Warren Buffett, the Chairman of Berkshire Hathaway, reassured shareholders at the company’s annual meeting on Saturday about the preparedness of his potential successors. As Berkshire Hathaway announced its first-quarter results, including a remarkable 39% increase in operating profit to a record $11.2 billion, Buffett reflected on the company’s journey and shared his thoughts on its future trajectory.
Buffett, 93, took the stage for the 60th time since 1965, when he started modifying Berkshire from a textile company into an $862 billion entity encompassing diverse businesses like BNSF railroad, Geico car insurance and Dairy Queen, among others. Despite trimming Berkshire’s stake in Apple by approximately 13%, Buffett remained firm in his praise for the tech firm, labelling the iPhone as “one of the greatest products, and it may be the greatest product, of all time.”
The meeting was marked by the absence of Buffett’s long-time partner Charlie Munger, who passed away last year at 99. Buffett remembered Munger as the “architect of today’s Berkshire,” highlighting his immense contribution to the company.
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, paid a touching tribute to his late partner, Charlie Munger, at the company’s annual meeting on May 4, 2024. During the event, Buffett accidentally called Greg Abel, the company’s vice chairman, by Munger’s… pic.twitter.com/b6f532VVwK
— Kumaon Jagran (@KumaonJagran) May 4, 2024
Succession Plans and Investment Strategy
Addressing questions about succession, Buffett expressed confidence in Vice Chairmen Greg Abel and Ajit Jain, designating Abel as the successor for managing Berkshire’s investment decisions, including its stock portfolio. Abel, 61, who has been overseeing Berkshire’s non-insurance operations, has been considered a key figure in the company’s future leadership.
Buffett’s decision to trim Berkshire’s investment in Apple for the second consecutive quarter raised eyebrows. However, he emphasized that Apple would remain Berkshire’s largest holding, despite the reduction. Buffett’s faith in Apple’s business model and its potential for long-term growth remained firm.
Warren Buffett on Emerging Industries
During the meeting, Buffett shared his perspective on emerging industries, considering artificial intelligence (AI) scamming as a potential “growth industry.” He warned about the risks associated with AI technology being exploited by scammers to deceive individuals with convincing fake images and messages, posing challenges for law.
Buffett also revealed Berkshire’s decision to sell its entire stake in Paramount Global at a loss.
While Buffett expressed optimism about opportunities in India, he clarified that Berkshire currently lacks plans for large investments in other countries.
Shareholder Engagement
The meeting shareholders overwhelmingly rejecting proposals addressing environmental and social policy issues, reemphasizing Buffett’s influence with his special shares, which grant him a 31% voting stake in Berkshire.
Despite some shareholder concerns about Berkshire’s large cash position, Buffett stressed upon deploying capital effectively to generate substantial returns with minimal risk.
