Warren Buffett and Berkshire Hathaway held their first annual meeting since the death of Charlie Munger, the longtime vice chairman and right-hand man. The meeting, dubbed “Woodstock for Capitalists,” was a tribute to Munger, who passed away in November at the age of 99. Shareholders gathered to hear Buffett’s wisdom and reminisce about Munger’s contributions to the company. The meeting opened with a video tribute to Munger, showcasing his life and best-known quotes from past meetings. The crowd gave Munger a standing ovation in recognition of his role as “the architect of Berkshire Hathaway.” Throughout the years, Munger and Buffett have worked together to transform Berkshire into a successful conglomerate.
Munger and Buffett shared the stage for the annual question and answer session that was a highlight of the meeting. Munger was known for his quick wit and straightforward responses, often contrasting with Buffett’s more lengthy explanations. Together, they navigated Berkshire’s growth and success by focusing on businesses they understood well and avoiding risky ventures. Despite Munger’s absence, shareholders were introduced to the executives who oversee Berkshire’s various companies, including Ajit Jain and Greg Abel. Abel, who will one day replace Buffett as CEO, shared the stage with Buffett for the first time this year. Buffett’s mistaken reference to Abel as “Charlie” highlighted Munger’s absence.
Berkshire Hathaway reported a drop in earnings due to a decrease in the paper value of its investments and selling off part of its Apple stake. However, the company’s operating earnings, which exclude investment figures, increased by 39% as insurance companies led a strong performance. Buffett emphasized the importance of focusing on operating earnings rather than investment fluctuations. Despite selling billions in stocks, including a portion of the Apple stake, Apple remains Berkshire’s largest investment. The company’s various businesses, including insurance, railroad, and utilities, delivered solid results contributing to the overall revenue growth.
With a record cash pile of nearly $189 billion, Berkshire continued to prioritize investments that carry little risk and have the potential for significant returns. Buffett reiterated his commitment to only making acquisitions that align with Berkshire’s long-term financial goals. Despite the challenges presented by Munger’s absence, shareholders expressed confidence in Jain and Abel’s ability to lead Berkshire into the future. The legacy of Munger’s contributions to Berkshire remains a focal point of the annual meeting, as shareholders reflect on his impact on the company’s success. As Berkshire Hathaway navigates changing market dynamics and economic conditions, the company’s leadership team remains focused on maintaining a steady course of growth and profitability.
