Berkshire Hathaway's Annual Meeting: 10 Critical Questions for Warren Buffett

The annual pilgrimage to Omaha is upon us, as investors and curiosity seekers descend on Berkshire Hathaway's shareholder meeting. With Berkshire's stock underperforming the S&P 500 by 35% over the past decade, this year's event promises to be a crucible of scrutiny for its 94-year-old chairman. Here are the pressing questions investors will seek answers to:

1. Stock Buybacks: Value or Vanity?
Berkshire spent $21.8 billion repurchasing its own stock in 2023 - its highest buyback total since 2019. But with B shares trading at a 22% discount to their 2020 peak, investors will demand clarity on the rationale behind these purchases.

2. Tech Exposure: Can Buffett Adapt?
The Oracle's tech aversion has cost Berkshire dearly. While the S&P 500 rose 89% since 2018, Berkshire's tech-light portfolio lagged with only 3% growth. With marginal Alphabet investments, will Buffett reveal plans to engage with FAANG+ companies?

3. Succession Plan Realities
After years of vague statements, the board has named three potential successors. Shareholders want specifics: Will Greg Abel or Ajit Jain gain operational control? What's the timeline for Buffett's transition?

4. Energy Portfolio Risks
Berkshire's 9.1% stake in Occidental Petroleum (OXY) and 100% ownership of utility businesses face dual threats from renewable transitions and regulatory scrutiny.

5. Shareholder Letters: Clarity Over Cliché
Buffett's annual letters have become increasingly vague on portfolio specifics. Will this year's missive provide actionable insights into underperforming holdings like Apple (now 42% of the portfolio) or Bank of America?

6. Philanthropy Timing
The world's fourth largest charitable foundation (controlled by Berkshire) holds $5.3 billion in assets. With the Gates Foundation facing scrutiny, will Buffett accelerate or modify his planned $40 billion+ in future gifts?

7. Economic Outlook Consistency
Buffett's "too cheap to ignore" mantra conflicts with current valuations. With the S&P 500 trading at 23x earnings vs its 15x historical average, investors need reconciled perspectives on overvaluation vs opportunity.

8. Market Concentration Risks
Berkshire's top 5 holdings (Apple, American Express, Bank of America, Coca-Cola, US Bancorp) represent 78% of its equity portfolio. This extreme concentration invites questions about diversification discipline.

9. Governance Transparency
Despite holding $133 billion in cash, Berkshire's capital allocation process remains opaque. Will shareholders receive clearer guidelines on when/where the company will deploy its war chest?

10. Long-Term Viability
With 44% of Berkshire's subsidiaries over 50 years old, the conglomerate model faces disruption challenges. Can this aging empire sustain growth in a tech-driven economy?

Conclusion
Berkshire's crossroads is undeniable. While its $800 billion market cap still commands respect, the underperformance relative to broader markets (S&P 500 outperformed by 12.4% annualized since 2010) demands strategic clarity. Buffett's ability to address these issues while maintaining his folksy charm will determine whether shareholders renew their faith. The test isn't just about financial metrics - it's about proving the Omaha conglomerate can evolve in an era where 80% of the S&P 500's market cap growth comes from companies founded after 2000. The world's greatest investor may now need to prove he's also its most adaptable one.