This grand event is not only a "spiritual totem" for value investors, but also a barometer of global economic trends.
On May 3, 2025, $Berkshire Hathaway-A (BRK.A.US)$ the Shareholders Meeting will be held in Omaha, USA. This year marks the significant milestone of Buffett's acquisition of Berkshire Hathaway 60 years ago. At 94 years old, Buffett has confirmed his attendance, and although successor Greg Abel will be more involved, Buffett will still be present for the entire event, which may be his last time fully participating in the Shareholders Meeting.
This grand event is not only the "spiritual totem" of value investors but also a weathervane for Global economic trends.
60th anniversary milestone
Compared to previous years, this year's schedule has been adjusted, but the core purpose remains unchanged - to answer questions for global shareholders, facilitate in-depth communication, and showcase the unique charm of Omaha, the "sacred place of value investing." This knowledge feast lasting more than ten days not only systematically deconstructs Buffett's investment philosophy but also innovatively transforms the concept of value investing in the global Capital Markets.
The special significance of this year's Shareholders Meeting lies in the possibility that it marks the end of the "Buffett era" and the beginning of a new era. Although 94-year-old Buffett has confirmed his attendance, successor Greg Abel's role will be more prominent. The market generally expects this may be Buffett's last full participation in the Shareholders Meeting, making the six-hour marathon Q&A session particularly precious. Investors will have the opportunity to listen closely to Buffett sharing his investment wisdom accumulated over more than half a century while observing how Abel interprets and continues Berkshire Hathaway's investment philosophy.
According to public information, the core agenda of this year’s shareholders' meeting includes:
May 2: A welcome dinner will be held at Borsheims, a subsidiary of Berkshire, where Buffett will interact with political and business figures along with attendees.
May 3: The main meeting will be held at CenturyLink Center, featuring keynote speeches by Buffett and Abel along with a 6-hour Q&A session, with topics expected to cover tariff policies, AI technology development, US stock valuation, cash reserve strategies, and other hot topics.
May 4: Traditional events include a 'Invest in Yourself’ 5-kilometer run and a steak feast at Gorat's Steakhouse, Buffett's favorite.
This year’s shareholders' meeting will focus on three core discussions:
Global asset allocation strategy: The five major Japanese trading companies that Berkshire bottomed out in 2020 have made over 10 billion USD in profits, and the market is concerned whether there will be further investments in Asia or a shift towards India, Southeast Asia, and other emerging markets by 2025.
Huge cash deployment: As of March 2025, Berkshire's cash reserves reached 334 billion USD, with over 300 billion USD allocated to short-term US Treasury bonds, accounting for nearly 5% of the entire US Treasury bill market, even exceeding the Federal Reserve’s holdings. Investors are eagerly awaiting Buffett's explanation of the strategic intent behind such a large cash reserve in a low-interest environment.
Responses to global economic changes: Covering disruptions from tariff policies, warnings of debt crises, and asset pricing strategies during the interest rate cutting cycle.
Berkshire Global Asset Allocation
Asia strategy upgrade and adjustment: Berkshire's most successful international investment in recent years is undoubtedly the layout in Japan's five major trading companies (Itochu Corporation, Marubeni, Mitsubishi Corporation, Mitsui & Co., and Sumitomo Corporation). This investment, started in 2020, now has a total market value of 23.5 billion USD, earning more than 10 billion USD in profits. The market is closely watching whether Buffett will signal a continued increase in investment in Japan or shift towards other Asian markets (such as India's infrastructure, Southeast Asian consumer market) at this shareholders' meeting. It is particularly noteworthy that after liquidating BYD, whether Berkshire will quietly invest in A-shares through channels like QFLP (Qualified Foreign Limited Partner) will become a significant barometer affecting foreign capital's confidence in investing in China.
Conservative cash management: The most striking feature of Berkshire's current asset allocation is its enormous cash reserves and nearly extreme conservative configuration. As of the end of March 2025, the company's cash reserves reached a record high of 334 billion USD, of which over 90% (300.87 billion USD) is invested in short-term US Treasury bonds, an amount equivalent to 4.89% of the entire US Treasury bond market (6.15 trillion USD). This means that for every 20 USD of Treasury bonds in circulation, 1 USD belongs to Berkshire, with their holdings even exceeding that of the Federal Reserve (195 billion USD). This allocation highlights Buffett's extreme emphasis on safety and liquidity in the context of high stock valuations and ongoing global economic uncertainty.
Trend of portfolio centralization: Berkshire's equity investments are characterized by high concentration, with 71% of the positions focused on five core holdings: American Express, Apple, Bank of America, Chevron, and Coca-Cola. This highly concentrated investment structure not only reflects Buffett's consistent philosophy of focusing on quality companies but also implies his strong confidence in core US enterprises amid rising geopolitical risks and uncertainty in international trade policies. Notably, at the end of 2024, Buffett significantly reduced his holdings in Apple, causing financial sector holdings to once again surpass the information technology sector, leading to a market allocation pattern for Berkshire's secondary market holdings that includes finance, information technology, consumer goods, and energy.
The path of entry and exit in the energy sector: The NENGYUANHANGYE is one of the key areas where Berkshire has focused its investments in recent years. Since the first quarter of 2022, Buffett has been buying listed companies in the NENGYUANHANGYE extensively, and this strategy has yielded substantial returns in the high oil price environment of 2024. However, with the acceleration of global energy transition and breakthroughs in New energy Fund technology, the market is paying attention to whether Buffett will adjust his energy investment logic at this shareholders' meeting, especially after the Los Angeles wildfires caused a 1.3 billion USD loss for Berkshire's insurance company, which may lead to greater scrutiny on his assessment and response strategies related to climate change risks.
The role of 'cash cow' in the Insurance Business: Berkshire's insurance business continues to play a crucial role, providing the group with substantial 'float'. The 2024 Earnings Reports show that insurance-related businesses provided Berkshire with 171 billion USD in float, an increase of 5 billion USD compared to the end of 2023. This figure contrasts sharply with 0.039 billion USD in 1970, showcasing Buffett's exceptional ability to build a massive cash pool through the insurance business. This low-cost funding serves as the 'ammunition' for Berkshire's industrial investments and is a key advantage in capturing 'fat pitch' opportunities during market downturns.
Inheritance and Change
In July 2024, Buffett announced a significant modification of his will, planning to stop donations to the Gates Foundation after his death, and instead have his three children jointly manage approximately 128 billion USD of personal wealth for charitable purposes. This decision marks a significant shift in Buffett's charitable strategy and reflects his trust in his children's managerial capabilities. Buffett's three children—Susie, Howard, and Peter—each have made significant contributions in the charitable field, focusing on early childhood education, food security, and indigenous rights respectively. The newly established Buffett Family Charitable Fund will adopt a 'three-vote veto system', requiring unanimous agreement among the three for any decision regarding the use of funds, a mechanism aimed at ensuring the long-term stable operation of charitable funds.
Although Buffett has not explicitly announced a retirement timetable, the 2025 Shareholders' Meeting is seen as a key milestone in the succession process. Greg Abel, as the designated successor, is expected to take on more hosting and Q&A roles during this meeting, giving investors the opportunity to evaluate his leadership style and investment philosophy. It is worth noting that Buffett's two children, Susie and Howard, are currently also serving on Berkshire Hathaway's Board of Directors. How this model of family governance alongside professional management evolves will be a focus of long-term observers.
Whether Berkshire's unique investment culture—emphasizing long-termism, management autonomy, and capital allocation efficiency—can be maintained in the post-Buffett era is one of the core issues of this shareholders' meeting. Abel, as the former CEO of Berkshire Energy, has rich operational experience, but his capabilities in large-scale operation and stock selection remain to be tested by the market.Mergers and Acquisitions.Investors look forward to hearing Abel's explanation of Berkshire's future investment priorities during the Q&A session, particularly how to balance Buffett's traditional "value investment" approach with the investment opportunities in the new economic environment.
In the 2024 Shareholder Letter, Buffett emphasized that Berkshire possesses "unparalleled financial strength and diversified profit streams;" this statement can be seen as an endorsement of the company's value in the post-Buffett era. Management may need to provide more concrete evidence to support this claim during the meeting.
This article is reprinted from "Wind Wande"; edited by Zhitong Finance: Wang Qiu-Jia.
Editor/Lee
