The Berkshire Hathaway shareholders meeting, often referred to as “Woodstock for capitalists,” is an annual event where tens of thousands of Warren Buffett fans gather in Nebraska to hear the Oracle of Omaha speak. This year’s event will be more somber as it will be the first meeting without Buffett’s longtime business partner and friend, Charlie Munger, who passed away in November. Greg Abel and Ajit Jain, who are expected to succeed Buffett in leading the company, will join him on stage, but Munger’s absence will be felt as he was known for his witty remarks and valuable advice.
Buffett opened Berkshire’s 2023 annual report with a dedication to Munger, praising him as the architect behind the conglomerate they built together. Munger joined Berkshire Hathaway in 1978 as vice-chairman and played a crucial role in its success. Despite his significant contributions, Munger often let Buffett take the spotlight and was like an older brother or loving father to him, offering guidance without seeking credit for his role in the company’s growth.
The passing of Munger has raised questions about succession at Berkshire Hathaway. Abel, who was named heir apparent in 2021, has been working closely with Buffett to ensure a smooth transition when he eventually takes over leadership of the company. Buffett has expressed confidence in Abel’s ability to maintain and improve Berkshire’s performance, reassuring investors that a strong succession plan is in place. The company is expected to release its 2024 first-quarter earnings at the meeting, with operating profits projected to increase by 21%.
Berkshire Hathaway reported a significant uptick in fourth-quarter operating earnings, reaching $8.5 billion, up from $6.6 billion the previous year. For the full year, operating earnings also rose to $37.3 billion, setting a record for the company. The conglomerate closed the year with a net profit of $96.2 billion, marking a significant turnaround from the previous year’s net loss. Buffett’s quarterly report is typically released over the weekend to give investors time to digest the information before trading resumes on Monday, and Berkshire’s Class A stock has seen a 10% increase this year, outperforming the S&P 500.
Despite the absence of Munger, the Berkshire Hathaway shareholders meeting remains a highly anticipated event for investors and Buffett fans. The company’s strong financial performance and succession plan have reassured shareholders about its future stability and growth. As Berkshire continues to navigate the post-Munger era, all eyes will be on Abel and Jain as they take on greater leadership roles within the company. Buffett’s dedication to Munger serves as a reminder of the important role he played in shaping Berkshire Hathaway into the successful conglomerate it is today, and his legacy will be remembered by shareholders and fans alike.