Warren Buffett faced question after question about one thing in particular at Berkshire Hathaway’s annual meeting on Saturday: his successor.
Mr Buffett named Greg Abel as heir apparent in 2021, and the vice chair for non-insurance operations has since had a more pronounced presence.
On Saturday, Mr Buffett said he was “100 per cent comfortable” with the decision and indicated a business-as-usual transition, for whenever that will be.
“Greg understands capital allocation as well as I do. That’s lucky for us,” Mr Buffett said at the meeting in Omaha, Nebraska.
“He will make those decisions, I think, very much in the same framework as I would make them. We have laid out that framework now for 30 years.”
Mr Abel, 60, who joined Mr Buffett and his long-term business partner Charlie Munger on stage for the morning, has built Berkshire’s energy business into one of the largest in the US.
Mr Buffett recently joked that Mr Abel does “all the work”.
Here are the other main takeaways from the meeting that drew Mr Buffett's disciples in their thousands.
Occidental control
One analyst called it the biggest announcement of the day: Berkshire won’t make an offer for full control of Occidental Petroleum, the energy firm it has spent months boosting its wagers on.
The comment by Mr Buffett is likely to have helped temper speculation that Berkshire is seeking to own Occidental after winning approval from US regulators last year to acquire as much as 50 per cent of the firm.
Mr Buffett didn’t rule out buying more stock of the Houston-based company, adding it may — or may not — seek further purchases.
Banking turmoil
Mr Buffett and Mr Munger were so sure there would be questions about the recent banking turmoil that they jokily brought placards bearing the accounting classifications spotlighted during the upheaval. One was labelled “available for sale”, while the other read “held to maturity”.
Striking a more serious note, Mr Buffett faulted the executives in charge of the failed banks, arguing they should be held accountable for mistakes that were hiding in “plain sight”.
He also called out “messed up” incentives in banking regulation, as well as poor messaging by regulators, politicians and the press to the American public about the upheaval.
Mr Buffett pointed to First Republic Bank, the beleaguered lender which JP Morgan Chase just rescued. First Republic’s filings showed the lender was offering jumbo, non-government-backed mortgages at fixed rates that were interest-only for 10 years in some cases — which Mr Buffett called “a crazy proposition”.
“It was doing it in plain sight and the world ignored it until it blew up,” Mr Buffett said.
The turmoil began with the liquidation of a small crypto-friendly lender in early March before it engulfed three other regional banks, including Silicon Valley Bank.
Mr Buffett said it would have been catastrophic for the US if the government hadn’t moved to guarantee all of SVB’s deposits, the vast majority of which weren’t covered by the $250,000 Federal Insurance Deposit Corporation cap.
Debt ceiling
As lawmakers race to resolve a standoff around the US debt ceiling, Mr Buffett said he couldn’t see how Washington would allow the US to default on its debt, an outcome that would tip the financial system into turmoil.
Investors and politicians are zeroing in on whether or not the US government can avoid crashing into its statutory debt ceiling and a potentially catastrophic technical default that could follow.
Despite the impasse, Mr Buffett reiterated his belief in America as an “incredible society” with “everything going for us”.
Given the choice, he would still want to be born in the US, he said.
Earnings decline
The firm posted an almost 13 per cent gain in operating earnings to $8.07 billion for the first quarter, powered by its insurance underwriting businesses including auto-insurer Geico, which swung to profitability following six quarters of losses.
But the results came with a gloomier forecast: that earnings at the majority of Berkshire’s sprawling collection of businesses would decline this year as an “incredible period” for the economy draws to an end amid inflation and rising rates.
Still, Mr Buffett said he expects earnings at its insurance underwriting operations — which are less correlated to business activity — to improve this year. Geico posted $703 million in profit as higher average premiums and lower advertising spending contributed to the gain even as claim frequencies fell, Mr Buffet said.
Geopolitics
In the fourth quarter, Mr Buffett slashed his holding of Taiwan Semiconductor Manufacturing just months after disclosing a major stake in a quick reversal that spooked investors.
Mr Buffett said on Saturday that the company was one of the best managed and most important in the world, but that he didn’t like the location — a reference to Taiwan amid rising tensions between the island and China.
Mr Buffett and Mr Munger emphasised the need for smooth relations between the US and China and urged increased trade. While the two will be competitive, they will always need to judge “how far you can push the other guy without them reacting wrong”, Mr Buffett said.
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Read more about the coronavirus
Killing of Qassem Suleimani
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
FORSPOKEN
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COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
UAE currency: the story behind the money in your pockets
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
UAE currency: the story behind the money in your pockets
The five pillars of Islam
SPECS
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KILLING OF QASSEM SULEIMANI
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
More on Quran memorisation:
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
