Buffett to Shareholders: 'I Can't Recall Ever Having More Fun'

OMAHA, Neb. -- Speaking to more than 14,000 adoring fans who packed the Omaha Civic Auditorium to capacity Saturday morning, Warren Buffett was upbeat about this year's Berkshire Hathaway (BRK.A Quote) annual meeting. "I feel great," Buffett said as he entered the civic center shortly after 7 a.m. to a spontaneous round of applause and cheers. "I can't recall having any more fun than I'm having now."

Behind that grin is a track record that put a lid on critics who had questioned his ability to keep pace with the New Economy: Berkshire stock is up nearly 35% for the past two years, while the S&P 500 is down nearly 25% for the same period.

Addressing the crowd that spilled over into an adjacent concert hall, Buffett and Berkshire Vice Chairman Charlie Munger took on everything from why Berkshire dumped its McDonald's (MCD Quote) and Disney (DIS Quote) stock to a repeat of his rail against corporate greed and misbehavior. Buffett also explained his bullishness on housing stocks and expressed confidence in the economy.

A Slight Change in Tune

Given Buffett's preferred stock-holding period of "forever," one shareholder wanted to know why Berkshire liquidated its McDonald's and Disney positions during recent years.

"It is not our inclination to sell," Buffett said, noting he has never sold a share of Berkshire stock and has held steady positions of The Washington Post (WPO Quote), Gillette (G Quote)and Coca-Cola (KO Quote) for more than a decade. "We would sell if we need money to buy something else. That hasn't been a problem in the last 15 years. I used to have more ideas than money. Now I have more money than ideas," he said, suggesting he still believes equity valuations are stretched. ...