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Berkshire AGM: Invest wisely, succession plan among 10 things Buffett can say


With just a few hours to go before Berkshire Hathaway Inc’s annual shareholder meeting, ardent fans of billionaire Warren Buffett are making their way to Omaha, where the meeting is scheduled to be held.

Buffett’s face-to-face meeting later today is only the second such meeting since 2019.

As always, investors around the world are looking forward to the meeting as Buffett and his old friend Charlie Munger, vice president of the world’s sixth most valuable company, will answer a lot of questions from investors. Stakeholders.

The meeting comes at a time when the company is preparing a succession plan for the 92-year-old Buffett.

So here’s a list of key oversights for shareholders at the meeting later today:

* Buffett’s successor

According to reports, Berkshire’s vice president of non-insurance operations, Greg Abel, is tipped to succeed Buffet as the company’s CEO. Although Buffett no longer makes major investment decisions at the company, investors will still look forward to hearing about the following succession plan and strategy.

* American banking crisis

The collapse of three major US banks in just two months has shaken investors and dented their confidence in the banking system despite the government and Federal Reserve’s numerous offers. reassurance.

In a recent interview, Buffett said, “We can’t solve the problem of bank failures,” while reassuring depositors that there was no reason to worry.

Stakeholders and investors will look forward to hearing Buffett’s assessment of the crisis and whether there is any further pain.

* Scale trajectory for 2023

While the banking crisis is at the heart of discussion in the US, concerns around inflation and interest rates are far from over.

Buffett and Munger’s assessment of the US economy and their views on the trajectory of interest rates will also be closely watched by investors.

* Berkshire’s growth in 2023 and beyond

According to estimates of investment technology firm Alpha can see, Berkshire’s total revenue for the first quarter ending March is likely to have grown 22% year-on-year to $83.8 billion. Net income is expected to grow a whopping 52% for the year to $8.32 billion. of Berkshire return on equity is expected to be 6.8%, up from 4.57% in the same period last year.

Predicting growth in 2023 and beyond is what shareholders will be looking for from Buffett.

* Relationship between Buffett-Bill Gates

Ahead of the annual shareholder meeting, a prominent conservative advocacy group is calling for Buffett to be ousted because of his long-standing relationship with billionaire Bill Gates, whose private foundation advocates gender equality, among others. other issues, Bloomberg reported.

* Invest in HP/OXY

Investors will want to know more about Berkshire’s two recent big bets on HP Inc and Occidental Petroleum last quarter.

Buffett’s company invested $4.2 billion in HP Inc last quarter. Berkshire’s biggest stake in recent years has been in fellow tech company Apple Inc, and its stake in HP has now taken over. Iphone producer.

As of the end of 2022, the largest stock held by Berkshire Hathaway, worth $119 billion, is in Apple Inc with a 5.7% stake. Apple accounts for 39% of Berkshire’s total stock portfolio.

Meanwhile, Berkshire further increased its stake in Occidental Petroleum in March, bringing its stake to 22.2%.

* Energy market outlook

Crude oil prices have fluctuated a lot in the past 1 year. As a result, shareholders will want to hear Buffett and Munger’s views on the energy industry following their recent investment in Occidental Petroleum.

* Keep an eye on Japan

While the majority of Berkshire’s investments are in domestic companies, the company has recently increased its stake in several Japanese trading companies. Trading companies in Japan are like large corporations with business activities across many different segments.

According to the report, Buffett has increased his ownership to 7.4% from 5% in five trading companies – Itochu Corp, Marubeni Corp, Mitsubishi CorporationMitsui & Co, and Sumitomo Corp.

Investors and stakeholders want to know the reasoning behind this and Buffett’s views on the Japanese economy.

* Investment mantra

Buffett’s investing style is very popular among the investor community, and so the meeting wouldn’t be complete without the billionaire investor sharing some tips and advice for investors.

There are a lot of worries for investors about the banking crisis, an impending recession, rising interest rates and slowing growth.

So Buffett’s wise words at the annual meeting are certainly something investors will look forward to.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )

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