Buffett prepares for 59th shareholder meeting amid looming questions.

Warren Buffett to Preside Over Berkshire Hathaway Annual Meeting Amid Turmoil

Investors are making their pilgrimage to Omaha, Nebraska this weekend for Berkshire Hathaway Inc’s annual meeting, presided over by Warren Buffett for the 59th time. Dubbed “Woodstock for Capitalists,” tens of thousands of people are expected to attend, up significantly from last year’s in-person meeting. While Berkshire has a succession plan in place, with Vice Chairman Greg Abel slated to succeed Buffett as CEO, investors know that their time to see and hear Buffett and longtime Vice Chairman Charlie Munger is limited.

Investment Questions Looming

Buffett and Munger are due to answer five hours of shareholder questions at the meeting. Abel and Vice Chairman Ajit Jain will join in the morning. Among the topics expected to be addressed are recent U.S. bank seizures, Federal Reserve efforts to fend off inflation while avoiding recession, and the potential fallout if lawmakers in Washington do not raise the ceiling on how much debt the federal government can take on. Berkshire’s largest bank and financial services investments as of Dec. 31 were Bank of America Corp, American Express Co, Citigroup Inc and Bank of New York Mellon Corp. Other questions may address Buffett’s own huge investments in Apple Inc and Occidental Petroleum Corp, or his now-uncertain bet that video game maker Activision Blizzard Inc can be acquired by Microsoft Corp.

Six Proposals to Be Presented

At the meeting, shareholders are due to present six proposals for Berkshire to address including on climate change, diversity and political advocacy, and a renewed call for Berkshire to install someone other than Buffett as chairman. Buffett opposes all six proposals. 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. Buffett’s control of 32% of Berkshire’s voting power makes passage of the proposals an uphill battle.

Analysts Expect Strong First-Quarter Profit

Analysts expect Berkshire on Saturday to report more than $7 billion of first-quarter profit from its dozens of businesses including the BNSF railroad, Geico car insurance and many energy, manufacturing and retail operations. While Berkshire no longer far outperforms markets over long periods as it did in Buffett’s early days, in the past decade it has slightly outpaced the Standard & Poor’s 500 including dividends, often with less volatility. And Berkshire has kept growing, with Buffett spending $19.7 billion since October to buy the Alleghany insurance company and a larger stake in truck stop operator Pilot Travel Centers.

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