- It’s the first Omaha without the Oracle this Saturday
- Berkshire Hathaway’s annual shareholder meeting comes as its stock lags the S&P 500® by the most since the 2000 dot-com bubble
- While there may initially be a somber tone, equity owners will look for clues on capital deployment plans and what new leadership means in the years ahead
Shareholder meeting season is in full swing. The headliner is undoubtedly Berkshire Hathaway’s world-famous gathering in Omaha on Saturday, May 2. But “Woodstock for Capitalists” will be different this year.
For years, Warren Buffett shaped the meeting into something closer to a macro forum layered atop a company update. His commentary, alongside the late Charlie Munger’s sharp mind and entertaining voice, kept Berkshire stockholders and the investing world glued to TV screens on the first Saturday in May.
When the Oracle Goes Quiet
It wasn’t just Buffett’s thoughts on valuations, earnings growth, and management teams’ strengths and weaknesses we all looked to, but also his wit and ability to connect with everyday investors, something few CEOs could match. While he’s still the chairman and largest equity owner of Berkshire, the world’s 14th-richest person is not expected to speak this Saturday.
Buffett’s viewpoints would have been quite helpful in today’s economic and market backdrop. The conflict in Iran presses on, now approaching the 60-day mark. Global oil prices have climbed back above $100 per barrel (Brent). Consumer sentiment is at an all-time low. All the while, the S&P 500 (and some of Berkshire’s equity positions) is at record highs. Amid an unsettled and disparate landscape, the onus now falls on the new CEO, Greg Abel, to deliver a state-of-the-market speech of sorts.
Abel’s Turn at the Mic
Buffett’s shoes cannot be filled, of course, and Abel is likely to focus on business-level performance, something value investors will eat up, but the investor community may tune out somewhat quickly. Still, the Canadian businessman, who had been Berkshire’s vice chairman for non-insurance operations and was appointed to Berkshire’s board of directors well before being named Buffett’s successor in 2021 and officially assuming the CEO role on January 1 of this year, brings hands-on expertise.
The Oracle still has the final say on some investment decisions, but Abel’s experience across Berkshire’s operations may add valuable color to the holding company’s capital deployment plans and to how firm-specific trends may impact various industries. Hence, we believe there will be signal to glean from the all-day event.
Market Thought & Cash Questions
Moreover, absent Warren, investors should anticipate a broader group of operating executives to chime in and take part in the Q&A session (much like a typical Fortune 500 Annual General Meeting). Granular insights across insurance, transportation, industrials, and consumer-facing businesses come at an ideal moment, given cross-asset trends, and after five Mag Seven companies post quarterly results this week.
Perhaps most controversial regarding Berkshire today is its large $370–$380 billion cash position. To be clear, the liquidity buffer is not as alarming as it appears when framed against the company’s asset base. Cash as a percentage of market cap is also not as eye-popping as some internet articles would lead portfolio managers to believe.
But it’s nothing to sneeze at, and the cash hoard has surely weighed on and returns. Over the past 12 months, Berkshire shares are down 11%, compared to the S&P 500’s 31% total return. The stock, now the 10th largest by market cap in the S&P 500 Index, has chopped around since Buffett announced he’d step down as CEO at last year’s meeting. The 31-percentage-point gap is the worst for Berkshire since the year 2000.
Patience vs. Pressure
Abel is likely to reference Buffett’s explanation for the safety net and liquidity buffer: opportunities are simply too few and too small to meet Berkshire’s required return thresholds, and patience is the preferred approach. In a world of fast money and 40% pops and drops over a few weeks (see software equities earlier this year and semiconductor stocks more recently), stepping back to see the big picture is refreshing.
But holders of the Class A and Class B shares will want answers and details on how the company will once again deliver value. Perhaps Abel will outline a more aggressive investment structure? We’ll be watching and listening.
Getting Down to Business
Indeed, this will not merely be a “congrats and best of luck” tone among the thousands of contrarian investors soon to board flights to Nebraska. Without Buffett leading the discussion, tone and corporate body language become more important variables. Warren’s communication style, while down-home and folksy, set clear boundaries and helped anchor expectations. The cut of Abel’s jib brings about a new and wider range of interpretations, particularly when addressing complex and evolving topics.
Ultimately, it’s possible that Berkshire Hathaway’s first shareholder meeting without Buffett will draw less attention. The tide rises, the tide falls in the investment world. Gone are the days of incredible alpha generated by Berkshire and the stock acting as the primary U.S. economic bellwether. Yes, things change, but continuity will play a central role this Saturday. Berkshire’s long-term ownership mindset, disciplined approach to putting cash to work, and its “buy America” mantra are elements likely to stand the test of time.
A Busy Stretch on the Corporate Event Data Calendar
What unfolds in Omaha is important, and so is the busy slate of Annual General Meetings and investor conferences now through June. The Q2 earnings season slows down over the back half of this week, and attention then shifts back to key next week. Before then, $16 trillion of mega-cap tech(ish) market cap will serve up January-through-March results.
We invite and encourage portfolio managers, traders, and all investors to join us this afternoon (Wednesday, April 29, at 1:00 p.m. ET) for our Clarity in Chaos: Leveraging Data and Earnings Insights in a Volatile 2026 Market webinar. Hear from an expert panel as they share how institutional investors use quantitative strategies, insider sentiment, and corporate action data to find clarity in today’s whipsaw macro environment.
The Bottom Line
Our speakers will provide cutting-edge insights on geopolitics, “the Visibility Gap,” and the AI arms race. This Saturday will be a time to reflect on Buffett’s impact on Berkshire and the stock market more broadly. Together, you can prepare for what might come next in today’s uneven market and economy.