Tens of thousands of Berkshire Hathaway shareholders and Warren Buffett fans gathered in Nebraska for the annual shareholder meeting, often referred to as “Woodstock for capitalists.” The event includes activities such as consuming Berkshire-owned products like See’s Candies and Dairy Queen Dilly Bars, newspaper-throwing contests, and the opportunity to see Warren Buffett speak in person. This year, however, the event will be more somber as Buffett will be appearing without his longtime business partner and friend, Charlie Munger, who passed away in November.
Greg Abel and Ajit Jain, who are expected to be Buffett’s successors, will join him on stage at the event. Munger’s absence will be felt, as his quick wit and sage advice will be missed. In the 2023 annual report, Buffett dedicated the report to Munger and credited him as the architect behind the success of Berkshire Hathaway. The pair first met in 1959, and Munger joined Berkshire Hathaway in 1978 as vice-chairman, where he provided valuable guidance to Buffett.
Munger’s passing has brought up questions about succession at Berkshire Hathaway. Greg Abel, who was named heir apparent in 2021, has been working closely with Buffett to ensure a smooth transition. Buffett has expressed his full confidence in Abel’s abilities, stating that he does not have a second choice for his successor. Berkshire Hathaway will also report its 2024 first-quarter earnings, which are expected to show a 21% increase in operating profits per Class A share, surpassing the performance of the S&P 500.
Berkshire Hathaway reported strong fourth-quarter operating earnings, totaling $8.5 billion, representing a 28% increase from the previous year. For the full year, operating earnings reached $37.3 billion, setting a record high for the company. The conglomerate closed the year with a net profit of $96.2 billion, recovering from a net loss in 2022. Buffett is known for releasing his quarterly reports over the weekend to allow investors time to digest the information before trading resumes on Monday.
The absence of Charlie Munger at this year’s Berkshire Hathaway shareholder meeting will be felt across the business community, as he was a key figure in the company’s success. As the event proceeds, shareholders will have the opportunity to hear from Warren Buffett, Greg Abel, and Ajit Jain, the expected successors to lead the conglomerate into the future. With strong operating profits and a record-breaking year, Berkshire Hathaway continues to outperform the market and reassure investors of the company’s stability and growth potential. The event serves as a moment to reflect on the legacy of Charlie Munger and the lasting impact he had on Berkshire Hathaway.
