#33 Adam Mead: The Complete Financial History of Berkshire Hathaway

Adam Mead is the CEO and CIO at Mead Capital Management and author of 'The Complete Financial History of Berkshire Hathaway'. The book sits at 700+ pages, making it one of the most comprehensive accounts of Warren Buffett’s creation to date. In the episode, we discuss successful capital allocation, accounting as the language of business, and why Berkshire should not be split up.

We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on September 7, 2022.

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Episode Chapters

(00:00) Intro by Eddie

(00:23) Introduction to Adam

(04:24) How the book came about

(09:18) Interesting lessons from writing the book

(16:08) Patience is a virtue

(17:49) Growth CapEx vs Maintenance CapEx

(26:52) The main sources of growth during the formative years

(28:40) The acquisitions that “moved the needle”

(34:57) Why Berkshire shouldn’t be split up

(40:19) Lessons on inflation

(43:30) Adam’s personal career

(45:13) An investor’s habits

(56:42) Adam’s cognitive biases

(59:06) The language of business

(01:10:44) Book recommendations

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Books Mentioned

• The Complete Financial History of Berkshire Hathaway - Adam Mead
• The Warren Buffett Way - Robert Hagstrom
• Poor Charlie’s Almanack - Peter Kaufman
• Seeking Wisdom - Peter Bevelin
• Leonardo da Vinci - Walter Isaacson
• Manias, Panics, and Crashes - Charles Kindleberger

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Companies Mentioned

• Berkshire Hathaway
• National Indemnity
• Geico
• Apple
• The Washington Post
• Scott Fetzer
• Berkshire Hathaway Energy
• BNSF
• See’s Candies
• Markel Capital
• Alleghany Corporation
• Fairfax
• Boston Beer Company
• Heineken
• Anheuser-Busch Inbev
• Jack Henry
• Fastenal

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More on Adam

Mead Capital Management - https://meadcm.com/

The Oracle’s Classroom - https://theoraclesclassroom.com/

Twitter - https://twitter.com/BRK_Student

Book recommendations - https://theoraclesclassroom.com/books/

Watchlist Investing (10% discount with code Redeye) - https://watchlistinvesting.com/

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se