Jonathan Stempel and Ko Gui Qing
OMAHA, Nebraska (Reuters) – Warren Buffett will take center stage at Berkshire Hathaway’s (NYSE:) annual meeting on Saturday as shareholders turn out to see the famed investor as well as his expected successor.
The meeting was the 93-year-old Buffett’s 60th since taking over Berkshire in 1965. He has virtually stopped appearing publicly to discuss the company. He told investors in November that he was feeling good but knew he was “playing extra innings.”
“It’s just fun to be a part of it,” said Jeff Farmer, a 59-year-old public safety worker from Omaha, at the showroom where Berkshire merchandise was being sold Friday. “We just want to hear that the company is on the same trajectory and hear what they predict for the future.”
At the downtown arena, Buffett and Vice President Greg Abel, 61, will answer questions for about five hours. Vice-chairman Ajit Jain, 72, will also join. Abel was named to succeed Buffett as CEO in 2021.
“I want to hear from Greg Abel,” said Ming 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 for the company is and whether it’s different from Buffett’s. I’m not afraid of change.”
Investors are focused on how the conglomerate will evolve as it faces challenges, including how best to grow without overpaying for acquisitions, whether to pay a dividend and how to use the $167.6 billion on hand by the end of the year.
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The shareholder meeting is also the first since Charlie Munger, Buffett’s longtime friend, business partner and adversary, died in November at age 99.
Munger was known for his succinct and sharp responses to Buffett’s often lengthy assessments about Berkshire, the economy, Wall Street and life.
“Warren will have a hard time without Charlie,” Paul Lountzis, president of Lountzis Asset Management, said at his 32nd Berkshire meeting.
CHIEF SUCCESSION Berkshire is an $862 billion conglomerate with dozens of businesses, including the BNSF railroad, Geico auto insurance, Dairy Queen and Fruit of the Loom. He also owns more than $300 billion worth of shares, almost half of which belongs to Apple (NASDAQ:).
Berkshire shares are up 23% over the past year, lagging Berkshire’s 25% rise. Over the past decade, Berkshire shares have risen 218%, compared with the S&P’s 172% rise.
Buffett is expected to be asked a wide range of questions Saturday on issues ranging from big investments like Apple and Occidental Petroleum to how higher interest rates have affected the company. “I want to see Warren’s energy,” said Steven Check, president of Check Capital Management, who attended his 27th meeting. “It’s good to have Greg and Ajit leading the way.” Berkshire will also release first-quarter results on Saturday, with shareholders voting on six proposals related to climate, diversity and China. Buffett is against all six. Over the weekend, shareholders will be able to purchase merchandise such as Berkshire T-shirts and Squishmallows at trade shows dedicated to 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 her biggest concern is what Buffett might say about his succession. “I trust him,” she said. “He’s a brilliant man and he has a lot of brilliant people. He will help us get through this. I wouldn’t like to see him go, but I think they’ve prepared well for it.”
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