On May 4th (last Saturday), American investment tycoon Warren Buffett candidly discussed his “aftermath” at the Berkshire Hathaway shareholders’ meeting.
When considering no longer leading the vast business empire he built single-handedly and realizing his advanced age, he sometimes appears serious, thinking about his late friend and business partner Charlie Munger.
Munger passed away in 2023 at the age of 99, leading many investors to focus on the question of Buffett’s successor at the 2024 shareholders’ meeting. Buffett will turn 94 in August.
At the annual meeting held in Omaha, Nebraska, Buffett seemed to express his thoughts on the future. He stated that he feels physically well and can continue to run the company.
According to the U.S. financial media outlet “Benzinga,” Buffett fully understands he is in extra innings. Like any outstanding CEO, he has been considering his succession plan.
Investors are concerned that if Buffett were to pass away, Berkshire Hathaway’s stock price might plummet. However, Buffett is confident that this scenario will not occur.
“If I were to die tonight, the stock price of Berkshire Hathaway would rise tomorrow,” he said, revealing his high confidence in his own and the company’s succession plan.
His deputies, Berkshire Hathaway Energy Chairman Greg Abel, Buffett’s designated successor, and Insurance Business Vice Chairman Ajit Jain, also attended the meeting.
Buffett said, “We will see how the next management team at Berkshire will operate, but fortunately, you won’t have to wait too long.”
“I feel fine, but I understand a little about actuarial tables,” he joked.
“At an age where you can’t be sure where you’ll be in four years, I can’t sign any four-year employment contract, like many people in this world,” he added.
At the meeting, Buffett provided clearer indications about Berkshire’s future leadership structure. For example, he stated that Abel will have the final say in the group’s investment decisions.
“I will leave capital allocation to Abel, he understands the business very well,” Buffett said. “If you understand the business, you’ll understand common stocks.”
Abel also assured investors that Berkshire’s culture will remain unchanged and will attract new talent in the future.
“I believe Berkshire is a very special company,” he added, “and that will not change.”
For decades, Munger, as Buffett’s partner, was well-known for his sharp wit and wisdom. Many of his humorous remarks would elicit laughter from the audience.
Footage of Munger from the past was played at the meeting. At the 2015 meeting, Munger said, “Buffett, if people didn’t make mistakes frequently, we wouldn’t be so wealthy.”
As the video ended, the stage lights illuminated, and tens of thousands of investors stood up applauding.
Buffett often spoke about Munger during the morning and afternoon meetings, calling Munger the “architect” of Berkshire’s success.
The duo transformed Berkshire from a textile mill into a $900 billion enterprise. Buffett also pointed out the quality he most admired in Munger – honesty.
In a Q&A session, Buffett even made a slip of the tongue once, referring to Abel sitting on his left as Munger, causing laughter from the crowd.
Buffett admitted, “I’m used to it,” saying he might “blunder” again during the meeting.
Abel graciously responded, “It’s a great honor.”
Buffett seems intent on steering Berkshire Hathaway for as long as possible.
As the shareholders’ meeting concluded, he said, “I not only hope you will come next year. I hope I will be here next year too.”