Live Blog: Berkshire Hathaway's 2013 Shareholder Meeting OMAHA - Greetings from the CenturyLink Center, where Berkshire Hathaway will host its annual shareholder meeting. Tens of thousands of investors have arrived, and they're again expected to pack the arena to listen to what Warren E. Buffett has to say about the state of his conglomerate, the economy and whatever else crosses his mind. Once again, he's unlikely to identify his successor, though someone will almost certainly ask. One change this year is the presence of a handpicked "credentialed bear," the hedge fund manager Douglas A. Kass, whom Mr. Buffett selected specifically to ask tough questions. It's the latest attempt by the Berkshire chief to shake up the annual meeting's format and address more substantive issues. Auto-Refresh: ONTurn ONRefresh NowFeedTwitter4:53 P.M. And We're Done The meeting has ended, with interesting questions but nothing new on important topics like succession. Thanks for following along! 4:32 P.M. The Boring Part of the Meeting After what was decidedly less than five minutes, Mr. Buffett moves into the scripted part of the meeting: the actual corporate governance portion. Only a fraction of shareholders are actually in their seats, as Mr. Buffett runs through matters like the election of directors. Generally little happens, other than a smattering of shareholder proposals on issues like climate change. 4:25 P.M. Climate Change and Carbon Trading While there's a five-minute break, we'd like to catch up on an interesting exchange earlier in the Q.&A. Andrew asked a shareholder question about climate change, carbon trading and how both affect Berkshire. Mr. Buffett began his answer with cracks about the warmer weather of recent years - despite the chilly Omaha rain falling outside - and how Mr. Munger knows more about science than he does, "which isn't saying a lot." That said, while Mr. Buffett appears to believe that climate change is real, he said that it's a difficult thing for Berkshire's insurance operations to account for. Mr. Munger then added that he doesn't think much about carbon-trading schemes, calling them impractical. What actually seemed to work: the high taxes that European governments have levied on motor fuel. "I think they've stumbled into the right policy," he said. I think the United States should have way higher taxes on motor fuel. 4:22 P.M. The Buffett Estate Planning Rulebook A shareholder and estate planning expert takes the mic. He says that many of his clients want to follow Mr. Buffett's plan to leave his children a significant sum of money, but donate most of his enormous wealth to charity. "The idea is leave enough to do anything, but not enough to do nothing," the investor says. How much is that? The audience laughs. Mr. Buffett responds that children's behavior is often more dictated by how their parents act rather than how big their inheritance is. Mr. Munger demurs on answering the question, saying it's a bad idea to discuss one's will with one's children - if they will be treated unequally. 4:08 P.M. The Perils of Social Media, Redux Mr. Buffett says he wouldn't make a good social media manager for Berkshire. Mr. Munger hates the idea of a system where the teens in his family can preserve their dumb comments for all eternity. Continue on. 4:04 P.M. Munger's Sharp Words About Greece3:56 P.M. Buffett's "Unpaid Chief of Staff" Speaks During the Berkshire meeting's introductory movie, Mr. Buffett called upon a heretofore unknown aide to crack some heads and get some work done, specifically getting his agent to get him a role in the next "Terminator" movie. That was Devon Spurgeon, a former reporter turned public relations specialist who was billed in the movie as his "unpaid chief of staff." (That's a wry reference to a joke card she has handed out from time to time. The telephone number: "You don't call me. I call you.") What did Ms. Spurgeon have to say about her first Berkshire movie role, as Mr. Buffett's personal terminator? "I destroyed him," she told DealBook, speaking of the agent. My powers of domination know no bounds. 3:46 P.M. Buffett Still Likes I.B.M. A shareholder asks if Mr. Buffett is still confident in Berkshire's stake in I.B.M. Does the tech giant have enough of a "moat," or defensive protections against competition? Mr. Buffett, who surprised people when he first unveiled the stake two years ago, conceded that he doesn't understand I.B.M."s moat as well as he does, say, Coca-Cola's. But he added: "I think the odds are good that their position will be strong over time." He told CNBC on Friday that he "won't be a seller," but isn't hasn't bought more I.B.M. shares following the company's recent earnings miss. That said, he professed some concern about how I.B.M. essentially was a big annuity company on the side, owing to its big pension obligations. 3:33 P.M. Questioning the Credentials of Mr. Buffett's Son Mr. Kass is up, and he asks a tough question: what makes Mr. Buffett's son, Howard, qualified to be Berkshire's next nonexecutive chairman? Howard Buffett hasn't run a business and doesn't have significant investing experience. For what it's worth, the Berkshire bear notes that his own son is in the audience. Other than accident of birth, how is he qualified? Mr. Kass asks. Mr. Buffett replies that his son won't be running Berkshire; he's meant to safeguard the company's culture. If a chief executive doesn't work out, having a chairman who cares deeply about the conglomerate's culture will make fixing the problem much easier. 3:30 P.M. Dodging the Succession Question Again Andrew asks about Ajit Jain, the highly praised head of Berkshire's reinsurance operations, and asks a) if the executive will take over for Mr. Buffett as chief executive and b) what will happen to those businesses if he leaves. Mr. Buffett dodges the first question, obviously. And both he and Mr. Munger professed hope that Mr. Jain will stay as long as possible. 3:24 P.M. A Thinly Disguised Pitch? A shareholder asks how a budding investor in his 20s can convince people to invest in his partnership when he doesn't have much of a track record. "Well, you haven't sold me," Mr. Buffett quips. More seriously, he encourages young people to start building track records as early as possible. In picking Mr. Weschler and Mr. Combs, he says, "we looked for a record we could both believe and understand." 3:17 P.M. Trying to Beat the Index A shareholders asks if buying shares in the 20 best companies in the United States would be better than investing in an index fund. Mr. Buffett replies that the results would probably be similar. Then he launches into a bigger point: there are professional investors, and then there are amateurs who invest. Being the former requires a lot of work and research, which many, many amateurs don't have the time or inclination to do. The main problem for most people, he says, is "trying to behave like a professional when you aren't spending the time in the game needed to be a professional." 3:04 P.M. Buffett on Politics A fiery partisan question, part of which complained about the trillions of dollars in debt incurred under the Obama administration, draws an even-keeled response from Mr. Buffett. Part of that reply involves a jab at the Bush administration, which Mr. Buffett says also racked up debt. And the Berkshire chief says that he is glad the response to the economic downturn hasn't been austerity, which would have hindered any sort of recovery. Mr. Munger, who's more conservative than his friend, nonetheless agrees. But Mr. Buffett does praise the prior president, pointing out in particular 10 words of wisdom from the financial crisis: "if money doesn't loosen up, this sucker could go down." And the response to the financial crisis involved good work from leaders of both parties, which helped avoid more pain than the country otherwise has suffered. So while the national debt remains troublingly high, Mr. Buffett says, "this isn't the country's toughest hour by a large margin." 3:00 P.M. Kass Issues a Challenge It's Mr. Kass" turn, and he comes up with a query that he concedes is part pitch. While Mr. Buffett is no fan of short-selling, or actively betting against stocks in the hopes that they will sink in price, the practice has proved useful. In fact, Mr. Kass contends, it has proved so successful that even Mr. Combs had done well as an investor. To which Mr. Munger responded, "He had so much success that he stopped doing it," getting big laughs from the audience. Undeterred, the Berkshire bear persisted: Would Mr. Buffett then consider investing $100 million in a managed account at Mr. Kass" firm, with the earned proceeds going toward charity? Mr. Munger curtly says "No," before Mr. Buffett elaborates than in Berkshire's early days, the company tried its hand at short-selling. The end of the discussion showed the two Berkshire buddies of same mind: Mr. Munger: We don't like trading agony for money Mr. Buffett: But we wish you well! 2:46 P.M. A Big Move for Munger? No, Thanks A shareholder asks Mr. Munger, who lives in the Los Angeles area, if he'd ever consider moving back to his hometown of Omaha. In his usual fashion, Mr. Munger is brief in his reply: "No." Mr. Buffett adds that their current partnership works. "While we're somewhat technophobic, we've learned how to use the phone," he cracks, getting a number of laughs. 2:39 P.M. Berkshire Stays Grounded, When It Comes to Airlines Ms. Quick of CNBC passes along a question from Bill Miller, the famous portfolio manager at Legg Mason. Are the improved economics of the airline industry likely to stay, and would Berkshire ever consider adding another airline to its fleet, supplementing NetJets? The second part is easy to answer for Mr. Buffett: "No." The first part gets a bit more explanation. The airline industry has this situation where they have very, very low incremental costs with enormous fixed costs. And the temptation to sell that last seat at a very low price is very high. It's a labor-intensive, capital-intensive, largely commodity-type business. It's been a death trap for investors ever since Orville took off. 2:38 P.M. A Literary Note If you ask Mr. Buffett what his 10 favorite books are, he'll spend most of the time praising Ben Graham, his longtime hero and investing model. And then won't really list any other books. 2:28 P.M. A Question About Underwear Yes, really. Mr. Brandt asks a question about underwear - luckily not, as Mr. Buffett quipped, "boxers or briefs?" - and specifically about Fruit of the Loom. With rising competition, how does Berkshire's company protect its market share? Here's what Mr. Buffett had to say: Keep your costs down and constantly work on brand-building Make sure your main customers in turn have their customers happy with the product 2:13 P.M. "The Passion Is Not Gone, I Promise You" We're back from lunch, and Mr. Kass leads off with a question about whether Mr. Buffett's intensity has waned over the years. He specifically cites the weeks of work that Berkshire put into research American Express at the time of its first investment, versus the quick decision-making that went into its move into Bank of America. Mr. Buffett famously hit upon the latter idea while in the bathtub. Are you at the point now where the game interests you more than the score? Mr. Buffett responds that he still finds running Berkshire the most interesting thing he could possibly do. "I have every bit of the intensity, though it's not manifested in the same way," he says. I love thinking about Berkshire, about its investments, about its businesses. It's a part of me. Mr. Munger interjects that Berkshire needed to do an enormous amount of analysis for its first investment in American Express, since the company was unfamiliar at the time. When it made a subsequent investment, Mr. Buffett had already amassed a wealth of knowledge. "It was all cumulative," Mr. Munger said. Responding to a later question, Mr. Buffett comes back to the Bank of America decision. "The bathtub wasn't the most important part," he jokes. 1:13 P.M. Lunchtime The shareholders in the CenturyLink Center have dispersed for lunch, and so too will DealBook. Back around 1 p.m. 1:07 P.M. Buffett Gloats in Bet Against Hedge Funds In case you're keeping score, Mr. Buffett's ahead in a bet with hedge funds over the performance of the S.&P. 500 versus a fund of funds. It's five years into a 10-year bet, with $1 million for charity at stake. 1:06 P.M. Dodd-Frank's Limited Impact on Berkshire Andrew is up with a question about the Dodd-Frank banking rules that may impinge on bank profitability. What will that mean for Berkshire's investments in firms like Wells Fargo? Mr. Buffett - who first razzes Andrew for prefacing the question by asking if Berkshire is "too big to fail" - says that the bank investments will still generate a decent return, if lower than in previous years. Returns on tangible equity certainly will go down. But the types of firms that Berkshire has invested in, including US Bancorp and M&T Bank, are pursuing sound policies that makes them less likely to be affected. Mr. Buffett adds that he believes banks will not be behind capitalism's next bubble. Mr. Munger isn't so sure: I do not see why massive derivative books should be mixed up with insured deposits. That skeptical line draws applause from the crowd. 12:48 P.M. Warren and Women Susan Tilson, who identifies herself as a Berkshire shareholder (and is married to hedge fund manager and Buffett devotee Whitney Tilson) asks Mr. Buffett about opportunities for women. Mr. Buffett, who recently penned an essay on the topic for Fortune, says that while a lot has improved for women, much more progress needs to be made. He has said that he is a fan of "Lean In," the recent treatise by Facebook president Sheryl Sandberg. "They're crumbling to a very significant degree, and they should," Mr. Buffett says of the obstacles facing women's advancement. "The country has come a long way," he adds. It continues to move in the right direction, but I hope it continues to move faster. 12:44 P.M. Rising Competitive Pressure in Insurance Mr. Gallant of Nomura asks Mr. Buffett about increased competition in the insurance field, especially reinsurance. Mr. Buffett replies that the entrance of hedge funds into the field has been impressive. Behind the move, he said, was the ability of these investment firms to cut costs by selling off some of the risk to investors. "Anything wall street can sell, it will sell," he says. That said, Berkshire will hold fast to what it believes are appropriate prices for its products. It will not bow to pressure to do "dumb things." 12:32 P.M. The Benefits of Where and When Someone's Born In response to a shareholder's question, Mr. Buffett acknowledges that he benefited from being born in the United States in the early 20th century. In fact, he spends a little bit of time talking about his conception, which isn't at all weird. But the fundamental point is that even as Mr. Buffett has done well by being born when and where he was, future generations will do even better, with more opportunities becoming more available. 12:20 P.M. Should Berkshire Be Broken Up? Mr. Kass, the Berkshire bear, prefaces his next question by saying, "When you are gone, and we hope that's not for a long time ..." to which Mr. Buffett quickly quips, "No one more than I." Now, Mr. Kass" question. Should Berkshire, which may very well become more centralized under Mr. Buffett's successor, consider a break-up at some point to reduce an unwieldy complexity? Mr. Buffett begins by saying that there will likely be very little change to how Berkshire is currently run, including its decentralized system. The conglomerate is actually easy to oversee now, since its managers are good and the overall cash being generated helps the parent company as a whole. 12:14 P.M. Buffett's Newspaper Deals Andrew asks a question about Berkshire's newspaper buying spree. Why buy into an industry that's dying, in what seems like a money-losing proposition? Mr. Buffett insists that the papers Berkshire has purchased will generate "a decent rate of return." Key to that, he says, is that pays a low price and anticipates earnings to decline over time. Investment bankers pitching newspaper deals, on the other hand, constantly project that such companies will see a lift in profits. He concedes that the industry is a rare break from Berkshire's deal-making playbook. Mr. Munger helpfully summarizes his partner's position this way: "It's an exception, and you like doing it." 12:08 P.M. A Fixation on Progressive's Snapshot Offering Clifford Galant of Nomura asks the meeting's latest question about Progressive's "Snapshot" product, which tracks how drivers behave to help determine rates. It's something that Geico won't follow. Mr. Buffett again defends his subsidiary's practice, calling the company the best in the business. "If I were starting in the direct-auto insurance business, I'd copy Geico," he says. It wouldn't work, but it's a good start. 12:05 P.M. More on Weschler and Combs12:01 P.M. Supervising Berkshire's Investment Chiefs Ms. Quick passes along a question about his two investment management chiefs, Ted Weschler and Todd Combs. Mr. Buffett says that he doesn't supervise them particularly heavily, giving them free reign to make their own decisions. The only restrictions they truly face are of the technical variety; for instance, American Express, in which Berkshire already owns a 13.8 percent stake, is off limits because of federal bank holding rules. 11:58 A.M. Question Casts Spotlight on Burlington Northern A shareholder question about Burlington Northern's moves into transporting oil products provides an opening for the railroad chief to speak directly. The executive, Matthew Rose, details how his company is setting up positions in oil-rich drilling locations like the Bakken shale formation. Burlington Northern is in negotiations to add about 30 stations in the region, he says. 11:52 A.M. Defining Berkshire Ms. Loomis of Fortune asks a question on behalf of a shareholder in the audience: How would you explain Berkshire and its value premise to the investor's 13-year-old daughter? Mr. Munger takes first crack as Mr. Buffett helps himself to some See's Candy fudge: "We like to stay sane while others go crazy. That's a competitive advantage. He also notes that the company tries to be a good steward to its subsidiaries and a good partner. "This was a very good idea," he says drolly. I wish we'd done it on purpose. 11:46 A.M. Berkshire and Multi-Level Marketing Andrew notes the fight between William A. Ackman, the hedge fund manager (and Berkshire shareholder) and Herbalife, the nutritional supplements company that relies on "multi-level marketing," a direct marketing tool built upon recruiting layers of sales representatives. Does that battle trouble Mr. Buffett, since Berkshire owns a so-called M.L.M. as well, the kitchen supplies company Pampered Chef? Mr. Buffett replies that the ultimate test is whether there's a market for the goods being sold. And in the case of Pampered Chef, he says, there's no question that there is. 11:45 A.M. Buffett's Halo Mr. Kass uses his next turn to ask whether Mr. Buffett's successor will be able to benefit from the Oracle of Omaha's imprimatur to strike the same sort of value-generating deals that Berkshire currently strikes. Mr. Buffett replies that the unnamed individual will certainly have a lot more money to deploy. And Berkshire will remain the refuge to which distressed companies, like Goldman Sachs and General Electric, will flock: They will call Berkshire. And Berkshire's reputation will become only more solidified for providing capital in sound deals, when other people are frozen. When it happens when I'm not around, it will become more tied to the Berkshire brand. Mr. Buffett notes that Berkshire will still have both the capital and the willingness to act decisively, a point with which Mr. Munger agrees. 11:38 A.M. Buffett on Bitcoin A shareholder asks Mr. Buffett about Bitcoin, the digital currency that was on the tip of everyone's tongues a few weeks ago. Here's what the Berkshire duo had to say: Mr. Munger: i have no comment whatsoever on Bitcoin being some kind of universal currency. Mr. Buffett: Of our $49 billion, we haven't moved anything into Bitcoin. 11:29 A.M. Buffett Backs Bernanke Mr. Buffett discusses the current state of the Federal Reserve's moves to keep lending flowing by pushing rates low. The Berkshire chief says that he backs the Fed's chairman, Ben S. Bernanke, and notes that the policy hasn't led to inflation. That might actually be a little bad for the government as a debtor, he adds. But still, interest rates will rise, and it will be a "shot heard around the world." A separate question from Ms. Quick: How does the policy affect Berkshire's companies? Mr. Buffett notes how asset prices have risen because of the abundance of cheap debt, as well as lowering the costs for a deal like the Heinz takeover. "This is like watching a good movie, as far as I'm concerned," he says, "because I don't know how it will end." He adds more soberly that both Berkshire and the country have benefited from the easy money policy. "If they can successfully pull off a reversal," he says, "we will be better off." 11:27 A.M. Berkshire's Freaky Friday Responding to a shareholder's question, Mr. Munger surprisingly takes the first crack at an answer. Mr. Buffett steals his partner's longtime line: "I have nothing to add." 11:23 A.M. A Berkshire Reorganization? Right now, Berkshire's companies operate relatively autonomously. Is that going to be different under new leadership? "My successor won't do things identically, but things won't dramatically change," Mr. Buffett says. 11:17 A.M. Corporate America and Taxes Mr. Buffett addresses the issue of American companies complaining about the corporate tax rate, noting that businesses have been improving profitability while employment of individuals has lagged. Much of that is because corporate tax rates are lower now. "It will be interesting to see whether these levels can be maintained," he says. That's going to be a subject of a lot of public discourse. Mr. Munger rebuts that other countries are lowering their tax rates, leaving American companies are at a disadvantage. He thinks individuals should pay more, while corporations less. Mr. Buffett jokes that his partner's clearly the Republican and he the Democrat. 11:10 A.M. The Berkshire Bear's Debut Now up to the plate: Seabreeze Partners Management's Douglas Kass, who reiterates that he feels honored to be "Daniel in the lion's den." He asks whether Buffett, which has grown so big that it now hunts for "elephants," not "gazelles," and that its acquisitions are pricier and less at a discount than in the past. Is Berkshire in danger of becoming more like an index fund? Mr. Buffett says that while there's no question that Berkshire won't have as much growth as it has in the past, it will still continue to generate tremendous value. Mr. Munger adds that he expects the conglomerate to outperform its forebears in the world of big business. "We think we'll do better than the giants of the past," he says. Mr. Buffett cheerily ends with a challenge to Mr. Kass: "You haven't convinced me to sell the stock, but keep trying!" 11:02 A.M. Berkshire in an Age of Social Media DealBook's own Andrew Ross Sorkin touches on a recent Buffett breakthrough: his debut on Twitter. There's a more business-oriented reason behind the query, Andrew says, since the Securities and Exchange Commission recently clarified that companies can use social media to publish information. What are the ramifications for Business Wire, the press release wire that Berkshire owns? After first joking that he's not entirely sure why he's on Twitter, Mr. Buffett more soberly discusses his concerns about the S.E.C."s initiative. He fears that the guiding principle of companies alerting all investors at the same time might be lost. "I do not want to keep heading up to their Web page and hoping I'm not 10 seconds behind everybody," he says. He adds that he has no intention of selling Business Wire. Mr. Munger drolly adds that he keeps away from Twitter "like the plague." 10:52 A.M. Breaking Down the Heinz Deal Becky Quick of CNBC relates a question from a Minnesota shareholder who asks about a recent piece about the H. J. Heinz takeover, in which the common share portion of the deal was regarded as "dead money." Mr. Buffett strongly contests the premise. He praised Berkshire's partner in the deal, 3G Capital, and in particular the Brazilian billionaire who oversees the firm, Jorge Paulo Lemann. Berkshire is essentially lending to 3G through the use of preferred shares, increasing leverage and hopefully amplifying the investment returns from the transaction. But Mr. Buffett also expects the value of Heinz to grow quickly under its new ownership. While the price was a little higher than Berkshire might have paid on its own, he adds, "It's absolutely a fair deal. i didn't have to change a word on the term sheet or the governance." "If anyone thinks that the common is dead money, I think they're making a mistake, but we'll find out in five years," Mr. Buffett says. 10:46 A.M. What Will Worry Buffett After He Leaves? A shareholder from Chicago asks, What will worry Mr. Buffett the most about the decade after he finally leaves the company? Mr. Buffett says that the key will be to preserve Berkshire's culture, as well as having a successor as chief executive who will have more passion, brains and energy than even he has. He reiterates that the board has already identified that person. "We're solidly in agreement as to whom that individual should be," he said. 10:43 A.M. Spelling Out the Benefits of IMC The first question from the analysts comes from Jonathan Brandt of Ruane, Cunniff & Goldfarb, whom Mr. Buffett says first tangled with the Oracle of Omaha over games of chess as a child years ago. Mr. Brandt asks what the advantages of IMC, which Berkshire now fully controls, has over competitors. Mr. Buffett replies, "The advantage it has is brains," before launching into an encomium of the Wertheimer family that founded the industrial parts maker. 10:38 A.M. Explaining Berkshire's Relative Underperformance The first question comes from Fortune's Ms. Loomis, who relays a query from a shareholder in Texas. Why does Mr. Buffett use book value per share, and will that figure continue to lag the Standard & Poor's 500-stock index, as it has the past several years? Mr. Buffett says that the past decade has generally been rough for business. That said, if the market continues to rally as it has this year, Berkshire will suffer its first five-year period of trailing the S.&P. 500. "It won't be a happy day, but it won't discourage us," he said. He added as a caveat that the company is likely to outperform the market in down years. Mr. Munger adds that he's not worried, professing a belief that the company will do well in the long run. 10:26 A.M. Running Through Berkshire's Latest Earnings Mr. Buffett discusses his conglomerate's earnings for the first quarter, which he described as "benign" for its core insurance businesses and great for the rest of the company's holdings. Net income for the quarter rose over 50 percent, to $4.89 billion. Operating income, which Mr. Buffett prefers to focus on, jumped 42 percent, to $3.78 billion. Over all, Berkshire's Class A shares now trade at $162,904, a new record. And Mr. Buffett proudly said that the company is now the fifth-biggest publicly traded company in the world, by market value. 10:22 A.M. Buffett Takes the Stage Mr. Buffett and Mr. Munger finally take their seats on the dais. "Whew, I'm worn out," he jokes, before thanking the people who put together the introductory movie. One of the people he thanks is Carrie Sova, the Berkshire staffer who organizes the conference. He notes that Ms. Sova is both four months pregnant and just earned her master's of business administration. 10:21 A.M. Celebrating Berkshire's Managers Surprisingly, disco balls drop down, and a modified version of "YMCA" starts pumping through the CenturyLink Center's speakers as Berkshire calls out the managers of its portfolio companies. 10:13 A.M. Buffett Breaks, Bad Berkshire takes a huge step into cultural relevancy with a skit based on "Breaking Bad," with Bryan Cranston and Aaron Paul reprising their roles as Walter White and Jesse Pinkman. Instead of cooking up meth, however, the drug-dealing duo opts to focus on peanut brittle. "What we sacrifice in profit margins," White says in his inimitable growl, "we make up for in decreased risk." That is, until a hatted Mr. Buffett shows up, proclaiming himself the competition. White first sniffs, "Are you Father Time?" before acknowledging that his new adversary is the Oracle of Omaha who can see into the future. Like a wizard? Pinkman asks earnestly. Mr. Buffett offers to buy the two out, leading to an intense stare-off with tropes familiar to "Breaking Bad" fans. A declaration of names is involved. But White and Pinkman back down and agree to sell, prompting Mr. Buffett to call Mr. Munger to notify him that a deal is done. Sitting back in his chair, Mr. Munger haughtily proclaims, "Brittle, bitches." 10:05 A.M. The Sobering Salomon Clip As has happened every year, Mr. Buffett has grounded the giddiness of the Berkshire annual meeting with a clip of his testifying before Congress about the scandal at Salomon Brothers years ago. It cuts down the levity brought on by Geico ads and sitcom clips. Mr. Buffett again warns in the clip: "Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless. 9:59 A.M. Terminating Hollywood Dreams We turn to another clip, starting with Mr. Munger reading The Wall Street Journal and then a secretary reading The New York Times. Mr. Munger picks up his phone and calls Mr. Buffett, who happens to be reading ... Variety. The Oracle of Omaha blows off questions about the Dow Jones industrial average and Apple's cash hoard, in order to pester his agent about playing the villain in the next "Terminator" movie. When the agent, Michael Kives of CAA, demurs, Mr. Buffett sends his "unpaid chief of staff," Devon Spurgeon of Hill & Knowlton, to break some heads. Sufficiently intimidated, Mr. Kives calls Arnold Schwarzenegger, who quickly deems the notion "the stupidest idea" he's ever heard. But he comes up with a better one, after watching an old clip from "The Office": calling on Mr. Munger. 9:48 A.M. A New Entrant Into the Berkshire Introduction A clip from "The King of Queens" plays, with Kevin James and Jerry Stiller arguing over a bottle of Heinz ketchup. Or is it "catsup"? Hilarity ensues. 9:42 A.M. Geico Brings the Laughs Again It's a Geico commercial, featuring an obnoxious camel loudly asking his coworkers what day it is. One finally, reluctantly concedes that it's "Hump Day." The CenturyLink Center crowd cheers. 9:39 A.M. An Appearance From Jon Stewart Well, not live. It's a rebroadcast of Mr. Buffett's appearance on "The Daily Show" last fall alongside Carol Loomis of Fortune, the Berkshire chief's longtime friend and collaborator on the company's annual letter. Among the clips selected is Mr. Buffett commenting on Washington, and how difficult it is to get things done. 9:31 A.M. Dancing With the Brands The movie has started and leads off with the animated segment. Mr. Buffett and Mr. Munger have been drafted as judges on "Dancing With the Stars." A procession of Berkshire brand representatives - the Geico gekko, Dairy Queen's queen, IMC's Eitan Wertheimer - show off their moves. Only the judges aren't impressed, instead playing Words With Friends or hula-hooping it up. An exasperated Tom Bergeron asks if the judges can do better. "We thought you'd never ask," Mr. Munger boasts, before the two break out into Psy's "Gangnam Style." The crowd at the CenturyLink arena lets loose a cheer. 9:27 A.M. The V.I.P."s Have Arrived Notice a big crowd at the head of the CenturyLink Center floor? That's all the shareholders craning to take pictures of the V.I.P. guests and Berkshire board members who've arrived. Among them is Bill Gates, who earlier partook in his usual newspaper-tossing contest with Mr. Buffett. 9:21 A.M. It's Movie Trailer Guy One of the traditions of the Berkshire meeting, a booming announcement from a beloved movie trailer narrator, lets shareholders that it's 10 minutes before movie time. 9:19 A.M. Product Placement If you're an exhibitor at the Berkshire meeting, the thinking must go, you have to display the likeness of the Oracle of Omaha very prominently. A stroll through the exhibit hall reveals all manner of Buffett-related memorabilia, from the expected T-shirts (one model at the BH Media outpost was emblazoned with Mr. Buffett praising Omaha) to the more, shall we say, unusual (a pair of Fruit of the Loom "Berky" boxers featuring the cartoon likenesses of Mr. Buffett and Charlie Munger). All were in fairly high demand.