By Jonathan Stempel and Koh Gui Qing
OMAHA, Nebraska (Reuters) – Warren Buffett will take center stage at Berkshire Hathaway’s annual meeting on Saturday as shareholders descend on the famed investor and his expected successor.
The meeting is the 60th for Buffett, 93, since he took over Berkshire in 1965. He has largely stopped appearing in public to talk about the company. He told investors in November that he felt good but knew he was “playing in overtime.”
“It’s just fun to be a part of it,” said Jeff Farmer, a 59-year-old public safety worker from Omaha, in an exhibit hall where Berkshire goods were on sale Friday. “We just want to hear that the company is on the same trajectory and hear what they predict for the future.”
In 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 appointed as Buffett’s successor as CEO 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 stock for more than a decade.
“I want to see what kind of person he is, what his vision is for the company and whether it is different from Buffett’s. I’m 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 use its $167.6 billion in cash available at the end of the year can be deployed.
The shareholders’ meeting is also the first since Charlie Munger, Buffett’s longtime friend, business partner and foil man, died in November at the age of 99.
Munger was known for his laconic and sharp comebacks to Buffett’s often lengthy assessments of Berkshire, the economy, Wall Street and life.
“It will be difficult for Warren not to have Charlie there,” Paul Lountzis, president of Lountzis Asset Management, said at his 32nd meeting in Berkshire.
TOP OF MIND SUCCESSION Berkshire is an $862 billion conglomerate with dozens of companies, including BNSF Railway, Geico auto insurance, Dairy Queen and Fruit of the Loom. It also owns more than $300 billion in stock, almost half of which is Apple.
Over the past year, Berkshire shares are up 23%, behind the 25% of the Standard & Poor’s 500. Over the past decade, Berkshire is up 218%, compared to the S&P’s 172% gain.
Buffett is expected to face a wide range of questions on Saturday about everything from major investments like Apple and Occidental Petroleum to the impact of high interest rates on the business. “I want to see Warren’s energy,” said Steven Check, president of Check Capital Management, at his 27th meeting. “It’s good that Greg and Ajit are at the front.” Berkshire will also report first-quarter results on Saturday, while shareholders will vote on six proposals on climate, diversity and China. Buffett is against all six. The weekend offers shareholders the opportunity to purchase goodies such as Berkshire T-shirts and Squishmallows toys at exhibits from Berkshire-owned companies. Ruth Gearhart, 72, of Omaha, filled her bags with See’s Candies plus tongs and spatulas from Pampered Chef. Gearhart, a shareholder for 15 years, said she was particularly concerned about what Buffett would say about 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 wouldn’t like to see him leave, but I think they have prepared well for it.”
(Reporting by Gui Qing Koh and Jonathan Stempel; Editing by Ira Iosebashvili, Megan Davies and Cynthia Osterman)
