Berkshire Hathaway 2018 Annual Meeting Audience Question # 13

Todd Combs and Ted Weschler’s contributions to Berkshire have been “terrific”

Warren Buffett:

OK. Becky?

Becky Quick:

This question comes from David Rolfe, who is with Wedgewood Partners, and has been… the company… has been shareholders in Berkshire since 1989. The stock is currently the largest holding in their stocks… 18 stocks.

He asks this question: “Over the past two years, you have listed the individual fund-of-funds performance from Protégé Partners. When will you start showing the annual performance on 25 billion that Ted and Todd manage? Can you state if either Ted or Todd has beaten the S&P 500 index over the last five years?

Warren Buffett:

Yeah. Both… A, we’ll probably never report their individual performance.

But you can be sure that I have an enormous interest in… as does Charlie… in how much we think they contribute to Berkshire. And they have… they’ve been terrific. They’ve… they not only have the intellect, and the record, but they are exceptional human beings. And they…

Todd has done a tremendous amount of work, for example, on the medical project.

And… Ted is… I’ve given him several things, and he’s done them better than I could do them.

So the record, since inception… and I’m measuring it… Ted came later than Todd, a year or so later… but the record, since inception, is almost identical… both for the two managers… from their different inception and matching the S&P.

And they’ve received some incentive compensation, which they only get if they beat the S&P.

And as I say, they’re just slightly ahead. That really hasn’t…

It’s been better than I’ve done, so naturally, I can’t criticize it.

They… they were the… they were two very, very, very good choices.


Charlie Munger:

You did report it in a previous year. You just didn’t do it this year. And… but now you have your report.

Warren Buffett:

I would… the problem that all of us has is size. It’s actually… it’s harder to run even 12 or $13 billion, frankly, than it is to run a billion. And if you’re running a million dollars or something of the sort, it’s a whole different game. You’d agree with that, wouldn’t you, Charlie?

Charlie Munger:

Of course.

Warren Buffett:

Yeah, OK.

Just like any good lawyer, you never ask him a question unless you think you know the answer they’re going to give.

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