Preface: The Historic Berkshire Hathaway AGM

Last Saturday saw the iconic Berkshire Hathaway’s annual general meeting (AGM) marking the first era post-Charlie Munger’s death, who passed away at 99 last year. Buffett hailed Munger as the “architect” behind the modern Berkshire Hathaway, which has vastly expanded and is now the largest conglomerate in the S&P 500.

A Departure From Tradition

For the first time, the AGM was open to non-shareholders who watched a cine montage featuring Munger’s memorable quotes over the years and celebrity appearances. Answering shareholder queries was Buffett, accompanied by Berkshire vice-chairs Greg Abel and Ajit Jain.

Warren Buffett on Apple and AI

During the Q&A, Buffett addressed the company’s decision to scale down its Apple holdings during Q1. He remained optimistic that Berkshire Hathaway would stay as the largest equity investment by year-end, despite the sale of shares.

Buffett on Artificial Intelligence

Artificial Intelligence (AI) was a hot topic, with Buffett repeatedly admitting his limited knowledge of AI. Yet, he compared its advent to the impact of the nuclear bomb, suggesting that it is a genie that cannot be put back in the bottle.

A Growing Pile of Cash

In reference to the growing pile of cash and Treasury holdings, Buffett anticipates these holdings’ value to exceed \$200 billion this quarter, expressing satisfaction with the position.

Investing Overseas and In China

On the topic of investing overseas and specifically, China, Buffett held firm that Berkshire’s chief investments would persist in being within the U.S.

Greg Abel Directing Investment

On succession, Buffett has earmarked Greg Abel to steer Berkshire’s investments after Buffett’s tenure. Abel, who is on track to succeed Buffett as CEO, with Todd Combs and Ted Weschler, has been instrumental in reshaping Berkshire’s equity portfolio over the years.

Federal Reserve Policy and More

Buffett gave his take on the Federal Reserve policy, hinting that he is more concerned about the U.S. government’s mounting deficit than the Fed policy. In his closing remarks, he joked, “I not only hope that you come next year, but I hope I come next year.”

Conclusion

The meeting ended on a light-hearted note but included crucial insights into Berkshire’s future investments and how Greg Abel will helm the ship. While Buffett’s thoughts on AI reflect widespread sentiment within the business community, his faith in U.S. investments reinforces his long-held belief in the American economy. These takeaways from the meeting underscore Buffett’s wisdom and his capacity to balance changes with traditions at Berkshire Hathaway.