Omaha World Herald

WARREN WATCH

Some University of Nebraska at Omaha students recently heard an offer from Warren Buffett:

"If I gave you a billion dollars ..."

Of course, Buffett was making a hypothetical statement, illustrating how to know when a business has a "durable competitive advantage" over others in the same industry. If a competitor had a billion dollars, could it steal away your customers?

It was one lesson among many for the 32 students in a class titled "Genius of Warren Buffett," offered for the first time this fall at UNO's College of Business Administration. The final class session was a two-hour lunch and Q&A with Buffett at the Happy Hollow Country Club.

Offered through UNO's executive MBA program, the class covers not just Buffett's investing ideas but also his management methods, communications style, philanthropy, character and other aspects of his life. The instructor is Robert Miles, who has written several books about Buffett and Berkshire Hathaway Inc., the Omaha-based investment company Buffett heads.

The class is under the auspices of finance department Chairman David Volkman, who will grade the students' final papers later this month.

The billion-dollar "offer" came when Claire Kenkel's team outlined a potential acquisition target for Buffett: the Buckle, a Kearney-based casual clothing retail chain.

The company met many of Buffett's criteria for purchase: strong return on capital, a family run company, $135 million in annual revenue and a business plan that's difficult for competitors to copy, said Kenkel, who is international marketing manager for an Omaha health care diagnostics company.

Buffett responded that the team's analysis had hit all the right points, she said. "That was kind of an affirmation that at least we hadn't missed the mark entirely."

The billion-dollar comment also indicated that competitors would have difficulty taking over the Buckle's market, she said.

Buffett also pointed out the price-control advantage that some companies have. If Coca-Cola raises the price of each drink it sells by a penny, that's $17 million a day and more than $6 billion a year.

In all, the UNO students outlined nine companies for Buffett to consider for acquisition. But students kept their comments brief, Kenkel said. "We wanted to maximize the amount of time Warren was speaking. We were there to learn from him."

In return, the Berkshire CEO bought the lunch — burgers, fries and Cokes.

"I think he really enjoyed it, and the students really enjoyed seeing how his mind works," Miles said from his home in Sarasota, Fla.

Of the 32 students, 20 are working on MBAs and 12 are "lifelong learners" not earning college credit. Most were from the Omaha area, but some came from Texas, Missouri, California, Kansas and Illinois.

Published Omaha World Herald Sunday November 6, 2011 By Steve Jordon
http://www.omaha.com/article/20111106/MONEY/71106993

• CNBC Interview August 30, 2011
• Business Times (Singapore) Published August 15, 2011

Omaha Archive Events

2011 SPECIAL OMAHA PRESENTATION: The Genius of Warren Buffett Buffett CEO Video Interview 2011 Omaha Author Reception

In depth look into the principles and practical methods used by the world’s greatest investor, manager and director. This graduate level concentrated 36 hour program has been exclusively designed for Executive MBA students, UNO graduates, and lifelong learners. Learn how Warren Buffett began with $100 and turned it into a multi billion dollar fortune without ever starting his own business, developing a patent, taking an enormous salary or issuing management stock options. Hear from a Distinguished Lecture series of notable and accomplished investors, managers, directors, shareholders and philanthropists. Explore his unique and uncommon management style. 

Understand how Buffett created a world class board of directors. The course will include an in-depth study of his life, character, reputation and ethics. Analyze his mistakes while comprehending his valuation methods as many of his five decade long acquisitions are dissected. Learn how his vast fortune is thoughtfully distributed to those less fortunate. Final exam will include student presentations of businesses and stocks that they believe best fit into the Berkshire family of businesses.

...Click here to go to University of Nebraska - Omaha, College of Businees site for complete courese information: Spring 2013 Course on April 29 - 30, May 1, 2013 and Fall Course: Sept. 13 and 14; Sept. 27 and 28; Oct. 11 and 12