2015 Berkshire 50th Anniversary: Clayton Homes Defense & Big Four CEO Interviews

Extensive Clayton Homes defense after Seattle Times predatory lending article. Core argument: Clayton keeps loans unlike 2007-08 originators who sold/securitized immediately with no skin in game. When loan goes bad, both homeowner and Clayton lose money - strong motivation for good loans. Shows loan application form explicitly recommending shopping multiple lenders with lender board listing all terms. Over 300,000 loans made in 3 years, 98 state examinations resulted in only ~$14,000 in total fines (once $5,500, once $1,400, once $3,000). Zero complaint letters to Buffett despite thousands on other issues. 3% annual foreclosure rate for borrowers with poor FICOs, less secure jobs. Average loan $40,000, lose 40% (~$16,000) on repossession. Defends against bait-and-switch allegations citing privacy laws preventing case-by-case response.

Ginny Rometty discusses IBM's transformation from transactional to 'cognitive, cloud, data' future. Watson Health just launched with access to 1/3 of world's health data from partnerships. 'Strategic imperatives' (new businesses) growing 26% annually. Acknowledges transformation takes time but committed 'for the long haul.' Wells Fargo and American Express mentioned as huge IBM customers. Buffett reaffirms IBM is 'long haul' investment despite questions about transition challenges.

Muhtar Kent discusses Coca-Cola's portfolio transformation beyond carbonated soft drinks. Expanding water, juice, tea, sports drinks. Still beverages (non-carbonated) now fastest growing segment. Addressing obesity concerns with smaller package sizes and product variety. Focus on emerging markets for growth.

John Stumpf discusses Wells Fargo's relationship banking approach, conservative lending standards, and focus on cross-selling products to existing customers while maintaining quality.

Ken Chenault addresses American Express's digital payment strategy amid competition from PayPal, Apple Pay, and others. Discusses advantages of closed-loop network and premium customer base.