OMAHA, Nebraska – Legendary investor Warren Buffett assured shareholders on May 4 that the executives expected to succeed him at Berkshire Hathaway were ready for the job and heaped praise on Apple, even though Berkshire recently trimmed its position in the iPhone maker.

Speaking at Berkshire Hathaway’s annual meeting, Mr Buffett also paid tribute to his late partner Charlie Munger and said he expected the conglomerate’s cash pile, which reached a record US$189 billion (S$255 billion) last quarter, to continue growing.

The meeting was the 60th for Mr Buffett, who took over Berkshire in 1965 and turned it into an expansive company valued at US$862 billion and owning BNSF railroad, Geico car insurance, Dairy Queen and other businesses. It was also the first since Mr Munger, Mr Buffett’s long-time friend, business partner and foil, died in November at the age of 99.

In a downtown Omaha arena, Mr Buffett was joined on stage by vice-chairmen Greg Abel, who was designated Mr Buffett’s successor as chief executive in 2021, and Ajit Jain.

Mr Abel, 61, and Mr Jain, 72, have had direct oversight of Berkshire’s dozens of operating subsidiaries since 2018, freeing Mr Buffett and, before his death, Mr Munger to focus on capital allocation. Mr Buffett said he was happy with that arrangement.

“When you’ve got somebody like Greg and Ajit, why settle for me?” he said. “It has worked out extremely well.”

Mr Buffett, 93, gave no sign he plans to step aside, telling shareholders, “I feel fine”, while joking he should not take on four-year employment contracts.

Before the meeting, Berkshire announced first-quarter results, including a 39 per cent jump in operating profit to a record US$11.2 billion.

Decreasing Apple stake, growing cash

In a surprise move, the conglomerate also reported it had sold about 13 per cent of its Apple shares, reducing the value of its stake to US$135.4 billion from US$174.3 billion. Apple’s stock price fell 11 per cent in the quarter.

The sale was the main cause for Berkshire’s cash hoard to soar. Mr Buffett said cash might grow from US$189 billion last quarter to US$200 billion this quarter, reflecting the risks from high stock market valuations and geopolitical conflicts.

Despite decreasing Berkshire’s stake in Apple, Mr Buffett praised the tech company, saying it was “an even better business” than two of Berkshire’s oldest investments, American Express and Coca-Cola.

The iPhone was “one of the greatest products, and it may be the greatest product, of all time”, Mr Buffett said, with Apple CEO Tim Cook in the audience.

Berkshire invested in Apple in 2016, and the normally tech-phobic Mr Buffett came to view it as a consumer goods company with strong pricing power and devoted customers. While some investors have expressed concern that Apple represented too much of Berkshire’s now US$335.9 billion equity portfolio, Mr Buffett said Apple would remain the company’s biggest investment, barring unforeseen events.

He added that he expects the US government to increase taxes to tackle a widening fiscal deficit rather than reduce spending.

Mr Abel, meanwhile, pledged to fight lawsuits seeking tens of billions of dollars from Berkshire’s PacifiCorp utility unit over Oregon wildfires in 2020, but called them a substantial challenge.

At the start of the meeting, shareholders watched a video tribute to Mr Munger, including photos of Omaha from 1924 when he was born and clips of Mr Buffett and Mr Munger through the years.

Mr Munger had been a fixture on stage with Mr Buffett at the meetings, known for his laconic and acerbic comebacks to Mr Buffett’s musings about Berkshire, the economy, Wall Street and life.

He was the “architect of today’s Berkshire”, Mr Buffett said.

Early wake-up

Before the meeting, thousands lined up early outside the arena in raw, rainy weather. When the doors opened at 7am, many ran for the best seats.

Mr Bill Gunther, 72, a retired state forester from Newfane, Vermont, said he arrived at 1.41am to get in line, with a lawn chair to sit and sleep on.

“I feel very bullish about Berkshire,” he said. “They’re so diversified and have a good company culture.”

Berkshire’s stock is up 23 per cent over the last year. While that lags the Standard & Poor’s 500 index’s 25 per cent gain, Berkshire has risen 218 per cent over the last decade versus the S&P’s 172 per cent gain.

The shareholder weekend, which Mr Buffett calls “Woodstock for Capitalists”, also featured an exhibit hall for shareholders to buy goodies such as Berkshire T-shirts and Squishmallows toys at exhibits by Berkshire-owned companies.

“I was here since 2.30am,” said investment manager Serena Lam, 32, who along with 40 others had flown in from Hong Kong. “I want to see Warren Buffett. I want to get his perspective about Japanese stocks. I flew over 25 hours for this.” REUTERS