On Saturday, May 4th, renowned American investor Warren Buffett will once again take center stage at Berkshire Hathaway’s annual shareholders meeting in Omaha.
This will mark the 60th annual meeting held since Buffett took over Berkshire in 1965. Despite assuring investors of feeling well last November, he acknowledged that he is “playing in overtime.” He has mostly stepped back from public appearances to discuss company matters.
Shareholders will evaluate potential successors at the meeting and gain insights into the group’s plans for growth and cash deployment.
According to Reuters, on a downtown stage, the 93-year-old Buffett and Vice Chairman Greg Abel, 61, will field questions for about five hours. Vice Chairman Ajit Jain, 72, will also join them. Abel was designated as Buffett’s successor in 2021, stepping into the CEO role.
Investors are keen on how the group will navigate challenges, including achieving optimal growth without overpaying for acquisitions, dividend payouts, and deploying $167.6 billion in cash.
Ted Bridges said, “Buffett says it’s hard for us to progress as we used to.” He manages $10 billion in assets at Bridges Trust in Omaha, including Berkshire stocks. “Listening to how we’ll allocate capital and think about the next 10 years will be interesting.”
Berkshire will also release first-quarter earnings earlier on Saturday, with analysts expecting operating profit to exceed $9 billion.
Following that, Berkshire will consider six shareholder proposals, including disclosing more on climate protection, enhancing diversity, and plans regarding dealings with the Chinese government. Buffett is against all six proposals.
In fact, Buffett has acknowledged the limitations brought by Berkshire’s size. In a February shareholder letter, he stated, “We can’t achieve eye-popping performance.”
Berkshire is an $862 billion conglomerate with dozens of businesses, including BNSF Railway, Geico auto insurance, and various industrial and retail operations such as Dairy Queen and Fruit of the Loom.
It also holds over $300 billion in stocks, with nearly half in Apple.
Abel oversees Berkshire’s non-insurance operations, while Jain supervises its insurance business.
After Buffett steps down, his son Howard is expected to become non-executive chairman to help uphold Berkshire’s culture.
Todd Combs, 53, and Ted Weschler, 61, oversee some of Berkshire’s stock investments and may take on more responsibilities. Combs also manages Geico.
At the shareholders meeting on Saturday, Buffett might discuss major investments in Apple, Occidental Petroleum, and five Japanese trading companies, as well as whether wildfire lawsuits have permanently damaged the prospects of Oregon utility company PacifiCorp.
He might also reveal Berkshire’s significant acquisitions of financial service stocks quietly.
Given Berkshire’s difficulty in acquiring entire businesses, high yields on U.S. Treasury bonds assist in cash deployment.