Berkshire Hathaway 2003 Annual Report Download - page 23

22
of our subsidiaries. That did not concern us. We refused all requests to limit the right of our owners to
make whatever gifts they chose (as long as the recipients had 501(c)(3) status).
In 2003, however, many independent associates of The Pampered Chef began to feel the boycotts.
This development meant that people who trusted us – but who were neither employees of ours nor had a
voice in Berkshire decision-making – suffered serious losses of income.
For our shareholders, there was some modest tax efficiency in Berkshire doing the giving rather
than their making their gifts directly. Additionally, the program was consistent with our “partnership”
approach, the first principle set forth in our Owner’ s Manual. But these advantages paled when they were
measured against damage done loyal associates who had with great personal effort built businesses of their
own. Indeed, Charlie and I see nothing charitable in harming decent, hard-working people just so we and
other shareholders can gain some minor tax efficiencies.
Berkshire now makes no contributions at the parent company level. Our various subsidiaries
follow philanthropic policies consistent with their practices prior to their acquisition by Berkshire, except
that any personal contributions that former owners had earlier made from their corporate pocketbook are
now funded by them personally.
The Annual Meeting
Last year, I asked you to vote as to whether you wished our annual meeting to be held on Saturday
or Monday. I was hoping for Monday. Saturday won by 2 to 1. It will be a while before shareholder
democracy resurfaces at Berkshire.
But you have spoken, and we will hold this year’ s annual meeting on Saturday, May 1 at the new
Qwest Center in downtown Omaha. The Qwest offers us 194,000 square feet for exhibition by our
subsidiaries (up from 65,000 square feet last year) and much more seating capacity as well. The Qwest’ s
doors will open at 7 a.m., the movie will begin at 8:30, and the meeting itself will commence at 9:30.
There will be a short break at noon for food. (Sandwiches will be available at the Qwest’ s concession
stands.) That interlude aside, Charlie and I will answer questions until 3:30. We will tell you everything
we know . . . and, at least in my case, more.
An attachment to the proxy material that is enclosed with this report explains how you can obtain
the credential you will need for admission to the meeting and other events. As for plane, hotel and car
reservations, we have again signed up American Express (800-799-6634) to give you special help. They do
a terrific job for us each year, and I thank them for it.
In our usual fashion, we will run vans from the larger hotels to the meeting. Afterwards, the vans
will make trips back to the hotels and to Nebraska Furniture Mart, Borsheim’ s and the airport. Even so,
you are likely to find a car useful.
Our exhibition of Berkshire goods and services will blow you away this year. On the floor, for
example, will be a 1,600 square foot Clayton home (featuring Acme brick, Shaw carpet, Johns-Manville
insulation, MiTek fasteners, Carefree awnings, and outfitted with NFM furniture). You’ ll find it a far cry
from the mobile-home stereotype of a few decades ago.
GEICO will have a booth staffed by a number of its top counselors from around the country, all of
them ready to supply you with auto insurance quotes. In most cases, GEICO will be able to give you a
special shareholder discount (usually 8%). This special offer is permitted by 41 of the 49 jurisdictions in
which we operate. Bring the details of your existing insurance and check out whether we can save you
money.
On Saturday, at the Omaha airport, we will have the usual array of aircraft from NetJets®
available for your inspection. Stop by the NetJets booth at the Qwest to learn about viewing these planes.
If you buy what we consider an appropriate number of items during the weekend, you may well need your
own plane to take them home.