The "Woodstock of Capitalism": An Insiders' View

Roughly 50,000 people are expected to attend Berkshire Hathaway's annual meeting this weekend in Omaha, Nebraska. Topics on investors' minds include news that Berkshire has been lobbying to block one aspect of proposed financial reform -- rules pertaining to existing derivative contracts; the company's first-ever stock split; its holdings in the suddenly controversial Goldman Sachs; and its acquisition of the nation's second-largest railroad.

On a less serious note, the shareholder meeting is a unique, annual confab for investors, authors, politicians, and young college students looking for some career/life guidance.

Often described as a "Woodstock for capitalists," the weekend kicks off with about 1,000 folks converging on the local Dairy Queen in Omaha. "It's a madhouse," says Jeff Matthews, founder of Ram Partners and author of "Pilgrimage to Warren Buffett's Omaha."

"And a few hours after that, people start lining up at the door to the Qwest Center to be first in line when the doors open at 7 a.m." Saturday for the annual meeting, says fellow guest Laura Rittenhouse, author of "Buffett's Bites," a new book on the wisdom in Buffett's 30 years of shareholder letters. Both authors will be in Omaha this weekend.

The weekend features events at local standbys including the Nebraska Furniture Mart and Gorat's Steakhouse. (Omaha.com features a schedule of Berkshire events including a "Tweetup" or meet-and-greet of online friends and Twitter followers.)

Buffett's marketing genius. Of course this is all part of Buffett's genius, as Henry discusses in the accompanying segment. Thousands -- on their own dime -- travel to Omaha to attend a for-profit company's marketing event. 

But amid all the folksy photo opportunities and hand-shaking, "there's a pecking order," says Matthews, author of the popular blog, "Jeff Matthews Is Not Making This Up." 

There's always a pecking order. That pecking order can be determined by your wealth and how long you've been a shareholder. Benefits include better seats, private parties -- better access to Buffett and Munger.  "It's democracy -- with a small 'd,' " says Rittenhouse.

One year, Matthews says he waited at the private airport side of Eppley Airfield in Omaha. "Private plane, after private plane, after private plane coming in. It is astonishing how much money flies into that city for the weekend."

So what's the takeaway? Beyond the marketing event that is the weekend gathering, both authors say the annual pilgrimage is worth the time and money.

The shareholder meeting attracts investors from around the globe. "It's extraordinary the reach of Buffett," Rittenhouse said.

A 'powerful' sermon. Matthews says the Q&A session is a highlight for him -- watching both Buffett and Munger apply their guiding principles to each, individual question. (Click here to view top questions for Buffett or Charles Munger that made Jeff's cut this year. He'll submit the questions to NYT's Andrew Ross Sorkin, who in turn will ask them during the much-anticipated Q&A session.)

"Do the right thing. Look for value. And buy and hold" is their message, Matthews says. But, "it's the difference between reading a sermon on paper and actually hearing it in person. It's very powerful. Any CEO and anyone who serves on a board of directors should go just once."

Earlier:

• Why is Warren Buffett trying to block regulation reform?
• Four companies that might be on Warren Buffett's shopping list