Photo/Berkshire Hathaway 

On May 3rd, local time, the much-anticipated Berkshire Hathaway Annual Shareholders Meeting, often referred to as the “Investor’s Spring Festival” commenced in the small town of Omaha, Nebraska.

This year’s meeting marked a departure from tradition, as it was the first without the iconic duo of Warren Buffett and Charlie Munger sharing the stage. Instead, Buffett was joined by Vice Chairmen Greg Abel and Ajit Jain. Spanning three days, the highlight is expected to be the Q&A session starting at 9:15 AM local time on May 4th (10:15 PM Beijing time).

According to the newly released “Attendee Guide,” Buffett will randomly select and answer any questions posed by shareholders, similar to the previous year, with an anticipated 40-60 questions being addressed. Abel and Jain will join the morning session to answer questions, while the afternoon session will feature Buffett and Abel.

In an interview with the NBD, John M. Longo, former Vice President of Merrill Lynch and professor at Rutgers Business School, suggested that Buffett might face a series of financial-themed questions, such as persistent inflation, the impact of AI on society and investments, the situation in the Middle East, the Paramount acquisition battle, Federal Reserve policies, and issues related to the U.S. federal deficit and debt.

NBD summarized five key points of interest for the shareholder Q&A session:

1. Leadership Transition: The passing of Munger adds a somber note to this year’s meeting. As a key architect of Berkshire Hathaway, Munger not only helped shape the company’s strategy but also influenced its investment philosophy. With his passing and Buffett’s advancing age, the succession plan for Berkshire Hathaway will garner attention.

2. Investment Portfolio: Investors eagerly await Buffett’s insights on Berkshire Hathaway’s investment portfolio. Since 2020, Buffett has significantly increased his stakes in the Japanese market. As Berkshire Hathaway becomes a prominent foreign investor in the Japanese stock market, Buffett is likely to continue discussing his investment strategies in Japan.

3. Macroeconomics and Geopolitics: Buffett is known for his discussions on macroeconomics, especially the U.S. economy, during the shareholders’ meetings. This time, how Buffett views the current state of the U.S. economy and the Federal Reserve’s interest rate expectations will be a focal point for investors. Additionally, there is anticipation that investors may seek Buffett’s perspective on current geopolitical hot topics, such as the Middle East and the Russia-Ukraine situation.

4. AI and Cryptocurrency: Amidst the ongoing AI boom, Buffett expressed his concerns about AI at last year’s meeting, contrary to the global surge in enthusiasm. Given that Berkshire Hathaway holds substantial shares in companies like Apple, Amazon, and Snowflake, which are heavily investing in AI, investors are keen to hear if Buffett has updated views on AI and tech stocks.

5. Cash Reserves: By the end of 2023, Berkshire Hathaway’s cash reserves reached a record $167.6 billion. Analysts believe that the “Oracle of Omaha” is still waiting for better opportunities. Despite continuous investments in stocks like Occidental Petroleum, since the $11.6 billion acquisition of Alleghany Corp in 2021, Buffett has not made any major transactions. With Berkshire’s cash and U.S. Treasury holdings far exceeding traditional levels, Buffett may face questions about his cash reserve strategy at the meeting.