The pilgrimage to Omaha for Berkshire Hathaway’s (BRK-B:NYSE) annual shareholder meeting had a tinge of poignancy this year following the passing of Warren Buffett’s long-term business partner and vice-chair Charlie Munger in November 2023.

In memory of the ‘abominable no-man’, as Buffett sometimes referred to Munger, the book stands at the meeting which would normally offer several investment books for purchase, this year just featured Munger’s Poor Charlie’s Almanack for sale.

Berkshire’s chief executive and chair Buffett was joined on stage by his successor-in-waiting Greg Abel and Ajit Jain, who head-up Berkshire’s non-insurance and insurance operations respectively.

The 93-year-old Buffett made his preference clear that following his demise Greg Abel should be responsible for making all Berkshire’s capital allocation decisions including the $336 billion public stocks portfolio, although the board will ultimately make that decision after Buffett’s death.  

‘I may try to come back and haunt them if they do it differently,’ joked Buffett.

Before the 4 May shareholder meeting, many observers had expected the chief executive role and investment role to be divided between Abel and investment managers Todd Combs and Ted Weschler who manage the pension assets of Berkshire’s operating companies.

Berkshire revealed a 39% jump in first-quarter operating profit to $11.22 billion driven by a 185% surge in insurance underwriting profit to $2.59 billion, although Buffett cautioned investors against extrapolating the strong results for the full year.

The company’s burgeoning cash pile has reached a record $189 billion, up from $167.6 billion in the fourth quarter. Responding to a question on why Berkshire has not been tempted to put the cash to better use, Buffett replied ‘we only swing at pitches we like’ reiterating a discipline the nonagenarian has advocated for decades.

Berkshire trimmed its stake in Apple (APPL:NASDAQ) for the second consecutive quarter, although its $135.4 billion value means it remains the largest single bet in the public stocks portfolio and the second most important holding after Berkshire’s insurance operations.

Interestingly, in response to audience questions on the Apple share sale, Buffett said it was to avoid potentially higher taxes further down the road as the government funds increasing fiscal deficits.

‘If I’m doing it at 21% this year and we’re doing it a little higher percentage later on, I don’t think you’ll actually mind the fact that we sold a little Apple this year,’ Buffett added.

Buffett reiterated Apple remains a core holding alongside soft drinks giant Coca-Cola Co (KO:NYSE) and premium credit card business American Express (AXP:NYSE). 

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