Jonathan Stempel and Koh Gui Qing reported from OMAHA, Nebraska for Reuters that Warren Buffett assured Berkshire Hathaway shareholders on Saturday that the executives expected to succeed him were ready for the job, and he heaped praise on Apple although Berkshire trimmed its position in the iPhone maker.
Speaking at Berkshire’s annual meeting, the legendary investor paid tribute to his late business partner Charlie Munger and said he expected the conglomerate’s cash pile, now a record $189 billion, to keep growing.
The meeting marked Buffett’s 60th, during which he transformed Berkshire from a failing textile company into an $862 billion conglomerate owning various businesses such as the BNSF railroad, Geico car insurance, and Dairy Queen.
Buffett expressed confidence in Vice Chairmen Greg Abel and Ajit Jain as his successors, with Abel designated as the future chief executive and Jain overseeing Berkshire’s operating subsidiaries since 2018.
Before the meeting, Berkshire announced a record $11.2 billion operating profit for the first quarter, with a surprise revelation that the company had sold about 13% of its Apple shares, reducing the stake’s value to $135.4 billion from $174.3 billion.
Despite reducing the Apple stake, Buffett praised the company and described the iPhone as one of the greatest products of all time.
Buffett also mentioned Berkshire’s cash hoard reaching $200 billion this quarter due to high stock market valuations and geopolitical risks.
Abel pledged to fight lawsuits seeking tens of billions of dollars from Berkshire’s PacifiCorp utility unit over Oregon wildfires in 2020, describing it as a substantial challenge with many unfounded claims.
Shareholders reelected all 14 Berkshire directors and rejected six shareholder proposals, all of which Buffett opposed.
Lines formed hours before the meeting, with thousands lining up in raw, rainy weather to enter the arena and participate in the weekend events.
As usual, Buffett interspersed comments on Berkshire’s portfolio with musings about wealth and life, including his own.
