Warren Buffett at Berkshire Hathaway Annual Meeting 2024

Investors hope Warren Buffett will provide more insight into the next level of management at Berkshire Hathaway, after the passing of Charlie Munger brought the question of succession to the fore, one analyst said.

“Succession is quite frankly a top of mind issue for most investors. And it’s kind of like the elephant in the room given Warren Buffett’s age, given the passing of Charlie Munger,” said Cathy Seifert, senior vice president at CFRA Research.

“It’s my hope that Berkshire outlines or reassures investors that the management bench at the firm at the broader firm is deeper than perhaps what some people may perceive. I happen to think that there is a lot of talent a couple of rungs below the people we see sitting on the desk during the annual meeting,” Seifert added. “I think that Berkshire would do itself a favor to sort of maybe highlight some of those people.”

— Sarah Min

Berkshire Hathaway shares are beating the market this year, but they could further rally should the Federal Reserve cut interest rates given its mix of cyclical businesses, one analyst says.

“I think it’s safe to say that interest rates are stable,” said Cathy Seifert, senior vice president at CFRA Research. “And, in a stable-to-declining interest rate environment, a lot of Berkshire’s economically sensitive businesses should do reasonably well.”

CFRA’s Seifert has a buy rating on the company. Her 12-month price target of $472 implies Berkshire shares can climb roughly 18% from Thursday’s closing price of $400.60 per share.

— Sarah Min

The gathering could be a chance for Buffett to explain why Berkshire has trimmed investments in his favorite stock Apple.

For the second quarter in a row, Berkshire’s Apple holdings have declined. In the fourth quarter, it sold about 10 million Apple shares (just 1% of its massive stake). Then, in the first quarter, it appears Berkshire sold another 116 million shares.

That’s based on the disclosure that Berkshire’s Apple stake is worth about $135.4 billion, which would be around 790 million shares, or a decline 13% in its investment.

Buffett’s sales have come as a surprise for some as he has grown to become such a big fan of the iPhone maker, even calling it his second-most important business after Berkshire’s cluster of insurers. Moreover, the last time Buffett trimmed this stake was in late 2020 and he called it “probably a mistake.”

The move could be prompted by valuation concerns. Apple rallied 48% in 2023, making up 50% of Berkshire’s portfolio at its peak.

— Yun Li

Berkshire Hathaway continues to sit on a massive cash pile. Its first-quarter earnings report reveals cash equivalents climbed to $188.99 billion from $167.6 billion at the end of 2023.

Shareholders will be eager to hear how Warren Buffett and the rest of Berkshire management plan to put this money to use. Buffett has lamented in past years how troublesome it has been to find appropriate acquisition targets.

The increase in cash, comes as operating profit in the first quarter rose 39% to $11.22 billion from a year ago.

—Fred Imbert, Christina Cheddar Berk

It was a cold and drizzly morning in Omaha, where tens of thousands of attendees flocked to the CHI Health Center Omaha arena to hear Warren Buffett speak the 2024 Berkshire Hathaway shareholders meeting.

— Sarah Min

CFRA is bullish on B shares of Berkshire Hathaway ahead of the company’s annual meeting.

The firm called the stock “undervalued versus historical averages” and anticipates catalysts in the Berkshire Hathaway’s earnings release Saturday morning.

Shares of Berkshire Hathaway are up nearly 13% year to date.

To read more about CFRA’s call and what it expects from CEO Warren Buffett during the so-called “Woodstock for Capitalists,” read the full story here.

— Michelle Fox

There’s a chance that Buffett will reveal the mystery wager Berkshire has been buying for two quarters straight.

In the third and fourth quarters of 2023, Berkshire was granted confidential treatment to keep the details of one or more of its stock holdings confidential.

Many speculated that the secret purchase could be a bank stock as the conglomerate’s cost basis for “banks, insurance, and finance” equity holdings jumped by $3.59 billion in the second half of last year, according to separate Berkshire filings.

It’s relatively rare for Berkshire to request such a treatment. The last time it kept a purchase confidential was when it bought Chevron and Verizon in 2020.

— Yun Li

The annual meeting could start on a somber note with the absence of Charlie Munger on everyone’s mind.

Pandemic lockdown apart, it will be the first without Munger, Buffett’s longtime partner who passed away in November at the age of 99.

For the first time, Berkshire will broadcast its annual meeting movie that had previously always been reserved only for those in attendance in Omaha. Many speculate this year’s will be a tear-jerker tribute to Munger.

Vice Chairman of Non-Insurance Operations Greg Abel, Buffett’s designated successor, will fill Munger’s seat in the afternoon session, helping answer shareholder questions.

Munger left a mark on generations of investors in a host of ways thanks to a long and fruitful life. He broadened Buffett’s investing approach to focus on quality companies selling at fair prices. Shareholders also appreciated Munger’s one-of-a-kind bluntness and humor.

— Yun Li

CNBC will be livestreaming Berkshire Hathaway’s annual shareholder meeting on Saturday, beginning at 9:30 a.m. ET. Viewers can expect a lively discussion that will provide insight into Warren Buffett’s view of the market, what types of deals Berkshire could make in the year ahead and other key topics.

Here is a rundown of the day’s events:

9:30 a.m. – 10:15 a.m.: Pre-show anchored by Becky Quick and Mike Santoli

10:15 a.m. – 1 p.m.: Berkshire Hathaway morning Q&A session

1 p.m. – 2 p.m.: Halftime show anchored by Becky Quick and Mike Santoli

2 p.m. – 4:00 p.m.: Afternoon Q&A session of annual meeting

4:00 p.m. – 4:30 p.m.: Post-show anchored by Becky Quick and Mike Santoli

Note: Schedule reflects Eastern Time

—Christina Cheddar Berk