Latest news with #WoodstockforCapitalists'
Forbes
04-05-2025
- Business
- Forbes
Three Crucial Topics From The Berkshire Hathaway 2025 Annual Meeting
Though still sharp and more energized than last year, Warren Buffett stunned the massive crowd at ... More the annual meeting by announcing his plan to step down from the CEO role at Berkshire Hathaway at year-end. (Photo by) If it makes a difference to you that your stocks are down 15%, you need to find a new investment philosophy. – Warren Buffett Berkshire Hathaway's annual 'Woodstock for Capitalists' was held on Saturday, May 3. It was beyond a packed house on Saturday, with additional attendees spurred on by the 60th anniversary of Berkshire Hathaway as we know it. Warren Buffett, CEO and Chairman, and Greg Abel, Vice Chairman of Non-insurance, answered questions from shareholders for over five hours. Ajit Jain, Vice Chairman of Insurance, joined in answering questions for the first part of the meeting. Buffett spoke briefly about first-quarter earnings. He noted that Berkshire's insurance earnings were as good as they get in 2024, so starting less well this year is unsurprising. Operating earnings fell by 14% higher than last year's same quarter. Previously, Buffett has said that operating earnings are the 'most descriptive' way to view Berkshire since it removes the short-term volatility of market fluctuations in the net earnings. Berkshire Hathaway 1Q 2025 Earnings Insurance underwriting was the primary culprit behind the decline in operating earnings, with wildfire losses negatively impacting results. Other income also declined significantly, primarily due to accounting for foreign currency swings. Excluding insurance and the 'other' segment, operating earnings were 9% higher. Berkshire Hathaway Earnings By Segment Berkshire was a net seller of over $1.5 billion in publicly traded stocks, marking the tenth quarter in a row in which Berkshire trimmed its publicly traded stock portfolio. More details will be provided in the upcoming 13F filing. Through stock sales and earnings, Berkshire's cash hoard has reached over $342 billion. This is a record cash level on an absolute basis and relative to the size of Berkshire Hathaway. Berkshire Hathaway Cash Holdings Buffett said that Berkshire 'holds a lot more cash and Treasury bills than I would like.' He is always looking for investments, but 'things don't come along in an orderly fashion.' He'd like less cash on hand, even as low as $50 billion. 'Occasionally, we will be bombarded with opportunities that we will be happy we have the money for,' he said. Regarding the recent stock sell-off, Buffett said, 'This is not a huge move,' or a 'dramatic bear market.' He did note that Berkshire had recently come close to making a $10 billion purchase, but it did not happen. The first question of the day was about tariffs. Buffett did not directly answer the question, but said, 'You can make some very good arguments for the fact that balanced trade is good for the world.' He continued, 'There is no question that trade can be an act of war.' Buffett stated that more trade is better and that 'Trade should not be a weapon.' In response to a question about his views on DOGE, Buffett again spoke in more general terms. He said, 'The problem of how you control revenue and expenses in government is one that is never really solved, and is one that has hurt many civilizations.' Regarding the US's enormous fiscal deficits, he noted that 'We are doing something that is unsustainable.' Buffett said that the job of reducing costs 'should be done.' After being asked whether American exceptionalism is over, Buffett said, 'America has been in revolutionary change since it started.' He was clear in his views when he noted, 'I would not get discouraged.' Buffett made the most significant announcement at the end of the meeting, stating that he planned to step down from the CEO role at the end of the year, pending approval from the board of directors. He was recommending that Greg Abel assume the CEO role and that Greg should have the 'final word on operations or capital deployment.' Though it was not explicitly stated, Buffett would likely retain the Chairman title since he promised to be around to help. Buffett added that he had no intention of selling one share of Berkshire. He noted that it was an 'economic decision' since the 'prospects for Berkshire will be better under Greg than me.' While it was already clear that Abel was making most of the operational decisions, assuming the final responsibility for all capital allocation decisions is a significant change. Buffett's capital allocation decisions were a major force in the company's fantastic performance and in making Berkshire Hathaway what it is today. He transformed a textile company, destined for the trash heap of history, into the sixth-largest company in the S&P 500. While Buffett's mind was sharp and seemed more energized this year than last year's meeting, he is 94 years old. As much as the transition saddens many of us as the Buffett era ends, it is the correct long-term change to give Greg Abel time in the role while Buffett is still around. There will not be another Warren Buffett in my lifetime, but Greg Abel doesn't need to be Warren Buffett or Charlie Munger. He inherits a Berkshire Hathaway, which owns some outstanding businesses and a Fort Knox balance sheet.
Business Mayor
02-05-2025
- Business
- Business Mayor
60 years at Berkshire: See Warren Buffett's 'Woodstock for Capitalists' over the decades
In this seven image composite, shareholders gather prior to the start of the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S., on Saturday, May 1, 2010. Daniel Acker | Bloomberg | Getty Images Berkshire Hathaway 's annual meeting is far different — and larger — than it was six decades ago, when Warren Buffett took over what was then a failing Massachusetts textile company. Today's 'Woodstock for Capitalists' began with just a dozen attendees in 1965. Sixty years later, the Omaha, Nebraska gathering attracts as many as 40,000 people from around the world. Nowadays, attendees begin lining up outside the CHI Health Center in the early morning hours on Saturday to hear from Warren Buffett, the 94-year-old chief executive officer. Known as the Oracle of Omaha for dispensing investment wisdom, Buffett is also famous for sharing insights into business and strategy, not to mention advice on softer topics such as friendship and life, to a rapt audience. This year's shareholder meeting is Buffett's second without Charlie Munger, his close friend and business partner who died in 2023. Greg Abel, Berkshire Hathaway Energy chairman and Buffett's successor, will join him for questions on stage. Insurance Chief Ajit Jain will also join the pair for part of Saturday's question-and-answer event. The event has ballooned into a weekend-long array of activities, including a shopping event known as the 'Berkshire Bazaar of Bargains,' featuring products made by the conglomerate's subsidiaries. A 5-kilometer run and value investing conferences have become hallmarks of attendees' weekend itineraries. 'You've just got event after event after event,' said Christopher Bloomstran, president of Semper Augustus Investments Group. Bloomstran, who's attended the annual meeting for more than two decades, called it a 'rite of passage' for new investors. This year, the company is selling 5,000 volumes of a limited edition book, '60 Years of Berkshire Hathaway,' marking Buffett's tenure as CEO. Proceeds from an auction of copies signed by Buffett and author Carrie Sova will benefit the Stephen Center, a charity for homeless youth and adults in South Omaha. The meeting itself will look different than what many attendees remember from years past, according to the 2024 shareholder letter. Buffett will make opening remarks at 8 a.m. local time Saturday, but there will be no movie introduction, a popular feature in prior years. The question-and-answer period will only have a half-hour break and end at 1p.m., though the shopping area will remain open until 4 p.m. News outlets have covered the event for decades. The event will be broadcast exclusively by CNBC this year and webcast in English and Mandarin. Regular attendees often say there's a magic and camaraderie to the in-person experience that keeps them coming back to Omaha, where Berkshire is headquartered, despite being able to livestream the event at home. 'It really is special,' said Adam Mead, CEO of Mead Capital Management and author of 'The Complete Financial History of Berkshire Hathaway.' ''I'm not a religious person, but it has that feel of going to church.' The following are a collection of moments from meetings throughout the years compiled by CNBC in honor of Warren Buffett's 60 years leading Berkshire Hathaway. Berkshire Hathaway's CEO Warren Buffett (L) and his business partner Vice Chairman Charles Munger answer questions at a news conference May 4, 2003 in Omaha, Nebraska. Eric Francis | Getty Images Warren Buffett, chairman of Berkshire Hathaway, plays the ukulele for a crowd of shareholders at the Fruit of the Loom booth during the Berkshire Hathaway annual meeting in Omaha, Nebraska, Saturday, April 30, 2005. Eric Francis | Bloomberg | Getty Images In this seven image composite, shareholders gather prior to the start of the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S., on Saturday, May 1, 2010. Daniel Acker | Bloomberg | Getty Images Warren Buffett, chairman of Berkshire Hathaway Inc., sings a song with University of Nebraska cheerleaders during an event at the Berkshire Hathaway annual shareholders meeting in Omaha, Nebraska, U.S., on Saturday, May 5, 2012. Daniel Acker | Bloomberg | Getty Images Warren Buffett, chairman of Berkshire Hathaway Inc., holds a large ping pong paddle as he plays table tennis with Ariel Hsing, a member of the 2012 U.S. Olympic team, during an event at the annual shareholders meeting in Omaha, Nebraska, U.S., on Sunday, May 6, 2012. Daniel Acker | Bloomberg | Getty Images Warren Buffett, Berkshire Hathaway Inc. chairman and chief executive officer, right, talks with Bill Gates, billionaire and co-chair of the Bill and Melinda Gates Foundation, as they tour the exhibition floor during the Berkshire Hathaway Inc. annual shareholders meeting in Omaha, Nebraska. Daniel Acker | Bloomberg | Getty Images Caricatures of Warren Buffett, Berkshire Hathaway Inc. chairman and chief executive officer, and Charles Munger, vice chairman of Berkshire Hathaway Inc., appear on a special edition package of Heinz ketchup and mustard during the Berkshire Hathaway Inc. annual shareholders meeting in Omaha, Nebraska, U.S., on Saturday, May 2, 2015. Daniel Acker | Bloomberg | Getty Images The Brooks Invest in Yourself 5K Run at the 2018 Berkshire Hathaway Annual Shareholder's Meeting in Omaha, NE. David A. Grogan | CNBC Warren Buffett speaks with the media during the 2019 BHASM in Omaha, NE on May 4th, 2019. Gerard Miller | CNBC A salesperson wears pins of Warren Buffett, CEO of Berkshire Hathaway, and Vice Chairman Charlie Munger during the annual Berkshire shareholders meeting in Omaha, Nebraska, May 3, 2019. Johannes Eisele | AFP | Getty Images Display for Brooks showing Warren Buffett at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska. Yun Li | CNBC Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024. David A. Grogen | CNBC
