New York
CNN
—
Welcome to “Woodstock for capitalists.”
Tens of hundreds of Berkshire Hathaway shareholders and Warren Buffett followers flocked to Nebraska this weekend to devour Berkshire (BRKB)-owned See’s Candies and Dairy Queen Dilly Bars, compete in newspaper-throwing contests and, maybe most essential, to see the Oracle of Omaha communicate in individual.
This yr, nonetheless, the occasion struck a extra solemn tone. Buffett appeared for the primary time with out his longtime enterprise associate and buddy Charlie Munger, who died in November.
Greg Abel, the anticipated successor to Buffett who runs Berkshire’s noninsurance operations; and Ajit Jain, who runs the corporate’s insurance coverage enterprise, joined Buffett on stage. Nonetheless, the nice and cozy back-and-forth and Munger’s whip-smart (and infrequently sarcastic) remarks are absent.
Buffett, 93, opened Berkshire’s 2023 annual report with a dedication to Munger, who died at age 99, simply 33 days earlier than the milestone birthday.
Buffett stated Munger was the “architect” behind the conglomerate they constructed collectively. “Within the bodily world, nice buildings are linked to their architect, whereas those that had poured the concrete or put in the home windows are quickly forgotten,” he wrote. “Berkshire has turn out to be an excellent firm. Although I’ve lengthy been accountable for the development crew; Charlie ought to endlessly be credited with being the architect.”
The pair first met in 1959 and three years later Munger started working in cash administration, the letter notes. In 1978, Munger joined Berkshire Hathaway as vice-chairman and sat by Buffett’s facet, fast with a quip or a sage piece of recommendation.
“Charlie by no means sought to take credit score for his function as creator however as an alternative let me take the bows and obtain the accolades. In a approach, his relationship with me was half older brother, half loving father. Even when he knew he was proper, he gave me the reins, and after I blundered he by no means — by no means — jogged my memory of my mistake,” wrote Buffett.
Munger’s passing has introduced up the query of succession at Berkshire.
Abel, 61, was named inheritor obvious in 2021 and Buffett has labored to insure traders that Berkshire’s inventory (BRK.A), which closed at $603,000 per share on Friday, has a powerful succession plan in place.
“I don’t have a second alternative. I imply it’s that powerful to seek out. However I’ve additionally seen Greg in motion and I really feel 100% comfy,” Buffett stated on the shareholder assembly final yr. “Greg is inheriting a superb enterprise and I believe he’ll make it higher.”
Berkshire additionally reported its 2024 first quarter earnings on Saturday morning. Buffett famously releases his quarterly report over the weekend in order that traders have time to completely digest its contents earlier than buying and selling opens once more on Monday.
Berkshire’s working income rose to $8,825 per Class A share. Berkshire’s Class A inventory has risen almost 10% this yr, beating the whole 7.5% of the S&P 500.
It closed the primary quarter with a web revenue of $12.7 billion, lower than half of the $35.5 billion it reported for a similar interval final yr.
Berkshire’s insurance coverage underwriting enterprise, certainly one of its main holdings, made $2.6 billion within the first quarter, a $185% soar from $911 million within the first quarter of 2023. Final yr, insurance coverage underwriting generated earnings of $5.4 billion for the conglomerate, up from a lack of $30 million in 2022.
Berkshire additionally purchased again $2.6 billion in inventory final quarter.
Saturday’s report confirmed that Buffett is sitting on a report pile of money. Berkshire has about $189 billion in money and equivalents, breaking 2023’s report excessive $167.6 billion.
The stockpile has led some traders to take a position on whether or not Buffett is planning to accumulate a brand new firm so as to add to his portfolio.
This story has been up to date with extra info.