WASHINGTON, DC: At the 3 May Berkshire Hathaway annual meeting in Omaha, Nebraska legendary investor Warren Buffett announced that he was recommending that 62-year-old Greg Abel succeed him as Berkshire chief executive at the end of the year.
The announcement came after the 94-year-old Buffett and Abel answered shareholder questions for four hours at a packed downtown arena. As he rose to leave the podium Buffett received a thunderous standing ovation from a crowd that exceeded 15,000. Apple chief executive Tim Cook and former presidential candidate Hillary Clinton were in the audience.
Buffett is among the world’s richest men. He said he would continue to be involved with Berkshire, a company he has headed for 55 years. During his tenure what had been a New England-based textile firm evolved into a giant holding company owning over 60 enterprises, plus having major shareholdings in Apple, Coca Cola and American Express. Berkshire alone is the 7th biggest US-based company.
Buffett’s long-time partner and deputy Berkshire chairman Charlie Munger died in 2023 at the age of 99. Buffett says he has no intention of selling even one share of Berkshire stock. He has promised to give to charity virtually all of his multi-billion-dollar holdings.
Big mistake
During the question-and-answer session Buffett called President Trump’s tariffs a big mistake.
Trade, he said, should not be a weapon and the United States should welcome commerce with the rest of the world. “Let us do what we do best while other countries do what they do best.”
However, Buffett did not condemn the efforts of Elon Musk to reduce government bureaucracy and shrink the US fiscal deficit currently in excess of six percent of gross domestic product. That deficit, said Buffett, was unsustainable.
As in previous Berkshire meetings Buffett repeated his belief that the United States was the greatest country in the world and had a bright future. His message to the several young people from China, the US and Europe asking questions was, be curious, work hard, and learn everything you can. Draw close to people who are smarter than you are, people who want you to succeed.
His mind remarkably sharp and quick, Buffett said his biggest worry was nuclear catastrophe. Eight countries have the bomb and Iran could become the ninth. The United States, he said, had no choice in 1945 but to develop the bomb but with so many nuclear powers it was impossible to put the genie back in the bottle.
Buy-and-hold investing
When investing, said Buffett, you must leave your emotions at the door. He counsels buy-and-hold investing. Berkshire is conservative and never rushes into a purchase. At present, the company has cash and US security holdings of $347 billion.
Berkshire prides itself on allowing managers to be independent. Abel, a Canadian, is in overall charge with Ajit Jain, born in India, being in charge of insurance companies.
Finally, in defending American capitalism, Buffett compared the country to a cathedral to which a casino has become attached. The cathedral is productive while the casino attracts gamblers looking for easy money. The challenge, he said, was to prevent the casino from taking over.
Having been in Omaha for at least eight of these annual meetings, it’s been a gift living at the same time as Warren Buffett and, until 2023, Charlie Munger. These two remarkable men have been the greatest investors of our time. Both are billionaires but lived non-ostentatious lives, Warren in Omaha, Nebraska, and Charlie near Los Angeles.
Warren sees himself as a teacher, particularly in finance and business. How do you value a company or determine its future prospects? His message − do your homework. Learn everything you can. Invest in yourself.
The views of the writer are not necessarily the views of the Daily Friend or the IRR.
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