Plain English
Saturday April 30th, Warren Buffett will host the Berkshire Hathaway Annual Meeting in Omaha, Nebraska. This event is truly unique in that shareholders descend upon Omaha and get a chance to enjoy steaks, cherry cokes, and chocolates – three staples in Warren Buffett’s diet – as well as hearing from the “Oracle of Omaha” and his sidekick Charlie Munger. Both possess great minds and the ability to communicate in plain English. Buffett’s annual “Letter to Shareholders” gets circulated around Wall Street rapidly because no one wants to miss out on his sage advice. Buffett is 85 years old and attended the University of Pennsylvania (Go Quakers!) and Columbia B-School. Munger is 92 and graduated from University of Michigan (go Blue!) and Harvard Law.
Buffett’s advice is usually pretty straightforward. He might say things like “we own great companies”, or “our holding period is forever”. My favorite: “Price is what you pay. Value is what you get.” Each of these quotes is simple, understandable, and sensible. That is the remarkable talent that he possesses in an industry full of complicated descriptions and jargon designed to confuse investors. If you don’t believe me, rent and watch the recent movie “The Big Short”, which is essentially a character assassination of many Wall Street bigshots. My wife and I watched this movie last weekend, and I had to hit the pause button too many times to explain what the characters were saying. The movie is interesting despite this shortcoming, as it attempts to uncover the cause of the Great Recession of 2007-2008. This is not an endorsement of the movie, by the way. It is a condemnation of the use of jargon on Wall Street. I prefer plain English, and that is how I try to explain things to you.
Speaking of plain English, recently a young man from Bath (England, not Maine) joined our office. I have been asked to be his mentor, which is a pleasant assignment. I asked him “how do the English interpret the phrase ‘plain English’?” His response: “simple and straightforward communication. No jargon.” Some phrases translate well across the ocean.
Thus, I will leave you with an example of plain English using a quote from David Cameron, Prime Minister of the United Kingdom and Leader of its Conservative Party: “Divisive, stupid, and wrong.” The Prime Minister was referring to a certain candidate for U.S. President whose name I will not reveal. Take a guess.
Enjoy the month of May. Remember Mother’s Day is early this year – May 8th.
Ralph McDevitt
Raymond James is not affiliated with Warren Buffet, Charlie Munger or any of the listed entities.
