Berkshire Hathaway 2018 Annual Meeting Audience Question # 6

Capital allocation in the public sector is very different from capital allocation in the private sector

Warren Buffett:

Station 2?

Audience Member:

Wally Obermeyer, Obermeyer Wood Investment Counsel, Aspen, Colorado.

Warren and Charlie, you two have demonstrated great talent in private sector capital allocation and shown the world the power of excellence in this area.

Do you think there is a similar opportunity for outstanding capital allocation in the public sector, at both the state and federal levels? And if so, what approach and/or changes would you suggest for society to achieve these benefits?

Charlie Munger:

That’s too tough. Why don’t we go on to a new question?

Warren Buffett:

I’m afraid I have nothing to add.

I don’t mean to be unfair to somebody asking a question, but it… you know, it is unfortunately an entirely different game. And the electorate… the motivations are different, the terms, the reward system is different.

I mean, everything is different. And if we knew how to solve that, we wouldn’t… we can’t add anything to what you had in your view. I’m sorry on that.

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