Oracle Chronicle

The day finally arrived for me and my Applied Portfolio Management classmates this week. We were off to Nebraska to meet with the Oracle of Omaha himself, the CEO of Berkshire Hathaway Inc., the world's greatest investor, Warren E. Buffett. This is truly is one of the most interesting personalities of our time. Here's a man worth in excess of $40 Billion dollars who's still at work well into his 70's, lives in an ordinary Midwest home, drives a Lincoln and spends his time playing bridge and enjoying his family.

On the first day of our two-day trip we toured two of Berkshire Hathaway's businesses, Borshiem's Jewelers and the Nebraska Furniture Mart. The managers who ran these firms were of one mind in their reverence of Mr. Buffett and his ethical approach to doing business. As Susan Jaques of Borsheim's told us, "It takes 37 years to build your reputation, and you can lose it in 37 seconds." She said she considers this every time she faces an important decision. It was interesting to note that Mr. Buffett is not a micromanager, he picks good businesses with great management, buys them at low prices and then takes his hands off the wheel and lets his managers do their jobs.

The next day our meeting with Mr. Buffet consisted of a 90 minute question and answer session and an informal lunch with him afterwards. He delivered his Q & A with wit and wisdom and humility. From the perspective of an academic, it is quite possible to take issue with a lot of what Mr. Buffett stands for. A certain Rotman prof even regards him as nothing more than a fluke, a 5-sigma event, literally the luckiest investor that ever lived. My feeling is that this prof is clinging to the Efficient Market Hypothesis like Ashlee Simpson to her singing career. But Mr. Buffett, in turn, doesn't especially care for academics either, having little in the way of formal education himself. The point is that he gave us a different perspective on the things we were taught here at B-School. Maybe markets aren't efficient, maybe diversification isn't always the way to go. Don't always believe everything you're told.

All in all, I can't possibly think of a better way of finishing off my Rotman MBA experience. This was truly an unforgettable once in a lifetime opportunity. Thanks once again to John Watson for picking up the tab on this round.

Here's a shot from our lunch with Mr. Buffett at Gorat's Steak House:

I can't tell you exactly what Mr. Buffett said, but what he recounted to me that day over roast beef sandwiches was more than just a stock tip. It was no less than his own personal super-secret recipe for Kwan. Rod Tidwell once defined Kwan as "Love, respect, community.... and the dollars too. The package. The Kwan."

Well, Warren Buffett, you are my ambassador of Kwan, man.