What Morningstar Readers Would Ask Buffett

Spring is in the air: Tulips and pansies dot the landscape. The days are growing warmer and longer. Birds chirp musically, and new, green leaves stretch from tree branches. And--of course--Berkshire Hathaway's annual meeting is set to take place this weekend in Omaha, Nebraska.

As in years past, Morningstar.com will offer on-the-ground coverage of the event--jokingly dubbed "Woodstock for capitalists." Our analysts will be live-blogging the meeting and offering their insights, and we will conduct video interviews from the conference hall as well. You can find all of our real-time coverage, along with articles and video previews, here.

To help get the ball rolling, we recently asked Morningstar.com readers, "If you could ask Buffett and Munger any question about Berkshire, investing, or life generally, what would it be?" Readers had was a wide variety of queries. Some focused on Warren Buffett and Charlie Munger's succession plans, while others wondered about the duo's take on big-picture issues like the economy or market valuations. Still other respondents said they would ask questions about individual companies and investments.

What follows is a summary of the responses. You can read the full thread and weigh in here.

'The 10,000 foot view' Many readers said they would like to ask Buffett and Munger's opinion on the broad economic or market environment.

Specifically, Hobocon was one of several readers who would ask Buffett and Munger's opinion on Fed interest-rate policy.

"This long period of near-zero interest rates has deprived the risk-averse savers from keeping up with inflation and thus favors rich investors over fixed-income investors. Would it not be better to limit the Fed's [interest-rate range to] say 3%-7%, or should the Fed be dissolved altogether and let the free market set its own rate?" this reader asked.

"In the long term, do you think this ultra-low/accomodative policy is good for the economy? Isn't there a better way?" asked @ejantunes via Twitter.

Fee-OnlyAdvisor wondered whether Buffett has backed off his earlier-voiced concerns over the federal deficit. "In the past Mr. Buffett has expressed concerns about the deficit and debt. However, more recently it does not seem to be a major concern for him. If it is not a major concern now, could he explain why?"

"As employers and businessmen, how do you suggest we deal with the doubling of our increasingly automated and technological world's population in the next 20 years?" said Willbury.

Matthew9 asked: "With market valuations stretched, volatility historically low and margin leverage at an all-time high, would you recommend being more cautious than normal, considering the fact that a combination of such factors historically signals a very overbought market?"

'I would ask him a question that forces him to deal with the specifics of an investment.' Other respondents said that they would ask questions focused on individual companies or specific investments.

"If you had to put 100% of your money into one company/stock for the next decade, which one would it be and why?" StillBuyHold wondered.

Flashboy00

wanted to know more about what drove Buffett's conviction in

Mitch1017 asked, "If you were me (and therefore didn't know what you know about investing), which funds would you invest in as you were entering the withdrawal phase of life, at the start of retirement?"

"Can you provide examples of poor corporate governance that you would decline to support with Berkshire votes?" asked vandy73.

AndyWantsRetmnt

asked this question about

'When are you going to retire and hand the firm over to 21st century managers?' A few (capecod, quoted above) had questions about what they could expect Berkshire to look like in the future.

Intruder asked what Buffett's charitable donations of Berkshire stock will mean for Berkshire's ownership: "When are Buffett and Munger retiring and what is the succession plan given that all of Warren's investment in A shares will be inherited by the Bill and Melinda Gates foundation?" this reader asked. "Will Gates have effective control of Berkshire due to foundations ownership of 35% of class A shares since no one will own more shares?"

BMWLover wanted to know how Buffett and Munger "are ensuring that the investment philosophy they have employed in the past will be carried forward when they are no longer at the helm."

'What is the story on your taxes?' A couple of readers questioned whether Buffett is really putting his money where his mouth is when he's been critical of the U.S. tax system in the past. For instance, Buffett once famously pointed out that his tax bracket is lower than his secretary's (though this is often misquoted/misunderstood to mean that he pays less in taxes overall than his secretary does).

"Mr. Buffett has said he feels wealthy people such as he should pay more taxes. So does he donate money to the U.S. Treasury to raise his 'tax rate'? (They take checks.) Why has he chosen to leave his estate to the Gates foundation instead of the Treasury?" questions expaperworker.

'You could help investors with lower means.' Some respondents said that while they applaud Buffett's charitable giving and plans to bequeath a large part of his fortune to charity after he dies, perhaps he could do even more to help narrow the gap between the haves and the have-nots.

"I believe paying workers more now is … important and would like to see [Buffett and Munger] champion higher wages for workers at the lower end in corporations," said Alice2. "It would also stimulate the economy. Would they consider such a strategy?"

"Lower-income citizens do not have the savings or income necessary to invest in the stock market, and thus are not shareholders," said ronaldwest. "If companies fulfill their duty to shareholders, they are putting more money in the pockets of the wealthy. How can managers uphold their fiduciary duty, yet still narrow the wealth gap in America?"

Bighead asked: "As one of the richest people in the world do you think you do better job at creating jobs and giving people a better chance of doing well than the government can?"

Reader takeitez suggested that Buffett and Munger could help smaller investors succeed by "providing them with a 'Berkshire Guide to Investing Principles.' Let's say the top 10 numbers, ratios, whatever, to use for valuing a company's safety and growth, yield, etc., and where to find these, without having to pay much, or for free."