7 minutes ago
“We have our own ‘King Charles’ here today,” says Buffett, introducing Charles Munger
As Buffett took the stage on Saturday, he was referring to the coronation of King Charles III, which took place hours earlier in England, as he introduced the crowd to his longtime partner, Charlie Munger.
“When I woke up this morning, I realized we had a competition show somewhere in the UK,” Buffett said. “They celebrated a ‘King Charles’ and we have our own ‘King Charles’ here today.”
– Alex Harring
17 minutes ago
Buffett says AI probably won’t tell you which stocks to buy
Microsoft on mobile with ChatGPT 4 on screen as seen in this image. On March 15, 2023 in Brussels, Belgium.
Jonathan Raa | Nurphoto | Getty Images
Warren Buffett said that while AI can help look for stocks that fall under certain parameters, it has limitations beyond that.
“It’s kind of weird,” he said in an interview with NBC’s local Omaha affiliate. “I don’t think it’s going to tell you which stocks to buy. It can tell me any stock that meets a certain criteria, or criteria in three seconds. But it does have definite limitations in some ways. You should see the jokes it turned out.”
Buffett added that he was tinkering with ChatGPT three months ago when Bill Gates showed him how it worked.
“It’s very interesting,” he continued. “He can translate the constitution into Spanish in a second. But the computer couldn’t tell jokes. He could be told to make a joke about Warren and Krypto. He read every book and watched everything on TV, but he couldn’t do that. I told Bill to bring it back if I can ask, ‘How do you get rid of the human race?’ I want to see what it says – and unplug it before it does.”
— Hakyung Kim
20 minutes ago
A deal with Buffett would bring “confidence” to the banking sector, says Ariel Investments’ Rogers
Warren Buffett before the Berkshire Hathaway annual stockholders meeting in Omaha, Nebraska.
David A Grogan | CNBC
Warren Buffett has been there as a source of stable capital for the financial system in the past when it seemed troubled. With the current turmoil among banks, it would be a big deal if he reemerged for the sector, said John Rogers, chairman and co-CEO, chief investment officer of Ariel Investments.
“That would bring a lot of confidence in the economy and the financial system,” he said. “Whenever he rises – we all believe in him so much so I think it would be great if he could be of help during that time and deliver a great return for Berkshire shareholders.”
“He’s so revered around the world and I know the Biden administration has spoken to him and I know other leaders do,” Rogers added. “You can bet he’s the first call from many of the big banking giants on Wall Street to make sure they get his best advice and include him in these conversations.”
– Tanaya Macheel
26 minutes ago
Berkshire chocolate coins and Buffett-style clothing ahead of the meeting
Warren Buffett tours the grounds of the Berkshire Hathaway annual shareholders’ meeting in Omaha, Nebraska.
David A Grogan | CNBC
The multi-day event, dubbed “Woodstock for Capitalists,” kicked off Friday with an opportunity for shareholders to buy the company’s many brands, ranging from Dairy Queen and See’s Candies to Brooks Sports and Pampered Chef. One of the latest additions to the portfolio, plush toy brand Squishmallows, made its colorful debut.
Those who attend the significance often seize the opportunity to snag items specially made for the event.
– Christina Cheddar Berk
38 minutes ago
Buffett asks actress Jamie Lee Curtis to convince Munger to buy internet stocks
Warren Buffett and Charlie Munger greeted attendees with a welcome video featuring a special guest – Jamie Lee Curtis.
Buffett asked the actress to convince Munger to buy stock in “this something called the internet.”
The actress made flirtatious remarks while calling both of them separately from her bed, affectionately referring to Buffett as “Warren’s all-you-can-eat buffet” and Munger as “Charlie Hunger.”
– Sarah Min
41 minutes ago
Buffett’s longtime track record: Why there are smiling faces in Omaha on Saturday
A look at Warren Buffett’s long-standing track record explains the smiling faces on Omaha Saturday, many of whom became millionaires thanks to the investment guru’s smart moves and patient philosophy of value.
Berkshire Hathaway’s compound annual gain from 1965 through the end of last year was 19.8%, compared to 9.9% for the S&P 500. That’s a total return of 3,787,464% versus 24,708% for the benchmark.
Certainly Buffett’s track record has rivaled that of the S&P 500 more recently. For the past 10 years, Berkshire has returned 11% annually, roughly on par with the S&P 500.
See grafic…
Long-term Berkshire stock price
48 minutes ago
Oakmark Funds’ Bill Nygren learned this important lesson from Warren Buffett
Anyone can learn from Warren Buffett — including Oakmark Funds’ Bill Nygren.
One practice that stands out is the use of adjusted GAAP accounting for intangible assets, the value investor said in an interview with CNBC on Friday.
“I think GAAP accounting was really meant for a tangible world,” he said. “You can touch it and feel it, it goes on the balance sheet. If you can’t touch it or feel it, spend it.”
But this setup isn’t “representative of the economics” that exist and the investment in the business world for things like R&D and brand equity.
“These things are all zero on the balance sheet,” Nygren said. “As a value investor, if you don’t make adjustments, you’re unnecessarily narrowing your universe.”
Though Oakmark Funds doesn’t own Berkshire Hathaway stock, Nygren called it an attractive investment opportunity for many.
“Berkshire rarely has the level of controversy it takes to make a truly compelling value stock, but it’s a great deal,” he said. “It’s doing extremely well, so probably not cheap enough to meet our criteria.”
— Samantha Subin
Before an hour
Berkshire’s auto insurer Geico is making a big turnaround
Gecko character display for GEICO Insurance during the Berkshire Hathaway Annual Stockholders Meeting in Omaha, Nebraska.
Yun Li | CNBC
Berkshire’s auto insurer Geico saw a major turnaround in the first quarter after benefiting from higher average premiums and a reduction in advertising expenses. Geico posted an underwriting profit of $703 million. The auto insurer suffered a $1.9 billion pretax underwriting loss last year as it lost market share to rival Progressive.
Ajit Jain, vice chairman of Berkshire’s insurance operations, previously said the biggest culprit for Geico’s underperformance is its failure to keep up with competitors on telematics programs that allow insurers to view customers’ driving data, including their mileage and speed, to collect a better pricing policy.
— Yun-Li
Before an hour
Berkshire’s operating profits plummet in the first quarter
Warren Buffett’s Berkshire Hathaway reported a 12.6% increase in operating profit for the first quarter, driven by a rebound in the conglomerate’s insurance business.
Insurance income was $911 million, a sharp increase from $167 million a year ago. Insurance investment income also increased 68% to $1.969 billion from $1.170 billion.
Berkshire’s cash holdings also increased to $130.616 billion from $128 billion in the fourth quarter of 2022.
—Fred Imbert
2 hours ago
Warren Buffett’s successor Greg Abel convinces shareholders
Greg Abel, Chairman of Berkshire Hathaway Energy, center, during a shareholder buying day prior to Berkshire Hathaway’s annual meeting in Omaha, Nebraska, U.S. on Friday, April 29, 2022.
Dan Brouillette | Bloomberg | Getty Images
Warren Buffett’s replacement, Greg Abel, will join the Oracle of Omaha and Charlie Munger onstage Saturday to answer questions about non-insurance operations.
Abel has taken on many responsibilities at the huge conglomerate while increasing his stake in the company, giving shareholders hope that the company’s culture will live on.
“He does all the work and I do the bows — it’s exactly what I wanted,” Buffett said in a CNBC interview in Japan on April 12. “He knows more about the individuals, the business, he’s seen them all… They haven’t seen me on the BNSF Railroad for 10, 12 years or so.”
— Yun-Li
2 hours ago
NetJets pilots protest outside the arena saying they are underpaid
A number of NetJets pilots protested outside the CHI Health Center.
Yun Li
A number of pilots from Berkshire’s private jet company NetJets lined up in front of the CHI Health Center while shareholders waited to enter the arena. They held up signs that read “overworked” and “underpaid,” which said they wanted to renegotiate their contract. NetJets became a subsidiary of Berkshire in 1998.
— Yun-Li
2 hours ago
Shareholders begin to queue in downtown Omaha
Some of the people who lined up at the CHI Health Center in downtown Omaha for the annual Berkshire Hathaway meeting have been queuing for the event since 2 a.m.
– Sarah Min
2 hours ago
Berkshire Hathaway has outperformed in recessions and bear markets, tailor-made data says
According to data from Bespoke Investment Group, Berkshire Hathaway has a history of outperforming the S&P 500 during recessions and performing particularly well during bear markets. Since 1980, Berkshire stocks have outperformed the broader market by an average of 4.41 percentage points over the course of six recessions.
The stock’s performance in bear markets is even more impressive. During the same period, the conglomerate outperformed the S&P 500 every time it fell 20%, beating the broader index by a median of 14.89 percentage points.
″[One] The stock that has earned a solid reputation for safety is Berkshire Hathaway (BRK/A), and based on the past few decades, the award is well deserved,” read a tailored note earlier this week.
– Sarah Min
2 hours ago
What to expect from Warren Buffett and Charlie Munger
Charlie Munger before the Berkshire Hathaway annual meeting in Omaha, Nebraska.
David A Grogan | CNBC
Crowds of Berkshire Hathaway shareholders wait in light rain on an overcast Saturday morning to get to the CHI Health Center in Omaha.
Business and markets are always at the fore at these events, but this year’s gathering comes at a particularly challenging time. On Monday, First Republic became the third US bank to default since March, further stoking fears of an imminent recession. As always, in uncertain times, investors will look to 92-year-old Warren Buffett for folk wisdom.
In Berkshire’s shareholder guide, Buffett promised to answer more questions this year. With that in mind, CNBC Pro took a look at some of what are probably the most pressing issues. Questions could range from a discussion of what types of acquisitions the company might make to Buffett’s prospects for the banking sector. What’s next for auto insurer Geico could also be fair game.
—Yun Li
3 hours ago
Here’s CNBC’s coverage schedule for the Berkshire Hathaway annual meeting
Warren Buffett tours the grounds of the Berkshire Hathaway annual shareholders’ meeting in Omaha, Nebraska.
David A Grogan | CNBC
CNBC will broadcast Berkshire Hathaway’s annual stockholders’ meeting live Saturday starting at 9:45 a.m. ET. Often referred to as “Woodstock for capitalists,” investors flock to Omaha, Nebraska to hear Warren Buffett’s thoughts on the market. He often shares the many lessons he’s learned during his decades of investing.
Here is an overview of the events of the day:
9:45am – 10:15am: Pre-Show hosted by Becky Quick and Mike Santoli
10:15 am – 1:00 pm: Berkshire Hathaway morning Q&A with Warren Buffett, Charlie Munger, Greg Abel and Ajit Jain
1pm – 2pm: Halftime Show hosted by Becky Quick and Mike Santoli
2pm – 4.30pm: Afternoon session of the Annual General Meeting
4:30pm – 5:00pm: Post show hosted by Becky Quick and Mike Santoli
Note: The schedule reflects Eastern Time
– Christina Cheddar Berk