Berkshire Hathaway Annual Meeting: Warren Buffett Closes the Meeting to Standing Ovation

The days-long event has been called the "Woodstock for Capitalists" and in the past has featured celebrities such as Bill Gates and dancing characters from the various companies in the BH portfolio, including the GEICO gecko.

Follow along with the live stream below and reports from Investopedia's reporting team.

Source: CNBC via YouTube

Buffett Closes the Meeting With a Joke to a Standing Ovation

May 04, 2024 04:20 PM EDT

In what seemed like an echo of Warren Buffett's long-time business partner, the Berkshire chief executive officer wrapped up the meeting with a joke.

"I not only hope that you come next year, but I hope I come next year," he said with a laugh.

The crowd roared with applause and whistles, as they rose to their feet to give Buffett a standing ovation.

Current Economic Tumult Isn't Fed Chair Jerome Powell's Fault, Buffett Said

May 04, 2024 04:20 PM EDT

Inflation's reignition is grabbing a lot of headlines, the national deficit should get more attention, Warren Buffett said.

Federal Reserve Chair Jerome "Jay" Powell and his colleagues have been attempting a tough balancing act. The Fed has raised its influential fed funds rate to a 22-year high since March 2022 to stem inflation. That has pushed up borrowing costs on all kinds of loans, making it harder for individuals and businesses to spend.

The Fed hoped interest rate pressure would discourage spending and allow supply and demand to rebalance, however in recent months consumers have kept spending and price pressures have begun to rise again.

The media loves to cover the Federal Reserve because there is always action at the central bank and economists love to forecast officials' next steps, Buffett said. However, the fiscal deficit is what should be focused on, he added.

"Jay Powell is not only a great human being, but he's very, very wise man," Buffett said. "But he doesn't control fiscal policy. ...That's where the trouble will be if we have it."

AI May Have Benefits for Some Of Berkshire's Portfolio Companies, Abel Says

May 04, 2024 03:56 PM EDT

Generative artificial intelligence is a risk for anything labor intensive, CEO Warren Buffett said in response to a question about which of Berkshire Hathaway's companies are at risk from the technology's development.

However, Buffett said he has faith Berkshire's subsidiaries will figure it out.

"We've got smart people," he said.

Vice Chair Greg Abel said that it actually may benefit some of their portfolio companies.

"When we think of AI in a lot of the business units, we're truly trying to think, 'How does it make us more efficient, more effective?'" Abel said.

Abel Will Likely Make Berkshire's Stock Investing Decisions After Buffett, CEO Says

May 04, 2024 02:54 PM EDT

When asked about who will be responsible for stock management when Abel takes the reins as CEO, Buffett said that wasn't up to him, but he had thoughts on the matter.

"I would say that decision actually will be made while I'm not around," Buffett said. "If I were on that board and we were making a decision, knowing Greg, I would leave the capital allocation to Greg. He understands businesses extremely well, and if you understand businesses, you understand common stocks."

Shareholders Came From Across the Globe to Ask Questions of Buffett

May 04, 2024 02:52 PM EDT

After returning from the lunch break, more questions rolled in from shareholders, some of whom were from other countries.

Something that stands out about this year's meeting is the amount of younger, international shareholders in attendance.

Gen Z and younger millennial shareholders from countries like Germany, China, Japan, and India were buzzing around throughout the convention center, buying BRK merch and taking selfies and group photos.

-Caleb Silver

Will Telsa Self-Driving Technology Decrease the Number of Auto Accidents? Berkshire Hathaway Thinks Not

May 04, 2024 01:02 PM EDT

Just ahead of the lunch break, Warren Buffett and Ajit Jain talked about how Tesla's self-driving technology will impact insurance claims.

One shareholder asked if self-driving technology would make Berkshire's insurance business less profitable. Buffett compared Tesla's (TSLA) self-driving technology to developments like Uber, which people thought would decrease accidents. So far, it has not made a significant impact on accident statistics, he said.

"I think what needs to be factored in as well is, the repair cost of each one of these accidents has skyrocketed," Jain added. "So if you multiply the number of accidents times the cost of each accident, I'm not sure that total number is down as much as Tesla would like us to believe. Tesla has been toying with the idea of writing insurance directly or indirectly. And so far, it hasn't been much of a success."

Cash Hoards May Sit Until 'Attractive' Opportunity Presents Itself, Buffett Said

May 04, 2024 12:47 PM EDT

With a large cash hoard, shareholders were looking to see how Warren Buffett is looking to deploy capital.

According to their first quarter filing released this morning, the company holds $36 billion in cash and $153 billion in Treasurys, for a total cash hoard of $189 billion.

When asked what Berkshire Hathaway plans to do with that, Buffett was frank in his response.

"I don't think anybody's sitting at this table has any idea of how to use it effectively and therefore we don't," he said. "...We only swing at pitches we like."

"It isn't like I have a hunger strike or something like that going on," he continued. "It's just, things aren't attractive and there are certain ways that can change. We'll see whether they do."

Succession Plans Are Seemingly Not a Concern For Buffett

May 04, 2024 12:37 PM EDT

In light of Charlie Munger's passing and Warren Buffett's age of 93, many investors have had an eye toward success plans.

Buffett alluded several times to Vice Chair Greg Abel taking over the company during the annual meeting on Saturday.

Abel became vice chairmen of the company in 2018 alongside Ajit Jain, and the pair have taken on a larger, more public role over the past few years. One shareholder asked about Berkshire Hathaway's succession plans beyond Buffett's replacement at the annual meeting.

"We've really got the problem solved for the next 20 years unless something untoward happens then the directors need to find probably within our own organization," he said.

"Greg has to tell the directors about what should be done if anything happens to him. And that's not an easy thing to do," he said.

Succession is important to shareholders because Buffett and Munger were known for a particular brand of business savvy and partnership. Many are seemingly looking to see if the company can maintain its success after Buffett.

Jain and Abel Have Big Shoes to Fill In Munger's Absence

May 04, 2024 12:14 PM EDT

For 60 years, shareholders of BRK have been making the annual pilgrimage to Omaha, Nebraska to hear words of wisdom from—the odd couple who built the company into the multi-billion-dollar conglomerate it is today.

This year's shareholders meeting is markedly different without him. Munger, who used to sit next to Warren on the stage, was always ready with the one-liner punch line to solidify Buffett's point or answers to shareholder questions. Munger had that unique ability to tell it like it is, in very few, carefully chosen words, that always left the crowd in stitches.

This year, seated next to Buffett, is Ajit Jain, the head of Berkshire's insurance businesses, and Greg Abel, who runs all non-insurance businesses. While they have excellent track records running their respective operations, they are business operators, not entertainers.

Loathe to upstage Buffett, they focused on the facts and figures behind their respective operations. The pair opened up some when talking about their transitions into their vice chair roles.

"From my perspective, the transition is worked out very, very well," Jain said. "But I think the credit really goes to how Warren has handled the situation."

-Caleb Silver

Munger's Presence is Missed in the Arena, Audience Says

May 04, 2024 12:04 PM EDT

The 19,000-seat arena is packed, with attendees filling out even the sections behind the stage to listen to the "oracle of Omaha."

Shareholders laughed at Warren Buffett's jokes—especially when he handed the question off to Charlie Munger out of habit, in a bittersweet moment.

Returning attendees in the crowd said they're not sure they'll keep making the annual trip to Omaha in the future, concerned that the character of the event just won't be the same.

-Kara Greenberg

No One Can Replace Vice Chair Ajit Jain, Buffett Says

May 04, 2024 11:41 AM EDT

Daniel Acker/Bloomberg via Getty Images

The insurance operation that Vice Chair Ajit Jain has created will continue to keep Berkshire Hathaway ahead of insurance competitors when he is no longer with the company, Warren Buffett said.

In reaction to a question from a shareholder, Buffett sang Jain's praises and said the company has a succession plan for the insurance segment, but no one will ever be as good as his current vice chair of insurance.

Jain pointed to Apple CEO Tim Cook saying, "everyone is replaceable" and Cook was an example of being successful at that.

"I will also add that our board is conscious of the succession issue, not only at Warren's level, but also at my level," Jain said. "And every year they have me sitting in front of them answering questions and having me share my ideas with them in terms of what will happen to the operations if I get hit by a truck."

AI is a Genie That May Not Be Able to Be Rebottled, Buffett Says

May 04, 2024 11:19 AM EDT

Berkshire notoriously doesn't invest in generative AI, and when asked about his thoughts on the sector, he said he doesn't know anything about the technology.

Earlier this year, we looked at an interesting absence in Berkshire's portfolio. In a fashion true to Buffett and Munger's investment strategy, Berkshire Hathaway hasn't invested in the hottest stock in recent months—AI chipmaker Nvidia (NVDA).

Today, Buffett compared generative AI to nuclear weapons.

"Last year, I said we let the genie out of the bottle when we developed nuclear weapons and that genie has been doing some terrible things lately and I don't know how to get the genie back in the bottle. The power of that genie is what scares the hell out of me," he said. "And on the other hand, I don't know any way to get the genie back in the bottle. And AI is somewhat similar."

He noted that the technology has enormous potential, but that potential also extends to scammers. He described a situation in which he saw an AI-generated video of himself that could have fooled his wife and daughter in which he said things he would never say.

"We may wish we'd never seen that genie, or we may do wonderful things," he said.

Once Again, Buffett Says Companies Should Pay Their Fair Share of Taxes

May 04, 2024 11:02 AM EDT

Warren Buffett has never been one to shy away from talking about taxation on companies and high-net-worth individuals. Today's meeting was no different.

"Almost everybody I know pays a lot more attention to not paying taxes," Buffett said. "We don't mind paying taxes at Berkshire."

Buffett said he looks at taxes as if the government owns a part of all Berkshire Hathaway's earnings. He also said he thinks higher taxes are likely in the future.

"[The federal government] may decide that someday they don't want the fiscal deficit to be this large because that has some important consequences, and they may not want to decrease spending," he said. "They may decide they'll take a larger percentage of what we earn, and we'll pay it."

Buffett is one of a few notable billionaires who vocally support higher taxation. In 2011, then-President Barack Obama proposed a tax change called the "Buffett Rule" after Berkshire's CEO said it was wrong that he paid a lower tax rate than his secretary.

"We sent in over $5 billion to the U.S. federal government—and if 800 other companies would have done the same thing, no other person in the United States would have had to pay a dime of federal taxes other income taxes," he said in the annual meeting today.

When Asked About Cutting Apple Holdings, Buffett Compares to Cash

May 04, 2024 10:45 AM EDT

When asked if Berkshire Hathaway has changed its views on Apple as an attractive business, he dismissed the notion.

"Unless something dramatically happens that really changes the capital allocation strategy, we will have Apple as our largest investment," Buffett said. "But I don't mind at all, under current conditions, building the cash position."

The company revealed in SEC filings earlier in the day that it cut its position in the tech giant.

Buffett Talks First-Quarter Earnings Report

May 04, 2024 10:33 AM EDT

"We had a better-than-average quarter," Buffett said of the first quarter earnings.

He described the success the company has seen in the insurance segment in the first quarter and also touched on railroad capacities. He reiterated his focus on operating earnings to measure Berkshire's performance.

"The goal of Berkshire is to increase the operating earnings and decrease the shares outstanding," he said. "It's that simple to describe, it's not quite so simple to pull off necessarily."

To read about the details of the earnings report, click here.

Meeting Kicks Off With Annual Movie, And For The First Time It's Being Streamed Live

May 04, 2024 09:56 AM EDT

Dan Brouillette/Bloomberg via Getty Images

Berkshire Hathaway's annual meeting has officially kicked off, starting with a new twist on a long-standing tradition.

The company's annual movie kicked off the meeting with a tribute to Warren Buffett's long-time business partner Charlie Munger, who died in November at age 99. The movie started with clips of quotable moments throughout Munger's career.

"It's extraordinary how resistant some people are to learning anything," Munger quipped to audience laughter in a clip.

A number of the clips showed Munger throughout the years making jokes or snarking about business as Buffett laughed by his side.

In past years, the movie was only viewed by in-person attendees. It was included in the live stream on CNBC for the first time this year.

Tim Cook in Attendance As Berkshire Reveals Big Cut To Its Apple Shareholding

May 04, 2024 09:39 AM EDT

Apple (AAPL) CEO Tim Cook has been spotted at the Berkshire Hathaway annual meeting on the floor.

That's interesting as Berkshire Hathaway disclosed in its SEC filing this morning it significantly cut its holdings in Apple in the first quarter. The company curtailed its holdings by about 13%, the filings said.

Apple is Berkshire's largest holding and Berkshire is Apple's largest shareholder.

Thousands of Shareholders Gather Ahead of Meeting's Kickoff

May 04, 2024 09:18 AM EDT

Kara Greenberg/Investopedia

Thousands of Berkshire Hathaway shareholders have queued up outside CHI Health Center Arena in downtown Omaha to enter the nearly 19,000-seat stadium.

Inside, an exhibit hall is set up with vendors for shareholders to peruse when they're not listening to Warren Buffett and his fellow Berkshire Hathaway executives speak.

Berkshire Grows Its Cash Hoard in the First Quarter

May 04, 2024 09:02 AM EDT

Ahead of the meeting, Berkshire Hathaway (BRK.A), (BRK.B) announced its latest quarterly earnings, reporting another record cash holding.

The company now holds $36 billion in cash and $153 billion in Treasurys, for a total cash hoard of $189 billion.

Investors will be looking at Buffett to provide some clues about where this money could be deployed or which pockets of the markets he finds attractive.

Buffett said in the company's annual letter this year that "only a handful of companies" in the U.S. met the Berkshire investment criteria, adding that "there are essentially no candidates," elsewhere in the world.

Operating earnings at the conglomerate rose to $11.2 billion in the first quarter of 2024, up from $8.06 billion in the same period a year ago. Net income, an ineffective gauge according to Buffett because of unrealized investment gains or losses, was $12.7 billion, down compared to $35.5 billion for the same period a year ago.

Read more about the details of Berkshire Hathaway's earnings report here.

-Kevin George

First Meeting Without Charlie Munger Will Shift Attention to Vice Chairs

May 04, 2024 07:55 AM EDT

This is the first annual meeting without Buffett's long-time business partner Charlie Munger, who died at age 99 in November.

Vice Chairmen Greg Abel and Ajit Jain will thus be in the spotlight, with investors looking for details about succession planning and how the company may prepare for life after its two most successful leaders.

Buffett has credited Munger as the "architect of Berkshire" for developing the company's strategy of buying up "wonderful businesses purchased at fair prices and [giving] up buying fair businesses at wonderful prices."

At the annual meeting, investors are likely to feel Munger's absence. In the past, he and Buffett would regularly answer several hours of investor questions at these events.

Still, the 2020 annual meeting, held virtually and without Munger in attendance, means there is precedent for what Berkshire shareholders' annual pilgrimage may look like with only Buffett on stage.

"It particularly doesn't feel like an annual meeting because my partner of 60 years, Charlie Munger, is not sitting up here," Buffett had said at that time, adding that most people in attendance "really come to listen to Charlie."

-Nathan Reiff

What To Expect From Today's Berkshire Hathaway Annual Meeting

May 04, 2024 07:00 AM EDT

The company will release its earnings at 8 a.m. ET before the Saturday festivities begin.

Programming will kick off at 9:45 a.m. ET with the company's annual movie. In past years, the movie was only able to be viewed in-person but it will be included in this year's live stream on CNBC. After the movie, Buffett, Vice Chairs Greg Abel and Ajit Jain will answer shareholder questions. Hearing from Buffett himself on the economy and investing is a main draw for many of the attendees and will take a large portion of the day.

After that, the company's annual meeting will commence, where shareholders will elect directors and vote on proposals like they would at any other shareholder meeting.