Students Make Buffett Pilgrimage

OMAHA, Neb.—Like the ancient Greeks who traveled hundreds of miles to hear the Oracle of Delphi, so went 98 Harvard students this weekend in search of business wisdom from the Oracle of Omaha—Warren Buffett.

Buffett, whose estimated $52 billion fortune makes him the second-richest person in the world according to Forbes, spoke with about 20 other American business leaders on topics that ranged from formulating business strategy to balancing personal and professional interests.

“Unconditional love is the most powerful force in the universe,” Buffett said. “I got unconditional love from my parents...and I’ve been blessed in that I love what I’m doing so much that I have no desire to get away. I’m playing in my playground and I don’t let the world decide my schedule.”

Buffett sat down with the Harvard group for two hours on Friday afternoon. Students were eager to hear the Berkshire Hathaway CEO’s tips for financial success.

“Investing is not about having a 200 IQ. You need a sound temperament and the ability to think for yourself,” he said. “Institutions get caught up in fads, [and] you have to keep your own scorecard.”

Using the example of China’s stock market, Buffett argued that emotional management is central to sound financial management.

“The one thing you can be sure of,” he said of U.S. investment in China, “is it will eventually go too far. You have the innovators, the imitators, and the swarming incompetents. The innovators usually go in for good reasons, but by the end, people go in simply because it is going going up.”

Buffett, who announced last year that he plans to give away the bulk of his fortune to the Bill and Melinda Gates Foundation, told the audience to continually reflect on their long-term priorities, and to not only look for short-term gains.

“There’s nothing more satisfying in life than helping someone become bigger and better than they thought they could be,” he said.

On Thursday afternoon, the students heard presentations from executives at ConAgra Foods, a Fortune 500 company that sells packaged food brands such as Chef Boyardee and Slim Jim.

R. Dean Hollis, who runs the Consumer Foods Division at ConAgra, spoke to the group about problem-solving. He presented a case study on how ConAgra, facing stagnant sales with its Hebrew National kosher beef hot dogs, began marketing the product to non-Jews by saying that they were healthier than regular hot dogs. Sales for Hebrew National went up 8 percent for fiscal year 2007.

“The true test of a company is not whether it has problems, but what the company does when it has problems,” he said.

Amid thunderstorms, the Harvard group also mingled with major business executives at a reception at Rick’s Café Boatyard.

TD Ameritrade CEO Joseph H. Moglia said in an interview with The Crimson that U.S. companies will have to undertake a balancing act to remain competitive.

“At the end of the day, American businesses will do well if they focus on understanding how to care for their clients, providing a reasonable rate of return to their shareholders, and understanding that you deliver through your employees,” he said. “They need to understand the mission.”

The students who went on the trip, which was organized by Harvard’s Smart Woman Securities and Harvard Undergraduate Women in Business, said they were impressed with the weekend’s speakers and events.

“The trip was a tremendous opportunity,” Jared D. Dourdeville ’11 said as the group was departing for Boston on Saturday. “I come from a small town in Massachusetts, and getting to see the large-scale industries here in Omaha was something I had never seen before.”

Group members also visited the headquarters of railroad titan Union Pacific’s and food producer Omaha Steaks.

Sameer Meralli, a master’s degree candidate at Harvard, said Warren was “a class act, eager to share his knowledge and impart his insights on everything from the credit markets, to bridge, to love, and to life.”