Last night, Berkshire Hathaway released its first quarter report for fiscal year 2025, showing a significant decline in operating profit, while the performance of securities investments also experienced a noticeable shrinkage. The operating profit for the first quarter of this year was $9.641 billion, down from $11.222 billion in the same period last year. As of the end of March, Berkshire's total cash, cash equivalents, and short-term government bonds further rose to $347.7 billion, up from $334.2 billion at the end of last year.
The following are the key points from Buffett's shareholder meeting.
Buffett: He will resign as CEO of Berkshire Hathaway at the end of the year with no intention of selling stocks.
Buffett announced that he will resign as CEO of Berkshire Hathaway at the end of the year. He will ask the Berkshire Hathaway board to appoint his designated successor, Greg Abel, to replace him as CEO before the end of the year. He will still 'stick around' to help, but the final decision-making power will be in Abel's hands. Buffett mentioned that Abel is not aware of this, and neither are the other board members except for his children. Buffett stated he has no intention of selling any Berkshire stock.
Buffett: The U.S. should seek trade with other countries; trade should not be used as a weapon.
Buffett stated that the U.S. should seek trade with other countries; trade should not be used as a weapon, as it can lead to undesirable outcomes. Buffett stated that 250 years ago, we started from nothing, and today we have become an extremely important country, which is unprecedented. Buffett claims that a more balanced trade would be better for the world. I believe that if this world is wealthier and not at the expense of others, it is better for everyone and will feel safer.
Buffett: I will not sell the stocks I invested in Japan.
Regarding investments in Japan, Buffett stated that we will not immediately sell any Japanese stocks; it will not happen now or in the next ten years. These things sometimes encompass many results from around the world. Berkshire will continue to expand this relationship, which is the case for Japan. We have entered this market and invested $20 billion in it.
Buffett: Cook has also done an excellent job taking over Apple.
Buffett mentioned at the shareholder meeting that he is very glad that Apple CEO Mr. Cook is also present. After Jobs' death, Cook has also done an excellent job taking over Apple; no one can be like Jobs, but Cook has made a significant contribution to Apple. Buffett jokingly said, 'It’s a bit embarrassing to say, but Cook has earned more money for Berkshire than I have for Berkshire Hathaway.'
Buffett: The recent significant fluctuations in U.S. stocks are nothing to worry about.
Buffett stated that what has happened in the past 30 days, 45 days, or 100 days really does not matter. A 15% drop in stock prices is not a significant change; there may be changes at certain times, which is the norm in the stock market, and we should not panic because of short-term changes.
Buffett: I feel scared about the fiscal issues in the U.S., but this is not a problem unique to the U.S.
Buffett stated that Berkshire will hardly do anything to make a quarterly or annual financial report look better. They do not want to hold any monetary assets that they believe will depreciate to nothing. Buffett also stated that the fiscal issues in the U.S. scare him, but this is not a problem unique to the U.S.
Buffett: The reason I made a lot of money is that I never invested everything.
Buffett stated at the Berkshire Hathaway shareholders meeting that the reason he made a lot of money is that he never invested everything. The likelihood of major trading opportunities arising tomorrow is very low, but it is not impossible in the next five years.
Buffett: Compared to stock investments, real estate investments are more time-consuming and less attractive.
Buffett stated that compared to stock investments, real estate investments are more time-consuming and less attractive; he usually does not engage in real estate transactions because these investments have more uncertainties compared to stock trading. Buffett mentioned that Charlie also did a lot of real estate transactions initially, and he loved doing real estate deals. So, in his lifetime, he did a lot of real estate transactions.
Buffett: The U.S. fiscal deficit is 'unsustainable' and has not been truly addressed for a long time.
Buffett stated that in terms of fiscal policy, the U.S. has not truly addressed the issue of the fiscal deficit for a long time; this has never been a thoroughly resolved topic. As far as the U.S. is concerned, our fiscal deficit is no longer a sustainable model. Whether in two years or twenty years, we cannot rely on this unsustainable mechanism forever. The current inflation in the U.S. is very serious; this has been tested and we know what the consequences are. He also stated that he does not want to take on the job of balancing the U.S. fiscal revenue and expenditure, but 'cost-cutting work should be done.'
Buffett: He has been looking for investment opportunities and hopes to reduce cash on hand, possibly down to $50 billion.
Buffett claims that Berkshire's cash level is indeed quite high, but good opportunities do not arise every day; incorrect or improper investments can harm investors' interests. He has been looking for investment opportunities and hopes to reduce cash on hand, possibly down to $50 billion. Berkshire is likely to find investment destinations for its record-sized cash reserves within the next five years. 'The chance of an opportunity arising tomorrow is very slim, but the probability of it happening within five years is not low.' He revealed that Berkshire recently almost used $10 billion for investment but ultimately did not go through with it. Buffett stated that when something makes sense to us, we understand it, and it is worth something, making those decisions is not difficult. But one issue with investment business is that things do not proceed in order.
Buffett shares career advice: Do what you love for work and don't worry too much about the starting salary.
Buffett stated that you should do what you love for work. I had five bosses in my lifetime, and I liked each of them; they were all very interesting people. But later I decided to help myself start a business, and I found that if the place you work is something you like, it will be the best place. Not everyone can be as lucky as I was, because I found that if you have an interest in something when you are seven or eight years old, you will invest in it. If you are lucky like me and find what you like at a young age, you will work very hard for it and want to strive for it; don’t worry too much about the starting salary.
Buffett: I will not invest everything around AI.
Buffett stated that he will not invest everything around AI. He also pointed out that if given a choice, he would invest in the reinsurance industry. Regarding artificial intelligence, Ajit Jain stated, 'Currently, some insurance companies are indeed trying AI and trying to find the best ways to utilize it, but we have not consciously invested a lot of money to seize this opportunity. I guess we will be ready, and once the opportunity arises, we will act quickly.'
Buffett: It will be very interesting to observe how capital-intensive the 'seven giants' of technology become in the future.
Buffett stated that technology giants have indeed made a lot of money because they have invested a lot of money. It is true that capital is needed for anything you do. Making money without investing is always better than putting in a lot of money to make big money. Taking Coca-Cola as an example, downstream bottlers require a lot of capital, but Coca-Cola itself, which sells syrup, does not need much capital. Buffett stated that it will be very interesting to observe how capital-intensive the 'seven giants' become in the future. In this country, many people in the asset management industry have become very wealthy by observing how others invest capital.
Buffett: If Berkshire's stock price crashes today, I would see it as a very good opportunity.
Buffett stated that there are some things that others may fear, but I do not fear them, especially in the financial industry; I will not be as afraid as others. If Berkshire's stock price crashes by 30%, I would see it as a very good opportunity, and I would not worry. It’s not that I lack emotions; I just do not have an emotional reaction to stock prices. At this time, we need to use our brains and wisdom, rather than emotions, to make decisions.
Buffett: I will not feel frustrated about the current state of the U.S.
Buffett stated that the U.S. is undergoing immense and revolutionary changes. However, looking back over the past century, we have always been in a state of change, and we have always criticized various things... I consider myself very lucky to be born in America; since I was born in the 1930s, everything has changed tremendously. We experienced the Great Depression, we experienced world wars, so even if it seems we haven't solved the problems that have arisen, I won't feel disheartened, nor do I think the current problems will last long.
Buffett: You should associate with people better than you; when investing, you need to put emotions aside.
Buffett stated that who you associate with is extremely important. You should associate with people better than you, and in the end, you will develop towards the direction of those you associate with. The world will not adapt to you—you have to adapt to it. The world can make big mistakes; the more complex the system, the more unexpected things happen. This is the origin of the stock market. If you are afraid of declines and excited about rises, that is just human emotion—but when you invest, you need to put those emotions aside.
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