Berkshire Sections 2014 by Omaha World-Herald

CHANGE OF DRIVERS AT FORD: CEO WHO ENGINEERED THE AUTOMAKER’S TURNAROUND IS RETIRING. PAGE 3D

MONEY

FRIDAY, MAY 2, 2014

SECTION D

Hudl to use $10,000 bonuses to help fill new Omaha jobs

MID-AMERICAN BUSINESS CONDITIONS INDEX

Economic indicator at highest level in 3 years

BY PAIGE YOWELL WORLD-HERALD STAFF WRITER

Hudl, a sports video editing software company based in Lincoln, plans to open an ofﬁce in Omaha’s Old Market — and hopes to help staff it by offering $10,000 bonuses to new hires in May. Hudl co-founder David Graff said the expansion to Omaha was all about recruiting talent. The company hopes to double its product team of about 52 Web developers, designers, quality assurance analysts and project managers by the end of the year. The company

employs about 127 full-time people and 21 interns, Graff said, including remote employees in New York, California and Texas. “Whether that growth occurs in Lincoln or Omaha doesn’t really matter to us,” Graff said, adding that he sees a lot of potential for recruiting in Omaha, with a larger talent pool, universities and established businesses. Hudl, launched in 2006, provides Web-based video editing and other services for high school, college and professional sports teams. The company’s football clients in-

clude the University of Nebraska-Lincoln, and it plans to expand in the basketball market. It also plans to develop more tools specific to the needs of soccer and volleyball programs and individual sports like diving and golf, a press release said. Last fall, Hudl held its first hiring event in Omaha, saying it was recruiting here because about 10 percent of its workforce commutes from Omaha. The new office, about 8,000 square feet at 1013 Jones St., initially will be staffed by a handful of those Omaha employees, Graff said.

Construction on the new space, formerly occupied by Nomad Lounge, will begin later this month with a goal of completing by August. “The shell of it was what we were most attracted to, and the ﬂexibility for us to build out,” Graff said. He said the company was attracted to the Old Market because it had a similar feel to its ofﬁce in Lincoln’s Haymarket. An open house will be held in the new space May 8 from 11 a.m. to 1 p.m. and 5 p.m. to 6:30 p.m.

BY STEVE JORDON

WORLD-HERALD STAFF WRITER

A leading economic indicator for the Midwest hit its highest level in three years, accompanied by its highest inﬂation marker since March 2012. The survey-generated MidAmerican Business Conditions Index, which assigns a number based on the responses of supply managers in nine states, rose to 60.4 for April from 58.2 in March on a 100-point scale, said Creighton University economist Ernie Goss. Numbers above 50 indicate economic growth. Goss said the region is following the same path as the national economy, continuing to expand “with growth prospects improving monthly.” The survey’s inﬂation index, which tracks the cost of raw materials and supplies, hit 75.9, up from 72.8 in March. The managers said they expect their product prices to increase by 2.4 percent this year. A year ago they expected a 2 percent rise. Goss said such See Index: Page 2

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

Value investors take it all in

RETAIL WRAP-UP

Old Navy outlet store set to open in Gretna BY JANICE PODSADA WORLD-HERALD STAFF WRITER

CHRIS MACHIAN/THE WORLD-HERALD

The Old Navy outlet store at Nebraska Crossing Outlets in Gretna opens for business Saturday at 9 a.m. A ribbon-cutting ceremony will be held at 8:45 a.m. The ﬁrst 300 customers through the door will receive a free tote bag. The grand-opening event will feature face painting, cotton candy, popcorn, balloons and music. The Old Navy outlet will be open until 9 p.m. Saturday.

Companies ‘a perfect ﬁt’ Bergman Incentives, an Oma-

Robert Miles’ “Genius of Warren Buffett” class at UNO this week drew people from all over, including, at top from left, Mboyo Vangu, Adrian Barkla and Mark O’Hare.

Omaha draws those eager to get in touch with ‘the real spirit of Berkshire’ BY RUSSELL HUBBARD ONLY IN THE WORLD-HERALD

Baseball has Cooperstown. The cinema world has Cannes; classical music, Vienna. And value investing, the investment discipline closely associated with Warren Buffett and Berkshire Hathaway, has found its spiritual home for many recent

years on the banks of the Missouri River in Omaha. For days surrounding Berkshire Hathaway’s annual meeting on Saturday, Omaha is a mecca for value-themed conferences, satellite meetings and encounter groups. The week has become a convention of sorts for the worldwide legions of value investors, the buy-and-hold aﬁcionados

who believe share purchases are for life and human prosperity and, therefore, stock markets are just scratching the surface of their long-term potential. For some people, it is an all-encompassing world view that includes investing, philosophy and social aspects. “For us, this was a bucket-list item,” See Value investing: Page 2

See Retail: Page 2

BUSINESS BRIEFS

MARKET WATCH Dow Industrials

Bloomberg Midlands

16,558.87 (-21.97)

S&P 500

704.59 (-3.04)

Crude oil (NYMEX)

1,883.68 (-0.27)

NASDAQ 4,127.45 (+12.89)

99.42 (-0.32) The World-Herald 150, Page 2D

OMAHA.COM/MONEYTALKS

Keep up with the latest news on our business blog.

OYSTER PERPETUAL YACHT-MASTER II

Level 3 reports quarterly proﬁt Exxon Mobil’s proﬁt drops

T-Mobile outpaces rivals

Microsoft releases security update

Colorado ﬁber-optic company Level 3 Communications, which started in Omaha and has shareholders here, reported net income of $112 million, or 47 cents a share, in the ﬁrst three months of this year, compared with a loss of $78 million, or 36 cents a share, in the same period a year ago. Revenue increased 2 percent to $1.6 billion.

T-Mobile US Inc. added more subscribers in the ﬁrst quarter than AT&T Inc. and Verizon Communications Inc. combined, heightening the carrier’s allure as Sprint Corp. pursues a merger. Promotions and cheaper plans helped T-Mobile add 1.3 million new monthly subscribers in the period, more than the 1.16 million customers AT&T and Verizon added combined.

Microsoft on Thursday released a security update for Internet Explorer that closes a gap that allowed attackers to take control of a computer. It issued the update to Windows XP users, despite dropping support for the older operating system last month. The company said users with automatic updates enabled don’t need to take any action. — From wire reports

Exxon Mobil said Thursday that its net income fell 4 percent in the fourth quarter as it produced less oil and natural gas and posted weaker reﬁning results. Cost-cutting and higher prices for its oil and gas helped the company beat the expectations of analysts. Exxon earned $9.1 billion in the ﬁrst three months of the year on revenue of $106.77 billion.

rolex oyster perpetual and yacht-master are trademarks.

MONEY

• FRIDAY, MAY 2, 2014

Coca-Cola says pay plan has ﬂexibility Buffett has criticized the company’s stockcompensation program BLOOMBERG NEWS Coca-Cola Co., facing criticism of its stock-compensation program from investor Warren Buffett, said the plan offers “maximum ﬂexibility” for future adjustments, but no changes are now in the works. Although Buffett abstained from voting against the pay proposal at Coca-Cola’s shareholder meeting last week, he criticized the plan after it passed. Buffett said at the time that his loyalty to the company kept him from voting against the measure. The Wall Street Journal reported this week that pressure from Buffett would probably prod Coca-Cola to revise the pay plan before it

goes into effect next year. “No changes are being made to the plan at this time,” said Petro Kacur, a Coca-Cola spokesman. David Winters, a shareholder in Coca-Cola and Buffett’s Omaha-based Berkshire Hathaway, had called on Buffett to oppose the pay plan, saying it violates the billionaire’s principles on stock dilution. The measure passed with 83 percent of the votes cast. “No matter how you slice it or dice it, Buffett reached the same conclusion that we did — the plan is excessive,” Winters said. Berkshire controls the largest stake in Coca-Cola, with 9.1 percent of shares. Winters has said the latest equity plan, plus ones already enacted, could transfer $29.8 billion to the Coca-Cola managers, harming shareholders.

Berkshire acquires energy company

Berkshire Hathaway has agreed to buy SNC-Lavalin Group’s AltaLink, the operator of electric transmission lines in Canada, as Warren Buffett’s company expands its investment in energy. Gross proceeds to SNCLavalin from the sale will be about $2.96 billion, the Montreal-based seller said. Buffett’s power unit, renamed this week as Berkshire Hathaway Energy, has been expanding through acquisitions under CEO Greg Abel. AltaLink will operate under its current name as a separate company within the Berkshire energy unit and will continue to be headquartered in Calgary, according to the statement. — Bloomberg News

Value investing: Popular topic of visitors Continued from Page 1

said first-time visitor Roelf Alberts, in town from South Africa to attend the three-day “Genius of Warren Buffett” class taught by University of Nebraska at Omaha adjunct faculty member Robert Miles. “We plan to make it an annual event,” Alberts said. “You get the real spirit of Berkshire by actually being here.” Professional money manager Alberts attended with his wife, Ilze, a behavioral psychologist who is making a study of value investors (“humble, patient, able to delay gratification”). They are already familiar with many of the sites on the pilgrims’ trail, with dinner Wednesday at Buffett favorite Gorat’s, the Center Street steakhouse. The UNO class attracted about three dozen people from six continents and 16 foreign nations, mostly seasoned adults. They were there, well, to be there. “Lifelong learners is what we call them,” said Miles, who has taught the class since 2011. Topics included “the Oracle of Omaha’s educational timeline, investment principles, management philosophies, corporate governance, succession plan, mistakes, philanthropy and more,” according to the class marketing materials. Miles acknowledges that while successfully investing is extremely difficult, there is nothing intellectually challenging about value investing’s basics — buying shares at an attractive price based on the present value of estimated future earnings, finding companies with honest leaders and a competitive advantage to protect from cut-price newcomers. “It is not complicated,” Miles said. UNO’s business college is also sponsoring a two-day value investing panel that started Thursday. Heavy hitters on the speaking roster include money managers from around the world who are imbued with the Buffett value philosophy, which the Berkshire CEO learned in the 1940s under Columbia University professor Ben Graham, the discipline’s most revered forefather. There are other methods of investing, but they tend to appeal to a different type of personality than that attracted to value investing. There is growth investing for those who bet on the unproven but promising, technical for people who like to chart the direction and velocity of the markets for hidden signs and signals, even short selling for those who believe stocks will fall and profit

VALUE-INVESTING EXPERTS Notable value-investing experts are in town for Berkshire Hathaway’s annual meeting week. At the University of Nebraska at Omaha’s 11th annual Value Investor Conference: >> Tom Gayner, president and chief investment officer, Markel Corp. >> Megh Manseta, founder and asset allocator, Manseta Family Office >> Sarah Ketterer, CEO and fundamental portfolio manager, Causeway Funds >> Ron Mulhenkamp, president, Mulhenkamp Fund >> Bill Nygren, portfolio manager, Oakmark Funds At Creighton University’s Value Investment Panel and related events: >> Robert Cialdini, author, “Influence: The Psychology of Persuasion” >> Patrick Brennan, Portfolio Manager at Hutchinson Capital Management >> Paul Schwarzbach, founder, Allied Value LLC >> Vitaliy Katsenelson, chief investment officer at Investment Management Associates >> Mark Wynegar, partner, Tributary Capital Management >> Paul Allard, portfolio manager at Antares

when they do. “That’s no way to live,” said Tom Gayner, a speaker at the UNO panel and famed value investor, referring to living and dying with each tick of the stock market. “People tend to be happier and wealthier with a value-based outlook.” Gayner is the investing chief at Virginia-based Markel Corp. Markel is a Berkshire-like company. Money for stock market investments and purchase of whole companies is provided by proﬁtable insurance subsidiaries in the form of premiums paid in but not paid out to settle claims. Markel’s $17.6 billion stock portfolio, managed by Gayner, rose 33 percent last year, just beating the Standard & Poor’s 500. He has been coming to Omaha for almost 25 years on value quests. For him, it is a philosophy, and Omaha its wellspring. “The way people do business is just a manifestation of a wider world view,” said Gayner over breakfast at an Omaha diner Thursday. “It is one way in which our human natures play out.” Gayner started coming to Berkshire annual meetings in 1990 — Markel is a big shareholder. A lunch Gayner had that year with a few like-minded folks turned into a bigger gathering the next. And the next. Value investors love to talk to one another about their passion and outlook on the world, which is cheerfully optimistic on the social and economic prospects

of people who are free to innovate and cooperate. “People best get ahead by helping others,” said Gayner, proud to be called a “perma-bull,” or permanently bullish investor. “With value investing, you kind of either get it right away or you don’t.” Those modest early Markel lunches have turned into a major event. About 600 people are expected for this year’s Markel brunch Sunday at the Hilton Omaha across the street from the CenturyLink Center. The meeting follows a Berkshire-style format, with Gayner and other executives taking audience questions. “We started out coming to Omaha to cultivate special relationships,” Gayner said. “Having long-term business horizons requires shareholders who understand that, and we figured Omaha was a good place to find them.” There are plenty of budding Gayners in Omaha. Some of them are at Creighton University, also a longtime participant in Berkshire week. The Heider College of Business is sponsoring a variety of events, including its own value-investing panel discussion, this one involving the student-run portfolio, an actual fund with $5 million in it that is invested by business majors under faculty and professional guidance. Holdings include Berkshire and a slew of Buffett favorites, past and present — Exxon Mobil, McDonald’s, Johnson & Johnson. Presented in a brochure that captures true Berkshire annual report style, the holdings were amassed at a cost of $4.3 billion and had a year-end market value of $5.2 billion, for a Buffett-like gain of 21 percent. “I would say value is the dominant approach among Creighton finance majors,” said Sean Gill, a student in the business school who works on the fund. “There is still plenty of value out there, even among blue chips.” About 400 people are expected for the student-organized Value Investing Panel at Creighton on Sunday, said Minnesota native Gill, who, like many biz school undergrads, already has a job lined up and waiting upon graduation next year, so hungry are the world’s companies for young people with finance expertise. “Value investing and Omaha?” Gill said. “Sure, it makes perfect sense. We’ve got Berkshire, we’ve got Buffett, we have a great deal of success associated with all of it.” Contact the writer: 402-444-3133, russell.hubbard@owh.com

Index: Managers’ outlook up from March Continued from Page 1 responses may encourage the Federal Reserve to reduce its economic stimulus policies, resulting in interest rate increases in the months ahead. The survey’s employment index was 54.2, down slightly from 54.4 in March, above the 50-point growth threshold for the fourth straight month. Goss said manufacturers are adding jobs “at a healthy pace” and

should continue in the months ahead. “There are more workers employed in the nine-state region than ever,” he said. States included in the survey are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. The managers’ outlook for the coming six months resulted in a 64.2 conﬁdence index, up from 59 in March. Goss cited

the improved job market and reduced uncertainty about the Affordable Care Act as reasons for the increase. Iowa’s Business Conditions Index was 67.2, unchanged from March, with improved new orders, production or sales, delivery lead time, employment and inventories. Nebraska’s index was 55.1, up from 54.8 in March, with improvements in the same components as Iowa.

OMAHA WORLD-HERALD

StocksRecap Vol. (in mil.) Pvs. Volume Advanced Declined New Highs New Lows

HIGH

NYSE

NASD

3,295 3,585 1778 1338 133 35

2,012 2,002 1246 1344 60 70

DOW DOW Trans. DOW Util. NYSE Comp. NASDAQ S&P 500 S&P 400 Wilshire 5000 Russell 2000

16604.79 7749.79 556.69 10647.79 4149.56 1888.59 1365.54 20034.20 1133.73

LOW

16525.25 16558.87 7675.06 7719.02 550.12 555.54 10595.66 10629.34 4105.61 4127.45 1878.04 1883.68 1350.76 1358.57 19899.06 19976.54 1114.29 1125.97

CHG.

%CHG.

-21.97 +46.83 +1.96 +2.16 +12.89 -0.27 +2.61 +16.70 -0.89

-0.13% +0.61% +0.35% +0.02% +0.31% -0.01% +0.19% +0.08% -0.08%

WK MO QTR YTD s s s s t s t s t

t s s s t t t t t

The World-Herald 150 NAME

TKR

LAST

AT&T Inc Abbott Labs Adobe Systems Alcatel-Lucent Alcoa Inc Alliant Energy Altera Corp Altria Group Ameren Corp Amer Fst Multifamily American Airlines Gp Amer Elec Power Anadarko Petrol Aon plc Apache Corp Apple Inc Applied Matls Aqua America Inc Arch Dan Mid BP PLC Ballantyne Strong Bank of America Becton Dickinsn Berkshire Hath A Berkshire Hath B Black Hills Corp Block H&R Boeing Co Brist Myr Sqb Buckeye Part Buckle Inc CME Group CSG Systems Int CSX Corp CVS Caremark Corp Cabelas Inc Caseys Gen Store Caterpillar Inc CenturyLink Inc Chevron Corp Cisco Syst Citigroup Clorox Co CocaCola Co Comcast Corp A ConAgra Foods ConocoPhillips Con Edison Corning Inc Costco Wholesale Covidien PLC DTE Energy Co Deere Co Disney Dominion Resources Dow Chemical DuPont Duke Energy EMC Corp Edison Intl Emerson Elec Energizer Hold Exelon Corp Exxon Mobil Corp FedEx Corp Ford Motor Gen Dynamics Gen Electric General Motors Co Google Inc A Gordmans Stores Green Plains Renew Harley Davidson Hartford Fn Sv Hershey Company Hewlett Packard Hormel Foods

T 35.58 ABT 38.67 ADBE 62.59 ALU 3.90 AA 13.64 LNT 58.78 ALTR 32.08 MO 39.83 AEE 41.29 ATAX 6.01 AAL 36.39 AEP 53.87 APC 99.55 AON 85.39 APA 87.04 AAPL 591.48 AMAT 18.88 WTR 25.36 ADM 43.24 BP 50.40 BTN 4.55 BAC 15.09 BDX 111.59 BRK/A 193483 BRK/B 129.06 BKH 57.81 HRB 28.81 BA 128.46 BMY 49.52 BPL 76.34 BKE 46.88 CME 70.68 CSGS 26.07 CSX 27.87 CVS 73.09 CAB 65.56 CASY 68.41 CAT 105.07 CTL 34.96 CVX 124.94 CSCO 23.01 C 47.76 CLX 89.40 KO 40.78 CMCSA 52.11 CAG 30.44 COP 75.03 ED 58.08 GLW 21.06 COST 115.56 COV 71.46 DTE 78.19 DE 93.22 DIS 79.56 D 72.48 DOW 48.71 DD 66.76 DUK 74.58 EMC 25.62 EIX 56.70 EMR 67.99 ENR 113.96 EXC 35.99 XOM 101.41 FDX 136.24 F 15.91 GD 109.77 GE 26.77 GM 34.90 GOOGL538.53 GMAN 4.39 GPRE 28.87 HOG 72.99 HIG 35.86 HSY 96.04 HPQ 32.64 HRL 47.61

YTD VOLUME CHG %CHG (00s) PE DIV -.12 -.07 +.90 ... +.17 +.30 -.44 -.28 -.02 ... +1.32 +.06 +.53 +.51 +.24 +1.39 -.18 +.27 -.49 -.22 +.03 -.05 -1.44 +208 +.21 +.06 +.39 -.56 -.57 +.13 -.11 +.29 -.29 -.35 +.37 -.05 -.25 -.33 +.05 -.58 -.10 -.14 -1.30 -.01 +.35 -.07 +.72 +.05 +.15 -.12 +.21 +.05 -.12 +.22 -.06 -1.19 -.56 +.09 -.18 +.14 -.19 +2.27 +.96 -1.00 -.01 -.24 +.32 -.12 +.42 +3.65 -.10 -1.03 -.95 -.01 -.20 -.42 -.08

+1.2 +.9 +4.5 -11.4 +28.3 +13.9 -1.3 +3.8 +14.2 -4.5 +44.1 +15.3 +25.5 +1.8 +1.3 +5.4 +6.8 +7.5 -.4 +3.7 -1.7 -3.1 +1.0 +8.8 +8.9 +10.1 -.8 -5.9 -6.8 +7.5 -10.8 -9.9 -11.3 -3.1 +2.1 -1.7 -2.6 +15.7 +9.8 ... +3.4 -8.3 -3.6 -1.3 +.3 -9.7 +6.2 +5.1 +18.2 -2.9 +4.9 +17.8 +2.1 +4.1 +12.0 +9.7 +2.8 +8.1 +1.9 +22.5 -3.1 +5.3 +31.4 +.2 -5.2 +3.1 +14.9 -4.5 -14.6 -4.0 -42.8 +49.0 +5.4 -1.0 -1.2 +16.7 +5.4

269,844 34,767 28,051 35,261 111,105 7,854 56,824 110,575 13,907 1,437 112,459 32,385 23,677 13,396 35,664 84,782 144,386 4,265 28,619 31,597 110 661,509 10,479 2 25,479 2,881 31,039 27,047 86,445 2,199 4,355 29,070 3,065 68,302 68,195 7,266 1,732 23,567 26,419 62,103 171,945 104,387 23,305 149,532 133,403 18,086 57,582 23,098 82,693 11,526 17,231 6,368 21,341 61,665 15,333 83,433 29,849 21,691 155,538 15,253 20,232 16,906 117,964 107,852 7,751 299,529 18,139 237,055 175,504 19,834 592 11,962 14,335 52,799 9,658 86,032 3,714

11 1.84 24 .88f cc ... ... .18e 44 .12 18 2.04 24 .60 18 1.92 35 1.60 15 .50 dd ... 16 2.00 63 .72 25 1.00f 16 1.00f 14 13.16f 48 .40 20 .61 20 .96 12 2.28 25 ... 20 .04 24 2.18 16 ... 16 ... 26 1.56 35 .80 22 2.92 28 1.44 49 4.35f 14 .88 24 1.88f 17 .60 15 .64f 19 1.10 23 ... 20 .72 18 2.40 dd 2.16 11 4.28f 15 .76f 11 .04 21 2.84 22 1.22f 19 .90f 16 1.00 12 2.76 16 2.52 17 .40 26 1.42f 20 1.28 18 2.62 10 2.04 22 .86f 21 2.40f 13 1.48f 21 1.80 20 3.12 20 .46f 22 1.42 19 1.72 18 2.00 17 1.24 11 2.76f 26 .60 10 .50 16 2.48f 20 .88 14 1.20 16 ... 10 3.60e 13 .16 21 1.10 10 .60 27 1.94 12 .64f 23 .80

NAME

TKR

LAST

Intel Corp IBM JPMorgan Chase & Co Johnson & Johnson Kellogg Co Kimberly Clark Kinder Morg Engy Kraft Foods Group Level 3 Commun Lindsay Corp Macy’s Inc Martha Stewart Liv McDonalds Corp Merck & Co MetLife Inc Microsoft Corp Mondelez Intl Monsanto Co Mosaic Co NCR Corp Nelnet Inc Nucor Corp OGE Energy Occid Petl ONEOK Partners LP Oracle Corp Oshkosh Corp Otter Tail Corp PG&E Corp PepsiCo Pfizer Inc Potash Corp Principal Fncl Grp Procter & Gamble Prudential Fncl Qualcomm Inc Royal Dutch Shell A Schwab Corp Smucker, JM Southern Co Stryker Corp Suntrust Bks Sysco Corp TD Ameritrade Hldg Target Corp 3M Company Time Warner Toyota Mot Travelers Cos 21st Century Fox B Tyco Intl Ltd USG Corp Union Pacific Corp UPS class B US Bancorp Utd Technologies Valero Energy Valmont Ind Verizon Comm Visa Inc WalMart Strs Walgreen Co Watsco Inc WellPoint Inc Wells Fargo & Co Werner Enterp West Corp Westar Energy Inc Western Union Co Whirlpool Williams Cos Windstream Hldgs Yahoo Inc Yum! Brands Inc Zimmer Holdings

INTC IBM JPM JNJ K KMB KMP KRFT LVLT LNN M MSO MCD MRK MET MSFT MDLZ MON MOS NCR NNI NUE OGE OXY OKS ORCL OSK OTTR PCG PEP PFE POT PFG PG PRU QCOM RDS/A SCHW SJM SO SYK STI SYY AMTD TGT MMM TWX TM TRV FOX TYC USG UNP UPS USB UTX VLO VMI VZ V WMT WAG WSO WLP WFC WERN WSTC WR WU WHR WMB WIN YHOO YUM ZMH

26.45 193.53 55.72 100.53 65.37 111.23 75.38 56.69 42.80 88.12 56.93 3.95 100.96 59.62 51.57 40.00 35.63 110.24 49.82 30.50 41.93 51.89 36.95 94.99 57.08 40.97 54.94 29.36 45.75 85.57 31.15 36.25 46.50 82.34 81.17 78.99 79.05 26.58 97.17 45.22 77.43 37.96 36.20 31.91 61.74 140.81 66.87 109.73 90.83 31.69 40.77 29.80 188.80 98.11 40.37 116.80 57.71 148.80 47.22 206.09 79.70 69.43 102.32 100.77 49.64 25.64 24.28 35.85 15.85 152.20 43.27 9.16 36.51 76.25 97.50

YTD VOLUME CHG %CHG (00s) PE DIV -.24 -2.94 -.26 -.76 -1.46 -1.02 ... -.17 -.23 -.01 -.50 +.04 -.42 +1.06 -.78 -.40 -.02 -.46 -.22 -.01 -.33 +.14 -.38 -.76 +.09 +.09 -.57 +.06 +.17 -.32 -.13 +.09 -.34 -.21 +.49 +.28 +.31 +.03 +.49 -.08 -.32 -.30 -.23 +.01 -.01 +1.72 +.41 +1.31 +.25 +.37 -.13 -.06 -1.63 -.39 -.41 -1.53 +.54 -.11 +.49 +3.48 -.01 +1.53 -.59 +.09 ... +.04 +.16 -.03 -.02 -1.18 +1.10 +.09 +.56 -.74 +.70

+1.9 +3.2 -4.1 +9.8 +7.0 +6.5 -6.5 +5.2 +29.0 +6.5 +6.6 -6.0 +4.1 +19.1 -4.4 +6.9 +.9 -5.4 +5.4 -10.5 -.5 -2.8 +9.0 -.1 +8.4 +7.1 +9.1 +.3 +13.6 +3.2 +1.7 +10.0 -5.7 +1.1 -12.0 +6.4 +10.9 +2.2 -6.2 +10.0 +3.0 +3.1 +.3 +4.1 -2.4 +.4 -4.1 -10.0 +.3 -8.4 -.7 +5.0 +12.4 -6.6 -.1 +2.6 +14.5 -.2 -3.9 -7.5 +1.3 +20.9 +6.5 +9.1 +9.3 +3.9 -5.6 +11.4 -8.1 -3.0 +12.2 +14.8 -9.7 +.8 +4.6

192,898 35,675 121,586 62,844 35,890 16,392 8,199 25,929 24,614 1,311 39,751 4,898 33,306 111,445 84,751 283,685 51,340 25,034 12,223 33,911 1,210 11,305 11,806 29,586 1,512 135,529 7,685 1,373 23,920 36,966 389,345 61,515 10,516 50,884 16,257 69,154 50,943 54,015 4,328 58,992 11,309 38,955 22,978 22,675 35,219 38,870 53,712 3,137 26,959 70,327 23,377 24,883 12,849 23,170 55,277 39,903 58,908 2,292 219,196 34,779 49,484 76,680 1,787 21,684 108,357 5,470 992 11,575 69,340 7,370 61,523 72,386 193,022 29,248 19,028

.90 4.40f 1.60f 2.80f 1.84 3.36 5.52f 2.10 ... 1.04f 1.00 ... 3.24 1.76 1.40f 1.12 .56 1.72 1.00 ... .40 1.48 .90 2.88 2.98f .48 .60 1.21f 1.82 2.27 1.04 1.40 1.28f 2.57f 2.12 1.68f 3.60 .24 2.32 2.10f 1.22 .80f 1.16 .48a 1.72 3.42f 1.27f 2.54e 2.20f .25 .72 ... 3.64f 2.68f .92 2.36 1.00 1.00 2.12 1.60 1.92f 1.26 2.40f 1.75f 1.40f .20 .90 1.40f .50 3.00f 1.61f 1.00 ... 1.48 .88f

COMMODITIES CASH GRAINS OMAHA (USDA) -- No. 2 Yellow Corn 4.91-4.93 dn 12 -16N to -14N unch No 1 Yellow Soybeans 14.63-14.71 dn 57-51 +2N to +10N dn 5-no comp CHICAGO BOARD OF TRADE CHICAGO (AP) — Futures trading on the Chicago Board of Trade Thu.: Open High Low Settle Chg. WHEAT 5,000 bu minimum; cents per bushel May 7131/4 7153/4 6951/4 6983/4 —141/4 Jul 723 7241/2 7011/4 7071/4 —141/4 Sep 7301/4 7321/2 710 716 —133/4 Dec 745 7451/4 723 7293/4 —13 Mar 7543/4 7561/2 7343/4 7413/4 —121/2 May 761 761 7453/4 7471/4 —12 Est. sales 107,079. Wed.’s sales 96,430 Wed.’s open int 358,841, up 2,295 CORN 5,000 bu minimum; cents per bushel May 5131/4 5153/4 501 5031/4 —103/4 Jul 518 521 5041/2 507 —12 Sep 513 5151/2 500 5021/2 —103/4 Dec 509 5113/4 497 4991/2 —93/4 Mar 5153/4 5183/4 505 5071/2 —9 Est. sales 274,623. Wed.’s sales 204,634 Wed.’s open int 1,357,555 OATS 5,000 bu minimum; cents per bushel May 4181/2 4231/2 416 418 —1/2 Jul 3601/2 3601/2 3503/4 353 —71/2 Sep 3431/4 3431/4 340 340 —31/4

Est. sales 987. Wed.’s sales 493 Wed.’s open int 7,284 SOYBEANS 5,000 bu minimum; cents per bushel May 1528 1573 14721/2 14731/2 —571/4 Jul 15101/2 1512 1460 1461 —513/4 Aug 1439 14393/4 13981/2 13993/4 —41 Sep 13083/4 13093/4 12791/2 12811/4 —29 Nov 12451/4 12463/4 12231/4 12251/2 —211/4 Est. sales 195,432. Wed.’s sales 129,206 Wed.’s open int 605,923 CHICAGO MERCANTILE EXCHANGE CHICAGO (AP) — Futures trading on the Chicago Mercantile Exchange Thu: Open High Low Settle Chg. CATTLE 40,000 lbs.; cents per lb. Jun 137.15 139.30 137.05 139.25 Aug 136.05 138.65 135.95 138.57 Oct 140.10 142.60 140.02 142.55 Dec 141.87 144.42 141.67 144.35 Est. sales 118,318. Wed.’s sales 57,721 Wed.’s open int 343,727 FEEDER CATTLE 50,000 lbs.; cents per lb. May 181.30 184.00 181.05 183.95 Aug 187.25 190.47 187.25 190.47 Sep 187.77 190.97 187.77 190.97 Oct 188.00 190.97 188.00 190.97 Est. sales 20,752. Wed.’s sales 8,552 Wed.’s open int 42,942, up 756 HOGS,LEAN

+2.05 +2.50 +2.15 +2.38

+2.75 +3.00 +3.00 +3.00

40,000 lbs.; cents per lb. May 117.62 118.00 116.85 Jun 123.00 123.85 122.47 Jul 122.50 123.22 122.00 Aug 121.87 123.80 121.85 Est. sales 79,562. Wed.’s sales 45,183 Wed.’s open int 257,229

117.37 122.80 122.70 122.90

—.30 —.32 +.30 +.95

WORLD GOLD BULLION PRICES Selected world gold prices, per ounce, Thursday. London morning ﬁxing: $1283.00 off $5.50. London afternoon ﬁxing: $1278.50 off $10.00. NY Handy & Harman: $1278.50 off $10.00. NY Handy & Harman fabricated: $1380.78 off $10.80. NY Engelhard: $1280.82 off $12.02. NY Engelhard fabricated: $1376.88 off $12.92. NY Merc. gold May Wed. $1295.60 off $0.40. NY HSBC Bank USA 4 p.m. Wed. $1293.00 off $2.00. NONFERROUS METAL PRICES NEW YORK (AP) — Spot nonferrous metal prices T. Aluminum -$0.8026 per lb., London Metal Exch. Copper -$3.0498 Cathode full plate, LME. Copper -$3.0295 N.Y. Merc spot Wed. Lead - $2088.50 metric ton, London Metal Exch. Zinc - $0.9318 per lb., London Metal Exch. Silver - $19.065 Handy & Harman (only daily quote). Silver - $19.119 troy oz., N.Y. Merc spot Wed. Platinum -$1412.00 troy oz., Handy & Harman. Platinum -$1427.90 troy oz., N.Y. Merc spot Wed. n.q.-not quoted n.a.-not available r-revised

Retail: Free concerts at Aksarben Village Continued from Page 1

ha-based business that offers promotional products, has acquired Omaha-based Artwears Unlimited, a screen printing, embroidery and custom apparel service. The acquisition took effect April 15, and no terms were disclosed. Bergman Incentives has been locally owned and family-operated since 1888. The company helps businesses build their brand through promotional products, including trade show materials, client gifts and employee recognition items. Artwears was founded in 1987. Gina Gottsch, president of Artwears Unlimited, said Bergman Incentives’ “reputation for quality customer support” is a perfect fit for Artwears. “In turn, our (production) facility will increase Bergman Incentives’ efficiency and reduce production lead times.” “The talent of Artwears Unlimited will be a terrific ad-

dition to the services Bergman Incentives offers its clients,” said David Gilinsky, president of Bergman Incentives.

Concerts at Stinson Aksarben Village will kick off a series of free concerts this Saturday. The Saturdays@ Stinson Concert Series is from 7 p.m. to 10 p.m. and runs through early September. Concertgoers are welcome to bring blankets or chairs. Food and drink will be provided at each concert by various vendors. There will also be family-friendly activities, including balloon artists and face painters. The concert schedule:

Saturday – R-Style May 10 – Personics May 17 – Sinners & Saints May 24 – Hott 2 Trott May 31 – Tami Hall June 14 – Finest Hour June 21 – Eckophonics July 12 – High Heel July 19 – Recaptured – Journey Tribute July 26 – Hi-Fi Hangover Aug. 2 – The 402 Aug. 9 – John Doe

Aug. 23 – The Conﬁdentials Aug. 30 – Taxi Driver Sept. 6 – Fishheads

For a list of all events, go to aksarbenvillage.com/calendar.

Open house and beneﬁt Better Bodies Fitness & Training is celebrating its 25th anniversary Saturday with an open house from 8 a.m. to 4 p.m. The event will feature free refreshments, prize drawings, health screenings, children’s activities and discounts and fundraisers to beneﬁt the ALS Foundation. ALS stands for amyotrophic lateral sclerosis, a disease that affects nerve cells in the brain and the spinal cord. Better Bodies is at 120th and I Streets. A boot camp fundraiser will be held from 8 a.m. to 9 a.m., followed by a Zumba Fitness fundraiser from 11 a.m. to 2 p.m. Lunch will be served from 11 a.m. to 2 p.m. Each event and lunch requires a $10 donation.

@u_nebraska | #FuelingKnowledge

KNOWLEDGE PAYS DIVIDENDS. Class of 1950

14 13 14 19 13 20 28 13 cc 19 15 dd 18 39 15 15 16 22 20 13 6 34 19 13 24 17 14 21 22 20 16 20 15 22 dd 20 10 32 18 18 31 13 22 23 20 20 15 ... 9 11 dd 41 19 22 13 19 11 15 11 24 16 24 27 13 12 22 11 16 11 17 52 20 30 30 20

Dividend Footnotes: a - Extra dividends were paid, but are not included. b - Annual rate plus stock. c - Liquidating dividend. e - Amount declared or paid in last 12 months. f - Current annual rate, which was increased by most recent dividend announcement. i - Sum of dividends paid after stock split, no regular rate. j - Sum of dividends paid this year. Most recent dividend was omitted or deferred. k - Declared or paid this year, a cumulative issue with dividends in arrears. m - Current annual rate, which was decreased by most recent dividend announcement. p - Initial dividend, annual rate not known, yield not shown. r - Declared or paid in preceding 12 months plus stock dividend. t - Paid in stock, approximate cash value on ex-distribution date. PE Footnotes: q - Stock is a closed-end fund - no P/E ratio shown. cc - P/E exceeds 99. dd - Loss in last 12 months. Source: The Associated Press. Sales figures are unofficial.

Warren Buffett

s -0.11% s +4.30% s +13.24% s +2.20% s -1.18% s +1.91% s +1.19% s +1.37% t -3.24%

LINCOLN | OMAHA | KEARNEY | MEDICAL CENTER

MONEY

OMAHA WORLD-HERALD

Departure of Mulally from Ford to mark end of an era

ECONOMIC DIGEST

Consumer spending ratchets up; gain biggest since 2009 WASHINGTON (AP) — U.S. consumers ramped up their spending in March at the fastest pace in 4½ years, a sign that the economy is gaining momentum after its winter slowdown. The Commerce Department said Thursday that consumer spending rose 0.9 percent, the largest monthly gain since April 2009. The department also revised up its estimate of the spending increase in February to 0.5 percent from 0.3 percent. Income rose 0.5 percent in March after rising 0.4 percent in February.

THE NEW YORK TIMES

DEARBORN, Mich. — Ford Motor said Thursday that its chief executive, Alan Mulally, would retire on July 1 and be succeeded by Mark Fields, a veteran executive who has played a crucial role in the company’s turnaround. Mulally had been expected to retire this year, ending a spectacular run as chief executive since joining Ford when it was struggling for survival in 2006. The transition to Fields, a 25-year veteran of the company, as leader of the nation’s second-largest automaker has also been widely expected since he was elevated to chief operating ofﬁcer two years ago. Still, Mulally’s departure will end an era at Ford, in which the company borrowed billions of dollars to pay for a deep restructuring that allowed the company to avoid the bankruptcies and bailouts that overcame its chief U.S. rivals, General Motors and Chrysler. “Alan deservedly will be long remembered for engineering

BLOOMBERG NEWS

Alan Mulally, Ford chief executive, is applauded by Bill Ford, executive chairman, center, and Mark Fields, chief operating ofﬁcer, at a press conference Thursday. Mulally will retire in July and be succeeded by Fields. one of the most successful business turnarounds in history,” said Bill Ford, the company’s executive chairman. “Under Alan’s leadership, Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto companies.” Mulally, 68, joined Ford from Boeing and immediately began streamlining the company by trimming vehicle programs and realigning its vast bureaucracy and regional divisions under a turnaround plan, One Ford. Fields played a big part in the comeback as the head of the Americas division, which cut thousands of jobs and closed factories to better align Ford’s

production with its U.S. market share. Since becoming chief operating ofﬁcer in December 2012, he has become increasingly visible, running the strategy meetings and overseeing Ford’s global auto operations. “Under Alan’s leadership, we have seen the power of One Ford and what a culture of positive leadership and working together can accomplish,” Fields said. “My commitment is to build on that success by accelerating our pace of progress.” Fields will face big challenges, including overseeing the introduction of the ﬁrst pickup truck with a body made mostly out of aluminum and continuing to pare losses in Europe.

Manufacturing shows signs of expansion WASHINGTON (AP) — U.S. manufacturing grew faster in April than in March as exports picked up and factories accelerated hiring. The higher reading adds to other evidence that manufacturers are expanding steadily after a sluggish start to the year. Solid factory output will likely boost economic growth in the coming months. The Institute for Supply Management said Thursday that its manufacturing index rose to 54.9 from 53.7 in March. Any reading above 50 indicates expansion.

Jobless claims are up again WASHINGTON (AP) — The number of Americans applying for unemployment beneﬁts rose last week to the highest level since February.

NOTICE TO ADVERTISERS There is a $30 fee charge by the Omaha World-Herald through PCM, Inc. for all returned checks.

Sat May 3 11am-10pm Mon May 5 11am-10pm Drink Specials and Give aways at both locations 3007 S 83 Plz (East) 402-391-2923 1201 S 157 St (West) Live music - West only 402-884-2272

ATTENTION:

Kentucky D Kentucky Derby erby P Party arty • Saturday Saturday @ 11:00pm :00pm

-C

los

MAJOR SPONSOR: Douglas County; CONTRIBUTING SPONSOR: Peter Kiewit Sons’, Inc., Valmont Industries, Inc.; SUPPORTING SPONSOR: Mutual of Omaha; Additional Support provided by: Nebraska Arts Council and Nebraska Cultural Endowment.

17520 W Wright i ht St Streett #108

Directly behind Natural Grocers • 402.991.4500 • CopaCabanaOmaha.com

Hours: Monday-Thursday • 1 pm-1 am Friday-Saturday • 1 pm-2 am

2200 Dodge St. | Omaha, NE | (402) 342-3300 | www.joslyn.org

CLASSIFIEDS Dogs

Dogs

AKC BRITTANY PUPS, shots, wormed, $375, or trade for rifle. pics avail. Tekamah r 402-374-2899

Dutch Shepherd and Belgian Malinois pups. Excellent bloodlines, all shots, 1M and 2F, $750-$1000. Ed at Code 2 K-9........402-779-6618

Dogs

Yorkie Pups "Biewers" Flashy parti-colored. Chinese Cresteds powder puffs/Hairy Hairless "Loving Lap Dogs" Possible Delivery (785)820-7336 Need tickets or have extra to sell? Place a Tickets & Events ad. Classiﬁeds (402) 342-6633

AKC English Cream Amer Golden Retriever Pups. Ready 5/21/14. $800-1200. 402-881-1394 AKC LAB PUPS-YELLOW Born 4/14. Excellent temperament. Proven pedigree. Health guarantee. $400 • 402-719-6057 AKC LABS - Chocolates & yellows, OFA cert. Shots, dew clawed. Both parents on site $500 402-269-2091

Mini-toy Husky Pups all sizes/colors/prices. Greatest adorable pets! Possible delivery (785)820-7336

SCHNAUZER - STANDARD PUPS AKC - Black & Pepper/Salt. Great Pets $700-$1000 785-568-2345 AKC LAKELAND DOBERMANS Accepting deposits for pups who will be ready mid-May. Family raised. $800 • 402-237-9888

Sheltie / Shiba Inu

Hybrid Pups $200..........308-750-6647 AKC SHIH TZU Boys Champion Bloodlines $450-$475 vet checked. red-white brindle-white 785-284-2753

(look like mini huskys) $300...............308-750-6647

AKC YELLOW LABS Dews, Shots, vet @ Beautiful males, $400 Ashland NE 402-714-3553

CHIHUAHUA M PUPS

1 Longhair• 3 Shorthair. Blue Merle, Black & Tan

$200 402-521-0016

NEWFOUNDLAND X Great Bernese Puppies 9 wks old. UTD on shots & dewormer. Raised indoors w/ children. Social. $400 û 402-270-2376

Antiques & Collectibles

2 Blonde End Tables, 18x21x26H $75 for both 402-593-8631

1940’s Banana Basket 20"Hx15"W $35 402-573-5273

2 OLD CAMERAS Polaroid Instamatic 600 and Kodak Instamatic 100 $10 each • 402-556-4946

(2) Vintage Breyer

1950’S TIN ROOSTER SIGN; Great Colors excellent cond. $80 402-850-5410

80 yr old Console Coronado Radio $100. Blair 402-426-4955

1 in x 12 in BARN BOARDS 100 yrs old $1.50 ft. (402) 679-7645

8 Track Tapes 1980’s Music $2 ea. 402-397-8762

Barbie Doll û35th Anniversaryû Swimsuit Model with Box $10 402-289-2919 Beanie Babies(TY) over 400+ to sell for $1500. MWMT and some TTags are from 1993. Call to email list. Delivered to Omaha only. 402-371-5714. Big Yellow Ware Bowl 11" $15 Big Tan Crockbowl $20 402-558-8162 Bobbleheads-Kyle Korver and Johnny Rosenblatt $25 ea 402-558-3885 Ceramic Elephant with top shelf, 20x20 (with eyelashes) $45 402-933-3518 DVD’s DVD’s $2 and up 13th and Vinton (402)709-0784 Early 1900’s School Desk. Would make a cute plant stand $75 402-573-5273 Elvis Presley 45 Record RCA/Victor $50 402-397-9509 Federal 12GA, Peters 20GA "Mallard" empty cardboard shell boxes $35 for all 402-880-0904 Fender-Skirts for ’51-’53 Lincoln Cosmoplitan $85/Pair. Eves or Weekends (402)475-0236 Flashlight/Stun Gun Combo with case & chargers. BRAND NEW! $50 402-682-2848

OLD BEER CANS $2 bucks 13th and Vinton (402)709-0784 Phonograph Horn Only $100. 402-658-4224

1943 US Naval

’96 Olympic Centennial Memorabilia $3-$7 each 402-289-3898 Adorable New PUFFKINS 33 assorted $3. ea. 402-557-8312 ALBUMS 33rpm 1955-1960 $15 each Ron 402-391-9295 Antique Wooden Rocking chair Wicker back/bottom $60/offer. (402)827-0786 Awesome Large Painting of Indian shooting arrow $50. Eve/wknd 402-475-0236

Sea Bee’s Poster, full color. $10 402-551-9038

Horses $5 each 402-558-8162

Personal Services

Home Improvements & Repairs

Lawn, Garden & Landscaping

A stress relieving Swedish Massage. Day, evening & weekend hours available. Call Dee, LMT û 402-552-0710 û

All brick repair- Chimneys repaired & rebuilt. Tuck pointing, pavers, porches, basements. BBB. Matney Masonry û 402-213-3727

Concrete Work • Free Est. Insured • BBB Member

Air Conditioning & Heating

Cleaning Services House Cleaning in West Omaha. 15 years exp. Reliable, Excellent References. Free Estimates 402-720-7025

#1 TR Construction

Building Concrete Excellence • Driveways • Parking Lots • Footings Insured / References 402-238-2599 trconstructionsite.com A+ HEARTLAND CONCRETE CONST. LLC Driveways • Floors • Walls Insured • Ref. Since 1985 BBB Member 402-731-2094

Soft Coated Wheaten Terriers, 35-40# as adults. Non shedding family friendly companions. $850 M/F. Vaccinations, microchipping, dew claws removed, tails docked. Health guaranteed, parents on site. Credit cards accepted Lyons, NE 402-685-6228 view online heartlandclassics. com

Antiques & Collectibles

Service Directory

Concrete & Cement Services SHIBA INU PUPS ACA

MERCHANDISE

CLASSIFIEDS

HONEST HEATING & AIR CONDITIONING COMPANY Honorary BBB member. Residential/commerc. $60 service call. 402-850-7898

8 WK BOXER PUPPIES Vet checked, shots, 90 min. from Omaha. $375 402-239-7423

AKC Australian Cattle Dog Pups. (AKA Blue Heelers) Farm Family Raised. Shots & wormed 712-883-2249

rry

The realm of Poseidon encompassed virtually every aspect of life in the ancient Mediterranean world, from mythology and religious cult to daily activities. The exhibition centers around an imposing marble statue of the god from the first century AD that sets the stage for more than 100 works of Greek, Etruscan, and Roman art produced over more than a millennium.

Drin Dr Drink inkk Sp Specials, peccia ials ls,, PR ls PRIZ PRIZES IZZES IZES ES FFOR OR A ALL LL + mu LL m music sic si ic byy O Onn th thee Ro Rocks cks ck ks @ 8p 8pm! pm! m!

PETS

If you have recently placed a classiﬁed ad and you are then contacted by any individual(s) claiming that they are with Omaha.com or the Omaha World-Herald’s Billing or Credit Department, do NOT give them a credit card number or any credit card information. Instead, please call directly the Omaha World-Herald’s Sales Department at (402) 342-6633 or Credit Department at (402) 444-3123 with any questions or needed information. Thank you.

Statue of Poseidon/Neptune alongside dolphin (detail), Roman, 1st century AD, marble, Collection Tampa Museum of Art, Joseph Veach Noble Collection, 1986.135

LIVE MUSIC FRIDAY - HONEYBOY TURNER BAND

Auctions

Dogs

WASHINGTON (AP) — Average U.S. rates on ﬁxed mortgages declined slightly this week as the spring home-buying season has gotten off to a slow start. Mortgage buyer Freddie Mac said the average rate for the 30-year loan fell to 4.29 percent from 4.33 percent. The average for the 15-year mortgage ticked down to 3.38 percent from 3.39 percent.

and the Sea Sea

Join us for an event-ﬁlled event-ﬁlled weekend!

AUCTIONS

Large Household Auction 1442 EUCLID ST, ASHLAND, NE SAT, MAY 3 - 10:30 AM Ovation guitar, tools, fishing/camping gear, household 402-641-0702

Mortgage rates dip

This exhibition has a $10 ticket fee. Free for members, youth ages 17 and younger, and college students with ID.

LOST CAT SYSCO Black/White Gray Male Tabby White Chest Neutered 402-926-6518

Cinco de Mayo at HECTOR’S

WASHINGTON (AP) — U.S. construction spending rose slightly in March, fueled by increases for apartments, single-family homes, factories, health care centers and ofﬁce projects. The Commerce Department said Thursday that construction spending increased just 0.2 percent in March after having fallen 0.2 percent in February. The March gains put construction at a seasonally adjusted annual rate of $942.5 billion, an 8.4 percent increase year-over-year.

Organized by the Tampa Museum of Art

Lost Ads

Tickets & Events

Construction spending rises slightly

Myth, cult, and daily life

ANNOUNCEMENTS

LOST: BLACK CAT yellow eyes, 10 yrs old, spayed & micro-chip’d Co Blfs area on 16th and 23rd. 712-435-9830

The Labor Department said Thursday that a seasonally adjusted 344,000 people applied for benefits, up 14,000 from the previous week and the most since late February. The less-volatile fourweek average rose by 3,000 to 320,000, a figure consistent with an improving job market. The number of benefit applicants has risen three straight weeks, but Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the Easter holiday may have warped last week’s numbers. “We think the underlying trend (in applications) is falling, but only slowly,” Shepherdson wrote in a research note.

Poseidon

Rebound for auto sales in April expected to last DETROIT (AP) — U.S. car buyers came out of hibernation in April to spend on pickup trucks and SUVs, fueling a rebound that analysts expect to last the rest of the year. Nissan led the way with an 18.3 percent increase over a year ago, with sales of the redesigned Rogue small SUV up almost 27 percent. Chrysler posted a 14 percent gain, boosted by a big jump in sales of Jeep SUVs. Both companies reported record April sales. Toyota sales grew by 13 percent, led by a double-digit gain in truck sales. General Motors posted a 7 percent gain. Hyundai sales rose a little more than 4 percent. Honda sales grew 1 percent, while Ford sales fell by a point.

• 3D

FRIDAY, MAY 2, 2014

rANZALDO CONST. CO. EXPERT CONCRETE. Driveways, Porches, Brick, Block, Patios, Steps, Walls Ref., 35 yrs. 402-871-4039 NLL Concrete Specialist Driveways, Sidewalks, Patios. Stamped/Color. Demo or Removal. 402-934-4439 nll.estimates@gmail.com

Home Repairs

of all kinds. Fair, Honest and Best of all Reliable. "One Handy Irishman" Call 402-658-5143

Lawn, Garden & Landscaping 000402-812-7591 Trees, Bushes, Mulching, Pruning, Landscaping, Flower Beds, Tillling, Clean-outs & Hauling. 0BID CUT û TRIM û HAUL Trees Bushes Hedge Etc landscape, de-root, clear flowerbed weed fenceline Quick Srvc • 402-812-5151

10% OFF

RETAINING WALLS

r 402-731-3133 q

Remodeling / General Contracting

Rooﬁng, Siding & Gutters #1 GUTTER Cleaning Repair Gutters • Trees Trimmed/Bush • Odd Jobs Trash Hauled • Rental Cleanouts r 402-672-3370

A-1 HOME RESTORATION Roofing, gutters, siding, decks. 30+ yrs exp local builder. Licensed & insured. Free estimates. BRAD: 402-301-7667

@ AERATION/OVERSEED • $25 Mowing • Mulch • Garden Tilling & Landscaping. 402-216-9618 www.landmaintained.com

AFFORDABLE ROOFING ROOFING SPECIALIST Repairs-All types-BBB A+ LICENSED & INSURED RIMCO 402-619-1877

AERATION SPECIAL $34.99 • POWER RAKING $99 • BASIC MOW start at $25 most lawns. LCS LLC r 402-213-2383

ASSOCIATED SIDING Siding/Windows/Roofing Decks/Gutters/Doors Kitchens/Baths/Floors 30 yrs exper 402-680-5412

Commerical/Residential Roofing, Siding & Gutters. Black Top Soil & Fill Dirt Locally owned & operated, insured, Free inspecDelivered or Installed Keith Mixan 402-731-1481 tions. Firestone and John Manville Certified ***FREE ESTIMATES*** Warranties Offering Mulch • Sod • Aeration • 10-20-30 years Mowing • Cervantes û BBB Mejia Roofing & Lawn Service. 402Contractors 402-415-3045 213-3186/402-578-3914 ROOFING SPECIALIST AFFORDABLE ROOFING Handyman jobs Repairs • All types • 20 Yrs LARGE & small. Dan Exp. Licensed & Insured Anderson 402-981-2050 Shawn...402-301-7344

û GARDEN TILLING û

D.R. CONSTRUCTION

Complete tear-offs and new roofs. Locally owned business. Lic, bonded, insured. Dave: 402-763-0690

THE PROFESSIONALS Basements, Baths, Roofing/Seamless Gutters Kitchens Additions, Decks, Siding and Windows Siding, Windows, Insured, Free Estimates, Insured Bonded Mike 402.690.1111 BBB Mbr 402-680-2641

MOWING, MULCH, Fertilizing, Aeration, Irrigation Tilling, Landscaping, Retaining Walls, Pavers, Firepits, Water Features 402-350-5106

DIRT • DIRT • DIRT

Rooﬁng, Siding & Gutters

rSouth O. Roofingq Omaha, NE. Will not knock on any doors. Call for free estimates. 402-612-0791

Tree & Stump Removal ALCOVE TREE SERVICE, Inc. Tree trimming and removal OUR STAFF IS CAREFUL, QUICK and KIND. Insured-Free Estimates-Senior Discounts r 402-991-8111

CompleteTreeService

Trim, Removal, Licensed Insured, Reasonable 45 yrs A+ BBB 402-689-9967 FRANK’S TREE SERVICE Licensed û Insured FREE ESTIMATES 402-677-6611 or 402-891-9884

WALKUP’S

HeartlandTreeService

45yrs exp. Lic-insured FREE EST 402-960-1893

Trucking & Hauling

00000000 $$$$ #1 GOOD ODD JOBS piano HAULER. Tree Trim, Appl, Rental Cleanouts, Pkup/del. Gutters fix 402-672-3370 JOHANSEN BROTHERS CHEAP HAUL-AWAY Specializing in basement and garage clean-outs. FRANK r 402-312-4000

LICENSE PLATES

Car / Motorcycle $35-$60 402-670-1769 Mickey Mantel Autographed Model Baseball Glove. $40 402-573-0813 Mickey Mantel Magazine and Books Collection $5 & UP. 402-573-0813

NEW ELVIS YAHTZEE GAME Never opened. $38 402-933-3518

RCA Stereo Console, am/fm record player $100 402-614-7975 Rosenblatt Mouse Pad $12. Mini Rosenblatt Stadium $12. 402-558-3885 SOVIET ARMY STEEL HELMET, mint, in factory wrap $75 (402) 551-9038 Tennis Racket 1950’s Wright & Ditson From Sears Model #14 $50 402-558-0772 UNCLE SAM Recruiting Posters Army, Navy, Marines Full Color $10 402-551-9038 Vintage Smokey Bear USDA Comic $7 402-289-2919 Wood Handle Ice Picks Antique Coca-Cola and Winchester. $15 ea 402-850-5410 WWII German Language Army Poster showing Uniform, flagsûColorû $10 402-551-9038

Appliances Above the Range GE Spacesaver Microwave. $60 402-706-3630 Dehumidfier Removes 50 pints of water in 24 hours $48 402-670-1994 Kenmore Dishwasher Black $75 402-891-0768 Older Kenmore Electric DRYER. Works great! $75 and $25 Delivery 402-733-7678

Appliances Stove, fully functional glass front, full guarantee, $165 Free Delivery 402-670-1994 Whirlpool Washer, Dryer, commercial quality, like new $249. 402-932-2136/515-5044 Whirlpool Washer Ultimate Care, HD, super capacity, free delivery $165 402-895-7233

Arts, Crafts & Sewing

CROCHET PATTERN

BOOKS $2 ea 402-733-6534 Gel Candle Supplies Wax, Wicks, Fragrances containers, lace, booklets $50 402-556-5314 Hamilton Beach Electric Sewing Scissors $25 402-933-6937 Polymer Clay Instruction and Pattern Books. $58 402-556-5314 Polymer clay supplies clay, cutters, roller, pasta machine, toaster oven $56 402-556-5314 ROCKBROOK VILLAGE SPRING CRAFT SHOW Sat., May 3, 10am-5pm 108th & Center Over 80 crafters. rockbrookvillage.com Tons of cross stitched projects. Raven Oaks $2-$10 each 402-455-8402

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SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

MADE OF MONEY

As Berkshire Hathaway streaks past a financial milestone — it now holds more than $100 billion worth of common stock — CEO Warren Buffett says that he remains simply “focused on the next day.” Story on Page 4S

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

• SATURDAY, MAY 3, 2014

OMAHA WORLD-HERALD

LIVE COVERAGE AT OMAHA.COM/BERKSHIRE Check out Omaha.com/Berkshire today, with a chat beginning by 7:30 a.m. and continuing through the Q&A session with Warren Buffett and Charlie Munger. At 5 p.m., join a post-meeting chat with WorldHerald Berkshire Hathaway reporter Steve Jordon.

WARREN, THE CEOs AND THE BENJAMINS The paper sculpture of Warren Buffett featured on the cover and inside this special section is the work of WorldHerald artist Matt Haney. The head-and-shoulders caricature is 18 inches tall, about 90 percent of life-size. The interior framework is poster board with cardboard reinforcement. Outside are layers of fake money — reproductions of new and old $100 bills that he created, all quite legally. The bills were arranged in different patterns: Old $100 fronts for the face and hand, new $100 backs applied in a diagonal pattern for the suit, and portions of darker bills to craft his glasses. His eyes are U.S. Federal Reserve seals. And layers of shredded $100 bills were used to make his unmistakable eyebrows. Another special feature of this section starts on Page 13 and covers ﬁve other pages. World-Herald photojournalist Matt Miller photographed 26 of the CEOs in the Berkshire Hathaway family, posed in front of his or her company exhibit. Miller had the OK from Warren Buffett, but had to pull it off in a limited time — about one minute per CEO. He assembled a team that leap-frogged from boss to boss, hauling backdrops and setting up each exec’s photo shoot, then moving on to the next. So when Miller ﬁnished with one, he sprinted to the next and began again.

COMING SUNDAY

Full coverage of meeting news and events.

SHAREHOLDER EVENTS IN OMAHA SATURDAY 7:30 a.m. to 4:30 p.m. Berkshire Hathaway/Brooks 5K packet pickup at Hilton Omaha; in-person registration accepted. 9:30 a.m. to 4 p.m. Annual shareholders meeting. (Doors open at 7 a.m., movie at 8:30 a.m., followed by the Q&A at 9:30 a.m. Booths representing more than 40 companies open in the Exhibition Hall throughout.) Noon to 4:30 p.m. NetJets display of aircraft at Signature Flight Support next to Eppley Airﬁeld. Stop by the NetJets booth for shuttle information. 5:30 p.m. to 8 p.m. Berkshire’s Big League Picnic for shareholders at Nebraska Furniture Mart, 700 S. 72nd St. Live entertainment from DJ’s Dugout’s Blazin’ Pianos with food from Famous Dave’s, Domino’s, Sonic or Paradise Bakery & Cafe.

SECTION CREDITS

SUNDAY 8 a.m. to 11 a.m. Berkshire Hathaway “Invest in Yourself” 5K presented by Brooks. The course starts on 10th Street across from the CenturyLink Center Omaha and ends on Riverfront Drive. In-person registration accepted.

Section editor Deb Shanahan

Cover designs Tim Parks

Warren Buffett paper sculpture Constructed by Matt Haney

CEO photos Matt Miller

Sculpture photos James R. Burnett

9 a.m. to 4 p.m. Borsheims shopping day for shareholders. Brunch begins at 9 a.m.

Designers Tim Parks Ian Lawson Tammy Yttri Copy editors Bob McDonald Pam Thomas Pam Richter

1 p.m. to 10 p.m. Private shareholder event at Gorat’s Steakhouse, 4917 Center St. Reservations required. 4 p.m. to 10 p.m. Private shareholder event at Piccolo’s Steakhouse, 2202 S. 20th St. Reservations required. SPECIAL SHAREHOLDER PRICING Through Monday: Nebraska Furniture Mart Through May 10: Borsheims Credentialed shareholders also can receive up to 20 percent off at the new Borsheims Boutique at Nebraska Crossing Outlets in Gretna.

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BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

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• 3S

• SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

Berkshire’s stock portfolio passed a milestone in 2013, and a long-term outlook paved the way

$100 billion and counting BY STEVE JORDON • WORLD-HERALD STAFF WRITER

“I’ve never set numbers as goals on anything,” Buffett told The World-Herald. Building a $100 billion portfolio is “nice,” he said, “but I’m always focused on the next day. I’ve never had a number in mind for sales or net income or market penetration.” Buffett-watchers say Berkshire has built one of the world’s largest portfolios of stock through Buffett’s systems of raising money and investing. The growing value of the shares, including a one-third boost last year, is the result not only of the shares’ market price increases but also proﬁts from Berkshire’s 80-plus operating companies, at the rate of about $1 billion a month. More investable cash comes from premium dollars collected by Berkshire’s property insurance companies. That “ﬂoat” totaled $77 billion at the end of 2013 and can be invested until claims arise. It’s like a revolving bank account, Buffett has written. Money goes out to pay insurance claims, but even more — $3 billion more last year — arrives from insurance policy premiums. Berkshire also has $48.9 billion in cash, which could be used to buy securities as well as to acquire whole companies. “We don’t keep cash because we like

T H E A S S O C I AT E D P R E S S

S BERKSHIRE HATHAWAY shareholders settle in to the CenturyLink Center Omaha today to hear Warren Buffett talk about money, they can celebrate a financial first: owning $100 billion worth of common stock. Berkshire passed that landmark in 2013. Now totaling about $115 billion, the portfolio’s value tripled in the past decade, and it’s up 30,789 times from Berkshire’s 1967 stock holdings. And that track record is why the annual shareholders meeting is expected to draw some 35,000 people to hear hours of questions and, most important, the answers from Buffett and Berkshire Vice Chairman Charlie Munger.

“We don’t keep cash because we like it,” Berkshire Hathaway Chairman and CEO Warren Buffett said. “Nothing makes me less happy than cash, unless it’s the lack of cash at the wrong time.”

it,” Buffett said. “Nothing makes me less happy than cash, unless it’s the lack of cash at the wrong time. “Every day I come to work, I’m thinking about what makes the most sense for Berkshire. Obviously, events change from day to day, prices change from day to day, opportunities change from day to day.” Buffett said Berkshire will always hold stock in sound businesses. “You need a lot of marketable securities, just to carry out the property-casualty insurance business,” he said. He noted: “We found ways to invest quite a bit of money last year,” including stock worth $1.2 billion in IBM and $1.35 billion in Wells Fargo. Berkshire manag-

ers Ted Weschler and Todd Combs help put the cash to work by buying stock in other companies, with each managing $7 billion for Berkshire. It all belongs to Berkshire and its shareholders. In contrast, money in mutual funds belongs to investors who want steady gains and who can pull out their money at the ﬁrst whiff of a market decline. That ownership is an inherent advantage for Berkshire, said Vitaliy Katsenelson, chief investment ofﬁcer at Investment Management Associates Inc. of Denver. “It’s permanent capital,” Katsenelson said. “Buffett makes decisions that are See Billions: Page 10

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BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

SATURDAY, MAY 3, 2014

“It takes 20 years to build a reputation and only 5 minutes to ruin it. If you think about that, you will do things differently.” -Warren E. Buffett

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• 5S

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

• SATURDAY, MAY 3, 2014

Warren Buffett says building a $100 billion portfolio is “nice.” What could that “nice” amount buy or build? Oh, a few things.

With $100 billion, you could ... 1

BUY

SATURDAY, MAY 3, 2014

PAY

$60,826

Buffett’s yearly salary of

$100,000

Per-share dividend checks, if all Berkshire stock were Class A, or $40.55 if all shares were converted to Class B, or ... (if Berkshire paid dividends)

for 1 million years, or ...

12,240,000

The number of U.S. taxpayers whose annual federal income tax payments could be paid. (That’s every resident of Nebraska, Iowa, Kansas, South Dakota, Wyoming and Arkansas.)

Boeing Company, or ...

10.2 BILLION 10-ounce boxes of See’s peanut brittle, or ...

BUILD

151,467

Houses at the taxable value of Buffett’s Omaha home, or ...

421,585

20 BILLION

Houses at $237,200 each, one for each person in Omaha, or ...

1,754 TD Ameritrade Parks, or ...

Pairs of Buffett and Munger rubber duckies, or ...

343

Sets of the British crown jewels.

CenturyLink Centers, or ...

Nebraska Furniture Mart developments like the one being built near Dallas.

Compiled by The World-Herald’s Steve Jordon • Paper sculpture by Matt Haney

@u_nebraska | #FuelingKnowledge

KNOWLEDGE PAYS DIVIDENDS. Warren Buffett Class of 1950

LINCOLN | OMAHA | KEARNEY | MEDICAL CENTER

• 7S

• SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

Olive McArthur’s husband gave 37 years of his life to earn her health care.

Will Berkshire Hathaway Energy keep its promise to her? Perry McArthur worked in Utah’s Deer Creek mine for 37 years. Coal mining ning is dangerous, backbreaking work that takes kes a toll on a ar, in contra contract act miner’s body. But year after year, after contract, Deer Creek management ment continu continued ued to promise Perry that if he mined thee coal, theyy would guarantee that he would have health car care re when he retired, and his widow would uld have it after he died. But it’s unclear whether Energy West,, the Berkshire Hathaway Energy subsidiary ry that now operates the Deer Creek mine, ne, intends to keep that promise. Withoutt those beneﬁts, Olive and hundreds off other retirees and widows like her could soon oon be forced to make cruel choices betweenn ﬁlling needed prescriptions and buying food. d. The current collective bargaining agreement reement expired at the end of 2012. Despite that, the miners have continued to work in thee hope that demonstrating a reasonable approach proach to resolving differences would encourage age manage management ement to do the same. Berkshire Hathaway has a well-deserved erved reputation for fair dealing. It’s time for or its subsidiaries, Berkshire Hathaway Energy nergy and Energy West, to sit down and reach an agreement that is fair to both sides.

For Olive and others like her, it’s a matter of life and death. United Mine Workers of America www.umwa.org

OMAHA WORLD-HERALD

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

SATURDAY, MAY 3, 2014

• 9S

Q&A session: It’s still the main attraction BY STEVE JORDON • WORLD-HERALD STAFF WRITER The chance to ask and hear other shareholders’ questions and the answers is the major draw for the 35,000 or so people expected to attend Berkshire Hathaway Inc.’s annual shareholders meeting at the CenturyLink Center Omaha. The four-hour Q&A session with Buffett, chairman and CEO of Berkshire, and Vice Chairman Charlie Munger is the centerpiece of the meeting and its related events. In an effort to spend the limited time on meaty questions for those who spend thousands of dollars to come to Omaha, Buffett in 2009 began alternating Q&A time between shareholders and a panel of journalists: Carol Loomis of Fortune magazine, Becky Quick of CNBC and Andrew Ross Sorkin of the New York Times and CNBC. Each year the three solicit questions from their readers and viewers. From the 5,000 or so they each receive, they’ll each choose six to ask this year. Also in 2009, Berkshire took steps to end the footrace that occurred when speedy shareholders would dash into the meeting arena and almost ﬁght for spaces in line at one of the microphones so they could ask a question. Instead, people who want to ask a question put in their names for an 8:15 a.m. random drawing at each of 11 microphones. In 2012, Buffett started inviting analysts to pose some questions. With each journalist and analyst generally asking six questions, about 18 are left for members of the audience. If there’s time beyond those 54 questions, he’ll take more from people in the audience. This year’s session will have a similar makeup. Buffett asks shareholders to state their name and hometown, to speak loud and clear, to not bundle questions and to not ask what he’s buying or selling. Any other subjects are fair game, he wrote to his shareholders. “Our hope is that the journalists and analysts will ask questions that further educate our owners about their investment,” Buffett said.

Berkshire’s first-quarter revenue up, profits down Dip in net income tied in part to insurance underwriting BY RUSSELL HUBBARD WORLD-HERALD STAFF WRITER

Berkshire Hathaway Inc. said Friday that first-quarter profits fell 3.8 percent, and the conglomerate led by Warren Buffett disclosed in filings Thursday the $2.9 billion purchase of a Canadian electricity transmission company. The Omaha-based company said net income was $4.7 billion, or $2,862 a share, down from $4.89 billion, or $2,977 a share, a year earlier. Revenue rose 3.6 percent to $45.4 billion. Operating earnings, which strip out some investing gains and losses, fell 6.5 percent to $3.5 billion. The lower results from a year earlier were partially attributable to lower pre-tax earnings in insurance underwriting, led by an 81 percent drop at Berkshire Hathaway Reinsurance, which covers catastrophic risks. Pretax underwriting earnings at Berkshire Hathaway Reinsurance fell to $183 million, from $974 million, a year earlier. Overall, pre-tax insurance earnings, investment gains included, fell 30 percent to $1.66 billion. Pre-tax gains from underwriting at Geico rose 33 percent to $353 million. Berkshire’s operations encompass dozens of businesses employing more than 300,000 people. The newest is AltaLink, operator of 280 electric substations and about 7,500 miles of transmission lines in Alberta, Canada, where it owns half the grid and serves 85 percent of the population. Net income last year at AltaLink, bought from Canadian engineering and construction firm SNC-Lavalin, was about $147 million in U.S. dollars. Berkshire’s investment and derivatives income rose 5.6 percent, on about $1 billion of investment gains, more than triple from a year earlier. Results from derivatives alone, whose value is derived from the performance of an underlying instrument such as interest rates, fell 80 percent to $153 million. Pre-tax earnings in the major categories were: $1 billion at manufacturing businesses, up 13 percent from a year earlier; $946 million from investing cash held by insurers such as Geico, a 5 percent decrease; $1.1 billion at BNSF Railway, a drop of 9 percent; and $619 million at Berkshire’s energy holding company, an increase of 12 percent. Cash on hand fell 0.3 percent to $48.9 billion.

WHO’S ASKING THE QUESTIONS?

The analysts

The journalists

.CAROL LOOMIS.

.JONATHAN BRANDT.

She joined Fortune magazine in 1954 and is senior editor-at-large. She has been the magazine’s expert on Buffett since 1966 and has edited his letter to shareholders since 1977. Her book “Tap Dancing to Work” is a compilation of Fortune articles about Buffett.

He joined Ruane, Cunniff & Goldfarb of New York City in 1994 and is a general analyst. He is a native of New York and will ask noninsurance questions.

.BECKY QUICK.

.JAY GELB.

Quick is co-anchorwoman of CNBC’s ﬁnancial news show “Squawk Box.” Before the Texas native joined CNBC, she covered retail and e-commerce industry topics for the Wall Street Journal, helping to launch the newspaper’s website in 1996.

He analyzes the insurance industry for Barclays Capital in New York City, where he is a managing director. He formerly worked for Lehman Brothers, Prudential Equity Group and Forrester Research and is a graduate of Bentley College.

.ANDREW ROSS SORKIN.

.GREGGORY WARREN.

A ﬁnancial columnist for the New York Times and a co-anchor of CNBC’s “Squawk Box,” Sorkin ﬁrst wrote for the Times as a high school intern and worked in 1996 for BusinessWeek before returning to the Times. He wrote a best-selling book, “Too Big to Fail.”

A senior stock analyst from Chicago who follows Berkshire for Morningstar Inc. He is a graduate of Augustana College in Sioux Falls, S.D.

Buffett plug gives Vanguard fund a lift Investors poured $1 billion more than usual into the fund in one month BY BARBARA SODERLIN

VANGUARD 500 INDEX FUND ADMIRAL SHARES

WORLD-HERALD STAFF WRITER

Average annual performance as of March 31

Index fund investors in March followed Warren Buffett’s advice to the tune of about $1 billion. That’s how much more people invested in the Vanguard 500 Index Fund, compared with a typical March, after Buffett mentioned the fund by name March 1 in the Berkshire Hathaway Inc. annual report. That is 300 percent more than in a typical March. When he dies, Buffett told shareholders in his annual letter, cash will be delivered to a trustee for his wife, with the advice that the trustee put 10 percent in short-term government bonds and the remaining 90 percent in a “very low-cost S&P 500 index fund.” “I suggest Vanguard’s,” Buffett wrote. The Vanguard 500 was the first index mutual fund, introduced in 1976 by Vanguard founder John Bogle. Today the fund has $165.5 billion in assets, making it the third-largest equity fund available, according to Vanguard. The initial spike in online searches for the fund — as much as a 450 percent increase for the term “Vanguard 500 Fund” — has settled down, but the recommendation generated wide coverage among the financial press, bloggers and general-audience publications. “He’s such a legend that his advice will resonate for years. Our funds will benefit from his support for a while,” Vanguard Chief Investment Officer Tim Buckley said. He said the firm did not know in advance Buffett would mention it, but that the recommendation affirmed Vanguard’s strategy. “He’s arguably the greatest investor to walk this earth,” Buckley said. “Mr. Buffett knows how hard it is to outperform the market.” It wasn’t the first time Buffett has singled out the fund. The Vanguard 500 Index Fund is the investment he backed in a 10-year bet against New York asset manager Protege Partners, which bet on a group of five hedge funds. Buffett took the bet to demonstrate that a passively managed fund with low fees is typically a better investment in the long run than an actively managed fund where managers must not only try to beat the market, but also beat it by enough to overcome the “frictional” costs of trading incurred along the way. An index fund tracks the movement of a market index, such as the S&P 500, by holding shares in amounts proportionate to their market-cap weightings in the index, said George Morgan, finance instructor at the University of Nebraska at Omaha, who is a proponent of the funds. There are hundreds of available index portfolios. Besides tracking the S&P 500, other index funds track groups of smallcap, international or emerging markets

21.8% 21.86%

21.15% 21.16%

500 Index Fund Admiral Shares S&P 500 Index (benchmark)

14.62% 14.66%

7.41% 7.42% 4.46% 4.48%

One year

Three years

Five years

10 years

Ten largest holdings

(17.8% of total net assets) as of March 31 1. Apple Inc. 2. Exxon Mobil Corp. 3. Google Inc.

4. Microsoft Corp. 5. Johnson & Johnson 6. General Electric Co.

SOURCE: The Vanguard Group

funds, or bond indexes. Some funds combine two or more index funds for more diversified investment. Advantages include little active trading, resulting in low fees and little capital gains to pay taxes on, Morgan said. As Buffett said in his annual letter, “The ‘know-nothing’ investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results.” How is the bet working out? While the hedge funds took an early lead in the 2008 wager, six years in, at the end of 2013, the index fund was up 43.8 percent, while the Protege funds were up an estimated 12.5 percent, Buffett’s friend Carol Loomis reported in February in Forbes. But there are many index funds that track the S&P 500, so why name Vanguard’s? “Its reputation among people who accept passive invest approaches is huge,” Morgan said, for its low expense ratio and its record of how closely it tracks the market. Investors who want to follow Buffett’s advice have a few choices for how they buy into the Vanguard S&P 500 fund. They can buy “investor shares,” which require a minimum investment of $3,000 and have an expense ratio of 0.17 percent. If they have at least $10,000 to invest, they qualify to buy Admiral Shares, which have an even lower expense ratio, 0.05 percent. Or they can buy and sell any amount of shares in the Vanguard S&P 500 exchange-traded fund at market price through a brokerage firm. Shares in an exchange-traded index fund also mirror the larger index but can be bought and sold like a single stock. Vanguard said the index approach initially was called “un-American” and

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“He’s such a legend that his advice will resonate for years. Our funds will benefit from his support for a while.” Vanguard Chief Investment Officer Tim Buckley

people said it “guaranteed mediocrity.” Enthusiasm for index funds grew in the 1990s among retirement plan managers and do-it-yourself investors and, since the Great Recession, among financial advisers, Buckley said. William Callahan, a fee-only financial adviser in Omaha, said the fund is a “common security” for his firm to recommend amid a larger conversation with clients about “just how valuable an index fund can be.” Beyond interest generated as a result of Buffett’s letter, Callahan has seen a growing trend of more interest in index investments among his established clients and among new clients. But Callahan and other advisers cautioned that the typical investor not put all her eggs in this one basket of funds — or even 90 percent of those eggs, as Buffett will for his wife, Astrid — especially once they reach retirement age. “You still need to follow other rules of investing, like diversifying among different sizes of stocks,” Callahan said. The S&P 500 fund, like the index itself, has gone up and down like a roller coaster in recent years, said Brad Grubb, managing director and securities principal at Manarin Investment Counsel. He said many investors are not willing to take that ride and may prefer working with an adviser who can give them direction during market disruptions. Ten thousand dollars invested in the Vanguard 500 Index Fund in 2004 would have been worth about $7,200 in late 2008, but would be worth more than $20,000 today, Vanguard said. Indexing works, Grubb said, only “so long as investors remain fully invested and are prepared to weather significant swings in the market,” and not sell when things look rough. Astrid Buffett likely would have a portfolio sizable enough that even a big market plunge would leave her with plenty to live on, said Ron Carson, founder of Carson Wealth Management Group in Omaha. But putting 90 percent in a single fund is bad advice for the typical investor, who “should have a variety of strategies,” Carson said. Still, Carson said that he is a “huge admirer” of Buffett’s and that his clients might be surprised to hear him say that for many investors, indexing is a good strategy, helping them to avoid financial services representatives who sell products “laden with a lot of nontransparent fees.” While Carson said his firm invests in a variety of strategies to balance risk, he said, “Odds are slim that you’re going to find one that has put (in) the time and the research to give you a real chance at outperforming the market.” Contact the writer: 402-444-1336, barbara.soderlin@owh.com

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• SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

Billions: Berkshire portfolio of

companies ‘unusually concentrated’

ISS

Continued from Page 4

Jeffrey D. Stacey: He says a market “correction” could prompt Berkshire to invest more in company stocks.

Vitaliy N. Katsenelson: Berkshire’s “permanent capital,” he says, means decisions can be made for the long term.

stock prices, Tilson said. Shares owned by Berkshire dropped in value, as did nearly every other stock. “Buffett at no time was under any pressure to liquidate those stocks,” Tilson said, “whereas pretty much every other money manager on the planet was either liquidating or worried about having to liquidate.” For the future, the chances of Buffett buying significant amounts of company stocks would be greatest if the stock market declines, a price “correction” that many people expect, said Jeffrey D. Stacey, founder of Stacey Muirhead Capital Management Ltd. of Waterloo, Ontario, Canada. “He’s sitting on a lot of cash he could deploy for more securities,” Stacey said. Although Buffett prefers to own entire companies, “if the market corrected, that would tilt the balance in favor of increasing marketable securities.” Tilson said he expects Buffett, 83, to run Berkshire for at least five more years. When he’s gone, Berkshire won’t perform as well, even if his successor managers are just as good picking stocks, Tilson said. “His successors just simply won’t be able to do the deals that Buffett is able to do on the terms that Buffett is able to get, even if they are just as good at valuing deals and knowing which ones to say yes or no to,” Tilson said. Last year’s 50-50 percent purchase of H.J. Heinz Co. with Berkshire and 3G Capital of Brazil is an example of Buffett’s unique value to Berkshire, Tilson said. The deal grew out of his longtime relationsip with Jorge Paulo Lemann. Bank of America, General Electric, Goldman Sachs and others called during the 2009 financial crisis and were willing to give Buffett better terms than they would have gotten elsewhere because they wanted his “stamp of approval,” Tilson said. “I think Buffett gets a lot of phone calls for two reasons: Personal relationships over a lifetime, and because of his brand name. ... Those things are irreplaceable.” The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc. Contact the writer: 402-444-1080, steve.jordon@owh.com

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going to be good for Berkshire in the long run. Even if in the short run they’re not working out, that money is not going to leave them. A lot of good investment decisions in the long run come with short-term pain.” Mutual fund managers, on the other hand, must keep short-term consequences in mind because they are required to pay back investors’ money upon request. “They are forced to have short-term time horizons,” Katsenelson said. “They need to have good performance in three months, six months, a year. That’s how they get compensated because that’s how the money flows in and out of the funds.” Buffett, on the other hand, can make decisions with decades in mind, Katsenelson said. “If he doesn’t perform as well in the short run, nobody’s going to pull the money away from him. ” In an interview, Buffett said Berkshire’s strong financial position means he can’t be pressured into buying or selling something. “We might do some dumb things, but it won’t be because we’ve been forced into it,” he said. That long-term view fits with Buffett’s philosophy of buying relatively few stocks but investing heavily when he spots a potential winner. In 2003, Berkshire owned $30 billion worth of stock in 10 companies: American Express, Coca-Cola, Gillette, H&R Block, health care provider HCA Inc., M&T Bank, Moody’s, PetroChina, the Washington Post and Wells Fargo. An additional $5 billion was invested in a few dozen businesses. Now, 15 companies account for about $100 billion in Berkshire-owned stock. American Express, Coca-Cola, Moody’s and Wells Fargo are still on the list, joined by DirecTV, Exxon Mobil, Goldman Sachs, IBM, Munich Re, Phillips 66, Procter & Gamble, Sanofi, Tesco, U.S. Bancorp and Walmart. The remaining $20 billion is split among about 30 other companies, a list that includes M&T Bank and some former holdings of the Washington Post. That’s an “unusually concentrated” number of companies for a portfolio that size, said Whitney Tilson, founder and manager of Kase Capital Management in New York City. “It’s hard for me to think of any portfolio of money even remotely that size that’s concentrated in that fashion,” Tilson said. “But that’s what he’s done most of his career. He moves infrequently, only when he has high conviction, and he bets big. Obviously, that only works if you know what you’re doing, and he does.” Berkshire’s “permanent capital” advantage showed during the 2008-09 downturn in

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ION

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

SATURDAY, MAY 3, 2014

• 11S

Buffett says — and some analysts agree — the company’s intrinsic value ‘far exceeds’ book value

Berkshire stock might be undervalued BY STEVE JORDON

$300,000

WORLD-HERALD STAFF WRITER

Statements by Warren Buffett in his most recent annual letter to shareholders have some observers wondering if Berkshire Hathaway Inc.’s stock price, even though it has been setting records lately, is still cheap in relation to the company’s true value. And if so, how cheap? As Berkshire’s stock price sets records around $193,000 for each Class A share and $129 for each Class B share, some estimates put its “intrinsic value” as high as $270,000 or $180, respectively. Of the three ways to calculate the value of an investment, Buffett says intrinsic value is “all-important.” It’s important to Berkshire shareholders, too, including the thousands attending their annual meeting in Omaha today, in deciding whether to sell or hold onto their Berkshire stock, or to buy more. The Berkshire chairman and CEO views intrinsic value as the only logical way to evaluate whether one investment opportunity is better than another, because it reflects the cash that a business can yield during its lifetime. An investor who can estimate intrinsic values can compare the returns of various investment choices, he said. Although he won’t disclose his estimate of Berkshire’s intrinsic value, Buffett said his annual report has figures that people can use to calculate their own estimates to compare with other potential investments. Buffett has a plan in place to spend billions of Berkshire’s cash to buy up some of its own stock if its market price falls too close to its book value — its assets minus its liabilities, with other accounting adjustments. That stock buyback may be getting more likely. Buffett said Berkshire’s intrinsic value “far exceeds” its book value and the gap is widening, partly because book value doesn’t reflect the true value of the businesses that Berkshire owns. Some analysts agree. “I just think the value of those owned businesses is just enormous,” said Paul Lountzis of Lountzis Asset Management of Wyomissing, Pa., a Berkshire shareholder who estimated intrinsic value could be as high as $270,000 per share. Whitney Tilson, owner of Kase Capital Management in New York City, estimates the intrinsic value at $226,253, based on Berkshire’s year-end figures. “That doesn’t factor in Warren Buffett doing anything smart, any more deals,” he said.

250,000

200,000

BERKSHIRE HATHAWAY VALUES

$270,000

(per Class A share)

Intrinsic value (range of estimates)

Book value

$216,000

$192,255

Market value

150,000

100,000

$32,100

$141,700 (est.)

50,000

0 ’95

$14,426 ’97

’99

’01

SOURCES: Berkshire Hathaway Inc., Yahoo Finance

Whitney Tilson: The owner of Kase Capital Management estimates the intrinsic value of Berkshire at $226,253.

Paul Lountzis: The shareholder says, “I just think the value of those owned businesses is just enormous.”

’03

’05

’07

’09

’11

’13

D AV E C R O Y / T H E W O R L D - H E R A L D

Why is Berkshire’s market price onethird less than its intrinsic value? To find out, consider the three basic ways of measuring a publicly traded company’s value: book value, market value and intrinsic value. For Berkshire, we’ll express each in dollars per Class A share. >> Book value at the end of 2013 was $134,973, a figure that has gone up an average of 14 percent annually for the past five years. Year-to-year percentage changes in Berkshire’s book value are “reasonably close” to percentage changes in its intrinsic value, Buffett said. >> Market value is easy to figure, too. Multiply 1.65 million times the price that buyers are willing to pay and sellers are willing to accept on the New York Stock Exchange, or about $190,000 per share. You’ll notice that market value is about 40 percent higher than book value. That’s because investors are willing to pay more when they consider nonaccounting factors that add value to a company such as its management, its track record, its brands and its outlook. >> Intrinsic value — the one Buffett says is so important — is an estimate that includes factors that don’t show up in book value. For example, Buffett said Geico, the auto insurer owned by Berkshire, has goodwill worth nearly $20 billion, an amount not included in book value. And Berkshire’s right to purchase discounted shares of Bank of America was worth $10.9 billion at the end of 2013 and doesn’t show up in book value, either. Tilson said Buffett’s definition of a “meaningful amount” greater than book value may be 1.6 to 1.8 times as high, or

in the range of $216,000 to $243,000 per share. Tilson’s estimate is within that range, at about 1.7 times book value. Here’s Tilson’s math: Investments: $129,253 Owned businesses: $97,000 Total: $226,253 The owned-businesses value figure is 10 times the companies’ latest earnings. The closest Buffett came to giving his estimate of intrinsic value was to say in the shareholder letter that it is a “meaningful amount” higher than 1.2 times book value, currently $162,000. That 1.2-times-book figure is the level where Berkshire would buy back its own shares, as it did when it bought $1.2 billion worth of its shares in December 2012. So far, the market price is well ahead of the 1.2-times-book price. Buffett would buy Berkshire shares only if it slips lower. Buffett’s 1.2-times-book buyback plan essentially puts a “floor” on Berkshire’s price of about $165,000 a share based on the year-end figures. That number has been rising, day by day, in recent months as Berkshire’s profits contribute to its value, so precise figures are not available. If he does buy shares, Buffett said he would be “aggressive.” That could mean buying as much as $20 billion worth of Berkshire stock, Tilson said, given Berkshire’s $48 billion cash supply. Some companies sell new shares of their stock to raise money for acquisitions or other purposes, but Buffett has tried to avoid issuing new shares. He said he and Berkshire Vice Chairman Charlie Munger “enjoy issuing Berkshire stock about as much as we relish prepping for a colonoscopy.” That’s because he believes Berkshire stock will be worth much more in the future than the dollars it would receive for issuing the shares — essentially, selling a piece of Berkshire at a price he believes is below its true value. He last issued new shares in 2010 when Berkshire bought BNSF Railway. Those 95,000 shares were worth $10.35 billion and added 6.1 percent to the number of Berkshire shares issued at the time. Today those shares are worth $18.1 billion, so a $20 billion repurchase would erase that BNSF stock sale. Lountzis said he has bought shares of Berkshire for his investors in the past few weeks and believes the price will continue climbing. He said book value may reach $164,000 in 2015, which could put intrinsic value higher than $300,000. Berkshire’s market value is lower than its intrinsic value partly because of a “conglomerate discount” due to being owned by Berkshire rather than being priced in-

DIFFERENT MEASUREMENTS OF VALUE

Intrinsic value The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. — Investopedia

BERKSHIRE HATHAWAY INC.’S CLASS A SHARES .MARKET VALUE. $192,255 on Friday. .BOOK VALUE. $134,973 on Dec. 31. .INTRINSIC VALUE. » Berkshire’s intrinsic value could be as high as $270,000, depending on the true value of the companies it owns. — Paul Lountzis of Lountzis Asset Management, Wyomissing, Pa. » Berkshire’s 2013 ﬁgures indicate an intrinsic value of $226,253, although estimates could range between $216,000 and $243,000. — Whitney Tilson of Kase Capital Management, New York City

dividually, Lountzis said. If Berkshire sold off the businesses it owns, it would receive much more than the amount that counts toward Berkshire’s value. “If it ever breaks up, the numbers are through the roof,” he said. Buffett’s age, 83, also may play a part in keeping Berkshire’s market price down because of investor fears that the company wouldn’t fare as well without him, Lountzis said. Buffett has a succession plan in place intended to keep the business on track without him. “He’s doing everything he possibly can to assure that the company can continue and prosper when he’s gone,” Lountzis said. Jeffrey Stacey, founder of Stacey Muirhead Capital Management Ltd. of Waterloo, Ontario, said as fuzzy as estimates of intrinsic value are, one factor remains steady: “That value continues to increase.” The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc. Contact the writer: 402-444-1080, steve.jordon@owh.com

Another big name added to portfolio: Exxon Mobil BY RUSSELL HUBBARD WORLD-HERALD STAFF WRITER

The market value of Berkshire Hathaway’s stock investments rose 34 percent in 2013, up from a 14 percent gain in 2012, as the company’s portfolio of bluechip investments anchored by familiar names such as Coca-Cola Co. and American Express Co. remained little altered from previous years. The performance of the stock portfolio outpaced that of the Standard & Poor’s 500 last year, with the benchmark index gaining 32 percent for 2013. Two stocks fell from the list of largest holdings, those of South Korean steelmaker POSCO and oil producer ConocoPhillips. There were two additions, including New York-based investment bank Goldman Sachs Group, whose shares were acquired by dint of options issued in conjunction with a large Berkshire cash infusion made during the 2008 banking crisis. The other newcomer that is sure to be a conversation starter for the thousands of people in town for this year’s annual meeting in Omaha today: oil giant Exxon Mobil Corp. Berkshire owned 41 million shares at year’s end, bought at a cost of $3.7 billion; the stake is now worth about $4.2 billion. Analysts say it is likely that Berkshire bought most of the Exxon stake in 2013’s third quarter, when prices hovered around $85 a share. They are now at about $100 a share. The purchase of shares in the world’s most proﬁtable company, said University of Maryland business professor and Berkshire shareholder David Kass, illustrates the stock-picking method that has made Berkshire Chairman and Chief Executive Warren Buffett a legend in the ﬁeld. Kass, like many who follow Buffett’s stock picks, believes the Oracle of Omaha has a mental list of companies he admires and whose shares he would like

to own, if only they were a little cheaper or if their underlying economics changed a little for the better. “Warren Buffett closely follows hundreds of stocks over many years by carefully reading their annual reports along with other ﬁnancial reports,” said Kass, a regular annual meeting attendee who brings business school students along. “He is very patient, and when circumstances change, such as an attractive price and an improved outlook for earnings over a ﬁve-year time frame or longer, he is ready to make a sizable investment.” Berkshire last year also made sizable investments by adding to existing holdings: >> 27.3 million additional shares of San Francisco-based Wells Fargo & Co., the nation’s fourth-largest bank. With a total of 483.47 million shares, Wells Fargo is Berkshire’s largest equity holding, a stake with a market value of about $24 billion, more than double what it has cost. >> An additional 18 million shares of U.S. Bancorp, the Minneapolis-based bank that is the 10th-largest in the country. Berkshire now owns 96.1 million shares, worth $3.9 billion, or about 30 percent more than they cost to purchase. >> Walmart Stores Inc., another Buffett favorite for many years, also attracted investment in an additional 1.9 million shares, for a total stake of 56.8 million shares worth about $4.4 billion, or about 50 percent more than it has cost to amass. There were also four stock holdings that still rank among the largest in the portfolio that Berkshire pared during 2013: >> DirecTV shares, an investment made by deputy stock pickers Ted Weschler and Todd Combs, were reduced by 760,000 shares to 22.2 million. The stake cost $1 billion and is now worth about 70 percent more, or $1.7 billion. >> There were 3.7 million fewer shares of Moody’s Corp., the New York-based

TOP BERKSHIRE HOLDINGS Shares

Company

151.6 million American Express

%Owned

Cost Market value

14.2

$1.3 billion

$13.8B

400 million

Coca-Cola

9.1

$1.3 billion

$16.5B

22.2 million

DirecTV

4.2

$1 billion

$1.7B $4.2B

41.1 million

Exxon Mobil

0.9

$3.7 billion

13 million

Goldman Sachs

2.8

$750 million

$2B

68.1 million

IBM

6.3

$11.7 billion

$12.8B

24.7 million

Moody’s

11.5

$248 million

$1.9B

20 million

Munich Re

11.2

$2.9 billion

$4.4B

20.6 million

Phillips 66

3.4

$660 million

$1.6B

52.5 million

Procter & Gamble

1.9

$336 million

$4.3B

22.1 million

Sanoﬁ

1.7

$1.7 billion

$2.4B

301 million

Tesco PLC

3.7

$1.7 billion

$1.6B

96.1 million

U.S. Bancorp

5.3

$3 billion

$3.9B

56.8 million Walmart Stores

1.8

$2.9 billion

$4.4B

483.5 million Wells Fargo

9.2

$11.8 billion

$24B

Source: Berkshire Hathaway 2013 annual report Share figures rounded as of Dec. 31. Excludes shares held in Berkshire subsidiary pension funds. Cost reflects actual purchase price and tax basis and is not reflective of GAAP adjustments.

firm supplying credit ratings and financial research. Berkshire now lists 24.7 million shares, worth about $1.9 billion, or an increase of more than sevenfold over the $248 million they have cost. >> Shares of Sanofi, a French drugmaker, were pared by 3.6 million shares, to 22.1 million. The stake is worth about $2.4 billion, or 41 percent more than its purchase price. >> The biggest reduction came among the shares of Tesco PLC, the U.K.’s largest supermarket chain, and the world’s second-largest retailer after Walmart. Berkshire last year shed 114.5 million shares of Tesco. The stake of 301 million shares was worth about $1.6 billion at the end of 2013,

David Kass: The business professor and Berkshire shareholder says Buffett is “very patient” in picking stocks.

or slightly less than what it cost. Another new entrant on the list of top holdings, New York-based investment bank Goldman Sachs, is also one likely to remain unchanged for years. Buffett is a longtime admirer of the company; the shares were amassed as a result of Buffett investing $5 billion with Goldman in 2008, as the nation’s banks teetered on insolvency. In addition to earning 10 percent interest on the $5 billion, Berkshire got the right to buy common shares in the future at a set price. The 13 million shares of Goldman now owned by Berkshire cost $750 million and are now worth about $2 billion. Berkshire has a similar agreement with Bank of America. The company has the right to buy 700 million shares of the Charlotte, N.C.-based bank for $5 billion before September 2021. Those purchase rights were worth about $11 billion at year’s end. “We are likely to purchase the shares just before expiration of our option,” Buffett wrote in his annual letter to shareholders. “In the meantime, it is important for you to realize that Bank of America is, in effect, our ﬁfth-largest equity investment and one we value highly.” Stock-market investments are just one part of Berskhire’s value equation. The company owns whole companies that make products from lollipops to railroad tank cars. Overall, Berkshire’s book value has lagged the Standard & Poor’s 500 in four of the past ﬁve years. It is not a common occurrence. Berkshire Hathaway’s book value has trailed the S&P 500 only 10 times since Buffett took over in 1965. And cumulatively, Berkshire has delivered compounded annual gains of 19.7 percent to the S&P 500’s 9.8 percent. Contact the writer: 402-444-3133, russell.hubbard@owh.com

WANT TO PURCHASE A GLOSSY PRINT OF A PAGE FROM PREVIOUS BERKSHIRE HATHAWAY COVERAGE? OR A PRINT OF A PHOTO FROM THIS SECTION? VISIT OWHSTORE.COM OR CALL 402-444-1014

12S

• SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

BNSF’s Carl Ice, left, and Matt Rose pose at the company’s display in the CenturyLink Center. The exhibit features a train that circles a mythical city — one with buildings that bear the names of companies in the Berkshire Hathaway family.

RAILROAD CEOs Carl Ice (CEO) and Matt Rose (executive chairman) Founded 1849; BNSF name created 1995 Bought Employees 2010 43,500 Headquarters Fort Worth, Texas

BNSF

More than 80 companies are under the Berkshire Hathaway ownership umbrella. We caught up with 26 of the CEOs, who arrived early for the annual Warren-fest. See the rest of the photos on Pages 16S-20S and full frames of all on Omaha.com

MEET THE CEOS

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

SATURDAY, MAY 3, 2014

14S

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

• SATURDAY, MAY 3, 2014

OMAHA WORLD-HERALD

Partnership lets Buffett ‘look at more fish in the sea’ Teaming with equity group expands the pool of potential Berkshire acquisitions BY STEVE JORDON WORLD-HERALD STAFF WRITER

Businesses with problems used to be off the acquisition radar of Berkshire Hathaway Inc. That was before last year’s purchase of H.J. Heinz Co. by Berkshire and a Brazilian investment firm, 3G Capital. That new brand of partnership gives Berkshire Chairman and CEO Warren Buffett a wider range of businesses he can think about buying. And that’s an advantage at a time when Berkshire is so big — a market value approaching $320 billion — that only huge acquisitions make significant differences in the company’s finances. “By partnering with someone like 3G, that allows him to look at more fish in the sea,” said Jim Zipursky, who manages the Omaha office of investment bank Corporate Finance Associates. It’s been a goal for at least 30 years that wholly owned companies like BNSF Railway and Geico become an increasingly important part of Berkshire, Buffett told The World-Herald. “We hope to keep going in that direction,” he said. In the past, Buffett has shunned companies that required cost-cutting, new management or other big changes. He pitched Berkshire as a long-term home for excellent companies, not a problem-solver for companies that needed an overhaul to reach their potential. Berkshire’s 25-person Omaha corporate staff, although nominally in charge of the 330,000 people employed by Berkshire-owned companies, delegates virtually all that responsibility to company managers. But with 3G, Berkshire supplied half the money and 3G’s executives supplied the rest and took over the “heavy lifting” at H.J. Heinz, naming a new CEO, closing production plants it considered excess and taking other cost-trimming steps typical of equity investment funds. Buffett said the 3G partnership is a “template” for future Berkshire acquisitions, either with 3G or with other investment funds. The template explands Berkshire’s options. “The privately held companies that he can acquire for billions of dollars, you just don’t have that many,” Zipursky said. “With that template, if he can find a good partner he trusts as far as running the business, that does allow him to look at some really good companies. “If he has a scorecard with 10 things, and a company has eight of them but 3G can run the other two, that does create more opportunities for him.” Michael Hupp, an attorney who works on acquisitions for Omaha’s Koley Jessen law firm, said Buffett is relying on 3G Capital’s leaders to manage Heinz correctly. “He must have a lot of faith in their ability to really lead the strategic charge for the company, including making senior management replacements that are necessary,” Hupp said. “He can just invest and doesn’t really have to be active.” Buffett said in his latest letter to Berkshire shareholders that 3G Capital’s leader is a friend, Jorge Paulo Lemann. Two of Lemann’s associates, Bernardo Hees and Alex Behring, are now Heinz’s CEO and chairman, respectively. In the past, Buffett has objected to private equity groups that buy companies, trim costs and then quickly sell. His practice is to buy good companies and keep them. With the 3G transaction, he said he intends to keep his Heinz stake and hopes to buy a bigger share as 3G winds down its ownership. That’s a “crucial difference” from the typical private equity transaction, Buffett said. Private equity groups typically raise money from investors and promise to return a profit within 10 years, regardless of the economic changes during that time. “Berkshire’s investment horizon is not constrained by timing,” Zipursky said. And because of its cash supply, Berkshire doesn’t have to borrow money to make purchases, he said. “A business may struggle, but it’s not crushed under the debt load of acquisition financing.” Berkshire’s plan to hold onto Heinz is not typical in the world of private equity firms, which make most of their profit when they resell a business. “We call it flipping the business. Berkshire’s businesses don’t flip.” Contact the writer: 402-444-1080, steve.jordon@owh.com

KENT SIEVERS/THE WORLD-HERALD

“It’s a great way to create value for Berkshire Hathaway,” Oriental Trading Co. CEO Sam Taylor said of the “bolt-on” acquisition concept. “These companies don’t take any extra management time” for Berkshire’s headquarters ofﬁce.

Feeding an appetite for acquisitions Buffett remains open to more ‘bolt-on’ purchases and urges managers of Berkshire companies to propose good buys BY STEVE JORDON • WORLD-HERALD STAFF WRITER

Quiz: What Omaha Fortune 500 company acquired 27 other businesses in 2013? • Not a trick question. It’s Berkshire Hathaway Inc., which is hosting its annual shareholders meeting in Omaha today. • The only trick is that few people have heard of most of the deals. Berkshire’s purchases of NV Energy and roughly half of H.J. Heinz Co. made the news because they were big enough (about $32 billion altogether) to require disclosure under federal securities rules. The 25 others, from $1.9 million to $1.1 billion, are in a category Chairman and CEO Warren Buffett calls “bolt-on” acquisitions by “platform” companies Berkshire already owns. How valuable are the new acquisitions? Last year’s purchases brought in $800 million in cash and added about $300 million to the company’s annual pretax earning power. Buffett told The World-Herald that bolt-ons will increase because Berkshire owns more companies every year and company managers are charged with proposing good acquisitions, even if it takes extra money from Berkshire to complete the deals. “Our companies don’t worry about cash,” Buffett said. “I worry about cash. They don’t have to have it on their own. If they have no cash and there’s a good idea, they’ll get it from me that day.” Although the purchase prices for the 25 companies totaled $3.1 billion, most were too small to require formal disclosure by the corporation. But some were reported anyway because of news interest. Buffett wrote in his shareholder letter that Berkshire also bought the remaining shares of industrial companies Iscar Ltd. and Marmon Group, for $3.5 billion, and BH Media’s purchases of four midsize daily newspapers generated newspaper stories during the year. Future such deals, he said, in aggregate, “will be meaningful.” Berkshire’s appetite for acquisitions, small and large, is growing, to the point where Buffett said he’s willing to sell any of the company’s stock holdings to buy more operating companies. Buffett has discussed “forever” investments in the past. In 1989, when Berkshire first became a major owner of Coca-Cola shares, Buffett said, “Our favorite holding period is forever.” Berkshire is still Coke’s largest shareholder, with 9.1 percent. “Forever” might be “favorite,” but apparently no stock position is “forever.” “None of the stocks are forever, but they’re for very long terms,” Buffett said recently on CNBC. His willingness to sell the shares shows his increasing preference for wholly owned companies as opposed to partial ownership through common stock. It’s still important to own the right stocks, he said in his annual letter to shareholders. “We much prefer owning a noncontrolling but substantial portion of a wonderful company to owning 100 percent of a so-so business; it’s better to have a partial interest in the Hope Diamond than to own all of a rhinestone.” But if the right business comes along, even at a high price, selling shares in a top investment can be part of Buffett’s financial calculation. Berkshire has $48.9 billion in cash on hand and will hold onto at least $20 billion to keep its finances solid. That

leaves nearly $30 billion in cash to buy businesses, a figure growing by about $1 billion a month generated by Berkshire’s businesses. Worldwide, there are hundreds of businesses valued at more than $30 billion. If Buffett wanted to buy a company that cost a lot more than that, he has at least four options: 1. Sell new shares of Berkshire Hathaway, as he did in 2010 when he bought BNSF Railway. 2. Issue bonds, essentially IOUs to investors. 3. Sell some of the $115 billion worth of common stocks that he owns. 4. Share the cost with a partner, as he did with 3G Capital of Brazil for the Heinz purchase. Buffett doesn’t like No. 1, which would mean splitting Berkshire’s ownership among more shares of stock, or No. 2, which would carry interest costs. Apparently he would prefer No. 4, finding a partner, to No. 3, which would mean parting with shares of companies he considers in the “diamond” category. Michael Hupp, an attorney who works in acquisitions for the Omaha law firm Koley Jessen, said Berkshire’s stock holdings aren’t necessarily “instant liquidity” that Buffett could use to purchase whole companies. “The second he starts liquidating stock in some of these entities, the market’s going to react,” Hupp said. “Unfortunately for him, he could move the market. If he sells a meaningful amount, essentially he’s telling the market that it’s overpriced.” That could reduce the amount of money that selling the stock would yield, he said, and reduce the market value of the rest of the stock Berkshire owns in the same company. Not necessarily, Buffett said in an interview. “That certainly would be true if, in a declining market, we were selling billions and billions worth of a company’s stock,” he said. “But we’ll never be in a position where we have to sell anything at declining prices. When it’s sold, it will be at advancing prices, not declining prices, because we can always deal from a position of strength.” One bolt-on acquisition last year was close to home: Berkshire’s Oriental Trading Co. of Omaha bought MindWare Holdings, an educational games company, for an undisclosed amount of money last June. Oriental Trading shifted MindWare’s warehouse and call center work to more efficient operations in Omaha and left its corporate staff, marketing, creative and other executive functions in a Minneapolis suburb. MindWare is an “adjacent” business, selling a line of educational games via catalogs and online that are new to Oriental Trading, which focuses more on toys, party supplies and novelties. Oriental Trading also closed the purchase of SmileMakers on Friday. The Spartanburg, South Carolina, company sells patient-cheering trinkets to doctors and dentists and brings its medical market dominance to Oriental Trading.

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Jim Zipursky: The investment bank manager said he has met CEOs whose goal is to sell their business to Warren Buffett.

Michael Hupp: The Koley Jessen attorney cautions that the stock market could react if Berkshire sells some of its stock holdings.

“It’s a great way to create value for Berkshire Hathaway,” said Oriental Trading CEO Sam Taylor. “These companies don’t take any extra management time” for Berkshire’s headquarters office. That means Buffett and Berkshire Vice Chairman Charlie Munger, with some help from money managers Ted Weschler and Todd Combs and financial assistant Tracy Britt Cool, can concentrate on bigger acquisitions. Taylor and other CEOs at Berkshire let Buffett know what they’re planning, and he can offer his counsel. But they handle the details of integrating acquired businesses into their operations. Taylor is looking for more smaller-scale acquisitions that meet Berkshire’s standards. “We take a similar approach,” he said. “We don’t overpay. We pay a fair value. We’re looking for strong companies with good management teams and strong brands and a good business model.” Berkshire’s 80-plus companies contain a wide range of what Buffett calls “core competencies,” from managing aircraft to marketing zircons. That gives it a wide range of potential acquisitions, and the list grows every time Berkshire gains a large company. While some businesses might resist being purchased, others seek it out. Jim Zipursky, who manages the Omaha office of investment bank Corporate Finance Associates, said he has met CEOs whose goal is to sell their business to Warren Buffett. “We’re speaking with a company now that says, ‘Gee, if you can get us in to see them, we’d really like to because that’s who we’d like to sell our business to,’ ” Zipursky said. Buffett’s style of buying a company and leaving the current management in place to run the business is well-known, and is evident locally: He bought the Nebraska Furniture Mart in 1983 from the Blumkin family, which is still running the store. “The Berkshire Hathaway growth strategy of acquiring well-run, well-managed, privately held businesses is excellent,” Zipursky said. “It’s a good lesson for any business owner of a privately held business who’s thinking of selling his or her business.” Buffett didn’t invent the management-in-place requirement for acquisitions, Zipursky said. “What he’s done is perfecting his razor focus on the type of business he’s interested in.” Nor did Buffett invent the “platform and bolt-on” strategy, which Hupp said enables a company to leverage its expertise and its back room and administrative help while exposing it to new markets and new ideas. “Banks have done it for years, growing by buying smaller banks and eliminating some of the overhead.” Companies may buy competitors and try to “roll up the industry,” he said. That’s why restrictions on monopolies sometimes come into play. But Berkshire’s large scale makes the strategy effective, Hupp said. “What Berkshire likes to do is get into different products that complement the products they have. Then they can get access to a whole new customer base and cross-sell as well.” The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc.

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Vendors appeal to the serious and silly sides of shareholders BY JANICE PODSADA • WORLD-HERALD STAFF WRITER

“Dream Big” by Cris Correa, new; “Forty Chances: Finding Hope in a Hungry World” by Howard G. Buffett, new; “Of Permanent Value” by Andrew Kilpatrick, new edition; “Secret Millionaires Club” by Andy and Amy Heyward, new; “Security Analysis” by Benjamin Graham, sixth edition; “Strategic Value Investing” by Stephen Horan, Robert Johnson and Thomas Robinson, new; “Tap Dancing to Work” by Carol Loomis, new edition; “Warren Buffett on Business” by Richard Connors, new edition; “Warren Buffett Way” by Robert Hagstrom, new edition; “Warren Buffett: An Illustrated Biography” by Ayano Morio, new price. Howard G. Buffett, a son of Warren’s, is expected to sign copies of “Finding Hope in a Hungry World,” sometime during the morning at the Bookworm’s booth. The Bookworm sells thousands of books at the event.“It’s like Christmas in one day,” Black said. “So many investors want to know what he and Charlie (Munger) are reading.” » Brooks running shoe and apparel company: Only a couple thousand pairs of limited edition Berkshire Hathaway Transcend commemorative running shoes will be sold at the meeting. The company also is presenting the Berkshire Hathaway Invest in Yourself 5K on Sunday, offering prizes for the largest and fastest company teams and a special ﬁnisher medal. » Business Wire will sell commemorative pennants to raise money for a local charity that beneﬁts abused and neglected children within the court system. This year’s 2014 Berkshire Hathaway Sluggers baseball pennant sells for $7, or two for $10. All proceeds go to Court Appointed Special Advocates for Douglas County. » Fruit of the Loom: The 2014 “Berky Boxer” commemorative uni-

Among the lighthearted products for purchase are “Warren & Charlie Fiesta Ducks” offered by Oriental Trading.

Fruit of the Loom offers “Berky Boxer” commemorative unisex shorts.

Items for sale include a Berkshire Hathaway limited edition of MindWare’s board game Qwirkle.

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In ketchup competition, we’ll see who cuts the mustard

There are items to play and items to ride — and something to wear and read both The Berkshire Hathaway annual meeting just wouldn’t be the same without lots of things to buy, so bring your credentials and your wallet. The 194,300-square-foot hall that adjoins the meeting area will be, as always, filled with booths displaying or offering products from dozens of Berkshire Hathaway companies, including shoes, candy, toys, jewelry and boxer shorts. Shareholders last year snapped up 1,062 pairs of Justin boots, 12,792 pounds of See’s candy, 11,162 Quikut knives and 6,344 pairs of Wells Lamont gloves in just nine hours, according to the 2013 Berkshire Hathaway annual report. Among the offerings this year: » Berkshire Chairman and CEO Warren Buffett will toss things before the official meeting starts: Newspapers at the front porch of a Clayton Homes house, and baseballs between the Justin Brands and H.H. Brown booths, where he will try to out-pitch members of the Omaha Storm Chasers AAA baseball team. » Among the boots at Justin’s: Exclusive black cherry caiman leather boots with black cowhide uppers. » The Bookworm, an Omaha bookstore at 87th and Pacific Streets: It isn’t owned by Berkshire Hathaway, but it’s had a presence at the shareholders meetings since 1986. This year, as in previous years, the bookstore will offer shareholders a 20 percent discount on most items. And anything sold at the meeting “has to be OK’d by Mr. Buffett,” said Beth Black, who coowns the store with husband Phillip. “We try to get him a list of titles in January and he crosses off what he doesn’t want us to carry.” Here’s what’s new this year: “Berkshire Hathaway Letters to Shareholders” by Max Olson, new edition; “Buffett’s Bites” by L.J. Rittenhouse, new edition; “Damn Right!” by Janet Lowe, new price;

SATURDAY, MAY 3, 2014

sex shorts. Pair it with the $6 2014 Berky Tee, featuring the wisdom of Warren and Charlie. » Geico: In most cases shareholders will be eligible for an 8 percent discount. Bring details of existing insurance and the staff will check for discounts. » NetJets: If you’re searching for a new set of wings and wheels, visit Signature Flight Support on the east side of Eppley Airfield between noon and 5 p.m. Saturday to look at a fleet of NetJets aircraft. A shuttle will run from the CenturyLink Center Omaha. » Oriental Trading will offer limited-edition “Warren & Charlie Fiesta Ducks” for $5 a pair and a Berkshire Hathaway limited edition of MindWare’s board game Qwirkle for $20. » See’s Candies’ goodies will include a limited-edition, 8-ounce box of candy made just for the annual meeting. For those interested in something heavier, the company will display a 7-foot-tall, 7,003-pound lollipop — a replica of the world’s largest-ever, as certified by Guinness World Records in 2012.

Images of Warren Buffett and Charlie Munger have graced M&Ms, running shoes, money clips, bobblehead dolls and $100 bills. Today the chairman and vice chairman, respectively, of Berkshire Hathaway Inc. will face off on 10-ounce ketchup bottles, 20,000 of them, at H.J. Heinz’s booth in the CenturyLink Center Omaha. Heinz is a new exhibitor at the Berkshire shareholders annual meeting, by virtue of its purchase last year by Berkshire and 3G Capital, a Brazilian investment company. For its booth, Heinz set up a competition between Buffett and Munger, said spokesman Michael Mullen: Whose image will sell the most bottles? Buffett gave Munger an advantage by pricing his bottle at $2 and Charlie’s bottle at $1.50. Both are discounts from the regular price of about $2.50. Proceeds from the sales will go to the Heinz Micronutrient Campaign, which aims at reducing irondeﬁciency anemia in children around the world. Heinz distributes a powdered mixture of vitamins, minerals and iron around the world to mix with children’s food. Mullen said Buffett expects to sell more bottles, leaving Munger to “ketch up” as best he can. Really. — Steve Jordon

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OMAHA WORLD-HERALD

View of event changes for new Borsheims CEO BY JANICE PODSADA WORLD-HERALD STAFF WRITER

The new chief executive at Borsheims Fine Jewelry stepped into the role Jan. 1. For many retailers, the post-holiday season is a chance to scale back activities — a good time for a new CEO to ease into position. But that’s not the case at Borsheims, the Berkshire Hathaway-owned jewelry retailer. When the holiday shopping season ends, Borsheims begins gearing up for the first week of May, Berkshire Hathaway weekend, when thousands of shareholders will shop or participate in store events. “We have to place all of our orders for Berkshire by the end of January,” said Karen Goracke (gohr-ACK-ee), Borsheims’ new president and chief executive. That means she hit the ground running. The countdown to Berkshire week had Goracke and the entire staff picking up the pace: training employees, creating new merchandise displays, making sure the store sparkles and supervising the installation of new artwork in the store’s soaring atelier. Borsheims events bookend each side of the annual meeting, with a Friday night cocktail reception and a Sunday brunch and shopping day. During the Saturday meeting, Borsheims, of course, has one of the booths in the exhibit hall offering Berkshire-specific wares and other items to shareholders. This will be the first year Goracke will be at the helm during the shareholders meeting. “I’m nervous. ... I will be seeing it from a different aspect,” she said, but then added, “It’s fun to be steering the ship.” Everyone, including Borsheims’ executive team, has been supportive, Goracke said. “It isn’t like I feel like I’m doing this all myself.” Goracke said she doesn’t plan to change up this year’s Borsheims Berkshire events. Sunday, for the fourth year in a row, Buffett will step behind the counter and sell jewelry. It’s a once-a-year gig and a treat for customers and staff, even though the chairman’s “Crazy Warren” prices “make me cringe a bit sometimes,” Goracke said, smiling. At shareholder events, Goracke plans to be out front, greeting new and returning shareholders and customers. Expect a smile and a relaxed demeanor, said Terry Kroeger, president and chief executive of BH Media Group, a Berkshire Hathaway subsidiary, and publisher of The World-Herald. Kroeger recently met with Goracke, offering her any help she might need.

As the new president and CEO of Borsheims Fine Jewelry, a Berkshire Hathaway company, Karen Goracke plans to be out front at Berkshire shareholder events this weekend, greeting shareholders and customers. M AT T M I L L E R THE WORLDHERALD

“It’s almost infectious working here. It’s really fun. You get to work with wonderful people and look at pretty things all day.” Karen Goracke, Borsheims CEO

“She’s down-to-earth and so easy to talk to. She’s very Omaha,” Kroeger said. Other executives at Borsheims’ sister companies have welcomed Goracke with open arms, including Ronald Blumkin, president and chief operating ofﬁcer of Nebraska Furniture Mart. She said he told her he was ready to “help her with anything.” Goracke is the fourth Borsheims CEO since the Friedman family bought the business in 1947. Warren Buffett tapped Goracke to lead the jewelry company owned by Berkshire Hathaway Inc. last October after then-CEO Susan Jacques announced her retirement. Jacques, who now heads the Gemological Institute of America, had been CEO for 21 of the 31 years she worked at Borsheims. From October to December last year, Goracke worked alongside Jacques. As director of merchandising at Borsheims Fine Jewelry, Goracke never shied away from toting boxes from the stockroom to the showroom. Now, four months into her new position, her focus is on the “whole store,” not just what’s displayed in the cases. “It’s different than running just the buying team,” Goracke said. “Now I’m thinking about all the different departments.” A typical week includes meeting with

Business insurance unit adds to ‘lifeblood’ of Berkshire BY RUSSELL HUBBARD WORLD-HERALD STAFF WRITER

Don’t expect to see Warren Buffett’s latest insurance idea on the convention floor, competing this weekend for shareholder shopping dollars with fellow subsidiaries such as Brooks running shoes, Geico auto insurance and Justin Boots. Berkshire Hathaway Specialty Insurance, about one year old, is more of a business-to-business setup, selling coverage for large and complex risks, such as policies that pay the legal bills of corporate officers and directors embroiled in shareholder lawsuits. “Our business is a little bit different,” conceded President Peter Eastwood, who leads the 289-employee company from its Boston headquarters and plans to attend his first Berkshire annual meeting today with fellow executives of BHSI. Berkshire Hathaway, long enamored of the investable cash provided by insurance companies, is making a deeper investment in business insurance via BHSI, as some of the risks faced by U.S. firms appear to be rising. Shareholder lawsuits objecting to actions authorized by the directors and officers of publicly traded companies are one example: There were 234 such suits seeking class-action status filed in federal courts last year, the most since 2008. “Insurance companies are the lifeblood of Berkshire Hathaway,” said Andy Kilpatrick, whose “Of Permanent Value” bio of Buffett runs 1,300 pages in the 2014 updated edition. Coverage for the legal liabilities arising from serving as a director or officer of a publicly traded corporation is one area of concentration for BHSI. Eastwood said directors and officers face enormous responsibility, making decisions that affect

Peter Eastwood

David Fields

shareholders, employees and customers. Laws such as last decade’s Sarbanes-Oxley Act, which criminalized some public company offenses, have made directors and officers coverage more important than ever, as few people would agree to serve in such a position without company-paid insurance against the legal liabilities. “There is definitely a heightened awareness of regulations and corporate governance,” said Eastwood, who noted that many of the company’s customers are American companies easily recognized by most people. Eastwood is an alum of New York-based insurance giant AIG, the world’s largest insurer. He and three other top BHSI executives — David Bresnahan, David Fields and Sanjay Godhwani — left AIG to form BHSI. The idea of branching into the commercial property and casualty field was proposed by Buffett insurance chief Ajit Jain, after he was contacted by the former AIG executives, who wanted to play for a new team. The idea of forming a new one with them as the nucleus was then greenlighted by Buffett, who said he expects the business to soon “generate volume in the billions” for Berkshire shareholders. “We’ve got the right people now,” Buffett said in an interview with The World-Herald. “That certainly was a big part of it. Maybe we should have gone into it a long time ago, but I don’t think we had exactly the right people.” The property and casualty

Sanjay Godhwani coverage offered by BHSI is a big ﬁeld. Property insurance protects against the loss of assets or the loss of their income-producing abilities. Casualty insurance protects against legal liability stemming from injury to other people or damage to their assets. All told, U.S. property and casualty insurers wrote about $515 billion worth of premiums in 2012, with auto and home coverage accounting for about $275 billion. BHSI, which also has ofﬁces in New York and other U.S. cities, also sells coverage for institutions such as banks, hospitals and public utilities; medical malpractice insurance for doctors and hospitals; professional liability coverage for lawyers, architects and engineers; and other business-oriented policies. Already, there have been two acquisitions: Insure America, which insures travel agents for professional liabilities, and MyAssist, a live-agent personal concierge service for motorists. BHSI plans this year to expand internationally. Dave Fields, a BHSI executive vice president, said such efforts are easy to accomplish, as he has found the legendary “handsoff” management policy at Berkshire to be true. ““That is how we have been able to move so quickly to date. I haven’t had to do a PowerPoint presentation in the past 12 months.” The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc. Contact the writer: 402-444-3133, russell.hubbard@owh.com

the company’s chief financial officer, the director of sales, the director of marketing and other department heads. Fridays she drives to Gretna to visit Borsheims Boutique at Nebraska Crossing Outlets, the company’s first foray into an outlet store format. Borsheims Boutique has allowed the company to touch a different client base. “It’s been a great way to introduce ourselves to people that might be intimidated to come here,” she said, referring to the flagship store at Regency Court. A native of Omaha, Goracke earned a bachelor’s degree in business administration from the University of Nebraska at Kearney. She began her career at Borsheims in 1988 as a saleswoman in the gifts department and was promoted to inventory supervisor in 1989, when Berkshire Hathaway purchased Borsheims, developing a “controlled inventory system” along the way. Goracke took advantage of a Borsheims culture — 85 percent of its employees are women —- that supports “family first.” From 1998 to 2004, Goracke, the mother of three boys, took a break from working to raise her children. Like other Borsheims employees, she came back, and at the CEO’s request. Part

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time soon became full time. “I was just going to work school hours,” Goracke said. “It’s almost infectious working here. It’s really fun. You get to work with wonderful people and look at pretty things all day.” Chief executives aren’t supposed to double as stockers, but Goracke admits she still gets the urge to carry boxes or open cartons of new merchandise should they cross her path. Knowing that, the store’s maintenance staff gave her her own box cutter and a hook to hang it on. “It’s what I love to do. They can’t stop me now,” she said, laughing. “I’ve deﬁnitely been a worker. I have worked with every department from shipping to gift wrapping.” Borsheims continues to allow employees to strike a balance between work and family, Goracke said. In fact, on a recent afternoon, the new chief executive planned to leave the store at 5:15 p.m. to catch her son’s 5:30 p.m. soccer game. “I bring my jeans with me and throw them on in the ofﬁce. My staff sees that and knows ‘Oh, you’re going off to a soccer game.’ Yup, here I go!” Contact the writer: 402-444-1142, janice.podsada@owh.com

■ BOOK SIGNING TODAY

Author Steve Jordon will sign copies of his book “The Oracle & Omaha” at the Bookworm booth during today’s Berkshire Hathaway meeting

■ LIVE CHAT 5-6 PM ON OMAHA.COM

Listen to a live chat with Steve Jordon following the meeting

HOW WARREN BUFFE

E & OMAHA

ND HIS HOMETOWN SHAPED EACH OTHER

distractions. In return, Omaha

THE

& OMAHA O HOW W HIS HOMETOWN SHAPED EACH OTHER

STEVE JORDON

that came his way and from the generosity of his early investors. It turned out relationship for

& Omaha. Author Steve Jordon, who writes the Warren Watch column for the Omaha World-Herald, tells the story

Steve Jordon has reported business news for 35 years for the Omaha World-Herald. His work has been recognized by the University of Nebraska at Omaha, the Associated Press, the Society of American Business Editors & Writers and the American Society of Newspaper Editors.

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SATURDAY, MAY 3, 2014

• 17S

The CEOs of Berkshire Hathaway H.J. HEINZ CO.

BUSINESS WIRE

FOOD MANUFACTURER CEO Bernardo Hees Founded 1869, Pennsylvania Bought 2013 (investment consortium with 3G Capital) Headquarters Pittsburgh Employees 29,000

H.H. BROWN SHOE GROUP SHOES CEO Jim Issler Founded 1883 Bought 1991 Headquarters Greenwich, Conn. Employees 1,128

PRESS RELEASE DISTRIBUTION CEO Cathy Baron Tamraz Founded 1961 Bought 2006 Headquarters San Francisco and New York Employees 488

FECHHEIMER UNIFORMS CEO Bob Getto Founded 1842 Bought 1986 Headquarters Cincinnati Employees 426

JUSTIN BRANDS WESTERN BOOTS AND FOOTWEAR CEO Randy Watson Founded 1879 Bought 2000 Headquarters Fort Worth, Texas Employees 1,109

GEICO

INSURANCE CEO: Tony Nicely Founded: 1936 Bought: 1996 Headquarters: Chevy Chase, Md. Employees: 29,057

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BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

• SATURDAY, MAY 3, 2014

SATURDAY, MAY 3, 2014

BERKSHIRE HATHAWAY ENERGY Formerly MidAmerican Energy Holdings ENERGY PROVIDERS CEO Greg Abel Founded 1995 (merger of existing energy companies) Bought 1999 Headquarters Des Moines Employees 3,863

SCOTT FETZER COS. INCLUDES ALTAQUIP POWER AND LAWN EQUIPMENT REPAIRS, KIRBY VACUUMS, WORLD BOOK CEO: Bob McBride Founded 1914 Bought 1985 Headquarters Westlake, Ohio Employees 691

LARSON-JUHL CUSTOM FRAMING PRODUCTS CEO Drew Van Pelt Founded 1893 Bought 2002 Headquarters Norcross, Ga. Employees 1,430

ORIENTAL TRADING DIRECT RETAILER OF PARTY SUPPLIES, NOVELTIES CEO Sam Taylor Founded 1932 Bought 2012 Headquarters Omaha Employees 1,461

NETJETS PRIVATE AVIATION SERVICES CEO Jordan Hansell Founded 1986 Bought 1995-1998 Headquarters Columbus, Ohio Employees 6,157

SEE’S CANDIES CANDIES AND CHOCOLATES CEO: Brad Kinstler Founded: 1921 Bought: 1972 Headquarters: South San Francisco, Calif. Employees: 3,000 PRECISION STEEL WAREHOUSE

JOHNS MANVILLE BUILDING MATERIALS MANUFACTURER CEO Mary Rhinehart Founded 1858 Bought 2001 Headquarters Denver Employees 6,855

STEEL SERVICE CENTER CEO Terry Piper Founded 1940 Bought| 1979 Headquarters Franklin Park, Ill. Employees 157

BENJAMIN MOORE CO.

PAINTS AND DECOR CEO: Mike Searles Founded: 1883 Bought: 2001 Headquarters: Montvale, New Jersey Employees: 2,102

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DAIRY QUEEN RESTAURANT FRANCHISER CEO John Gainor Founded 1940 Bought 1998 Headquarters Edina, Minn. Employees 483

BH MEDIA GROUP NEWSPAPER GROUP CEO Terry Kroeger (also World-Herald publisher) Founded 1850 (Richmond Times-Dispatch) Bought 2011 purchase of The World-Herald, added newspapers in 2012 and 2013 Headquarters Omaha Employees 4,825

BROOKS SPORTS INC. RUNNING SHOES AND APPAREL CEO Jim Weber Founded 1914 Bought by Russell Corp. in 2004, Berkshire in 2006 Headquarters Seattle Employees 576

BOATUS INSURER CEO Brian Wesselman Founded 1966 Bought 2007 Headquarters Alexandria, Va. Employees 436

CLAYTON HOMES MANUFACTURED HOMES CEO Kevin Clayton Founded 1966 Bought 2003 Headquarters Maryville, Tenn. Employees 11,850

CORT FURNITURE RENTALS CEO Jeff Pederson Founded 1972 Bought 2000 Headquarters Chantilly, Va. Employees 2,197

MARMON GROUP 150 INDEPENDENT MANUFACTURING AND SERVICE BUSINESSES CEO Frank Ptak Founded 1953 Bought 2008-2013 Headquarters Chicago Employees 16,961

NEBRASKA FURNITURE MART FURNITURE, ELECTRONICS AND APPLIANCES RETAILER CEO Irv Blumkin Founded 1937 Bought 1983; bought 90% with a handshake Headquarters Omaha Employees 2,773

THEY COME TO OMAHA FROM ALL OVER, AS IF DRAWN BY SOME POWERFUL FORCE. Berkshire Hathaway shareholders? Well, sure, them too. But we’re talking about the brightest minds in science and medicine, streaming in to join equally talented colleagues already here at UNMC. At the University of Nebraska Medical Center, we’ve bolstered our internationally renowned faculty with an influx of recent hires from the likes of Harvard Medical School, Johns Hopkins and Mayo Clinic. Why are so many of academic medicine’s rising stars coming here? Education programs ranked in the top 10 by U.S.News & World Report. Strong, strategic partnerships in China and beyond. The state-of-the-art Fred & Pamela Buffett Cancer Center, going up as we speak. And, just ask the Oracle how he likes living in Omaha. UNMC. Breakthroughs for Life.®

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THE PAMPERED CHEF KITCHENWARE CEO Doris Christopher Founded 1980 Bought 2002 Headquarters Addison, Ill. Employees 676

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

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SATURDAY, MAY 3, 2014

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JAMES R. BURNETT/THE WORLD-HERALD

What a difference a year makes

Visitors to Omaha can enjoy the improvements at Gene Leahy Mall, including better walking trails around the lagoon. The park area is within walking distance of downtown hotels.

Since the last shareholders meeting, the Omaha area has seen remarkable changes BY CINDY GONZALEZ • WORLD-HERALD STAFF WRITER

ew entertainment spots, new hotel rooms, a massive new outlet mall. The return of a landmark lagoon meandering through the city’s core. • Omaha has these and other different sights, sounds and tastes since Berkshire Hathaway shareholders converged here last May. Take a look at some of the changes: » For the ﬁrst time in years, perhaps 15, all the water features in downtown’s two main parks are operational. “Everything is rockin’ and rollin’,” said City Parks Director Brook Bench. At Gene Leahy Mall, the lagoon was dredged and water has returned. Around the lagoon is new lighting and either new or repaired segments of limestone wall and walking trails. At Heartland of America Park, two fountains and a cascading waterfall are repaired and running; visitors now can watch the light show at the big fountain. » A 350,000-square-foot, $112 million Nebraska Crossing Outlets shopping center opened in the suburb of Gretna — featuring new-to-Nebraska brands such as Michael Kors and Kate Spade New York. The area’s ﬁrst fully digital mall has interactive, touch-screen kiosks; and customers can use a QR code scanner on mobile devices to download information. The center also offers a second place to shop for Borsheims jewels. The Berkshire Hathaway company in November launched a 5,500-square-foot Borsheims Boutique outlet targeting younger, value-conscious shoppers.

» A few high-profile downtown Omaha restaurant spots have different tenants. Those who remember the storied French Café, which operated for four decades at 1013 Howard St., now will find there a modern French bistro called Le Bouillon. Storz Trophy Room Grill & Brewery has moved into the former Rick’s Cafe Boatyard on Omaha’s riverfront. The Storz opening relaunched the Storz beer brand in Omaha after a 40-year hiatus. » New breweries — such as Borgata Brewery and Distillery downtown, and the Benson Brewery and Infusion Brewing Co. in Benson — have joined veterans like downtown’s Upstream Brewing Co. and La Vista’s Lucky Bucket. (Note also that Krug Park and Crescent Moon were named recently as two of the best beer bars in the country by Draft Magazine.) » New options on the downtown hotel front include Nebraska’s first Hyatt and a Residence Inn by Marriott that used to be a historic federal office building. The 159-room Hyatt Place stands 10 stories at 12th and Jackson Streets. The 152room Residence Inn at 15th and Dodge Streets blends modern amenities with historical elements, including a 1930s FBI

MIKE HEIDENREICH/FOR THE WORLD-HERALD

The fountains and a cascading waterfall are all working at Heartland of America Park. One of the fountains features a light show at night.

most-wanted poster (with mobster faces of Pretty Boy Floyd, Ma Barker and others) unearthed during renovation. » Gavilon’s new global headquarters was erected at 14th Street and Capitol Avenue, on a city block that used to be green space known as the World-Herald Square Plaza. The $44 million, roughly 130,000-square-foot glass office building contains a state-of-the-art trading floor. The company in July was sold for $2.8 billion to Japanese general trading firm Marubeni. » Aksarben Village in midtown, near 67th and Center Streets, has grown. The new corporate headquarters for retailer Gordmans just opened. A Marriott Residence Inn is being constructed, along with a new office building. Across Center Street to the south visitors will see the start of a new $87.9 million University of Nebraska at Omaha sports arena. » Lots of apartment buildings have sprung up, from the five-story Jones13 Apartments in downtown to the three-story Spaces Apartments in midtown to Springs at Legacy Commons in west Omaha (to mention just a few). Other apartments, including the Highline, the Wire and the Slate in downtown, were converted from old office structures. » At the Midtown Crossing campus near 31st Street and Turner Boulevard, a permanent outdoor stage and dancing area called the Pavilion at Turner Park has been built. A few new stores also opened, including the Ugly Sister Boutique and Me & Me.

Clayton’s display home to showcase ‘smart’ features BY CINDY GONZALEZ WORLD-HERALD STAFF WRITER

There’s something young and hip about octogenarian Warren Buffett’s annual newspaper toss event at this year’s Berkshire Hathaway gathering. The porch Buffett is pitching at is part of the new “concept house” that Clayton Homes has created to capture 19- to 37-year-olds — an emerging market the Berkshire homebuilder refers to as Generation Now. Unlike past years when Clayton’s modular display home was available to buy after the annual meeting, this home won’t be for sale. It will be disassembled, packed up and moved on to another show. The goal is to showcase its features and technologies — dubbed “smart points” — that can be customized into other homes that Clayton offers. “It’s not really about the house this year,” said company spokesman Carl Hill. “It’s about Generation Now and demonstrating smart points. We wanted to show our ﬂexibility and imagination and research that went into that.” Clayton’s prefabricated home has become a popular draw at the stockholders meeting, as for the past three years it’s been the site of Buffett’s 35-foot paper tossing contest. The Oracle of Omaha challenges any willing participant to land a World-Herald newspaper (which Berkshire also owns) closer to the model’s doorstep than he does. The prize: a Dilly Bar. While this year’s “concept house” has a traditional porch to aim at, shareholders will see less traditional

Above left, the new “concept house” that Clayton Homes has created has a traditional porch. Above right, inside are ﬂexible rooms and modern design elements.

features such as splashes of flamboyant color on trim and newer amenities. Inside will be trendy design elements such as sliding barn doors to maximize space and a recharging station and wall mount for electronic gadgets. According to Clayton’s researchers, the housing market by 2020 will consist of more first-time homeowners than ever before, as 92 million Gen Now consumers enter the market. The concept home is based on extensive research on that generation, which Clayton says “fights the

norm, embraces individuality and perceives the home as a personal reﬂection.” Clayton says that Gen Now wants in a home things like ﬂexible rooms, built-in storage, modern design elements and convenience. “Our designers have put careful thought and attention into supplementing this generation’s lifestyle throughout the home,” CEO Kevin Clayton said. “We constantly focus on innovation, and we wanted to create a home that would meet the needs of this impactful generation.”

Consumers can buy a Clayton home at centers in 48 states — the closest to the Omaha area are in Norfolk, Neb.; Sioux City, Iowa; and Ida Grove, Iowa. Smart point features that can be incorporated include: pop-up outlets that can be pushed out of sight when not needed; remote-control blinds and security systems that operate with a click of a smartphone; built-ins like a knife block in a drawer; and waterfall shower heads and a back-lit bathroom mirror that create a tranquil, spa-like feel.

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BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

• SATURDAY, MAY 3, 2014

OMAHA WORLD-HERALD

Beyond Berkshire: No shortage of other events in Omaha area A number of events are coinciding with this year’s Berkshire Hathaway shareholders meeting. Check out this calendar:

Omaha Storm Chasers vs. Oklahoma City 7:05 p.m. Saturday Werner Park, 12356 Ballpark Way • Papillion Saturday’s game will be “Husker night” featuring Nebraska football alumni. Other games on Sunday at 2:05 p.m. and Monday at 11:05 a.m.

Classical musician Itzhak Perlman

Lewis and Clark Kite Flying Festival

Omaha Farmers Markets

8 p.m. Saturday Holland Performing Arts Center, 1200 Douglas St. Tickets start at $35 and are available at TicketOmaha.com or 402-345-0606.

2 p.m. to 5 p.m. Saturday Bob Kerrey Pedestrian Bridge Includes activity booths, kite ﬂying, food, music by the Rivertown String Band and professional kite ﬂiers.

Saturday and Sunday Featuring fresh produce and handmade products kick off Saturday in the Old Market from 8 a.m. to 12:30 p.m. and Sunday at Aksarben Village, 67th and Center Streets, from 9 a.m. to 1 p.m.

Cinco de Mayo Omaha festival Saturday and Sunday Parade begins at 10 a.m. on Saturday and runs from 24th and D Streets to 24th and L. A ﬁesta will follow; more than 80 restaurants offering food, margaritas and live music will be on hand from noon to 10:30 p.m. Sunday: 10 a.m. Mariachi Mass on Plaza del Raza at 25th and N Streets, followed by a health fair from noon to 3 p.m. The carnival, food and vendor booths and live entertainment festivities will continue from noon to 8 p.m.

The Toast Nebraska Wine Festival Saturday and Sunday from 11 a.m. to 8 p.m. Mahoney State Park, 28500 W. Park Highway • Ashland, Neb. Admission is $25 to $65 to sample vintages from 17 Nebraska wineries. The weekend includes live music, unlimited wine sampling, an amateur wine-making competition, unique food pairings, art and jewelry vendors and trolley tours through the park.

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OMAHA WORLD-HERALD

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

SATURDAY, MAY 3, 2014

Don’t stop at steak: Other culinary treats await When it comes to eating on Berkshire weekend, there are Warren’s favorite steak spots — and then there’s World-Herald food writer Sarah Baker Hansen’s favorites. For the record, her steak picks are the classic Johnny’s Cafe, 4702 S. 27th St., or Brother Sebastian’s, 1350 S. 119th St., the winner of our Food Prowl for the city’s best red meat. That said, there’s a lot more to Omaha than simply steak. Here are Baker Hansen’s top five spots for those who want to turn Berkshire weekend into a culinary adventure.

Le Bouillon

Stuffed quail at Le Bouillon, which focuses on French comfort food.

1017 Howard St. • 402-502-6816 Chef Paul Kulik, known for his ﬁrst restaurant, the Boiler Room, has opened a thoroughly modern French bistro in the Old Market, in the same space where the now-closed French Café operated for more than 40 years. The restaurant is moderately priced, with an atmosphere mostly chic. Focused on French comfort food, Kulik and his chef de cuisine, Ben Jordan, invite diners to explore beyond the traditional appetizer-entree-dessert triumvirate into sections named “a cote” or “fruits de mer” or “petits plats.” It’s unusual. It’s also intentional. The small plates are where Le Bouillon truly excels. They are where it becomes more than just another French bistro — it becomes a place to have an experience. If you feel like being adventurous, skip entrees entirely and order across the menu, choosing whatever sounds best. I recommend anything under the “toasts” heading, especially the Florida rock shrimp toast; the melt-in-your-mouth house lardo paired with the meaty, red lyon, both on the charcuterie menu; or the frisee salad with smoked rabbit loin, green lentils and soft cooked egg on top. If you just want to stop in, do it early: from 3 p.m. to 5 p.m. every day the raw bar serves a daily oyster for $1 a shuck.

Kitchen Table

The Whole Bird is the star of the sandwich menu at Kitchen Table.

1415 Farnam St. • 402-933-2810 Midwestern food — solid, affordable, dependable — is at the heart of what this small downtown lunch and dinner spot does. Owner and chef Colin Duggan, who runs the space with his wife, Jessica, focuses on local and seasonal ingredients and makes them into sandwiches and specials worth remembering. The star of the sandwich menu is the Whole Bird, Colin’s twist on the sometimes-ﬂavorless grilled chicken on a bun. Tender seared chicken breast, conﬁt chicken leg cooked in its own juices and crispy chicken skin make the sandwich juicy and crunchy at once. The yolk of a fried egg binds things together and acts as a sauce, and a pile of greens lightens the load. Toasted bread holds it together. It’s salty, savory and rather decadent. My husband described it as “damn tasty”; I couldn’t think of anything more to say. Seasonal soups, texturally interesting salads, vegan and vegetarian specials made with care and a notable brunch menu mean that I’ll be back soon, saddled up at Kitchen Table for the restaurant’s brand of thoughtful, locally focused comfort food.

Avoli Avoli’s grilliata mista features a rotating selection of meats served with roasted vegetables.

5013 Underwood Ave. • 402-933-7400 Chef-owner Dario Schicke and chef Ben Maides know what they are doing at this northern Italian restaurant in Dundee, and the homemade pastas, thoughtful entrees and welcoming atmosphere land Avoli ﬁrmly in line with the city’s new favorites. The burrata, an appetizer that gets a makeover as the seasons change, has just been retooled. Last fall, the fresh cheese shell ﬁlled with mozzarella curd and cream was served next to a seasonally spicy and cinnamony round of roasted butternut squash and a drizzle of sweet quince sauce. For the spring, the dish comes served with guanciale, English peas, mint and pickled shallot. I also love Avoli’s grilliata mista, a daily rotating selection of three meats served with roasted vegetables and potatoes. Think sausage, fresh seafood, chicken, beef or whatever else strikes the fancy of the chef that day, all cooked to perfection and sized to share, if you’re so inclined.

The bar menu at the Grey Plume

The Grey Plume’s highend burger is available at the bar.

220 S. 31st Ave. • 402-763-4447 I’d wager a guess that most Berkshire shareholders who call themselves “foodies” have already dined at the Grey Plume in Midtown Crossing. But there’s unexplored territory at the Plume if you have yet to dine at the bar, which has its own separate, less-serious menu. Chef Clayton Chapman serves hot dogs and burgers — my favorite high-end burger in the city, in fact — at the bar. He serves big bowls of popcorn and duck fat doughnuts for $4 each. A ﬂatbread is topped with an ever-changing list of seasonal ingredients, and there’s both a vegetarian and salami sandwich selection that have never disappointed. A daily happy hour runs every day from 5 p.m. to 7 p.m. and includes a $5 wine and beer selection and classic cocktails mixed for $7 each. If you want a high-end experience for a more than reasonable price, this is your ticket. No credentials necessary.

Dante Ristorante

Pappardelle bolognese with pork, beef, red wine and spring herbs at Dante Ristorante.

16901 Wright Plaza • 402-932-3078 I called Dante’s bolognese our favorite pasta in the city, and I called its Margharita pizza one of my three favorite pies. And that doesn’t even take into account the restaurant’s excellent, all-Italian wine list, its incredible list of rotating specials and its vibrant, fun atmosphere. This west Omaha spot is definitely worth the drive if you’re in the mood for robust, authentic Italian that’s not too serious but seriously good. Chef Nick Strawhecker knows his stuff — the man has traveled all over Italy and brought the best of the country to the Midwest. Whatever the house special is the night you visit is sure to be impressive; if you’re not in the mood for wood-fired pizza (the Monterosso, with fingerling potato, rosemary, garlic, crisp prosciutto and mozzarella is a favorite of mine), the list of entrees is ripe for exploration. Try the aforementioned bolognese, or the rich carbonara, both worth the calories and even better paired with a glass of robust red. Contact the writer: 402-444-1069, sarah.bakerhansen@owh.com, twitter.com/SBHOWH

• 23S

• SATURDAY, MAY 3, 2014

TOP OMAHA-AREA TOURIST ATTRACTIONS (By number of visitors) 1. Henry Doorly Zoo & Aquarium, 3701 S. 10th St.

2. Wehrspann Lake at Chalco Hills Recreation Area, 8901 S. 154th St.

3. Omaha Children’s Museum, 500 S. 20th St.

4. Durham Museum, 801 S. 10th St.

5. Lauritzen Gardens and Keneﬁck Park, 100 Bancroft St.

6. Joslyn Art Museum, 2200 Dodge St.

7. DeSoto National Wildlife Refuge, Blair

8. Papio Bay Aquatic Center, Papillion

CHRIS MACHIAN/THE WORLD HERALD

9. Mormon Trail Center at Historic Winter Quarters, 3215 State St.

Source: State Tourism Commission, 2012 attendance ﬁgures

10. Papio Fun Park, Papillion

Dear ‘not rich’: You can do a lot here, spend only a little BY CINDY GONZALEZ AND NANCY GAARDER WORLD-HERALD STAFF WRITERS

For those who missed it, Warren Buffett recently voiced concern about possible hotel price gouging during the shareholders gathering. He said at least half the shareholders have less than $15,000 worth of Berkshire Hathaway shares. So for the shareholders Buffett called “not rich” — or just the plain price-conscious — here are some free or low-cost things to do around Buffett’s hometown: » Take a scenic walk. Here are a few downtown strolling options: the Old Market’s 80-plus shops and 30 pubs and eateries; the downtown Heartland of America Park that features a 300-foot fountain and evening light show; the Bob Kerrey Pedestrian Bridge, which is the longest pedestrian bridge linking two states (with a light show at night); the riverfront where you can also see a monument to labor sculpture at Lewis & Clark Landing. » Rent a B-cycle at an Omaha station (402-882-2221 or info@omahabcycle.com) and ride trails around downtown and across the river into Iowa, to the casinos, museums, to a barbecue and ice cream joint at the start of the Wabash Trace trail. Bike or walk parts of the Wabash in Council Bluffs, a top-rated rails-to-trail project: www.wabashtrace.org.

» View art, architecture and more for free at: Kaneko, 1111 Jones St., open Saturday; Joslyn Art Museum, 2200 Dodge St., open Saturday and Sunday; Joslyn Art Museum’s Kent Bellows mentoring program young artist exhibition, 3303 Leavenworth St., open Saturday and Sunday; Bemis Center for Contemporary Arts, 724 S. 12th St., open Saturday and Sunday. Hot Shops Art Center, which houses artists’ studios, has an open house Saturday at 1301 Nicholas St. » Visit the Inﬁeld at the Zoo, a memorial to Rosenblatt Stadium, which until recently served as the longtime home of the College World Series. » Enjoy a slice of Omaha’s vibrant multicultural life on 24th Street near N Street for Cinco de Mayo festivities and Latino foods this weekend. » Visit Boys Town at 139th Street and West Dodge Road and its Hall of History, visitors center and Father Flanagan House, also home to the world’s largest ball of stamps. » The Mormon Trail Center, 3215 State St., offers state-of-the-art displays of the Mormon trek from Illinois to Utah in 1800s, open Saturday and Sunday. » Free museum and interesting walk area: Western Historic Trails Center, south of Exit 1B, Interstates 80/29 in Council Bluffs. » Love’s Jazz & Arts Center, 2510 N. 24th St., open Saturday.

NETJETS INC. IS A BERKSHIRE HATHAWAY COMPANY. ALL AIRCRAF T OFFERED BY NETJETS® IN THE UNITED STATES FOR FRACTIONAL SALE , LEASE , OR USE UNDER THE MARQUIS JET CARD® AND PRIVATE JET TRAVEL CARD™ PROGRAMS ARE MANAGED AND OPERATED BY NETJETS AVIATION, INC., A WHOLLY OWNED SUBSIDIARY OF NETJETS INC. NETJETS, EXECUTIVEJET AND THE MARQUIS JET CARD ARE REGISTERED SERVICE MARKS. ©2014 NETJETS IP, LLC. ALL RIGHTS RESERVED.

24S

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DAYS TO THE PRIMARY

SUMMER MOVIE PREVIEW

Spider-Man has arrived but there’s plenty more still to come. Living

Nebraska’s primary election is May 13.

LAST DAY TO REQUEST EARLY BALLOT

They love his head for business

Tuesday at 4 p.m. is the deadline to ask your county commissioner’s ofﬁce to mail you an early voting ballot. In Douglas County, call 402-444-8683 or visit votedouglascounty.com. In Sarpy County, call 402-593-2167 or visit sarpy.com/election.

The Berkshire Hathaway faithful ﬂock to Omaha, once again, and embrace Warren Buffett’s way of doing things. Full coverage of the shareholders meeting in Money

GOVERNOR ENDORSEMENT

The World-Herald makes its recommendation in the GOP race for governor. Midlands, Page 6B

OTHER COVERAGE IN MIDLANDS A recap of the governor debate and previews of legislative races.

U.S.. SENATE The candidates’ stands on various issues are spelled out. Page 2A

Calling for change, differing on how to do it But the Senate hopefuls agree on exempting older Americans from revisions to entitlement programs BY JOSEPH MORTON WORLD-HERALD STAFF WRITER

The four Republican candidates vying to be Nebraska’s next U.S. senator agree on one thing: Medicare and Social Security are going bust on their current path. The question is what to do about it. In a sign of the issue’s political sensitivity, each candidate is quick to stress that he would make no changes to the programs for those already receiving benefits or approaching retirement age. And they all reject the idea of bringing in more revenue by raising the cap on payroll taxes. But they differ on some specific proposals being discussed in Washington. For example, one way of saving money is “means testing,” or limiting the benefits given to the more affluent. Midland University President Ben Sasse said he could support some form of means testing as part of a broader package. “When the Congress has overpromised, we should make sure that the poorest and sickest among us are taken care of first,” Sasse said.

MAY 4, 2014 • EARLY EDITION

LOCALLY OWNED SINCE 1885

NIKKO JENKINS

Master manipulator and his long night’s journey to the truth BY TODD COOPER WORLD-HERALD STAFF WRITER

Nikko Jenkins couldn’t wait. From the moment he entered a ﬁfthﬂoor interrogation room at Central Police Headquarters, Jenkins’ mouth was racing. Coming up for air after one breathless rant, he told a detective: “This is

going to be a long night. When we’re here talking, it just comes out like a computer.” Over the next eight hours, Jenkins would ramble on about things relevant and irrelevant — spinning tales that were both tender and horriﬁc, absurd and disturbed. He would brag and boast, plop on the ﬂoor and puff out his chest and, eventually, whimper and

whisper a confession to the killings of four Omahans in 10 days. For the ﬁrst ﬁve hours, Jenkins didn’t blame the killings on his go-to demon, a serpent god he has been mentioning since his stay in the Tecumseh State Prison. Instead, he blamed the killings on his cousins. It was one of many examples of why

one of the state’s veteran prosecutors calls Jenkins the “biggest manipulator I’ve ever seen.” But on this night back in early September, the manipulator would become the manipulated. In time, Jenkins succumbed to a routine as old as a badge and a night stick: good cop, bad cop. The good cop: John Pankonin, a 19Story continues on Page 6

SPECIAL SECTION INSIDE TODAY

The fall and rise of a Rembrandt

See Senate: Page 2

PROJECT FOR NASA

Nebraskans work on robot to do surgery in outer space BY KATE HOWARD PERRY WORLD-HERALD STAFF WRITER

Imagine a day when an explorer on Mars suffers a medical emergency, and the nearest surgeon is 35 million miles away. Returning to Earth for treatment would take months, so preparations are being made to fix medical problems in space — and University of Nebraska researchers are working on the first step to a possible solution. Three University of Nebraska-Lincoln students and a University of Nebraska Medical Center fellow went up on a roller coaster-like test flight with NASA last month. The flight gave the team up to 30 seconds at a time in low and zero gravity to see how miniature robots, designed to perform minimally invasive surgery, responded to the conditions. The experiment is part of a NASA grant to develop medical technology in line with the space See Robots: Page 2

2014 FORD #75739 #757393 Offers f endd 5/31/1 5/31/14.

RYA N S O D E R L I N / T H E W O R L D - H E R A L D

Rembrandt’s “Portrait of Dirck van Os” — newly reaffirmed as the work of the Dutch master — is restored and ready to go on display at the Joslyn Art Museum. Our special section inside today’s paper details the saga of the portrait’s triumphant return to public view after it had been recategorized as merely from the “School of Rembrandt” and sent to storage. Kjell Peterson, left, preparator, and Kevin Salzman, installation and design manager, hang the painting in its new home in a gallery off the fountain court. It will be available for viewing starting Tuesday.

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OMAHA WORLD-HERALD • SUNDAY, MAY 4, 2014 • SECTION D

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

Defending the Berkshire Way

KENT SIEVERS/THE WORLD-HERALD

Warren Buffett and Bill Gates pose for a selﬁe with a visitor Saturday at the CenturyLink Center. The annual Berkshire Hathaway shareholders meeting drew about 38,000 people.

Over five hours of questions and talk with shareholders, Buffett and Munger reinforce their way of doing things BY STEVE JORDON

• WORLD-HERALD STAFF WRITER

Buffy Tillitt, left, and Karen Stephenson take in their ﬁrst shareholders meeting. The two are members of the Beardstown (Illinois) Ladies, a group of older women who formed an investment club in 1983.

Warren Buffett, in a ﬁve-hours shareholders meeting Saturday, reinforced his way of doing things, from his decision not to vote against an executive pay plan at Coca-Cola and his philosophy of letting his managers run their businesses to Berkshire Hathaway’s record as a conglomerate. A case in point: Since Buffett took over as chairman and CEO of Berkshire 49 years ago, the company has never paid a dividend, instead keeping proﬁts in the company to invest in stocks or to buy other businesses. Saturday, Buffett said 97 percent of the votes by the million or so Berkshire shareholders rejected a resolution calling for dividends. Results of the vote came during the company’s annual

M AT T M I L L E R THE WORLDHERALD

meeting at the CenturyLink Center in Omaha, attended by an unofﬁcial count of about 38,000. Buffett said that Berkshire didn’t need to borrow money, even at today’s low interest rates; that global warming didn’t change his business plans because its effects are unknown; that he remains optimistic about the U.S. economy; and breaking Berkshire into four smaller companies, as one questioner suggested, would be “a terrible mistake.” In response to a question about Berkshire failing to beat the returns of a stock market index over the past ﬁve years, Vice Chairman Charlie Munger pointed out that Berkshire’s gains are reduced by income taxes, while taxes See Meeting: Page 8

SEVEN PAGES OF COVERAGE INSIDE A shopping extravaganza

Bargain-hunting shareholders swarm more than 40 vendors. Page 4D

The day in photos

Get a view of Berkshire’s big day through the eyes of photographers. Pages 5D, 7D

Working on the bucket list

Visitors, many of them ﬁrst-timers, arrive from across the globe. Page 9D

On Omaha.com

Find full coverage, including a photo slide show and a replay of Saturday’s live chat.

@u_nebraska | #FuelingKnowledge

KNOWLEDGE PAYS DIVIDENDS.

• SUNDAY, MAY 4, 2014

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

The Berkshire Q&A Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger faced questions from all over the Berkshire Hathaway spectrum on Saturday, assessing big-picture topics plus queries about individual subsidiaries and their own relationship.

RYA N S O D E R L I N / T H E W O R L D - H E R A L D

Berkshire Hathaway Chairman and CEO Warren Buffett is the center of attention as he enjoys an ice cream treat at the Dairy Queen booth at the CenturyLink Center on Saturday.

(EXCHANGES ARE PARAPHRASED.)

On Berkshire’s performance Question: You’ve stated that if management wasn’t capable of delivering a better return than the index, then management wasn’t doing the job. Are you changing the yardstick? Buffett: It’s obvious that if you have five strong years in a row, we will not beat the S&P. Despite things mentioned about President Obama, the stock market seems to have done very well. We will underperform in up years. Munger: We should remember that Warren’s standard talks about the net worth of Berkshire increasing after corporate taxes. The indexes aren’t paying any taxes. Warren has set a ridiculously tough standard. If this is failure, I want more of it. Question: I think of you as running a rational company. But when looking at the comparison of Berkshire value per share compared to S&P 500, what is the rationale of comparing an index against an operating company’s book value? Why do you annually make this irrational comparison? Munger: The answer is you are totally right, and the answer is Warren wants to make things difficult for himself. It makes it hard for Warren to look good. It’s insane, you’re right. Question: Berkshire has generated outsized returns, but size of operations will limit those in the future. How much confidence that future allocators will be able to generate outsized returns? Buffett: There’s no question size is an anchor to performance. ... If we keep putting billions in and those billions are worth more than what we’re putting in, we’ll keep doing it.” Question: What actions can Berkshire take to narrow the discount between stock prices and intrinsic value? Would you ever consider an initial public offering of Berkshire’s independent operating units. Buffett: No. Charlie and I really devote considerable effort to explaining where there’s really a significant discrepancy between book value and the true value or intrinsic value of the business. We’ve said we are willing and eager to buy stock at 120 percent of book value. We only believe in repurchasing shares when we can do so at a significant discount. If you buy a dollar bill for 90 cents, you are doing your shareholders a favor. If you buy it for $1.10 you are doing them no favor at all. Munger: The stock will eventually go over intrinsic value whether we like it or not.

On Obama and the economy Question: The president’s approval rating is at 40 percent. Steve Wynn said Obama is the biggest wet blanket to the economy. You have Obama’s ear: The train’s going in the wrong direction. Can you conduct Obama to change the train’s direction? Buffett: I don’t agree with a number of things you’ve said there. American business is doing extraordinarily well. Many of the American people are not.

Anybody that thinks American business is not doing well should look at corporate proﬁts. American business earnings on net tangible assets, the way to measure proﬁtability overall, it’s basically the envy of the world. Our tax rates now for corporations are far lower (than in the past). Munger: Silence. (Laughter). I’m going to avoid this one. Buffett: And people complain about me abstaining.

On BNSF service problems Question: BNSF is doing well, but Union Pacific is doing better and operating more smoothly for customers. Can you shed light on the divergent results? Was BNSF too aggressive in signing up new business? Buffett: There’s no question we’ve had a lot of service problems particularly on our northern route. We have been spending more money than U.P., and they spend a lot. The boom in the Bakken shale region — have a lot of trains running there that weren’t running five years ago. And cold weather was an issue. Matt Rose, BNSF’s executive chairman: It’s the geographic nature of our franchise. The oil came a lot faster than we expected. I have never seen winter weather like that. We had 83 inches of snow in Chicago. Many days below zero in Minnesota. When we get to zero to 10 below, things just don’t work. Now the railroad is coming back and we’re making significant investments to be able to handle all the business out there. Buffett: We will have 52 unit trains of fertilizer headed to North Dakota in time for planting season. We take it seriously. ... We’re dealing with 22,000 miles of track, and Chicago is a weak link, with bottlenecks and weather.

On H.J. Heinz impact Question: Berkshire’s 50 percent ownership of H.J. Heinz is included in results, which could be meaningful to Berkshire’s earnings. What is Heinz’s earning power? Buffett: “Heinz will be filing its own 10Qs. The first quarter will be about due now. You will get to see Heinz’s figures. Heinz was actually a very reasonably run food company with 15 percent pretax margins for many years. I would invite you to look quarter by quarter. I think the margins for Heinz will be significantly improved from those historical figures. They’ve just restructured the business model and I think the brands, which are all important, are as strong as ever.

On Berkshire’s management style Question: Berkshire has a track record of buying successful companies and leaving them alone. Could Berkshire use 3G’s methods? Would you hire a 3G manager to run a Berkshire subsidiary? (Berkshire partnered with 3G Capital to buy H.J. Heinz; Berkshire provided the capital and 3G took over operations, naming a new CEO, closing plants and taking other cost-trimming steps.)

Buffett: I don’t think the two blend very well. I think 3G does a magnificent job of running a business. There’s no question it’s a different style from Berkshire, and I don’t think it would pay to try and blend the two. I think we will see more opportunities to partner with 3G, and I think we’re very likely to jump at those opportunities. Munger: I don’t think we’ve ever had a policy that loved overstaffing. Buffett: We do not wish to enforce on every subsidiary as to whether they have too many people or not. Overwhelmingly, they’re managed on a lean basis. We encourage by example, but we do not encourage by edict.” Question: Why don’t Bershire’s proxies list compensation for more of its managers/executives? Buffett: Berkshire is following SEC rules on proxy requirements. (He said he will write in next year’s annual report about this issue.) Listing salaries could have a negative effect on negotiating salaries, and shareholders would be hurt by publishing salaries. There’s no CEO that looks at proxy statements and comes away thinking, “I should get paid less.” Munger: Companies are better off without adding to the culture of envy in America. Question: What is Forest River (RV manufacturing firm) doing differently from Thor (a competitor)? Buffett: The Forest River owner bought it out of bankruptcy, rebuilt it, then approached (Buffett) about selling. We’ve lived happily ever after. It’s now a $4 billion business. I’ve never been to Forest River. It’s based in Indiana. I hope it’s there. I’ve had only three or four phone calls with the owner. Question: What are your weak points? Buffett: “We are very disciplined in some ways, and by ordinary business standards we’re sloppy in other ways. A clear weak point of mine would be, I’m slow to make personnel changes. I like the managers we have. Charlie and I had a wonderful friend, couldn’t have been a better guy. ... How long would you say we went beyond where somebody else would have acted in that case? We’ve waited too long on managers. Munger: Sure, you and I participated in taking one manager directly from the office into an Alzheimer’s home. Buffett: We think giving our managers the degree of freedom we do works well for us. There may be downsides to their style, but what we won’t be able to measure is how much on the positive side we have achieved with dozens and dozens of people because we gave them that same sort of leeway. Berkshire has no human resources or general counsel office, almost unthinkable at other companies. Munger: By the standards of the rest of the world, we over-trust. But it — a culture of deserved trust — is working.

On Berkshire’s size and diversity Question: Will successors be able to manage the diverse businesses so well? Buffett: The model has worked well

for America if you consider the Dow Jones Industrials as one company. Owning a group of good businesses is not a terrible business plan. I think our business plan makes nothing but sense, to own a great group of businesses, outstanding managers, conservatively capitalized, with one enormous advantage most people don’t understand: Capitalism is about the allocation of capita. We have a system at BRK where we can allocate capital without tax consequences. There’s nobody else really better situated to do that than Berkshire. But it has to be applied with businesslike principles rather than with stock promotion principles.” Munger: There are differences between Berkshire and other conglomerates. Some are hell-bent to buy something or other quite regularly and we don’t feel any compulsion to buy. I don’t think we’re a standard conglomerate. Question: Every year I see some of the old shareholders and they are waiting to get a dividend. I do not feel it’s entirely fair for them to sell their shares. ... Is there a practical way for you to break up the company into four large groups, and unlock some of the values and still allow you to allocate the capital freely? Buffett: We would lose signiﬁcant value if we were to break it into four companies. We would lose advantages in taxes, cash ﬂow. Berkshire is worth more as presently constituted than in any other form that I can conceive of. ... It would be a terrible mistake. He notes a lopsided shareholder vote against dividends. There is not a way to deliver a dividend to a few shareholders and not to others.

On acquisitions Question: Do you plan to keep buying businesses? Buffett: What we really want to do at our present size and scope and the objective we’ve got for our shareholders, we want to buy good businesses with good management and try to build them over time. As we start 2014, we’ve got a really good group of businesses. What we’re trying to do is add on to them and make sure they don’t issue any shares in the process. I feel the game is still a very viable one. It’s still got some juice left in it. Munger: The private businesses have gotten to be a bigger portion of the company, compared to stocks. I would guess that will continue, wouldn’t you, Warren? Buffett: Sure. Being right about businesses, versus stocks, doesn’t show up as quickly. It’s a different sort of build-up of value. One is easier to see than the other. But the other is more enduring and does not require going from ﬂower to ﬂower. We’ve moved into Phase Two. Munger: We are forced by our own past success into these bigger positions. I think we’ve adapted pretty well to changes in our circumstances. Since change is inevitable, how well you adapt to it is terribly important.” Question: Berkshire is known for

buying full companies, but earlier in your careers that was not known. Acquisitions are disruptive to employees, so what have you done to gain the trust of founders or owners of the companies you have bought out in the past? Buffett: We’ve kept our word to them. We have to be very careful what we promise. Can’t promise no layoffs, but can promise not to sell the business unless serious problems. We keep some businesses that you would not get a passing grade in business school for keeping them, but we have had to get rid of only a few businesses. We promise the managers that they are going to continue to run their businesses. A private equity firm is going to be totally unimpressed with what’s in the back of our annual report. But, for a for a family business, some of those people care about where their business goes. We do have a unique asset in Berkshire. As long as we behave properly we will maintain that. Question: How large of an acquisition is BRK comfortable targeting? Can the big holdings be a source of funds? Buffett: Our goal is to buy really good businesses and big businesses and businesses where we like the managers and businesses we think we can grow over time. I want to add earning power to Berkshire. If the opportunities were large enough and we needed to raise some money, we can dip into a huge reservoir of securities and still have a huge investments thereafter. It hasn’t come to that. Berkshire has $40 billion plus of capital, and is willing to take that to $20 billion. Charlie and I concentrate on buying companies and let the portfolio managers concentrate on buying stock. Munger: Acquisitions have been and will be irregular. Buffett: People think we get turned on by stock buying. What really turns us on is finding a business we want to buy that fits well with Berkshire and that will be earning money for Berkshire years from now.

On Nebraska Furniture Mart Question: Can you comment on how you were able to purchase the Nebraska Furniture Mart for such a good price? Buffett: We bought 80 percent of the company, and the $60 million purchase price was 100 percent value. The $60 million would have been more than book at the time. Not way more. Sales were $100 million. It was not a bargain purchase. It was a great business. It was a wonderful opportunity to join as ﬁne a family as I’ve ever met. I never asked (owner the late Rose Blumkin) for an audit. Now if you want to talk about bargain purchases, we should talk about going out to the Nebraska Furniture Mart. Sales are up 7 percent this week so far over last year’s record sales, $7.8 million in sales Tuesday alone. I visited the Dallas location of the new store under construction last week. It’s a plot of land like you wouldn’t believe. See Q&A: Page 6

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What meeting? It’s a day to shop

Dozens of Berkshire companies show off their products to lots of eager customers BY COLE EPLEY WORLD-HERALD STAFF WRITER

The busiest shopping center in the Midwest on Saturday morning wasn’t a shopping center at all. The exhibit hall at the CenturyLink Center Omaha bristled with thousands of Berkshire Hathaway investors beginning at 7 a.m., when organizers opened the convention center for the annual shareholders meeting. Inside, hundreds of associates representing more than 40 Berkshire companies awaited the throng of stockholders, including Patty Jansen of Omaha, who made one of her ﬁrst stops at the H.J. Heinz Co. station, which was loaded with 20,000 limited-edition bottles of ketchup. Jansen picked up two each of the bottles featuring caricatures of Berkshire CEO and Chairman Warren Buffett and Vice Chairman Charlie Munger. “I’m keeping one pair and giving the other to friends that couldn’t be here,” Jansen said. A bottle with Buffett’s likeness was going for $2, and Munger’s was selling for $1.50. “I’m really offended that Warren is getting more than Charlie,” Jansen joked. As Buffett made his traditional early-morning round through the exhibit hall, the Heinz booth was one of his ﬁrst stops. In a gentlemanly gesture, he decreed Munger’s bottle should sell for $1, since Buffett’s at the time was selling faster. Ever the shrewd businessman, Buffett quipped a caveat: “If for any reason he starts coming on, notify me!” From $1 Dilly Bars to thousand-dollar mattresses, the variety and array of products for sale was staggering. BNSF Railway Co. drew a younger crowd with a pair of locomotive simulators, and the aroma of leather boots and other goods enticed shoppers to the Justin Brands and H.H. Brown stations. Fruit of the Loom commanded long lines, offering $6 com-

memorative T-shirts as well as essentials like socks. So did Borsheims, which offered more timeless products, such as an 18-carat white gold necklace with a half-carat diamond pendant with a distinctive cut. Limited to just 25 necklaces at a sale price of $1,872.50, the diamond also featured an etching of Buffett’s signature. Tom Sanders, an engineer with Omaha-based HDR, bought the last two just after 9 a.m. “Buying the last ones wasn’t my intent,” Sanders said, but his wife asked him to try to get one or two to donate to a silent auction for Lincoln-based nonproﬁt Creating Captains, a youth leadership education foundation led by former Husker football player Matt Davison. But some shareholders were more cautious when it came to forking over big bucks. Bill Elsden and his wife, Betty, made the pilgrimage from Webster City, Iowa, to Omaha for the 10th time. They were in the middle of a sales pitch at the Nebraska Furniture Mart booth for another signature Buffett item — a pillow-top mattress manufactured by Omaha Bedding Co. called “the Warren.” Bill Elsden said he and his wife now spend their winters in Florida, and he wasn’t sure the mattress was ﬁrm enough. But a king-size version of the Warren usually retails for more than $2,600, he was told, and the price at the Furniture Mart through Monday is just under $1,000. The retired farmer didn’t bite. “Our guests keep complaining about where they sleep when they stay with us,” Elsden said. “But I just say they’re lucky they have a place to sleep.” Across the room, a steady stream of shoppers left Fruit of the Loom with bags full of T-shirts, socks and limited-edition “Berky Boxer” shorts featuring caricatures of Buffett and Munger. The $6 shorts were so popular last year that Fruit of the Loom doubled its inventory

RYA N S O D E R L I N / T H E W O R L D - H E R A L D

for this year’s event. Gerald Nurrenbern, a semi-retired construction worker from Evansville, Indiana, hadn’t yet made his way to Fruit of the Loom by 8:15 a.m., when he was on his way out of the exhibit hall to the parking lot. Nurrenbern was beginning a stockpile in his car of wares from Borsheims, Oriental Trading, the Furniture Mart and Pampered Chef. He planned to return to Evansville with gifts for his daughter and grandkids, but not before loading up with at least another armload of deeply discounted products. “This is the first (trip) of many,” he said. For many, however, the weekend was about much more than scoring great deals. Floris Muijser, a partner in an Amsterdam-based private equity firm, made his first-ever trip to Omaha with two colleagues. He was particularly interested in the Clayton Homes exhibit and picked up some souvenirs from Heinz and Fruit of the Loom. “It’s a bucket-list thing we’re doing here,” Muijser said. “It’s really impressive.”

KENT SIEVERS/THE WORLD-HERALD

Armand Romero, above, of Justin Brands grabs a boot for a customer in the company’s booth in the packed exhibit hall at the CenturyLink Center on Saturday. At top, visitors from Denver test “the Warren” mattress at the Nebraska Furniture Mart booth. From left are Derek White, Will Hurd and Hank Elder.

Contact the writer: 402-444-1534, cole.epley@owh.com

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Justin Brands CEO Randy Watson tries to out-pitch members of the Omaha Storm Chasers AAA baseball team under the eyes of players and a team mascot. Baseballs were thrown between the Justin Brands and H.H. Brown stations.

Eighteenmonth-old Ryan Hartman takes a test drive of his souvenir M&M’s car Saturday on dad Nate. The Hartmans are from Lincoln. The Mars/ Wm. Wrigley Jr. Co. was one of dozens offering items for shareholders to browse and buy.

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THEY’RE GAME FOR ANYTHING

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A competitor’s newspaper throw makes an impression on Warren Buffett during Saturday’s Omaha World-Herald newspaper toss. For the third year, Buffett — a former newspaper carrier known for his paper-tossing prowess — challenged willing participants to toss a newspaper 35 feet onto the Clayton Homes porch in the exhibit hall. Challengers whose paper landed closer to the doorstep than Buffett’s received a Dilly Bar.

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Ben Stevenson of Chicago and Jenna Nerbig of Minneapolis get up close with Warren Buffett and Charlie Munger cutouts at the H.J. Heinz Co. station. The two also may have been comparing eyewear.

R E B E C C A S . G R AT Z / T H E W O R L D - H E R A L D

Nathan Fend, center front, of Nashville, Tennessee, and Rich Perry, right, of West Palm Beach, Florida, wait in a crowd of shareholders to enter the CenturyLink Center for Saturday’s annual meeting. Attendance was estimated at 38,000.

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OMAHA WORLD-HERALD

LABOR NEGOTIATIONS

SHAREHOLDER EVENTS IN OMAHA

Union brings fight with NetJets to Omaha

TODAY 8 a.m. to 11 a.m. Berkshire Hathaway “Invest in Yourself” 5K presented by Brooks. The course starts on 10th Street across from the CenturyLink Center Omaha and ends on Riverfront Drive. In-person registration accepted.

Pilots say company’s cuts hurting service; Berkshire unit decries ‘old tactics’ BY STEVE JORDON WORLD-HERALD STAFF WRITER

NetJets’ customer service is suffering from cost-cutting by the Berkshire Hathaway Inc.-owned private aircraft company, the president of the union representing its pilots said. Not true, a company spokesman said, attributing the comment to “old tactics” typical of labor negotiations. Negotiations by the company and its unions are usually confined to NetJets’ headquarters city of Columbus, Ohio. But in Omaha on Saturday, members of the pilots union, dressed in flight uniforms, handed out red tote bags containing pro-union fliers to Berkshire shareholders in town for their annual meeting. During the meeting, Berkshire Chairman and CEO Warren Buffett answered a question about Net-

Jets’ growth but didn’t mention the negotiations, although in response to an unrelated question he said labor problems are a factor that can move Berkshire toward selling a business. He said NetJets is doing well but is in an industry with low growth potential. Contracts with pilots, flight attendants, dispatchers and maintenance employees remain in effect during negotiations to allow transportation to continue under the federal Railway Labor Act. John Malmborg, president of the NetJets Association of Shared Airline Pilots, said company negotiators have sought wage and benefit concessions from the start, while NetJets revenue expands and the company shares profits with nonunion employees. Cutbacks that date to the 2007-09 recession, including about 500 pilot

furloughs, are causing delays and scheduling problems and hurting pilots’ ability to maintain their role as the front line for the company’s customer service, Malmborg said. “We’re concerned with the pace of operations, the strain on operations and cost-cutting that has taken place to where we can’t take advantage of the opportunities that are out there,” he said. NetJets has recalled some furloughed pilots but not enough to keep up with attrition, so the number of pilots on duty is down, he said. NetJets spokesman Tom Hoyt said NetJets’ customer service is “the best in the industry. It’s as good as it’s ever been.” “It’s our view that it’s the union leadership that’s using the standard union playbook, old tactics,” he said. “We’re continuing to bargain in good

faith and hoping to come to a resolution.” The company is recalling pilots who were furloughed during the recession and is advertising for flight attendants, he said. “We’re evaluating our needs and, as the market changes, we could add more as needed.” He said the negotiations have not interfered with operations and service but declined to comment on specific issues, saying the discussion should remain at the bargaining table. Berkshire reported that in 2013, NetJets’ profits were up about 7 percent and revenue increased by $288 million, or 7.5 percent, with revenue of about $4 billion for the year. The Omaha World-Herald Co. is owned by Berkshire Hathaway Inc. Contact the writer: 402-444-1080, steve.jordon@owh.com, twitter.com/buffettOWH

Q&A: Two have a lasting partnership Once open, it will double the volume of any other furniture store in the world.

Munger: Warren is “peculiar” on how he distributes money. I think he’s entitled to do what he damn pleases.

On the Vanguard 500

On the Munger partnership

Continued from Page 2

Question: About Buffett’s instructions to put 90 percent of his wife’s cash in an S&P 500 index fund, why not into Berkshire shares? This might imply that you expect the index fund to outperform Berkshire in the future. Buffett: He joked: That letter didn’t come from Vanguard by any chance? (Then he reminded people that his Berkshire shares will go to foundations in the 12 years after his estate is closed.) My views on Berkshire at least until 12 years after my death are as bullish as ever. But in my wife’s situation, the goal is not maximizing capital. It’s just a question of total, 100 percent peace of mind on something that can’t get a bad result.

Question: Any discussion on replacing Munger? Will the company continue to be led by a dynamic duo? Buffett: Charlie, he’s my canary in the coal mine. Charlie is now 90. I ﬁnd it very encouraging how he’s handling middle age. I do think it’s very likely that whoever replaces me as CEO probably has or will develop somebody that they work with very closely. It’s a great way to operate. Berkshire is better off because the two of us have worked together. I would be very surprised that if a few years after my successor takes over, there isn’t some relationship or partnership that enhances the CEO’s not only achievements, but the fun they have. But so far, nobody’s

brought up in the meetings any successor to Charlie. I have a hard time thinking of anybody that could be a successor to Charlie.” Munger: “Most 90-year-old men are gone soon enough.” Question: Do you and Charlie ever ﬁght or argue over how you manage your partnership of two.” Buffett: We’ve disagreed on a lot of things, and it’s never led, and never will, lead to an argument. We argue with other people but it hasn’t occurred with us. When he called Charlie about the Coke vote, We felt alike. Munger: That’s one of the problems: when one of us misses it, the other is likely to, too. Buffett: “I’m probably a little more inclined to action, wouldn’t you say, Charlie? Munger: Well, you once called me the abominable no-man. — Barbara Soderlin

unmc.edu

9 a.m. to 4 p.m. Borsheims shopping day for shareholders. Brunch begins at 9 a.m. 1 p.m. to 10 p.m. Private shareholder event at Gorat’s Steakhouse, 4917 Center St. Reservations required. 4 p.m. to 10 p.m. Private shareholder event at Piccolo’s Steakhouse, 2202 S. 20th St. Reservations required. SPECIAL SHAREHOLDER PRICING Through Monday: Nebraska Furniture Mart Through May 10: Borsheims Credentialed shareholders also can receive up to 20 percent off at the new Borsheims Boutique at Nebraska Crossing Outlets in Gretna.

BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

SUNDAY, MAY 4, 2014

STANDING OUT IN A BIG CROWD

Matt Rose, executive chairman of BNSF Railway Co., and wife Lisa talk with Warren Buffett’s daughter, Susie Buffett, before the meeting. M AT T M I L L E R / T H E WORLD-HERALD

Kathy Ireland lines up on the target at the Omaha WorldHerald newspaper toss in front of the Clayton Homes display. Ireland, a widely known former model, has a furniture line that’s featured at Nebraska Furniture Mart. KENT SIEVERS THE WORLD-HERALD

KENT SIEVERS/THE WORLD-HERALD

Microsoft founder, and Warren Buffett pal, Bill Gates is the center of attention as he visits the exhibit hall.

KENT SIEVERS/THE WORLD-HERALD

Howard W. Buffett, grandson of Warren Buffett, takes in the crowd at the exhibit hall Saturday.

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A wall of cameras follows Warren Buffett in the exhibit hall. The Berkshire Hathaway CEO and Vice Chairman Charlie Munger spent ﬁve hours answering questions during Saturday’s meeting.

KENT SIEVERS/THE WORLD-HERALD

Louise Bazemore, left, and granddaughter Sadie Hall, both of Omaha, take a selﬁe while resting on a bench in the exhibit hall.

Meeting: Buffett answers questions about Coca-Cola, tracking of company CEOs

THE

Continued from Page 1

don’t count against the index. “Warren likes to make things difficult for himself,” Munger said. Buffett made his most detailed comments about the Coca-Cola pay issue to date, saying he didn’t want to “go to war” against Coke’s management over the issue, especially as an ally of financial manager David Winters of Wintergreen Advisors. Winters had called on Coke shareholders to defeat the pay plan, saying it was excessive and would be costly to shareholders. Instead, Buffett abstained from voting Berkshire’s 9 percent stake in Coke. Buffett then said publicly that he opposed the pay plan and met privately with Coke’s top executives. The Wall Street Journal said Thursday that Coke’s directors likely would revise the plan in part because of Buffett’s pressure. On Saturday, Fortune magazine staffer Carol Loomis, one of six official questioners at the meeting, said the abstention was “very strange, un-Buffett-like behavior.” Buffett said Winters’ calculations exaggerated the pay plan’s cost to shareholders, and Buffett offered his own calculations that indicated a smaller cost to shareholders. He said being on a board of directors is a business role but also has social aspects, and agreeing with the board’s compensation committee is standard for directors. “That’s the way it’s done,” he said. Corporations typically select people for corporate boards who understand those conventions, Buffett said, and pay “independent” directors hundreds of thousands of dollars. “They do not look for Dobermans,” Buffett said. “They look for cocker spaniels and then they make sure the tails are wagging.” Journalist Andrew Ross Sorkin noted that Buffett’s son Howard is a director of Coca-Cola and had voted in favor of the pay plan. Could Howard be trusted to act correctly if he becomes non-executive chairman of Berkshire some day as planned? Sorkin asked. Buffett said his son understands the way he thinks and

HOW WARREN BUFFE

E & OMAHA

ND HIS HOMETOWN SHAPED EACH OTHER

the worldwide came his way and from the generosity of his early investors. It turned out to

M AT T M I L L E R / T H E W O R L D - H E R A L D

John Strayer of Woodridge, Illinois, and others get some reading in while they wait for the meeting to start Saturday at the CenturyLink Center. would act as “an extra safety valve” to preserve Berkshire’s business culture. “Howie’s the perfect guy to carry that out,” Buffett said. Doug Mohn, a retired IT professional and investor from Katy, Texas, said he expected that answer. “You can’t ask a public person in a large crowd of people if you think their son is up to the task and get any different answer.” Mohn, who also holds Coca-Cola shares with his mother, said he would have liked Buffett to take a stronger stand against its executive pay proposal. “When I vote no at Coke, I know it doesn’t mean anything. I just like to think that a 9 percent owner can sometimes ask for what they want and not have to be so oblique, like he’s doing this time.” But Buffett and Munger said arguing loudly and publicly with corporate managers doesn’t accomplish as much as working with them. You have to pick your spots and go about it correctly, they said. “If we all shout, then you would not be able to hear each other,” Munger said. He and Buffett discussed at length their practice of letting the heads of Berkshire-owned companies operate independently with as little oversight as possible. Buffett said Berkshire’s operating system is different from most corporations because it gives company managers so much leeway, which some corporate managers would consider

THE

& OMAHA O

“sloppy.” Berkshire might occasionally save some money or avoid a problem if it kept careful track of everything its company CEOs do, he said, but that would create a negative management tone that would damage the company more. Buffett said he is slow to replace managers, which might leave a few on the job beyond the proper time, but letting managers be in charge has more benefits. One questioner asked why Berkshire remains a conglomerate, with a list of widely different businesses, when years ago the conglomerate model used by other companies failed. Buffett said the older conglomerates often were almost a con game, issuing stock to buy up companies until their values collapsed. Berkshire, in contract, rarely issues stock and instead buys companies from its own revenue and allows them to operate profitably within the holding company, he said. That growth in earning power can continue for a long time, he said, even though the size of the business has become an “anchor” to its rate of profit.

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BERKSHIRE HATHAWAY SHAREHOLDERS MEETING

OMAHA WORLD-HERALD

SUNDAY, MAY 4, 2014

JAMES R. BURNETT/THE WORLD-HERALD

Omaha’s Eppley Airﬁeld plays host to a large number of corporate and personal jets during Berkshire Hathaway weekend.

‘We’re here for the experience’

Shareholders come from all over, many to cross an item off of their bucket list BY CINDY GONZALEZ WORLD-HERALD STAFF WRITER

They came from places like China, Canada, Sweden, New York, Nashville and Sioux Falls, South Dakota — and that was just in one small bunch standing first in line before 4 a.m. Others in the throng of 38,000 that converged downtown for the 2014 Berkshire Hathaway annual meeting included a 13-year-old Toronto kid seeking get-rich tips; a retired Federal Express worker whose held shares since 1971; and an investor who once paired up with another to pay $650,100 for a charity lunch with the Oracle of Omaha. Though the common lure was cult-like attraction to the fourth-richest man in the world, many were first-time meeting-goers concerned about fulfilling a wish to see Warren Buffett, 83, and Charlie Munger, 90, before the feisty financial duo is no longer at the helm. “It’s one of those bucket-list things,” said Hal Westbrook, who flew in from Oregon with wife Vicki and friends Kathy and Dan Brattain. The Brattains said they’ve listened to their friends’ Omaha stories for years and finally jumped on a private jet to come. Said Seth Haskell, a tax lawyer from Minneapolis: “Warren and Charlie are getting kind of old. I don’t know how long they’re going to be doing this.” David Isserman of St. Louis also is a longtime shareholder attending his first annual meeting with his fiancee and father. “I can read filings and reports, and I do,” said Isserman, who owns a cosmetics company. “But we’re here for the experience.” Many shareholders, like Debbie Dugdale, who said she lives just a few houses from Buffett, were there to shop. In minutes, Dugdale had her arms filled with discounted underwear and a full-length dress from the Fruit of the Loom booth. Still others, like Maulik Nagri, a native of India now living in Boston, were watching their pennies. Nagri said he was sharing a hotel with three other guys. He laughed and said he spent more last year in See’s candy souvenirs than his stocks were worth. “This year, I’m flying coach. I booked three months in advance; we’re sharing a car.” Maulik Nagri, a corporate Nagri finance manager, is among the “at least half” of Berkshire shareholders who Buffett said have less than $15,000 worth of Berkshire stock, yet want to participate in the event. Buffett made the remark in light of what he said amounted to price gouging by area hotels. “They are not rich people,” Buffett said of many of his shareholders. “If they’re spending airfare and everything else, even $1,000 on the meeting, it’s real money to them.” In an unscientific sampling of about 20 shareholders or shareholder couples, about three-fourths said in interviews that their Berkshire Hathaway stock was worth more than $15,000 worth of shares. Ludvig Rosenstam of Sweden, 25, said he’s a lifelong fan of Buffett’s and his debut at the annual meeting was worth the expense. “I never thought I’d be here,” he said. “And overall the prices are cheaper than in Europe, so ...” Other standout moments Saturday:

FIRST UP His 2:30 a.m. arrival has become a tradition. Jeffrey Bates, a ﬁnancial adviser from Nashville, was ﬁrst to line up Saturday at the CenturyLink Center’s west entrance. Bates, attending his 14th annual meeting, hosts a group of clients each year at the Berkshire event. He likes them to hear Warren Buffett’s Jeffrey philosophy, which Bates Bates adheres to. And he wanted the 23 clients to have premier seats in the auditorium, which prompts him to rise way before the sun to claim them.

M AT T M I L L E R / T H E W O R L D - H E R A L D

Mike Murphy of Hastings, Nebraska, left, and Bill Henry of Toronto signal to Henry’s parents from their seats near the front of the arena ﬂoor. Murphy, who was attending his ﬁrst meeting, met Henry Saturday as the two were rushing to get seats up close before the start of the annual meeting. Dairy Queen treats hit the spot Saturday for Omaha sisters Kate Wester, 5, center, and Claire Wester, 3. Steered by mom Laura Wester, the sisters made the rounds in the exhibit hall.

question and was hoping a journalist would read it during the annual meeting. “I might have come off as patently naive,” he said. “But that’s OK, that’s how you learn.” Johnson said he always picks up a valuable tidbit or two on his Omaha trips, but this year liked the anticipation of hearing if his question would be heard. He wanted to know Buffett’s strategy for when intrinsic value exceeds market price. “When you do something like this, it just makes the experience so much more meaningful.”

LIKE CHURCH

KENT SIEVERS/THE WORLD-HERALD

“People who come to us have already made a lot of money,” Bates said. “Wealthy people need to understand how to retain wealth.” Those in Bates’ group range in age from 25 to late 60s, hail from ﬁve states and are staying at the downtown Magnolia. They’ll rest a little before moving on to Nebraska Furniture Mart and then dinner. In the spirit of the back-and-forth commentary that shareholders get from Democrat Buffett and Republican Charlie Munger, Bates asks his group to talk about themselves and their views at dinner. “It can be a lot of fun hearing the issues through different lenses.”

EXOTIC OMAHA William Green, an international journalist from London, has traveled the globe. But it’s Omaha that his teenage son views as exotic when dad told him he’d be here this weekend for the Berkshire meeting. “There is an exoticism and mystique to Omaha,” Green said. “Here we are, seeing two of the great minds of our era.” Green said he was in town with friend Guy Spier, a Zurich-based investor who, along with another investor, bid $650,100 in 2007 to dine with Warren Buffett. That was for a fundraiser. Saturday was Green’s ﬁrst Berkshire meeting, and he summed it up as a cultural experience: “I want to see the scene, the phenomenon of the Berkshire Hathaway meeting, why this is such a big deal.”

BERKSHIRE SWAG Some go ﬁshing. Some hunt or watch baseball. Ryan Pritchard of Minneapolis and his four buddies get together each year for a guys’ weekend with Warren Buffett. Pritchard, 29, looks for tips at the meeting that he can use in the automotive industry. “I use it more as a leading indicator. It seems that whatever Mr. Buffett says happens.” The old classmates make time also for cigar bars, Scotch and — if they are feeling able on Sunday — the 5k Run. But they don’t go home without “forgiveness gifts” for wives or girlfriends. Last year, Pritchard shopped for an engagement ring. This year, it’s furniture. “We spoil them with Berkshire swag.”

HOLDING A SPOT Tia Valery was waiting in the dark in front of the CenturyLink Center at 3 a.m. — and she wasn’t even going to the meeting. The 20-yearold student at the University of Nebraska at Omaha said she had learned, through Craigslist, of a California guy seeking someone to hold a spot in line. Tia He told her he Valery would come before the doors open, switch places and thus be in position to nab a good seat in the auditorium. Her prize for sitting in the morning

chill, with a blanket and box of cereal: $100. Two friends came with her, but they retreated to their car to sleep. Shortly before 7 a.m., Valery got a call and stood up to wave to the man. The crowd by then had just started to move inside. The Californian she called Daniel had missed his opportunity to be among the ﬁrst in, but he still got in ahead of most.

SMALL-WORLD STORY Brandon Taylor of Richmond, Virginia, saw a familiar face Saturday in front of the CenturyLink Center at 4:30 a.m. He had met James Ward of Toronto a year earlier around the same time and in the same spot. In a smallworld experience, the two picked up where they left off, chatting about investments, Buffett’s philosophy, what each has done in the year prior. Taylor, a ﬁnancial adviser, said it’s the like-minded people, the investment wizards, the chance of bumping into billionaires, that are part of what keeps him returning. Last year, he said, Bill Gates sat nearby as Taylor was having dinner at a downtown hotel. So when he can, Taylor books his hotel in the center of activity downtown. “It’s a small price to pay for the Woodstock of Capitalism.”

ASK A QUESTION It was Steve Johnson’s ninth shareholders meeting, but this one was different. The business librarian from Sioux Falls, South Dakota, had submitted a

Grant Elpers likened the Berkshire annual meeting to sitting in a pew on Sunday. “It’s like going to church,” he said. “They don’t really say anything new every year, but it’s reconﬁrming.” Elpers, a ﬁnancial adviser from Garden City, Kansas, and wife Polly, a nurse, don’t tire of listening to Charlie Munger and Warren Buffett. And they expect they’ll leave Omaha with a few nuggets of new information. Also in the spirit of church, the couple and his mom, Kim, are accustomed to leaving their coats and bags of merchandise on auditorium seats while they stock up on more goods from vendors. They say they’ve never lost anything, and say there is a widespread trust among shareholders. People go to the meeting to pick up investment tips, Polly said, not someone else’s property.

YOUNG WISDOM Andrew Holm, 13, may have been at his ﬁrst Berkshire meeting but he already knew the golden rule. The teen from Toronto, sporting a suit jacket and gelled hair, was in Omaha with his dad, Greg, and grandpa, Gordon. The elder Holms were at their 15th consecutive annual meeting together. Said Andrew: “I’m trying to learn some rules about investing and to take those Andrew rules and become Holm rich.” He said he already knew top rules, having learned them from his hero, Buffett. Andrew rattled those off: “Rule No. 1, Do not ever lose your principal. Rule No. 2, Do not ever forget Rule No. 1.” Contact the writer: 402-444-1224, cindy.gonzalez@owh.com

• 9D

10D

MONEY

• SUNDAY, MAY 4, 2014

OMAHA WORLD-HERALD

Southwest Airlines CEO vows to ﬁx on-time problem

Though still No. 1 all-time, the carrier now consistently trails its six biggest rivals. DALLAS (AP) — Southwest Airlines is falling behind other airlines when it comes to its planes arriving on time, and the carrier plans to tinker with its flight schedule to fix that. CEO Gary Kelly said the airline will add a few minutes between some flights, and it will be more cautious

about selling itineraries with tight connections between ﬂights. Southwest has long prided itself on being on time. It still ranks No. 1 all-time among the six big airlines that have been reporting such records to the government since 1987, but it hasn’t topped the charts for a full year since 2001, and it hasn’t beaten all the other major carriers since 2009. Last year Southwest fell to 12th place — behind United, Delta, American and US Airways, all its closest rivals in size — among 16 airlines that reported

figures to the U.S. Department of Transportation. Only 76.7 percent of Southwest flights arrived within 14 minutes of schedule, which is the government’s definition of being on time. That was down from 83.1 percent in 2012. “We’ve got significant schedule changes that are planned for the summer,” Kelly said. “That’s when I want to be monitoring the on-time performance and making sure that we see the improvement that we need. We need to get back to where we were for 2012.” The on-time breakdown starts at

the airport gate. Southwest was once legendary for turning around incoming planes and sending them back out for the next flight in about 10 minutes. That “turn time” has slipped to about 30 minutes as planes have filled more seats, Southwest has added newer and larger versions of the Boeing 737 jet to carry more passengers, and it has added flights at congested big-city airports. Compounding matters last year, Southwest began packing more flights into the peak hours of the day, when most customers wanted to fly. The move

Patience gets tested when workers share desk or cubicle

FROM THE MONEY TALKS BLOG Americans keep delaying retirement, Gallup poll ﬁnds

Americans continue to push retirement back later and later, a Gallup survey found, with the average person retiring at 62. That’s the highest age reported since Gallup started asking the question in 1991, when the average age was 57. Gallup said retirement age may be increasing because baby boomers are both engaged in the workforce and do not have the resources to retire. People who have not yet retired expect to do so even later, at age 66, an age that has slowly increased from 63 in 2002, Gallup said. The rising ages for both questions, Gallup said, “likely reﬂects the changing landscape of retirement, including longer life spans, changes in Social Security beneﬁts and employersponsored retirement plans, and lifestyle choices such as a desire to keep working after reaching the traditional retirement age.” The survey, conducted April 3-6, has a margin of error of 4 percentage points. — Barbara Soderlin

PivotDesk matches ﬁrms and office space

You’ve heard of the ride-sharing service Lyft that recently hit Omaha and Lincoln streets — but what about office sharing? PivotDesk launched in Omaha last week. It’s an online tool that connects businesses that have extra office space with those who are looking for it. “We’re seeing it more in terms of Match.com for businesses, rather than a real estate site,” co-founder and CEO David Mandell said. Here’s how it works: A business, or “host,” lists the space available and what kind of business it would like to fill the space on PivotDesk. com. A “guest,” or a business looking for space, then puts in its specifications in terms of culture, desks and amenities, and a match is made. The site handles licensing. It’s free for hosts to post their space and guests can use the site to peruse available space free of charge, but PivotDesk charges the host a monthly fee equal to 10

Q: My problem is that people keep messing with my desk. When employees from outlying areas visit our office, they are told to use any empty cubicle. One day when I was out, someone used up all the tissues from my Kleenex box and completely filled the wastebasket with them. Another time, one of the visitors apparently took my favorite pen. I also find that people frequently change the settings on my computer. For example, they will mute the sound, create a new default font or send documents to a different printer. I placed a polite note on my monitor asking visitors to please restore the settings, but that had no effect. I have no idea who these employees are, so I can’t talk with them directly. Although I don’t want to seem petty, I think their behavior is very rude. What should I do about this? A: Almost everyone feels territorial about their office habitat, so I completely understand your reaction. Given your company’s shareddesk policy, however, I’m afraid you may need to adjust your thinking a bit. Where you see “my desk” and “my computer,” management just sees available space and equipment. While you may not be able to banish the intruders, you can still attempt to modify their behavior. To clearly indicate that this cubicle is occupied, put some photos or other personal touches in obvious places. When you plan to be away, stash all items that you wish to protect in a drawer. If your desk has a lock, use it. Retain the reminder about your computer settings, but make it more specific. Since most people won’t remember what they changed, provide a detailed list of your preferences. Some visitors may ignore this request, but the considerate ones will comply. Ultimately, though, the most helpful strategy is to make the mental shift from irritation to acceptance. Try to view these interlopers as a necessary evil and expect to undo their damage from time to time. There’s no point getting stressed out over something you can’t change.

I O WA T O U R I S M O F F I C E

Road trippin’ for Iowa tourism The $7.6 billion Iowa tourism industry is turning a bus into a traveling billboard. The motorcoach, wrapped in images of Iowa tourism sites, will travel 2,100 miles around Iowa, stopping at more than 60 tourism destinations. Its nine-day journey started Friday. Next Friday the bus will reach western Iowa, stopping in Manning, Hamlin, Elk Horn, Avoca and Council Bluffs. The next day the bus will hit Beebeetown and Missouri Valley before heading to Sioux City. For a list of stops, see traveliowa.com/epiciowaroadtrip.

percent of the license, or rental agreement. Upon booking, the guest is charged a deposit equal to one month of the license fee. The company, based in Boulder, Colorado, added 23 cities, including Omaha and Kansas City, in April. — Paige Yowell

Technology buffs invited to mingle The Technology Association of Iowa is bringing its monthly networking event, TechBrew, to Council Bluffs the ﬁrst Tuesday of every month starting this month. Entrepreneurs, technology buffs, students and venture capitalists are invited to Dixie Quicks restaurant at 147 W. Broadway from 5 p.m. to 7 p.m. Tuesday. Said Leanna Jacobsen, president of the Technology Association of Iowa: “We buy the ﬁrst beer and invite everybody in, and they take it from there.” Seven other Iowa cities host the monthly, informal networking events. For more information or to RSVP, visit technologyiowa.org. — Cole Epley

4% of Nebraskans ‘near poor,’ Census ﬁgures show

Nebraska’s rate of “near-poor” people was below the national average from 2010 through 2012, the U.S. Census said Thursday. Four percent of Nebraskans, or 74,000 people, had family income between 100 percent and 125 percent of the poverty threshold. That compares to 4.7 percent nationwide. A family of four with two children under 18 is “near poverty” with an income of $23,283 to $29,104. The national rate of “near poverty” is down from 6.3 percent in 1966, Census ofﬁcials said. — Barbara Soderlin

Omahan gives Fed economic advice

The Federal Reserve Bank of Kansas City has named an Omaha businessman to its Economic Advisory Council for a three-year term. Blue Cross Blue Shield of Nebraska Chief Executive Steve Martin joins seven other newly appointed business leaders from

the Midlands on the advisory panel. The council meets twice a year with Esther George, Federal Reserve Bank of Kansas City president, to discuss the regional economy. — Russell Hubbard

Omahan starts paralegal company Kathi Burt of Omaha has opened Nebraska Paralegal Services, from which she will offer contract paralegal services and consulting to local attorneys. Burt said although corporations and large law ﬁrms typically have the resources to hire contract paralegals, solo practitioners can’t always afford to hire high-caliber help. She hopes to change that. Paralegals in most states, including Nebraska, are not required to be licensed, and Burt said she wants to elevate the profession locally to make paralegals more competent. — Cole Epley The Money Talks blog can be found on Omaha.com under the Money tab.

Cody Foster & Co. says retailer copied designs The Nebraska-based craft wholesaler amends its lawsuit against Urban Outfitters BY JANICE PODSADA WORLD-HERALD STAFF WRITER

Cody Foster & Co., the Nebraska craft wholesaler that was challenged over the originality of some of its items, now is suing Urban Outfitters and its subsidiaries for allegedly copying eight Cody Foster original designs without permission. The amended lawsuit alleges that Urban Outfitters intentionally copied several of Cody Foster’s copyrighted ornaments and says they were “virtually identical in appearance,” according to court documents filed in Douglas Country District Court. The suit adds another chapter to a saga that began last October when Lisa Congdon,

an independent California artist, complained on her blog that Cody Foster had pirated her designs. Congdon’s outcry spread rapidly on social media, drawing the attention of Anthropologie, Urban Outfitters, West Elm, Fab.com and other stores that carried Cody Foster products. In response, several retailers, including Urban Outfitters, said they would no longer do business with the wholesaler based in Valentine and would remove all its products from their shelves. Cody Foster apologized for any “harm it may have inadvertently caused customers and the artist community at large,” and pledged to alter its business practices to reduce the possibility of items resembling those sold by others. Some art and copyright experts who weighed in on the controversy pointed out that it’s difficult to determine the originality of items that are based on folk art designs or traditional motifs.

The most recent court filing amends a previous lawsuit that Cody Foster filed alleging that Urban Outfitters had violated contracts when it canceled orders last fall and owed Cody Foster more than $500,000. “It is Urban Outfitters’ policy not to comment on pending litigation,” said Alison Gutierrez, an attorney at Kutak Rock LLP in Omaha, which represents the retailer in this matter. The latest allegations are accompanied by photographs pairing Cody Foster’s products with ornaments from Urban Outfitters and Anthropologie, including an owl, heart and wreath. Brian Jorde, Cody Foster’s Omaha attorney, said the wholesaler seeks to halt the sale of the ornaments in question and compel Urban Outfitters to reimburse Cody Foster with the proceeds from the sales.

Does success breed success? In an era in which the economic gap between the richest 1 percent of the population and the remaining 99 percent has been growing for years, that’s a pressing question. Now some scientists say that a little initial success not based on merit can create a positive feedback mechanism, widening the disparity between those who do and don’t get the early win. The ﬁndings, published in the journal Proceedings of the National Academy of Sciences, show that a little nudge goes a

long way. An international team of researchers ran a real-world experiment on a wide variety of efforts, including fundraising drives, political causes and product reviews. They did it in an arena in which they could easily introduce a “success” into a system and track its potential effects: the Web, speciﬁcally the websites Kickstarter, Wikipedia, Epinions.com and Change.org. The scientists sampled 200 unfunded Kickstarter campaigns and made a donation to 100 of them, to see if those that got the initial money did better than those that didn’t. They took 305

Q: I was recently asked to share a cubicle with one of my co-workers. Since moving in with “Ashley,” I have noticed that she frequently plays games on her computer, sometimes for up to two hours. When I mentioned this to the owner, he shrugged it off

new, unrated product reviews at Epinions.com and gave some of them a “very helpful” rating. They sampled 521 top-rated editors at Wikipedia and gave a portion of them an award for their work. They looked at 200 early campaigns on Change.org and gave 100 of them a dozen signatures each. Then they watched what happened with those that received the early initial success compared with those that did not. In all four cases, those that received the initial success ended up more successful as a group than did those that didn’t experience the same early success.

MARIE G. MCINTYRE

YOUR OFFICE COACH and said she won’t be playing games for long because her busy season is coming up. This is seriously affecting my morale, so I would like to diplomatically talk to Ashley about it. How should I approach her? A: Unless Ashley’s games habit is affecting your work, this is really not your problem. The reality is that you are not her boss, so it is not your place to correct her performance. You have done all you can do by talking with the owner, who apparently doesn’t care. Hopefully the “busy season” will soon put an end to Ashley’s gooﬁng off. But in the meantime, reduce your own frustration by ignoring her activities and focusing on your tasks.

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backﬁred. “We tried to get a little more aggressive in 2013, and it probably is the cause of our dip in on-time performance,” Kelly said. But, he said, customers like the busy schedules that offer more itineraries. Improving the on-time rating must be balanced against the risk of losing revenue by failing to offer all the itineraries that passengers want, he said. “As long as we’re operating a full airplane,” Kelly said, “I don’t mind spending an extra minute or two turning it.”

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FINANCIAL INSTITUTION

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MONEY

OMAHA WORLD-HERALD

SUNDAY, MAY 4, 2014

• 11D

Combined Stocks NAME

TKR

LAST

WK WK YTD CHG %CHG %CHG PE

DIV

A-B-C ABB Ltd ACI Wwde ADT Corp AES Corp AFLAC AGCO AK Steel AT&T Inc AbbottLab AbbVie Abraxas Accenture Actavis ActivsBliz Actuate AdobeSy AMD Aeropostl Aetna Agilent Agnico g AkamaiT AlcatelLuc Alcoa Allergan AlliantEgy AlldNevG Allstate AllyFin n AlphaNRs AlpAlerMLP AlteraCp lf Altria Amazon Ambev n AMovilL AmAirl n AmApparel AmAxle ACapAgy AmCapLtd AEagleOut AEP AmExp AmIntlGrp ARltCapPr AmTower AmeriBrgn Amgen AmkorTch Anadarko AnglogldA Annaly Apache ApolloInv Apple Inc ApldMatl ArcelorMit ArchCoal ArchDan ArenaPhm AriadP ArmHld ArmourRsd AstraZen Athersys AtlPwr g Atmel Autodesk Auxilium AvagoTch AvanirPhm Avon BB&T Cp BP PLC Baidu BakrHu Ballanty BallardPw BcoBrad pf BcoSantSA BcoSBrasil BkofAm BkNYMel Barclay B iPVix rs BarrickG Baxter BectDck BedBath BerkHa A BerkH B BestBuy BioMarin BlkHillsCp BlackBerry Blackstone BlockHR BdwlkPpl Boeing BorgWrn s BostonSci BoydGm BrMySq Broadcom BrcdeCm Buckeye Buenavent CA Inc CBRE Grp CBS B CH Robins CIT Grp CMS Eng CNO Fincl CSX CVS Care CYS Invest Cabelas CblvsnNY CabotOG s Cadence Calpine Cameco g Cameron CdnNRs gs CdnSolar CapOne CpstnTurb CardnlHlth Carnival Catamaran Caterpillar Celgene CellThera CelldexTh Cemex Cemig pf s CenterPnt CntryLink Cerner s CharterCm Chemtura CheniereEn ChesEng Chevron Chimera CienaCorp Cigna Cirrus Cisco Citigroup CitrixSys CliffsNRs Clorox Coach

ABB 24.14 -1.86 -7.2 -9.1 ACIW 55.95 -.85 -1.5 -13.9 ADT 30.25 +1.18 +4.1 -25.3 AES 14.33 -.06 -.4 -1.2 AFL 63.15 +1.31 +2.1 -5.5 AGCO 54.81 -2.13 -3.7 -7.4 AKS 7.21 +.34 +4.9 -12.1 T 35.63 +1.14 +3.3 +1.3 ABT 38.56 +.53 +1.4 +.6 ABBV 51.18 +2.04 +4.2 -3.1 AXAS 5.42 +.23 +4.4 +66.2 ACN 79.36 +.93 +1.2 -3.5 ACT 202.34 +4.27 +2.2 +20.4 ATVI 19.94 +.48 +2.5 +11.8 BIRT 3.96 -1.65 -29.4 -48.6 ADBE 61.56 -.05 -.1 +2.8 AMD 4.12 +.07 +1.7 +6.5 ARO 4.95 +.19 +4.0 -45.5 AET 71.49 +.24 +.3 +4.2 A 54.54 +.15 +.3 -4.6 AEM 32.31 +3.26 +11.2 +22.5 AKAM 53.18 +1.15 +2.2 +12.7 ALU 3.92 +.02 +.5 -10.9 AA 13.72 +.39 +2.9 +29.1 AGN 169.91 +1.76 +1.0 +53.0 LNT 57.71 -.53 -.9 +11.8 ANV 3.37 -.33 -8.9 -5.1 ALL 57.18 +1.07 +1.9 +4.8 ALLY 24.05 -.34 -1.4 +.3 ANR 4.63 +.43 +10.2 -35.2 AMLP 18.27 +.31 +1.7 +2.7 ALTR 32.13 -.96 -2.9 -1.2 MO 39.97 +.86 +2.2 +4.1 AMZN 308.01 +4.18 +1.4 -22.8 ABEV 7.24 -.43 -5.6 -1.5 AMX 20.13 +.40 +2.0 -13.9 AAL 36.49 +.49 +1.4 +44.5 APP .63 -.08 -11.1 -48.7 AXL 18.78 +1.09 +6.2 -8.2 AGNC 22.51 -.26 -1.1 +16.7 ACAS 15.04 +.40 +2.7 -3.8 AEO 11.50 +.25 +2.2 -20.1 AEP 52.83 -.55 -1.0 +13.0 AXP 86.93 -.10 -.1 -4.2 AIG 52.35 +.74 +1.4 +2.5 ARCP 13.08 +.07 +.5 +1.8 AMT 87.00 +3.92 +4.7 +9.0 ABC 64.27 +1.44 +2.3 -8.6 AMGN 112.42 +1.01 +.9 -1.5 AMKR 8.48 +1.32 +18.4 +38.3 APC 99.57 +.07 +.1 +25.5 AU 18.39 ... ... +56.9 NLY 11.54 -.01 -.1 +15.7 APA 86.96 -.32 -.4 +1.2 AINV 7.96 -.06 -.7 -6.1 AAPL 592.58 +20.64 +3.6 +5.6 AMAT 18.96 +.34 +1.8 +7.2 MT 16.24 +.09 +.6 -9.0 ACI 4.72 +.31 +7.0 +6.1 ADM 43.55 -.87 -2.0 +.3 ARNA 6.68 +.72 +12.1 +14.2 ARIA 7.23 +.14 +2.0 +6.0 ARMH 44.95 -2.76 -5.8 -17.9 ARR 4.25 +.09 +2.2 +6.0 AZN 81.02 +12.36 +18.0 +36.5 ATHX 1.63 -1.10 -40.3 -34.8 AT 3.33 +.10 +3.1 -4.3 ATML 7.58 -.38 -4.7 -3.2 ADSK 47.68 +.68 +1.4 -5.2 AUXL 21.48 -5.40 -20.1 +3.6 AVGO 64.27 +1.93 +3.1 +21.5 AVNR 4.63 +1.33 +40.3 +37.8 AVP 13.57 -1.27 -8.6 -21.2 BBT 37.39 +.06 +.2 +.2 BP 50.87 +1.15 +2.3 +4.6 BIDU 159.91 -3.00 -1.8 -10.1 BHI 69.69 +.16 +.2 +26.1 BTN 4.54 -.08 -1.7 -1.9 BLDP 3.57 -.60 -14.4 +135.6 BBD 15.30 +.41 +2.8 +22.1 SAN 9.93 +.21 +2.2 +9.5 BSBR 6.67 +.94 +16.4 +23.5 BAC 15.25 -.70 -4.4 -2.1 BK 34.43 +.83 +2.5 -1.5 BCS 17.38 +.59 +3.5 -4.1 VXX 40.00 -1.83 -4.4 -6.0 ABX 17.40 -.49 -2.7 -1.3 BAX 74.71 +2.39 +3.3 +7.4 BDX 112.60 +.04 ... +1.9 BBBY 62.15 -.33 -.5 -22.6 BRK/A 192255 +1569 +.8 +8.1 BRK/B 128.09 +.83 +.7 +8.0 BBY 26.15 +1.77 +7.3 -34.4 BMRN 57.70 +.61 +1.1 -18.0 BKH 57.83 -.42 -.7 +10.1 BBRY 8.15 +.87 +12.0 +9.5 BX 29.57 -1.45 -4.7 -6.1 HRB 28.92 +1.29 +4.7 -.4 BWP 15.86 -.30 -1.9 -37.9 BA 129.94 +1.28 +1.0 -4.8 BWA 60.65 -.86 -1.4 +8.5 BSX 12.81 -.57 -4.3 +6.6 BYD 11.51 -.18 -1.5 +2.2 BMY 49.80 -.70 -1.4 -6.3 BRCM 30.66 +.90 +3.0 +3.4 BRCD 8.86 -.39 -4.2 -.1 BPL 77.15 +1.21 +1.6 +8.6 BVN 11.61 -1.13 -8.9 +3.5 CA 29.91 -.04 -.1 -11.1 CBG 28.50 +2.42 +9.3 +8.4 CBS 57.23 -.82 -1.4 -10.2 CHRW 58.45 +2.17 +3.9 +.2 CIT 43.26 -3.11 -6.7 -17.0 CMS 29.57 -.55 -1.8 +10.5 CNO 16.93 -.44 -2.5 -4.3 CSX 27.83 -.20 -.7 -3.3 CVS 73.86 +.62 +.8 +3.2 CYS 8.68 +.09 +1.0 +17.1 CAB 65.05 +.83 +1.3 -2.4 CVC 16.78 +.34 +2.1 -6.4 COG 38.78 +.60 +1.6 +.1 CDNS 15.55 +.70 +4.7 +10.9 CPN 22.71 +.35 +1.6 +16.4 CCJ 21.06 -1.28 -5.7 +1.4 CAM 65.27 +.67 +1.0 +9.6 CNQ 40.92 +.47 +1.2 +20.9 CSIQ 27.54 -2.61 -8.7 -7.6 COF 75.82 +2.48 +3.4 -1.0 CPST 1.70 -.50 -22.6 +31.4 CAH 63.80 -3.40 -5.1 -4.5 CCL 38.81 +.75 +2.0 -3.4 CTRX 42.57 +3.62 +9.3 -10.3 CAT 105.01 +.32 +.3 +15.6 CELG 147.40 +5.34 +3.8 -12.8 CTIC 2.96 -.07 -2.3 +55.0 CLDX 14.51 +.47 +3.3 -40.1 CX 12.90 +.51 +4.1 +13.4 CIG 7.31 +.56 +8.3 +22.7 CNP 24.29 -.57 -2.3 +4.8 CTL 34.83 +.07 +.2 +9.4 CERN 51.40 +1.89 +3.8 -7.8 CHTR 137.21 +7.20 +5.5 +.3 CHMT 24.02 +1.64 +7.3 -14.0 LNG 56.91 +.73 +1.3 +32.0 CHK 28.28 -.52 -1.8 +4.2 CVX 124.72 +.73 +.6 -.2 CIM 3.09 -.02 -.6 -.3 CIEN 19.33 -1.32 -6.4 -19.2 CI 82.66 +3.71 +4.7 -5.5 CRUS 22.52 +.89 +4.1 +10.3 CSCO 22.94 -.06 -.3 +3.1 C 47.73 -.01 ... -8.4 CTXS 59.00 -.42 -.7 -6.7 CLF 18.27 +.27 +1.5 -30.3 CLX 89.58 -.45 -.5 -3.4 COH 43.88 -5.94 -11.9 -21.8

... 35 18 16 10 9 dd 11 24 20 60 16 35 21 31 cc 82 dd 13 20 24 33 ... 44 50 17 19 12 ... dd q 24 18 cc ... 12 dd dd 15 7 11 16 15 17 9 dd 60 35 18 16 63 ... 3 16 6 14 49 dd dd 20 dd dd ... dd 18 dd dd cc 48 dd 29 dd dd 14 12 31 26 25 dd ... ... ... 20 15 ... q dd 20 23 13 16 16 17 dd 24 dd 14 35 16 22 21 22 dd 29 42 13 49 9 13 20 19 22 14 16 15 15 20 dd 23 10 46 39 84 ... 23 ... 44 11 dd 59 30 25 18 47 dd dd ... ... 30 dd 44 dd dd dd 42 11 ... dd 11 12 15 11 33 6 21 13

.78e ... .80 .20 1.48 .44 ... 1.84 .88f 1.68f ... 1.86e ... .20f ... ... ... ... .90 .52m .32 ... .18e .12 .20 2.04 ... 1.12f ... ... 1.09e .60 1.92 ... .22e .34e ... ... ... 3.15e ... .50 2.00 1.04f .50f 1.00 1.28f .94 2.44 ... .72 ... 1.35e 1.00f .80 13.16f .40 .20 .04m .96 ... ... .28e .60 2.80e ... .40 ... ... ... 1.08f ... .24 .96f 2.28 ... .60 ... ... .45e .82e .95e .04 .68f .41e ... .20 1.96 2.18 ... ... ... .68 ... 1.56 ... 1.39e .80 .40 2.92 .50 ... ... 1.44 .12f ... 4.40f .31e 1.00 ... .48 1.40 .40 1.08 .24f .64f 1.10 1.28 ... .60 .08 ... ... .40 ... .90f ... 1.20 ... 1.21 1.00 ... 2.40 ... ... ... .52t .58e .95 2.16 ... ... ... ... .35 4.28f .36a ... .04 ... .76f .04 ... .60 2.84 1.35

WK WK YTD CHG %CHG %CHG PE

NAME

TKR

LAST

CobaltIEn CocaCola CocaCE CognizTc s ColgPalm s Comcast Comc spcl ConAgra ConcurTch ConocoPhil ConsolEngy ConEd CorOnDem Corning Costco Covidien CSVInvNG CSVelIVST CSVxSht rs Cree Inc CrwnCstle Ctrip.com CumMed CypSemi CytRx Cytokinet rs

CIE 19.20 KO 40.95 CCE 46.25 CTSH 49.41 CL 67.10 CMCSA 52.03 CMCSK 51.31 CAG 30.61 CNQR 83.47 COP 76.52 CNX 44.72 ED 56.82 CSOD 39.44 GLW 20.99 COST 115.15 COV 71.69 DGAZ 2.86 XIV 32.91 TVIX 6.05 CREE 46.39 CCI 74.57 CTRP 47.77 CMLS 6.63 CY 9.37 CYTR 3.22 CYTK 4.46

DCT Indl DDR Corp DR Horton DanaHldg Danaher Deere DeltaAir DenburyR DevonE DirecTV DirSPBr rs DxGldBll rs DrxFnBear DrxSCBear DrxEMBull DrxFnBull DirDGdBr s DrxSCBull Discover DishNetw h Disney DollarGen DomRescs DonlleyRR DowChm DrmWksA DryShips DuPont DukeEngy Dynegy E-CDang E-Trade eBay EMC Cp EOG Res s Eaton EdisonInt EldorGld g ElectArts EmersonEl Emulex EnCana g Endo Intl Endocyte EngyTsfr EngyXXI ENSCO Entergy Ericsson EsteeLdr ExactSci h ExcoRes Exelixis Exelon Expedia ExpScripts ExxonMbl Facebook Fastenal FedExCp FidlNFin FifthThird Finisar FireEye n FstNiagara FstSolar FirstEngy Fiserv s Flextrn FordM ForestLab Fortinet Fortress FBHmSec ForumEn FrankRes s FMCG Freescale FrontierCm FuelCellE Fusion-io

DCT 7.89 +.03 +.4 +10.7 DDR 17.20 +.28 +1.7 +11.9 DHI 23.12 +.63 +2.8 +3.6 DAN 21.34 +.11 +.5 +8.8 DHR 73.27 +.22 +.3 -5.1 DE 92.92 -.22 -.2 +1.7 DAL 37.23 +1.16 +3.2 +35.5 DNR 16.91 -.15 -.9 +2.9 DVN 70.28 -.12 -.2 +13.6 DTV 79.87 +3.86 +5.1 +15.7 SPXS 29.94 -.88 -2.9 -9.9 NUGT 37.28 -.78 -2.0 +36.0 FAZ 20.04 -.61 -3.0 -6.8 TZA 17.10 -.23 -1.3 +.8 EDC 27.07 +1.45 +5.7 -5.7 FAS 90.27 +2.55 +2.9 ... DUST 22.83 +.19 +.8 -48.2 TNA 68.99 +.81 +1.2 -10.9 DFS 56.49 +.96 +1.7 +1.0 DISH 61.82 +3.84 +6.6 +6.7 DIS 80.31 +2.08 +2.7 +5.1 DG 57.00 +.67 +1.2 -5.5 D 70.86 -1.47 -2.0 +9.5 RRD 16.43 -.88 -5.1 -19.0 DOW 48.69 +.19 +.4 +9.7 DWA 24.53 -2.33 -8.7 -30.9 DRYS 3.07 -.04 -1.3 -34.7 DD 66.85 +.19 +.3 +2.9 DUK 72.86 -1.14 -1.5 +5.6 DYN 29.65 +2.22 +8.1 +37.8 DANG 11.17 -.22 -1.9 +17.0 ETFC 22.67 +.27 +1.2 +15.4 EBAY 52.01 -1.71 -3.2 -5.2 EMC 25.69 +.22 +.9 +2.1 EOG 97.06 -1.98 -2.0 +15.7 ETN 72.86 -.60 -.8 -4.3 EIX 55.34 -1.59 -2.8 +19.5 EGO 6.19 +.25 +4.2 +8.8 EA 28.50 +.29 +1.0 +24.2 EMR 67.53 -.91 -1.3 -3.8 ELX 4.68 -2.59 -35.6 -34.6 ECA 22.94 +.31 +1.4 +27.1 ENDP 65.79 +5.15 +8.5 -2.5 ECYT 6.62 -11.32 -63.1 -38.0 ETP 56.00 +1.14 +2.1 -2.2 EXXI 22.70 -.56 -2.4 -16.1 ESV 49.93 -1.73 -3.3 -12.7 ETR 72.24 +.40 +.6 +14.2 ERIC 12.02 -.02 -.2 -1.8 EL 75.62 +3.42 +4.7 +.4 EXAS 12.09 -.54 -4.3 +2.9 XCO 5.98 +.06 +1.0 +12.6 EXEL 3.32 +.06 +1.8 -45.8 EXC 35.84 -.42 -1.2 +30.9 EXPE 71.15 +1.74 +2.5 +2.1 ESRX 67.23 -3.81 -5.4 -4.3 XOM 102.01 +1.60 +1.6 +.8 FB 60.46 +2.75 +4.8 +10.6 FAST 49.44 +.33 +.7 +4.1 FDX 136.95 +2.74 +2.0 -4.7 FNF 33.60 +2.07 +6.6 +3.5 FITB 20.56 -.20 -.9 -2.3 FNSR 24.91 -2.66 -9.6 +4.1 FEYE 39.94 -1.24 -3.0 -8.4 FNFG 8.86 -.10 -1.1 -16.6 FSLR 68.03 -.60 -.9 +24.5 FE 33.34 -1.31 -3.8 +1.1 FISV 61.58 +5.69 +10.2 +4.3 FLEX 9.36 +.04 +.4 +20.5 F 15.90 +.25 +1.6 +3.0 FRX 91.51 +1.67 +1.9 +52.4 FTNT 21.96 -.09 -.4 +14.8 FIG 7.45 +.26 +3.6 -13.0 FBHS 40.82 +.48 +1.2 -10.7 FET 30.53 -1.53 -4.8 +8.0 BEN 52.95 +.18 +.3 -8.3 FCX 34.68 +.67 +2.0 -8.1 FSL 22.02 -.28 -1.3 +37.2 FTR 5.95 +.21 +3.7 +28.0 FCEL 2.24 -.10 -4.3 +58.9 FIO 8.61 +.01 +.1 -3.4

GT AdvTc GalenaBio Gap Garmin GenDynam GenElec GenGrPrp GenMills GenMotors Genworth Gerdau GeronCp GileadSci GlaxoSKln GluMobile Gogo n GolLinhas GoldFLtd Goldcrp g GoldmanS Goodyear Google A Google C n Gordmans GraphPkg GreenPlns Groupon GpFnSnMx GpTelevisa HCA Hldg HCP Inc HD Supp n HalconRes Hallibrtn HartfdFn HeclaM Herbalife HercOffsh Hershey Hertz Hess HewlettP Hillshire HimaxTch HollyFront Hologic

GTAT 16.91 +.82 +5.1 +94.0 GALE 2.44 +.15 +6.6 -50.8 GPS 39.28 +.50 +1.3 +.5 GRMN 57.53 +3.29 +6.1 +24.6 GD 111.01 +2.00 +1.8 +16.2 GE 26.68 +.08 +.3 -4.8 GGP 23.17 +.49 +2.2 +15.4 GIS 52.75 +.46 +.9 +5.7 GM 34.97 +1.25 +3.7 -14.4 GNW 17.81 +.47 +2.7 +14.7 GGB 6.31 +.26 +4.3 -19.5 GERN 1.85 -.05 -2.6 -61.0 GILD 77.71 +3.81 +5.2 +3.5 GSK 55.13 -.63 -1.1 +3.3 GLUU 4.32 +.25 +6.1 +11.3 GOGO 13.42 -4.83 -26.5 -45.9 GOL 6.84 +1.03 +17.7 +49.7 GFI 4.20 -.12 -2.8 +31.3 GG 25.27 +.41 +1.6 +16.6 GS 158.88 +.64 +.4 -10.4 GT 25.29 -2.10 -7.7 +6.0 GOOGL533.87 +10.77 +2.1 -4.8 GOOG 527.93 +11.75 +2.3 -5.5 GMAN 4.53 -.19 -4.0 -40.9 GPK 10.27 -.18 -1.7 +7.0 GPRE 28.46 -.35 -1.2 +46.9 GRPN 7.09 -.10 -1.4 -39.7 BSMX 12.40 +1.13 +10.0 -9.1 TV 32.92 +.81 +2.5 +8.8 HCA 51.88 -1.56 -2.9 +8.7 HCP 42.07 +1.31 +3.2 +15.8 HDS 25.71 -.22 -.8 +7.1 HK 5.51 +.08 +1.5 +42.7 HAL 63.86 +1.00 +1.6 +25.8 HIG 35.78 +.80 +2.3 -1.2 HL 3.11 +.03 +1.0 +1.0 HLF 59.95 +2.12 +3.7 -23.8 HERO 4.61 +.10 +2.2 -29.3 HSY 96.98 +.62 +.6 -.3 HTZ 29.26 +1.44 +5.2 +2.2 HES 88.67 +1.24 +1.4 +6.8 HPQ 32.49 +.91 +2.9 +16.1 HSH 35.58 -.04 -.1 +6.4 HIMX 8.78 +.19 +2.2 -40.3 HFC 51.95 +.09 +.2 +4.5 HOLX 22.74 +2.47 +12.2 +1.7

+1.13 +6.3 +16.7 -.06 -.1 -.9 +.50 +1.1 +4.8 +.68 +1.4 -2.1 +.86 +1.3 +2.9 +1.06 +2.1 +.1 +.98 +1.9 +2.9 -.14 -.5 -9.2 -2.52 -2.9 -19.1 +2.12 +2.8 +8.3 +1.82 +4.2 +17.6 -.92 -1.6 +2.8 +3.60 +10.0 -26.0 +.25 +1.2 +17.8 +.14 +.1 -3.3 +2.31 +3.3 +5.3 -.09 -3.1 -67.6 +1.40 +4.4 -4.3 -.51 -7.8 -19.3 -1.55 -3.2 -25.8 +1.79 +2.5 +1.6 +2.29 +5.0 -3.7 -.01 -.2 -14.2 -.25 -2.5 -10.8 +.20 +6.6 -48.6 -.13 -2.8 -31.4

DIV

dd ... 22 1.22f 17 1.00 25 ... 29 1.44f 19 .90f 19 .90f 16 1.00 dd ... 12 2.76 13 .25 16 2.52 dd ... 17 .40 26 1.42f 20 1.28 q ... q ... q ... 46 ... cc 1.40 56 ... 25 ... 21 .44 dd ... dd ...

D-E-F ... dd 15 dd 20 10 3 15 dd 15 q q q q q q q q 11 39 22 18 21 19 13 23 dd 21 19 dd dd 45 dd 20 24 17 21 cc dd 19 dd 21 19 dd dd 12 10 13 ... 30 dd 37 dd 17 31 30 11 80 33 26 24 11 29 ... 12 14 15 23 21 10 cc 92 10 27 22 15 12 ... 50 dd dd

.44f .62f .15 .20 .40f 2.04 .24 .25 .96f ... ... ... ... ... ... ... ... 1.19e .96f ... .86f ... 2.40f 1.04 1.48f ... ... 1.80 3.12 ... ... ... ... .46f .50f 1.96 1.42 .06e ... 1.72 ... .28 ... ... 3.74f .48 3.00 3.32 .46e .80 ... .20 ... 1.24 .60 ... 2.76f ... 1.00 .60 .72 .48 ... ... .32 ... 1.44 ... ... .50 ... ... .32 .48 ... .48 1.25a ... .40 ... ...

dd dd 14 21 16 20 63 19 14 14 ... dd 28 ... dd dd ... ... dd 10 13 16 16 11 19 13 dd ... ... 15 20 ... dd 22 10 dd 14 dd 27 38 7 12 21 44 14 dd

... ... .88f 1.92f 2.48f .88 .60f 1.64f 1.20 ... .13e ... ... 2.56e ... ... ... .02e .60 2.20 .20 ... ... 3.60e ... .16 ... .96e .14e ... 2.18 ... ... .60 .60 .01e ... ... 1.94 ... 1.00 .64f .70 .25e 1.20a ...

G-H-I

LAST

WK WK YTD CHG %CHG %CHG PE

NAME

TKR

HomeDp HomeAway HonwllIntl Hospira HostHotls HovnanE HudsCity HuntBncsh Huntsmn IAC Inter IAMGld g ICICI Bk iShBrazil iShEMU iShGerm iSh HK iShItaly iShJapan iShMexico iSTaiwn iSh UK iShSilver iShChinaLC iSCorSP500 iShEMkts iSh20 yrT iSh7-10yTB iS Eafe iShiBxHYB iShNsdqBio iShR2K iShREst iShHmCnst Illumina Incyte Infinera IngrmM InovioPhm IntgDv Intel InterMune IBM IntlGame IntPap Interpublic InvenSense Invesco InvBncp IronwdPh Isis IsoRay ItauUnibH

HD AWAY HON HSP HST HOV HCBK HBAN HUN IACI IAG IBN EWZ EZU EWG EWH EWI EWJ EWW EWT EWU SLV FXI IVV EEM TLT IEF EFA HYG IBB IWM IYR ITB ILMN INCY INFN IM INO IDTI INTC ITMN IBM IGT IP IPG INVN IVZ ISBC IRWD ISIS ISR ITUB

79.40 33.49 92.37 46.20 21.47 4.60 9.93 9.14 25.38 65.06 3.51 42.71 48.48 42.89 31.46 20.51 17.96 11.20 64.57 14.77 21.60 18.69 35.00 189.26 41.61 112.71 102.56 68.40 94.04 229.05 112.03 70.23 23.95 139.16 51.61 8.95 26.82 2.56 12.10 26.41 32.81 191.44 12.70 45.89 17.40 19.63 35.96 27.38 11.79 25.87 2.24 16.81

-3.6 -18.1 +1.1 +11.9 +10.4 -30.5 +5.3 -5.3 +3.2 -5.2 +5.4 +14.9 +8.5 +3.6 -.9 -.4 +15.2 -7.7 -5.0 +2.4 +3.4 -.1 -8.8 +1.9 -.4 +10.7 +3.3 +1.9 +1.2 +.9 -2.9 +11.3 -3.5 +25.8 +1.9 -8.5 +14.3 -11.7 +18.9 +1.8 +122.7 +2.1 -30.1 -6.4 -1.7 -5.5 -1.2 +7.0 +1.6 -35.1 +348.0 +24.0

21 cc 19 57 36 38 27 13 23 21 18 ... q q q q q q q q q q q q q q q q q q q q q 97 dd dd 14 dd 25 14 dd 13 14 15 26 93 16 27 dd dd dd ...

1.88f ... 1.80 ... .56f ... .16 .20 .50 .96 ... .75e 1.44e .92e .44e .61e .34e .13e 1.33e .26e .50e ... 1.02e 3.44e .86e 3.37e 2.17e 1.70e 6.01e .07e 1.45e 2.56e .04e ... ... ... ... ... ... .90 ... 4.40f .44 1.40 .38f ... 1.00f .20 ... ... ... .51r

JA Solar JDS Uniph JPMorgCh JacobsEng JanusCap JetBlue JohnJn JohnsnCtl JnprNtwk KB Home KBR Inc KKR KLA Tnc Kellogg KeyEngy Keycorp Kimco KindME KindMorg Kinross g KodiakO g KraftFGp Kroger L Brands LKQ Corp LSI Corp LamResrch LVSands Lattice LennarA Level3 LexRltyTr LibGlobA s LibGlobC s LibtyIntA LifeLock LillyEli LincNat Lindsay LinearTch LinkedIn LloydBkg Lorillard LaPac Lowes lululemn gs LyonBas A

JASO JDSU JPM JEC JNS JBLU JNJ JCI JNPR KBH KBR KKR KLAC K KEG KEY KIM KMP KMI KGC KOG KRFT KR LB LKQ LSI LRCX LVS LSCC LEN LVLT LXP LBTYA LBTYK LINTA LOCK LLY LNC LNN LLTC LNKD LYG LO LPX LOW LULU LYB

9.81 -.82 -7.7 +7.0 10.96 -2.15 -16.4 -15.6 55.58 -.12 -.2 -4.3 56.78 -5.32 -8.6 -9.9 12.18 +.16 +1.3 -1.5 8.20 +.28 +3.5 -4.0 99.31 -.48 -.5 +8.4 45.21 +.72 +1.6 -11.9 24.75 +.27 +1.1 +9.7 16.71 +.59 +3.7 -8.6 25.84 +.44 +1.7 -19.0 22.96 -.75 -3.2 -5.7 63.20 +.29 +.5 -2.0 65.60 -1.11 -1.7 +7.4 9.11 -.70 -7.1 +15.3 13.67 +.13 +1.0 +1.9 22.97 +.43 +1.9 +16.3 75.32 +.16 +.2 -6.6 32.72 +.14 +.4 -9.1 4.12 -.06 -1.4 -5.9 12.73 -.08 -.6 +13.6 56.20 -.46 -.8 +4.2 46.51 +1.36 +3.0 +17.7 54.60 +.76 +1.4 -11.7 29.26 +2.61 +9.8 -11.1 11.15 +.01 +.1 +1.0 57.52 +1.15 +2.0 +5.6 80.60 +3.60 +4.7 +2.2 8.18 -.55 -6.3 +49.0 39.88 +1.27 +3.3 +.8 43.00 +6.37 +17.4 +29.6 10.84 +.23 +2.2 +6.2 41.30 +1.30 +3.3 -9.1 39.73 +1.03 +2.7 -5.8 29.05 -.19 -.6 -1.0 14.37 -1.51 -9.5 -12.4 59.08 +.58 +1.0 +15.8 49.18 +1.67 +3.5 -4.7 89.33 -.08 -.1 +8.0 44.86 +.22 +.5 -1.5 147.73 -10.44 -6.6 -31.9 5.53 +.47 +9.3 +3.9 58.79 +4.67 +8.6 +16.0 16.73 +1.14 +7.3 -9.6 46.98 +.60 +1.3 -5.2 45.45 -.05 -.1 -23.0 92.40 +1.35 +1.5 +15.1

dd 27 14 18 20 17 19 16 28 23 17 10 18 13 dd 13 52 27 28 dd 22 12 16 18 27 53 20 29 55 18 cc dd dd ... ... 28 16 10 19 25 dd ... 18 14 22 24 13

... ... 1.60f ... .32f ... 2.80f .88 ... .10 .32 1.56e 1.80 1.84 ... .22 .90 5.52f 1.68f ... ... 2.10 .66 1.36f ... .12 .72 2.00f ... .16 ... .66 ... ... ... ... 1.96 .64 1.04f 1.08 ... ... 2.46f ... .72 ... 2.80f

MBIA MFA Fncl MGIC Inv MGM Rsts MRC Glbl Macys MagHRes Mallinck n Manitowoc MannKd MarathnO MarathPet MVJrGld rs MktVGold MV OilSvc MktVRus MarIntA MarshM MarvellT Masco MasterCd s Mattel MaximIntg McDrmInt McDnlds McKesson McEwenM MeadWvco Medtrnic MelcoCrwn Merck Meritor MerrimkP MetLife MKors MicronT Microsoft MitsuUFJ MobileTele Molycorp Mondelez Monsanto MonstrWw MorgStan Mosaic MotrlaSolu MurphO Mylan NCR Corp NII Hldg NQ Mobile NRG Egy NXP Semi Nabors

MBI 12.25 MFA 7.94 MTG 8.68 MGM 26.49 MRC 29.12 M 57.19 MHR 8.32 MNK 73.84 MTW 29.00 MNKD 6.35 MRO 36.54 MPC 95.75 GDXJ 36.62 GDX 24.32 OIH 52.06 RSX 22.29 MAR 59.09 MMC 48.46 MRVL 15.83 MAS 20.55 MA 73.78 MAT 39.56 MXIM 32.36 MDR 7.22 MCD 101.43 MCK 167.01 MUX 2.37 MWV 39.34 MDT 58.77 MPEL 36.45 MRK 58.22 MTOR 13.83 MACK 6.43 MET 51.89 KORS 93.21 MU 26.31 MSFT 39.69 MTU 5.51 MBT 16.47 MCP 4.76 MDLZ 35.48 MON 112.20 MWW 5.64 MS 30.69 MOS 49.93 MSI 65.51 MUR 61.21 MYL 49.82 NCR 30.25 NIHD .79 NQ 11.99 NRG 33.57 NXPI 61.78 NBR 25.86

+.02 +.17 -.28 +2.89 +.57 +.18 +.01 -.03 +.89 -.66 -.03 -.23 +1.77 +.60 +.53 +.14 +.24 +.18 +1.49 +.36 +.52 -.25 +.30 +1.81 +.79 +1.38 +.46 +1.00 -.20 +5.09 +.42 +1.22 +.59 -.55 +6.20 +.08 -.11 +.15 +.37 +.15 +3.14 +1.81 +.24 +.26 +.20 -1.07 +1.08 +1.04 +1.11 -6.87 +.06 +.44

... +.5 -.3 +6.7 +2.7 +4.1 +.1 -.3 +3.6 -1.0 -.8 -.5 +3.8 +1.4 +1.7 +.7 +1.4 +1.6 +2.4 +2.5 +2.5 -1.3 +.9 +1.0 +1.9 +1.2 +.5 +1.5 -.2 +2.3 +.4 +1.8 +2.5 -.4 +13.7 +.9 -.4 +6.2 +3.2 +.6 +10.6 +1.0 +1.9 +.6 +1.2 -5.2 +3.1 +3.9 +10.4 -21.0 +2.8 +2.7

DIV

J-K-L

M-N-0 +.33 -.01 +.30 +2.83 +.13 -.38 +.14 +6.85 -1.77 +.12 +.46 +5.02 -.82 -.14 -.22 +.55 +1.86 -.16 -.05 -.23 +3.12 +1.57 +.81 +.24 +.70 -.84 -.12 +1.22 +.56 +.87 +.98 +2.05 +1.96 +.80 +3.33 +1.05 -.22 +.18 +.30 -.04 +.14 +2.53 -.88 +.21 +.51 +3.01 -2.52 -2.28 -3.50 -.16 -1.24 +.55 +2.91 +1.13

+2.8 -.1 +3.6 +12.0 +.4 -.7 +1.7 +10.2 -5.8 +1.9 +1.3 +5.5 -2.2 -.6 -.4 +2.5 +3.3 -.3 -.3 -1.1 +4.4 +4.1 +2.6 +3.4 +.7 -.5 -4.8 +3.2 +1.0 +2.4 +1.7 +17.4 +43.8 +1.6 +3.7 +4.2 -.6 +3.4 +1.9 -.8 +.4 +2.3 -13.5 +.7 +1.0 +4.8 -4.0 -4.4 -10.4 -16.9 -9.4 +1.7 +4.9 +4.6

+2.6 +12.5 +2.8 +12.6 -9.7 +7.1 +13.8 +41.3 +24.4 +22.1 +3.5 +4.4 +17.9 +15.1 +8.3 -22.8 +19.7 +.2 +10.1 -9.7 -11.7 -16.9 +16.0 -21.2 +4.5 +3.5 +20.9 +6.5 +2.4 -7.1 +16.3 +32.6 +20.6 -3.8 +14.8 +21.0 +6.1 -17.5 -23.9 -15.3 +.5 -3.7 -20.9 -2.1 +5.6 -2.9 -5.7 +14.8 -11.2 -71.3 -18.4 +16.9 +34.5 +52.2

10 ... 10 .80 38 ... dd ... 23 ... 15 1.00 dd ... ... ... 28 .08 dd ... 14 .76 19 1.68 q ... q .19e q .54e q .74e 27 .68 20 1.00 24 .24 27 .30 28 .44 15 1.52 24 1.04 13 ... 18 3.24 34 .96 dd ... 8 1.00a 17 1.12 58 .34e 39 1.76 92 ... dd ... 15 1.40f 42 ... 11 ... 15 1.12 ... ... ... .94e dd ... 16 .56 22 1.72 dd ... 18 .40f 20 1.00 17 1.24 12 1.25b 32 ... 13 ... dd ... dd ... dd .56f ... ... 55 .16

LAST

WK WK YTD CHG %CHG %CHG PE

NAME

TKR

NBGrce rs NOilVarco Navient n NetApp Netflix NeuStar NwGold g NewOriEd NewResd n NY CmtyB Newcastle NewellRub NewfldExp NewLead rs NewmtM NewsCpA n NextEraEn NiSource NielsenH NikeB NobleCorp NokiaCp NA Pall g NorthropG NStarRlt NorwCruis Novavax NuanceCm Nvidia OGE Egy s OcciPet Och-Ziff OcwenFn OfficeDpt Oi SA C Oi SA OnSmcnd ONEOK Oracle Orexigen Organovo OtterTail

NBG 3.92 -.11 -2.7 -30.0 NOV 79.40 -4.07 -4.9 -.2 NAVI 16.95 +.06 +.4 -.2 NTAP 35.54 +.54 +1.5 -13.6 NFLX 340.65 +18.57 +5.8 -7.5 NSR 26.63 -.95 -3.4 -46.6 NGD 5.19 +.08 +1.6 -1.0 EDU 25.50 -.48 -1.8 -19.0 NRZ 6.25 +.10 +1.6 -6.4 NYCB 15.46 -.39 -2.5 -8.2 NCT 4.47 +.02 +.4 -7.5 NWL 28.88 -1.21 -4.0 -10.9 NFX 33.73 +1.98 +6.2 +36.9 NEWL .08 -.05 -38.5 -99.5 NEM 24.72 -1.73 -6.5 +7.3 NWSA 17.31 +.18 +1.1 -3.9 NEE 97.99 +.32 +.3 +14.4 NI 36.24 +.42 +1.2 +10.2 NLSN 46.99 +1.00 +2.2 +2.4 NKE 72.99 +.29 +.4 -7.2 NE 30.80 -.69 -2.2 -17.8 NOK 7.35 +.08 +1.1 -9.4 PAL .26 -.04 -14.7 -60.8 NOC 120.73 +1.74 +1.5 +5.3 NRF 16.07 +.04 +.2 +19.5 NCLH 32.50 +1.53 +4.9 -8.4 NVAX 4.33 +.44 +11.3 -15.4 NUAN 16.41 +.11 +.7 +8.0 NVDA 18.43 -.30 -1.6 +15.0 OGE 36.30 -.82 -2.2 +7.1 OXY 94.44 -1.93 -2.0 -.7 OZM 11.86 -1.07 -8.3 -19.9 OCN 34.55 -2.67 -7.2 -37.7 +.10 +2.4 -19.7 ODP 4.25 OIBR/C 1.02 -.14 -12.1 -37.8 OIBR 1.05 -.06 -5.4 -34.0 ONNN 8.88 -.57 -6.0 +7.8 OKE 63.18 +1.05 +1.7 +16.1 ORCL 40.81 +1.36 +3.4 +6.7 OREX 5.52 -.07 -1.2 -2.0 ONVO 5.95 +.40 +7.2 -46.3 OTTR 28.61 -.84 -2.9 -2.3

PBF Engy PDL Bio PG&E Cp PMC Sra PNC PPL Corp Paccar PacEthn rs Pandora PattUTI Paychex PeabdyE PennVa Penney PeopUtdF PepcoHold PepsiCo PetrbrsA Petrobras Pfizer Pharmacyc PhilipMor Phillips66 PitnyBw PlugPowr h Polycom PolyOne Potash PS SrLoan PwShs QQQ PrecDrill ProLogis ProShtS&P ProUltQQQ ProUltSP Pro7-10yrT PrUPQQQ s ProUltR2K PUVixST rs ProctGam ProgsvCp ProUShSP PUShQQQ rs ProUShL20 PUSR2K rs PShtQQQ rs PUShSPX rs ProspctCap Prudentl PSEG PulteGrp QEP Res Qihoo360 QlikTech Qualcom QuantaSvc Questcor QksilvRes RF MicD Rackspace RadianGrp RadioShk RangeRs RJamesFn Raytheon Realogy RltyInco RegionsFn Rentech RexahnPh ReynAmer RioTinto RiteAid Rowan RoyDShllB RoyDShllA

PBF 32.01 PDLI 8.46 PCG 44.53 PMCS 7.04 PNC 84.73 PPL 33.80 PCAR 63.29 PEIX 13.74 P 24.31 PTEN 33.07 PAYX 41.40 BTU 18.82 PVA 16.58 JCP 8.58 PBCT 14.38 POM 26.98 PEP 85.52 PBR/A 15.79 PBR 14.61 PFE 30.75 PCYC 88.13 PM 85.38 PSX 83.53 PBI 26.41 PLUG 4.50 PLCM 12.34 POL 38.81 POT 36.57 BKLN 24.78 QQQ 87.49 PDS 13.14 PLD 40.79 SH 24.48 QLD 98.62 SSO 106.22 UST 52.82 TQQQ 60.44 UWM 79.60 UVXY 53.46 PG 81.92 PGR 24.80 SDS 27.90 QID 58.19 TBT 62.44 TWM 49.02 SQQQ 54.24 SPXU 54.71 PSEC 10.79 PRU 82.05 PEG 38.89 PHM 18.71 QEP 30.25 QIHU 88.38 QLIK 22.34 QCOM 78.99 PWR 34.63 QCOR 83.05 KWK 3.33 RFMD 8.65 RAX 28.13 RDN 14.27 RSH 1.35 RRC 89.97 RJF 49.74 RTN 95.83 RLGY 42.66 O 43.21 RF 10.24 RTK 2.28 RNN .85 RAI 55.94 RIO 54.61 RAD 7.87 RDC 31.29 RDS/B 85.20 RDS/A 79.43

SLM Cp SpdrDJIA SpdrGold SpdrEuro50 S&P500ETF SpdrHome SpdrLehHY SpdrS&P RB SpdrRetl SpdrOGEx SABESP StJude Salesforce SallyBty SanDisk SandRdge Schlmbrg Schwab SeadrillLtd SeagateT SealAir SenHous Sequenom ServcNow SvcSource SiderurNac SilvWhtn g Sina SiriusXM SkywksSol SmithWes Smucker SolarCity Sonus SouFun s

SLM DIA GLD FEZ SPY XHB JNK KRE XRT XOP SBS STJ CRM SBH SNDK SD SLB SCHW SDRL STX SEE SNH SQNM NOW SREV SID SLW SINA SIRI SWKS SWHC SJM SCTY SONS SFUN

DIV

... 14 ... 22 cc 11 58 34 ... 14 14 18 27 ... dd ... 21 21 23 25 9 ... ... 14 dd 27 dd dd 25 17 13 8 15 dd ... ... 20 47 17 dd dd 21

... 1.04 ... .60 ... ... ... .35e .70a 1.00 .40b .68f ... ... .10m ... 2.90f 1.00 1.00f .96 1.50 .51e ... 2.44 1.00f ... ... ... .34 .90 2.88 1.74e ... ... .45e .45e ... 2.24f .48 ... ... 1.21f

+1.7 +.2 +10.6 +9.5 +9.2 +12.3 +7.0 +169.9 -8.6 +30.6 -9.1 -3.6 +75.8 -6.2 -4.9 +41.0 +3.1 +7.5 +6.0 +.4 -16.7 -2.0 +8.3 +13.3 +190.3 +9.9 +9.8 +11.0 -.4 -.5 +40.2 +10.4 -3.0 -1.0 +3.6 +6.4 -2.6 -6.5 -20.4 +.6 -9.1 -5.9 -3.0 -21.2 +1.9 -5.5 -9.2 -3.8 -11.0 +21.4 -8.1 -1.3 +7.7 -16.1 +6.4 +9.7 +52.5 +8.5 +67.6 -28.1 +1.1 -48.1 +6.7 -4.7 +5.7 -13.8 +15.8 +3.5 +30.3 +66.7 +11.9 -3.2 +55.5 -11.5 +13.4 +11.4

14 5 22 dd 11 13 19 dd dd 29 25 94 dd dd 19 24 20 ... ... 15 cc 17 16 46 dd dd 15 20 ... q 19 cc q q q q q q q 22 13 q q q q q q ... dd 15 3 36 cc dd 20 19 14 4 51 47 dd dd 66 17 16 12 51 13 dd dd 19 ... 36 15 11 10

1.20 .60 1.82 ... 1.92f 1.49f .88f ... ... .40 1.40 .34 ... ... .66f 1.08 2.27 .85e .46e 1.04 ... 3.76 1.56 .75 ... ... .32 1.40 1.01e 1.30e .24 1.32 ... ... .25e .77e ... ... ... 2.57f 1.00e ... ... ... ... ... ... 1.32 2.12 1.48 .20 .08 ... ... 1.68f ... 1.20 ... ... ... .01 ... .16 .64 2.42f ... 2.19 .20f ... ... 2.68f 1.94e ... .40 3.76f 3.76f

-.29 -3.1 -4.4 +1.40 +.9 -.4 -.37 -.3 +7.7 +.66 +1.5 +3.0 +1.77 +1.0 +1.8 +.75 +2.4 -4.6 -.05 -.1 +1.6 -.23 -.6 -5.1 +1.71 +2.1 -4.7 +.76 +1.0 +12.8 +.41 +4.3 -12.4 +2.26 +3.6 +3.7 -.36 -.7 -5.0 -1.86 -6.9 -16.4 +1.52 +1.8 +21.4 +.15 +2.3 +12.2 -.72 -.7 +12.1 -.15 -.6 +2.7 -.44 -1.3 -16.4 -1.68 -3.2 -9.1 +.68 +2.1 -2.5 -.02 -.1 +5.4 +.30 +11.5 +23.9 +3.95 +8.4 -8.6 -2.02 -32.5 -49.9 +.07 +1.8 -34.8 +.11 +.5 +11.8 ... ... -42.8 +.12 +3.7 -7.3 -.03 -.1 +45.1 +1.85 +13.2 +17.7 +.92 +1.0 -6.4 -1.17 -2.1 -4.6 +.11 +3.6 +1.0 +.13 +1.0 -23.6

3 q q q q q q q q q ... 24 dd 17 18 dd 19 32 15 11 37 24 dd dd dd ... 22 dd 54 25 11 18 ... dd 18

... 3.57e ... 1.16e 3.48e .11e 2.92e .58e .61e .54e .31e 1.08 ... ... .90 ... 1.60 .24 3.92f 1.72 .52 1.56 ... ... ... .55e .38e ... ... .44 ... 2.32 ... ... .20e

P-Q-R +3.09 +.07 -.97 -.03 +.86 +.25 -2.37 -.89 +.80 +.85 +1.01 +.82 -.29 +.60 +.17 +5.13 +.27 +1.52 +1.11 ... -.57 +1.27 +.94 +1.58 -.87 +.02 +1.13 +.85 +.13 +1.30 +.58 +.06 -.24 +2.91 +1.92 +.72 +2.68 +.50 -4.90 +.51 +1.01 -.55 -1.84 -1.93 -.36 -2.54 -1.58 -.04 +1.37 -1.35 +.27 -.93 -.91 +.22 +1.38 -.57 +1.55 +.26 +.66 -.82 +.38 -.12 -1.76 -.01 +.93 +.81 +.50 +.09 +.18 -.17 +.84 -.45 +.88 ... +4.62 +3.97

+10.7 +.8 -2.1 -.4 +1.0 +.7 -3.6 -6.1 +3.4 +2.6 +2.5 +4.6 -1.7 +7.5 +1.2 +23.5 +.3 +10.7 +8.2 ... -.6 +1.5 +1.1 +6.4 -16.2 +.2 +3.0 +2.4 +.5 +1.5 +4.6 +.1 -1.0 +3.0 +1.8 +1.4 +4.6 +.6 -8.4 +.6 +4.2 -1.9 -3.1 -3.0 -.7 -4.5 -2.8 -.4 +1.7 -3.4 +1.5 -3.0 -1.0 +1.0 +1.8 -1.6 +1.9 +8.5 +8.3 -2.8 +2.7 -8.2 -1.9 ... +1.0 +1.9 +1.2 +.9 +8.6 -16.7 +1.5 -.8 +12.6 ... +5.7 +5.3

S-T-U 8.98 164.75 125.06 43.45 188.06 31.76 41.22 38.55 83.98 77.28 9.93 64.23 52.44 25.27 85.64 6.81 101.03 26.70 34.33 51.04 33.20 23.43 2.90 51.18 4.20 4.04 22.58 48.15 3.24 41.43 15.88 96.94 54.23 3.18 12.59

LAST

WK WK YTD CHG %CHG %CHG PE

NAME

TKR

SouthnCo SwstAirl SwstnEngy SpectraEn Splunk Sprint n SP Matls SP HlthC SP CnSt SP Consum SP Engy SPDR Fncl SP Inds SP Tech SP Util StdPac Staples Starbucks StarwdHtl StarwdPT StateStr StlDynam StillwtrM StratHotels Suncor gs SunEdison SunPower SunstnHtl SunTrst Supvalu SwftEng SwiftTrans Symantec SynrgyPh Synovus SynthBiol Sysco T-MobileUS TD Ameritr TECO TJX TableauA n TaiwSemi TalismE g Target TeckRes g Teradyn Terex TeslaMot Tesoro TevaPhrm TexInst Textron 3D Sys 3M Co TibcoSft TW Cable TimeWarn TollBros Total SA TotalSys Toyota Transocn Travelers TrinaSolar Trinity TripAdvis TriQuint Trulia TurqHillRs 21stCFoxA 21stCFoxB Twitter n TwoHrbInv TycoIntl Tyson US Silica USG UltraPt g Umpqua UndArmr s UnionPac UtdContl UPS B US Bancrp US NGas US OilFd USSteel UtdTech UtdhlthGp

SO LUV SWN SE SPLK S XLB XLV XLP XLY XLE XLF XLI XLK XLU SPF SPLS SBUX HOT STWD STT STLD SWC BEE SU SUNE SPWR SHO STI SVU SFY SWFT SYMC SGYP SNV SYN SYY TMUS AMTD TE TJX DATA TSM TLM TGT TCK TER TEX TSLA TSO TEVA TXN TXT DDD MMM TIBX TWC TWX TOL TOT TSS TM RIG TRV TSL TRN TRIP TQNT TRLA TRQ FOXA FOX TWTR TWO TYC TSN SLCA USG UPL UMPQ UA UNP UAL UPS USB UNG USO X UTX UNH

Vale SA Vale SA pf ValeantPh ValeroE Valmont VangREIT VangEmg VangEur VangFTSE VantageDrl Verisign VerizonCm ViacomB VimpelCm Visa Vivus VMware Vodafone Vonage WPX Engy WalMart Walgrn WalterEn WsteMInc WeathfIntl Weibo n WtWatch WellPoint WellsFargo Wendys Co WernerEnt WestCorp WestarEn WDigital WstnUnion WstptInn g Weyerhsr WholeFd s WmsCos WillisGp Windstrm WiscEngy WisdomTr WTJpHedg WT India Workday Wynn XOMA XcelEngy Xerox Xilinx YY Inc Yahoo Yamana g Yandex Yelp YingliGrn YoukuTud YumBrnds Zillow Zimmer ZionsBcp Zoetis Zogenix Zynga

VALE 13.57 +.06 +.4 -11.0 VALE/P 12.29 +.04 +.3 -12.3 VRX 136.35 +2.62 +2.0 +16.1 VLO 57.91 +1.24 +2.2 +14.9 VMI 150.34 +5.27 +3.6 +.8 VNQ 73.23 +1.16 +1.6 +13.4 VWO 41.24 +.78 +1.9 +.2 VGK 60.43 +1.04 +1.8 +2.8 VEA 42.00 +.60 +1.4 +.8 VTG 1.66 -.10 -5.7 -9.8 VRSN 48.42 +1.27 +2.7 -19.0 VZ 47.12 +1.18 +2.6 -4.1 VIAB 84.15 +.71 +.9 -3.7 VIP 8.28 +.09 +1.1 -36.0 V 204.42 +5.49 +2.8 -8.2 VVUS 5.26 +.07 +1.3 -42.1 VMW 93.68 +.81 +.9 +4.4 VOD 37.49 +.82 +2.2 -6.2 VG 4.22 +.55 +15.0 +26.7 WPX 21.57 +.54 +2.6 +5.8 WMT 79.12 +.50 +.6 +.5 WAG 68.86 +2.21 +3.3 +19.9 WLT 7.23 -.19 -2.6 -56.5 WM 44.14 +1.10 +2.6 -1.6 WFT 20.77 +.30 +1.5 +34.1 WB 20.03 +.82 +4.3 -1.0 WTW 23.24 +2.73 +13.3 -29.4 WLP 100.87 +4.87 +5.1 +9.2 WFC 49.58 +.53 +1.1 +9.2 WEN 8.42 +.14 +1.7 -3.4 WERN 25.51 +.02 +.1 +3.4 WSTC 23.84 -.57 -2.3 -7.3 WR 35.18 -.90 -2.5 +9.4 WDC 83.68 -4.09 -4.7 -.3 WU 16.31 +.76 +4.9 -5.4 WPRT 16.07 +3.13 +24.2 -18.1 WY 29.94 +.42 +1.4 -5.2 WFM 49.65 -1.00 -2.0 -14.1 WMB 42.84 +1.58 +3.8 +11.1 WSH 41.22 -1.89 -4.4 -8.0 WIN 9.14 +.29 +3.3 +14.5 WEC 47.78 -.85 -1.7 +15.6 WETF 11.21 +.24 +2.2 -36.7 DXJ 46.38 +.33 +.7 -8.8 EPI 19.20 +.19 +1.0 +10.1 WDAY 75.73 +8.12 +12.0 -8.9 WYNN 221.68 +20.19 +10.0 +14.1 XOMA 4.30 +.34 +8.6 -36.1 XEL 31.19 -.76 -2.4 +11.6 XRX 12.03 +.29 +2.5 -1.2 XLNX 46.37 -1.43 -3.0 +1.0 YY 60.62 -2.59 -4.1 +20.6 YHOO 36.87 +2.39 +6.9 -8.8 AUY 7.46 -.13 -1.7 -13.5 YNDX 26.53 +2.53 +10.5 -38.5 YELP 59.76 +2.13 +3.7 -13.3 YGE 3.25 -.43 -11.7 -35.6 YOKU 22.04 -2.10 -8.7 -27.3 YUM 76.20 -1.47 -1.9 +.8 Z 106.86 +14.09 +15.2 +30.7 ZMH 98.11 -2.43 -2.4 +5.3 ZION 28.84 -.16 -.6 -3.7 ZTS 30.64 +.48 +1.6 -6.3 ZGNX 2.48 -.23 -8.5 -27.9 ZNGA 3.86 -.22 -5.4 +1.6

DIV

44.18 -1.55 -3.4 +7.5 18 2.10f 24.18 +.23 +1.0 +28.3 22 .16 47.10 -.69 -1.4 +19.8 83 ... 39.41 +.44 +1.1 +10.6 24 1.34 54.87 -.73 -1.3 -20.1 dd ... 8.70 +.88 +11.3 -19.1 dd ... 47.55 +.39 +.8 +2.9 q .99e 57.75 +.36 +.6 +4.2 q .84e 44.20 +.41 +.9 +2.8 q 1.05e 64.25 +.81 +1.3 -3.9 q .82e 93.72 +.49 +.5 +5.9 q 1.59e 21.99 +.14 +.6 +.6 q .34e 52.82 +.31 +.6 +1.1 q .91e 36.39 +.64 +1.8 +1.8 q .64e 42.50 -.61 -1.4 +11.9 q 1.47e 8.10 +.12 +1.5 -10.5 16 ... 12.62 +.33 +2.7 -20.6 13 .48 70.60 -.85 -1.2 -9.9 29 1.04 78.99 +3.99 +5.3 -.6 27 1.40a 24.05 +.88 +3.8 +7.7 14 1.92f 65.36 +1.57 +2.5 -10.9 14 1.04 18.48 +.10 +.5 -5.4 24 .46f 15.44 -.60 -3.7 +25.1 34 ... 10.75 +.61 +6.0 +13.8 dd ... 39.33 +2.23 +6.0 +12.2 12 .92 20.23 +.46 +2.3 +55.0 dd ... 33.98 -.20 -.6 +14.0 23 ... 14.46 +.65 +4.7 +7.9 50 .20 38.32 -.12 -.3 +4.1 13 .80f 7.12 +.01 +.1 -2.3 10 ... 11.21 -.06 -.5 -17.0 dd ... 23.71 +.33 +1.4 +6.8 24 ... 20.37 +.09 +.4 -13.6 17 .60 4.30 -.47 -9.9 -23.6 dd ... 3.26 +.06 +1.9 -9.4 20 .04 1.30 -1.54 -54.2 -15.0 dd ... 36.21 +.17 +.5 +.3 22 1.16 32.00 +2.95 +10.2 -4.9 dd ... 31.86 -.51 -1.6 +4.0 23 .48a 17.80 -.58 -3.2 +3.2 18 .88 58.38 +.24 +.4 -8.4 20 .70f 58.46 +2.23 +4.0 -15.2 ... ... 19.62 -.29 -1.5 +12.5 ... .50e 10.21 -.34 -3.2 -12.4 ... .27 62.01 +.75 +1.2 -2.0 20 1.72 23.12 +.64 +2.8 -11.1 ... .90 17.76 +.44 +2.5 +.8 27 .24 40.87 -.72 -1.7 -2.7 20 .20 210.91 +11.06 +5.5 +40.2 dd ... 55.86 +.86 +1.6 -4.5 18 1.00 49.86 +1.17 +2.4 +24.4 100 1.34e 45.78 -.26 -.6 +4.3 24 1.20 39.05 -.21 -.5 +6.2 24 .08 48.49 -1.15 -2.3 -47.8 cc ... 140.12 +3.56 +2.6 -.1 20 3.42f 19.34 -.01 -.1 -14.0 37 ... 142.13 +2.72 +2.0 +4.9 20 3.00f 66.20 +1.00 +1.5 -5.0 15 1.27f 35.40 +1.13 +3.3 -4.3 30 ... 70.47 +1.97 +2.9 +15.0 ... 3.19e 32.33 +2.54 +8.5 -2.9 24 .40 109.93 +3.44 +3.2 -9.8 ... 2.54e 42.99 +.11 +.3 -13.0 cc 2.24 91.00 +2.69 +3.0 +.5 9 2.20f 11.29 -1.17 -9.4 -17.4 dd ... 76.28 +3.17 +4.3 +39.9 12 .60 82.60 +5.21 +6.7 -.3 59 ... 14.37 +.90 +6.7 +72.3 dd ... 34.34 +2.68 +8.5 -2.6 dd ... 3.91 +.08 +2.1 +18.5 dd ... 32.52 -.12 -.4 -7.5 ... .25 31.78 ... ... -8.2 11 .25 39.02 -2.59 -6.2 -38.7 ... ... 10.33 +.14 +1.4 +11.3 10 1.11e 40.81 -.48 -1.2 -.6 dd .72 42.65 +.22 +.5 +27.5 18 .30 46.73 +5.81 +14.2 +37.0 33 .50 30.86 +1.31 +4.4 +8.7 43 ... 29.62 +.22 +.7 +36.8 14 ... 16.29 -.72 -4.2 -14.9 20 .60a 48.84 +.42 +.9 +11.9 63 ... 188.00 +.22 +.1 +11.9 19 3.64f 40.72 +1.31 +3.3 +7.6 39 ... 98.56 +1.16 +1.2 -6.2 22 2.68f 40.39 +.17 +.4 ... 13 .92 25.99 +.17 +.7 +25.6 q ... 36.29 -.31 -.8 +2.7 q ... 26.34 -.17 -.6 -10.7 dd .20 116.52 -.69 -.6 +2.4 19 2.36 75.03 -.63 -.8 -.4 14 1.12

V-W-X-Y-Z ... ... dd 11 16 q q q q 33 12 11 16 dd 24 dd 39 ... 47 dd 16 24 dd cc dd ... 7 13 12 77 22 11 15 20 11 dd 26 33 52 dd 20 18 30 q q dd 30 dd 16 13 21 ... 31 37 ... dd dd dd 30 dd 20 17 30 dd dd

.84e .78e ... 1.00 1.00 2.67e 1.20e 2.28e 1.36e ... ... 2.12 1.20 .45e 1.60 ... ... ... ... ... 1.92f 1.26 .04 1.50f ... ... ... 1.75 1.40f .20 .20 .90 1.40f 1.20 .50 ... .88 .48 1.61f 1.20 1.00 1.56 ... 1.24e .16e ... 5.00 ... 1.20f .25f 1.16f ... ... .15 ... ... ... ... 1.48 ... .88f .16 .29 ... ...

Stock Footnotes: Stock Footnotes: cld - Issue has been called for redemption by company. d - New 52-week low. ec - Company formerly listed on the American Exchange's Emerging Company Marketplace. g - Dividends and earnings in Canadian dollars. h - Does not meet continued-listing standards. lf - Late filing with SEC. n - Stock was a new issue in the last year. The 52-week high and low figures date only from the beginning of trading. pf - Preferred stock issue. pr - Preferences. pp - Holder owes installments of purchase price. rt - Right to buy security at a specified price. rs - Stock has undergone a reverse stock split of at least 50% within the past year. s - Stock has split by at least 20 percent within the last year. wi - Trades will be settled when the stock is issued. wd - When distributed. wt - Warrant, allowing a purchase of a stock. u - New 52-week high. un - Unit,, including more than one security. vj - Company in bankruptcy or receivership, or being reorganized under the bankruptcy law. Appears in front of the name. Dividend Footnotes: a - Extra dividends were paid, but are not included. b - Annual rate plus stock. c - Liquidating dividend. e - Amount declared or paid in last 12 months. f - Current annual rate, which was increased by most recent dividend announcement. i - Sum of dividends paid after stock split, no regular rate. j - Sum of dividends paid this year. Most recent dividend was omitted or deferred. k - Declared or paid this year, a cumulative issue with dividends in arrears. m - Current annual rate, which was decreased by most recent dividend announcement. p - Initial dividend, annual rate not known, yield not shown. r - Declared or paid in preceding 12 months plus stock dividend. t - Paid in stock, approximate cash value on ex-distribution date. PE Footnotes: q - Stock is a closed-end fund - no P/E ratio shown. cc - P/E exceeds 99. dd - Loss in last 12 months. Source: The Associated Press. Sales figures are unofficial.

Mutual Funds NAME

1WK YTD NAV %RTN %RTN

AMG YacktmanSvc d 23.85 YkmFcsSvc d 25.52 AQR 9.88 MaFtStrI AllianzGI NFJAllCpValIns 16.55 American Beacon 29.74 LgCpVlIs American Century 8.91 EqIncInv 25.22 HeritInv 32.88 InvGrInv 33.62 UltraInv American Funds 28.12 AMCAPA m 24.77 BalA m BondA m 12.70 CapIncBuA m 59.94 CapWldBdA m 20.89 CpWldGrIA m 46.56 FnInvA m 51.65 GlbBalA m 31.30 GrthAmA m 43.09 11.50 HiIncA m IncAmerA m 21.35 IntBdAmA m 13.53 IntlGrInA m 36.22 InvCoAmA m 37.79 MutualA m 35.44 NewEconA m 38.26 NewPerspA m 37.54 NwWrldA m 59.58 SmCpWldA m 48.64 TaxEBdAmA m 12.84 WAMutInvA m 40.27 Artisan 30.18 Intl d IntlVal d 37.49 MdCpVal 27.13 MidCap 45.83 BBH 21.92 TaxEffEq d Baron 70.69 Growth b SmCap b 33.58 Bernstein DiversMui 14.47 IntDur 13.68 16.79 TxMIntl BlackRock EqDivI 24.62 GlobAlcI 21.65 HiYldBdIs 8.34 StrIncIns 10.32 Causeway 16.42 IntlVlIns d Cohen & Steers Realty 71.00

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NAME

1WK YTD NAV %RTN %RTN

Columbia AcornIntZ 47.47 AcornZ 36.46 DivIncZ 18.64 DivOppA m 10.46 StLgCpGrZ 18.44 Credit Suisse ComStrInstl 7.80 DFA 1YrFixInI 10.32 2YrGlbFII 10.01 5YrGlbFII 10.96 EmMkCrEqI 19.83 EmMktValI 27.80 EmMtSmCpI 21.08 EmgMktI 26.19 IntCorEqI 13.20 IntSmCapI 21.63 IntlSCoI 20.13 IntlValuI 20.09 RelEstScI 29.61 TAUSCrE2I 13.56 USCorEq1I 16.80 USCorEq2I 16.58 USLgCo 14.85 USLgValI 32.28 USMicroI 19.55 USSmValI 35.22 USSmallI 30.37 USTgtValInst 22.92 Davis NYVentA m 41.61 Dodge & Cox Bal 99.61 GlbStock 12.06 Income 13.85 IntlStk 44.99 Stock 170.98 Dreyfus AppreciaInv 53.86 Driehaus ActiveInc 10.77 Eaton Vance FltgRtI 9.13 FMI LgCap 21.39 FPA Cres d 33.54 NewInc d 10.28 Fairholme Funds Fairhome d 40.80 Federated StrValI 6.16 Fidelity AstMgr20 x 13.53 AstMgr50 17.89 Bal 23.14 BlChGrow 63.49 CapApr 35.75

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+.5

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NAME

1WK YTD NAV %RTN %RTN

CapInc d 10.11 Contra 94.04 DivGrow 35.86 DivrIntl d 36.95 EqInc 60.08 EqInc II 24.93 Europe d 40.33 FF2015 x 12.50 FF2035 x 13.04 FF2040 x 9.19 Fidelity 42.99 FltRtHiIn d 9.96 FrdmK2010 14.28 FrdmK2015 14.48 FrdmK2020 15.12 FrdmK2025 15.75 FrdmK2030 16.07 FrdmK2035 16.57 FrdmK2040 16.67 FrdmK2045 17.00 FrdmK2050 17.07 Free2010 x 15.30 Free2020 x 15.21 Free2025 x 12.97 Free2030 x 15.88 GNMA 11.49 GrowCo 118.79 GrowInc 28.20 HiInc d 9.46 Indepndnc 37.51 IntMuniInc d 10.42 IntlDisc d 39.95 InvGrdBd 7.86 LevCoSt d 44.20 LowPriStk d 50.11 Magellan x 87.59 MidCap d 40.48 MuniInc d 13.19 NewMktIn d 16.25 OTC 76.06 Puritan 21.56 SASEqF 14.10 SEMF 17.39 SesInmGrdBd 11.37 ShTmBond 8.60 SmCapDisc d 30.79 StratInc 11.13 TotalBd 10.68 USBdIdxInv 11.61 Value 107.73 Fidelity Advisor NewInsI 26.94 StratIncA m 12.42 Fidelity Select Biotech d 179.62 HealtCar d 188.88 Fidelity Spartan 500IdxAdvtg 66.76 ExtMktIdAg d 52.86 IntlIdxAdg d 41.38

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NAME

1WK YTD NAV %RTN %RTN

TotMktIdAg d 55.07 Fidelity¬Æ SerBlueChipGrF 10.65 SeriesGrowthCoF10.53 First Eagle GlbA m 55.28 FrankTemp-Frank Fed TF A m 12.20 FrankTemp-Franklin CA TF A m 7.27 GrowthA m 66.87 HY TF A m 10.30 HighIncA m 2.13 IncomeA m 2.52 NY TF A m 11.51 RisDvA m 49.05 StrIncA m 10.58 USGovA m 6.53 FrankTemp-Mutual DiscovA m 34.22 QuestZ 18.91 Shares Z 29.39 FrankTemp-Templeton Fgn A m 8.49 GlBondAdv 13.06 GrowthA m 25.91 WorldA m 19.91 Franklin Templeton FndAllA m 13.95 Franklin Templeton I GlTlRtAdv 13.41 GE S&SUSEq 55.84 GMO EmgMktsVI d 10.62 IntItVlIV 27.21 QuIII 25.67 USCorEqVI 17.54 Goldman Sachs HiYieldIs d 7.25 MidCpVaIs 46.06 SmCpValIs 56.34 Harbor Bond 12.14 CapApInst 55.47 IntlInstl 73.31 Hartford CapAprA m 46.84 CpApHLSIA 60.40 INVESCO CharterA m 22.63 ComstockA m 24.24 DivDivA m 17.61 EqIncomeA m 10.87 GrowIncA m 27.46 HiYldMuA m 9.60 IVA WorldwideI d 18.31

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-.4 -.5

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+.8

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+.5 +2.7

NAME

1WK YTD NAV %RTN %RTN

Ivy AsstStrgI 31.51 +.3 HiIncA m 8.72 +.1 JPMorgan CoreBondSelect 11.68 +.4 HighYldSel 8.10 +.2 LgCapGrSelect 30.95 +1.5 MidCpValI 36.33 +1.5 ShDurBndSel 10.91 +.1 USEquityI 14.23 +.7 USLCpCrPS 28.05 +.8 Janus BalT 30.44 +.7 ContrT 21.92 +2.2 GlbSelT 12.90 +1.3 PerkinsMCVT 23.82 +.6 John Hancock DisValMdCpI 18.55 +.7 LifAg1 b 16.06 +1.1 LifBa1 b 15.54 +.8 LifGr1 b 16.26 +.9 Lazard EmgMkEqInst d 18.82 +1.2 Legg Mason CBAggressGrthA m188.39+.3 WACorePlusBdI 11.52 +.4 Longleaf Partners LongPart 34.66 +1.6 SmCap 34.31 +1.9 Loomis Sayles BdInstl 15.61 +.7 Lord Abbett AffiliatA m 15.89 +.7 BondDebA m 8.29 +.3 ShDurIncA m 4.55 +.1 MFS GrowA m 64.50 +1.4 IsIntlEq 22.66 +1.2 TotRetA m 17.91 +.9 ValueI 33.52 +1.1 MainStay HiYldCorA m 6.12 +.2 Mktfield 17.87 +.2 SelEqI 49.86 +.7 Mairs & Power GrthInv 111.95 +.9 Manning & Napier WrldOppA 9.32 +1.1 Merger InvCl b 16.19 +.4 Metropolitan West TotRetBdI 10.77 +.4 Morgan Stanley MdCpGrI 42.42 +1.0 Munder Funds MdCpCrGrY 43.28 +1.5 Natixis LSInvBdY 12.28 +.7

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NAME

1WK YTD NAV %RTN %RTN

Neuberger Berman GenesisInstl 59.50 +.4 -3.9 Northern HYFixInc d 7.63 +.2 +3.9 IntlIndex d 12.62 +1.5 +2.3 StkIdx 23.30 +.3 +2.5 Nuveen HiYldMunI 16.49 +.3 +9.6 Oakmark EqIncI 33.25 +.5 +1.8 Intl I 26.79 +.7 +1.8 Oakmark I 65.06 +1.0 +2.2 Select I 42.19 +1.4 +5.3 Old Westbury GlbOppo 8.03 +.8 +1.6 GlbSmMdCp 17.30 +.6 +.7 LgCpStr 12.59 +.9 +1.0 Oppenheimer DevMktY 37.38 +1.9 -.5 EqIncA m 32.17 +1.4 +2.9 GlobA m 79.04 +1.3 +.3 IntlBondA m 6.15 +.5 +2.2 IntlGrY 38.89 +1.2 +1.9 MainStrA m 48.97 +.3 +1.1 StrIncA m 4.18 +.3 +2.8 Oppenheimer Rocheste FdMuniA m 15.09 +.7 +8.0 Osterweis OsterStrInc d 12.02 +.1 +2.4 PIMCO AllAssetI 12.46 +.7 +3.7 AllAuthIn 10.21 +.7 +3.8 CmPlsStrI 11.35 -.8 +5.9 ComRlRStI 6.05 -.7 +10.2 DivIncInst 11.72 +.6 +3.7 EMFdIdPLARSTIns9.75 +1.7 +.7 EMktCurI 10.23 +.7 +1.5 EmMktsIns 10.93 +.8 +3.9 EmgLclBdI 9.50 +1.1 +3.4 ForBdInstl 10.79 +.2 +3.5 HiYldIs 9.73 +.2 +3.2 IncomeInl 12.53 +.2 +4.1 LgDrTRtnI 11.38 +1.1 +9.9 LgTmCrdIn 12.58 +1.2 +9.9 LowDrIs 10.34 -.1 +.6 RealRet 11.40 +.6 +4.3 ShtTermIs 9.88 ... +.6 StkPlARShStrIn 2.67 -.7 -1.6 TotRetIs 10.85 +.3 +2.2 UnconstrBdIns 11.22 +.2 +1.5 PRIMECAP Odyssey AggGr 29.49 +.6 -.5 Growth 23.50 ... -.5 Parnassus CoreEqInv 38.00 +1.8 +3.9 Permanent Portfolio 44.49 +.5 +3.3 Pioneer PioneerA m 39.75 +1.0 +1.7

NAME

1WK YTD NAV %RTN %RTN

Principal DivIntI 12.04 L/T2020I 14.48 L/T2030I 14.67 LCGrIInst 12.50 Prudential Investmen JenMidCapGrZ 40.20 Putnam GrowIncA m 20.55 Royce PAMutInv d 14.45 PremierInv d 22.65 Schwab 1000Inv d 49.76 S&P500Sel d 29.53 Scout Interntl 37.44 Selected American D 50.53 Sequoia Sequoia 228.18 State Farm Growth 71.47 T Rowe Price Balanced 23.54 BlChpGr 63.00 CapApprec 26.63 DivGrow 33.89 EmMktBd d 12.89 EmMktStk d 32.65 EqIndex d 50.75 EqtyInc 33.32 GrowStk 50.99 HealthSci 59.44 HiYield d 7.26 InsLgCpGr 26.64 IntlBnd d 9.83 IntlGrInc d 16.19 IntlStk d 16.71 MidCapE 41.34 MidCapVa 31.40 MidCpGr 73.96 NewAsia d 16.36 NewEra 47.81 NewHoriz 44.60 NewIncome 9.51 OrseaStk d 10.27 R2015 14.66 R2025 15.70 R2035 16.58 Real d 23.95 Rtmt2010 18.29 Rtmt2020 20.86 Rtmt2030 23.05 Rtmt2040 23.82 Rtmt2045 15.88 ShTmBond 4.80 SmCpStk 43.97 SmCpVal d 49.64

+.8 +.2 +.1 -.7

+1.0 +1.9 +1.7 -1.4

+1.6

-.7

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+.5

+.8

+.5

+.9 +2.4 +1.0 +3.7 +1.0 +2.0 +1.6 -2.5 +.7 +3.8 +1.0 +1.0 +1.0 +5.3 +1.3 +1.3 +1.0 +2.3 +.5 +2.1 +1.7 -3.0 +1.8 +2.8 +.1 +3.6 +1.6 -2.3 +.4 +4.3 +1.8 +4.0 +1.6 +2.5 +1.5 +1.6 +.9 +4.5 +1.5 +1.6 +.4 +2.2 +.9 +7.6 +1.4 -3.6 +.5 +3.2 +1.5 +1.2 +.8 +2.3 +.9 +2.0 +1.1 +1.7 +1.6 +13.5 +.7 +2.5 +.9 +2.2 +1.0 +1.9 +1.1 +1.6 +1.1 +1.6 +.2 +.7 +.9 -1.3 -.1 -1.4

NAME

1WK YTD NAV %RTN %RTN

SpecGrow 24.31 SpecInc 13.04 Value 35.20 T.Rowe ReaAsset d 11.72 TCW TotRetBdI 10.18 TIAA-CREF BdIdxInst 10.77 EqIx 14.41 IntlE d 19.68 Templeton InFEqSeS 23.44 Thornburg IntlValI 30.68 Tributary Funds BalancI 17.61 GrthOppI 19.11 IncInstl 10.31 ShIntBdIs 9.49 SmCoVInst 23.63 Tweedy, Browne GlobVal d 27.39 USAA AggGrow 39.16 VALIC Co I StockIdx 33.81 Vanguard 500Adml 173.65 BalIdxAdm 28.06 CAITAdml 11.62 CapOpAdml 108.72 DivGr 21.72 EmMktIAdm 34.13 EnergyAdm 136.32 EqIncAdml 64.10 EurIdxAdm 75.51 ExplAdml 93.76 ExtdMktIdxIP 155.67 FAWeUSIns 100.66 GNMAAdml 10.67 GlbEq 24.06 GrthIdAdm 48.31 HYCorAdml 6.12 HltCrAdml 81.05 ITBondAdm 11.39 ITGradeAd 9.89 InfPrtAdm 26.47 InstIdxI 172.52 InstTStPl 43.01 IntlGrAdm 74.15 IntlVal 37.86 LTGradeAd 10.42 LifeCon 18.45 LifeGro 28.26 LifeMod 23.69 MidCpAdml 139.80 Morg 25.45 MorgAdml 78.88

+1.2 +1.3 +.4 +3.3 +.8 +4.2 +.9 +8.3 +.3 +2.5 +.4 +2.9 +1.0 +2.1 +1.5 +2.4 +1.6 +3.2 +.9 -4.3 +1.4 +1.7 +2.0 -.7 +.3 +2.9 +.1 +.8 -.3 ... +1.0 +2.9 +.9 -2.2 +1.0 +2.3 +1.0 +.8 ... +.6 +.8 +1.4 +1.5 +.9 +1.9 +.9 +1.1 +1.5 +.5 +1.2 +1.5 +.1 +1.7 +.6 +.5 +.6 +1.0 +1.0 +1.1 +1.8 +1.2 +.7 +1.0 +.8 +1.3 +1.0 +1.0

+2.4 +2.5 +4.2 +2.0 +1.9 +.8 +8.2 +3.6 +4.7 -2.5 +.6 +2.1 +3.4 +2.5 +1.2 +3.4 +7.1 +3.8 +3.5 +4.0 +2.4 +2.1 -.1 +1.3 +9.9 +2.7 +2.3 +2.5 +2.7 -.6 -.6

NAME

1WK YTD NAV %RTN %RTN

MuHYAdml 10.98 MuIntAdml 14.09 MuLTAdml 11.49 MuLtdAdml 11.06 MuShtAdml 15.87 PrmcpAdml 98.90 PrmcpCorI 20.14 REITIdxAd 103.83 STBondSgl 10.51 STFedAdml 10.74 STGradeAd 10.74 STsryAdml 10.69 SelValu 28.70 ShTmInfPtScIxIv 24.85 SmCpGrIdxAdm 42.19 SmCpIdAdm 53.02 SmCpValIdxAdm42.90 Star 24.54 StratgcEq 31.20 TgtRe2010 26.22 TgtRe2015 15.14 TgtRe2020 27.79 TgtRe2030 28.29 TgtRe2035 17.37 TgtRe2040 28.95 TgtRe2045 18.16 TgtRe2050 28.82 TgtRetInc 12.75 Tgtet2025 16.14 TlIntlBdIdxInv 10.15 TotBdAdml 10.78 TotIntl 17.02 TotStIdx 47.43 TxMCapAdm 96.10 USGro 28.71 ValIdxIns 30.60 WellsIAdm 62.02 WelltnAdm 67.37 WndsIIAdm 67.48 WndsrAdml 71.30 Virtus EmgMktsIs 9.89 Waddell & Reed Adv CoreInv A m 7.29 Weitz Balance 14.23 Hickory 57.22 NETFIncI 10.25 PartVal 33.33 PrtIIIOpp 16.62 ShtIntmInc 12.57 Value 46.21

+.2 +6.0 +.1 +3.8 +.1 +5.8 -.1 +.9 ... +.4 +.7 +3.3 +.6 +3.6 +1.7 +14.1 ... +.6 +.1 +.6 ... +1.1 ... +.3 +1.1 +1.8 +.1 +.7 +.9 -1.8 +.9 +.6 +.8 +2.6 +.9 +2.7 +1.1 +4.0 +.7 +2.4 +.8 +2.5 +.8 +2.5 +1.0 +2.4 +1.0 +2.3 +1.1 +2.2 +1.1 +2.3 +1.1 +2.2 +.6 +2.4 +.9 +2.5 +.2 +3.0 +.4 +3.0 +1.5 +2.3 +1.0 +2.0 +1.1 +2.6 +1.4 +.1 +.7 +3.3 +.7 +4.0 +.9 +3.5 +.8 +3.4 +1.0 +3.9 +1.2 +3.6 +.7

+.6

+.2 +1.0 +.1 +1.0 +1.1 +.2 +.8

+1.5 -2.4 +1.6 +2.6 +1.7 +1.0 +3.0

Mutual Fund Footnotes: b -Fee covering market costs is paid from fund assets. d -Deferred sales charge, or redemption fee. f -front load (sales charges). m -Multiple fees are charged, usually a marketing fee and either a sales or redemption fee. NA-not available. p -previous day´s net asset value. s -fund split shares during the week. x - fund paid a distribution during the week. Source: Morningstar and The Associated Press.

12D

MONEY & JOBS

• SUNDAY, MAY 4, 2014

OMAHA WORLD-HERALD

“It takes 20 years to build a reputation and only 5 minutes to ruin it. If you think about that, you will do things differently.” -Warren E. Buffett

H E R E ’S TO T H E N E X T 5 0 Y E A R S . 877 JET 0997

N E TJ E T S .CO M f o r b u s i n e s s , f o r f a m i l y, f o r l i f e