Finding Fulfillment in Work:
Warren Buffett emphasizes the importance of job satisfaction and advises against enduring unfulfilling work for extended periods. He compares this to saving sex for old age, highlighting the value of enjoying the present moment.

The Risk of Starting a Company:
Bill Gates shares his initial apprehensions about quitting his job to start Microsoft. He found it more daunting to hire and pay his friends than to take the initial leap of faith.

Berkshire Hathaway’s Annual Shareholders Meeting:
Every spring in Omaha, Nebraska, thousands of investors gather for Berkshire Hathaway’s annual shareholders meeting. The event draws people from around the world, eager to meet the legendary Warren Buffett.

Buffett’s Investment Philosophy:
Buffett’s uncanny ability to pick stocks has made him a renowned investor, with a net worth estimated at over $30 billion. His success is attributed to his focus on well-known companies like Coca-Cola, Gillette, and Dairy Queen, avoiding high-tech ventures.

Bill Gates’ Technological Revolution:
Despite his aversion to technology, Buffett maintains a close friendship with Bill Gates, the co-founder and CEO of Microsoft. Gates, 26 years younger than Buffett, has achieved enormous success through the technological revolution he has pioneered.

Microsoft’s Success and Controversies:
Microsoft, founded with an initial investment of $1,500, has become the world’s leading developer of software for personal computers. Gates’ global advocacy for the PC has made him a prominent figure. However, the company’s dominance has drawn legal challenges from government antitrust regulators.

Gates and Buffett’s Shared Curiosity:
Bill Gates and Warren Buffett share a common fascination with the future and a restless curiosity. This shared interest brought them together at the University of Washington in Seattle in the spring of 1998.

Habits and Rationality:
According to Warren Buffett, IQ alone is not enough for success; rationality is the key to maximizing output. Smart people often get in their own way due to irrational behaviors and habits. Buffett suggests identifying admirable qualities in others and practicing them to form positive habits. Negative habits, like those found in people you dislike, should be avoided.

Success and Happiness:
Buffett defines happiness as doing what you love every day and working with people you admire. He believes that success is getting what you want, while happiness is wanting what you get. Buffett advises choosing a job and organization that you genuinely enjoy to ensure lasting fulfillment. He emphasizes the importance of avoiding jobs that you dislike, as it can lead to a lack of motivation and unhappiness.

Bill Gates’ Vision and Focus:
Gates was fortunate to have early exposure to computers and recognized their potential. He and his friends were fascinated by the technology and saw its transformative possibilities. Gates and his team pursued their vision with unwavering focus, leading to the creation of Microsoft and a major revolution in the information age. He believes that the revolution is still in its early stages and that the next 23 years hold even greater potential for advancement.

Audience Interaction:
The audience was invited to ask questions to Warren Buffett and Bill Gates. The questions and answers covered a wide range of topics, including the definition of success, personal happiness, and the role of habits in achieving success. The discussion provided valuable insights into the perspectives and experiences of these two renowned business leaders.

Key Themes:
Importance of Enjoying Work: Warren Buffett emphasizes the importance of enjoying one’s work. Bill Gates shares his passion for working with intelligent individuals and tackling new challenges in the computer industry.

Innovation in Different Industries:
Warren Buffett’s Role in Capital Allocation and Team Motivation: Buffett’s primary functions are allocating capital and motivating his team of managers. He seeks to inspire them to maintain their enthusiasm despite their financial success. Buffett acknowledges that innovation is primarily driven by his managers. Bill Gates’ Focus on Innovation in the Technology Industry: Gates discusses the dynamic nature of the technology business and the need for constant innovation. He highlights the example of IBM’s dominance and subsequent decline due to missed opportunities. Gates emphasizes the importance of staying vigilant, embracing new technologies, and adapting to changing market conditions.

Leadership in Times of Crisis:
Gates’ Approach to Crisis Management: Gates shares his experience in handling the emergence of the internet as a transformative force. He describes how he created a sense of urgency within his team to address the rapidly changing landscape. Gates emphasizes the importance of active leadership, brainstorming, and strategic decision-making during times of crisis.

Role Models and Success:
Buffett and Gates’ Role Models: Buffett highlights the influence of Benjamin Graham, his mentor in the world of investing. Gates mentions his admiration for Andrew Carnegie and John D. Rockefeller, pioneers in business and philanthropy.

Conclusion:
Buffett and Gates emphasize the importance of enjoying one’s work, embracing innovation, and providing effective leadership in times of crisis. They acknowledge the influence of role models in their success and the importance of adapting to changing market dynamics.

Gate’s Childhood and Interests:
Gates’ parents were deeply involved in various activities and would share their experiences with their children, fostering a broad range of interests. Gates developed a strong passion for reading and gravitated towards scientists for their ability to generate innovative ideas. Initially considering a career in mathematics or science, Gates recognized the potential of computers and the significant impact they could have.

Buffett’s Heroes and their Influence:
Buffett emphasizes the importance of heroes or role models in shaping one’s life and values. Buffett’s primary heroes were his father, wife, and professor, Ben Graham. He highlights the significant lessons and positive influence he gained from observing and interacting with these individuals. Buffett stresses the value of having strong heroes who consistently inspire and guide one’s actions and decisions.

Internet Access for Children:
Bill Gates shares his approach to managing children’s access to the internet. He advocates for open communication and education rather than strict blocking of information. Gates believes that children’s curiosity should be nurtured, and they should be allowed to explore topics they are interested in.

Technology’s Impact on Business Efficiency:
Warren Buffett acknowledges that technology has improved business efficiency. He compares it to a parade, where everyone stands on tiptoe to see better, but ultimately, everyone is in the same position. Buffett believes that technology’s benefits are often self-neutralizing, as competitors adopt similar technologies.

Global Reach of Business:
Buffett explains how his company, Berkshire Hathaway, participates in global markets through its investments in companies like Koch and Gillette. Bill Gates highlights the global nature of Microsoft’s business, with a significant portion of its revenue coming from outside the United States.

Microsoft’s Success in International Markets:
Gates attributes Microsoft’s success outside the United States to its focus on understanding local conditions, languages, and distribution networks. He acknowledges that international expansion can be challenging but emphasizes the growth potential in these markets.

Changing Attitudes towards U.S. Competitiveness:
Warren Buffett praises Bill Gates’ role in transforming the world’s perception of the United States’ ability to compete in technology and innovation.

Trip to China and Its Impact on Global Business Decisions:
Bill Gates and Warren Buffett discuss their trip to China in 1995, highlighting the excitement of witnessing the country’s rapid transformation. Gates explains Microsoft’s strategy of investing in China despite the prevalence of software piracy, believing that customers will eventually pay for legitimate software.

Philanthropy and Giving Back to Communities:
Both Gates and Buffett express their commitment to philanthropy and giving back to society. Gates emphasizes that the majority of his and his family’s wealth will be directed towards social causes.

Warren Buffett’s Gratitude and Good Fortune:
Buffett emphasizes his gratitude for being born in a society that has allowed him to succeed. He acknowledges that his skills and talents are well-suited for a market economy and that he has benefited greatly from this system. Buffett recognizes that his success is not solely due to his own efforts but also due to the opportunities and advantages provided by society.

Wealth and Social Responsibility:
Buffett believes that he has an obligation to give back to society the wealth he has accumulated. He views his wealth as a privilege and not a right. Buffett criticizes the idea of passing down large amounts of wealth to children, arguing that it is unfair and undermines the principles of meritocracy.

Meritocracy and Productive Goods:
Buffett advocates for a meritocracy in which individuals are rewarded based on their abilities and contributions. He believes that productive goods should flow to those who can use them most effectively. Buffett rejects the notion that wealth should be inherited or determined by birthright. He argues that everyone should have the opportunity to succeed based on their own merits, regardless of their family background.

Challenges and Opportunities in the Information Age:
The information age presents both challenges and opportunities for countries, industries, and companies. Buffett suggests that countries and industries that are adaptable, innovative, and willing to embrace change will be best positioned to succeed. He emphasizes the importance of investing in education, research, and technology to stay competitive in the rapidly evolving global economy.

Bill Gates’ Views on Technological Advancement and Its Impact:
Bill Gates believes the United States will be the primary beneficiary of information technology due to its strong position in capital allocation and labor movement. Other countries like Singapore, Hong Kong, and Scandinavian nations are also adopting technology at a similar pace. Countries like Korea and parts of China have prioritized technology, resulting in high personal computer penetration, even at low-income levels.

Education and Income Disparity:
Gates predicts a shift where income levels will be primarily determined by education rather than geographical location. This means that individuals with higher education in developing countries will benefit significantly from technological advancements. The internet will enable services and advice to be transported efficiently, creating a global market for skilled individuals.

Warren Buffett’s Approach to Technology and Investing:
Buffett acknowledges the transformative power of technological revolution but has a different approach to investing. He prefers predictable businesses with established products, such as Wrigley’s gum, Coke, and Gillette, which he believes will be less affected by technological disruption. Buffett sees the high multiples of technology stocks as risky and unpredictable compared to the more stable multiples of traditional companies.

Bill Gates’ Agreement with Buffett’s Perspective:
Gates agrees with Buffett that technology stocks should have lower multiples due to their susceptibility to rapid changes and disruptive innovations. Gates recognizes that Microsoft’s success is subject to continuous crises and the need to demonstrate excellence to maintain its leadership position.

Conclusion:
Bill Gates and Warren Buffett offer contrasting perspectives on the impact of technological advancements. Gates emphasizes the transformative potential of technology, particularly in education and income equality, while Buffett takes a more cautious approach, focusing on predictable businesses with established products and services.

Choosing the Right Time to Start a New Company:
Bill Gates believes that the best time to start a company is when you are excited about the venture and have a set of skills that are highly employable, ensuring you can fall back on a job if needed.

Financial Risks and Considerations:
Gates highlights the importance of having enough financial resources to cover a year’s worth of payroll, even during challenging times, ensuring the company can operate smoothly.

Balancing Risk and Passion:
Starting a company requires a high level of energy and passion to overcome the inherent risks involved. It’s important to have a strong belief in the venture to persevere through difficulties.

Learning from Experience:
Gates suggests that gaining experience by working for a company before starting your own can be beneficial, especially for younger individuals. This experience can provide valuable insights into business operations and help build a network of contacts.

Challenges Faced by Younger Entrepreneurs:
Gates mentions the challenges faced by younger entrepreneurs, such as difficulties in leasing premises, renting cars, and attending business discussions in bars due to age restrictions. However, he also highlights that youthful enthusiasm and lack of experience can sometimes be an asset, as clients may be impressed by the entrepreneur’s drive and knowledge.

Hiring Older Employees:
Gates notes the challenges in hiring older employees, as they may be more conservative in taking risks. It took several years for Microsoft to reach a stage where it could hire from the general employment pool.

Embracing Challenges as Part of the Entrepreneurial Journey:
Gates emphasizes that the challenges encountered while starting a business should be viewed as part of the excitement and pleasure of the entrepreneurial journey.

Warren Buffett’s Perspective on the Best Business Decision:
Buffett believes that simply jumping into the investment business and enjoying the work has been the best business decision he has made. He highlights the satisfaction and success he has found in doing what he loves.

Biggest Investment Mistake:
Berkshire Hathaway was a low-priced investment, but it was in a declining industry, making it a poor choice. Buffett acknowledges that it was his worst decision, costing billions in lost profits.

Mistakes of Omission:
Buffett admits to missing opportunities to invest in companies he understood, such as Fannie Mae, due to his inaction. These mistakes, though not recorded in conventional accounting, were significant and costly.

Best Business Decision:
Gates considers his partnership with Paul Allen and hiring Steve Ballmer as his best decisions. Having a trusted and skilled partner led to success and innovation at Microsoft.

Importance of Partners:
Buffett emphasizes the value of having a partner like Charlie Munger, who provides a different perspective and helps him make better decisions. Calibration with a partner is crucial, as their input can help avoid costly mistakes.

If You Could Change One Thing:
Buffett expresses a desire to be younger, as he never looks back and worries about past decisions.

Luck and Gratitude:
Warren Buffett emphasizes the role of luck in his success, particularly his birth in the United States and having supportive parents. He expresses gratitude for his fortunate circumstances and believes in playing the hand one is dealt to the best of one’s ability.

Time Management:
Bill Gates emphasizes the importance of managing time effectively and regrets not spending more time with engineers and customers. He seeks feedback to identify areas where he can improve his time allocation.

Material Possessions and Fulfillment:
Buffett states that if he lost all his money, it wouldn’t bother him much as long as he didn’t take others down with him. He believes that material possessions don’t contribute significantly to happiness and fulfillment.

Starting Fresh:
Buffett suggests that if he lost everything and had to start over, he would enjoy playing the game of investing again with the knowledge he has now. Gates agrees that starting over on a small scale has a certain appeal, but he emphasizes the importance of the people and their sense of collaboration in his business.

Antitrust Legislation:
The key goal of antitrust legislation is to protect consumers and ensure new products are created and innovative. Bill Gates believes the personal computer industry is the best example of a sector where antitrust legislation has worked well.

The Success of the Personal Computer Industry:
Since the introduction of the personal computer, the price of computing has decreased dramatically. The variety and quality of software have also increased at a phenomenal rate. The personal computer industry is experiencing a significant increase in new software companies, software jobs, investments, and public offerings.

Leadership of Warren Buffett and Bill Gates:
Warren Buffett believes his success is due to outstanding people in his organization. He has already written a letter instructing the Board of Directors on what to do after his death. Bill Gates believes his success is due to his enthusiasm and leadership skills. He believes Microsoft has outstanding people who can continue the company’s success after he is gone.

Bill Gates’ Transition at Microsoft:
Gates plans to continue his involvement with Microsoft as a career but will select a new CEO in the future. This transition can be challenging, sometimes leading to improved or decreased performance.

Audience Reaction to the Presentation:
The audience appreciated the personal side of Warren Buffett and Bill Gates, as opposed to their business persona. Buffett’s comments on being true to oneself and following one’s passion resonated with the audience, especially considering his remarkable success. Both Gates and Buffett emphasized the importance of happiness and internal achievement over wealth and fame.

Program Sponsors and Contact Information:
The Floyd and Dolores Jones Foundation supported this program, which aimed to enhance public education and understanding of business and investing in the US economy. Viewers can order videocassettes and transcripts of the program by calling KCTS at 1-800-937-5387. Nasdaq Stock Market and the New York Stock Exchange were sponsors of the program.