The annual shareholders meeting of Berkshire Hathaway was held on the evening of May 2, Beijing time, at the CHI Health Center in Omaha, USA. This marked a historic transition for the company, as 95-year-old Warren Buffett attended after stepping down as CEO, with 63-year-old Greg Abel presiding over the meeting for the first time in the chief executive role. Themed "The Legacy Continues," the event signaled Berkshire's shift from the "Buffett era" to the "Abel era."

Although Buffett announced last year that he would relinquish the CEO title, he was present at the meeting and delivered brief opening remarks. New CEO Greg Abel focused on Berkshire's business operations, covering topics such as AI strategy, diversification, and current events including the Iran conflict, Trump-era tariffs, and the risks of artificial intelligence. Abel stated that Berkshire is thoughtfully considering how to leverage AI to create tangible value, emphasizing that the company will not blindly follow trends in AI deployment. He also detailed plans to enhance the firm's core railroad and insurance businesses. A notable segment featured a deepfake video of Buffett posing questions to management, which sparked a deeper discussion on AI-related cybersecurity risks.

Key highlights from the meeting include:

**Jersey Retirement Honors Buffett’s 60-Year Tenure** The company held a jersey retirement ceremony for Warren Buffett, honoring his 60-year tenure as CEO. Greg Abel explained that the number 60 symbolizes Buffett's more than half-century of leadership at Berkshire. The jersey will be displayed alongside a commemorative item for Vice Chairman Charlie Munger, celebrating their decades-long partnership.

**Buffett Praises Abel as "100% Successful" Choice** During his remarks, Buffett again expressed strong approval of Greg Abel. Noting that the meeting date coincided with the anniversary of Abel's appointment announcement, Buffett stated, "We couldn't have made a better choice; the selection has been 100% successful. He has not only taken on all my previous responsibilities but has done more and better. He is the right person for the job."

**Buffett Commends Apple CEO Tim Cook** In his opening address, Buffett praised Apple CEO Tim Cook for successfully steering the company after the death of founder Steve Jobs. Buffett remarked, "What courage it took to succeed Steve Jobs and surpass his achievements? It's a miracle in American business history. After Steve's passing, we made the decision to invest nearly 10% of Berkshire's resources in Apple, effectively placing our trust in Tim, who has since generated approximately $185 billion in pre-tax returns."

**Abel on AI: Prudent Implementation and Human Oversight** Regarding AI adoption, Abel outlined a practical and cautious approach, avoiding broad AI trends in favor of narrow AI applications aligned with business needs. The company has established three core principles: recruiting top technical talent to drive deployment, with senior management deeply involved in system design and execution; maintaining strong security governance, data integration, and risk controls while continuously validating AI outputs against business objectives; and ensuring human oversight of critical decisions, with AI serving only as a support tool. Abel also stressed the importance of reskilling employees for an AI-driven workplace and managing operational and compliance risks to foster a complementary relationship between AI and core business functions.

**Abel: Tech Giants Must Bear Full Energy Costs** Abel emphasized that large-scale tech companies and data centers must fully cover their own electricity costs, separate from general grid users. He stated, "It is crucial that hyperscale tech firms and data centers bear their full energy expenses." This issue has gained attention as data centers place increasing strain on regional power grids amid the AI boom.

**Abel: Data Centers Offer Major Growth for Utilities** Abel highlighted that data center construction and its associated power demands present significant growth opportunities for the utilities sector. Half of Berkshire's energy businesses are already addressing AI-related electricity needs. Abel noted, "In Iowa, where data center energy usage is expected to reach 5% to 10% of peak load, we are already at 8%. We see an opportunity to grow this by 50% or more over the next five years."

**Abel: AI Deployed Across Multiple Business Units** Abel revealed that AI is already in use across several Berkshire subsidiaries, with large-scale hiring of engineers and technicians underway. For example, railroad subsidiary BNSF, which operates over 750 trains daily, uses AI for predictive maintenance on locomotives and equipment, leveraging 177 years of operational data to optimize scheduling and efficiency. These applications are positively impacting financial performance.

**Deepfake Video Highlights Cybersecurity Risks** Berkshire played a video featuring a deepfake version of Buffett, who introduced himself and asked Abel why investors should hold Berkshire stock long-term. The fake Buffett began, "Hello, I'm Warren from Omaha. Greg, I've been following this company for a long, long time... My question is simple. I'm 95 and have nothing but time and Cherry Coke. I just want to know—why should shareholders hold onto Berkshire stock for the long term?" Abel later disclosed that the video was AI-generated, using it to underscore the dangers of cybersecurity threats.

**Abel: High Cash Reserves Provide Flexibility** In response to the deepfake's question, Abel pointed to Berkshire's $397 billion in cash and U.S. Treasury holdings as a key reason for investor confidence. He stated, "Our cash and Treasury reserves serve multiple purposes and give us significant flexibility. We intend to remain independent."

**Abel: Not Currently Interested in Acquisitions** Abel acknowledged that Berkshire is aware of several outstanding companies but indicated that, based on current valuations and economic risks, the firm lacks sufficient interest to pursue acquisitions. He noted, "We need more time to prepare."

**Abel Explains Berkshire's Investment Portfolio Strategy** Abel provided insight into managing Berkshire's diverse stock portfolio, emphasizing a concentrated strategy anchored by core holdings. He identified the "big four"—Apple, American Express, Moody's, and Coca-Cola—as foundational. He also highlighted Berkshire's significant stakes in Japanese trading houses as another pillar, reaffirming a long-term commitment. Beyond these, Abel mentioned important positions in Bank of America, Chevron, and Alphabet. He stated that he is taking a more active role in investment management, adjusting positions as needed, and confirmed that investment decisions are made in collaboration with Buffett.

**Jain: AI Not Yet Mature for Critical Insurance Functions** Vice Chairman Ajit Jain, discussing AI's role in insurance, noted that while the industry is embracing AI for risk prediction and operational efficiency, the technology is not yet mature enough to replace human judgment in underwriting and claims settlement. He emphasized that complex decisions will continue to rely on professional expertise for the foreseeable future, with AI serving as a support tool under human review.

**Jain: Capital Stewardship Over Asset Selection** Jain elaborated on capital allocation philosophy, stressing that generating and deploying capital are equally important for long-term growth. He echoed Buffett's view that selecting competent, ethical capital managers is more critical than chasing popular assets. Effective management teams generate stable cash flows and allocate them to high-value opportunities, creating a virtuous cycle.

**Jain: cautious on insuring ships in the Strait of Hormuz** When asked about insuring vessels transiting the Strait of Hormuz, Jain gave a succinct response: "The short answer is—it depends on the price." He revealed Berkshire's minor participation in an existing program but noted no finalized deals, adding that U.S. Navy escorts would be a key underwriting condition.

**Abel on Succession Planning for Key Roles** Regarding succession plans for himself and Jain, Abel stated the board takes the matter "very seriously" and has established protocols. He confirmed the board is prepared to act if either executive becomes unable to serve.

**Abel on Energy Transition and Fossil Fuels** Responding to questions on phasing out fossil fuels, Abel stated Berkshire complies with environmental regulations and is optimizing its energy mix while retiring older, carbon-intensive assets. He noted Iowa already leads the U.S. with 93% renewable energy usage. However, he emphasized a balanced approach is necessary to ensure supply stability and reasonable prices, especially with rising gas and emissions demands from AI data centers.

**Buffett Compares Market to "Church with a Casino Attached"** During an interview segment, Buffett analogized the current market to a "church with a casino attached," distinguishing traditional value investing from speculative short-term options trading and prediction markets. He remarked, "People can move freely between the church and the casino. While more people are still in the 'church,' the casino's allure is powerful. Buying or selling single-day options isn't investing or speculating; it's gambling." Buffett suggested speculative fervor has peaked.

**Buffett on Inflation and Response Strategy** Buffett acknowledged that Berkshire cannot fully hedge against "massive, runaway inflation," citing historical episodes of hyperinflation. Reflecting on the 1970s-80s, he noted how lost confidence in currency led to poor decisions. For current moderate inflation levels, he advised vigilance without panic, emphasizing the importance of owning quality businesses and maintaining cash buffers for uncertainty, with patience and discipline as key defenses.

**Buffett on Management Stability** Buffett expressed overall confidence in the management teams of Berkshire's portfolio companies but acknowledged challenges from leadership changes at large holdings like Coca-Cola. He praised incumbents like Tim Cook while noting past concerns when executives like former Coca-Cola CEO James Quincey departed. Berkshire monitors new leadership but recognizes that while managers handle daily operations, senior leadership must oversee decisions against major, unforeseen risks.

**Buffett: Not an Ideal Investment Environment** Buffett admitted dissatisfaction with the current investment climate for capital deployment, citing high market valuations. He expressed confidence in Berkshire's management team to choose the right timing for investments, noting that while the company sometimes appears inactive, it can become quite active when opportunities arise—typically when "no one else is willing to answer the phone."

**Buffett's Advice: Follow the "Golden Rule"** Buffett advised shareholders and partners to adhere to the Golden Rule: treat others as you would like to be treated. Describing himself as "not a religious person," he nonetheless emphasized the rule's timeless value for parents and business leaders alike, suggesting the world would be better if everyone followed it.

**NetJets CEO Notes Energy Prices Impacting Demand** Adam Johnson, CEO of Berkshire subsidiary NetJets, reported that rising costs, including oil reaching $100 per barrel, are dampening demand in certain consumer and retail sectors. While acknowledging pressure, Johnson stated the business is accustomed to volatility and is prepared to adjust as needed.

**Abel: Long-Term View on Middle East Conflict** Abel stated that Middle East tensions affect Berkshire subsidiaries in various ways, but the company maintains a long-term operational focus, prioritizing customer needs and business continuity. While rising input costs, especially in chemicals, have pressured quarterly profits, the firm uses contract pricing and time to rebalance. Direct sales to the region are limited for some products, but supply chain adjustments are ongoing. Abel emphasized employee safety and long-term stability over short-term gains.

**Abel: Tariff Impact Varies; "Operate First, Assess Later"** Abel noted that tariffs affect subsidiaries differently, but the company has learned from past experience and adjusted supply chains to mitigate impact. The overall strategy is to "operate first, serve customers, and assess later," with individual units evaluating potential for compensation or refunds on a case-by-case basis.

**Abel: Tokio Marine Stake Strategic, Not Financial** Abel characterized Berkshire's 2.5% investment in Tokio Marine as strategically focused on long-term partnership rather than short-term financial gain. The collaboration includes joint underwriting arrangements, sharing risks and rewards, and is grounded in aligned culture and values.

**Abel on Conditions for Divesting a Business** Abel stated Berkshire would consider divesting a subsidiary if unresolved labor disputes or unacceptable reputational risks arose, particularly if consequences for employees, customers, or shareholders were severe. Another trigger would be a business becoming unsustainable and unable to generate operating cash flow for shareholders, warranting either a new owner or a phased exit.

**Abel: Open but Cautious on Tech Investments** Abel expressed openness to tech companies provided Berkshire can thoroughly understand the business model, growth path, and risks, and establish a reasonable valuation with a margin of safety. The same standards for predictable cash flows and risk assessment apply.

**Abel: No Single Successor to Munger's Advisory Role** When asked who might serve as his chief advisor, akin to Charlie Munger's role for Buffett, Abel did not name an individual but highlighted the strength of his existing executive team, stating the approach is to "surround yourself with talented people who are already part of the team."