At the recent Berkshire Hathaway annual meeting in Omaha, Nebraska, shareholders gathered to hear from CEO Warren Buffett and other company executives. The meeting, lasting about 5 hours, covered various topics including Berkshire’s businesses, investment strategies, and broader economic outlook.
A notable highlight of the meeting was a video tribute to Charlie Munger, Buffett’s longtime partner and Berkshire’s vice-chairman, who passed away in November at the age of 99. Munger was celebrated as the “architect of Berkshire,” receiving a standing ovation from shareholders.
Here are some key takeaways from the meeting:
Buffett disclosed that Berkshire had reduced its stake in Apple by about 13% in the first quarter, although Apple remains its largest stock position. He expressed confidence in Apple’s business and indicated that it would likely remain Berkshire’s top holding even after his departure. Additionally, Buffett revealed that Berkshire had sold its entire stake in Paramount Global, accepting responsibility for the losses incurred.
Berkshire’s cash reserves grew to over $182 billion by the end of the first quarter, with Buffett anticipating further growth to $200 billion by the end of the second quarter. Despite the significant cash position, Buffett emphasized the importance of patience in waiting for attractive investment opportunities, echoing Berkshire’s historical approach of deploying capital during market downturns.
Buffett cautioned against making investment decisions solely based on tax considerations, stressing the importance of prioritizing investment fundamentals over tax optimization strategies.
Regarding artificial intelligence (AI), Buffett expressed concerns about its potential risks, likening it to the development of nuclear weapons. He highlighted the growing threat of investment scams utilizing AI technology, emphasizing the need for vigilance.
The meeting also addressed the risks posed by climate change to Berkshire’s businesses, particularly its utilities facing increased wildfire risks in western states. Berkshire’s insurance operations also confront challenges from more frequent and severe weather events.
Overall, the meeting underscored Berkshire’s strategic adaptability, prudent investment approach, and awareness of evolving market dynamics and risks. Investors were encouraged to conduct their own research and due diligence before making investment decisions, considering the insights shared at the meeting.