Berkshire Hathaway’s first annual meeting without Warren Buffett next weekend is shaping up to be a test of investor confidence in his successor, CEO Greg Abel, as shareholders look for signs of how the vast conglomerate plans to allocate its capital and what approach it will take when it comes to technology investments. The May 2 rally in Omaha will mark a historic shift, but Buffett will not be on stage. Instead, Abel and insurance chief Ajit Jain will lead an initial question-and-answer session, followed by a second panel that includes BNSF Rail CEO Katie Farmer, head of the Berkshire subsidiary, and NetJets CEO and president of consumer products, services and retail Adam Johnson. At the very least, a change in leadership will certainly change the tone of the meeting. Many longtime observers expect a decline in the philosophical questions that have traditionally dominated sessions led by the 95-year-old Mr. Buffett. Instead, there may be a more detailed examination of the operating business and strategy. Stock buybacks and tech Investors will likely focus on stock buybacks after Berkshire resumed stock buybacks in March for the first time since 2024. At the time of the announcement, Berkshire had repurchased about $225 million in stock, according to UBS estimates. Since then, the stock has fallen about 3%, lagging the S&P 500’s rise of about 3%, evidence that Berkshire is undervalued, analysts say. BRK.A YTD Mountain Berkshire Hathaway Class A Share Year-to-date “BRK stock is currently trading at a further significant discount to its intrinsic value since its announcement, and we believe the company’s level of activity in executing additional share repurchases will be a key factor influencing investor sentiment,” UBS analyst Brian Meredith said in a note. UBS estimates that Berkshire is trading at about an 8% discount to its intrinsic value. Investors may ask Abel whether the pace of share buybacks will accelerate in the coming months, given the stock’s discount relative to its underlying assets. Mr. Abel also could face questions about Berkshire’s approach to technology, an area in which the company has historically been cautious. Shareholders are expected to find out how the chief executive intends to position Berkshire as artificial intelligence reshapes industry and capital spending across corporate America. “Given BRK’s historical underinvestment in technology, we expect discussions to center on how the company approaches technology and AI under Abel’s leadership,” Meredith said.
