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It is my second year of being a Berkshire shareholder and attending Shareholders meeting in Omaha, Nebraska at Qwest Convention Center. In a crowd of more than 20,000 people in the arena, giants of Capitalism-Warren Buffet and his partner Charlie Munger were like tiny specks. Three giant screens helped in magnifying those two tiny specks to a level where I can see them clearly.

The meeting started on an upbeat note, after an entertaining movie. Mr. Buffet had a lot to be pleased about with Berkshire net surging 70% in first quarter, but he underplayed it by saying that he is in the market for a long run, so one or two quarters hardly matter. He warned that third quarter maybe little disappointing due to hurricane season. He formally announced acquiring 80 percent stake in a closely held Israeli firm named Iscar Metalworking Co. that manufactures metal cutting tools. He indicated, this out-of-country acquisation may not be the last one. However, like a shrewd businessman, he clearly stated that he won’t be interested in “small economies” and countries with “uncertainities”.

In a usual Q & A session, Warren and Charlie were brilliant and humorous. Even “I-have-nothing-more-to-add” Charlie Munger had lot more to add to Warren’s answers. The very first question was about social security and Mr.Buffet’s answer included a quip “If they are comfortable with trillion dollars debt what is 100 billion dollars of Social Security? I am sure they can manage it and find ways to pay for it.”

When asked about his successor, Warren assured that it will be definitely someone who will have the same values and ethics that all managers possess in the companies owned by Berkshire Hathaway. Charlie “added” his comment “Do you really think he’s going to blow it when it comes time to pass it on?”

The Question and Answer sessions in Berkshire meetings are always an inspiration and learning experience to me. Warren shares his gems of wisdom via his answers. Here are few pearls that I picked up:

• Ethanol and Agri-products do not have great returns on investment.
• The companies you invest in, must be in your circle of confidence. You must understand the business of the company you invest in.
• Commodity Bubble happens when value investing is replaced with speculation.