1996: Does Buffett respond to individual letters?

AUDIENCE MEMBER: Mr. Buffett, I’m indebted to Walter Schloss for introducing me to you some 40 years ago. And finally in the early ’80s, I became a stockholder.

My question is, now that you’ve expanded headquarters 9 percent from 11 people to 12 people — (laughter) — do you now more frequently answer letters from stockholders?

As a specific, had you looked at my letter from January 1986? (Laughter)

WARREN BUFFETT: We haven’t gotten to January yet. (Laughter)

AUDIENCE MEMBER: Relating to Cap Cities/ABC and talk radio, the problem that occurred last month at cape — Cap Cities might have been prevented.

WARREN BUFFETT: You should get a form letter from us. But the — we do not — A, we do not get into the activities of our investee companies.

I mean, it — if people are unhappy about Coca-Cola or Gillette, and they shouldn’t be — (laughs) — but if they happen to be, they should talk to the companies themselves. I don’t interject myself into the management or operations of the investee companies.

In terms of questions about Berkshire — I put in the annual report a few years back — just running Berkshire takes up a fair amount of time, in terms of keeping track of a lot of businesses.

And it doesn’t need to take up as much time as it does with me. But I enjoy it. But the — I feel that the annual report, the annual meeting, are the time to take up everything on shareholder’s minds. And so, I don’t answer one-on-one questions.

I get all kinds of letters. They want career guidance. They want advice on their business. I mean, there’s a million letters that come in.

And it would really be — it would take a significant amount of time, that otherwise would be spent on Berkshire, to reply to that sort of thing. I may note them, in terms of what I address in subsequent annual reports.

But the annual meeting and the annual report, I feel, are the best ways to communicate with shareholders. And I really don’t do it the rest of the year, although you will get some form reply or you should get some form reply on it.

AUDIENCE MEMBER: Thank you.

WARREN BUFFETT: Thanks. It’s noon now. And I’d like to give everybody a chance to visit our other stores and everything. But we will be back here at 12:15.