2025 Buffett Shareholders Meeting 800-word Essence Edition (with full text)

The Berkshire Hathaway shareholders meeting, the annual event of the investment community, kicked off on May 2, and the shareholder question-and-answer session began at 9 p.m. on Saturday, Beijing time.

"The Oracle of Omaha" Buffett once again participated in the whole process and answered shareholders' questions together with his CEO successor, Greg Abel, head of Berkshire's non-insurance business, and Ajit Jain, head of the insurance business.

Wall Street News summarized the main points of the Buffett Shareholders Meeting as follows:

1) About trade

“Trade should not be a weapon”, the United States should seek to trade with other countries and do what each country does best. Protectionist policies are a “serious mistake”.

2) About the United States

“Fiscal policy is my biggest concern in the U.S."When governments act irresponsibly, the value of their currencies may“Frightening".

Buffett hinted that he was going all in on the United States and supported American exceptionalism, saying that his luckiest day was the day he was born in the United States, which is a model of capitalism.

3) About Japan

We don’t invest overseas easily unless I think it’s an opportunity with real potential.

I plan to continue holding shares of Japanese trading companies for another 50 to 60 years.Even if the Bank of Japan raises interest rates, he does not consider selling.

Berkshire's current investment in Japan has reached200I even wish we had invested in1000Billions of dollars instead of200100 million.

4) About U.S. stocks

Recent BeautyStock Experienceof“Not a major fluctuation", compared with past crashes,“Not a violent one.Bear Market", nor is it a similar situation.

5) On record cash reserves

How to use Berkshire's record cash reserves?There may be investment opportunities in the next five years.

Berkshire recently came close to making a $10 billion investment.

6) About the successor

Abel, head of Berkshire's non-insurance businesses, should take over by the end of the year.CEOHe will not sell any of his Berkshire shares and will donate them gradually.

7) About Berkshire

If Berkshire's stock price drops by half one day, it will be an opportunity for me.It’s not that I don’t have emotions, but the fluctuation of stock prices will not affect my rational judgment. It will not affect my assessment of value.

Overall, Berkshire's profitability will continue to grow for some time.

8) About the Investment Company

Buffett believesThe balance sheet is a good starting point for assessing whether a company is worth investing in.

“I spend more time looking at balance sheets than I do income statements,” he said. “Wall Street doesn’t really pay much attention to balance sheets, but I like to look at eight to 10 years of a company’s balance sheet before I look at the income statement because some things are harder to hide or manipulate on a balance sheet.”

9) About young people investing

If your life has a direction, then you should strive to make friends those people you respect and aspire to be like.

The fastest path to success is to find truly outstanding people and walk with them.

Buffett announced at the end of the question-and-answer session that he plans to propose to the board thatHe will step down as CEO at the end of this yearThat would be the beginning of the end of the “Buffett era” at Berkshire.Investors should prepare for a Berkshire without Buffett at the helm.

Before the Q&A session of the shareholders' meeting, Berkshire Hathaway also released its first quarter financial report for this year. Some of the key points are as follows:

The company's operating profit in the first quarter was US$9.64 billion, compared with US$11.2 billion in the same period last year.The US dollar fell by 14% year-on-year, below analysts’ expectations. The company warned that tariffs could further hit its profits.
 

Berkshire's overall profits also took a hit from the depreciation of the U.S. dollar in the first quarter.The company said it recorded a loss of about $713 million in foreign exchange, compared with a gain of $597 million from currency fluctuations in the same period last year.
 

Berkshire has been a net seller of stocks for the tenth consecutive quarter.Net sales of $1.5 billion in stock assets were made in the first quarter.

The financial report shows thatBerkshire's cash reserves reached $347.7 billion in the quarter, a new record high.Buffett is cautious about investing amid high uncertainty caused by tariffs, predicts that there may be good investment opportunities in the next five years, saying that Berkshire's suspension of buybacks is partly due to the law introduced by the Biden administration last year to impose a consumption tax of 1% on stock buybacks.

The following is a transcript of the key points of the Buffett shareholder meeting question and answer session, arranged in the order of questions asked:

21:00 Opening remarks for the Q&A session of the 2025 Annual General Meeting

The shareholders' meeting began. Buffett said at the opening that this was his 60th shareholders' meeting. There was thunderous applause.

Buffett said that this year, 19,700 people came to attend the shareholders' meeting, setting a record for the number of spectators. At the shareholders' meeting, See's Candies' sales reached $317,000. Brooks running shoes' sales reached $310,000, and Jazwares' toys and other products sold $250,000.

Buffett introduced that this conference will sell a limited number of books commemorating the 60th anniversary of Berkshire's acquisition. This is the only book sold at the official bookstore Bookworm this year. Berkshire printed and published about 8,000 books, about 3,000 more than originally planned, and about 4,000 copies have been sold at the conference.

21:21 The first question of the shareholders' meeting: Trade

The first question to Buffett was about import certificates, a proposal he proposed in a 2003 column as an effort to reduce the U.S. trade deficit.

“Import certificates are designed to balance trade. I devised this idea of import certificates. It’s a little bit gimmicky, but I think it’s certainly much better than anything we’re talking about right now,” Buffett said.

Buffett criticized tariffs and protectionism and said "trade should not be a weapon." He noted that the United States went from nothing to an extremely important country.

"We should seek to trade with the rest of the world," Buffett said. "We should do what we do best and they should do what they do best. The more trade, the better."

"You can make some very good arguments that balanced trade is good for the world," Buffett said in response to a question about trade barriers. "There's no question that trade and tariffs can be an act of war. I think it has had adverse consequences, just in terms of the attitudes that it has engendered."

Buffett believes that protectionist policies may have a negative impact on the United States in the long run, especially after the United States has become the world's leading industrial country.

"That's a grave mistake in my opinion," he said. "When you have 7.5 billion people who don't like you very much, and you have 300 million people who are kind of showing off their achievements. I don't think it's right, I don't think it's wise. I do believe that the more support and prosperity the rest of the world gets, it's not to our detriment."

We have grown from nothing 250 years ago to become an extremely important country, which is unprecedented in history.

Buffett's speech won applause from the audience. Buffett did not directly mention US President Trump in his speech.

21:26 Second question of the shareholders' meeting: Japan

Asked if he would stop investing in Japanese stocks if the Bank of Japan raises interest rates in the future, Buffett said he would not sell.

“We’re not going to sell these stocks for the next 50 years. These Japanese companies have a very good operating history,” Buffett said, noting that companies such as Apple, American Express and Coca-Cola have performed well in Japan.

Buffett said that investment in Japan is in full compliance with Berkshire's investment philosophy. The five Japanese trading companies invested by Berkshire have performed very well in the past, and he plans to continue holding the shares of these trading companies for 50 to 60 years and hopes to establish a long-term and deep cooperative relationship with them.

Buffett said that the culture and habits of these trading companies are different from ours, and their business methods are also different, but because of this, we cherish this cooperation even more. "We will not sell any shares. It will not happen for decades. Japan's investment is just what we want."

Buffett said Berkshire has no plans to sell the Japanese trading company's shares anytime soon. Their current operations are very successful, even though he is now 94 years old. Berkshire also plans to further expand the cooperation.

Buffett said that Berkshire's current investment in Japan has reached 20 billion US dollars, and I even wish we had invested 100 billion US dollars instead of 20 billion.

21:35 The third question of the shareholders' meeting: the deployment of Berkshire's huge cash

When asked about Berkshire's current massive cash pile, Buffett joked that he wasn't stopping investing to make Greg Abel "look good" in the future.

Buffett is cautious about current investment opportunities. He said he is always looking for investment opportunities and that Berkshire is "very opportunistic" and he wants to reduce the cash on hand, possibly to $50 billion.

Buffett said Berkshire will find opportunities to put the company's record cash pile to work, most likely within the next five years.

"Occasionally there are very attractive opportunities. But not every day. It's unlikely that a great deal will appear tomorrow, but not in five years. We've made a lot of money by not fully investing at certain times."

Buffett revealed that Berkshire Hathaway almost spent $10 billion on an investment recently.

“Like, not too long ago, we were close to spending $10 billion, but we’re going to spend $100 billion now. I mean, when a project makes sense for us, we understand it and it’s good value, it’s not a hard decision to make.”

Buffett pointed out that one problem with the investment industry is that things don't proceed in an orderly manner.

21:43 Fourth question of the shareholders' meeting: Challenges of real estate investment in an uncertain global environment

When asked how to deal with the challenges of the real estate industry in the current global environment full of uncertainty, Buffett said,Real estate investment is more complicated and difficult than stocks.Whether it is communication, negotiation, or bargaining, there are many people and links involved, such as who is the owner, legal structure, funding arrangements, etc. It is really not easy to negotiate a deal and get a good price in real estate, as there are too many variables.

If you choose to invest in stocks, there is a huge advantage: countless opportunities can be seen every second, especially in the US market. In contrast, real estate transactions are slow-paced and highly dependent on personal communication and negotiation. Real estate investment may be done by one person alone or by a team.

Billions of dollars are traded every day on the New York Stock Exchange, and thousands of unknown investors are participating in market activities. You only need a suitable price to trade 20,000 shares of Berkshire Hathaway in 5 seconds. But real estate is not like this. To complete a real estate transaction, the process is not only cumbersome, but also takes a long time. Even if the transaction scale is large today, once it enters the negotiation stage, there are many factors to weigh and coordinate.

Buffett said that Berkshire has also invested in real estate, such as during the financial crisis in 2008 and 2009. He suggested that if you want to invest in real estate, you must compare and choose in a smarter and more strategic way.

21:49 Fifth question of the shareholders' meeting: The impact of AI on the insurance industry

The question of whether artificial intelligence (AI) can change the insurance industry was first answered by Jain, head of Berkshire's insurance business.

Jain said that people are investing a lot of time and money in AI. AI will be a game-changer. AI technology could "truly change" the way the insurance industry currently assesses, prices and sells risks, as well as the current way claims are settled.

But Jain pointed out thatBerkshire will not be the first to adopt AI within its industry, and Berkshire has taken a more cautious approach to any high-profile new technology claims.

“I certainly think people will end up investing huge amounts of money chasing the next hot thing,” Jain said. “We’re not good at being the fastest or the first to move. Our approach is more of a wait-and-see approach until the opportunity materializes and we have a clearer understanding of the risks of failure, the pros and cons.”

However, Jain added that Berkshire would not hesitate to invest if the right opportunity presented itself.

He said,Some insurers are indeed experimenting with AI and trying to figure out the best way to use it, but we haven’t consciously invested heavily in it yet. I guess we’ll be ready to jump in once the opportunity presents itself.”

Buffett said he would let Jain decide what Berkshire's insurance business will look like over the next decade. Whether to use AI will be a choice made by Jain.

21:52 Shareholders' Meeting Question 6: Why did Berkshire invest in the hot dog company Portillo's?

When asked why Berkshire bought Portillo's, a Chicago hot dog chain, Buffett said he didn't know much about Portillo's. He joked that someone might have bought it secretly.

Buffett then turned to an anecdote about Jay Pritzker, a relative of Illinois Governor JB Pritzker who bought a Brooklyn chocolate company decades ago. Buffett said Jay was an excellent manager.

Abel clarified,Berkshire Hathaway does not own Portillo's. The company is actually owned by an investment firm with a similar name to Berkshire Hathaway.

22:00 The seventh question of the shareholders' meeting: The United States seems to be undergoing a huge change. Are we pessimistic or optimistic about the United States?

The questioner said that Buffett has always believed very much in the long-term advantages of the United States, but today the United States seems to be undergoing some unprecedented and almost "revolutionary" changes. As an investor, how should one evaluate the current situation and should one remain optimistic or pessimistic?

Buffett responded to this question by saying that the questioner is a new generation of investors. In Berkshire's annual manager report, you usually don't see these macro-level comments. But he can say,The United States will not undergo that kind of drastic "revolutionary" change.

Buffett said that the United States was once an agricultural country, but then society changed and the economy performed very well. It used to be a male-dominated era, but then fair reforms were carried out and the constitution was amended, so that women also had the same opportunities.

"I mentioned that we started out as an agricultural society. We started out as a society of promise, but we didn't deliver on that promise very well. We're always changing. We're always going to find all kinds of criticism in this country, but the luckiest day in my life was the day I was born.(Because) I was born in America.”

Buffett said that the transformation from 1920 to now, from 1776 to now, we have done a lot and it has taken a long time. I was born in the United States, and almost everything happened in the United States at that time, but it is different now. I am very lucky as a man born in the United States - it is not easy, but the United States has changed.

"We've been through the Great Depression, we've been through world wars, we've been through the development of the atomic bomb that was unthinkable when I was born, so I won't be discouraged even if we don't seem to have solved all the problems that arise. If I were born today, I would be negotiating in my womb until they allow you to go to the United States."

We've been through a lot from 1930 to now, like the Great Depression, two world wars, and the tensions caused by the atomic bomb. These are all things we've experienced along the way. We are a very lucky country, and I'm a very lucky person. I feel much luckier to be born in the United States than to be born anywhere else.

22:04: The eighth question of the shareholders' meeting: Can the principle of patience be broken in investment?

Someone asked, is it possible to show impatience and break the principle of patience in investment?

Buffett said, "Sometimes you have to act quickly. Berkshire has made a lot of money because of its willingness to act quickly. You don't want to be patient on deals that make sense."

Buffett said, "When a good opportunity comes, you should not be patient at that time. You should be patient to wait for those occasional opportunities. But you should not hesitate for those reasonable transactions. You should not be patient to listen to those empty talks that will never come true."

22:13 The ninth question of the shareholders' meeting: Geico, the auto insurance company

Jain said that Geico did face a crisis, but we turned the crisis into an opportunity. When we first took over, there were two major problems: the first was that our rate structure was unreasonable, and the second was that we had systemic problems in actuarial and pricing mechanisms. Five or six years ago, these were all areas of concern for us.

Through rapid technical adjustments and process optimization, these problems have now been resolved. We have not only improved the pricing model, but also done a lot of work on risk matching and optimized the overall pricing system.

Today, Geico is able to price each person based on their overall risk level, and we do a great job of doing this, which has translated into significant profits.

Although we have achieved a lot, I don't think the mission is complete. We still have a lot of technology to leverage, such as new tools such as AI. Our goal is not to "catch up with others" but to "do better."

Buffett said this is a very interesting case study, especially about how a company responds to changes in the rules of the game in the industry. Every business has its own challenges and opportunities.

Berkshire bought Geico for $50 million in the 1970s, when it was only a partial stake. Later, Geico brought us huge benefits. Now we own 100% of this company, and the profit in just one quarter can reach $2 billion. But this is the result of decades of continuous investment and improvement.

100 years ago, auto insurance was almost non-existent; but now, auto insurance has become one of the largest types of insurance, along with property and casualty insurance.Geico is very profitable and has $29 billion in cash on hand. I bought the company for $50 million, which was a very good investment.

Geico was founded in 1936 by a government employee who was originally an employee of USAA. He made a profit in the first year, and even more in the second year. After that, the company grew and successfully went public. The auto insurance industry began to take off.

No one likes buying insurance, but everyone likes driving, which makes car insurance a necessityGeico's development story is very interesting. It once tripled in a few years, and although it went off track, it eventually got back on track. We talk about Geico's issues at our annual meeting almost every year.

Buffett specifically mentioned Geico CEO Todd Combs. He said Combs did an excellent job in this transformation. He successfully turned the subsidiary around. Telematics, which was once seen as a disadvantage, is no longer a competitive disadvantage. Combs also significantly streamlined the company's staff structure, cutting thousands of jobs, which played an important role in improving efficiency.

22:22: The tenth question of the shareholders' meeting: Why do you think Abel is a suitable successor?

Buffett didn't answer the question directly, saying it's important to surround yourself with great people you enjoy working with.

Buffett gave advice on choosing a job and starting a career. He said,You need to "do what you love".Buffett reminded,An employee’s habits may influence their co-workers, so it is crucial to choose your work location carefully.

Buffett advises that while you should be "careful" in choosing your employer, don't get hung up on factors like starting salary. "If you can find great colleagues there, go there."

Abel said he was honored to be involved in Berkshire's work.

22:31: Shareholders' Meeting Question 11: US dollar depreciation and currency risks

Someone asked about the weakening of the U.S. dollar and currency risk. In response to a question about how to reduce exposure to the risk of a depreciating U.S. dollar, Buffett said his company would not invest in "worthless" currencies. "We don't want to own any currency that we think is going to go down in value."

Buffett also mentionedPositions on the Japanese yen have increased. He did not rule out the possibility of exploring and focusing on other currencies in the future.

Buffett also emphasized the complexity of currency games and pointed out that one of the responsibilities of the government is to devalue its own currency.

Buffett said he would not take any action based on quarterly or annual earnings to manage currency risk. It is very difficult to build an effective check and balance mechanism in the monetary value system.

In addition, Buffett said: "U.S. fiscal policy scares me because the way it is formulated and all the motivations are to do a lot of things that could get you in trouble with money. But this is not limited to the United States, but the whole world."

“I mentioned briefly in my annual report that fiscal policy is what I worry about most in the United States because of the way it’s set.”

“All the dynamics are there to drive behavior that can and does cause trouble on currency issues,” he said. “But this is not limited to the U.S., this is true in many parts of the world. And in some places, this often gets out of control.”

Buffett said, "We wouldn't really invest in a currency that's about to 'collapse'," adding,When governments act irresponsibly, the value of a currency can be “terrifying.”

“Charlie always felt that if he had to pick an investment area other than stocks, he felt he could make a lot of money in the foreign exchange market,” Buffett said of his late vice chairman, Charlie Munger.

Buffett said:We have tried it once. I can’t say we won’t do it again, but it’s unlikely. Unless something happens in the U.S. that makes us willing to hold a large amount of other countries’ currencies.”

22:41 Shareholders' Meeting Question 12: Mongolia

The questioner said that Mongolia is an emerging market located between China and Russia. We have animal husbandry and mining, and the economy is still growing. We held a Mongolian investor conference in New York last year, which attracted many interested investors. What does Buffett think of emerging markets like Mongolia? Do you have a long-term investment plan?

Buffett said, I remember that about 20 years ago, I attended an annual meeting. At that time, I began to pay attention to Mongolia and heard introductions about Mongolia, so I still have some understanding of the situation in Mongolia - that was a long time ago.

We will now listen to some reports from the government and evaluate which business opportunities can actually be developed.We don’t invest overseas easily unless I think it’s an opportunity with real potential.

Many people think that to make money, you have to go to places with high inflation, where you can make a lot of money, but I don't think so. At present, our company has no short-term investment plans in Mongolia, unless it is a project that is very attractive in terms of scale.

Maybe 20 years ago we would have considered going over to take a look. But I don't know much about your economy, such as livestock, mining, etc. This is my view now.

22:45 Shareholders' Meeting Question 13: Private equity firms competing in the insurance industry

Someone asked, what do you think about the expansion of private equity firms such as Blackstone, Apollo and KKR in the insurance field, which are more aggressive?

Jain acknowledged that competition from private equity has made Berkshire's investments in insurance businesses more difficult. "There's no doubt that private equity has moved into this space and we've lost our competitive edge in this space. We used to be very involved in this space, but in the last three or four years, I don't think we've done a single deal."

However, Jain said private equity has adopted a model of higher leverage and more aggressive investment strategies. When the economy is doing well, private equity firms take certain risks in terms of leverage and credit risk, especially in the life insurance sector.As long as the economy is good and credit spreads are low, they will make a lot of money."

However, there is always a risk that at some point the regulators may get upset and say that you are taking too much risk on behalf of your policyholders, which could end in tragedy, Jain said. “We did not like the risk-reward ratio in these scenarios, so we chose to raise the white flag and decided not to compete with private equity firms in the life insurance space.”

Buffett said,Many companies want to emulate Berkshire’s model, but their CEOs don’t invest all of their assets in the company like we do..

Buffett added,Berkshire differs from its competitors in that he takes greater personal responsibility for his investments.He said:

“They may have a slightly different sense of fiduciary responsibility for what they do, and sometimes it works, and sometimes it doesn’t, and if it doesn’t work they move on to something else. But if what we’re doing at Berkshire doesn’t work, I’ll spend the rest of my life regretting what I created, so it’s a completely different personal relationship.No company can truly replicate Berkshire's model in property and casualty insurance.. ”

22:50: Question 14 of the shareholders' meeting: Investment by young people

The questioner was a young girl. She said she had just started learning about investing and wanted to hear Buffett's opinion on what lessons he had learned in the early days of investing.

Buffett said, "That's a very good question. I really wish someone would have given me this advice when I was young."

It's all about the kind of people you surround yourself with. Don't expect every decision you make to be right. If you have a direction in life, then make sure you make friends with people you respect and aspire to be like.

I just mentioned a few people I've worked with in the past. Maybe they didn't do things on the same scale as I did, but they were people I liked very much and it meant a lot to me to be with them. It's invaluable to walk the path of life with like-minded people. Unfortunately, these truths are often not truly appreciated until later in life. When you are older, you will understand that these are the things that really matter.

Buffett mentioned two former Berkshire directors, Tom Murphy and Walter Scott. He said that if you have people like Tom Murphy and Walter Scott around you, your life will definitely be better.This doesn't mean you should follow the rich and copy their lifestyle. I would suggest you get close to those who are really smart and wise, learn from them, ask them, and try with them.

If you are looking for a meaningful job and you are not in a hurry to make money, then I suggest you spend time with outstanding people like Charlie Munger. Find such opportunities and share their success; if you can't find them, it doesn't matter, just keep doing what you are doing and keep working hard. Persevere, and you will eventually find people who live and think seriously like you.

Buffett recalled, "When I first went to Geico, the door was locked, and I didn't know who was behind it. Ten minutes later, I saw the man who later had a great influence on my life. When you meet such people, remember their help to you, and also think about how to repay them and help them in the future. Never forget these noble people."

Of course, sometimes you may find yourself in less than ideal circumstances. But if you are really lucky and live in a good environment and are surrounded by great people, cherish it. You don't need to feel guilty about being lucky. There are 8 billion people in the world and only 300 million or so in the United States. If you live here, you are already ahead of the game and you should take advantage of it.

If someone at work asks you to do something you don't really want to do, don't be around them.Different industries have different selection criteria for people, butIf you find something that excites you, go for it, especially if it's something you want to do for the rest of your life.

The investment industry is very interesting. Many people don't want to continue doing it after making their first pot of gold. But I am personally lucky that I saw its long-term charm from the beginning.

Like Tom Murphy, who lived to be 98, he had an ability to see potential in people. We haven't met another person who can spot talent as keenly as he does. If you want to be a better person, make an effort to find people like him and work with them.

There are many successful people in the world, but not everyone can make the right choices.The fastest path to success is to find truly outstanding people and walk with them.

The Berkshire experience is also very valuable to me. Sandy Gottesman has been managing our assets since 1963 until his death a few years ago, as well as Walter Scott and Abel, they all embody what long-term success is. You can learn a lot of really valuable things from them.

That's the advice I can give you. Some people live longer, maybe because they are surrounded by good people, or maybe because they drink Coke every day (laughs). But I believe that happy and joyful people live longer because they are always doing what they really love.

22:59 Shareholders' Meeting Question 15: Does the recent market shock provide investment opportunities?

Asked if recent market volatility offers an opportunity to make big investments, Buffett downplayed recent market volatility, saying it's "really nothing" and that it's part of investing. He shrugged off the stock market swings that have unnerved investors in the past few weeks.

Buffett said:What happened in the last 30 days, 45 days, 100 days... it really doesn’t matter.”

Buffett pointed out,Berkshire's stock price has fallen less than three times in the past 60 years. During this period, the company did not have any fundamental problems.

Berkshire Hathaway's stock price has fallen less than three times in the past 60 years, and he noted that during that period the company had no fundamental problems.

In view of this, Buffett believes that the recent trend of U.S. stocks is "not a huge move" compared to periods such as the stock market crash in 1929.“This is not a dramatic bear market or anything like that.”

Buffett recalled that on his birthday in 1930, August 30, 1930, the Dow was at 240, and then fell to 41. Despite some "horrifying" events, the Dow closed above 41,300 on Friday.

To those who worry about the cyclical ups and downs of their portfolios, Buffett advises that they should change their investment philosophy to adapt to the world - rather than the world adapting to them.

Buffett said:It is important to you if your stock falls by 15%.Then you need to change your investment philosophy. The world will not adapt to you, you must adapt to the world."

He added: "Everyone has emotions. But you have to control your emotions when investing."

23:03 Shareholders' Meeting Question 16: How to deal with setbacks in life

A shareholder from Shanghai, China seeks advice on how to deal with setbacks in life.

“I focus on the good things that happen, not the bad things that happen,” Buffett said. “Life can be great — but it can also be terrible.”

23:09 Shareholders' Meeting Question 17: Autonomous Driving

Someone asked, autonomous driving has not yet been fully popularized in the United States. If it really comes into being in the future, how will Geico's insurance business be affected? How do you view the division of responsibilities, software issues, and broader changes brought about by autonomous driving?

Jain, who is in charge of insurance business, replied that from the perspective of insurance, autonomous driving will not bring about immediate fundamental changes. Currently, most car insurance premiums are priced based on the frequency of driver errors, and our insurance policies and claims systems operate according to this risk calculation method.

Jain said that autonomous driving technology may indeed reduce the chance of accidents, and Geico and other insurance companies have similar views. But once this technology is truly popular, we will make corresponding adjustments.

Buffett said, this reminds me of something Charlie Munger said to me once.When we decided to enter the textile industry, we could not foresee the future transformation of the entire industry.

The world is always changing. Just like in baseball or golf, not every swing will result in a home run or a hole in one. Accept that you will make mistakes.

Today we are talking about whether car insurance will be changed, which is a very important issue.But at present, autonomous driving has not yet been fully commercialized, and the United States has not yet promoted it on a large scale. No one can accurately predict what the insurance industry will look like in the next 100 years.

But one thing is clear: the world is dynamic. People like to drive cars, and we don't want to destroy the world. We have learned how to better protect the earth, although it is difficult. We know that there are 8 countries in the world that have a significant impact on the development of all mankind, and we hope that these countries can have the best leaders.

Einstein published his theory of special relativity in 1905, which led to the study of how energy can be transformed into powerful forces, and ultimately led to the threat of nuclear weapons. I was born in 1930 and have witnessed the consequences. Even Einstein could not have anticipated the way these inventions would eventually change the world.

We've also seen what's happening with North Korea. No one can really predict what they're going to do next. These uncertainties are not going away anytime soon.

Even so, change has brought many benefits, making our lives much better today than they were 100 years ago. But we still have to deal with real problems like weapons of mass destruction.

Just like car insurance now, we see rapid technological development, but to me, this change is not as big as the impact of the textile industry. Now should be one of the "luckiest" stages in human history. You should enjoy your life and pay attention to the changes in the insurance industry.

Insurance is an industry we do very well in. Although it has a lot of structural problems, we can't control everything. If you don't know how to swing, don't play golf.

There are indeed many clauses that need to be clarified regarding product liability and accidents caused by autonomous driving. Once an accident occurs, the cost of repair will increase significantly due to technological upgrades. Today's cars are becoming more and more like high-tech products, and these new technology-related issues have not yet been fully resolved.

For example, when I first went to Geico in 1950, the average annual premium was about $40, depending on which state you lived in. Now, $2,000 a year is the norm. At the same time, however, the number of traffic fatalities has dropped dramatically. If you look at it from another perspective, driving now is actually more expensive than before.SafetyIt's hard to predict the future of the industry. You have to look at it in combination with research, reality and various data.

Changes in the energy industry, medical care, and political environment may also lead to adjustments in the industrial structure.In the business world, many problems have no "answers" but only "action points". The rules of the game today are completely different from those in the past.So you wake up every day and have to rethink how to run your business.

Some additional notes on Berkshire's first quarter earnings:

Our insurance sector's performance declined significantly in the first quarter of this year. Last year was very strong, but this year it has been under pressure due to falling prices and rising risks.

Some of our achievements cannot be copied, and we do not recommend that you copy others' models. We do have some advantages.

Our investment income has not changed much because we have not made many mistakes overall. We expect the total investment this year to be around $40 billion. Although the overall return will be lower, the negative impact will be less than in the past.

The railroad business has grown slightly this year compared to last year, and some problems are improving. It is still a high-quality asset for Berkshire. The problems of the energy sector have been basically solved, and earnings have also rebounded this year. Other businesses require us to continue to work harder.

We have done a lot of calculations, some of which have increased, some have decreased, but overall they are not bad. Regarding cash flow, please be patient. Munger once told me: "As long as you are patient and willing to read financial reports and listen to politicians' speeches every day, you will find very good opportunities."

We still have plenty of cash, which will be available as long as the business we underwrite is profitable. We will be able to make important investments in the next 50 or 100 years. Of course, there will be difficult years, and these cash reserves will be particularly important at that time.

The current retention of the life insurance part is -2.2%. If you are not prepared for the future, you are likely to get into trouble. To run a business, you must think differently.

We did not make any acquisitions this year.If you buy Berkshire stock, you'll get your share, too.

Buffett said Berkshire suspended its stock buyback program this year in part because of the Inflation Reduction Act, which was enacted about a year ago and imposed a $11,000 excise tax on stock buybacks. This hurt us more than other companies.

“It does make it a little less attractive than it was before,” Buffett said.

Buffett gave an example, saying that Apple, which performed well this year, spent $100 billion on buybacks. The taxes they paid for these buybacks were also huge. The price they bought back was even higher than the price you bought it at - this is good news.

Nowadays, people are looking for ways to increase their chances of success, but I want to emphasize: you must read carefully. Without in-depth reading, you cannot make wise decisions.

If there are major changes in the future, our company will still adhere to a conservative and prudent participation strategy. Although we have made some repurchases, the tax burden cannot be underestimated.

0:05 Opening remarks of the second half and question 18 of the shareholders' meeting: What can we learn from Munger and others?

Before starting the second half of the Q&A session, Buffett recommended a documentary about the late Washington Post publisher Katharine Graham to the audience: "Becoming Katharine Graham."

Buffett appears in the film for his friendship with Graham and his role on the board of The Washington Post.

Jain did not take the stage in the second half, and Buffett and Abel continued to answer questions.

Abel was asked by a shareholder how he would like to be remembered and he said his roles as a father and coach were very important to him.

Buffett quipped that he wanted people to remember him for his "advanced age," prompting laughter from the audience.

Buffett explains why he believes the balance sheet is a good starting point for evaluating whether a company is worth investing in.

He said:I spend more time studying balance sheets than income statements.Wall Street doesn’t really pay much attention to balance sheets, but I like to look at eight to 10 years of a company’s balance sheet before I look at its income statement, because some things are harder to hide or manipulate on a balance sheet.”

He added: “Neither of these, of course, can give you all the answers.”

0:13 Shareholders' Meeting Question 19: Berkshire's capital allocation after Abel takes over from Buffett

Someone asked, over the past decade, everyone has been paying attention to the investment strategies of Buffett and Charlie Munger. Now Abel will succeed Buffett as CEO, and more capital allocation decisions may be led by him in the future. How does he view this inheritance and how does he view the future?

Abel first mentioned that Berkshire has a very strong investment culture, which is the result of Mr. Buffett's long-term establishment. All of our colleagues uphold the same values.

Capital allocation is a core part of our business philosophy. When we make decisions, we not only discuss among the management, but more importantly, we have a clear sense of risk. These values are the key to the success of our company.

We always value Berkshire's reputation, which is our greatest wealth. Buffett once reminded everyone that when making any investment decision, the first thing is to look at the income statement and understand the real numbers.

Now we have a lot of cash, which is a huge advantage, but it also brings challenges - how to allocate these funds? This is not a simple question, but a profound philosophy. We have the ability to allocate at any time, but we pursue "better allocation".

We have always emphasized that Berkshire will not rely on others in any environment, and we will not rely on bank loans for capital operations. Whether it is insurance or non-insurance business, we must have sufficient cash flow to ensure that Berkshire can continue to operate.

We will continue to look for quality opportunities in various industries, not just insurance. Our goal is to fully understand the vision of a company when investing, whether buying a share of a company or just holding a portion of it.

As Buffett mentioned before:We completed a $10 billion acquisition last quarter. Sometimes a full acquisition is appropriate, and sometimes buying a portion of the company can work. The key is that whether we own 1% or 100%, we must understand what kind of company this company wants to be in the next five, 10, or 20 years.

We will continue to follow this philosophy. This is the core of Berkshire's success over the past 60 years, and we will not change it.

Buffett went on to say that it is important to emphasize that the United States is indeed facing some major transformation needs. Our American power grid and highway system have fallen behind the current population and economic growth rate.

To promote these changes, the US government must take stronger measures. There are 50 states in the United States, and each state has a different way of thinking. Just like after World War II, we mobilized the entire manufacturing industry to support the war in a very short period of time, and the efficiency was amazing at that time. But in peacetime, it is not easy to achieve the same efficiency.

Investment depends on the situation. We have knowledge and capital, but we also need to make strategic changes. How to play the role of Berkshire requires a plan that is meaningful to the country, the people and the company.

Abel may offer his views on these issues later. But one thing is clear: we need to be prepared with sufficient cash reserves to intervene at critical moments.

We have done many cooperative projects in the past. For example, the highway system in the United States was completed under the promotion of the federal government. If it were just one company, it would not be possible. Similar large projects in the future will also require close cooperation between the government and the private sector.

Abel said, "From the perspective of the energy industry, we do have a lot of areas where we can advance. The current electricity demand is growing rapidly, and to meet long-term energy demand, we must make necessary capital investments. We have strong capabilities in this area and are actively addressing related risks."

Only if we address these risks can we deploy the capabilities to meet future needs. And we must start preparing now.

Buffett agreed, and he went on to say that the power of the U.S. federal government must be used. Just like the construction of the highway system during World War II, it would not have been possible to complete it quickly without national coordination.

We do have the capital and sufficient knowledge to participate in it. But the desire to cooperate is not enough, we also need the ability to "concentrate our efforts on major tasks".

We were able to do this during World War II, but it is very difficult to promote similar national construction in peacetime. This task may eventually fall to the next generation.

0:26 Shareholders' Meeting Question 20: A 14-year-old girl wants to join Berkshire. How can she work hard?

A 14-year-old girl from Hong Kong said she hopes to join Berkshire in the future and asked what kind of job she could do. Abel said hard work and a desire to contribute will take you far. "We sincerely look forward to the day when you become a member of Berkshire."

Buffett added:Stay curious and read more. ”

0:29 Shareholders' Meeting Question 21: Wildfires affect utilities, what are the strategies for protection?

"It's not going away," Abel said of the wildfire risk. "The company has decided that when a fire comes, sometimes you need to shut off the power to your equipment. It's not just about turning off the lights." Wildfires are happening in California and Texas. Where to invest is the first point of view.

“We can’t just be the insurer of last resort,” Abel said of Berkshire’s utilities’ responsibilities as wildfires spread. “We can’t be responsible for everything that happens.”

Buffett assured shareholders that Berkshire would not spend their money on things the company considered "stupid."

If they did, he added, shareholders "should kick us out."

"It's easier to do stupid things with other people's money than with your own. That's one of the problems with government in general. We don't want to bring that to the private sector," quipped Buffett.

0:43 Shareholders' Meeting Question 22: Female fans hope Buffett will arrange a meeting in his office

The question came from a Polish lady. She said that 74 years ago in January 1951, Buffett took an 8-hour train to Washington, just to learn about insurance, and he has been on this path ever since. This is a very touching experience. In 2011, she was only 15 years old, but she also set a goal for herself: one day she must meet you. Today, she finally fulfilled this promise, and she wanted to ask Buffett to fulfill a small wish: Can you give her some time to stay in your office for an hour?

Buffett thanked her for the question and smiled, saying, "You don't need to announce my life story, but I appreciate your persistence and hard work. There are 40,000 people here today, and your question is indeed very special."

Buffett said, "When I was young, I often drove around the country to visit various companies. At that time, these companies usually did not have investor relations departments, so many times the CEO personally received me. I was also worried that they might not pay attention to me, but I would prepare two very specific questions in advance."

This isn't a bad idea.If you want to visit someone and talk to them for ten minutes, you should think clearly about what you want to say and what you want to ask. You set the conditions for these ten minutes, not the other person.

You'll find that most companies now have investor relations departments whose job is to tell you why you should buy their stock. It's a growing business. But you can learn and understand the world in your own way. Berkshire has our own way, too. We don't copy others.

Now we have enough information and talents, so we don't need to interview one by one like in the past. There are more than 40,000 people here today, and we really can't meet everyone's one-hour request. But I really appreciate your enthusiasm and persistence, and that's all I can say to you.

0:50 Shareholders' Meeting Question 23: Acquisition of the remaining assets of Berkshire's own energy sector

Regarding Berkshire's decision to acquire the remaining assets of its own energy division.Buffett is not optimistic about the utility industry, he said,“The utility business is not as good as it was a few years ago..He attributes this to social factors, saying that values change, and not always upwards.

Buffett talked aboutThe investment opportunities in the U.S. energy sector and the role Berkshire can play. “The way to solve this problem is to have some kind of partnership between the government and private sector., like during the war. I don’t think the government built the highway system by sending people out to lay down a lot of concrete or anything like that.”

He added: “We do have the capital, and we also have some knowledge that only very few places have.”

0:54 Shareholders' Meeting Question 24: Berkshire's future earnings

Someone asked Buffett what he expected the company's earnings to be in the most recent fiscal year, and whether future earnings would increase or decrease.

Buffett said, "I think our public utility revenue will be affected to a certain extent. Profits may not be entirely determined by mergers and acquisitions, but it is undeniable that we do make mergers and acquisitions from time to time. This year we spent $10 billion on investment."

A lot of these questions depend on the market environment and people's mood. Some people are more pessimistic. As someone born in the 1930s, I have experienced very difficult times. Sometimes you find certain opportunities particularly attractive, but you don't act and miss the opportunity. This has happened many times in my life.

Many times, I choose not to try something that I feel unsure of - for example, if you ask me to walk on a tightrope, I won't do it.When it comes to the financial markets, there are things that others are afraid of, but I am not afraid of them.

If Berkshire's stock price drops by half one day, it will be an opportunity for me.I know a lot of people react differently than I do, but I don't worry. It's not that I don't have emotions, but the fluctuation of stock prices will not affect my rational judgment. It will not affect my assessment of value.

Overall, Berkshire's profitability will continue to grow for some time.What we need to do is to keep the money we earn and then make rational decisions. Everyone has different abilities and risk tolerances, and it is these differences that create opportunities in the investment market.

0:59 Shareholders' Meeting Question 25 Tech Giants' Stocks

Technology giants are currently investing heavily in capital expenditures and investing in AI. Buffett said,The tech giants have made a lot of money and made a lot of investments, like Coca-Cola has its own bottling company, but these investments are not actually very big.The initial investment of a business, such as that required for machinery, is large, but it becomes less later on.

Buffett said it will be interesting to watch how capital intensity of the Magnificent 7 companies increases in the future.There are a lot of people in the U.S. who have become very wealthy by watching how other people invest.. ”

1:09 Shareholders' Meeting Question 26: Are there any high school courses or activities that will help you invest in the future?

Buffett said that future school teachers can learn from their work.

1:17 Shareholders Meeting Question 27: Is DOGE good or bad for the United States in the long run?

When asked about the Department of Government Efficiency (DOGE), Buffett smiled and said, "Why do you ask me such a difficult question? For me, the government bureaucracy has always been a confusing thing. In the capitalist market, many bureaucratic structures are "contagious", that is, their inefficiency may spread to other areas. In fact, many systems have better management methods, and even Berkshire has room for streamlining and improving efficiency."

But the government is the government. It has no real "superior" to supervise it, which makes people feel uneasy about the future governance and financial situation. Especially when the elected people say one thing and do another, it is really worrying.

I have always believed that if a politician has money but no credit, that is a very negative signal to me. In terms of fiscal policy, the United States has not really solved the problem of fiscal deficit for a long time. This has never been a thoroughly resolved issue.

As for the United States, "the fiscal deficit situation we have now is not sustainable for a long time. We don't know if that means two years or 20 years, because there has never been a country like the United States, and this situation cannot continue forever."

Sometimes you know something can't last, but you don't know how to stop it - you just throw up your hands and give up. It was (former Federal Reserve Chairman) Paul Volcker who saved the US from the worst inflationary collapse. Now, the US has a serious inflation problem, and we have experienced the consequences of such policies.

Buffett did not directly talk about DOGE, but he did say that reducing the budget deficit is aIt is a difficult but important task.

To be honest, I would not want to be in charge of fixing the fiscal system and balancing the books—“That’s not the job you want to do, but that’s the job you should do.” It just seems like Congress is not taking up the issue right now.

We are a great country with the most innovative talent in the world, but we do have many structural problems. If something goes wrong, these problems will not explode immediately, but they will definitely ferment slowly.

Of course, there are incentives and checks and balances in governance, just as in a company, even the most successful companies are not without problems.

Buffett once again mentioned the risk of a depreciating dollar. He said:

“However, the root of all this is to have a currency that does not depreciate.. If everyone who trusted the government was being ripped off, and everyone who found a way to profit from it was getting richer or richer, what would that do to the stability of society if it devalued? I don’t think you would want a society that operated that way.”

1:23 p.m. Shareholders' Meeting Question 28: If we were to travel back in time to 1776, how would we create the foundation of capitalism for the United States and support its long-term prosperity?

"When people are most pessimistic, we will make the best deals," Buffett said. He said Berkshire will continue to increase its profitability, but the growth will not be linear. Buffett defended Berkshire's long-term decision not to use other people's capital to make transactions.

Buffett called the United States a shining example of capitalism and compared the system to a cathedral with a casino attached"American capitalism has been an unprecedented success," he said. "It's the combination of a great cathedral that has created an economic system the world has never seen, and a huge casino attached to it. The temptation is great, especially now, to walk into that casino."

“In that cathedral, people were essentially designing systems that could produce goods and services for more than 300 million people, a scale unprecedented in history.”

While it’s certainly tempting to invest all your time and energy into this metaphorical casino, Buffett cautions that it’s critical to maintain a balance. “In the casino, people are having a blast and money is flowing, but you also have to make sure the cathedral is being fed.America must ensure that this cathedral is not swallowed up by casinos in the next 100 years.”

He added: “We’ve built an interesting system, but it works. Capitalism seems to be very arbitrary and capricious in how it distributes rewards.”

1:31 p.m. Shareholders Meeting Question 29: Berkshire's model for operating subsidiaries

Berkshire adopts a "hands-off" management approach to the operations of its subsidiaries. Someone asked if Berkshire could talk more specifically about how it works.

Abel said that since 2018, I have begun to learn more about Berkshire's various businesses. Buffett's knowledge is very admirable, and he is very willing to share: he will point out the possible risks in the business model, and we will communicate with him in time once we encounter problems.

He and I usually discuss framework issues, such as how to view the trend of an industry, whether a strategy is reasonable, etc. However, in daily operations, we have a lot of autonomy and can make decisions and advance projects independently.

If an opportunity suddenly appears in a certain industry, or we intend to pursue a new direction, we will discuss with Buffett whether it is worth doing. But at the execution level, we have a high degree of freedom. The managers selected by Berkshire are very familiar with the operation of their own industries, such as the leaders of Geico. Especially in the past few years when the insurance industry has undergone changes, a visionary leader is very critical. We benefit from past experience.

Buffett smiled and said, "I have worked with Abel for many years. He is very serious about his work. Sometimes I wish I could be more relaxed like an artist and not work so hard. But to be honest, if a business is doing well, you don't have to worry about being fired."

Abel has done a great job. Not everyone is cut out to be a manager. Some people want to be told what to do; some people will quit if you give them an order, and I don't blame them. ButAbel is different. He is autonomous and willing to accept suggestions or assistance from others. He is a true leader.

At Berkshire, we don’t expect every manager to do things the same way. Some are highly admirable, and some may not be. But the quality of an organization’s management can be seen—if the atmosphere of the organization begins to decline, it means that the leadership may also need to make improvements.

For example, in one of our retail stores, an employee once told a friend, "Come and buy something and I'll give you a discount." Although they were just well-intentioned, they violated the company's employee discount rules. This behavior is "contagious."

We don't want to see upper management taking the lead in changing the rules for personal gain. Once this is done, the entire organization may go in the wrong direction.

1:38 p.m. Shareholders Meeting Question 30: What does Berkshire think about environmental changes?

Abel said Berkshire takes this into account when backing and acquiring energy companies, which must take into account federal and state government requirements.

Abel provides the example of how the electricity mix in Iowa changed in the early 21st century.

Abel said that in the early 2000s, Iowa had a power shortage and the state was relying on coal-fired power generation. He discussed with the governor to determine how to maintain a long-term energy supply. Various types of energy were discussed at the time.

Abel stressed that with the support of state legislators, Iowa built a large wind power project and eliminated a number of coal-fired units. Berkshire built the largest wind power station project in the United States in Iowa, investing $16 billion and eliminating a number of coal-fired units.

Abel added that coal-fired units were still needed to maintain a stable power supply, which won applause from the audience.

Abel said that renewable energy and non-carbon energy must be promoted in accordance with national requirements. Berkshire has made decisions that are fully in line with federal and state government requirements, respecting all state processes and cooperating with them. "We will continue to work with the states to determine the path they want to plan."

“We can’t have a situation like Spain or Portugal,” Abel warned, referring to the recent blackouts that hit Spain and Portugal on the Iberian Peninsula, which means Berkshire’s energy business still needs coal-fired power plants to continue generating enough electricity.

1:44 p.m. Shareholders' Meeting Question 31: U.S. Health Care Reform

A nurse asked Berkshire why it terminated its cooperation with JPMorgan Chase and Amazon in the healthcare field and what it thought about the reform of US healthcare. Buffett said,The collaboration was terminated because the resistance to change they faced was too great.

1:54 Shareholders' Meeting Question 32: Abel's role in the future

Some people asked whether Abel will take over Berkshire in the future, including the responsibility of asset allocation, and whether his focus will be as an investor or he will play more of a business operator role.

Buffett said, "To be honest, it is very difficult to be an operator of a business, while it is relatively easy to sit in a room and manage money, and it is easier to be envied. I always feel that I am very lucky because I have the opportunity to choose who to work with. I have never been let down by my teachers or partners in my life, which is rare."

I am also grateful that I have the freedom to choose what I want to do every day, a freedom and flexibility that many professional managers do not have. To be honest, I never thought about becoming the "top manager" of a company - it is not a role I am good at or like.

Now I can run the company in the way I like, which is a blessing for me. Abel is a very good operator and is good at handling complex operations. The reason why I can hand over this job to him is because I believe he will handle it well.

As for asset allocation, that is of course part of the future work. But I want to emphasize that the real challenge is not just "investment", but how to do the right thing with Berkshire's resources. Abel will be someone who can combine these two things well.

1:57 The Q&A session of the shareholders meeting ends

Buffett declared:

"Greg (Abel) should become the CEO of (Berkshire) by the end of the year."

Buffett said that after leaving office, he will remain at Berkshire and provide help, but the "final decision" will be in Abel's hands.

Buffett said Abel didn't know about it. Neither did the rest of the board, except for his children.

Buffett said he has no intention of selling any Berkshire shares, but will gradually donate his holdings. He said: "I have absolutely no intention of selling any shares of Berkshire Hathaway.I will give it gradually. " These words aroused applause and cheers from the audience.

Buffett continued: "I would add that the decision to retain all of my shares was an economic decision because I believed that Berkshire's prospects would be better under Greg (Abel)'s management than they were under my management."

He said the decision also showed his confidence in Abel's leadership. Buffett concluded:

“But I’ll be in, and maybe one day we’ll have the opportunity to invest a significant amount of money. At that point, I think it might be helpful for the board — to let them know that I’m putting all my money into the company, and I think that’s smart, and I’ve seen Greg’s track record.”

The article comes from the Internet:2025 Buffett Shareholders Meeting 800-word Essence Edition (with full text)