Berkshire Hathaway 2003 Annual Meeting Audience Question # 32

On Berkshire’s investment in Level 3 communications convertible bonds

Warren Buffett:

In terms of Level 3, we like the people. We think they’re smart people, and they owed too much money, you know. And they recognized it. And they’ve done some very intelligent things, in the way of attacking that problem, and, you know, we bet on the people.

Charlie knows way more about the physical world than I do, but, you know, I have yet to see an electron. And I just have no working relationship with them at all. I can’t identify with them. So, I do not know a lot about the technology. I never would.

I mean you could explain it to me and I could probably regurgitate it on some test or something, but I wouldn’t really understand it.

But I think I understand the people involved, and we were quite willing to make that bet. It’s of a different sort than we usually do, but we did it and we’re happy we did it.

Charlie?

Charlie Munger:

Nothing more to say.

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Q&A with Warren Buffett and Charlie Munger: A Compilation of All Shareholder Questions and Answers from The Berkshire Hathaway Annual Shareholder Meetings

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