We're coming to you live from the 2014 Berkshire Hathaway (NYSE: BRK-B ) (NYSE: BRK-A ) annual shareholder meeting in Omaha, Nebraska. We are transcribing the famous Buffett and Munger Q&A and live chatting with Fools around the globe! Click HERE to access this free live chat!
Warren Buffett and his long-time investment partner Charlie Munger are settling into their seats to begin their famous day-long Q&A session with Berkshire shareholders. Here are three things investors should be listening for:
1. Warren's thoughts on the Heinz acquisition
In early 2013, Buffett teamed up with private equity firm 3G Capital to acquire Heinz. In a unique deal, Berkshire took a 50% equity stake and purchased a $8 billion preferred stake that pays Berkshire a 9% coupon.
3G Capital is handling the overhaul of the operations at Heinz, and Buffett's comments in his letter to shareholders said the early results were "encouraging." That's hardly descriptive. As Berkshire grows larger, there are fewer acquisitions that can significantly move the overall needle, but if Buffett and Munger speak glowingly about the deal's structure, we could see Berkshire use this as template to going forward.
2. Todd and Ted's process
Warren and Charlie aren't the only stock-pickers at Berkshire Hathaway. Todd Combs and Ted Weschler each run stock portfolios that exceed $7 billion. $14 billion is nothing to sneeze at, but Todd and Ted aren't even close to managing a majority of Berkshire's equity portfolio... yet. Someday these two will take the reins. Shareholders should listen up to hear more about each's investment process and how it may differ from Buffett's.
3. Where do Buffett and Munger see risk?
5 years ago, it seems everything and anything spooked the market and caused investors to rush towards the exits. Fast forward to today and most investors can only see things in the best of light. Crisis in Ukraine? Shrug.
But as every investor knows, there is always risk lurking -- most people don't see it until it's too late (that's what makes it a risk). Warren and Charlie don't have a perfect track record spotting big risks, but if you're going to listen to anybody about potential dangers, it should probably be them.
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