them better.”
That is a message that should translate broadly, but it is not often articulated or championed effectively by the business community.That is a message that should translate broadly, but it is not often articulated or championed effectively by the business community.
Ms. Bodalia said that some of her friends — most likely the ones who were unimpressed that she had seen Mr. Gates, and who might have been captured by Harvard’s poll numbers — would benefit from a visit to Omaha. Indeed, underneath all the talk about investing, mostly to a wealthy, older crowd, was a more profound message about the businesses that power much of the economy and spur employment. It’s a message that perhaps could use a wider audience.Ms. Bodalia said that some of her friends — most likely the ones who were unimpressed that she had seen Mr. Gates, and who might have been captured by Harvard’s poll numbers — would benefit from a visit to Omaha. Indeed, underneath all the talk about investing, mostly to a wealthy, older crowd, was a more profound message about the businesses that power much of the economy and spur employment. It’s a message that perhaps could use a wider audience.
While Mr. Buffett and Mr. Munger mostly sidestepped questions about politics over the weekend (I was one of three journalists who posed questions to them, along with three analysts and some shareholders), they have long communicated a philosophy of about creating a fairer, better version of capitalism.While Mr. Buffett and Mr. Munger mostly sidestepped questions about politics over the weekend (I was one of three journalists who posed questions to them, along with three analysts and some shareholders), they have long communicated a philosophy of about creating a fairer, better version of capitalism.
“Financiers are among those who do receive undeserved wealth and have caused envy,” Mr. Munger said just two months ago at the Daily Journal annual meeting, a corporate gathering in Los Angeles. “We don’t want a lot of undeserved wealth for doing nothing or acting counterproductively. Fixing undeserved wealth would be extraordinary.”“Financiers are among those who do receive undeserved wealth and have caused envy,” Mr. Munger said just two months ago at the Daily Journal annual meeting, a corporate gathering in Los Angeles. “We don’t want a lot of undeserved wealth for doing nothing or acting counterproductively. Fixing undeserved wealth would be extraordinary.”
Still, Mr. Munger, who unlike Mr. Buffett leans conservative, suggested that socialism could lead to much worse results. “People passionate about egality gave us the Soviet Union and all those murders, and Communist China and the starvation, and lovely North Korea. I am suspicious of all this passion that brings about such bad examples.”Still, Mr. Munger, who unlike Mr. Buffett leans conservative, suggested that socialism could lead to much worse results. “People passionate about egality gave us the Soviet Union and all those murders, and Communist China and the starvation, and lovely North Korea. I am suspicious of all this passion that brings about such bad examples.”
He added, “Inequality is the natural outcome of a successful, advancing civilization. What the hell is the guy at the top 1 percent to do? Is he the main problem? When you get rich, you finally realize how little power the rich really have — they will spend a lot and get practically nowhere.”He added, “Inequality is the natural outcome of a successful, advancing civilization. What the hell is the guy at the top 1 percent to do? Is he the main problem? When you get rich, you finally realize how little power the rich really have — they will spend a lot and get practically nowhere.”
That economic worldview runs counter to the one Mr. Sanders has traded on so successfully this primary season, the one so many young people seem to believe.That economic worldview runs counter to the one Mr. Sanders has traded on so successfully this primary season, the one so many young people seem to believe.
As for Mr. Buffett, he has mostly managed to avoid becoming a political target, in part because he is often described as a compassionate capitalist. He regularly criticizes Wall Street rent-seekers, supports raising taxes on the rich and promotes the earned-income tax credit, for example. And yet his critics say his folksy image is for show, citing his stakes in Goldman Sachs and Wells Fargo and his partnership with 3G Capital, a firm known for running an extremely lean organization. They also cite the wealth he has tied up in Berkshire, which itself is run to limit his tax bill, and his plans to give it all away to charity, so Uncle Sam won’t be getting much.As for Mr. Buffett, he has mostly managed to avoid becoming a political target, in part because he is often described as a compassionate capitalist. He regularly criticizes Wall Street rent-seekers, supports raising taxes on the rich and promotes the earned-income tax credit, for example. And yet his critics say his folksy image is for show, citing his stakes in Goldman Sachs and Wells Fargo and his partnership with 3G Capital, a firm known for running an extremely lean organization. They also cite the wealth he has tied up in Berkshire, which itself is run to limit his tax bill, and his plans to give it all away to charity, so Uncle Sam won’t be getting much.
I’m not so sure all those positions are at odds. But for a new generation entering the workplace that has reasonable questions about whether the current system gives them enough opportunity, studying the ideas of Mr. Buffett could at least provide another perspective.I’m not so sure all those positions are at odds. But for a new generation entering the workplace that has reasonable questions about whether the current system gives them enough opportunity, studying the ideas of Mr. Buffett could at least provide another perspective.
“Twenty years from now, there’ll be far more output per capita in the United States in real terms than there is now,” Mr. Buffett said. “In 50 years, it’ll be far more. No presidential candidate or president is going to end that. They can shape it in ways that are good or bad, but they can’t end it.”“Twenty years from now, there’ll be far more output per capita in the United States in real terms than there is now,” Mr. Buffett said. “In 50 years, it’ll be far more. No presidential candidate or president is going to end that. They can shape it in ways that are good or bad, but they can’t end it.”