In Berkshire Hathaway’s first annual shareholders meeting since the death of former vice chairman Charlie Munger, CEO Warren Buffett projected the company’s cash pile would exceed $200 billion this year. Despite Berkshire’s selling off a significant portion of its shares in Apple, Buffett spoke highly of the tech giant and expressed confidence in its future. He also hinted at the possibility of increased corporate taxes in the future and suggested that selling Apple stock now could help Berkshire pay larger tax rates down the line.
Buffett also sounded the alarm on advancements in artificial intelligence, warning of the potential for AI to be used for scams and fraudulent activities. He emphasized the importance of being cautious with AI and compared its potential impact to that of nuclear weapons. Additionally, he mentioned Berkshire’s limited interest in making significant investments outside of the U.S., with the exception of potential opportunities in Canada, where the conglomerate was currently exploring options.
The 93-year-old Buffett teased his eventual succession, indicating that investors may not have to wait much longer to see a change in leadership at Berkshire Hathaway. He has already named Greg Abel, Berkshire’s vice chairman of non-insurance operations, as his eventual successor. The annual shareholders meeting, typically known as “Woodstock for capitalists,” took on a different tone this year without the presence of Munger, who had been Buffett’s longtime friend and business partner.
Berkshire Hathaway reported profits of $12.7 billion in the first quarter of this year, a significant drop from the $35.5 billion reported in the same period last year. However, this decline was largely driven by a decrease in the value of Berkshire’s stock portfolio, while the company’s operating earnings from its business holdings actually increased by 39%. The conglomerate’s insurance business, including Geico, performed well, with operating earnings from insurance underwriting more than doubling from the previous year.
Overall, the annual shareholders meeting provided insights into Berkshire Hathaway’s financial performance, Warren Buffett’s views on various economic and investment-related topics, and the future succession plans for the company. Despite challenges such as the potential impact of artificial intelligence and the evolving investment landscape, Berkshire remains a key player in the financial industry with a substantial cash pile and strategic investment decisions. Investors and shareholders will continue to closely monitor Berkshire’s activities and Buffett’s guidance for the future.
