Berkshire investors weigh future under new CEO Greg Abel

OMAHA, Nebraska — Stockholder shopping day begins Berkshire HathawayAt its annual meeting, cautious optimism was in the mood as new and returning investors weighed the company’s direction under a new CEO.

Shareholders in a noticeably weaker crowd on Friday expressed skepticism that Greg Abel, who took over as CEO in January, will dominate the stage with the same storytelling and wit that Warren Buffett and Charlie Munger have used to enthrall tens of thousands of attendees for decades. They also expressed confidence in Buffett’s choice to take over the conglomerate, as the billionaire investor has given effusive praise to Abel over the years.

“I spent a lot of time vetting Greg,” said Robert Hagstrom, chief investment officer of EquityCompass Investment Management. “I think he’s not only the right guy — and he’s been vetted by a lot of people over many years — but he’s also the right guy at the right time.”

Hagstrom, who writes about Buffett’s investment principles in “The Warren Buffett Way,” said Abel will bring operational expertise that aligns with Berkshire’s future.

Confidence in Buffett’s choice was echoed at the convention center. International business owner Peter Yang, who traveled 18 hours from Hong Kong to Omaha, was attending the meeting for the first time. He bought Berkshire shares last year after Buffett signaled his plan to step down as CEO. Yang stated that he was comfortable with the transition and stated that Buffett’s support of Greg Abel gave him confidence in the succession.

“I trust Greg because Warren won’t hand over the reins to someone who isn’t capable. I have no interest in the company,” Yang said.

Like other shareholders, Kim Shannon, founder and co-CIO of Sionna Investment Managers, a Toronto-based boutique asset management firm, expressed skepticism that Abel would be as much fun onstage as Buffett and Munger, but said she still expressed confidence that Berkshire principles would endure.

“I think we’re all going to be cautious about continuing the legacy, but I think some of his comments in this year’s annual report about continuing the legacy suggest that the legacy is structured to stand the test of time,” Shannon said. “And we will find out in time.”

Shannon also said, “For institutional investors like me, the reason to be here is not just about what happens on stage during the day at the annual meeting, but also to meet your peers in the group.” he said. “And this was already a win for me and could be a bonus tomorrow.”

Official pivot

Among the first-time attendees was a farmer in his 60s from Wahoo, Neb., who said he made the trip after buying Berkshire shares five years ago. He expressed his unwavering confidence in Buffett and said he sees Abel as a reliable successor who has long served as Buffett’s right-hand man.

Still, he noted that increasing economic pressures such as inflation and affordability are top of mind, adding that he hopes Abel will find more direct solutions to these challenges as he moves into the spotlight.

On the East Coast, Wanda Lee and Susan Chan decided to skip the conference this year and instead broadcast from Chan’s home in Asbury Park, NJ. The two friends have been going to annual reunions on and off for about 15 years, leaving their husbands at home for a girls’ trip to Omaha. But while Lee expressed belief that Buffett had good judgment in choosing Abel, he said they are taking a break this year while processing the leadership transition. He also has no plans to get rid of Berkshire Class B shares, which he first invested in 17 years ago.

“The official pivot at Berkshire Hathaway begins Saturday,” said Hagstrom of EquityCompass Investment Management. “And the whole world will see it.”