2015: How does German corporate culture and performance compare to American companies?
AUDIENCE MEMBER: Dear Warren, dear Charlie. Thank you for 50 great years. I’m a happy shareholder and hope to have you continue long.
My name is Victoria Von Tropp (PH). I’m from Bonn in Germany.
And my question is, you own companies both here in the U.S. as well as in Germany. What differences in corporate culture and in performance do you see between German and U.S. starter companies?
WARREN BUFFETT: Charlie?
CHARLIE MUNGER: Differences between what â
WARREN BUFFETT: I know the question. I’m just looking to you for the answer, not the question. (Laughter)
CHARLIE MUNGER: Now that he can hear so much better, he â
WARREN BUFFETT: Yeah.
CHARLIE MUNGER: Well, we â we’ve had a hard time buying things in Europe. It’s been quite rare.
And I think the traditions, and the family traditions, are different in Europe than they are in the United States, and in some other countries.
And Germany, of course, has a long tradition of being very good at technology and capitalism, and that’s been a godsend to Germany. And we’ve always admired the way the Germans have performed.
The Germans actually work fewer hours than a lot of other people and produce a lot more and, of course, Warren and I are pretty good at that. (Laughter)
So we’re â we admire the Germans, particularly the engineering side, and â but we’ve been thinking about owning good German companies for a long time and we finally bought one.
WARREN BUFFETT: Yeah. But I’ll make a prediction. I will predict we buy at least one German company in the next five years.
I think that â I think we are far more on the radar screen than we were just a few years ago in Germany. I think we now have a woman over there who brought, through somebody else as well, but brought Louis to our attention.
I think she is going to hear about more things because of her association with us on the transaction and the fact that we tried to get the word out as to her help with us.
So, I would really be surprised if we don’t make at least one deal in Germany in the next five years, and I would look forward to it. I mean, we’ll be very, very happy with â you know, we have to get a business, we understand.
I’ve had, probably, four or five letters in the last couple months, ever since the Louis deal was announced, but they’ve been very small businesses in practically each case.
But we’ll get one. We’re eager, we’ve got the money, and we do fit the family situation, occasionally.
And prices may be a little more attractive there than in the United States, although I haven’t seen anything yet that we’ve bought.
But I would say that there’s a reasonable chance that the price of something we’re offered over there might catch my attention more than U.S. prices, currently.