Tens of thousands of Berkshire Hathaway shareholders and Warren Buffett fans gathered in Nebraska for the annual shareholder meeting, also known as “Woodstock for capitalists.” This year’s event will be more subdued as it marks the first appearance of Warren Buffett without his longtime business partner and friend, Charlie Munger, who passed away in November. Greg Abel and Ajit Jain, expected successors to Buffett, will join him on stage, but Munger’s absence will be felt due to his wit and wisdom.
In the 2023 annual report, Buffett dedicated the report to Munger, describing him as the “architect” behind the conglomerate they built together. Munger’s role in the success of Berkshire Hathaway was significant, as he joined the company in 1978 and worked alongside Buffett, offering sage advice and support. Their partnership was likened to an older brother or loving father relationship, with Munger allowing Buffett to take the credit for their joint success.
Munger’s passing has raised questions about succession at Berkshire Hathaway. Greg Abel was named heir apparent in 2021, and Buffett has expressed confidence in Abel’s ability to lead the company. Berkshire also reported strong earnings for the first quarter of 2024, with operating profits expected to increase by 21%. The company’s Class A stock has risen nearly 10% this year, outperforming the S&P 500.
Berkshire Hathaway reported a significant increase in fourth-quarter operating earnings, totaling $8.5 billion, a 28% increase from the previous year. For the full year, operating earnings rose to $37.3 billion, setting a record for the company. The conglomerate closed the year with a net profit of $96.2 billion, a significant turnaround from the previous year’s net loss.
Despite the somber tone of this year’s shareholder meeting, Buffett and his team remain focused on the future success of Berkshire Hathaway. With strong leadership in place and a track record of financial performance, the company is well-positioned for continued growth and success. Investors can expect transparency and strong communication from Buffett, who releases his quarterly reports over the weekend to ensure that shareholders have time to digest the information before trading resumes on Monday. Buffett’s dedication to Munger and commitment to the company’s legacy serve as a reminder of the enduring impact of their partnership on Berkshire Hathaway and the investing world.
