Berkshire Hathaway's Annual Meeting: Buffett to Address $334.2B Cash, Tariffs, Japan Investments
3min read On May 3, local time, the annual shareholder meeting of berkshire hathaway, often referred to as the "Investment Night of the Year," will take place in Omaha, Nebraska, the hometown of the legendary investor Warren Buffett. This year marks the 60th anniversary of Buffett's leadership at Berkshire Hathaway, and the highly anticipated Q&A session will begin at 8:00 AM local time (9:00 PM Beijing time on May 3).
Unlike previous years, the schedule for this year's meeting has been adjusted, with the Q&A session expected to last four and a half hours, approximately one hour shorter than last year. Buffett will be joined by his designated successor Greg Abel and insurance business head Ajit Jain to answer questions from shareholders. The key points of interest for this year's meeting include the company's massive cash reserves, the impact of U.S. tariff policies on the economy, potential investments in Japan, and Buffett's potential retirement.
Berkshire Hathaway holds a record $334.2 billion in cash and cash equivalents as of the end of 2024. Buffett has emphasized that the company will continue to invest the majority of its funds in stocks, primarily in U.S. companies with significant global operations. Despite a decrease in its stake in tradable stocks from $354 billion to $272 billion in 2024, the value of its non-tradable controlled stocks has increased, remaining significantly higher than its tradable investment portfolio. Buffett has assured shareholders that Berkshire will not favor holding cash equivalents over investing in high-quality companies, whether through controlling stakes or partial ownership.
With the annual shareholder meeting approaching, market attention is focused on Buffett's strategy for deploying Berkshire's historic cash reserves. Speculation is rife about whether Buffett will initiate a wave of large-scale acquisitions or use stock buybacks to boost market confidence. However, given Berkshire's net selling of stocks in four of the past five years, it is likely that Buffett will maintain a cautious approach in the short term, especially amidst the volatility in the U.S. stock market in 2025.
Energy has been a key focus for Berkshire in recent years. Since the first quarter of 2022, Buffett has consistently increased his holdings in energy stocks, a strategy that yielded substantial returns in 2024's high oil price environment. However, with global oil and gas giants currently facing profit pressures, there is speculation about whether Buffett will adjust his energy investment strategy during the meeting. Notably, Berkshire has become the largest shareholder of occidental petroleum, holding 28% of its shares, and there is widespread discussion about whether Berkshire will acquire the remaining 72%.
The impact of tariff policies on the U.S. economy and market will be another focal point. Tariffs have caused significant market volatility and reshaped competition in the tech sector, leading to a profound transformation of the global economic landscape. Investors are likely to ask Buffett about the implications of tariffs on the economy. While Buffett has generally avoided discussing political issues, he has previously criticized Trump's tariff policies, stating that they could lead to inflation and harm consumer interests. Buffett has also expressed concern about the potential impact of tariffs on the economy, describing them as a form of taxation that ultimately burdens consumers.
Berkshire's successful international investments have been primarily in Japan. Buffett has highlighted the company's growing investments in Japan, noting that Berkshire first purchased shares in five major Japanese trading companies in July 2019. Impressed by their low stock prices and financial health, Berkshire has continued to increase its holdings. Buffett has stated that these investments are long-term and that Berkshire will support the companies' boards. Initially, Berkshire agreed to keep its holdings below 10% of each company's shares, but as it approached this limit, the companies agreed to relax the restriction. Buffett expects that his successor, Abel, and future leaders will continue to hold these Japanese assets and potentially increase their stakes. As of the end of 2024, Berkshire's total investment in these five companies was $13.8 billion, with a market value of $23.5 billion. Buffett anticipates earning approximately $812 million in dividends from these investments in 2025, with interest costs on yen-denominated debt around $135 million.
Despite market volatility, Berkshire completed a $900 billion yen bond issuance in April, the smallest since entering the Japanese market in 2019. This move signals Berkshire's commitment to investing in Japan, even as other companies pull back. Investors will be watching for any signals from Buffett about further investments in Japan or other Asian markets during the meeting.
At 94 years old, Buffett's potential retirement is a topic of interest. In February, Buffett hinted that Abel might take over the annual letter to shareholders in the near future. Abel is expected to play a more significant role in hosting and answering questions at the meeting, and his investment philosophy, leadership style, and strategic planning will be closely scrutinized by investors. Buffett's children, Susie and Howard, currently serve on the board and will control the trust fund holding Buffett's shares, giving them considerable influence. The transition from family governance to professional management under Abel will be a key focus for the market.
Abel's leadership style, which favors infrastructure and energy acquisitions, has been instrumental in growing Berkshire Hathaway Energy into one of the largest electricity producers in the U.S. As Abel takes on more responsibilities, investors are eager to see how he will balance traditional investment strategies with new opportunities in a rapidly changing economic environment. The answers to these questions will not only shape Berkshire's future but also provide valuable insights for global investors.
