Berkshire’s Role in America’s Future and Financial Strength

In their latest episode of the VALUE: After Hours Podcast, Tobias Carlisle, Jake Taylor, and John Rotonti Jr discussed, Berkshire’s Role in America’s Future and Financial Strength:

John: I’ll just say, I think the messaging was similar to 2023. So, in 2023, he actually said, “Berkshire will remain an asset to the country.” He actually used the word, asset, to the country twice. He said, “Once Berkshire will be an asset to the country and will remain an asset to the country.” And then, another time he said, “Burlington Northern railroad will remain an asset to the country.” But he actually used the word asset to the country. He didn’t use the phrasing asset to the country in 2024, but I think the message was the same, honestly, Toby and Jake.

He said, “We have the railroad. We have the utility. We can ensure climate risk when other insurers can’t, when other insurers are bailing out. We’re the largest taxpayer in the US. We’re not going to go broke on you. We own a lot of treasuries and we are buying.” He says “Our cash position will likely increase. We’re buying even more treasuries.”

Jake: I heard he had more than the Fed, actually.

John: Exactly.

Jake: [laughs] How can that be?

John: Right. So, I think he went out of his way to message the same thing as he did in 2023, which is, “We’re here for the country. We have these massive, massive infrastructure projects with the railroad and the utility.” I think they have the largest natural gas pipeline in the US too, by the way. If not the largest, it’s one or two. So, “We have Berkshire Hathaway Energy. We have Burlington Northern. We’re not going to go broke. We’re going to ensure climate risk when no one else is. Everyone else is bailing on you.”

Jake: [unintelligible 00:20:10]

John: Exactly.

Jake: You can get a [crosstalk] for a dollar still. That’s nice.

John: Yeah. “We own a lot of treasuries and we’re buying more and we’re the biggest taxpayers.” So, I think people want to get on the good side of this administration, I think. They want the administration to know– I know you’re trying to make America great again. You’re trying to rebuild the country, putting a lot of money towards infrastructure, etc., etc. We can help with that. I’m just talking in general. I think companies are going to start messaging that.

Jake: Yeah. I thought it was a classic Buffett letter, fit in nicely with the entire compendium. I thought that it was very clever to include a story about Pete Liegl, who was the founder of Forest River. In telling that story, Buffett was basically laying out what is he looking for in acquisition. He wants basically like a founder, owner, operator to show up with a price. Don’t expect a lot of negotiation. Expect to keep running the business and we’ll make a quick decision for you. He laid it all out in a story format that anyone who read it and had that type of business might pattern match to it,-

John: Absolutely.

Jake: -which is not necessarily for him, but I think also for Greg in the future. I thought that there was a lot of really good reinforcements of culture that will continue to echo for hopefully a long-time, post Buffett and Munger. I thought he did a really good job of just reiterating and re-banging the drum on culture for Berkshire.

John: I agree. Okay

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