Berkshire Hathaway's 60th Anniversary Meeting: Buffett's Last Hurrah, Succession and Trade War in Focus
2min read Investors are eagerly awaiting the annual berkshire hathaway shareholders' meeting, which is set to take place on May 2. This year's event is particularly significant as it marks the 60th anniversary of Warren Buffett's acquisition of the company and could potentially be the last time Buffett fully participates in the meeting. The meeting will feature a Q&A session with Buffett, along with his designated successors, Greg Abel and Ajit Jain, who are expected to take over the reins of the company in the near future.
Buffett, who will turn 95 in August, has indicated that Abel will take over as CEO "soon" after he turns 94. This transition has led to heightened interest in the meeting, as investors seek insights into the future direction of the company under Abel's leadership. The Q&A session, which will be broadcast live by CNBC, is scheduled to start an hour earlier than usual, from 8:00 AM to 1:00 PM local time, with a half-hour break in between.
Investors are particularly interested in Buffett's views on the impact of tariffs on Berkshire's businesses and the broader U.S. economy. The ongoing trade war initiated by the Trump administration has raised concerns about the potential impact on Berkshire's operations, including increased repair costs for its insurance subsidiaries like Geico. Buffett, who has previously described tariffs as "an act of war," is expected to provide a thorough assessment of the situation and its implications for the company.
In addition to the trade war, investors are also keen to understand how Berkshire plans to utilize its record cash reserves of $334.2 billion. This sum, which is nearly double the amount from the previous year, represents 53% of the company's net worth. Investors are speculating about potential large-scale investments or acquisitions, such as the purchase of the remaining 72% stake in occidental petroleum or other distressed assets like D.R. Horton or toll brothers. However, some analysts have expressed skepticism about the likelihood of such moves, given Buffett's cautious approach to new investments in recent years.
Another area of interest is Berkshire's investment strategy, particularly its holdings in major U.S. stocks like apple and american express. Over the past year, Berkshire has significantly reduced its stake in Apple, which now accounts for only 22% of its portfolio, down from 50% a year ago. Investors are curious about whether Buffett plans to further reduce its holdings in Apple, given the potential impact of the trade war on the tech giant. Buffett has previously stated that the sale was for tax reasons, but some analysts believe it could also be a sign of his concerns about Apple's valuation and the risks posed by the trade war.
Beyond the U.S., investors are also interested in Berkshire's investments in Japan, where it has increased its stakes in five major trading companies: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Buffett has praised these companies for their prudent management practices and long-term investment horizon. The performance of these investments has been strong, outperforming the Nikkei 225 index since Berkshire's initial investment in 2020.
In China, Berkshire has been reducing its stake in BYD, a major electric vehicle manufacturer. The company's holdings in BYD have decreased from nearly 20% to less than 5% over the past two years. Investors are eager to understand Buffett's views on Chinese assets and whether he plans to make further investments in the region.
As the meeting approaches, investors are bracing for a potential shift in Berkshire's leadership and investment strategy. The company's future direction under Abel's leadership, as well as its approach to managing its massive cash reserves and navigating the challenges posed by the trade war, will be closely watched by investors and analysts alike. The meeting is expected to provide valuable insights into Berkshire's plans for the future and its continued success under new leadership.
