1998: Will Berkshire's computer systems have a problem processing the year 2000?
AUDIENCE MEMBER: Yes, my name is Patty Buffett and I’m from Albuquerque, New Mexico.
WARREN BUFFETT: I like your name. (Laughter)
AUDIENCE MEMBER: Thanks.
In your opinion, what effect will the year 2000 compliant issue have on the U.S. stock market and the global economy?
WARREN BUFFETT: Well, I get different reports on 2000, but the main report I hear — I think, you know, we — you wouldn’t want to rely on me on this, but you could rely on our managers. And I think we’re in good shape.
It’s costing us some money but not huge amounts of money to be prepared for 2000.
With companies in which I’m a director, you know, I hear some reasonably good-sized numbers. Those numbers are in their annual reports and described as to the cost of compliance.
But what I’m told by people that know a lot more than I do, is that they think probably that the weakest link may be in governmental units. They seem to think that in terms of where they stand versus the commercial sector, in terms of reaching where they need to be by 2000, that there’s some areas of both national and state and local governments, and foreign government, where they’re really behind the curve.
Now, that is not an independent judgment of mine. But somebody said, “You want to be very careful about making a phone call at five seconds before midnight at the millennium because you may get charged for 100 years,” you know. (Laughter)
So it’ll be interesting.
I don’t think it’s going to affect Berkshire in any material way, and I certainly have a feeling that the world will get past it very easily. But it is turning — it is expensive for some companies, and it’s going to be very expensive for governments.
Charlie?
CHARLIE MUNGER: Yeah, I find it interesting that it is such a problem. You know, it was predictable that the year 2000 would come.
WARREN BUFFETT: Yeah. (Laughter and applause)
Yeah. Yeah, we decided that back in 1985, actually. (Laughter)
We didn’t welcome it, understand. That’s not Berkshire’s style, though. (Laughs)
It is fascinating, isn’t it, when you think about it, that a whole bunch of people with 160 IQs that could build up such a problem, but here we are. And — (laughter) — that’s why we stick with simple things. (Laughter)