KU class offers advice to Buffett

Billionaire to give students shares of company if he buys into presentation

Jordan Samples had some extra incentive during a business presentation Friday.

He and his classmates were trying to convince Warren Buffett, chairman and CEO of Berkshire Hathaway Inc. holding company, to purchase Les Schwab Tires, a car service company in the Pacific Northwest.

After the presentation, the investment guru offered to give a B-share of his company, worth nearly $2,800, to each of the more than 100 students in attendance if he decides to buy Les Schwab Tires in the next year.

“I’d probably just frame it and put it on the wall,” said Samples, a senior from Leawood. “That’d be a company I’d hold forever.”

The students met with Buffett, the world’s second-richest man, for about two hours Friday at the Berkshire Hathaway headquarters in Omaha, Neb. About 90 minutes of that was a question-and-answer session with Buffett, followed by the presentation from students enrolled in a KU security analysis class.

The meeting was set up by Mark Hirschey, the KU professor who teaches the class. He said he was inspired by news of other university students who had gotten Q&A sessions with Buffett.

Les Schwab Tires, based in Prineville, Ore., has about 365 sites in Alaska, California, Idaho, Montana, Nevada, Oregon, Utah and Washington.

“They have a very unique profit-sharing program,” said Hilla Rantala, a doctoral candidate from Finland. “Since the beginning, the owner shares half of the profits with employees. With that kind of profit-sharing program, they have incredible customer service, which gives them a competitive advantage.”

Berkshire Hathaway Inc. Chairman and CEO Warren Buffett plays a hand of bridge with Berkshire Hathaway shareholders Sunday in Omaha, Neb.

Students said the 74-year-old Buffett gave no indication whether he would purchase Les Schwab Tires, though he did say he was aware of the company. A Les Schwab Tires spokesman could not be reached for comment about the presentation or prospects for a possible sale to Berkshire Hathaway.

“I don’t know if the chances are too great,” said Eli Beracha, a doctoral student from Israel. “Warren Buffett is following almost every successful business in the United States. If he wanted to buy it, he already would have bought it. But it would definitely be nice, getting a B-share from Warren Buffett. I’d never sell it.”

Most of the students who attended Friday’s meeting also went to Omaha last weekend for the Berkshire Hathaway annual meeting, which drew about 19,000 shareholders and guests.

“It was outstanding,” said Paul O’Connell, a master’s student from Olathe. “We all went to the annual meeting last week and got good seats. But this was a lot more personal, to see what he’s really like. He’s just like your grandfather giving you advice.”