By Jonathan Stempel and Koh Gui Qing
OMAHA, Nebraska (Reuters) – Warren Buffett will take center stage at Berkshire Hathaway’s annual meeting on Saturday as shareholders stop by to watch the famous investor and his expected successor.
The meeting is the 60th for the 93-year-old Buffett since he took over Berkshire in 1965. He has largely stopped making public appearances to talk about the company. He told investors in November that he felt good but knew he was “playing in extra innings.”
“It’s just fun to be a part of it,” said Jeff Farmer, a 59-year-old public safety worker from Omaha, in an exhibit hall where Berkshire merchandise was for sale Friday. “We just want to hear that the company is on the same path and what it forecasts for the future.”
At a downtown arena, Buffett and his vice chairman, Greg Abel, 61, will answer questions for about five hours. Vice-chairman Ajit Jain, 72, will also join. Abel was named Buffett’s successor as CEO in 2021.
“I want to hear from Greg Abel,” said Min Zhuang, 51, who drove seven hours from Chicago to attend the meeting and has owned Berkshire shares for more than a decade.
“I want to see what kind of person he is, what his vision is for the company and whether it’s different from Buffett’s. I’m not afraid of change.”
Investors are focused on how the conglomerate will evolve in the face of challenges, including how best to grow without overpaying for acquisitions, whether to pay a dividend and how to manage the $167.6 billion Dollars of cash to be deployed at year-end.
The shareholders’ meeting is also the first since Charlie Munger, Buffett’s longtime friend, business partner and adversary, died in November at the age of 99.
Munger was known for his laconic and caustic responses to Buffett’s often detailed assessments of Berkshire, the economy, Wall Street and life.
“It will be hard for Warren not to have Charlie,” Paul Lountzis, president of Lountzis Asset Management, said at his 32nd Berkshire meeting.
FOLLOW-UP TOP OF MIND Berkshire is an $862 billion conglomerate with dozens of companies, including BNSF Railroad, Geico Car Insurance, Dairy Queen and Fruit of the Loom. The company also owns well over $300 billion in stock, almost half of which is Apple.
Over the past year, Berkshire shares have risen 23%, underperforming the Standard & Poor’s 500’s 25% rise. Over the last decade, Berkshire has risen 218%, while S&P has gained 172%.
Buffett is expected to face a variety of questions on Saturday on everything from major investments like Apple and Occidental Petroleum to the impact of increased interest rates on the company. “I want to see Warren’s energy,” Steven Check, president of Check Capital Management, said at his 27th meeting. “It’s good that Greg and Ajit will be at the front.” Berkshire will also report first-quarter results on Saturday, while shareholders will vote on six proposals on climate, diversity and China. Buffett is against all six. The weekend offers shareholders the opportunity to purchase goodies like Berkshire T-shirts and Squishmallows toys at exhibitions held by Berkshire-owned companies. Ruth Gearhart, 72, of Omaha, filled her bags with See’s Candies and tongs and spatulas from Pampered Chef. Gearhart, a 15-year shareholder, said she was mostly worried about what Buffett might say about his successor. “I trust him,” she said. “He is a brilliant man and he has a lot of brilliant people. He will get us through this. I would hate to see him go, but I think they prepared well for it.”
(Reporting by Gui Qing Koh and Jonathan Stempel; Editing by Ira Iosebashvili, Megan Davies and Cynthia Osterman)