Buffett praises Munger, talks about succession and provokes reactions in Omaha; follow

Around 30 thousand people attended the company’s annual shareholders meeting Berkshire Hathaway, Warren Buffett’s investment conglomerate in Omaha, Nebraska, this Saturday (4). With a full auditorium, the event paid tribute to Charlie Munger, the billionaire’s right-hand man, who passed away last year at the age of 99. The mega-investor’s answers to shareholders’ questions in the famous “Q&A” provoked strong reactions from the audience, especially regarding his succession.

At the end of the conference, Buffett, 93 years old, said goodbye to the participants in a good-humored tone. He said he hoped to be present at next year’s conference – drawing laughter from the audience. Standing, investors and shareholders applauded the billionaire for about 1 minute.

Sale of Apple shares and record cash

When responding to questions from the audience, Buffett explained why he sold Apple (AAPL) shares and reduced his stake by 13%. He suggested that the move was made for fiscal reasons, after considerable gains from the action, and not for long-term vision. Buffett also pointed out that this could be related to the increase in taxes to finance the expansion of the United States. But he assured that the company remains his main investment.

Earlier, Berkshire revealed that it had accumulated a record amount of cash, to $189 billion at the end of the first quarter. Buffett recently said that he buys three- and six-month Treasury bonds every Monday.

“Our cash and Treasury securities were $182 billion at the end of the quarter, and I think it’s reasonable to assume they will probably be around $200 billion at the end of this quarter,” he said.

At the event, Buffett also revealed that he sold 100% of his stake in Paramount Global, acknowledging that he “lost a lot of money” with the operation.

Buffett’s speeches provoke reactions

The “Oracle of Omaha” also commented on the poor performance in energy investments last year. When she finished speaking, she said, “Of course, Charlie,” as she had been waiting for Munger’s comment. The mention led to applause. Buffett actually wanted to give the floor to Greg Abel, designated as Buffett’s successor.

“We will see how the next administration plays the game at Berkshire, [mas] Luckily you won’t have to wait long for it. I feel good, but I know a little about the actuarial board,” she told comment on the future of the company, making it clear that age cannot be an impediment. “Anyone who wants to retire at age 65 would be disqualified as a potential CEO of Berkshire.”

Asked about the potential in investments in China and Hong Kong – a region with many participants present –, Buffett stated that Berkshire will continue to focus on investments in the United States (even though it has stakes in Japanese conglomerates). As a “mea culpa,” he added that he couldn’t be happier to have invested in Chinese automaker BYD – provoking strong reactions among Americans in the audience.

As he never stopped doing, Buffett did not shy away from commenting on mistakes made in investment decisions. He said Berkshire avoided making “fatal” choices in several important decisions over the years. “Sometimes we did things that were big mistakes,” he acknowledged. “But we never came close to fatal errors.”

The mega-investor also stated that fraud involving artificial intelligence (AI) has the potential to be the next big “growth industry”, if he decided to invest in tools of this type. He compared the technology to nuclear weapons in terms of its potential for major changes.

When talking about the subject, the “Oracle of Omaha” stated that he “knows nothing” about AI, but reported that he had recently seen an image of himself generated by artificial intelligence tools and that this made him nervous about the technology.

“When you think about the potential to scam people, if you can play images that I can’t even say, that say, ‘I need money,’ ‘I just got into a car accident, I need $50,000.’ I mean, fraud has always been a part of the American landscape, but if I was interested in investing in fraud, it was the growth industry of all time,” he said.

Brazilians in the early morning queue

Since 5 am local time and in cold weather, participants formed a long line outside the event, waiting to hear the billionaire’s advice.

The first in line, from Taipei, Taiwan, reported that they arrived around 1:40 am to secure their spot. Brazilians, in turn, were also present in the early hours of the morning. They arrived around 4 o’clock, when the line was already formed. See the list of questions that Faria Lima prepared for the event.

With a packed auditorium, the founder of Microsoft, bill Gatesand the CEO of Apple, Tim Cookthey were talking among other personalities from the investment world, waiting for the event to open.

Tribute to Munger

This year’s opening was different. Until then, it was tradition to broadcast a humorous video with Buffett and his right-hand man, Charlie Munger, who passed away in October 2023, aged 99. The event began with a video paying tribute to Munger.

In a light and fun tone, he recalled his trajectory and importance in building Berkshire in a long-term partnership with Buffett. The exhibition highlighted both in successful series such as The Office It is Breaking Bad. Munger received a standing ovation for practically a minute.

Read more: InfoMoney heads to Omaha for Berkshire Hathaway’s annual conference

“Charlie reached 99.9 years old. If I had one more day with Charlie, I would probably do the same thing as always”, said Buffett during the conference, referring to him as the “architect of Berkshire”.

He said Munger was a reliable business partner but was also able to look elsewhere for personal support. “I completely trust my children and my wife. But that doesn’t mean I ask which stocks to buy,” he said.

Team renewed in 2024

This Saturday (4), Buffett has a different team by his side answering questions. Greg Abel and Ajit Jain, vice presidents of Berkshire, will be present for much of the day. Shareholders will likely be focused on what Abel, Buffett’s appointed successor to take over as CEO and responsible for the conglomerate’s non-insurance operations, will have to say.

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In Buffett’s annual letter to investors, he referenced the challenges faced by Berkshire’s largest companies, including the BNSF railroad (drop in shipment volumes) and its utilities business (wildfires).

Last month, the company’s massive real estate brokerage, HomeServices of America, also agreed to shell out $250 million to settle lawsuits over inflated commissions on home sales.

Follow InfoMoney coverage

O InfoMoney provides special coverage of Berkshire Hathaway’s annual shareholder conference. Henrique Esteter, multiplatform coordinator, follows the event as a special envoy to Omaha, in the American state of Nebraska. At 6pm, he will follow the live broadcast of the highlights of the meeting.

The Berkshire meeting is different from most shareholder meetings held by other companies. On the one hand, the day is a showcase for the many companies in which Buffett has a stake – they set up booths at the CHI Health Center Arena in Omahain the state of Nebraska, where the event takes place.

On the other hand, participants have the real chance to ask Buffett questions directly – who will be joined on stage by Greg Abel, responsible for Berkshire’s non-insurance operations, and Ajit Jain, who specifically oversees the insurance business. The three can answer up to 60 questions during the meeting.