1996: What happens if the class B share offering needs to be upsized?

AUDIENCE MEMBER: Paula Finster (PH) from Tulsa, Oklahoma. Very glad to be here. I’m one of those few second generation, finally finagled a ticket out of my dad. (Clears throat)

Three years ago —

WARREN BUFFETT: Her dad has a soda fountain, incidentally. If you’re ever in Tulsa, be sure to see him. (Laughter)

AUDIENCE MEMBER: He certainly does. And you’re certainly invited to come back. (Laughter)

I was here three years ago for the movie theater. And considering the growth — I know you won’t leave your beloved Omaha — but maybe you could build a stadium with — that’s covered — (laughter) — considering the growth — (Buffett laughs) — with adequate parking. (Laughter)

Here’s my question. You said there’s going to be unlimited offering, as much as they want. This question is not designed to get a rise out of Mr. Munger, however —

WARREN BUFFETT: That’s not easy to do. (Laughter)

AUDIENCE MEMBER: Understood, considering the bridge game of yesterday.

Anyway, my question is, you’re authorizing up to 1 percent. What happens if it goes bananas, as zone 5 suggested, and it goes greater?

You said this 1 percent is yours. Is the next 1 percent yours? Is the next 1 percent ours? Do — I know we are limited partners. And you’re a controlling partner. But how far does this ballgame go?

WARREN BUFFETT: Well, in terms of the size of the offering, it — whatever the size of the offering, it affects everybody economically the same. I mean, our shares are no different than the ones than the people in this room.

So, we do not care, from an economic standpoint, whether the issue turns out to be approximately 1 percent or whether it was 1 1/2 or 3/4 of 1 percent.

It simply — as long as we’re not selling the stock below its true value, we are not going to be hurt by it. So, that —it’s inconsequential to us. We’re not going to be helped in any significant way by a large sale.

The — it would appear, to me —we’re just a few days away from the offering, and it’s been out there awhile.

So, I would doubt if there’s huge changes. But I don’t know the answer to that. I mean, that could depend on what happens in the general stock market.

But I don’t think you’ll see any huge change in the offering. If there were a big change, we, obviously, would very promptly let the SEC know. The SEC has wanted us, as we have seen changes in demand as we’ve gone along, promptly change the size of the offering. And the covering page gets modified.

And we’ve done that. Every day as indications come along, we’ve tried to be responsive to their instructions on that. And the 350,000 shares is our best estimate, as of last Friday, and —

We’ll look at it the next day or two. But I don’t think it’s going to change dramatically. I don’t know, though. I don’t want to — I’m giving you a definitive answer on that. But it’s just my — it’s a strong impression. Thank you.