Warren Buffett is a personal hero of mine. Imagine my surprise to hear him as the subject of the 5 Minute Professor on Real Radio - The Philips Phile. Here is a transcript of that edition. Kudos to Bill Keevan, the Five Minute Professor. You can follow Bill at Facebook by searching FIVE MINUTE PROFESSOR and joining the group.
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One of the richest men in America. The Sage of Omaha. He was born August 30, 1930. He filed his first tax return during WWII 1943 – He listed the cost of his bike and his watch as business expenses related to his newspaper route. He was 13.
He was not born poor… He was the son of Howard Buffett – a ...US Representative from Nebraska from 1942 – 1948 and again from 1950 -52. Howard was opposed to the Korean War because he felt that (quote) Even if it were desirable, America is not strong enough to police the world by military force. (1950) Warren went to the Wharton Business school at Upenn for two years and completed his BS in Economics at the University of Nebraska and then went to Columbia for his Masters.
He started working at his father’s investment firm in 1951 .. started his own partnership in 1956 and was a millionaire (at least on paper by 1962 – he was 32 years old. Warren married Susan Thompson in 1952.
In 1977, Susan decided she wanted to pursue a career as a singer after Neil Sedaka convinced her to move to S...an Francisco… but the Buffetts stayed married until her death in 2004. They lived separately but vacationed together. Before moving away… Susan introduced Warren to Astrid Menks. Astrid moved in just after Susan moved away and eventually Christmas cards would be signed by Warren, Susie and Astrid… After Susie died in 2004 – Bono played at her funeral, Warren married Astrid in 2006 in a small ceremony.
www.muckety.com – shows you how people and organizations are inter-connected. Astrid’s only connection is Warren … Angelina Jolie
Susan had owned about 2.2 % of Warren biggest venture Berkshire Hathaway -- she was worth $3 Billion and was the 153rd richest person in America. Berkshire Hathaway made news this week. ...This enormous conglomerate bought out the rest of Burlington Northern Santa Fe railroad and replaced it in the S & P 500. That is noteworthy for a few reasons… numbers one --- it had to execute a 50 -1stock split on January 21st to qualify as a readily available and liquid security. It only splits its B Class shares they are trading today at about $76 a share – that would have been $3800 pre-split. And that isn’t the big number – the Class A shares which did not split … are trading over $114,000 per share …
Financial info update -- Outstanding shares – 1.55 Billion only 1.12 Billion of these are in the float --- that means that the company hold 430,000 shares. Since there are 1.55 million shares and they trade at 114,000 each the Market capitalization --- also called market Cap --- 176.99 Billion
Warren has started to... give away over 85% of his vast wealth in 2006… he donated the bulk of it to the Bill and Melinda Gates foundation… the foundation is the largest holder of BRK A shares --- they have 77 million shares … next largest shareholder – Warren – he has a scant 1.5 million… and then the next largest holder -- a guy named Stephen Burke – he has 5.
Berkshire Hathaway is not very popular as an addition to the S & P in part because Warren does not pay dividends … this addition effectively lowers the dividend return of S & P funds by over ½ of one percent.
Berkshire Hathaway started out as a textile firm … originally founded in 1839 in Rhode Island … through mer...gers it became Berkshire Hathaway in 1955 .. Warren saw that it was undervalued and bought it in 1962 and then started buying not just stock but entire companies and including them under the Berkshire hathaway umbrella… Berkshire currently wholly owns 37 companies including – GEICO – since 1996, Dairy Queen, Pampered Chef, Fruit of the Loom (2002), Business Wire (2006), Helzberg Diamonds, Burlington Northern Santa Fe – last week … they also own 13% of American Express, almost 10% of Anheuser- Busch and Coca-Cola … as well as 18% of the Washington Post.
1) James William (call me Jimmy) Buffett is no relation … He was born Dec 25, 1946 in Pascagoula, MS. Jimmy is the poorer Buffett though .. he only manages to generate about $100 million per year in album sales and licensing arrangements. So to supplement his income… how many consecutive years has Jimmy been out on... tour at least once.
26 years … since 1984 and he plans to go out this year as well … with the Under the Big Top Tour. Starting on the 20th in Jacksonville… Playing the Amway Arena on the 25th.
2) His highest charting single is Margaritaville … his only Number 1 album to date was 2004’s License to Chill… His latest album is “Buffet Hotel” without the second t that both Warren and Jimmy have in their name … A buffet is an 18th century French term for food laid out for self-service… it was named for the furn...iture that it was laid out on. I Japan – a buffet is referred to by what name for 8th to 13th Century European Explorers who exacted tribute from ports as far flung as the Caspian sea, Gibraltar, Iceland, Greenland and a place they called – Vinland.
Vikings
3) One of my greatest childhood memories of the 23rd state involve an ice cream buffet at a restaurant called The Viking. Can you name the 23rd state… it joined the Union in 1820… only borders one state … and is the only state with a one-syllable name.
Maine
4) The longest US state names have 5 syllables… can ...you name any of these 6 states. Two sets are neighbors, three are original colonies, One joined the Union during the Civil War. One was briefly a Republic, One was founded by the French.
California, Louisiana, North Carolina, South Carolina, West Virginia and Pennsylvania
5) Three of these states , LA, NC and SC seceded from the Union in 1861 despite pleading from what Illinois Senator who came in second in the popular vote in the Presidential election of 1860?
Stephen Douglas was on over 29% of the votes cast but only won 4 Electoral College votes. In spite of his support of slave...ry as an economic institution, he did not believe that secession was legal. Douglas died in 1861.
6) Twelve states honor Stephen Douglas with counties named in his honor, including which state … whose Capital is named for an 1860 Presidential rival.
Nebraska , Lincoln
thankful
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KARAOKE: THE ECONOMIC DOWNTURN, KARAOKE AND YOU - A FRANK LOOK AT KARAOKE IN TODAY'S ECONOMY
The recent economic downturn has affected all of us in one way or another, but most definitely has affected the karaoke community. We have seen business after business fail lately, and shows at some bars have disappeared. Many people have either lost their jobs, or otherwise do not have the discretionary income they once had to come out and enjoy an evening of food, drink, and karaoke. A good karaoke host knows what the reason for their being at a venue is, and when venues, or the people who work at them, stop making money, it puts the future of a karaoke show in peril. The following is a brief essay to explain the economics of karaoke, and an explanation of your part in that system as a consumer of the karaoke product.
WHY BARS AND RESTAURANTS PROVIDE KARAOKE
This reason is simple. Bars and restaurants hire a karaoke host to attract a crowd to spend money. While having a host who is good with people, attracts good singers, and has decent equipment and selection is a plus, at the end of the day it comes down to what is in the cash register, and what the servers can earn. Bar owners are less concerned with the content of a show, than they are that the show attracts a crowd and that the numbers at the end of the day justify inviting the host back week after week. A good host will remain aware of what the bars take is, and how much the servers are earning, to be sure that the economics of karaoke at that location are worth the venue asking him or her to come back week after week. It is important for a large percentage of attendees to support the venue, either by eating or drinking, and also for the attendees to tip their servers. Servers generally make less than minimum wage, and rely on tips solely to make a livable wage.
KARAOKE NIGHTS: HOW THE ECONOMIC DOWNTURN HAS AFFECTED THE VENUES
First and foremost...smaller crowds. Secondly, those who are attending seem to spend less. It is possible to see shows that are wildly popular, with long rotations and believe that it is going to be a great night for the host and venue...but then at the end of the night, the servers have made little to no money, and the total in the cash register is very low. This has been the first year that I have gone to work at several of my venues, wondering if my future was in jeopardy there...either because the rings or attendance have been low, or because the venue overall is losing money and may close down. Where a large crowd may give the illusion of success, it is NOT NECESSARILY so.
WHAT CAN BE DONE TO HELP?
SUPPORT THE VENUE AND THE SERVERS! First and foremost, if you are supporting the venues and the servers, THANK YOU!! Supporting can be as simple as ordering a food item, maybe a couple of drinks...and tipping your server. I understand that many do not drink, and choose to drink soft drinks or water. Please understand that the venue does have an overhead of paying for the room, the staff and the entertainment, so if they charge a premium for soft drinks, water and refills, it is merely to recoup their costs in paying the bills from a shrinking audience. Some folks have balked at rising prices, or less liberal refill policies, or higher prices for drinks not accompanied by food, by taking it out on the servers and not tipping them. The servers do not make the price policies, so please do not take it out on them. When you look at your tab, factor in not only the cost of the food or drink, but also the enjoyment you got from the entertainment. There was no cover charge, so if you feel your tab is high, pretend that it includes a cover charge to pay for your karaoke host, and the electricity, etc... Cover charges COULD become the next step if we are not cautious.
THE ECONOMY OF KARAOKE : HELPING THE SERVERS/BARTENDERS
Keeping the servers and bartenders happy goes a long way to keeping your favorite karaoke show in business. If the servers do not make money, they will not want to work the shifts...and when management sees no one wants the shifts, they will more closely audit the karaoke night to see if it is worthwhile. Similarly, if the servers do not make money, they will not have a positive outlook on their job, or karaoke. Happy servers are better at their job, and if they see karaoke as a money making night, will do more to promote it, both to the public and to their bosses. TIPPING THE BARTENDER OR SERVER IS NOT OPTIONAL! This must be in the budget for the night. I have heard story after story about patrons who pay their tabs, then explain that they are broke and cant afford to tip...and then smile at the server and expect them to understand. Serving food and drink is what they do to survive, and why they are there...and they are paid by the consumers in the form of tips. To allow and expect someone to serve you, even water, for the duration of an evening with no pay is not acceptable, and will not win a karaoke night any favor from management. Imagine if your waiter came to where you work and expected you to do what you do for a living for them, then when it came time to pay, refused to pay your labor charge or commission because they did not have enough money. That is how waiters feel when they are "stiffed". After speaking to several servers, the consensus is that if someone tips a buck a drink for alcohol, or drops a five at the beginning of a night to show intent, then follows up later with 18-20% of the total bill tipped, that would be a good return. ANY gesture is better than none.
One must understand the "real estate" of restaurants and bars as well. Each table represents a station for a server, and each seat in that station has the potential of generating revenue for the server, and the venue. If someone takes a seat at a station, they are responsible for making sure the server at that station is being taken care of. The value of the "real estate" of the chair you are sitting in depends on several factors....1) How busy is the night and is that seat needed, 2) Are you intending to eat and drink, or sip water. 3) How many people at the table are eating and drinking vs not.
At venues where there are PLENTY of seats, this is not as crucial as at smaller venues where seating is at a premium. I know that one venue I work at with limited seating is working on instituting a minimum purchase policy for its premium seating soon to ensure that paying diners do not leave for lack of a seat.
I have heard singers that do not spend use the argument that "they sing well and people come to hear them" or that "they bring their friends who spend". To some extent, those statements are true, and personally, I am happy to see a crowd...the bigger the better. I work better with a crowd. There is no shame to coming and NOT spending, unless, you are taking up real estate at a crowded show, or you are not tipping the server. Even if you are not spending, if you take a seat, you should tip the server for checking in on you and cleaning up after you when you leave. Tipping a server for free water may not endear you to the venue, but your server will appreciate it, and you, very much.
THE ECONOMY OF KARAOKE - HELPING THE VENUE
Ordering anything helps...bringing friends who may eat or drink... If drinking water, buying the bottle instead of drinking the free water helps.
IN CONCLUSION
Together we can all ride out the economic downturn to more prosperous time, but the issues discussed in this essay are timeless regardless of any economic condition. We all enjoy a great karaoke show, but need to understand the real reason they exist for us. When the show or its patrons become a liability to the venue, karaoke and similar "free" entertainment will go away. If you are not a part of the "problem", then you ARE the solution. For that I thank you, both on my behalf, and on the behalf of the places that keep me working, and the servers who take care of my patrons. If we keep the shows viable for the venues, the servers and the patrons, our shows will be going on forever! I thank you for your patronage, and for your ear on this matter.
Feel free to contact me with any questions or comment or suggestions in regard to this subject!! THANKS!!
Harry
fermented
