Source: Wall Street Wire
The annual investment event — the Berkshire Hathaway Annual Meeting — kicked off on May 2nd, with the shareholder Q&A session beginning at 9:00 PM Beijing time on Saturday. "The Oracle of Omaha" Buffett participated in the event again this year, accompanied by his designated CEO successor — Greg Abel, head of Berkshire's non-insurance business, as well as Ajit Jain, head of the insurance business, to jointly answer shareholder questions.
This year marks the 60th anniversary of Buffett's acquisition of Berkshire, and this year's meeting is considered the most important in history because it may be Buffett's last full participation in the shareholders' meeting. At the end of the Q&A session, Buffett announced that he plans to propose to the board that he step down as CEO by the end of this year. This marks the beginning of the end of the "Buffett era" at Berkshire. Investors must prepare for a Berkshire without Buffett at the helm.
In addition to Buffett's plan to "retire" by the end of the year, he also discussed multiple hot topics of concern in the market.
Although Buffett did not mention Trump by name, he criticized tariffs and trade protectionism, stating that fiscal policy was the biggest problem he worried about in the U.S., repeatedly mentioning the risk of dollar devaluation, and warning that if the government acted irresponsibly, the value of the currency would "cause fear." Despite this, he still hinted at fully betting on America and believing in American exceptionalism.
Buffett reiterated his confidence in Japanese stocks, saying he plans to hold them for another fifty or sixty years. He also downplayed recent fluctuations in U.S. stocks, calling it not a severe bear market.
The first-quarter financial report released on Saturday showed that Berkshire's cash reserves reached $347.7 billion in the quarter, setting another record high. Under the highly uncertain environment caused by tariffs, Buffett adopted a cautious attitude towards current investments, expecting there might be good investment opportunities in the next five years. He mentioned that Berkshire postponed stock buybacks partly due to the 1% consumer tax on stock buybacks introduced by the Biden administration last year.
Just like last year's live text broadcast of the Berkshire shareholder meeting, Wall Street Wire also released the highlights of the meeting in real-time in reverse chronological order according to Beijing time, with the latest updates placed at the top. Below are the key points from the 2025 Berkshire Hathaway Annual Meeting.
1:57 PM Shareholder Meeting Q&A Conclusion
Buffett announced:
"Greg (Abel) should become the CEO of the company by the end of the year."
Buffett said that after stepping down, he will remain at Berkshire and provide assistance, but "ultimate decision-making authority" will rest with Abel.
Buffett said that Abel did not know about this. Besides his children, other members of the board were also unaware.
Buffett said that he has no intention of selling any shares of Berkshire, but will gradually donate them. He said, "I absolutely have no intention of selling any shares of Berkshire-Hathaway; I will gradually give them away." This statement drew rounds of applause and cheers from the audience.
Buffett continued, "I would like to add one thing: the decision to retain all shares is an economic decision because I believe that under Greg's (Abel) management, Berkshire's prospects will be better than when I manage it myself."
He emphasized that this decision also demonstrated his confidence in Abel's leadership ability. Buffett concluded:
"But I will join in, and perhaps someday we will have the opportunity to invest a lot of money. By then, I think it could be very helpful for the board — letting them know that I have invested all my money into the company, which I think is wise, and I have already seen what Greg can achieve."
1:54 PM Question 32 at the Shareholders' Meeting: Future Role of Abel
Someone asked whether Abel would take over Berkshire comprehensively in the future, including the responsibility of asset allocation, and what would be his focus in the future: as an investor or more as an operator of enterprises.
Buffett said frankly, being an operator of an enterprise is very difficult, while managing money from a room is relatively easy and enviable. I have been lucky enough to have the opportunity to choose who I work with. I have never been let down by my teachers or partners throughout my life, which is rare.
I am also grateful that I have the freedom and flexibility to choose what I want to do every day, a freedom and flexibility that many professional managers do not have. To be honest, I have never thought of being the "highest manager" of an enterprise — that is not a role I am good at or enjoy.
Now I can run the company in a way I like, which makes me happy. Abel is an excellent operator, skilled at handling complex operational affairs. The reason I can hand over this job to him is because I trust that he will handle it well.
As for asset allocation, that of course will also be part of future work. But I want to emphasize that the real challenge is not just "investing," but how to use Berkshire's resources to do the right things. Abel will be someone who can combine these two things very well.
1:44 PM Question 31 at the Shareholders' Meeting: U.S. Healthcare Reform
A nurse asked why Berkshire terminated its collaboration with Morgan Stanley and Amazon in the healthcare field. Buffett said that termination was due to the great resistance they faced in the face of changes.
1:38 PM Question 30 at the Shareholders' Meeting: How Does Berkshire View Environmental Changes
Abel said that when supporting and acquiring energy companies, Berkshire always takes this issue into account, and it must comply with federal and state requirements.
Abel provided an example of the change in Iowa's power structure in the early 21st century.
Abel said that at the beginning of the 21st century, Iowa had a shortage of electricity, and at that time the state relied entirely on coal-fired power generation. He had discussions with the governor. They needed to determine how to ensure long-term energy supply. Various types of energy sources were discussed at that time.
Abel emphasized that with the support of state legislators, Iowa built a large wind power project while phasing out some coal-fired units. Berkshire made the largest wind power station project in the U.S. in Iowa, investing $16 billion while phasing out some coal-fired units.
Abel added that coal-fired units are still needed to maintain stable power supply. These words won applause from the audience.
Abel said that renewable energy and non-carbon energy must comply with national requirements to advance. Berkshire made decisions that fully comply with federal and state government requirements, respecting all state processes and cooperating with them. "We will continue to cooperate with states to determine the routes they want to plan."
Abel warned: "We cannot have situations like Spain and Portugal." He referred to the recent blackout incidents sweeping the Iberian Peninsula of Spain and Portugal, meaning that Berkshire's energy business currently still needs coal-fired power plants to continue generating sufficient electricity.
1:31 PM Question 29 at the Shareholders' Meeting: Berkshire's Operating Model for Subsidiaries
Berkshire adopts a "non-intervention" management style for its subsidiaries. Someone asked if they could specifically talk about how it operates.
Abel said that since 2018, I have been delving deeper into Berkshire's various businesses. Buffett's knowledge is extremely admirable, and he is very willing to share: he points out potential risks in business models, and we communicate with him promptly once we encounter problems.
I mainly discuss framework issues with him, such as how to view trends in an industry, whether a certain strategy is reasonable, etc. But in daily operations, we have a great deal of autonomy, can make independent decisions, and push projects forward.
If an opportunity suddenly arises in a certain industry, or if we intend to pursue a new direction, we will discuss with Buffett whether it is worth doing. However, at the execution level, we have a high degree of freedom. Berkshire selects managers who are very familiar with the operation of their industries, such as the leader of Geico. Especially in these years of transformation in the insurance sector, a visionary leader is very crucial. We have benefited greatly from past experiences.
Buffett smiled and said, "I have worked with Abel for many years. He works very seriously. Sometimes I wish I could be a little more relaxed like an artist, working less hard. But honestly, if a business is run well, you don't have to worry about being fired.
Abel does an excellent job. Not everyone is suited to be a manager. Some people need someone to tell them how to do things; others will quit if you give them orders. I wouldn't blame them. But Abel is different, he has autonomy and is willing to accept suggestions or assistance from others. He is a true leader.
At Berkshire, we do not require every manager to do things in the same way. Some are very admirable, while others may not be. But the quality of organizational management can be seen — if the organization's morale starts to decline, it indicates that the leadership may also need to make improvements.
For example, in one of our retail stores, an employee once told a friend, "Come shop and I'll give you a discount," even though it was well-intentioned, it violated the company's employee discount rules. Such behavior can be "contagious".
We do not want to see upper-level managers lead by example in changing rules for personal gain. Once this happens, the entire organization may go in the wrong direction.
1:23 PM Question 28 at the Shareholders' Meeting: Assuming You Could Travel Back to 1776, How Would You Lay the Foundation for Capitalism in America and Support Its Long-Term Prosperity
Buffett said, "When people are most pessimistic, we will make the best deals." He stated that Berkshire would continue to enhance profitability, but such growth would not be linear. Buffett defended Berkshire's decision not to use others' capital for transactions over the long term.
Buffett called America a shining example of capitalism and compared the system to a grand cathedral with an attached casino. He said, "American capitalism has achieved unprecedented success. It is a combination of a grand cathedral that created an economic system never before seen in the world, while it also has a huge casino attached beside it. The temptation is very strong, especially now, the temptation is to walk into that casino."
"Inside the cathedral, people are basically designing systems to produce goods and services for more than three million people, a scale unprecedented in history."
Although it is very tempting to put all your time and energy into the casino in this metaphor, Buffett reminded that maintaining balance is crucial. "In the casino, people have a great time, money flows frequently, but you must also ensure that the cathedral is maintained. Over the next 100 years, America must ensure that the cathedral is not consumed by the casino."
He added, "We have established an interesting system, and it really works. Capitalism seems to distribute returns very arbitrarily and unpredictably."
1:17 PM Question 27 at the Shareholders' Meeting: Is DOGE Good or Bad for America in the Long Run
Asked about DOGE, Buffett smiled and said, "Why ask me such a difficult question?" For me, the bureaucratic system of government has always been a confusing matter. In a capitalist market, many bureaucratic structures can "spread," meaning that their inefficiencies may spread to other areas. Actually, many systems have better management methods, even Berkshire has space for streamlining and improving efficiency.
But the government is the government. It has no "superior" that truly regulates it, which makes people uneasy about future governance and fiscal conditions. Especially when those elected say one thing and do another, it really worries people.
I have always believed that if a political figure has money but lacks credibility, it is a very negative signal for me. In terms of fiscal policy, the U.S. has not truly solved the issue of fiscal deficits for a long time, which has never been a thoroughly resolved issue.
Regarding the U.S., "our current fiscal deficit situation cannot sustain for a long time. We don't know whether it means two years or twenty years, because no country like the U.S. has ever had such a situation, and it cannot continue forever."
There are times when you know something cannot last, but you don't know how to stop it—finally, you just give up. Remember back when Paul Volcker saved the U.S. from the worst inflation collapse. And now, the U.S. inflation problem is already serious, and we have experienced the consequences brought by such policies.
Buffett did not directly mention DOGE, but he admitted that cutting the budget deficit is a daunting but important task.
To be honest, I wouldn't want to take responsibility for repairing the fiscal system and balancing the budget—"that's not a job I want to do, but it's a job that should be done." Unfortunately, Congress has not yet taken action on this issue.
We are a great nation with the most innovative talent in the world, but we do indeed have many structural problems. If something goes wrong, these problems won't immediately erupt, but they will slowly ferment.
Governance certainly has incentives and checks and balances mechanisms. Just like in a company, even the most successful companies cannot be without problems.
Buffett mentioned again the risk of dollar depreciation. He said:
"However, the root of everything lies in having a currency that does not depreciate. If all those who trusted the government are deceived, and all those who try to profit from it become rich or richer, what impact would such depreciation have on the stability of society? I don't think you would want a society that operates in this way."
1:09 PM Question 26 at the Shareholders' Meeting: What High School Courses or Activities Help with Future Investment
Buffett said that future school teachers can learn on the job.
0:59 PM Question 25 at the Shareholders' Meeting: Tech Giants' Stocks
Tech giants are currently making large-scale capital expenditures and investing in AI. Buffett said that tech giants have earned a lot of money and made many investments. Coca-Cola also has its own bottling company, and these investments are actually not very large. Initial investments in enterprises, such as machinery, are large, but later on they decrease.
Buffett said that observing the future capital intensity increase of the "Magnificent 7" tech giants will be very interesting. "Many people in the U.S. have become very wealthy by paying attention to how others invest."
0:54 PM Question 24 at the Shareholders' Meeting: Berkshire's Future Profitability
Someone asked Buffett about the company's earnings estimate for the upcoming fiscal year and whether future profitability would increase or possibly decrease.
Buffett said, "I think our public utility income will be affected to some extent. Profitability is not entirely determined by acquisitions, but we do occasionally engage in acquisitions. This year alone, we spent $10 billion on investments."
Many of these questions depend on market conditions and people's emotions. Some people are quite pessimistic. As someone born in the 1930s, I have experienced very difficult times. Sometimes you feel that certain opportunities are particularly attractive, but you don't act on them, missing out on opportunities. This has happened many times in my life.
Often, I choose not to try things I'm not sure about—for example, if you ask me to walk a tightrope, I won't do it. But in the financial markets, some things that scare others don't scare me.
If Berkshire's stock price were to fall by half one day, it would be an opportunity for me. I know many people react differently than I do, but I'm not worried. It's not that I lack emotion, but stock price fluctuations do not sway my rational judgment. It doesn't affect my assessment of value.
In general, Berkshire's profitability will continue to grow for some time. What we need to do is keep the money we earn and make rational decisions. Everyone's abilities and risk tolerance are different, and it is precisely these differences that create opportunities in the investment market.
0:50 PM Question 23 at the Shareholders' Meeting: Acquisition of Remaining Assets of Berkshire's Energy Division
Regarding Berkshire's decision to acquire the remaining assets of its own energy division, Buffett expressed optimism about the public utility industry, saying, "The utility business is not as good as it was a few years ago." He attributed this to social factors, saying that values change and are not always upward.
Buffett talked about investment opportunities in the U.S. energy sector and the role Berkshire can play. "The solution to this problem is to achieve some kind of cooperation between the government and private enterprises, just like during wartime. I don't think the government sent people to lay a lot of concrete or do similar things when building the highway system."
He added, "We do have capital, and we also possess knowledge that is rare in only a few places."
0:43 PM Question 22 at the Shareholders' Meeting: A Female Fan Hopes Buffett Will Arrange a Meeting in His Office
The question came from a Polish woman who said that in January 1951, 74 years ago, Buffett took an eight-hour train ride to Washington just to learn about insurance, and he has consistently stuck to this path, which is a very touching experience. When she was 15 years old in 2011, she set herself a goal: one day she would meet you. Today, she has finally realized this promise and requests Buffett to fulfill a small wish: could she spend an hour with him in his office?
Buffett thanked her for her question, smiling and saying you don't need to announce my biography, but I am very grateful for your persistence and effort. There are forty thousand people here today, and your question is indeed special.
Buffett said that when I was young, I often drove across the country to visit various companies. At that time, these companies usually didn't have investor relations departments, so often the CEO personally received me. I was concerned that they might not pay attention to me, but I always prepared two very specific questions beforehand.
This approach isn't a bad idea. If you want to visit someone and chat with them for ten minutes, you need to think clearly about what you want to say and ask. You set the conditions for these ten minutes, rather than letting the other party set them.
You will find that most companies now have investor relations departments whose job is to tell you why you should buy their stock. This is becoming a growing business. But you can completely learn and understand the world in your own way. Berkshire also has its own way, we don't copy others' practices.
Now we have enough information and talent, so we don't need to conduct interviews one by one like we used to. There are forty thousand people here today, and we really can't meet everyone's request for an hour. But I truly appreciate your enthusiasm and persistence, and that's all I can say to you.
0:29 PM Question 21 at the Shareholders' Meeting: How to Protect Against Wildfires Affecting Utilities
When talking about wildfire risks, Abel said, "It won't disappear. The company has decided that sometimes when fires occur, we need to shut off equipment. This is not as simple as turning off the lights." Wildfires are happening in California and Texas. First and foremost is where to invest.
When discussing Berkshire's utility responsibilities during the spread of wildfires, Abel said, "We cannot just be the last insurer. We cannot be held responsible for everything that happens."
Buffett assured shareholders that Berkshire would not use their money for "foolish" things.
He added that if they really did so, shareholders "should get rid of us."
"It's easier to do foolish things with other people's money than with your own. This is one of the common problems in government. We don't want this phenomenon to spread to private enterprises," Buffett joked.
0:26 PM Question 20 at the Shareholders' Meeting: A 14-Year-Old Girl Wants to Join Berkshire
A 14-year-old girl from Hong Kong said she hopes to join Berkshire in the future and asked what kind of work she could do. Abel said, "Hard work and a willingness to contribute will take you further." "We sincerely look forward to the day you become a member of Berkshire."
Buffett added, "Stay curious and read more books."
0:13 PM Question 19 at the Shareholders' Meeting: Berkshire's Capital Allocation After Abel Replaces Buffett
Someone asked that over the past decade, people have always paid attention to Buffett and Charlie Munger's investment strategies. Now that Abel will replace Buffett as CEO, more capital allocation decisions may be led by him in the future. How does he view this transition, and how does he see the future?
Abel first mentioned that Berkshire has a very strong investment culture, which is the result of Mr. Buffett's long-term efforts. We all adhere to shared values.
Capital allocation is the most core part of our business philosophy. When we make decisions, it's not just about discussions within the management team, but more importantly, we have very clear awareness of risks. These values are the keys to our company's success.
We always value Berkshire's reputation, which is our greatest wealth. Buffett once reminded everyone that the first thing to do in any investment decision is to look at the income statement and understand the real numbers.
Now we have a large amount of cash, which is a huge advantage, but it also brings challenges—how to allocate these funds? This is not a simple question, but rather a profound philosophy. We always have the ability to allocate, but we strive for "better allocation."
We always emphasize that Berkshire will not rely on others in any situation, and we will not rely on bank loans for capital operations. Whether it's insurance or non-insurance business, we must have sufficient cash flow to ensure that Berkshire can operate continuously.
We will continue to focus on high-quality opportunities in various industries, not limited to insurance. Our goal is that whether we purchase 100% of a company's shares or only a part, we must fully understand the company's vision.
Like Buffett mentioned earlier: we completed a $10 billion acquisition last quarter. Sometimes a full acquisition is appropriate, and sometimes buying only a portion of the equity can also work. The key is that regardless of whether we hold 1% or 100%, we must understand what kind of enterprise the company wants to become in the next 5, 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 then emphasized that there are indeed significant transformational needs in the U.S. right now. Our country's power grid and highway systems are lagging behind the current population and economic growth rates.
To drive these changes, the U.S. government must take stronger measures. The U.S. has 50 states, each with different ways of thinking. Just like after World War II, when we mobilized the entire manufacturing industry to support the war in a very short period of time, the efficiency was amazing. But achieving the same efficiency in peacetime is not easy.
Investment depends on the context. We have knowledge and capital, but we also need strategic shifts. How to leverage Berkshire's role requires solutions that are meaningful to the country, to the people, and to the company itself.
Abel will likely express his views on these issues next. But one thing is clear: we need to prepare sufficient cash reserves to intervene at critical moments.
We have done many cooperative projects in the past. For example, the U.S. highway system was completed under the promotion of the federal government. It is impossible for one company to accomplish such projects alone. Future large-scale projects like these will also require close cooperation between the government and the private sector.
Abel said that from the perspective of the energy industry, we indeed have many fields that can be advanced. Currently, electricity demand is growing rapidly, and to meet long-term energy needs, necessary capital investments must be made. We have strong capabilities in this area and are actively responding to related risks.
Only by solving these risks can we deploy the ability to meet future demands. And we must start preparing now.
Buffett agreed, adding that we must rely on the strength of the U.S. federal government. Like building the highway system during World War II, it would be impossible to complete quickly without national coordination.
We do indeed have capital and sufficient knowledge, allowing us to participate. But having the desire for cooperation is not enough; we also need the ability to "accomplish major tasks collectively."
We were able to do this during World War II, but promoting similar nationwide construction projects in peacetime is extremely difficult. This task may ultimately fall to the next generation.
0:05 PM Opening Remarks for the Second Half and Question 18 at the Shareholders' Meeting: What Have I Learned from Munger and Others
Before starting the second half of the Q&A, Buffett recommended a documentary about the late publisher of The Washington Post, Katharine Graham, titled "Becoming Katharine Graham."
Buffett appears in this film due to his friendship with Graham and his role on the board of The Washington Post.
Jain did not appear on stage for the second half, and Buffett and Abel continued answering questions.
A shareholder asked Abel how he hoped people would remember him. He said that being a father and coach is very important to him.
Buffett joked that he hoped people would remember him because of "old age," causing bursts of laughter from the audience.
Buffett explained why he believes the balance sheet is a good starting point for assessing whether a company is worth investing in.
He said, "I spend more time studying balance sheets than income statements. While Wall Street doesn't pay much attention to balance sheets, I like to review a company's balance sheets for eight to ten years before looking at the income statement because some things are harder to hide or manipulate on the balance sheet."
He added, "Of course, neither of these can give you all the answers."
23:09 PM Question 17 at the Shareholders' Meeting: Autonomous Driving
Someone asked, if autonomous driving is fully implemented in the U.S. in the future, how will it affect Geico's insurance business? How does he view the responsibility division, software issues, and broader changes brought by autonomous driving?
Jain, who oversees insurance operations, responded that from an insurance perspective, autonomous driving will not bring immediate fundamental changes. Most car insurance premiums are currently priced based on the frequency of driver errors, and our policies and claims systems operate accordingly.
Jain said that autonomous driving technology will indeed reduce the likelihood of accidents, and Geico shares this view with other insurers. But once this technology becomes widespread, we will make corresponding adjustments.
Buffett said this reminded him of something Charlie Munger once told him. When we decided to enter the textile industry, we couldn't foresee the future transformation of the entire industry.
The world is constantly changing. Just like playing baseball or golf, not every swing results in a home run, and not every shot goes straight in. You have to accept the fact that you will make mistakes.
Today, we are discussing whether car insurance will be changed by autonomous driving, which is a very important question. But currently, autonomous driving has not yet been fully commercialized, and the U.S. has not yet widely promoted it. No one can accurately predict what the insurance industry will look like in the next hundred years.
However, one thing is clear: the world is dynamic. People like driving, and we don't want to destroy this world. We have learned how to better protect the Earth, although this process has been difficult. We know that eight countries have a major impact on human development, and we hope these countries have the best leaders.
Einstein published the theory of special relativity in 1905, which also promoted research into converting energy into powerful forces, ultimately leading to the threats posed by nuclear weapons. I witnessed these consequences after my birth in 1930. Even Einstein himself couldn't have foreseen how these inventions would eventually change the world.
We have also seen developments in North Korea. No one can truly predict what they will do next. These uncertainties will not disappear soon.
Nevertheless, change has brought many benefits, making our lives today much better than 100 years ago. But we still have to face real issues like weapons of mass destruction.
Just like car insurance today, we see rapid technological development, but for me, this change is not as impactful as the shock the textile industry once had. This should be one of the most fortunate periods in human history, and you should enjoy life while paying attention to changes in the insurance industry.
We have done well in the insurance industry. Although it has many structural problems, we can't control everything. If you don't know how to swing a golf club, don't play golf.
There are still many clauses to be clarified regarding product liability and accidental incidents caused by autonomous driving. Once an accident occurs, due to technological upgrades, repair costs will significantly increase. Cars are becoming more and more like high-tech products, and these new technical issues have not 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. But now, $2,000 per year is the norm. Meanwhile, the number of traffic fatalities has dropped dramatically. If you look at it from another perspective, driving is actually safer now than before. Predicting the future trend of the entire industry is very difficult. You must consider research, reality, and various data to look at it.
Changes in the energy industry, healthcare, and political environment may also cause industrial restructuring. In the business world, many problems have no "answers," only "action points." The game rules today are completely different from the past, so you have to rethink how to run your industry every day when you wake up.
Some supplementary explanations about Berkshire's first-quarter financial report:
Our insurance segment's performance declined significantly this year. Last year was very strong, but this year has been under pressure due to falling prices and rising risks.
We have some achievements that cannot be replicated, and we do not recommend anyone to replicate others' models. We do have some advantages.
Our investment income has not changed much because our overall mistakes are not many. We expect this year's total investment to be around $40 billion, although overall returns will be lower, but the negatives will be fewer than in the past.
Railroad business grew slightly this year compared to last year, with some problems improving, and remains a quality asset for Berkshire. Energy segment issues are largely resolved, and profits rebounded this year. Other businesses require us to double down on efforts.
We have done a lot of calculations, with some growth and some decline, overall it's pretty good. Regarding cash flow, please be patient. Munger once told me, "As long as you are patient and willing to read financial reports every day and listen to speeches by politicians, you will find very good opportunities."
We still have ample cash. As long as our underwriting businesses generate profits, these funds can be put to use. We may make significant investments in the next 50 or 100 years. Of course, difficult years will come, and then these cash reserves will be especially important.
Currently, the retained premium rate for life insurance is -2.2%. If you are not prepared for the future, you are likely to get into trouble. Running a business must involve thinking in a different mindset.
This year, we did not make any acquisitions. If you buy Berkshire's stock, you will also receive your rightful portion.
Buffett said that part of the reason Berkshire suspended its stock repurchase plan this year is that about a year ago, the Inflation Reduction Act was passed, which levied a 1% consumption tax on stock buybacks. This hurt us more than other companies.
Buffett said, "This does make the attractiveness of buybacks slightly less than before."
Buffett gave an example, saying that Apple performed very well this year and spent $100 billion on buybacks. The taxes they paid for these buybacks were also huge. The price they bought back was even higher than when you bought in—this is good news.
Nowadays, people are all looking for ways to improve their chances of success, but I want to emphasize: you must read carefully. Without deep reading, you cannot make wise decisions.
Even if major changes occur in the future, our company will still adhere to a conservative and prudent participation strategy. Although we have done some buybacks, the tax burden has already been significant.
23:03 PM Question 16 at the Shareholders' Meeting: How to Deal with Life Setbacks
A shareholder from Shanghai sought advice on how to deal with setbacks in life.
Buffett said, "I focus on the good things, not the bad things. Life can be wonderful—there may also be terrible setbacks."
22:59 PM Question 15 at the Shareholders' Meeting: Has Recent Market Turmoil Provided Investment Opportunities
Asked whether recent market volatility provided opportunities for big investments, Buffett downplayed recent market fluctuations, saying "really nothing," which is part of investing. He dismissed recent stock market volatility that had investors feeling uneasy.
Buffett said, "What happened in the past 30, 45, or 100 days... really doesn't count for much."
Buffett pointed out that in the past 60 years, Berkshire's stock price fell by 50% fewer than three times. During this period, the company did not have any fundamental issues.
In the past 60 years, Berkshire Hathaway's stock price fell by 50% fewer than three times. He pointed out that during this period, the company did not have any fundamental issues.
Given this, compared to the 1929 stock market crash, Buffett considered the recent movements of U.S. stocks "not a huge move (not a huge move)," "this is not a dramatic bear market (dramatic bear market), nor is it similar to such situations."
Buffett recalled that on the day he was born in 1930, August 30, the Dow Jones Industrial Average was 240 points, and later fell to 41 points. Despite some "horrifying events," the Dow closed above 41,300 points this Friday.
For those worried about the cyclical rise and fall of their investment portfolios, Buffett suggested they should change their investment philosophy to adapt to the world—not the other way around.
Buffett said, "If whether your stock falls 15% is important to you, then you need to change your investment philosophy. The world will not adapt to you; you must adapt to