You're listening to TIP.

You're listening to TIP.

All right. So as you guys heard in the intro, we're going to be covering the top 10 questions that stick and I both heard during this past Berkshire Hathway shareholders meeting.

It was a great meeting as it always is. I really had fun. You know, the highlight for me is really kind of interacting with all the folks that come out for the meeting.

I think this year, how many do you think we had the team this year for the bar crawl and everything else stay? How many do you think we had?

We should probably have a calendar or something like that. I want to say that we're probably 200 people like when we're the most people.

Although two days just coming and going out of no 400.

Yeah, it was. It was busy and we had a blast meeting everyone. So anyone who came out just thank you so much for making the long trip out to Omaha.

I'm sure you, you know, 99% of it was coming to see Warren and Charlie. But the fact that you guys hung out with us a little bit was pretty awesome as well.

So without further delay, here's the questions we're going to play.

This question comes from Paul Speaker of Chicago Illinois. We've been maybe here today. He writes one of your more famous and perhaps most insightful quotes goes as follows.

Should you find yourself in a chronically leaking boat? Energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

In light of the unauthorized accounting scandal at Wells Fargo of its admission that it charged customers for duplicate auto insurance of its admissions that it wrongly finds mortgage holders in relations to missing deadlines caused by delays that were its own fault of its admission that it charged some customers and proper fees to lock in mortgage interest rates of the sanction placed to plan it by the Federal Reserve prohibiting it from growing its balance sheet and of the more than recent $1 billion penalty leveled by federal regulators for the aforementioned misbehavior.

If Wells Fargo company is a chronically leaking boat at what magnitude of leakage would Berkshire consider changing vessels?

Well, Wells Fargo. Wells Fargo is a company that proved the efficacy of incentives.

It's just that they had the wrong incentives and that was bad. But then they committed a much greater error.

I don't know exactly how or who did it or when but ignoring the fact that they had a faulty incentive system which was inciting people to do things that were kind of crazy like opening non-existent accounts etc.

And you know that is the cardinal incentive. Berkshire we know people are doing something wrong right as we said here at Berkshire.

You can't have 377,000 employees and expect that everyone is behaving like Ben Franklin or something out there.

I don't know whether they're 10 things being done wrong as we speak or 20 or 50. The important thing is we don't want to incenter any of that if we can avoid it.

And if we find that when we find it's going on we have to do something about it and that is absolutely the key to it.

And Wells Fargo didn't do it but Solomon didn't do it. And the truth is we've made a couple of our greatest investments where people have made similar errors.

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