By Jonathan Stempel and Koh Gui Qing
OMAHA, Nebraska (Reuters) – Warren Buffett will take center stage at Berkshire Hathaway (NYSE:)’s annual meeting on Saturday, as shareholders descend on to watch the famed investor as well as his expected successor.
The meeting is the 60th for Buffett, 93, since he took over Berkshire in 1965. He has largely stopped appearing publicly to discuss the company. He told investors in November that he felt good but knew he was “playing in extra innings.”
“It’s just fun to be a part of it,” said Jeff Farmer, a 59-year-old public safety worker from Omaha, at an exhibit hall where Berkshire wares were for sale on Friday. “We just want to hear that the company is on the same trajectory and hear about what they are forecasting for the future.”
At a downtown arena, Buffett and Vice Chairman Greg Abel, 61, will answer about five hours of questions. Vice Chairman Ajit Jain, 72, will also join. Abel was designated Buffett’s successor as chief executive in 2021.
“I want to hear from Greg Abel,” said Min Zhuang, 51, who drove seven hours from Chicago to attend the meeting and has owned Berkshire shares for over a decade.
“I want to see what kind of person he is, what his vision is for the company and if it’s different from Buffett’s. I am not afraid of change.”
Investors are focused on how the conglomerate will evolve as it faces challenges including how best to grow without overpaying for acquisitions, whether to pay a dividend and how to deploy the $167.6 billion of cash on hand at year-end.
The shareholder meeting is also the first since Charlie Munger, Buffett’s longtime friend, business partner and foil, died in November at age 99.
Munger was known for laconic and acerbic comebacks to Buffett’s often lengthy appraisals about Berkshire, the economy, Wall Street and life.
“It’s going to be hard for Warren to not have Charlie there,” said Paul Lountzis, president of Lountzis Asset Management, attending his 32nd Berkshire meeting.
SUCCESSION TOP OF MIND Berkshire is a $862 billion conglomerate with dozens of businesses including BNSF railroad, Geico car insurance, Dairy Queen and Fruit of the Loom. It also owns well over $300 billion of stocks, close to half of which is Apple (NASDAQ:).
In the last year, Berkshire’s stock is up 23%, trailing the ‘s 25% gain. Over the last decade, Berkshire rose 218% compared with the S&P’s 172% gain.
Buffett is expected to face a wide array of questions on Saturday on everything from major investments such as Apple and Occidental Petroleum (NYSE:) to how elevated interest rates have affected the company. “I want to see Warren’s energy,” said Steven Check, president of Check Capital Management, attending his 27th meeting. “It’s good that Greg and Ajit will be out front.” Berkshire will on Saturday also release first-quarter results while shareholders will vote on six proposals about climate, diversity and China. Buffett opposes all six. The weekend features opportunities for shareholders to buy goodies such as Berkshire T-shirts and Squishmallows toys at exhibits featuring Berkshire-owned companies. Ruth Gearhart, 72, from Omaha, filled her bags with See’s Candies plus tongs and spatulas from Pampered Chef. A 15-year shareholder, Gearhart said she was mainly concerned with what Buffett might say regarding his succession. “I trust him,” she said. “He’s a brilliant man and he has a lot of brilliant people. He will get us through this. I’d hate to see him go, but I think they prepared for it well.”
Read the full article here
