Every year Warren Buffett auctions off a lunch for the benefit of charity. Investors bid for the chance to have lunch with Buffett and the price has gotten rather high. Lunch with Warren Buffett recently went for over $2 million dollars this year. It is a great chance for an investor to pick the brains of the Oracle of Omaha. While investors cannot get specific stock tips, they can ask him a few questions. Here are a few of the questions that I think the winner should ask of Buffett.
5 Questions For Warren Buffett
What is your outlook on the U.S. economy?
There are a lot of divergent opinions on the outlook for the United States economy. Some economists see a period of slow prolonged growth while others see the economy going through a double dip recession. It would be interesting to get Buffett’s opinion. He was right when he wrote his Op-Ed column, Buy American I Am in 2008. Investors who bought during the market crash have seen their portfolios rise in value.
Would you put fresh capital to work here or overseas over the next decade?
It would be great to get Buffett’s opinion on the best markets for growth for the future. Buffett has made it clear that he is bullish on the South Korean market but investors do not know where he stands on other foreign markets. Does Buffett think that the BRIC (Brazil, Russia, India, China) nations still have room for growth or will these markets start to contract? Many of Buffett’s optimistic calls in the past were dead on.
What is the single most important ratio to you?
Buffett has a number of different criteria that he uses to invest in a stock. It would be great to know which one gets the greatest weighting in his selection process. Most investors place a premium on the P/E ratio. Does Buffett do the same or does he find some other metric more important? Are future cash flows or earnings growth more important to Buffett?
Who do you consider the 2nd greatest living investor after you?
Warren Buffett is often cited as the world’s greatest investor because his investing decisions have given him a $50 billion dollar net worth. Buffett often credited Benjamin Graham for helping to shape his investing strategy. Since Graham has passed, who does Buffett think is the best investment manager today? Buffett may not manage portfolios at his investment partnership anymore but an investor can always place their money with his favorite pick.
Could you have achieved the same results if you were just starting today?
Buffett’s investment returns are what has made him famous over the last half a century. He was able to invest during a time period in which the stock market experienced booming returns. The growth of the American economy created lots of millionaires and billionaires during the time period. Could a young Warren Buffett had reached billionaire status investing from 2011 to 2051 as the Buffett that invested from 1956 to 2006?
What questions would you ask of Warren Buffett is you had won the $2 million dollar lunch auction?