Berkshire CEO Greg Abel earns solid first scorecard after first annual meeting

OMAHA, Nebraska — On its first run Berkshire HathawayAt his annual meeting, Greg Abel conveyed what many shareholders came to see: a steady hand, a solid grasp of the sprawling conglomerate and just enough of his own style to reassure investors that the post-Warren Buffett era is on solid footing.

Reviews from longtime shareholders and professional investors were generally positive, but many acknowledged the notable absence of Buffett, whose intelligence, storytelling and investment acumen have long defined the event.

“Very solid. No misspelled words. Comprehensive answers,” said Steve Check, founder of Check Capital Management. “Nice guy, but definitely not the laughs we had with Warren and Charlie [Munger]”

“Greg and company presented on content, review of businesses and confidence in the outlook,” said Macrae Sykes, a portfolio manager at Gabelli Funds.

David Kass, a finance professor at the University of Maryland and a Berkshire shareholder for decades, said his confidence in Berkshire grew after seeing Abel’s performance firsthand. He noted the firm’s “deep roster,” including executives such as Ajit Jain, Berkshire’s vice president of insurance operations; Adam Johnson, president Berkshire’s consumer productsservice and retail businesses; and BNSF Railroad CEO Katie Farmer – as proof that continuity of leadership goes far beyond a single number.

“Greg has demonstrated his knowledge and passion for running all of Berkshire’s businesses,” Kass said. “His main focus is operations. In contrast, Buffett focuses more on the investment side of Berkshire.”

Detailed information

This shift in emphasis was evident throughout the Q&A session, where Abel delved into detailed discussions about Berkshire’s subsidiaries; This was a level of specificity that resonated with shareholders seeking assurance on execution under new leadership.

“The answers were really good as they provided detailed information,” said Tilman Versch, founder and German shareholder of the investor community Good Investing. “Everyone misses Warren. His clear, consistent and funny answers are hard to replace. But hopefully with more practice Greg can find his style.”

Abel opened the session with a nearly hour-long presentation to investors explaining the inner workings of Berkshire’s major businesses. It delved into performance and outlook across its rail unit, energy operations, insurance arm and retail subsidiaries, offering a level of operational detail that shareholders said was more akin to an investor day than the freewheeling, anecdote-driven format of past meetings.

Turning to technology

Artificial intelligence emerged as the main theme of the meeting. Abel said Berkshire is already exploring AI-powered tools to improve operations at BNSF Railroad, and he spoke fluently about technologies such as large language models, highlighting their potential to enhance the company’s existing businesses.

He also noted that the increase in data center development is a significant tailwind for Berkshire’s utility operations and that rising power demand creates a significant growth opportunity for energy grid assets.

“She’s clearly been very comfortable with technology and AI, unlike Warren, who has generally eschewed tech-focused investments outside of Apple and more recently Google,” said Adam Patti, managing director of VistaShares and manager of an ETF that tracks Berkshire’s largest holdings. “Perhaps this can provide insight into how the portfolio might evolve over time.”

Buyback disappointment

The pace of Berkshire’s share buybacks has been disappointing to some shareholders.

According to its earnings report, the company repurchased $235 million worth of shares in the first quarter. The company had already announced a $226 million stock purchase on March 4; This means it only slightly increased its purchases as the quarter ended.

“The only piece that was missing was actual guidance on additional buybacks,” Patti said. “I was hoping they would be more aggressive about it.”

“I am disappointed in the lack of significant buybacks,” Check said. “I think they were expecting a lower price, but they had bought much more at that valuation before.”

The crowd may still be adjusting to a Berkshire meeting without Buffett onstage. But after this first outing, investors seem increasingly willing to give Abel the space and time to define the next chapter on his own terms.

“They’ve actually incorporated more businesses than ever before because it used to be just Warren answering Warren questions,” said Susan Chan, a longtime shareholder who along with friend Wanda Lee decided to skip the meeting this year. Instead, they watched from Chan’s home in New Jersey and found the new format instilled confidence in Berkshire’s future direction. “And now it’s more of, ‘Our shareholders are our family. And we’re going to show you exactly what we’re investing in and what we’re doing.'”

“We made a conscious decision not to go this year,” Chan said. “But we said to each other, ‘Let’s go next year.'”