Scenes from the pre-game extravaganza
Shareholders held a shopping carnival of merchandise sold by the conglomerate’s holdings on Friday ahead of Berkshire Hathaway’s annual meeting.
The event is an annual tradition known as the ‘Berkshire Bazaar of Bargains’. Only those with a shareholder ID can attend and shop at CHI Health Center at a discounted rate.
Exhibits included toy trains that mimic BNSF railway rolling stock, See’s Candies Berkshire chocolate coins, and Buffett-branded Brooks sporting goods.
A woman takes a selfie in front of Berkshire Hathaway signage at the Berkshire Hathaway Annual Stockholders’ Meeting in Omaha, Nebraska.
David A Grogan | CNBC
NetJets presentation at the Berkshire Hathaway annual meeting in Omaha, Nebraska.
David A Grogan | CNBC
at the Berkshire Hathaway annual stockholders meeting in Omaha, Nebraska.
David A Grogan | CNBC
The See’s Candies counter at the Berkshire Hathaway Annual Stockholders Meeting in Omaha, Nebraska.
David A Grogan | CNBC
Sign the capitalist promotional card at the annual Berkshire Hathaway shareholders meeting in Omaha, Nebraska.
David A Grogan | CNBC
Warren Buffett rides in a cart at the Berkshire Hathaway annual meeting in Omaha, Nebraska, April 29, 2022.
David A Grogan | CNBC
Charles Munger at the Berkshire Hathaway Annual Meeting in Omaha, Nebraska, April 29, 2022.
David A Grogan | CNBC
Warren Buffett and Becky Quick at the Berkshire Hathaway annual meeting in Omaha, Nebraska, April 29, 2022.
David A Grogan | CNBC
Charles Munger and Warren Buffet stand in Berkshire Hathaway t-shirts at the Berkshire Hathaway annual shareholders’ meeting in Omaha, Nebraska.
David A Grogan | CNBC
People shopping for See’s candies at the Berkshire Hathaway annual shareholders’ meeting in Omaha, Nebraska.
David A Grogan | CNBC
– Yun Li and Hannah Miao
Buffett is back in the stock-picking game after a selling streak
Prior to Berkshire’s recent spending spree, the Omaha-based conglomerate was a net seller of shares for the past five quarters as Buffett saw few bargains among rising stocks.
In the second quarter of 2020, Buffett dumped his entire airline holdings, then north of $4 billion, believing the pandemic had fundamentally transformed the industry.
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Berkshire was a big winner in 2022
Berkshire Hathaway CEO Warren Buffett (L) and his business partner Vice Chairman Charles Munger answer questions at a news conference May 4, 2003 in Omaha, Nebraska.
Eric Francis | Getty Images
Berkshire Hathaway stock has been one of the best bets in the stock market in 2022.
Warren Buffett’s B-class conglomerate was up nearly 8% for the year in April. The S&P 500, meanwhile, is down more than 13%.
The gain for Buffett came despite a roughly 11% decline in Apple, Berkshire’s largest holding. The company benefited from large gains in energy stocks such as Chevron and Occidental Petroleum. Berkshire also has a large position in Coca-Cola, which is up 9% in 2022 despite rising worries about a possible recession.
Despite the overall gains, Berkshire wasn’t immune to April’s market downturn. B-Class shares fell 8.5% over the past month.
– Jesse Pound
Berkshire earnings decline in the first quarter
First-quarter earnings at Berkshire Hathaway fell year over year, with turbulence in stock markets and weaker insurance results hurting results.
The company reported profit of $5.46 billion, down from $11.71 billion in the year-ago period, down about 53%.
Because of Berkshire’s large holdings, earnings can be volatile from quarter to quarter. Buffett has long said investors should focus on Berkshire’s operating profits, which were mostly flat at $7.04 billion year over year, as a better indicator of the company’s performance.
The pace of share buybacks also slowed, with Berkshire spending $3.2 billion on buybacks compared to $6.9 billion in the previous quarter. The company ended March with $106.3 billion in cash.
– Jesse Pound
Long lines in front of the CHI Health Center
Shareholders lined up Saturday morning to enter the CHI Health Center for Berkshire Hathaway’s annual meeting.
Shareholders queue to get to CHI Health Center for Berkshire Hathaway’s annual meeting. April 30, 2022.
CNBC | Yun Li
Shareholders queue to get to CHI Health Center for Berkshire Hathaway’s annual meeting. April 30, 2022.
CNBC | Yun Li
People attend the Berkshire Hathaway stockholders meeting in Omaha, Nebraska, April 30, 2022.
David A Grogan | CNBC
– Yun Li and Hannah Miao
Shareholders are looking to Buffett’s leadership during the market turmoil
The Berkshire annual shareholder comes at a time of heightened concern in the stock markets.
The S&P 500 and Nasdaq Composite ended a rough April at yearly lows. The broad S&P 500 had its worst month since March 2020, while the tech-heavy Nasdaq had its worst month since 2008.
Berkshire also struggled in April, but its stock has been a relatively safe haven, up almost 8% for the year.
Buffett’s decades of experience span many recessions, bear markets, and periods of high volatility, so his followers will likely look to him for guidance on how to invest in the present moment.
– Jesse Pound
Buffett uses cash to work
Berkshire Hathaway’s massive cash pile fell to $106.3 billion by the end of the first quarter, its lowest level since the third quarter of 2018, when Warren Buffett ramped up investing.
The “Oracle of Omaha” recently spent $23 billion on various investments — $11.6 billion to acquire insurer Alleghany, more than $7 billion for additional investments in oil giant Occidental Petroleum and 4, $2 billion for a stake in PC maker Hewlett-Packard.
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What to expect from Warren Buffett and Charlie Munger
Buffett is expected to start Berkshire’s annual shareholder meeting on a high note as the “Oracle of Omaha” is finally back in the deal-making game and the conglomerate’s outperforming stock surpasses a key milestone.
The 91-year-old chairman and CEO will take to the stage with his right-hand man Charlie Munger at 98 to answer questions from shareholders following a flurry of investment activity — holdings in Occidental Petroleum and HP and an acquisition of Alleghany.
Here are some of the big topics shareholders want to hear from Buffett:
- Market Outlook: The stock market has suffered a correction on inflation fears and rising interest rates. How should investors navigate volatility and a difficult economic environment?
- Put more money: Buffett has been deploying capital lately. Will his spending spree continue? Will he strike an ‘elephant-sized’ deal?
- A slowdown in buybacks: Given Berkshire stock’s significantly outperforming performance, will Buffett halt or further slow down his aggressive buyback program?
- Life according to Buffett and Munger: Berkshire’s Succession Plan
- China, crypto, Russia’s invasion of Ukraine and more
— Yun-Li
Here’s CNBC’s coverage schedule for the Berkshire Hathaway annual meeting
CNBC: 2022 BHASM: Becky Quick at the Berkshire Hathaway stockholders meeting in Omaha, Nebraska, April 29, 2022.
David A Grogan | CNBC
CNBC will broadcast Berkshire Hathaway’s annual stockholders’ meeting live Saturday starting at 9:45 a.m. ET. Viewers can expect a lively discussion on Warren Buffett’s market sentiment, Berkshire’s plans to spend its money, and other important topics.
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 – 13:00: Morning session of the Annual General Meeting
1pm – 2pm: Halftime show hosted by Becky Quick and Mike Santoli
2pm – 4.30pm: Afternoon session of the Annual General Meeting
4:30pm – 4:45pm: Post show hosted by Becky Quick and Mike Santoli
4:45 p.m.: Berkshire Hathaway annual formal meeting
Post-Meeting Reporting: Closing Thoughts live from Omaha, Nebraska with Becky Quick and Mike Santoli
Note: The schedule reflects Eastern Time
– Christina Cheddar Berk