3 Highlights of the Berkshire Hathaway Annual Meeting – May 4, 2024

Three highlights of the Berkshire Hathaway Annual Meeting are:

(1) When Warren Buffett is no longer CEO:

Buffett: “I would leave the capital allocation to Greg … he understands businesses extremely well,” Buffett said. “If you understand businesses, you’ll understand common stocks.”

My interpretation is that Greg Abel, as CEO, will decide overall capital allocation, including how much of Berkshire’s capital  (cash now $189 billion) should be invested in equites (now $336 billion). Investments in equities are likely to be made by Ted Weschler and Todd Combs.

(2) Buffett reduced Berkshire’s stake in Apple by 13% (about $30 billion) in Q1 2024. Since he expects cash to increase from $182 billion at the end of Q1 to $200 billion by the end of Q2, he is likely selling shares in Apple at a similar rate in Q2. Although he views Apple as a long-term holding, he is planning to substantially reduce Berkshire’s stake in 2024 and beyond.

(3) Buffett sold 100% of Berkshire’s stake in Paramount at a substantial loss. This investment was his decision and not that of Combs or Weschler.