The absence of Charlie Munger at Berkshire Hathaway’s annual shareholder meeting will be a major focus as Warren Buffett takes the stage. Munger, Buffett’s longtime partner who passed away in November, will be missed, with many shareholders noting that the meeting will have a more serious tone without his trademark humor. The meeting will be broadcast exclusively on CNBC for the first time, and many expect a tear-jerker tribute to Munger during the annual meeting movie. Greg Abel, Buffett’s designated successor, will fill Munger’s seat and help answer shareholder questions alongside Ajit Jain and Buffett.
Munger’s influence on Buffett and his investment philosophy has played a major role in shaping Berkshire Hathaway into the $860 billion conglomerate it is today. Shareholders have long appreciated Munger’s humor and bluntness, which added a unique touch to Wall Street. With Buffett turning 94 soon, his folksy wisdom and insights on topics like inflation, the Apple stake, Berkshire’s record cash levels, buyback programs, and the company’s succession plan are eagerly awaited by investors.
Buffett’s investment decisions have always focused on the long run, rather than reacting to short-term market fluctuations or headlines. Shareholders will be keen to hear his perspective on current market conditions, given the recent pickup in inflation and the Federal Reserve’s approach to interest rates. The timing of the annual meeting provides an opportunity for Buffett to provide insight and guidance to investors, drawing on his experience as a disciple of Ben Graham.
Buffett’s trimming of Berkshire’s Apple stake in the fourth quarter, despite it being a long-standing favorite, surprised many investors. The company owns over 40% of its portfolio in Apple, making any changes to the stake notable. The announcement of a $110 billion share buyback by Apple’s board lifted stock prices, although overall sales and iPhone sales saw a decline. Buffett may also reveal details of Berkshire’s secret stock pick, speculated to be a bank stock, in response to shareholders’ questions about the conglomerate’s move to keep the details confidential.
Following Munger’s passing, Berkshire’s succession plan will likely be a key topic at the meeting. Abel’s role as Buffett’s heir apparent, overseeing a significant portion of the company’s operations, has become more prominent in recent years. Questions regarding capital allocation and the roles of Buffett’s investing managers, Ted Weschler and Todd Combs, who also leads Geico, may be addressed. The transitions within Berkshire’s leadership and the company’s future direction post-Buffett will be of interest to shareholders and investors alike.
