Billionaire Warren Buffett hails Apple despite stake cut, says successors at Berkshire well-prepared

Warren Buffet on succession, Apple stake: The much-awaited annual general meeting (AGM) of Berkshire Hathway, one of the world’s largest conglomerates held on Saturday, saw its co-founder, CEO and Chairman Warren Buffet reassure investors that the change of guard was in the interest of the firm and the chosen successors were well-prepared. Buffett informed shareholders that his chosen successors, Greg Abel and Ajit Jain, were well-prepared to lead the conglomerate when he steps down. 
In a tribute to his late business partner, Charlie Munger, Buffett reflected on the company's growth under their stewardship. With Berkshire's cash reserves hitting a record $189 billion, Buffett expressed his expectation for continued growth. The AGM was Buffett's 60th, showcasing his remarkable tenure since 1965, during which he transformed Berkshire from a struggling textile company into a massive conglomerate worth $862 billion, with holdings in various sectors. Buffett highlighted Abel and Jain's competence, stating, "When you've got somebody like Greg and Ajit, why settle for me?"

Apple stake cut no hurdle 

Despite Berkshire trimming its stake in Apple by about 13 per cent ahead of the meeting, Buffett praised the tech giant, considering it "an even better business" than some of Berkshire's long-standing investments. He lauded the iPhone as one of the greatest products of all time, emphasising Apple's strong market position and customer loyalty. The decision to reduce its Apple stake contributed to Berkshire's cash pile soaring, reaching a potential $200 billion this quarter. Buffett cited concerns over high stock market valuations and geopolitical tensions as reasons for the increase in cash reserves.

Abel also addressed challenges, pledging to combat lawsuits against Berkshire's PacifiCorp utility unit over Oregon wildfires. Despite these legal battles, shareholders reelected all 14 Berkshire directors and rejected six shareholder proposals. 

The meeting attracted thousands of shareholders, underscoring Buffett's enduring appeal as an investment guru. Shareholders lined up in advance, eager to gain insights from Buffett's perspectives on various topics, including investment strategies and life philosophies. The AGM proved to be a platform to reassure shareholders about Berkshire's future leadership, discuss financial performance, and provide insights into Buffett's investment philosophy.

(With inputs from Reuters)