AUDIENCE MEMBER 00:08
Good afternoon. Ian Sacks from New York City.
This afternoon, through various questions and comments, we’ve mentioned the fact that the word “trust,” which Berkshire Hathaway and the brand has. We’ve mentioned, basically, health, and the importance of health, and that being above everything else.
With Berkshire’s competencies in the insurance industry and with the health care services sector being relatively depressed, is — although the dynamics would be different in the industry how risk is managed on an overall basis — has Berkshire looked at all, in terms of taking a position or buying a health insurance business?
WARREN BUFFETT 00:50
Charlie runs a hospital so I’m going to let him talk about this.
CHARLIE MUNGER 00:54
Sure. We’ve looked a little. We’ve looked at everything in turmoil that’s important in the world. But so far it hasn’t seemed to yield our particular mental approach.
WARREN BUFFETT 01:12
Yeah. I don’t know who I would want to get in with in that business at the moment. That’s not — I’m not condemning the people in the business, it just means I don’t know. I’m not — I haven’t been able to evaluate that.
And I think it would make an enormous difference, in terms of wanting to get in with a quality operation and quality people and at a sensible price. And we haven’t seen that, but that doesn’t mean we’ve canvassed the whole field either.
CHARLIE MUNGER 01:43
There is a significant percentage of schlock operators in the field who are painting the reality different than it is. That makes it harder.
WARREN BUFFETT 01:55
~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.
What's next if a business is under your circle of competence?
Ask yourself, is this a quality operation? Does it run by quality people? Is it at a sensible price?