As assets continued to grow, recently surpassing $20 billion, $250 million was still a meaningful amount even to Warren Buffett.
To the world’s richest man, it represented about 1% of his wealth—an amount that could buy entire average companies outright.
“Investing in internet companies and making money doesn’t particularly appeal to me, but anticipating Pixar’s success and taking interest a year ago was well done.”
As someone whose job was investing, Warren Buffett knew the details of Netscape and Pixar, which had shaken the stock market last year.
He mainly invested conservatively and stably in traditional markets, yet somehow achieved unusually high returns; he disliked unpredictable, all-or-nothing internet companies.
“Can you explain why you invested in Netscape?”
“I usually make programs and use the internet a lot. Compared to other web browsers, Netscape was far easier to use, lightweight, and ran smoothly. The moment I felt ‘this will succeed,’ I contacted them right away and invested.”
“Deciding to invest after using it yourself—that’s good. You should always check market reaction before investing. I, on the other hand, can never predict computer-related companies.”
Warren Buffett was still an analog person, so he neither understood nor approached digital-based industries well.
On the contrary, he accepted that young James, who lived with computers daily, might be more sensitive to the internet sector.
Initially negative, Buffett gradually relaxed as he confirmed James had reasonable criteria and invested in solid companies.
“Even so, it feels odd for me—someone running an investment company—to teach business secrets.”
“Hey now! Isn’t that a bit harsh on a child?”
“If a kid achieves returns this high, he might become a competitor to Berkshire Hathaway someday.”
From the atmosphere, it seemed Warren Buffett was grumbling to Sam Walton about being dragged to Arkansas for year-end.
James was wondering how to persuade Buffett when Jaeeun came running over.
“Grandpa Sam! I taught the kids a new dance—come watch!”
“Hohoho. Sure. Last year Jenny taught a cute dance too. After that, the grandkids danced for this old man.”
When a cute little girl resembling James appeared and invited him to watch dancing, even the middle-aged-turned-elderly Warren Buffett showed interest.
“Hello. I think this is the first time seeing you, Grandpa.”
“Haha. I’m Grandpa Warren, a friend of Grandpa Sam. Can I watch the dance too?”
“Of course! Come quickly!”
Heading to the living room together, the children were practicing moves in the center.
Adults had already taken seats to watch the choreography, and when Sam and Warren appeared, they yielded the best spots.
“Don’t get nervous if you mess up—just naturally move to the next step. Start!”
At Jaeeun’s signal, Michael Jackson’s song played, and the kids danced to the music.
It was a group performance, but taught by the dance machine little sister, parts were properly divided.
Buffett, who had expected mere cute antics, was amazed by the performance exceeding expectations.
The high-quality show combined with adorable children melted the hearts of the Walton and Buffett families, and cheers erupted when the choreography ended.
I can almost hear the Christmas gifts getting upgraded.
Even after Jaeeun’s choreography, kids took turns showing talents, warming the atmosphere.
“James, you do something too!”
“I’m good. I’m way too old for this now.”
Kids who had seen James dance at summer camp requested it, but back then he had stepped up specially for his sister’s smooth camp life; performing here felt too childish for his mental age.
“Why aren’t you going out? If you dance, I’ll help set up the investment corporation.”
Seeing James just watching, Warren Buffett cheaply dangled the corporation as bait to demand a dance.
Hesitating briefly, James thought dancing in front of people with a forty-year-old mind just for advice was absurd.
“You have to keep that promise.”
But for Warren Buffett’s help, he could discard an adult man’s pride anytime.
“Jaeeun, you brought the tape, right?”
“Yeah, but everyone might not know these songs—are you sure it’s okay?”
“Rhythm matters most anyway. Let’s go with that.”
Deciding to unseal dance skills permitted only for parents, James resolved to do it properly.
Currently in America, rock dominated over dance music, with hip-hop slowly expanding.
James still preferred 1990s Korean hits over American music.
Remembering some future Korean idol choreography, he had taught moves to his sister for Korean dance songs and performed filial piety for parents.
Determined to put on a K-Pop concert, James clasped hands with his sister, bowed his head, and took the starting pose.
“Kkungddari shabara~!”
From the audio played Clon’s trending Korean hit Kkungddari, and James performed intense break dancing with his sister.
Having made a remix tape for parents, it continued with H.O.T.’s songs, Kim Gun-mo and Park Jin-young dance tracks, and DJ DOC hits.
James flawlessly synced with his sister on flashy choreography that wouldn’t appear for another twenty to thirty years.
After about ten minutes of intense K-Pop performance, shocked people froze without reaction before explosive cheers poured out moments later.
“Wow! First time hearing the music—was that Korean?”
“Korean dances are so powerful. I couldn’t follow even if taught.”
“Jenny, teach me the shoulder shake, arm raise, and flick move. It’s so cool.”
In an instant, James and Jaeeun became superstars, and Mom beamed proudly amid envious looks from other mothers.
“This should satisfy the condition, right?”
“James, hiding such skill and not showing me—I’m hurt.”
When Sam Walton, seeing James’s dance for the first time, feigned sulking, Warren Buffett had no escape and promised help.
“Then, just change the names on the Netscape and Pixar stakes for easier management?”
“Besides those two, I also hold shares in an online bookstore called Amazon.com and a portal site called Yahoo. Recently I invested in an auction company called eBay and a graphics semiconductor design firm called NVIDIA.”
Buffett clutched his forehead and groaned at James’s far more numerous and complex investments than expected.
Come to think of it, Buffett prefers traditional value stocks and dislikes internet tech stocks—will this be okay?
During the approaching dot-com bubble, Warren Buffett would be ridiculed by all media and attacked by individual investors.
Berkshire Hathaway, investing in stable high-return traditional value stocks, recorded returns far below market average as money flooded internet tech during the bubble.
Yet Buffett ignored the market and kept accumulating value stocks at lows, gathering a lifetime’s worth of criticism— even receiving death threats from investors.
The Sage of Omaha, praised as wise, would mentally break and say, “When the tide goes out, you’ll see who’s swimming naked.”
Ultimately, for the first and last time in his life, Buffett shorted the S&P 500, betting on others’ misfortune.
In the end, the heavily criticized Buffett became the final winner as the market literally shattered.
James planned to ride the bubble with only internet tech stocks for now, so he wondered if getting help from the completely opposite Buffett was wise.
I’ll get help just for setting up and running the investment corporation—handle investments myself.
When the bubble ends, he’d switch to Buffett’s portfolio, so enduring nagging for a few years made getting Buffett’s help worthwhile.
“You hold stakes in far more companies than I thought. Anything else?”
“Besides those, mostly cash. Ah! I recently invested in a movie too.”
“I’m getting confused whether I’m talking to a middle schooler or a retired full-time investor.”
Buffett wrote down James’s asset status on paper, pondered briefly, sighed, and spoke.
“I thought it’d be simple, but I need to teach properly. This isn’t something explainable in a day or two. Plus, since it’s a corporation you’ll carry for life, better learn thoroughly from the start.”
Warren Buffett said creating a personal fund and investment company to manage James’s wealth would take time, and James had much to learn.
“If not urgent, stop investing for a while and focus on the corporation.”
“Understood. I’ll pause investments until asset management stabilizes.”
Fortunately, no special companies emerged in 1996, so pausing was fine.
Major ones appeared in 1997, so resolving the corporation issue next year seemed good.
“I can’t visit you, so come to Omaha whenever you have time and learn management from me.”
“Spring and summer breaks okay?”
“That works. You won’t neglect studies, right?”
“I’m recording top grades at private school.”
Satisfied with James’s answer, Buffett added one final condition.
“Since it’s old Sam’s request, I’ll do it—but my time is very expensive.”
“Consulting fees are only natural.”
“I’m not poor enough to take money from a middle schooler. I’ll take something else instead.”
Buffett demanded James bring Jaeeun to Omaha and show dances.
Entering middle school second year, James had planned to graduate from parental filial performances, plunging into deep dilemma.
“I’m too old to dance now and was going to quit—would it be okay if just my sister performs?”
Looking at Jaeeun giggling and running with kids, Buffett smiled and replied.
“Then we’ll set up the corporation in your sister’s name and teach her management.”
“Ugh! Fine. If there’s a song you like, tell me—I’ll choreograph to it.”
Thanks to Sam Walton, James secured Warren Buffett’s help and decided to start the investment corporation properly from spring break.
Resolving a big homework, James set aside the burden, enjoyed the Walton family year-end party, and Dad took vacation to join for Christmas holidays.
“Looks like Santa Claus visited overnight. Let’s open presents together.”
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