The absence of Charlie Munger, Warren Buffett’s longtime partner, will be felt at Berkshire Hathaway’s annual shareholder meeting this year, which is typically dubbed “Woodstock for Capitalists.” Munger passed away in November at nearly 100 years old. The meeting will be broadcast on CNBC and will include a tear-jerker tribute to Munger. Vice Chairmen Greg Abel and Ajit Jainwill join Buffett in the meeting and will answer shareholder questions. Munger’s influence on Buffett and the investment philosophy of Berkshire Hathaway will be missed by attendees.
Shareholders are eager for Buffett to address various topics during the meeting, including the impact of inflation on Berkshire’s businesses, the reduction of the Apple stake, Berkshire’s secret stock pick, Buffett’s plans for the record cash on hand, and whether buybacks will continue to slow down. Additionally, more details about Berkshire’s succession plan are requested. Given the current economic climate and market challenges, investors are interested in hearing Buffett’s insights on market commentary and guidance.
A key question on many shareholders’ minds is why Berkshire sold a portion of its Apple stake in the fourth quarter, given that Apple has been a favorite investment for Buffett. Berkshire still holds a significant number of Apple shares, which account for more than 40% of its portfolio. Shareholders are also curious about the identity of the mystery bank stock that Berkshire has been purchasing for two consecutive quarters, with speculation suggesting it may be a bank stock based on SEC filings.
Following Munger’s passing, discussions about Berkshire’s succession plan are likely to be a major focus of the meeting. Greg Abel has been identified as Buffett’s heir apparent and has taken on significant responsibilities within the company. Questions may arise about who will be managing capital allocation at Berkshire, as well as the roles of Buffett’s investment managers, Ted Weschler and Todd Combs. Munger’s impact on Berkshire’s operations and investment strategy will be remembered fondly by those attending the meeting.
Overall, the absence of Munger will create a more serious and less humorous atmosphere at this year’s Berkshire Hathaway annual shareholder meeting. With attention turning towards succession planning and the future leadership of the company, shareholders will be looking to Buffett, Abel, and Jain for insights into Berkshire’s future direction. Despite the challenging market conditions and economic uncertainties, Buffett’s long-term investment approach and commitment to ignoring short-term cycles are expected to remain a focus of the meeting. Shareholders are eager to hear Buffett’s perspectives on a range of topics, including inflation, Apple, Berkshire’s secret holdings, buybacks, and the company’s succession plan.
