OMAHA, Nebraska, April 30 (Reuters) – Warren Buffett on Saturday used the annual meeting of Berkshire Hathaway Inc (BRKa.N) to counter the surplus on Wall Street and praise the benefits of money after quickly spending tens of billions on shares and companies, while addressing the risk to its conglomerate of the threat of nuclear war.
The meeting in downtown Omaha, Nebraska, was Berkshire’s first shareholder greeting in 2019, before COVID-19 derailed America’s largest corporate gathering in two years. This allowed shareholders to ask questions directly to Buffett and Berkshire Vice Presidents Charlie Munger, Greg Abel and Agit Jane.
Buffett’s comments came after Berkshire, long criticized for keeping too much empty money, revealed it had amassed more than $ 51 billion in shares in the first quarter, including a much larger stake in Chevron Corp. (CVX.N).
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Berkshire also said operating profit for the first quarter had changed little as many of its dozens of businesses withstood supply chain disruptions caused by COVID-19 variants and the invasion of Ukraine. Read more
Buffett, 91, said it “really feels good” to address shareholders in person after the last two meetings were held without them. Among those present were Jamie Dimon, CEO of JPMorgan Chase & Co (JPM.N), and shareholder actor Bill Murray, among others.
In his annual letter to shareholders in February, Buffett complained about the lack of investment opportunities.
This prompted a shareholder to ask what changed in March when Berkshire bought 14.6% of Occidental Petroleum Corp (OXY.N) and agreed to pay $ 11.6 billion to insurer Alleghany Corp (YN).
Buffett said it was simple: he became interested in Occidental after reading an analyst’s report, and in Alleghany after CEO Joseph Brandon, who once ran Berkshire General Re’s business, wrote to him.
“Markets are doing crazy things and sometimes Berkshire gets a chance to do something,” he said. “It’s not because we’re smart … I think we’re smart.”
Berkshire’s share fell more than $ 40 billion to about $ 106 billion in the quarter, but Buffett assured shareholders not to worry.
“We will always have a lot of money,” he said. “It’s like oxygen, it’s there all the time, but if it disappears in a few minutes, it’s over.”
Buffett and Jane came across answers when asked if the conflict in Ukraine could degenerate into a nuclear war.
Jane, who has captured Buffett for decades, said he had a “lack of ability” to assess Berkshire’s insurance exposure.
Buffett also looked disappointed, saying he had a “very, very, very low” risk of a nuclear attack, even though the world was “getting closer” during the 1962 Cuban Missile Crisis.
“The world is tossing a coin every day,” Buffett said. “Berkshire has no answer. There are some things we don’t write policies about because we won’t be able to do them anyway. “
Buffett also chose a preferred target, Wall Street, saying the stock market sometimes looks like a casino or gambling partner.
“This has been overwhelming over the last few years, encouraged by Wall Street,” he said.
For his part, the 98-year-old Munger echoed Nancy Reagan’s criticism of bitcoin, saying that if a counselor offered to put your retirement bill there, “just say no.”
Abel, who would succeed Buffett as CEO if Buffett could not serve, defended Berkshire’s BNSF railway line, saying he had “more to do” to improve operations and customer service and compete. with rival Union Pacific Corp (UNP.N).
Shareholders will later vote on whether Berkshire should replace Buffett with an independent chairman – he will remain chief executive – and reveal how dozens of companies promote diversity and tackle climate risk and mitigation.
Hours before the doors opened at 7 a.m. CDT (12:00 GMT), thousands of people began to gather in front of an arena in the city center where the meeting is being held.
Berkshire predicts lower attendance than in 2019, and about 10% to 15% of the seats in the normally full arena were empty.
As at other Berkshire-sponsored events this weekend, almost everyone in attendance did not wear masks, although all needed proof of vaccination against COVID-19. CNBC.com also broadcasts the meeting online.
“I bought a chair from Walmart so I could sit down,” said Tom Spain, founder of Henry Spain Investment Services in Market Harbor, England, who arrived at 3:15 a.m. to attend his third meeting. “Everyone uses it. Next year I can bring a huge container of coffee and give it away.”
Lauritz Fenselau, a 23-year-old owner of a software company in Frankfurt, Germany, showed up at 4 a.m. for his first meeting.
“Warren and Charlie are the priests,” he said. “It’s like worship.”
Andres Avila of Boston, a big Buffett fan, arrived in Omaha just five hours before he left at 4:45 a.m., carrying an umbrella to ward off the rain.
“I have a bunch of my idols here,” he said.
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Report by Jonathan Stempel and Carolina Mandle in Omaha, Nebraska; edited by Megan Davis, Ross Russell and Diane Kraft
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