1998: If forced to choose, would Buffett keep Berkshire's securities or operating businesses?

AUDIENCE MEMBER: Hi, my name is David Oosterbaan. I’m from Kalamazoo, Michigan.

This is a hypothetical question about Berkshire. It’s going to take a little imagination, I think.

The scenario is as follows, that the U.S. Justice Department makes a ruling that Berkshire must split into two parts immediately. You and Mr. Munger must decide which part to keep.

You can either choose your marketable securities, Coke, Gillette, Disney, et cetera, or you can choose your insurance and private businesses. Which one do you choose and why?

WARREN BUFFETT: Well, that’s an easy question for me. I would choose the operating businesses anytime, because it’s more fun.

And I have a good time out of the investments too, but I like being involved with real people, in terms of the businesses where they’re a cohesive unit that can grow over time, and —

You know, I wished we owned all of Disney or Coca-Cola or Gillette, but we aren’t going to. So if I had to give up one or the other, I’d give up the marketable securities.

But it’s not going to happen, so we’re going to be happen in both arenas, and I look forward to being in both arenas for the rest of my life.

Charlie?

CHARLIE MUNGER: Well, I’ll be in a hell of a fix if I am not in the same arena. (Laughter)

WARREN BUFFETT: We’d both be in a hell of a fix.

CHARLIE MUNGER: Yeah, yeah.