Warren Buffett at Berkshire Hathaway’s 2024 annual meeting

Investors are hoping Warren Buffett will provide more information about the next level of management at Berkshire Hathaway, after the death of Charlie Munger brought the question of succession to the forefront, an analyst said.

“Succession is frankly an issue that’s at the top of most investors’ minds,” said Kathy Seifert, CFRA’s senior vice president of research. “It’s kind of like the elephant in the room given Warren Buffett’s age, given Charlie Munger’s death.”

“I hope Berkshire makes clear or reassures investors that the corporate management position in the broader company is deeper than some people might think. I think there’s a lot of talent out there a couple of rungs below the people we know and see sitting at the desk during the annual meeting,” Seifert added. “I think Berkshire would do itself a favor by highlighting some of these people.”

– Sarah Maine

This rally may be an opportunity for Buffett to explain why Berkshire is reducing its investment in his favorite stock, Apple.

For the second straight quarter, Berkshire’s holdings in Apple declined. In the fourth quarter, it sold about 10 million shares of Apple stock (just 1% of its huge stake). Then, in the first quarter, Berkshire apparently sold another 116 million shares.

This is based on the revelation that Berkshire’s stake in Apple is worth about $135.4 billion, or about 790 million shares, or a 13% decline in its investment.

Buffett’s sales came as a surprise to some, as he had become a huge fan of the iPhone maker, even describing it as his second most important business after Berkshire’s insurance conglomerate. Furthermore, the last time Buffett reduced this stake was in late 2020, which he called “probably a mistake.”

The move may be driven by concerns about valuation. Apple shares rose 48% in 2023, making up 50% of Berkshire’s portfolio at its peak.

– Yun Lee

Berkshire Hathaway continues to sit on a huge pile of cash. The first quarter earnings report reveals that cash equivalents rose to $188.99 billion from $167.6 billion at the end of 2023.

Shareholders will be eager to hear how Warren Buffett and the rest of Berkshire’s management plan to use this money. Buffett has lamented in recent years how difficult it is to find suitable takeover targets.

The increase in cash comes as first-quarter operating profits rose 39% to $11.22 billion compared to last year.

—Fred Imbert, Christina Scheider-Burke

It was a cold, rainy morning in Omaha, as tens of thousands of attendees flocked to the courtyard of the CHI Health Center in Omaha to hear Warren Buffett speak at Berkshire Hathaway’s 2024 shareholder meeting.

– Sarah Maine

CFRA is bullish on Berkshire Hathaway’s B shares ahead of the company’s annual meeting.

The company called the stock “undervalued versus historical averages” and expects catalysts in Berkshire Hathaway’s earnings call on Saturday morning.

Berkshire Hathaway shares are up about 13% year to date.

To read more about the CFRA call and what to expect from CEO Warren Buffett during the so-called “Woodstock for Capitalists,” read the full story here.

– Michelle Fox

There is a possibility that Buffett will reveal the mysterious bet that Berkshire has been buying for two quarters in a row.

In the third and fourth quarters of 2023, Berkshire was granted confidentiality treatment to keep the details of one or more of its stock holdings confidential.

Many have speculated that the secret purchase could be a bank stock as the group’s cost basis for holdings of “banking, insurance and finance” shares jumped by $3.59 billion in the second half of last year, according to spin-off Berkshire. filings.

It is relatively rare for Berkshire to require such treatment. The last time it kept its purchase secret was when it bought Chevron and Verizon in 2020.

– Yun Lee

The Annual Meeting could start on a sombre note with Charlie Munger no longer on everyone’s minds.

Aside from the pandemic shutdown, this will be the first without Munger, Buffett’s longtime partner who died in November at age 99.

For the first time, Berkshire will broadcast film of its annual meeting, which was previously reserved only for attendees in Omaha. Many expect this year to be a tear-jerking tribute to Munger.

Vice President of Non-Insurance Operations Greg Appel, Buffett’s designated successor, will fill Munger’s seat in the afternoon session, to help answer shareholder questions.

Munger left his mark on generations of investors in many ways thanks to a long and fruitful life. He expanded Buffett’s investment approach to focus on high-quality companies that sell at fair prices. Contributors also appreciated Munger’s candor and unique sense of humor.

– Yun Lee

CNBC will live-stream Berkshire Hathaway’s annual shareholder meeting on Saturday, starting at 9:30 a.m. ET. Viewers can expect a lively discussion that will provide insight into Warren Buffett’s view of the market, what types of deals Berkshire could make in the coming year and other key topics.

Below is a summary of today’s events:

9:30 AM – 10:15 AM: Introductory Presentation by Becky Quick and Mike Santoli

10:15am – 1pm: Berkshire Hathaway morning Q&A session

1pm-2pm: Halftime show presented by Becky Quick and Mike Santoli

2pm-4:00pm: Afternoon Q&A session at the Annual Meeting

4:00pm – 4:30pm: Aftershow by Becky Quick and Mike Santoli

Note: Table reflects Eastern Time

-Christina Scheider-Burke