Investors across the world will be closely following the meeting and will have a lot to look forward to as they cope with rising market volatility, turmoil in the banking industry, and a hawkish US Federal Reserve (the Fed) that’s made aggressive attempts to limit inflation.
The markets have been unpredictable this year. In light of this, imparting some of the renowned Buffett and Munger financial advice at the meeting can go a long way towards supporting investors in making good investment choices during times of market instability.
It should be noted that Berkshire has been less active since its buying binge last year; no significant announcements have been made since then. Buffett’s renowned stock selection has also slowed down since last year, as the conglomerate has shown a stronger interest in holding onto its wealth than investing it in new ventures.
succession plan
Given the advanced years of Buffett (92) and Munger (99), shareholders will want specific information regarding the insurance giant’s succession strategy. Subject to Buffett and Munger’s permission, Greg Abel, who has served as Chairman and CEO of Berkshire Hathaway Energy and Chairman of Berkshire Hathaway’s non-insurance activities since January 2018, appears qualified to assume leadership of the company.
US financial crisis
When there is a major crisis, Berkshire Hathaway is renowned for making wise decisions. Its $5 billion investments in Goldman Sachs at the height of the financial crisis in 2008 and Bank of America in 2011 both proved to be wise decisions.
Investors will be interested in hearing what Buffett and Munger have to say about the current US banking crisis, which has seen three US banks collapse since March, including the Silicon Valley Bank (SVB). Buffett recently told CNBC that the US hasn’t seen the last of bank collapses.
Japan investments
Investors will also quiz Buffett and Munger about their most recent investments in Japan and the reasoning behind them. Buffett made investments in Itochu, Mitsubishi, Mitsui, Sumitomo, and Marubeni, five of the top companies in the nation. According to Buffett, Berkshire currently holds its largest stake outside of the US and Europe at 7.4% of each firm.
Inflation
Investors will also be keen to know the views of Munger and Buffett on the inflation and how the rate hike trajectory will play out going ahead.
Biden, jobs, war
The Berkshire Hathaway AGM this year comes a day after the latest job numbers, and Biden’s commentary on the outlook for the US economy. Hence, investors will keenly watch out for the views of Buffett and Munger on the job numbers, Biden’s prospects in the 2024 elections, and the ongoing Russia-Ukraine war.