Berkshire investors hope for Buffett's guidance at annual meeting with tariffs shaking markets, economy
Warren Buffett has been mum about tariffs and the recent market turmoil, but will finally speak his mind when the 94-year-old investment legend kicks off Berkshire Hathaway's annual shareholder meeting on Saturday.
Tens of thousands of rapt shareholders will descend on Omaha, Nebraska this weekend for the annual gathering dubbed "Woodstock for Capitalists." This year's meeting marks the 60th anniversary of Buffett leading the company, and is the second without Buffett's long-time partner Charlie Munger, who died in late 2023.
The biggest event in the Cornhusker State next to a Nebraska-Oklahoma football game, this year's meeting comes as markets have turned uncertain after President Donald Trump's aggressive rollout of the highest tariffs on imports in generations. (Many were suspended for 90 days afterward.) Wall Street economists left and right are sounding the alarms that a recession may be in the offing, as recent data pointed to signs of economic weakening.
"Because Berkshire owns so many businesses, they're basically on the front lines of everything in terms of the economy falling off. Is it even worse than what the numbers are already showing?" said Steve Check, founder of Check Capital Management, which counts Berkshire as its largest holding. "I hope, more than anything, that he speaks out against the way tariffs have been done. Everyone is looking for what Warren Buffett has to say."
The "Oracle of Omaha" may have already let his actions do the talking. Berkshire has sold more stock than it's bought for nine straight quarters, dumping more than $134 billion worth in 2024. That was mainly due to reductions in Berkshire's two largest equity holdings — Apple and Bank of America. As a result of the selling spree, by December Berkshire's enormous pile of cash had grown to yet another record, at $334.2 billion.
The world is eager to hear if Buffett, the most famous advocate of value investing, used the April market meltdown to hunt for bargains and lay the groundwork for deals. Although Buffett doesn't make predictions of short-term market direction, investors will listen closely for any signals of his continued confidence in the U.S. economy — despite the tariff shock.
"I think the big question on everyone's mind is what will Warren do with the pile of cash that they are sitting on and, more specifically, when can it be deployed, as he can help investors gauge when the all clear sign is lit," said David Wagner, a portfolio manager at Aptus Capital Advisors and a Berkshire shareholder. Many investors, he noted, "tend to view Warren as the north star."
Buffett will make a few introductory remarks at 9am ET Saturday, followed by an hours-long question-and- answer panel. Buffett's designated successor, Greg Abel, and Berkshire's insurance chief, Ajit Jain, will join Buffett on stage in the morning, with Buffett and Abel alone in the afternoon. The Q&A session will be broadcast on CNBC and webcast in English and Mandarin.
Shareholders are also curious for Buffett to explain his motivation in slashing his longtime Apple stake. After a head-turning selling spree for four quarters in a row, Berkshire's Apple holding has stayed at an even 300 million shares since the end of September, leading many to speculate that Buffett is done selling the stock for the time being.
At last year's annual meeting, Buffett suggested that the sale was for tax reasons following sizable gains. He also implied that selling down Apple could be tied to his wanting to avoid a higher tax bill in the future if rates went higher to fund the yawning U.S. fiscal deficit. With a change in government in Washington, shareholders want to hear Buffett's reasoning today.
"You can't use that explanation anymore because it clearly does not apply," said David Kass, a finance professor at the University of Maryland. "If he sold more, it would indicate that he probably felt it was fully valued, or Warren Buffett being the genius that he is, he was able to see ahead at some of the risks that could face Apple, in case there's a trade war and tariffs."
Berkshire's first-quarter earnings report, due Saturday morning, will show the conglomerate's top equity holdings, which could give investors a hint as to whether the Apple stake was adjusted again.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
2 hours ago
- CNBC
CNBC's The China Connection newsletter: AI hits an already weak jobs market
China's eagerness to adopt artificial intelligence comes just as economic growth is slowing, putting millions of routine jobs at risk. "I'm planning to get rid of 360 [Security Technology's] entire marketing department. This way the company can save tens of millions a year," founder and chair Zhou Hongyi said in a Chinese-language video on Friday night, translated by CNBC. It's since been viewed more than 191,000 times on popular Chinese platform Weibo alone. Zhou, who has nearly 12 million followers on Weibo, said he's attempting to use the company's forthcoming generative AI tool to prepare a press conference for the product by himself in five days. The AI agent plus search tool is due for release on Wednesday. Whether or not it's just another sales ploy by Zhou, who goes by the moniker "Red Shirt Big Uncle Zhou Hongyi," the video captures an emerging reality: companies pressured to cut costs may increasingly replace jobs with AI. Worrying signs are piling up. Last week, U.S. financial giant Citi said it's cutting 3,500 tech jobs in China by October. U.S.-based Anthropic CEO Dario Amodei told Axios last month that AI could lead to unemployment rates of 10-20% over the next one to five years. In China, more companies are discussing AI-driven efficiencies, especially in marketing and coding. Food delivery giant Meituan told investors in late May that about 52% of new code was generated by AI, up from 27% disclosed in March. Big Chinese tech companies are pointedly asking for new young recruits to have AI skills, said Shu Weibing, partner and COO at HangHang AI. "If a student doesn't know how to use AI, then it will be very hard to get a job," Shu said in Mandarin, translated by CNBC. HangHang AI focuses on AI skills training. On June 6, it launched a "Global AI" platform to help entrepreneurs get initial funding for AI projects, even if they are still working a day job. So far, the platform has 70 investors participating and at least 50 projects on board, Shu said. He added that the goal is to invest in 1,000 projects over three years, with each one receiving 10,000 yuan from three backers, totaling 30,000 yuan to jump-start each project. Chinese authorities have encouraged efforts to embrace AI and robots, while increasing support for employment. The Ministry of Finance announced on Tuesday that it has allocated 66.74 billion yuan ($9.29 billion) for employment-related subsidies this year. On Monday, the Ministry of Industry and Information Technology and the Ministry of Civil Affairs announced a two-year pilot program to test the use of robots for senior citizen care. To be sure, AI isn't about to suddenly hit every single industry. But since the Covid-19 pandemic, a persistent story, seen on Chinese social media and in casual conversations, is one of job uncertainty. Record graduates. More people getting some support from their parents and pursuing higher degrees. Companies cutting wages, clawing back bonuses and closing departments, if not shutting down altogether. Individuals and businesses have turned to social media and selling products via livestream, where competition is still fierce but the potential for overnight success remains. Complicating the job market further is a local culture that prizes work, even if it means regular overtime and weekend conferences. The unhealthy competition is most apparent in China's electric car market, where fierce competition has led to a race to the bottom, prompting government warnings to stop what's colloquially known as "neijuan," or involution. That's not even accounting for the economic impact of escalating trade tensions, which resulted in a 34% plunge in China's exports to the U.S. last month, official data showed Monday. About 16 million jobs in China are tied to U.S. exports, Goldman Sachs has estimated. Monthly business surveys for May showed contraction in the labor market across the board. The data indicate a situation rarely seen in the past decade, Goldman Sachs' Hui Shan pointed out in an analysis published last week. "Labor markets are very weak, especially in construction and among small businesses." But "labor market weakness could be a catalyst" for more stimulus, the report said. China's top leaders typically hold a policy meeting in late July. Mark Smith, CEO of mineral development company NioCorp, says that the U.S. needs to find a way to get along with China for its supply of heavy rare earths while the former builds up its supply chain, and that stockpiling of critical minerals is unlikely to be effective, as China is the sole supplier. Robin Xing, Chief China Economist at Morgan Stanley, discussed the ongoing differences between the U.S. and China, ranging from trade to EVs, and how that affects sentiment in China. Meituan's Keeta unit launched drone deliveries in Hong Kong, extending its existing routes in Mainland China. Meituan's Vice President Yinian Mao spoke with Emily Tan about the company's drone delivery dreams and how they fit into its broader operations. U.S.-China agree on framework following London talks. The U.S. and China have reached an agreement on trade, representatives from both sides said Wednesday after a second day of high-level talks in London. U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone late last week, stabilizing what had become a fraught relationship with both countries accusing each other of violating the Geneva trade agreement. China's consumer price index fell in May. It was the fourth-straight negative read. Core CPI, which excludes food and energy prices, did recover from a high last seen in January. Trade data pointed to modest growth in exports in May, while imports fell far more than expected, another sign of weak domestic demand. U.S. has exaggerated Huawei's chip developments. So says the Chinese telecommunications company's CEO, in an interview published on the front page of the Chinese Communist Party's newspaper on Tuesday. Ren Zhengfei said while Huawei chips are one generation behind those of U.S. peers, the company is finding ways to offset the gap. Chinese and Hong Kong stocks climbed in early trade on Wednesday after leaders from the U.S. and China said they have reached an agreement on trade. Mainland China's CSI 300 was up 0.8% to its highest level in over two weeks, while Hong Kong's Hang Seng Index — which includes major Chinese companies — rose 0.6% as of 11 a.m. local time. The CSI 300 has lost roughly 0.97% while the Hang Seng Index has gained over 21.54% so far this year. June 11: Xpeng G7 car launch June 13: Chinese Vice Premier He Lifeng is scheduled to depart the U.K. after U.S.-China trade talks and other meetings June 16: China retail sales, industrial production and investment data for May
Yahoo
2 hours ago
- Yahoo
Jailed Wisconsin Man Fooled ICE Barbie With Forged Death Threats Against Trump
A Milwaukee man awaiting trial on criminal robbery charges had an interesting defense strategy: framing one of his victims for threatening to murder President Trump. On Monday, Demetric D. Scott, 42, who was already in jail on charges of armed robbery and aggravated battery, was charged with witness intimidation, identity theft, and bail jumping after police discovered he'd forged several letters threatening the president's life under the name of Ramón Morales-Reyes. Scott admitted to police that he'd forged the letters not because he had any interest in harming the president, but because he'd hoped they would lead to the deportation of Morales-Reyes, who was set to testify at his upcoming robbery trial. Scott was arrested in 2023 after being captured on a Ring camera stabbing Morales-Reyes with a corkscrew while attempting to steal his bike, the Milwaukee Journal-Sentinel reported. The phony letters already made national headlines when DHS Secretary Kristi Noem publicly celebrated the arrest of Morales-Reyes, despite police quickly expressing suspicion that the letters had been forged. According to Milwaukee police, on May 21, the offices of the Wisconsin Attorney General, Milwaukee Police Chief, and Milwaukee ICE headquarters each received handwritten letters signed in Morales-Reyes' name and with his home listed as the return address, containing threats against the president's life. The letters read in part, 'I will self deport myself back to Mexico, but not before I use my 30 yard 6 [rifle] to shoot your precious president in his head—I will see him at one of his big ralleys.' The following day, on May 22, police arrested Morales-Reyes, 54. He was quickly transferred into DHS custody due to his undocumented status. The arrest earned praise from Noem, who wrote, 'Thanks to our ICE officers, this illegal alien who threatened to assassinate President Trump is behind bars.' However, Milwaukee police weren't certain they had the right man. Not only did a handwriting test quickly reveal that Morales-Reyes' penmanship didn't match the letters, but they also discovered he is not fluent in English. When asked if someone may have a motive to frame him for the crime, Morales-Reyes mentioned his plans to testify against Scott. Upon further investigation, police discovered that Scott had made explicit plans to forge and mail the letters in recorded jail phone calls dating back nearly a month, NBC News reported. In one call, made five days before the letters were received, Scott said, 'This dude is a goddamn illegal immigrant and they just need to pick his ass up… if he gets picked up by ICE, there won't be a jury trial, so they will probably dismiss it that day. That's my plan.' Since his arrest, Scott has had a pattern of mischievous letter-writing. According to the Milwaukee Journal Sentinel, in an August 2024 letter to Milwaukee County Circuit Judge Kristy Yang, the judge presiding over his case, Scott had threatened to turn her courtroom 'into a circus,' adding, 'This case will never make it to jury trial.' After Morales-Reyes identified Scott as a suspect in the forgery, police searched his jail cell, finding a pen matching the ink used in the letters, an envelope, and a note Scott had written reminding himself to find out the address of the attorney general's office. Scott eventually confessed during police questioning on May 30. However, Morales-Reyes remains in ICE custody at Dodge County Jail in Juneau, Wisconsin, and is now facing removal proceedings. Responding to initial reports that the letters were forged, a senior official from the Department of Homeland Security told The Daily Beast last week that Morales-Reyes will remain in custody because he was 'determined to be in the country illegally and [has] a criminal record.' According to a DHS press release, Morales-Reyes has previously been arrested for felony hit and run, criminal damage to property, and disorderly conduct with a domestic abuse modifier. The press release also claimed Morales-Reyes entered the U.S. illegally nine times between 1998 and 2005. Morales-Reyes' attorney, Kime Abduli, told the Milwaukee Journal Sentinel that because he is still a witness in Scott's robbery trial, which is set for July 14, Morales-Reyes is in the process of applying for a U-visa, which allows undocumented immigrants to remain in the country if they are testifying in a criminal case.
Yahoo
2 hours ago
- Yahoo
Anti-ICE protesters express anger, heartbreak at Trump immigration crackdown
Hundreds of protesters waving American and Mexican flags and carrying signs that ranged from heartfelt to profane marched through downtown Milwaukee streets June 10 to protest federal immigration operations and decry the crackdown on demonstrations in Los Angeles by President Donald Trump's administration. The crowd made their way to the U.S. Immigration and Customs Enforcement offices. Those in the crowd said it was important to speak out and express their opposition to large-scale ICE arrests. Alan Chavoya, a protester with the Milwaukee Alliance Against Racist and Political Repression, said earlier in the day he fielded phone calls June 10 from several people hearing about ICE arrests in the area. "It's devastating," he said. "It's important to be out here and support, and it's also important to be bold about this." In the crowd were two 22-year-old women who met at the protest, Natalia Murillo, who draped a Mexican flag around her shoulders, and Alejandra Martinez. Murillo held a sign that read, "You can't love the culture and not support the people." "It's been stressful. You don't know when they're going to come into your cities and neighborhoods," Martinez said. Murillo said she was concerned about people being arrested by ICE who have legal status. "It's scary to see what's going on. We come here for a better life, and this is how we're getting treated?" she said. An arrest of an immigrant June 10 by federal agents on Milwaukee's south side added to a sense of anxiety in the city's Latino community over immigration enforcement operations. A spokesperson for ICE said the agency could not share information about whether agents were operating in Milwaukee. That arrest came as massive protests against recent ICE raids erupted in Los Angeles over the weekend and have since spread to other cities. Trump ordered National Guard troops to the Los Angeles area. The march in Milwaukee spanned roughly two city blocks and included dozens of young Latino adults as well as people from a range of ages and backgrounds. Some marchers held handmade signs that read, "We speak for those who can't" and, "Immigrants are welcome here." Other popular slogans urged authorities to keep families together, to keep ICE out of Milwaukee and to abolish the agency altogether. "No justice, no peace, we want ICE off our streets," marchers chanted. Signs and chants alike reflected the depth of anger at Trump's immigration crackdown and at ICE. Some posters referred to Trump as a parasite, or a pig. Others said "Dump Trump," and many chose similar phrases with expletives, in both English and Spanish. Rose Walters, a retiree from South Milwaukee, said she was "just livid" at several Trump policies. She was concerned about her Social Security benefits as well as immigration arrests that, in her view, lacked due process. She began attending protests for the first time in February. "I simply am fed up," she said. "It's ridiculous." Daniel Rivera, 27, of Michigan, was visiting Milwaukee and was walking past Cathedral Square Park when he noticed people were gathering for a protest about immigration. He jumped in because he he said feels strongly about the issue. "Immigrants are the backbones of this nation," he said, adding that more "dialogue across the aisle" was needed. There was a sense from several marchers that the Latino community's contributions and culture were being cast aside, and that politicians and pundits were conflating the entire community with the criminal actions of a few. A 40-year-old Milwaukee mother named Angelica, who asked for her last name not to be used, brought her two daughters and her niece to the protest. She wanted to stand up for Mexican Americans like her family, she said. And speaking about recent ICE efforts to expand arrests, she said, "It's heartbreaking. It causes me to question, what am I proud of as an American?" Nayleth Sedano, 30, of Milwaukee, arrived in the U.S. at age 4, and her family got legal status. She understands how "scary" moments like this can be for immigrant families. She has been especially concerned about the effect of that fear on children, who may be worried about ICE showing up at their graduation ceremonies. "If you have a heart, that's traumatizing for anybody," she said. The organizing groups included the Party for Socialism and Liberation's Milwaukee chapter; Comité Sin Fronteras, or "Committee Without Borders" — the young adult arm of local immigrant rights group Voces de la Frontera — Codepink Milwaukee, and 50501 Milwaukee, part of a national anti-Trump protest movement called 50501. The 50501 group, short for "50 protests, 50 states, 1 movement," is the organizer of the so-called "No Kings" rallies taking place across the country. One is scheduled for noon June 14 in Cathedral Square Park as part of a nationwide day of protest. Several additional "No Kings" protests are scheduled for the same day across southern Wisconsin, including in Brookfield, Cedarburg, Racine, Kenosha, Watertown and Madison, according to the organizer's website. They were planned to coincide with Trump's military parade in Washington, D.C., which is being held to honor the Army's 250th birthday and coincides with Trump's 79th birthday. Brian Dunleavy, a protester from Milwaukee, said he hopes both protests show that Milwaukeeans are standing in solidarity with others protesting around the country. 'I hope people see this and see (that) we've got your back," Dunleavy said. "We do not think what's going on in Washington and other parts of the country is OK, and we're going to be here for you." Sophie Carson is a general assignment reporter who reports on religion and faith, immigrants and refugees and more. Contact her at scarson@ or 920-323-5758. This article originally appeared on Milwaukee Journal Sentinel: Anti-ICE protesters in Milwaukee decry Trump immigration crackdown
