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3 Things I Learnt From Visiting Omaha And All Things Warren Buffett

It is Friday here in Omaha. It is one day from the main annual general meeting tomorrow. Due to the jet lag effect I was awake since 4am. So we decided to head out early at dawn and visit some of the pre-event “events”.

We went to visit both Warren Buffett’s home and his office and spent some time at the exhibition hall where Berkshire Hathaway is showcasing some of its businesses. Here are 3 things I learn from visiting all the things related to Berkshire Hathaway and Warren Buffett.

Simple house, simple man

 warren-buffett-house

Picture of Warren Buffett’s house

First of all, we went to his house, the actual house he is living now since 1958. He bought the house back in 1958 for US$31,500. Looking at his house really illustrated the point of “never judge a book by its cover”.

In looking at an investment, we should never take it at face value of what companies are portraying. Many times, companies that try to dress themselves up as fast-growing and successful are often the ones with many issues in the closet. By contrast, companies that are under-the-radar might turn out to be a real hidden gem.

Berkshire Hathaway’s shares as a currency and the Buffett Premium

buffett-neighbour

Picture of his neighbour’s “For Sale” signage

Berkshire Hathaway’s share are so valuable that it has become a currency on its own.

Instead of accepting cash as normal consideration for their house, Warren Buffett’s neighbour is demanding 10 Berkshire Hathaway A Shares as payment for the house. At US$215,800.00 per share, that house might fetch more than US$2.0 million.

Further down the road, similar houses are only selling for around US$900,000.00. It seems the Buffett premium is still going strong.

Great selling opportunities

 buffett agm

Picture of the exhibition hall

Most of Berkshire Hathaway’s retail businesses are open for extended hours and offers discount for all shareholders. Moreover, it has an exhibition hall showcasing many of its businesses.

Besides educating shareholders about the different businesses in the conglomerate, it is also a mega selling opportunities for all the companies to do huge volume of sales during this weekend.

What other company is able to ask its shareholders to travel thousands of kilometre to a small town to spend even more money. Talk about an economic moat.

Foolish Summary

Omaha is a very interesting place which would not be as famous as it is now without Warren Buffett and Berkshire Hathaway. From visiting the place for a day, I get to see what impact Warren Buffett has on the city.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim does not own any companies mentioned above.