"Woodstock" without a headliner: what to expect from Berkshire's first meeting since Buffett's departure

Berkshire Hathaway's annual shareholder meeting, known as "Woodstock for Capitalists," will be held this Saturday. For the first time in 60 years, the spotlight will not be on "Oracle of Omaha" Warren Buffett, who has stepped down as CEO, but on his successor Greg Abel.

The meeting will be held under the slogan "The Legacy Continues": Abel promised to follow Buffett's approach to capital and risk management. But it may take years before shareholders are convinced that Abel can at least approach the flair of his predecessor, one of the greatest investors in history, Bloomberg writes. In anticipation of the event, Oninvest has compiled three questions investors are waiting for answers to.

The most difficult of the challenges facing the new CEO is managing Berkshire's giant cash cushion, Reuters writes. Berkshire's cash reserve has grown substantially in recent years as Buffett has searched for stocks and companies worth buying. The company's cash reserve reached $373 billion at the end of 2025.

"Why can't we get rid of the damn money?" - was how Tom Russo, a longtime Buffett admirer and managing partner at Gardner Russo & Quinn, which owns $1.7 billion worth of Berkshire stock, framed the investors' request in a conversation with Business Insider.

Not counting the $9.5 billion purchase of Occidental Petroleum's chemical division, Berkshire hasn't made a major takeover in a decade and hasn't paid a dividend since 1967. By many measures, the stock is now too expensive for Berkshire to buy. The so-called Buffett Indicator, which measures U.S. stock market capitalization as a percentage of GDP, is above 220%, indicating an overheated market.

Russo said investors should remember how Buffett made lucrative deals in the midst of the financial crisis when others were hesitant to take risks. The huge amount of cachet is "an asset that is perfectly designed for today's uncertainty," he said.

"The market may not expect Abel to have the same long-term triumphs as Buffett, but it likely wants to see how he identifies value-promising assets - and that inherently takes time," said Bloomberg Intelligence analyst Matthew Palazola.

Abel has no formal asset management experience but is now responsible for 94% of Berkshire's portfolio, which includes Apple, Coca-Cola and other securities worth about $300 billion, Reuters writes. Abel took over much of the portfolio from former manager Todd Combs, who left to join JPMorgan Chase. Ted Weschler, previously thought to be a candidate to manage the entire portfolio, is responsible for the remaining 6%.

A new CEO could go about optimizing the portfolio by selling small or underperforming assets, Lountzis Asset Management President Paul Lountzis, who has attended Berkshire meetings more than 30 times, told Reuters.

"If Abel wants a more concentrated portfolio that is easier to monitor, it makes sense to cut some positions," agreed Morningstar analyst Gregory Warren. He cited Kraft Heinz as one of the top candidates for attrition in the near future. Berkshire has withdrawn its representatives from Kraft Heinz's board of directors in 2025. Earlier this year, Kraft Heinz said Berkshire may "from time to time offer for sale" its securities.

Abel faces a problem that Buffett has rarely dealt with, Bloomberg writes. In the year since Buffett announced his resignation, Berkshire shares have underperformed the S&P 500 index by more than 37 percentage points, the worst performance since 2000.

Thanks to Buffett's ability to select companies and allocate capital wisely, Berkshire stock has consistently outperformed the market for more than 60 years. That encouraged investors to pay the so-called Buffett premium, valuing Berkshire stock higher than the market as a whole. But Buffett's departure was the catalyst for selling the securities, said UBS Group analyst Brian Meredith.

"Some investors may want to see Greg prove himself in his position before investing. I have confidence in him, but the market is being cautious," said Lawrence Cunningham, a professor of law and corporate governance at the University of Delaware and author of books on Berkshire.

Amid falling stock prices, Berkshire resumed share buybacks in March for the first time since 2024.

According to the schedule, at the meeting on Saturday, Abel will talk about Berkshire's activities for an hour and then answer questions for 2.5 hours. Buffett and the late vice-chairman Charlie Munger could spend five hours each talking to investors, according to Reuters.

Unlike Buffett, known for his wit and willingness to dissect any topic, Abel is not widely known and has said little about himself or his views on issues unrelated to Berkshire. This could make the Q&A session more low-key and serious, Business Insider writes.

"Greg will answer questions in a business style, but without the Warren Buffett-style humor and personal stories," suggests David Kass, a finance professor at the University of Maryland.

"The Q&A session will probably be like a very talented artist performing a cover version of someone else's song," says Buffett fan and Berkshire shareholder for nearly 20 years Brian Gongol. - The lyrics and melody will remain the same, but the interpretation will give the audience something new.

Some investors and experts are predicting that there will be fewer people at this year's Berkshire meeting than in the past, Business Insider notes. "The real connoisseurs are coming this year," said Granite State Capital Management founder Eric Schleien, who has attended every Berkshire meeting since 2006. - You have to be really interested in Berkshire's business and culture to come to a Greg Abel event. I expect fewer people but a higher quality audience."

He said Buffett's absence won't feel like "canceling the headliner" of the concert, "It's more like the band is still playing, but the lead guitarist has come to the forefront."

"People came to hear Warren and Charlie," Visit Omaha executive director Jasmin Goodwin told Reuters. - They weren't coming so much for information about Berkshire. And I expect Abel and other executives to talk about Berkshire."

Berkshire representatives did not comment on the publication ahead of the meeting.

This article was AI-translated and verified by a human editor