Greg Abel led his first annual meeting as CEO of Berkshire Hathaway on Saturday, stepping into a role held for decades by Warren Buffett before a crowd noticeably smaller than the gatherings the 95-year-old chairman once commanded. The arena in Omaha, Nebraska, was a little over half full — a significant decline from the more than 40,000 shareholders who once filled it — but the day’s focus was on the performance of the conglomerate’s businesses, the disruptions of war, and the promises and perils of artificial intelligence.
Abel opened the afternoon with a detailed review of how Berkshire’s largest businesses are performing, from insurance and the BNSF railroad to its utilities and manufacturing operations. He described how the company is using artificial intelligence “to solve problems at our companies,” but he also used a deepfake video of Buffett asking a question about Berkshire’s long-term prospects to underscore the technology’s risks.
“It’s scary,” Buffett said later in the meeting, suggesting AI could be used to create a convincing but fake image of a leader of a nuclear-armed country.
Vice Chairman Ajit Jain addressed the conflict in the Middle East directly. Jain told shareholders Berkshire would be willing to insure ships crossing the Strait of Hormuz, a narrow choke point that carries much of the world’s oil supply.
“The short answer is it depends on the price,” Jain said, adding that enough capacity exists across the insurance industry to take on the risk and that it was essential to have coverage available.
Abel acknowledged the war was creating challenges across Berkshire’s holdings because oil is so embedded in its businesses’ costs, but said the company’s managers would work through them. “We very quickly move to what is the best solution for our customers,” Abel said.
The meeting opened with a video tribute to Buffett, including a clip of the standing ovation he received at last year’s meeting when he surprised shareholders by announcing he would step down. Abel then announced the retirement of commemorative jerseys bearing Buffett’s name and the name of Charlie Munger, the vice chairman who died in 2023. The jerseys will hang in the arena’s rafters.
Signs of the leadership change were evident in the 200,000-square-foot exhibit hall where Berkshire subsidiaries sell their products. Abel’s image now adorns See’s Candy gift boxes. His caricature sits on a truck windshield at the Pilot Travel Center booth — in the driver’s seat. A new plush doll of Abel is sold alongside versions of Buffett and Munger.
For shareholders such as Chris Bloomstran, who runs Semper Augustus Investments Group, the shift in tone from Buffett’s years of folksy wisdom to a more operational presentation was welcome. “Sadly we miss Warren and Charlie and that show which was fun,” Bloomstran said, “but it’s a business meeting for a lot of us and hearing what the businesses are doing is what it’s all about.”
Bob Robotti, an investor, said he came to Omaha primarily to network with other people who follow the value-investing philosophy Buffett made famous. “That’s why I’m really here,” Robotti said.
Abel stressed that Berkshire’s long-standing practice of giving its CEOs the authority to manage day-to-day operations will not change under his leadership. He also insisted he would not rush to put the company’s massive cash reserves to work.
“One of our greatest strengths at Berkshire is patience and being disciplined at allocating our capital,” Abel said. “We’re not anxious to deploy capital into subpar opportunities.”
Several Berkshire CEOs said little about their businesses has changed since Abel’s promotion in January. They now report to NetJets CEO Adam Johnson, who oversees 32 of Berkshire’s retail and service companies, rather than directly to Abel. Brooks Running CEO Dan Sheridan said the company’s culture was deeply rooted and would continue under the new structure. Dairy Queen CEO Troy Bader said the arrangement allowed Buffett to stay around to advise the new CEO — “the greatest combination right now.”
Abel is regarded inside the company as a more demanding and hands-on manager than Buffett, but those who work for him say he challenges CEOs to build moats around their businesses and serve customers rather than issuing orders.
On Saturday morning, Berkshire reported first-quarter earnings of $10.1 billion, more than double the figure from a year earlier, driven by investment gains and improving results at most of its operating companies. Geico’s underwriting profit rose to $1.7 billion from $1.34 billion, while profits increased at BNSF, the utilities, and the manufacturing divisions. Even so, Abel acknowledged BNSF still lags its major freight-rail competitors and needs further improvement.