Tens of thousands of investors are gathering in Omaha, Nebraska this weekend to hear from chairman and CEO Warren Buffett at Berkshire Hathaway's 59th annual meeting on Saturday.
Buffett, 92, and vice chairman Charlie Munger, 99, are scheduled to take shareholder questions for about five hours, and those in attendance will want to hang on to every word from the "Oracle of Omaha" as he discusses Berkshire's investment strategies, his views on the economy and his prognostications for inflation and digital currencies.
Attendance at this "Woodstock for Capitalists" is expected to be up significantly from last year, which was the first in-person meeting since the pandemic began, Buffett's assistant told Reuters.
Buffett is expected to answer questions on recent U.S. bank failures, the Federal Reserve's efforts to combat inflation, the possibility of a looming recession and the ongoing debt ceiling debate in Washington, D.C.
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Berkshire holds major investments in Bank of America, American Express, Citigroup and Bank of New York Mellon. While Buffett has said that "nobody is going to lose money on a deposit in a U.S. bank," he did acknowledge selling some bank stock in an interview with CNBC in mid-April following Silicon Valley Bank's collapse.
Munger, meanwhile, recently raised concerns that American banks are "full of bad loans" and in "trouble" in the commercial property market. He explained in an interview with the Financial Times that banks are "way tighter on real estate loans to day than they were six months ago."
"It’s not nearly as bad as it was in 2008," he said. "But trouble happens to banking just like trouble happens everywhere else."
The pair will likely face questions about some of Berkshire's other investments, including Buffett's more than $13 billion stake in Occidental Petroleum and equity holdings in car insurer Geico, BNSF Railway, Chevron, Fruit of the Loom and Apple. They might also be asked about Buffett's cryptocurrency skepticism and comments that Bitcoin is "a gambling token" that "doesn't have any intrinsic value."
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And, of course, there will be interest in Berkshire Hathaway's recent performance. The conglomerate reported a record $30.8 billion operating profit in 2022, which Buffett said reflected a "good" year. The company also posted a $22.82 billion annual net loss.
Analysts expect Berkshire on Saturday to report more than $7 billion of first-quarter profit, according to Reuters.
Buffett might also be asked whether he plans to retire soon, with vice chairman Greg Abel waiting in the wings to assume control of the conglomerate. Abel made headlines last fall after he bought nearly $70 million worth of stock in Berkshire Hathaway, though his investment doesn't hold a candle to Buffett's 15.6% stake in the company, which gives him control of more than 30% of Berkshire's voting stock.
Abel currently oversees all of Berkshire Hathaway's non-insurance business, but Buffett has given no indication that his retirement is imminent.
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In his February letter to shareholders, the legendary investor sounded optimistic about the U.S. economy, and he expressed confidence in his ability to continue leading the conglomerate after nearly six decades at the helm.
"I have been investing for 80 years – more than one-third of our country’s lifetime. Despite our citizens’ penchant – almost enthusiasm – for self-criticism and self-doubt, I have yet to see a time when it made sense to make a long-term bet against America," he wrote. "And I doubt very much that any reader of this letter will have a different experience in the future."
Aside from the Q&A session, Berkshire Hathaway shareholders will get down to business on a series of proposals that address issues including climate change, diversity and political advocacy, and some activist shareholders who want to oust Buffett as chairman.
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The largest U.S. public pension fund, the $455 billion California Public Employees' Retirement System (CalPERS), for a third straight year wants Berkshire to report annually on how it addresses climate change. Just over a quarter of votes in 2021 and 2022 supported the idea.
Another proposal from Illinois state Treasurer Michael Frerichs seeks to have Berkshire's board disclose how the company governs climate risks.
Buffett, with his 32% voting power, opposes the proposals.
Fox Business' Julia Musto, Joe Toppe and Reuters contributed to this report.
