Warren Buffett Trip Omaha, Nebraska January 2018 Letter from Smart Woman Securities National Meeting with Warren Buffett on January 12th was an honor and a privilege that SWS members will treasure for a lifetime! During the 2 ½ hour Q&A session, we intently listened to Mr. Buffett as he educated us on business, provided advice on rela- tionships and shared meaningful and humorous insights on life and success. He is often referred to as the “Sage of Omaha”, a title earned for being the world’s greatest investor. The definition of a sage is someone characterized by wisdom, prudence and good judgement and Mr. Buffett truly embodies each of these qualities. But the depth of his tremendousness goes far beyond his financial acumen. And because of his generosity with his time, we were able to see and hear for ourselves just how wonderful a person he is. His brilliance, humility, kindness and optimism were evident and inspiring. Our rigorous preparation requirements included readings from The Intelligent Investor, The Making of an American Capital- ist, watching video interviews, dissecting the Annual Shareholder newsletter, and participating in weekly discussion groups. By thoroughly researching companies and studying biographies of the executives that we were meeting, it allowed the students to take full advantage of the opportunity of asking thoughtful questions beyond what anyone could easily access on the internet. All agreed that the preparation allowed them to derive the maximum benefit from the trip. That afternoon was followed by an exclusive dinner at Mr. Buffett’s favorite steakhouse, Gorat’s with our members and SWS Co- founders, Tracy Britt Cool and Teresa Hsiao. They freely shared thoughts and answered questions ranging from their career paths, women in the corporate world, and career advice. We are grateful for their vision, guidance and leadership which created Smart Woman Securities. They have impacted thousands of young women by creating the structure for educating them on finance and investments through educational seminars, mentoring initiatives and meetings with great investors.We proudly continue this mission. Additionally, we visited with businesses in the public, private and non-profit sectors including The Gallup Organization, Hardy’s Coffee, the Joslyn Art Museum and three Berkshire Hathaway owned companies including Nebraska Furniture Mart, Borsheims and Oriental Trading Company where we engaged in panel discussions, speaker presentations, and facility tours. The Business Executives Dinner was a great opportunity for students to engage with accomplished professionals in Omaha. We would like to thank all of our guests for sharing their knowledge and advice with our group as their interaction is something that our members always enjoy. Throughout the trip, members representing 15 chapters were getting to know each other, discussing their school experiences, sharing best practices and discussing how to implement ideas to take their chapters to higher levels. Please read on to learn more details from our participants about events from this year’s trip. Again, we would like to extend our sincerest gratitude to Mr. Buffett for making this trip a reality. It is a tremendous honor to con- tinue to be invited back. It is so inspiring to see that Warren Buffett’s prosperity goes far beyond finances. He possesses abundant wealth with richness of life. As he continues to tap dance to his office, we will continue to applaud him as it is so well deserved.

With gratitude,

Darla Jade Executive Director, Smart Woman Securities THURSDAY, JANUARY 11, 2018 2 Gallup, Inc. Christine Zhang, Harvard University Our first company visit on the Buffett Trip was to Gallup, a During the executive women’s panel, executive director privately owned company that offers research and data analytics Melissa Moreno discussed the benefits of Gallup existing as to help companies operate at peak efficiency. At Gallup, our first a private company including not having to worry about mak- speaker Sara Vander Helm discussed our results from the Clif- ing the numbers each quarter and focusing on the best long- ton StrengthsFinder test, a personality test that identified our top term decisions instead of short-term public perception. Jane five strengths. My top strength was Learner while other girls had Miller, the COO of Gallup, discussed how Gallup was the first Achiever, Competition, Empathy, Input and more. No two girls company to ask, “do you have a best friend at work?” They dis- had the same set of five but our strengths helped lead us to com- covered that employees with a best friend at work are more mon goals and values, just through different pathways. Accord- likely engaged and enthusiastic because they have a con- ing to Sara, companies with employees who follow their strengths stant support system. Lastly, Ms. Miller concluded the panel exhibit a “7.8% increase in productivity and 8.9% increase in by sharing her close partnership with CFO Jim Krieger and profitability”. Out of the 34 possible strengths in the Strengths- how the two form a strong partnership by complementing Finder test, Achiever is the most common and Discipline is least. each other’s strengths. This was a nice recap of the lessons The latter half of the Gallup visit consisted to two panels: the we took away: to cultivate our strengths and find partners. first comprised of researchers and the second of executives at Gal- lup. At the research panel, we learned that women like choices as workplace analytics manager Annamarie Mann reports that“77% of women with children consider working part-time or leaving the workplace.” We also discussed the evolving workplace culture as employees want coaches instead of bosses. According to Ms. Mann,“Millennials are empowered, not entitled” and more confi- dent in voicing their thoughts. Ellyn Bass, a research analyst, was working from home as her child’s daycare was cancelled due to the snowstorm. This demonstrated Gallup’s commitment to work- life balance and the flexibility to accommodate working mothers. Jackie Crowley, Gettysburg College At the start of our visit with Gallup, we ing this panel, we talked to six women that generation, do not wait for things to focused on ourselves, through thinking worked at Gallup: Kristin Berry, Anna- change, and delay the American Dream. introspectively about the strengths of marie Mann, Jane Miller, Melissa Moreno, Ultimately at our Gallup visit, we learned our personalities and talent, through Stephanie Plowman, and Ellyn Bass. They a great amount about ourselves and taking the Clifton Strengths Assess- discussed a great company culture at Gal- the other members of the trip, heard ment. Through this assessment, we lup, such as a low turnover rate, how their from a panel of inspirational women learned our five greatest talents: talent jobs give them mission and purpose, and about the company culture at Gallup, can be defined as a naturally recurring that they feel valued for the work that they and learned about Gallup research pattern of thought that can be produc- are providing. Women are the technol- that will greatly affect our generation tively applied. During the Gallup Clif- ogy leaders at Gallup. Melissa Moreno, the of women as we enter the workforce. tonsStrengths Discovery, Sara Vander Executive Director of Infrastructure and Helm helped us develop a mindset in Cybersecurity, runs a team of all men, in which we removed the negative con- a department that is quickly gaining more notations with talent. In academics and importance: a trend that will most likely other ventures, it is frequently taught continue in the future. She discussed that to work on weaknesses, rather than to one of the biggest challenges of being a fully develop our strengths. The Gal- woman business leader is that she is in- lup Strength presentation taught us vited to business events that are domi- that differences are advantages, and nated by male pastimes, such as golfing. the differences of others are also ad- During this panel, we also discussed vantages to us as finding business some of the recent reports published partners with different strengths will by Gallup, such as the Millennial Re- improve collaborative productivity. port. Empirical evidence from this study After the CliftonStrengths Discovery, shows that Millennials have different there was a panel called “Bringing Re- expectations of the workplace: they search to Life and Life to Research”. Dur- crave development as an empowered THURSDAY, JANUARY 11, 2018 3 First National Bank Lorem Basile, Fordham University Walking into the First National Bank Headquarters all of us what makes the bank so unique. First National Bank is known were very excited. We eagerly jumped on the elevator and for its philanthropy and throughout our discussion it was suddenly were on the fortieth floor in the executive board- very clear that the bank has helped several causes in Omaha. room withan incredible view of the city. A few minutes lat- er, the CEO Clark D. Lauritzen walked in and welcomed us warmly. He first wanted to hear about Smart Woman Secu- rities as an organization, and also learn about each of the girls: where they studied and interned. He immediately con- nected with one of our members who studies at Harvard and

Before giving all the girls a tour of the office, Mr. Laurtizen shared his advice for all of us as we prepare to transition to the real world. First he said, “You have to raise your hand.” In school if you work hard and do a good job you will get worked at Goldman Sachs, as that was what he did as well. a good grade, but at work you need to have an informed After everyone introduced themselves he gave a brief his- opinion and share it in order to make yourself valuable. The tory. He kept it short explaining that the traditional busi- second point he made is that we will be tempted to change ness is in commercial lending and wealth management, but careers a lot at an early age, but that it would be a good idea that a major component is the credit card business. March to stay at one place for a long period of time as one gains 2018marks one year since he took over as chief executive of- more experience seeing things from start to finish. The visit ficer. However, Mr. Lauritzen has grown up learning about at First National Bank ended with Mr. Lauritzen providing the bank as he is the sixth generation Lauritzen running the the group with a historical background on the office. The bank. He admits that family communication, trust, and com- rooms on the executive floor contain a lot of history about mitment are important and that family life and work are very the bank and its founding fathers. However, it also contained intertwined. The family values are clearly a significant part of a lot of historical artwork and objects about Nebraska. He also pointed out major elements of the city and helped us to And of course, seeing Warren Buf- get an even better understanding of Omaha and its culture. fett was soul-changing. He was THURSDAY, JANUARY 11, 2018 4 Joslyn Art Museum Leaf Ma, Bowdoin College Founded as a gift to the city of Omaha, the Joslyn Art Mu- The trip to Joslyn Museum was not only a fun explora- seum started providing free access to the public in 2013 tion of Omaha but also a way for us learn about the city’s as it had done from its opening until the mid-1960s. The philanthropy, business, and culture. Unlike art museums removal of entrance fees encourages everyone to enjoy such as MOMA, Joslyn is not crowded with visitors. Every- the public museum in Omaha. In addition, museum de- one has the opportunity to be close to art and enjoy art. signs and art works have made the museum more acces- sible to its visitors. For instance, Art Works is an interactive place for visitors to create their own art. This space defies the common perception of art museums being “no-touch- ing” spaces and distanced from visitors. Here you could use brushes, pens, videos to express yourself artistically. My personal favorite piece of artwork is Inside & Out by Dale Chihuly. The piece is a giant glass sculpture and is placed in front of open windows. What strikes me are the colorful and gorgeous glasses in different shapes. Our tour guide Renee remarked that this piece is especially beau- tiful at night when the light shines through the colorful glasses. The piece also embodies the idea of accessibil- ity of the Joslyn because it is placed in front of windows so that people from outside could appreciate the art as well.

Erin North, New York University We could see the pink marble of the Joslyn from the heights of impressive piece was only one of two Chihuly’s held in the Joslyn. the 40th floor of the First National Bank. Built by a father and Once we had sufficiently warmed our extremities, we had the son team: John and Alan McDonald, with an extension added in chance to talk about how the museum was run and financed, 1994 by Norman Foster, we were able to take in a view of the followed by a guided tour. We began by learning information about the founder, Sarah H. Joslyn. She was the widowed wife of George A. Joslyn, and before her husbands passing the cou- ple had given much to the community. After his death, Sarah decided to continue their generosity, and the Joslyn was born. We walked through the original concert hall foyer, then the Storz Fountain Court, which were both done in the Plains Art Deco style. We began looking at a wall of antiquities from Egypt and Greece, the oldest pieces in the museum, and then moved all the way through time to the Modern and Contem- porary art. On our trip we saw paintings by Titian, El Gre- co, Pollock, and even the original plaster cast of a Degas. We ended our tour, as a group, watching a digitized image of a tree shaking in the wind. We watched as the green leaves be- gan to fade to yellow, then orange as they fell to the ground. The bare limbs of the tree shook in the wind, and slowly the leaves began to grow again. This cycle began again and again, building that few were lucky enough to see. After walking the and would continue until the machinery storing and display- few, uphill blocks from the bank to the museum in below freezing ing the art broke down. I imagine that we all sat contemplat- temperatures, we spent a few minutes warming up in theThe Wal - ing the time that was passing us by, and then began again ap- ter and Suzanne Scott Pavilion by Norman Foster. We were joined preciating the wonderful opportunities we have been given. by a large Dale Chihuly blown glass piece hanging down the hall From the below freezing walk to the inspiring beauty we were from us while we regained the warmth in our ears and feeling able to witness, I think we all left the Joslyn a little bit closer. in our fingers. We would find out later (to our delight) that this THURSDAY, JANUARY 11, 2018 5 Business Executives Dinner Sara Park, University of California, Berkeley After our tour of the Joslyn Art Mu- inclusion and support among all women at the Chamber is devising how Omaha seum, SWS wrapped up our first full day in the office helps everyone. “Women is to become “a sticky city, and bring in town with dinner in the museum’s have to work 120%,” she emphasized. jobs and talent” to this region. He also Omaha Steak Room. We were joined Ms. Fay engaged in a discussion with mentioned that after years of working, by three inspirational business leaders us about the duties and responsibilities “things get easier because you’ve done of Omaha: Adrienne Fay, the Director of leading a philanthropy arm in a com- things before - so now you have room of Marketing and Philanthropy at Bor- munity like Omaha. Calling it “a big small to think of creative solutions moving sheims, David Brown, the President of town,” Ms. Fay and her cheerful demeanor the Omaha Chamber of Commerce, and expanded on her unique role of work- Lyn Ziegenbein, the Executive Director ing in a town with such strong ties to Emerita of the Peter Kiewit Foundation. philanthropy. In a city where most busi- Having the opportunity to learn from ness leaders live across the street from all three Executives over dinner was in- one another, a giving mentality com- sightful to say the least: each brought a dif- pletes the identity of businesses--and ferent perspective of the history, culture, more importantly, people-- of Omaha. and ethics that characterize Omaha. With Finally, Mr. Brown shared his experi- Ms. Ziegenbein, for example, we covered ences of leading the 11th largest Cham- issues ranging from our thoughts on the ber of Commerce in the nation. His forward.” All three leaders were highly #MeToo Movement, to how to negotiate open personality helped us think criti- engaged with all the SWS members, in the workplace as a woman, and even cally about how to keep motivated early and were curious to hear our perspec- discussed the social stigma of women be- in our careers and strategically thinking tives and stories. We will implement ing malicious to one another in the work- ahead, and how to stay motivated after these lessons of being compassionate force. Uncovering these topics and sharing years in the industry. With a straightfor- and acting with integrity in our respec- personal experiences around the table, we wardness like that of Mr. Buffett’s, Mr. tive careers and in our personal lives. came to the conclusion that a culture of Brown brought up how one of his roles Cindy Fan, University of Pennsylvania The dinner we had with business executives David Brown, of luck and serendipity” as he would not be in the position Adrienne Fay, and Lyn Ziegenbein was extremely intimate he is in had he not stumble upon an economic develop- and deeply rewarding. Surrounded by beautiful arts of the ment class at Dartmouth. He shared with us his thoughts Joslyn Museum, we had the honor to enjoy dinner as we on how to attract younger working people to come to rotated and heard the executives’ insights. First, we sat Omaha as Omaha really does have a vibrant business scene. down with Mr. Brown who headed the Chamber of Com- Next we were able to sit down and hear from Mrs. Ziegen- merce in Omaha. When asked about his background and bein on a variety of topics from why she came back and various opportunities that ultimately led him to Omaha stayed in Omaha to advice she had for females in the work- and this role, Mr. Brown noted “Life really has an element place. One of the most interesting quotes from our conversa- tions with her is “We can all hear but that doesn’t mean we can all listen.” She advises us aspiring female business pro- fessionals to take the time to humbly listen and thoroughly think about others around us as sometimes others’ opinions are what allow us to achieve more. Last but not least, we lis- tened to Mrs. Fay, the marketing director of Borsheims.She shared stories of how she personally has worked with Mr. Buffett and truly how “hands-off” he is with his companies. It was very interesting to hear about the direction she wants Borsheims to take in terms of boosting e-commerce sales and targeting the Chinese and Spanish demographics. Need- less to say, hearing from Mrs. Fay on such an intimate level helped us prepare for our Borsheims tour the following day! Overall, I truly have to say it was an amazing opportunity to have them take the time and share with us their experiences, their communities in Omaha, and their hopes for the future. FRIDAY, JANUARY 12, 2018 6 Nebraska Furniture Mart Irene Kao, Columbia University Full of energy to see Mr. Buffett and awakened by the cold tination Experience Team.” The Director described the Mart as Omaha weather, we began our visit to Berkshire Hathaway com- a “Destination Store,” where families would drive many miles panies with Nebraska Furniture Mart. As the doors opened, and make a special trip to the store as a family outing. There- we were greeted by a seemingly endless playground of couch- fore, on weekends, the Mart has costume characters, food es, rugs, vases, mattresses, cushions - name any home item you demonstrations, and various events that enhance the experi- can think of and you’re sure to find it at Nebraska Furniture ence for families and customers. Here is another character- Mart. The Mart was first founded in 1937 by Rose Blumkin, istic that can be seen in Berkshire companies - the company more commonly known as Mrs. B, in her husband’s pawn shop. manages to evolve with changing times and business envi- Mrs. B was devoted to the business and her customers, work- ronments all the while retaining its core founding values. This ing in the store until she was 103. Nebraska Furniture Mart became a success due to its wide selection of furniture cou- pled with great prices. In 1983, Mr. Buffett purchased a major- ity share of Nebraska Furniture Mart in a handshake deal from Mrs. B, without audits or long contracts. Here, we begin to see common characteristics of many of Mr. Buffett’s investments - quick decision making based on the integrity of management, an easy to understand business model, and a competitive moat. Today, Nebraska Furniture Mart also operates in Des Moines, Kansas City, and Dallas. It still retains the same competitive advantage and focus it had 80 years ago: Huge store, huge selection, and great price. Of course, since it has grown so much, the store now offers an even wider selection than be- is probably because Mr. Buffett tends to acquire companies fore, with a wide range of items in each category from the that are already well-run, which allows them to withstand basics to the best in order to cater to every customer base in the test of time. When asked if there were benefits of being a one-stop shop. Furthermore, the current store takes Mrs. B’s a Berkshire company, the Director of E-commerce responded emphasis on customer experience to a new level. Not only that other than receiving a consultant and help with expan- are the sales members extremely knowledgeable about the sion, the Mart mostly enjoyed its independence in operations. products in the store, but the Mart also has a dedicated “Des- I was sad to hear that Nebraska Furniture Mart

Q&A with Warren Buffett Julia D’Arecca, Fordham University After visiting the Nebraska Furniture Mart, our group finally talent, but now it is “moving towards using 100% of the talent” got to experience the moment we had all been waiting for: Q&A by including women in the workforce. Mr. Buffett touched on and lunch with Warren Buffett. We eagerly arrived at 10AM and the fact that women in finance seem to advance at a slower pace for the next two hours listened carefully to Mr. Buffett answer than other career tracks such as medicine and law. He showed questions about both his personal and professional lives. He ad- an empathetic side when he said “if I were born female I would dressed everything from working with his business partner and want to go into finance” citing the opportunities that exist in the close friend Charlie Munger to insuring natural disasters and cy- field for all genders. He continued to share his advice which is to bersecurity and investing in real estate. Smart Woman Securities keep audited record of personal success. He said “if you are able was the seventh group on the list to ask questions and the ques- to make money for people then they will not care [which gender tion we brought forward was “We read that you have been look- you are]”, emphasizing the importance of keeping a record to ing to invest in more women run companies and to add more prove personal success. He closed off the question by admitting women onto your board...Have you noticed any correlations be- that sometimes men, even himself, “think they try to cover the tween the addition of more women in higher level positions and whole field, but may not be” when referring to selecting candi- the productivity or success of the company in any aspect? And dates for higher level positions. He discussed an example where what advice do you have for young women to more rapidly and he and his first wife, Susie Buffett, were on the beach and he was successfully enter this still male dominated field of finance? ” Mr. looking to fill a position and overlooked her. She pointed out that Buffett responded with “interesting question” before thoughtful- she would definitely be interested in the position and from there ly proceeding to speak about the topic. He highlighted that he is became involved as a director of the company! Overall, the War- “bullish” when it comes to women’s advancement and success in ren Buffett Q&A and lunch in Omaha was definitely a once in a the workplace. He spoke about how the country only used half its lifetime experience that everyone will cherish for years to come. FRIDAY, JANUARY 12, 2018 7 Q&A with Warren Buffett Jenna Florendo, Fordham University Opening up the 2 hour Q&A session beings who never raised any questions with people better than yourself,” as he with a joke, Mr. Buffett put a smile on about money or stock options after their believes we are shaped by our friends. To the faces of the 11 organizations that appointment. According to Mr. Buffett, help put this idea in perspective, he asked traveled all over the world to hear the two men “measured their success us to think of a member of our class who him speak. After inviting everyone in in life by what they’re doing for Berk- we would like to “invest in and receive a the room to his Annual Shareholder shire, not by what Berkshire is doing for percentage of his or her earnings.” He Meeting in May, Mr. Buffett began an- them.” He then went on to emphasize then asked us to think of someone who we swering questions and sharing stories the importance of doing what you are would like to “short.” The purpose of his about his personal and investing expe- passionate about. Mr. Buffett explained thought exercise was to have us think about riences. He spoke about many topics that a lot of people love money. How- the good habits of those we would invest ranging from his distrust of cryptocur- ever, he highlighted that the best lead- in and the bad habits of those we would rency to the benefits of philanthropy. ers are not those who love the mon- short. Mr. Buffett wants us to remember When asked about his appointment of ey, but those who love the business. those traits, so that we can become better Gregory Abel and Ajit Jain to Berkshire Mr. Buffett also opened up about his people through the individuals we choose Hathaway’s board as vice chairs, Mr. Buf- relationship with lifetime friend, Charlie to surround ourselves with. In the end, he fett explained that the two men were Munger. After stating his admiration, Mr. stated that Mr. Munger never exhibited good managers and superb human Buffett advised his audience to “hang out self-pity or envy, which are qualities that he From left to right: Back row: Darla Jade, Leaf Ma, YingYu Ren, Solina Powell, Erin North, Julia D’Arecca, Jackie Crowley, Christine Zhang, Jules Qiu, Izabela Litwin, Claudia Greenspan, Caitlin Sullivan, Cindy Fan, Irene Kao Front row: Aimee Xu, Lily Li, Jenna Florendo, Warren Buffett, Sara Park, Jennifer Dunn, Lorem Basile

Jules Qiu, Harvard University We were joined by about ten other teams at Nebraska Furni- lishing an investment record to prove one’s capabilities. ture Mart, and after a detailed tour of the space, we headed to- Another few questions surrounded current industry trends wards the Hilton for a two-hour Q&A session with Warren Buffett and their impact on an investor’s global outlook. Mr. Buffett himself. On our way there, we stopped by Buffett’s residence in was unimpressed by the recent frenzy over cryptocurrency, Omaha and had a peak of his modest house from the outside. and reiterated his thoughts on the value of two types of as- Soon after everyone was settled down, Mr. Buffett ap- sets, namely, assets such as farms that allow productions, and peared and started sharing his experiences and opinions. assets for people’s enjoyment. For investors, the latter type One of SWS’s members asked a question about women could only create value when someone else is willing to buy it. in finance, and Mr. Buffett drew on a comparison between Mr. Buffett also commented on the human relations aspect of his the choices available to him and his sisters when they work, as well as recent updates on leadership appointment in Berk- were young, lamenting the fact that half of human poten- shire. He shared his fond memories with Charlie Munger, his long- tial was restrained because of the limited opportunities time business partner, as well as the reasons behind his decision to for women back in the day. However, he also encouraged appoint Gregory Abel and Ajit Jain as vice chairman for nonin- women in the room who were passionate about finance surance businesses and insurance operations, respectively.These and investing, and pointed out the importance of estab- business relations were tightly intertwined with his belief in people FRIDAY, JANUARY 12, 2018 8 Borsheims Claudia Greenspan, Cornell University Our visit to Borsheims was one of my favorite parts of the Omaha one-on-one. Ms. Fay told me all about Borsheims growing trip. Having the chance to visit a successful, Berkshire Hathaway- customizable jewelry business, which I found fascinating. We owned business gave me perspective on how much success and pros- even discussed how bull and bear markets affect the fine jew- perity that ownership byWarren Buffett can truly bring to a business. elry industry. Meanwhile, the rest of the group was delighting When we first entered the Borsheims store on Friday morning, it in trying on the best that Borsheims even had to offer. One girl was a lot to take in. The sprawling first floor features rows of en- even tried on a pair of earrings worth nearly half a million dollars! gagement rings, watches, earrings, and other pieces from designers As our trip to Borsheims came to a close, none of us around the world.The whole floor was set up like a showroom, and wanted to leave. I truly believe that Borsheims was a high- several sales assistants were happy to show us the amazing jewels on light of the trip for all the attendees, and that our experi- display. Our speaker at Borsheims, Adrienne Fey, was no stranger to ence there left a lasting impression on us. And who knows? us—she was at the Business Executives Dinner onThursday night! Ms.Fay has been an executive with Borsheims for 15 years. During that time, she has helped to grow Borsheims business-to-business, marketing, and philanthropy effort. She told us all about Borsheims history, which is steeped in Omaha tradition. Borsheims prides itself on the “three legged stool” that makes it a unique jeweler: huge inven- tory, special discounts (known as the “Borsheims price”), and expert sales associates. Today, Borsheims has a thriving e-commerce business, holds 1,365 pieces of jewelry in store, and finds 46% of their customer base outside of Nebraska. After Ms.Fay’s speech, I decided to ask her a few questions Oriental Trading Company Solina Powell, Brown University their merchandise from producers in Asia, primarily in China, The moment we stepped into the La Vista Fulfillment Center but also from Vietnam, Indonesia and India. This conversation of Berkshire-owned Oriental Trading Co., excitement was on eventually shifted into a broader discussion about the state of the rise as we were greeted with Warren Buffett and Charlie e-commerce and the steep competition posed by Amazon. Spe- Munger rubber ducks. Remembering that I would flip through cifically, as e-commerce companies must have contracts with the colorful pages of Oriental Trading Co.’s catalog as a kid, I shipping providers, the rising volumes and speed with which felt as if I were transported back to my childhood. Moreover, Amazon can deliver their products to consumers has strength- having earlier been inspired by Mr. Buffett’s words, it was clear ened their relationship with shipping companies, conversely to see that Oriental Trading Co. fostered a strong, indepen- making it more competitive for brands such as Oriental Trad- dent brand identity while being grateful for the leadership ing Co. to negotiate economically advantageous contracts. Nev- ertheless, as Mr. Mendlik described in a presentation about the company’s history, Oriental Trading is optimistic about their future, setting goals to increase sales via drop shipping meth- ods of product distribution, optimizing their email marketing campaigns and creating a differentiated customized experience for their consumers through the creation of subsidiary brands. After the presentation, we were fortunate to take a tour of the incredibly expansive yet organized La Vista Warehouse, that boasts that it could hold 12 simultaneous football games given its and sense of community spread by its parent organization. size. It was an eye-opening experience to witness the orchestra- As SWS was one of the first groups to arrive, I had the plea- tion of the picking, sorting, packing and shipping process that sure of speaking with Oriental Trading’s CEO, Steve Mendlik, as Oriental Trading goes through on a daily basis. An industrial jun- we waited for other groups to join us. As I had studied abroad gle, the facility consisted of seemingly endless rows of methodi- in Shanghai, China last semester I was interested to hear that he cally organized products that were seamlessly transferred from would soon be flying out there to meet with other members of conveyor belts to sorting bins to efficiently sized cardboard boxes the Oriental Trading Co. team based abroad. We discussed the ready to be shipped. In observing both the corporate and factory issue of rising labor costs in China and how this directly affects components of the organization, this opportunity truly put into Oriental Trading’s costs given that they import about 90% of perspective the incredible detail that goes into Oriental Trading FRIDAY, JANUARY 12, 2018 9 Dinner with SWS Co-Founders Aimee Xu, University of Southern California In the evening following our Q&A was immensely inspiring to hear from both place, Tracy and Teresa encouraged us to with Mr. Buffett and Berkshire Hathaway women, successful in their disparate fields, speak up when facing difficult situations portfolio company visits, we settled into encouraging us to pursue our passions. and to deliberately seek positive work en- Gorat’s for a signature Omaha dinner. Tracy and Teresa also touched upon the vironments where women are respected. Between Cherry Cokes and juicy steaks, issues we face as women today.With grow- Both women taught us, as aspiring young we chatted amongst ourselves about our ing movements in both the entertainment professionals, to pursue our passions differing chapter initiatives, until Tracy and business spheres around sexual ha- without reservation and to take initiative Britt Cool and Teresa Hsiao arrived. rassment and women’s rights in the work- as young women entering the workforce. Tracy and Teresa detailed their back- grounds, having both spent a summer in college with Lehman Brothers. After founding Smart Woman Securities at Har- vard College, neither returned to Lehman Brothers following their penultimate year— Tracy continued directly to Harvard Busi- ness School, joining Berkshire Hathaway shortly thereafter, and Teresa left for Los Angeles to pursue a career in screenwriting. Both women proudly discussed how they followed their passions.Tracy emphasized the importance of speaking up and taking initiative, having received an opportunity with Berkshire Hathaway only after writ- ing a letter to Mr. Buffett himself. Teresa emphasized the importance of taking time to find your own path, having pivoted from investment banking to corporate fi- nance, and ultimately, to screenwriting. It

Caitlin Sullivan, Boston University What’s better than a steakhouse in Mr. Buffett and secure a away from this Q&A session was both Omaha? A steakhouse that Warren Buf- role at Berkshire Hathaway, where she Tracy and Teresa’s commitment to fol- fett frequents. On Friday night, we had worked closely with him for five years, low their passions with confidence the opportunity to experience not only until eventually taking over the role of and vigor. Both have faced challenges Omaha’s famous steak, but also en- CEO of a distressed Berkshire-owned in life, from Tracy working long hours gage in a fascinating discussion with company by the name of Pampered on the farm as a child, to Teresa facing SWS founders Tracy Britt Cool and Te- Chef. Through monumental organi- pressure from her immigrant parents resa Hsiao following our delicious meal. zational changes and her thoughtful to succeed in America. However, their Tracy and Teresa, both Harvard alums, leadership, the company has seen sig- steadfast willingness to advocate for solidified their friendship and ideated nificant improvements. Tracy also sits themselves and pursue what makes about SWS while working together for on the boards of various companies them happy is something that I think Lehman Brothers during a summer in- including Kraft Heinz. Teresa, on the all SWS members should strive for. ternship in 2006. This internship proved other hand, realized that she preferred to be pivotal for both women, who a more creative environment, leading have both achieved tremendous suc- her to pursue a career in entertainment. cess in their respective careers. For Tra- Starting out as a writer for a Canadian cy, her interest in finance and business kids TV show, she has since earned cov- was reaffirmed through the internship, eted positions writing for Family Guy leading her to pursue an MBA from and American Dad. She is now working HBS immediately upon graduation. Af- on a news show airing next year, while ter reading much about the ‘Oracle of developing her own projects and pilots. Omaha,’ she was able to connect with Perhaps the most significant take- SATURDAY, JANUARY 13, 2018 10 Hardy Coffee Izabele Litwin, Carnegie Mellon University On Saturday morning, SWS members visited the downtown loca- Apart from learning about the accomplishments of Har- tion of Hardy Coffee Co., a local coffee company which is owned dy Coffee Co., we examined some of the challenges that a and run by Autumn Pruitt and her husband, Luke. The owners small coffee business goes through while increasing its num- started the business eight years ago and transformed it from a small ber of employees from one to forty in a relatively short peri- coffee shop to a firm which now roasts and sells its own coffee in od of time. Specifically, it takes a significant amount of effort three different locations in Omaha. During our visit, Autumn kind- and commitment to stay in business and follow the industry ly gave us an overview of the business and a glimpse of the friend- changes, especially when customers often look for renown ly culture that keeps customers coming back time and time again. coffeehouse chains rather than independent coffee stores.

During the visit, SWS delegates gathered around two tables and listened to Autumn describing the history and substan- As a whole, this visit proved to be an incredible opportuni- tial development of Hardy Coffee Co. We learned about Oma- ty to learn from Hardy Coffee Co., a great example of a small ha fuelling the growth of her firm, operational planning that and successful business. Our group was impressed by the made her business successful and some competitive advan- company’s remarkable transformation and significant poten- tages Hardy Coffee Co. has. In particular, we found it interest- tial for expansion. We are very grateful to Autumn for provid- ing that Hardy Coffee Co. owns all parts of the supply chain, ing valuable insights into the coffee business and helping us therefore can customize the product and cater to all tastes. understand the importance of small family firms in Omaha. REFLECTIONS 11 Jennifer Dunn, Fordham University During the adventure filled weekend, we experienced views the longevity of the bank as a more essential priority the quaint, close-knit community that is Omaha. We saw than impressing the board during his first year as President. the gigantic impact that Mr. Buffett has created within the One of the most important insights of this experience was city that seems to be on a first name basis with Warren. His the ability to create success from dreams. Mr. Buffett noted generous and humble personality has fostered an environ- that “it is so important to find out what turns you on in life.” ment of philanthropy within the city. Through the teach- Mr. Buffett achieved his childhood goal of becoming a mil- ings of Mr. Buffett, local business, gigantic private corpora- lionaire through his hard work, humble personality, and self- tions, and non-profits have all embraced ethical policies less heart within a field typically associated with greed. He for their companies. Additionally, all of these companies has demonstrated how his success lead an entire community are focused on driving process long-term as lead by Mr. to greatness. And we, a collective group of strong and intel- Buffett’s example. First National Bank President and Chair- ligent young women, have been inspired by the way that the man Clark Lauritzen mentioned that he had a made a cur- legendary investor, Warren Buffett, used his skills to positively rent decision that will reduce the bottom line this year in impact the world with his talent. It is our duty now to find “what order to increase progress through the future years. He turns us on in life” with the same determination, ethics, and humility that Mr. Buffett and the city of Omaha have exhibited.

Lily Li, University of Virginia My experience on this trip has been nothing but amazing. Before Our corporate visits were eye-opening. Gallup provided heading to Omaha, my sole expectation was just to see Warren us with valuable insights with the great potential of devel- Buffett. However, the moment I landed there, the city completely oping strengths; First National Bank offered us great advice overthrew me. This place exerted a strong sense of business cul- on professional life and career trajectory; Nebraska Furniture ture: diverse styles of restaurants, emerging coffee houses, thriv- Mart showed us their advantageous scale and price point; ing local businesses and enormous skyscrapers. I was more than Borsheims demonstrated its competitive strategy to pro- excited to explore the culture and companies surrounding me. vide consistent discounts and bring tremendous volume; Oriental Trading Company opened our eyes with seam- less warehouse logistics. These companies were outstand- ing in its own way and I felt fortunate to learn about them. What I noticed in every company that we visited was how proud every employee was to work there. Everyone was so excited to share their love of Omaha to us. I was struck by their love and desire to make this city a better place. And of course, seeing Warren Buffett was soul-changing. He was humble and sincere. I was deeply surprised by how personable he was to every person at the event. He dem- onstrated a graceful simplicity in his values, lifestyle and investment approach that makes me admire him deeply. I truly appreciate the opportunity to meet 19 awesome women and learn from them. I cherish the time that we spent together and truly grateful for this well-planned trip to explore and learn. ACKNOWLEDGEMENTS 12

WE EXTEND OUR SINCERE GRATITUDE AND APPRECIATION TO OUR PLATINUM SPONSOR,

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FOR THEIR SUPPORT AND ENCOURAGEMENT!