Berkshire Hathaway holds their annual shareholders meeting
Wednesday, May 6th, 2009The annual shareholder meeting of Berkshire Hathaway Inc was an assortment of both predictable and unpredictable as Mr. Warren who is the chairman and Mr. Munger who is the vice chairman responded to the queries of investors. This years’ convention was a little different from the previous ones as this time around to avoid any individual query, the reporters have pre-screened the questions. As in the previous meetings Mr. Warren was asked about his relationship with Jesus and what he thinks about the game of baseball.
Mr. Warren who is 78 years old presided over the session along with different sayings, viewpoints, and also offered opening outline of how the company performed in the first quarter. According to the reports the entire results will be listed for next week.
The main focus of the annual meeting was mainly revolving around the matter that who will be taking over Berkshire Hathaway after Mr. Warrant mortality and the investors seemed also quite concerned about it. Mr. Warren didn’t mentioned any name that who will be succeeding the positions of CEO (Chief Executive Officer) and CIO (Chief Investment Officer) but the did mentioned about the candidature and about their performance. First quarter operating earnings of Berkshire Hathaway came down from $1.9 billion to $1.7 billion last year.
Mr. Warren confirmed that over last year the company’s book value per share came down by six percent and the reason behind is because of the downfall in the investments value.
Losses and profits from unoriginal are mainly shown in the net income which was not disclosed. Mr. Warren always has made a selection for those stocks which will be having everlasting value. While most of his investments include utilities and insurance, such firms and non-insurance working firms have experienced terrible economic condition. Early in the meeting one vital question which was asked to Mr. Warren was the fresh Moody’s reduction of Berkshire from Aaa to Aa2. Mr. Warren expressed his confidence that the downfall will not be making any difference to the company.
The board of Berkshire has selected four contenders, both externally and internally, for the position of Chief Investment Officer and three internal contenders for the Chief Executive Officer position. Mr. Howard who is the son of Mr. Warren will be handling the Berkshire’s management and taking over as the Chairman along with fifty billion dollar portfolio will get separated between the chairman, CIO and CEO. Four of the deserving contenders for the post of investment officer were unsuccessful to face 38% downfall S500 Index of S&P in the year 2008.