Berkshire Hathaway Annual Meeting 2023

Warren Buffett and Charlie Munger welcomed attendees with a welcome video starring special guest Jamie Lee Curtis.

Buffett convinced Munger to take a stake in “the so-called Internet” from the actress.

The actress affectionately referred to Buffett as “Warren All-You-Can-Eat Buffet” and Munger as “Charlie Pattini” while calling the two separately from her bed.

– Sarah Min

Everyone can learn something from Warren Buffett, including Bill Nygren of Oakmark Funds.

One practice that stands out is using adjusted GAAP accounting for intangible assets, the value investor said in an interview with CNBC on Friday.

“I think GAAP accounting is really aimed at a concrete world,” he said. “You can touch and feel it and it goes on the balance sheet. If you can’t touch or feel it, spend it.”

But that system is not “representative of the economy,” and there are investments in the business world for things like research and development and brand value.

“They’re all on the balance sheet at zero,” Nygren said. “If you’re not making adjustments as a value investor, you’re limiting your universe unnecessarily.”

Although Oakmark Funds does not own shares of Berkshire Hathaway, Nygren called it an attractive investment opportunity for many.

“Berkshire rarely exhibits the level of controversy required to create a truly attractive value stock, but it’s a great business,” he said. “It runs very well, which is why it’s not cheap enough to meet our criteria.”

– Samantha Subin

Berkshire’s auto insurer Geico experienced a major turnaround in the first quarter after higher average premiums and lower advertising costs. Geico posted $703 million in underwriting profits. The auto insurer was the victim $1.9 billion Last year’s pre-tax underwriting loss came as it lost market share to rival Progressive.

Ajit Jain, Berkshire’s vice president of insurance operations, said the biggest culprit for Geico’s performance was not keeping pace with competitors on telematics programs, which allow insurers to aggregate customer data, including mileage and speed, into better pricing policies.

– Yun Li

Warren Buffett’s Berkshire Hathaway posted a 12.6% jump in operating income in the first quarter, driven by a rebound in the conglomerate’s insurance business.

Profits from insurance underwriting were $911 million, up sharply from $167 million a year earlier. Insurance investment income also rose 68% to $1.969 billion from $1.170 billion.

Berkshire’s cash hoard rose to $130.616 billion in the fourth quarter of 2022 from $128 billion.

– Fred Imbert

Warren Buffett’s successor, Greg Abel, will join the Oracle of Omaha and Charlie Munger on stage Saturday to answer questions about non-insurance operations.

While increasing his stake in the company, Abel gave shareholders confidence that the company’s culture would continue.

“He does all the work and I take the bow — that’s what I wanted,” Buffett said in an April 12 CNBC interview in Japan. “He knows a lot about the individuals, the business, and he’s seen everybody. They haven’t seen me on the BNSF railroad for 10, 12 years or so.”

– Yun Li

Several pilots from Berkshire’s private jet company NetJets lined up outside the CHI Health Center. They held up signs that read “more work” and “less pay,” saying they wanted to renegotiate their contract. NetJets became a Berkshire subsidiary in 1998.

– Yun Li

Some lined up at the CHI Health Center in downtown Omaha for the Berkshire Hathaway annual meeting, starting at 2 a.m. for the event.

– Sarah Min

According to data from Bespoke Investment Group, Berkshire Hathaway has a history of outperforming the S&P 500 during recessions, and has performed particularly well during bear markets. Since 1980, Berkshire stocks have beaten the broader market by an average of 4.41 percentage points during six recessions.

Stocks perform even better during bear markets. Over the same period, the group has underperformed the S&P 500 by 20% each time, beating the broader index by an average of 14.89 percentage points.

“[One] Berkshire Hathaway (BRK/A), a stock with a reputation for safety, has earned this distinction over the past several decades,” read a Bespoke note from earlier this week.

– Sarah Min

On an overcast Saturday morning, Berkshire Hathaway partners wait in a light rain to walk into the CHI Health Center in Omaha.

The economy and markets are always top of mind at these events, but this year’s gathering comes at a particularly challenging time. On Monday, First Republic became the third U.S. bank to fail since March, further stoking fears that a recession is imminent. As always, investors look to 92-year-old Warren Buffett for folk wisdom in uncertain times.

Buffett promised to ask more questions this year in Berkshire’s shareholder guide. With that in mind, CNBC Pro took a look at what could be some of the most important topics. Questions could range from a discussion of what kind of acquisitions the company might make to what Buffett’s vision is for the banking industry. Car insurance company Geico might be fair game next.

– Yun Li

CNBC will cover Berkshire Hathaway’s annual shareholder meeting live beginning at 9:45 a.m. Saturday. Often called the “Woodstock for investors,” investors flock to Omaha, Nebraska, to hear Warren Buffett’s thoughts on the market. He often cites the many lessons he’s learned over decades of investing.

Here is a rundown of the day’s events:

9:45 am – 10:15 am: Pre-show hosted by Becky Quick and Mike Santoli

10:15 am – 1 pm: Berkshire Hathaway Morning Q&A session with Warren Buffett, Charlie Munger, Greg Abel and Ajit Jain

1pm – 2pm: Halftime Show, hosted by Becky Quick and Mike Santoli

2 pm – 4:30 pm: Afternoon Session of the Annual Meeting

4:30pm – 5pm: After-show hosted by Becky Quick and Mike Santoli

Note: Schedule reflects Eastern Time

– Christina Seder Berg