OMAHA, Nebraska – Greg Abel received strong approval from investors for his leadership capabilities at Berkshire Hathaway, though the magnetic appeal that his predecessor Warren Buffett brought to the company appears to be diminishing.
Vacant chairs and smaller crowds were evident during Berkshire’s annual investor gathering in Omaha this past weekend – the first meeting since Abel took over as CEO from Buffett in January.
Abel led the company’s yearly meeting at a downtown venue without Buffett sharing the stage, although the 95-year-old billionaire observed from the crowd and made brief remarks.
Investors left feeling confident about Abel’s understanding of Berkshire’s vast business empire, which spans insurance, railways, energy, manufacturing and retail sectors.
However, he doesn’t possess the same magnetic appeal as the Oracle of Omaha or the late Vice Chairman Charlie Munger, who passed away in 2023. Both men saw themselves as educators during their decades of previous shareholder gatherings.
“I was a little bit disappointed,” said Xiao Zhang, a private investor from Boston. “In previous years, Warren Buffett and Charlie Munger sat on the stage, sharing their investing experiences and also life experiences and philosophies. This year, I didn’t hear something like that.”
Other attendees noted that Buffett and Munger established a foundation for Abel, teaching him to value the company’s established culture. These investors believe Berkshire will thrive under new leadership.
“They built something to outlast them,” said John Wichita, a utility systems analyst from Omaha, speaking about Buffett and Munger. “And I think it will. And the ideas they presented are much more powerful than their physical presence, in a way.”
REDUCED DEMAND
“Picture with the Gecko! There’s no line!” called out a worker on Friday afternoon at the Geico booth during Berkshire’s annual investor shopping experience featuring company-owned businesses, referencing the insurance company’s mascot.
Queues were noticeably shorter and less frequent. When sales ended on Saturday, See’s Candies had hundreds of unsold commemorative chocolate boxes. Dairy Queen had remaining ice cream bars. Fechheimer Brothers still had numerous Andy Warhol-style shirts featuring Buffett and Abel.
Previously, these items typically sold much better or completely sold out.
The main meeting also drew fewer people. While Buffett historically attracted full capacity, reporters estimated approximately 12,000 of the arena’s 18,000 seats were filled when Abel began this year’s gathering.
Berkshire has not yet responded to inquiries about attendance figures and merchandise sales.
Entry lines before the 7 a.m. opening were also shorter, though some investors still arrived early.
“I’ve watched it online, but flying here and communicating with people face to face is a better way to learn the meaning of value investing,” said Chandler Thien, a freelance writer from Beijing. “It was worth it to pay money for this trip.”
Many attendees who remained for the complete meeting left impressed.
“Greg did a good job,” said Alexandra Cook, an accounting and finance professor at Palm Beach Atlantic University in Florida, who brought four students. “He had a job to do to reassure shareholders, and he did that. It was clear he knew the operations intimately, and it wasn’t just Warren’s opinion that that was the case.”
Others had different reactions.
“Most people are here for investing knowledge and life philosophies. It was one of the reasons I was drawn to Berkshire,” said Sophia Deng, who runs an artificial intelligence startup in San Francisco. “With Greg Abel, the emphasis was very, very different. It (became) more of an operational excellence conference, and it’s not what I’m interested in as much.”
Deng intends to maintain her Berkshire holdings but won’t purchase additional shares.
OPTIMISM AND FORWARD FOCUS
Some suggested that travel expenses or reluctance to visit the United States from abroad may have reduced attendance.
Others view Berkshire – both as an investment and for its corporate culture – as a refuge from global uncertainties, and appreciated how Abel and fellow executives emphasized the company’s future direction.
“In light of everything that’s going on in the world, there doesn’t seem to be a lot of hope and positivity,” said Julie Vargas, a healthcare logistics manager from Omaha. “Having someone tell us what’s going to possibly happen and where we can look forward is a positive step in the right direction.”
Cindy Chin, CEO and chief space officer of Planetary Systems AI, said maintaining consistency is part of Berkshire’s attraction.
“We have a lot of volatility in geopolitics, but Berkshire’s investing philosophy has always been staying true to value investors and shareholders, and I don’t think that’s going to change,” she said. “This is Warren and Charlie’s legacy, and being here is still someplace special.”
Abel is 63 years old and has indicated his desire to lead Berkshire for an extended period, potentially for decades.
He has earned investor confidence. He may require additional qualities to ensure shareholders continue viewing Berkshire and the annual weekend as extraordinary.
“The throngs of shareholders may abandon the meeting with the lack of the unique homespun feel of Warren’s wit,” said Richard Callahan, a retail banker at BMO in Omaha. “Abel may grow into it. But he’s no Warren Buffett.”
