OMAHA, Nebraska—The day has arrived: Warren Buffett is set to take the stage to address a large gathering of shareholders and admirers, this time without his longtime partner Charlie Munger.
Ahead of the event, long lines of Berkshire Hathaway shareholders began forming as early as 5 a.m. local time on Saturday, eager to secure seats in the arena to hear the legendary investor speak. Buffett, the 93-year-old chairman and chief executive of Berkshire, will be joined by Greg Abel, his designated successor as CEO, and Ajit Jain, who oversees Berkshire's insurance business, to answer questions from shareholders.
Historically, investors have posed questions to Buffett and his team on various topics, including economic trends, stock selection, and the performance of Berkshire's subsidiaries such as Geico and BNSF Railway. The Q&A session is scheduled to commence at 9:15 a.m. CT.
In the lead-up to the annual meeting, attendees reminisced about Munger, Buffett's longtime partner at these gatherings, who passed away at 99 in November. Melissa Vainik and her mother, Rosalyn Slater, from West Bloomfield, Michigan, decided to make the trip to Omaha once again. Slater fondly remembered Munger's sharp wit.
"Because of his passing, we felt the need to come," Vainik said. "What if something happens to Warren Buffett, and then it's the end of an era?"
Veterans of Berkshire's annual meeting are well aware of the large crowds. Those aiming for prime seats could enter the convention center's parking lots as early as 3:30 a.m. Nearby hotels filled up quickly, with 93% of rooms in the county booked on the Friday and Saturday nights of last year's meeting.
On Friday, shareholders strolled past a towering inflatable Geico gecko to purchase Squishmallows plush toys resembling Buffett and Munger from Jazwares, a Berkshire subsidiary. They also lined up to tour a mock-up of a NetJets private plane while enjoying frozen treats from Dairy Queen. A house from Clayton Homes, a pontoon boat from Forest River, and Buffett and Munger bobblehead dolls from Oriental Trading were among the other attractions on display.
LaWanda Cartwright, a semiretired kindergarten teacher from Auburn, Washington, traveled to Omaha with her son and teenage granddaughter. Years ago, Cartwright decided to gift her grandchildren shares of Berkshire instead of toys. "You own a little bit of Dairy Queen," she would tell them when they visited the chain.
"So it made them aware of investment possibilities," Cartwright said.
The day's events began with the release of Berkshire's first-quarter results. The company reported net income of $12.7 billion, or $8,825 per Class A share equivalent, down from $35.5 billion, or $24,377 per Class A share equivalent, a year earlier.
Operating earnings, which exclude certain investment results, rose to $11.2 billion from $8.1 billion the previous year.
Buffett advises investors to focus on operating earnings to evaluate the company's performance. Accounting rules require Berkshire to include unrealized gains and losses from its substantial investment portfolio in its net income calculations, meaning stock market fluctuations can significantly impact quarterly results.
Berkshire's cash reserves reached a record $189 billion, including cash equivalents, up from $167.6 billion at the end of the previous year. Berkshire's followers are eager for hints about Buffett's plans for the cash, whether it be acquiring a new business, purchasing stocks, or increasing share buybacks. Berkshire does not pay a dividend.
Berkshire's Class B shares have climbed 12% this year, outpacing the S&P 500's 7.5% increase. This has boosted the company's market value to approximately $865 billion, making it the seventh-largest U.S. company by market capitalization, with the top spots all held by tech giants.