7 Takeaways From The Berkshire Hathaway Annual Meeting

Berkshire Hathaway’s annual meeting, often referred to as the “Woodstock of Capitalism,” took place on May 6th, 2022. The event, which is attended by thousands of shareholders and investors, is an opportunity for Berkshire Hathaway’s Chairman and CEO, Warren Buffett, and Vice Chairman, Charlie Munger, to provide insights into the company’s performance and their views on the economy and the markets.

Here are the five key takeaways from the 2022 Berkshire Hathaway annual meeting:

1. Berkshire Hathaway’s performance in 2021 was strong: Berkshire Hathaway reported a profit of $29.3 billion for the first quarter of 2022, up from $14.8 billion in the same period last year. Buffett attributed the strong performance to the company’s diverse portfolio of businesses, which includes insurance, retail, and energy companies.
2. Berkshire Hathaway is focusing on its energy business: Buffett and Munger highlighted the company’s energy business as a key area of growth. The company has been investing in renewable energy and has been working to reduce its carbon footprint. Buffett also mentioned that Berkshire Hathaway’s energy business has been a strong performer and that they are optimistic about its future prospects.
3. Berkshire Hathaway is not making any major acquisitions at the moment: Despite having a large cash pile, Buffett and Munger stated that they are not currently looking to make any major acquisitions. They explained that they are not finding any opportunities that meet their criteria for a good investment. Buffett also mentioned that they are not interested in buying technology companies, as it is not an area of expertise for them.
4. Berkshire Hathaway is bullish on the U.S economy: Buffett and Munger expressed optimism about the U.S economy, stating that they believe the country is well-positioned for long-term growth. They highlighted the country’s strong labor market, low unemployment, and low-interest rates as positive factors. However, they also mentioned that they are monitoring inflation and its impact on the economy.
5. Berkshire Hathaway’s succession plan is in place: The topic of succession has been a concern for investors, as Buffett is now 91 years old. However, Buffett and Munger reassured shareholders that the company’s succession plan is in place, and that the board has identified a successor who will take over when Buffett and Munger are no longer able to lead the company. They did not reveal the name of the successor.

In conclusion, the Berkshire Hathaway annual meeting provided valuable insights into the company’s performance, its focus on growth, and its views on the economy and the markets. The company reported strong financial results, highlighted its energy business as a key area of growth, and is not making any major acquisitions at the moment. Additionally, Berkshire Hathaway is bullish on the U.S economy and reassured investors that the company’s succession plan is in place. The meeting also provided an opportunity for shareholders and investors to hear directly from Buffett and Munger and gain valuable insights into their investment philosophy.