2025 Berkshire Hathaway shareholders meeting summary: Buffett talks about "retirement", trade, cash deployment, American exceptionalism, US stock market volatility.

The annual event in the investment world - the Berkshire Hathaway shareholder meeting - kicked off on May 2nd, with the Q&A session starting at 9 p.m. Beijing time on Saturday, May 2nd. "Stock God" Buffett once again fully participated, along with his CEO successor - Greg Abel, who is in charge of Berkshire's non-insurance businesses, and the insurance business leader Ajit Jain, answering shareholder questions together. This year marks the 60th anniversary of Buffett's acquisition of Berkshire Hathaway, making this shareholder meeting one of the most important in history, as it may be Buffett's last full participation in a shareholder meeting. Buffett announced at the end of the Q&A session that he plans to propose to the board to step down as CEO by the end of the year. This will mark the beginning of the end of the "Buffett era" at Berkshire. Investors need to be prepared for a Berkshire without Buffett at the helm. Apart from his plan to "retire" at the end of the year, Buffett also discussed several hot-button issues in the market. Although not naming Trump directly, Buffett criticized tariffs and trade protectionism, stating that fiscal policy is his biggest concern in the US, repeatedly mentioning the risk of the depreciation of the dollar and warning that irresponsible government actions could make the value of the currency "frightening." However, he still hinted at a strong bet on America, believing in the American exceptionalism. Buffett reiterated his optimism about Japanese stocks, saying he plans to hold them for fifty to sixty years. He also downplayed recent stock market volatility, stating that it is not a severe bear market. The first-quarter financial report released earlier on Saturday showed that Berkshire's cash reserves reached a record high of $347.7 billion for the quarter. In an environment of high uncertainty due to tariffs, Buffett is cautious about current investments, expecting good investment opportunities in the next five years. He mentioned that Berkshire's delay in repurchasing shares is due to a 1% consumption tax on stock buybacks introduced by the Biden administration last year. Similar to last year's Q&A live coverage of the shareholder meeting, this year, Wall Street News is also live broadcasting the highlights of the Berkshire shareholder meeting in real time, with the latest updates placed at the top in reverse order according to Beijing time. Below are the highlights of the 2025 Berkshire Hathaway shareholder meeting. 1:57 pm - End of the shareholder meeting Q&A Buffett announced, "Greg (Abel) should be the CEO of Berkshire by the end of the year." Buffett stated that after stepping down, he will still remain at Berkshire and provide assistance, but the "final decision-making power" will be in Abel's hands. Buffett mentioned that Abel is not aware of this decision. Apart from his children, the other board members are also not aware of it. Buffett said he has no intention of selling any Berkshire shares but will gradually donate his holdings. He said, "I absolutely have no intention of selling any shares of Berkshire Hathaway, I will gradually give them away." This statement earned applause and cheers from the audience. Buffett continued, "I want to add one thing: The decision to retain all shares is an economic decision because I believe that under Greg Abel's leadership, Berkshire's prospects will be even better than when I was managing it." He said that this decision also shows his confidence in Abel's leadership abilities. Buffett concluded: "But I will add that perhaps one day we will have the opportunity to invest a large amount of money. By that time, I think it could be very helpful to the board - letting them know that I have invested all my money in the company, I think it's wise, and I have seen the performance of Greg." 1:54 pm - 32nd question at the shareholder meeting: Abel's future role Someone asked what Abel's future role will be once he fully takes over at Berkshire Hathaway, including his responsibilities for asset allocation, and whether he will primarily be an investor or more of an operator in the company. Buffett said, "To be honest, being an operator of a business is very difficult, while managing money in a room is relatively easier and more enviable. I have always felt fortunate because I have had the opportunity to choose who I work with in my life. I have never been disappointed by my teachers or partners, which is quite rare." "I'm also grateful that I have the freedom to choose what I want to do every day - a freedom and flexibility many professional managers don't have. Honestly, I never thought about becoming a company's 'top manager' - that's not a role I'm good at or enjoy." "Now I can manage the company the way I like, which is a happy thing for me. Abel is a very outstanding operator, adept at handling complex operational matters. And I can entrust this work to him because I believe he will do it well." "As for asset allocation, that will of course be part of the future work. But I want to emphasize that the real challenge is not just 'investment,' but how to use Berkshire's resources to do the right thing. Abel will be someone who can combine these two things well." 1:44 pm - 31st question at the shareholder meeting: US healthcare reform A nurse asked why Berkshire terminated its cooperation with JPMorgan and Amazon in the healthcare field and their thoughts on US healthcare reform. Buffett stated that the termination of the cooperation was due to the resistance to change they faced. 1:38 pm - 30th question at the shareholder meeting: Berkshire's view on climate change Abel mentioned that when supporting and acquiring energy companies, Berkshire considers federal and state requirements related to this issue. Abel provided an example of a structural change in the power sector in Iowa in the early 21st century. Abel said that in the early 21st century, Iowa faced a shortage of electricity, with all the power coming from thermal power plants. He had conversations with the governor on how to maintain long-term energy supply. Various types of energy were discussed at the time. Abel emphasized that with the support of state legislators, Iowa built a large wind power project, while phasing out a group of coal-fired units. Berkshire invested $16 billion in what is now the largest wind power project in the US in Iowa, while eliminating a group of coal-fired units. Abel added that coal-fired units are still needed to maintain a stable power supply. This statement garnered applause from the entire audience. Abel stated that renewable and non-carbon energy sources must meet national requirements for advancement. Berkshire has done this-Decisions that fully comply with federal and state government requirements, respect the processes of all states, and cooperate with them. "We will continue to work with all states to determine the routes they want to plan."Abel warned, "We cannot have a situation like in Spain or Portugal." He was referring to the recent power outage events that swept through the Iberian Peninsula of Spain and Portugal, which means that Berkshire's energy business still needs coal-fired power plants to continue generating enough electricity. 1:31 PM Shareholder Meeting 29th Question: Berkshire's Operating Subsidiary Model Berkshire adopts a "hands-off" management approach with its subsidiary operations, and someone asked for specific details on how it operates. Abel said that since 2018, he has been gaining a deeper understanding of Berkshire's various businesses. Buffett's knowledge is very admirable, and he is very willing to share: he points out potential risks in the business model, and we communicate with him promptly when problems arise. We mainly discuss framework issues, such as trends in an industry, or whether a certain strategy is reasonable. But in day-to-day operations, we have a lot of autonomy, can make independent decisions, and drive projects forward. If there is a sudden opportunity in an industry or we plan to pursue a new direction, we discuss with Buffett whether it is worth doing. But at the execution level, we have a high degree of freedom. The managers selected by Berkshire are very knowledgeable about the operations of their industry, such as the leaders of Geico. Especially in recent years when the insurance industry has undergone changes, a visionary leader is crucial. We benefit from past experience. Buffett joked, "I have worked with Abel for many years. He is very serious and sometimes I wish I could relax and not work so hard like an artist. But to be honest, if a business is run very well, then you don't have to worry about being fired." Abel is doing an excellent job. Not everyone is suitable to be a manager. Some people want to be told what to do; as soon as you give them orders, they resign, and I don't blame them. But Abel is different; he is autonomous and willing to accept advice or assistance from others. He is a true leader. At Berkshire, we do not expect every manager to operate in the same way. Some people are very admirable, and some may not be. But the quality of management in an organization can be seenif the organizational culture starts to deteriorate, it may indicate that improvements are needed at the leadership level. For example, in a retail store under our management, there were employees who told their friends to "come buy something, and I will give you a discount," even though they meant well, they violated the company's employee discount rules. This kind of behavior can "spread." We do not want to see top managers leading rule changes for personal gain. Once that happens, the entire organization may head in the wrong direction. 1:23 PM Shareholder Meeting 28th Question: Assuming we go back to 1776, how to create the foundation of capitalism in America and support its long-term prosperity Buffett said, "When people are most pessimistic, we make the best deals." He said that Berkshire will continue to enhance profitably, but this growth will not be linear. Buffett defended his decision to not use other people's capital for trading at Berkshire over the long term. Buffett called the US a shining example of capitalism and compared this system to a grand cathedral with an attached casino. He said, "Capitalism in America has achieved unprecedented success. It is a combination of a magnificent cathedral that has created an unprecedented economic system in the world, along with a huge casino attached to it. The temptation is great, especially now, the temptation is to enter that casino." "In that grand cathedral, people are basically designing a system that can produce goods and services for over three hundred million people, a scale that has never been seen in history." While it may be very appealing to devote all your time and effort to this metaphorical casino, Buffett reminded that balance is crucial. "In the casino, everyone is having fun, money is flowing frequently, but you also have to ensure that the cathedral is provided for. In the next 100 years, America must ensure that this cathedral is not swallowed by the casino." He added, "We have built an interesting system, but it has indeed worked. Capitalism in terms of distributing rewards seems very capricious and arbitrary." 1:17 PM Shareholder Meeting 27th Question: Is DOGE good or bad for America in the long term When asked about the Department of Government Efficiency (DOGE), Buffett chuckled and said, "Why ask me such a difficult question. For me, the bureaucratic system of government has always been confusing. In a capitalist market, many bureaucratic structures can 'spread,' meaning their inefficiency may extend to other areas. Actually, there are better ways of managing many systems, even within Berkshire, there is room for streamlining and increasing efficiency. But the government is the government. It does not have a true 'supervisor' to oversee it, which makes people anxious about the future governance and financial situation. Especially when elected officials say one thing and do another, it really makes people worry. I have always believed that if a politician is wealthy but lacks credibility, it is a very negative signal for me. In terms of fiscal policy, the United States has not truly solved the issue of the budget deficit in the long term, and it has never been a topic that has been thoroughly resolved. As for the United States, "Our current fiscal deficit situation is difficult to sustain for a long time. We don't know if this means it can continue for two years or twenty years because no country, like the United States, can sustain this situation indefinitely." Sometimes you know that something cannot last, but you do not know how to stop it - eventually you just throw your hands up and give up. Back in the day, it was (former Federal Reserve Chairman) Paul Volcker who prevented the worst inflation collapse in America. But today, America's inflation problem is very serious, and we have also experienced the consequences of such policies. Buffett did not directly discuss DOGE but admitted that reducing the budget deficit is a challenging but important task. To be honest, I would not want to be responsible for fixing the financial system, balancing revenues and expenses - "That's not the job I want to do, but that's not what I want to do.""It's a job that should be done." However, it seems that Congress has not yet begun to address this issue.Turn off the devices power. This can't be solved by just turning off the lights. Wildfires are happening in California and Texas. Where to invest is the first point of view.When it comes to the responsibility that Berkshire Hathaway Utilities Company bears during the spread of wildfires, Abel said, "We cannot just be the ultimate insurer. We cannot be responsible for everything that happens." Buffett assured shareholders that Berkshire will not use their money on things the company considers "foolish." He added that if they really did that, shareholders "should kick us out." "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 to bring this phenomenon to private enterprises," Buffett joked. 00:26 Shareholders' Meeting 20th Question: A 14-year-old girl hopes to join Berkshire in the future, how can she work hard A 14-year-old girl from Hong Kong expressed her desire to join Berkshire in the future and asked what kind of work she can do. Abel said that hard work and a willingness to contribute will take you further. "We sincerely look forward to the day when you become a member of Berkshire." Buffett added, "Stay curious and read more." 00:13 Shareholders' Meeting 19th Question: Capital allocation at Berkshire after Abel takes over Buffett Someone asked about Buffett and Charlie Munger's investment strategies over the past decade. Now that Abel will succeed Buffett as CEO, there may be more capital allocation decisions led by him in the future. How does he view this transition and the future? Abel first mentioned that Berkshire has a very strong investment culture, which is the long-term result of Mr. Buffett's efforts. We all hold common values. Capital allocation is the most essential part of our operating philosophy. When making decisions, it is not just a discussion among management, but more importantly, we have a very clear risk awareness. These values are key to our company's success. We always value Berkshire's reputation, which is our greatest wealth. Buffett has reminded everyone that the first thing to do when making any investment decision is to understand the real numbers on the income statement. We now 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 a profound philosophy. We have the ability to allocate at any time, but we strive for "better allocation." We have always stressed that Berkshire will not rely on others in any environment, we will not rely on bank loans for capital operations. Whether in insurance or non-insurance businesses, we must have sufficient cash flow to ensure that Berkshire can continue to operate. We will continue to focus on high-quality opportunities in various industries, not limited to the insurance industry. Our goal is to fully understand the vision of the companies we invest in, whether buying 100% ownership or only a portion. As Buffett mentioned before: In the last quarter, we completed a $10 billion acquisition. Sometimes a complete acquisition is suitable, and sometimes buying only a portion of the shares can also be effective. The key is that whether we own 1% or 100%, we must understand what kind of company this company wants to become in the next 5, 10, 20 years. We will continue this philosophy. This has been the core of Berkshire's success for the past 60 years, and we will not change. Buffett further said that it must be emphasized that the United States is indeed facing some major transformational needs. Our country's power grid and highway systems are lagging behind the current population and economic growth. To drive these changes, the US government must take stronger measures. The US has 50 states, each with different ways of thinking. Like after World War II, we mobilized the entire manufacturing industry to support the war effort in a very short period of time, and the efficiency was astonishing. But during peacetime, achieving the same efficiency is not easy. Investment depends on the situation. We have knowledge and capital, but we also need strategic changes. How to leverage Berkshire's role, it needs solutions that are meaningful to the nation, the people, and the companies. Abel may offer his opinion on these issues next. But one thing is clear: we need to be prepared with sufficient cash reserves to intervene at critical moments. We have done many cooperative projects in the past. For example, the US highway system was completed with the promotion of the federal government. It is impossible to do it with just one company. Similar large projects in the future also require close cooperation between the government and the private sector. Abel said that from the perspective of the energy industry, there is indeed a lot we can push forward. Currently, there is rapid growth in power demand, and to meet long-term energy needs, necessary capital investments must be made. We have strong capabilities in this field and are actively addressing related risks. Only by addressing these risks can we deploy the capacity to meet future demands. And we must start preparing now. Buffett agreed, saying that we must leverage the power of the US federal government. Like building the highway system after World War II, it would not be possible to complete it rapidly without national coordination. We indeed have capital and sufficient knowledge, which allows us to participate. But just having the desire to cooperate is not enough, we also need the capability to "concentrate our efforts to accomplish great things." We were able to do this during World War II, but in peacetime, driving similar national construction is very difficult. This task may eventually fall into the hands of the next generation. 00:05 Second half opening remarks and Shareholders' Meeting 18th Question: What have we learned from Munger and others Before the start of the second half Q&A session, Buffett recommended a documentary about the late Katharine Graham, the publisher of The Washington Post, titled "Becoming Katharine Graham." Buffett appeared in this film due to his friendship with Graham and his role on the board of The Washington Post. Since Jain did not take the stage in the second half, Buffett and Abel continued to answer questions. A shareholder asked how Abel would like people to remember him. He said that his role as a father and coach is very important to him. Buffett jokingly said, he hopesPeople remember him because of his "old age", which triggered laughter from the audience.Buffett explained why he believes the balance sheet is a good starting point for evaluating whether a company is worth investing in. He said: "I spend more time studying the balance sheet than I do looking at the income statement. Wall Street actually doesn't pay much attention to the balance sheet, but I like to look at a company's balance sheet from 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 Shareholders' Meeting Question 17 - Autonomous Driving Someone asked, autonomous driving has not yet been fully popularized in the United States. If it does become a reality in the future, what impact will it have on Geico's insurance business? How do you view the responsibility division, software issues, and broader changes brought about by autonomous driving? Jain, responsible for the insurance business, answered that from an insurance perspective, autonomous driving will not immediately bring about fundamental changes. Currently, the insurance premiums for most auto insurance are priced based on the frequency of driver errors, and our policies and claims systems operate according to this risk calculation method. Jain said that autonomous driving technology may indeed reduce the likelihood of accidents, and Geico, like other insurance companies, holds a similar view. However, once this technology is widely adopted, we will also make corresponding adjustments. Buffett said, this reminds me of what Charlie Munger said to me before. When we first decided to enter the textile industry, we could not foresee the future transformation of the entire industry. The world is constantly changing. Just like in baseball or golf, not every swing can hit a home run, and not every shot can get a hole-in-one. 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. However, at present, autonomous driving has not been fully commercialized, and the United States has not yet begun large-scale promotion. No one can accurately predict what the insurance industry will look like in the next hundred years. However, one thing is clear: this world is dynamic. People like to drive, we do not want to destroy this world. We have learned how to better protect the earth, even though it has been a difficult road. We know that 8 countries globally have a significant impact on human development, and we hope that these countries have the best leaders. In 1905, Einstein published the theory of relativity, which also promoted research into the conversion of energy into powerful forces, ultimately leading us to face the threat of nuclear weapons. After I was born in 1930, I witnessed these consequences. Even Einstein himself could not have foreseen how these inventions would ultimately change the world. We have also seen the development in North Korea. No one can truly predict what they will do next. These uncertainties will not disappear quickly. Nevertheless, change has brought many benefits, making our lives today much better than 100 years ago. But we still need to face realities like weapons of mass destruction. As for car insurance now, we see rapid technological developments, but for me, this change is not as impactful as the textile industry back then. Now is probably one of the "luckiest" periods in human history; you should enjoy life and pay attention to changes happening in the insurance industry. We are doing well in the insurance industry. Although there are some structural problems, we cannot control everything. If you don't know how to swing a club, don't play golf. There are indeed many clauses that need to be clarified regarding product liability and accidents caused by autonomous driving. Once accidents happen, due to technological upgrades, repair costs will significantly increase. Cars have become more and more like high-tech products, and these new issues related to technology have not been completely resolved yet. For example, when I first went to Geico in 1950, the average annual premium was about $40, depending on the state you lived in. Now, an annual $2000 premium is the norm. However, at the same time, the number of traffic accident fatalities has decreased significantly. So, if you look at it from a different perspective, driving now is safer than before. The future trend of the entire industry is hard to predict. You have to consider it based on research, reality, and various data. Changes in the energy industry, healthcare, and political environments may also cause industrial structural adjustments. In the business world, many issues do not have "answers," only "action points." The rules of the game today are completely different from the past, so you have to rethink how to operate your industry every day when you wake up. Some additional information on Berkshire's first-quarter financial report: Our performance in the insurance sector declined significantly in the first quarter of this year. Last year was very strong, but this year we are facing pressure due to price declines and increased risks. Some of our achievements cannot be replicated, and we do not recommend copying someone else's model. We do have some advantages. Our investment income has not changed much because we make few mistakes overall. We expect the total investment this year to be around $40 billion, although the overall return will be lower, the negatives are also fewer than in the past. The railroad business grew slightly this year compared to last year, and some issues are improving, making it still a high-quality asset for Berkshire. The issues in the energy sector have been largely resolved, and this year's revenue is also increasing. Other businesses require us to continue to work harder. We have done a lot of calculations, with some growth and some decline, overall it is not bad. Regarding cash flow, please be patient. Munger once told me, "As long as you have patience and are willing to read financial reports every day and listen to politicians' speeches, you will find very good opportunities." We still have plenty of cash on hand, as long as the businesses we underwrite can bring profits, this cash will be put to good use. We may make significant investments in the next 50 or 100 years. Of course, difficult years will come, and at that time, these cash reserves will be particularly important. Currently, the retention funds in the life insurance section are at -2.2%. If you are not prepared for the future, you may run into trouble. Operating a business requires a different way of thinking. We did not make any acquisitions this year. If you buy Berkshire's stock, you will also get your fair share. Buffett said that the reason Berkshire suspended part of its stock buyback plan this year is due toYes, about a year ago, the Inflation Reduction Act was enacted, which imposes a 1% consumption tax on stock buybacks. This is more damaging to us than to other companies.Warren Buffett said, "This does make its (buyback) attractiveness slightly lower than before." Buffett gave an example, such as Apple, which has performed well this year and spent $100 billion on buybacks. The taxes they paid for these buybacks were also huge. The prices they bought back were even higher than the prices you bought in at - this is good news. Today, people are all looking for ways to increase their chances of success, but I want to emphasize: You must read carefully. Without deep reading, you cannot make wise decisions. If there are major changes in the future, our company will still adhere to a conservative and cautious participation strategy. Although we have done some buybacks, the tax burden is no longer insignificant. 23:03 Shareholders' meeting 16th question: How to deal with setbacks in life A shareholder from Shanghai, China 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 - but it can also encounter setbacks." 22:59 Shareholders' meeting 15th question: Did recent market turmoil provide investment opportunities Asked whether recent market volatility provided opportunities for major investments, Buffett played down recent market volatility, saying "It's actually nothing," and that it's part of investing. He dismissed the recent stock market volatility that has made investors uneasy in recent weeks. Buffett said, "What has happened in the past 30 days, 45 days, 100 days...really doesn't mean much." Buffett pointed out that in the past 60 years, the price of Berkshire Hathaway's stock has fallen by 50% less than three times. During this time, the company did not have any fundamental issues. In the past 60 years, the price of Berkshire Hathaway's stock has dropped by 50% less than three times. He pointed out that during this period, the company did not have any fundamental issues. In view of this, compared to periods like the stock market crash of 1929, Buffett believes that the recent trend in the US stock market is "not a huge move," "this is not a dramatic bear market, nor is it a similar situation." Buffett recalled that on his 1930 birthday, August 30, 1930, the Dow was at 240 points, and later fell to 41 points. Despite experiencing some "hair-raising" events, the Dow closed above 41,300 points on Friday. For those who are worried about the cyclical ups and downs of their investment portfolios, Buffett advises: they should change their investment philosophy to adapt to the world - rather than the world adapting to them. Buffett said, "If it's important for you whether your stock drops 15%, then you need to change your investment philosophy. The world won't adapt to you, you have to adapt to the world." He added, "People have emotions. But you have to control your emotions when investing." 22:50 Shareholders' meeting 14th question: Young people investing The questioner is a young girl. She said she is just beginning to learn about investing and wants to hear Buffett's views. What lessons did he learn in the early stages of investing. Buffett said, "This is a very good question. I really wish someone had given me this advice when I was young." This is very relevant to the people around you. Do not expect every decision you make to be correct. If your life has a direction, then you should strive to make those people you respect and aspire to be your friends. I just mentioned a few people I used to work with in the past, maybe they didn't do things on the same scale as I did, but they were people I really liked and it meant a lot to me to be with them. It is very precious to walk through life with like-minded people. Unfortunately, these truths often only truly come to you later in life. When you get older, you will understand that these are the truly important things. Buffett mentioned two former directors of Berkshire, Tom Murphy and Walter Scott. He said, if you have people like Tom Murphy and Walter Scott around you, your life will be better. But that doesn't mean you have to follow rich people and copy their lifestyles. I would suggest you get close to those who are truly smart and wise, learn from them, seek their advice, and try with them. If you are looking for a meaningful job, and you are not in a hurry to make money, then I suggest you spend time with excellent people like Charlie Munger. Find these opportunities, share their success; if you can't find them, that's okay, you just keep doing what you're doing, keep working hard. Keep going, you will eventually find those who live life seriously and think seriously like you. Buffett recalled, the first time I went to Geico, the door was locked, I didn't know who was behind it. Ten minutes later, I saw that person, who later had a great impact on my life. When you meet these people, remember their help to you, and think about being able to help them in the future. Do not forget these good people. Of course, sometimes you may encounter some unfavorable situations. But if you are really lucky to live in a good environment where there are great people around you, cherish it. You don't need to feel guilty about being lucky. There are 8 billion people in the world, and the United States has only over 300 million people, if you live here, you are already ahead in this game, you should make good use of this advantage. If someone at work asks you to do something you don't want to do at all, don't be with them. Different industries have different criteria for choosing people, but if you find a direction that excites you, then work hard to do it, especially if it is a career you want to do for a lifetime. The investment industry is very interesting, many people don't want to continue after making their first pot of money. But I was very lucky, I saw its long-term charm from the beginning. Like Tom Murphy, who lived to be 98, he had the ability to see things in others, The potential is there. We have not encountered anyone else like him who can so keenly identify talent. If you want to become a better person, you should strive to find people like him and work with them.Answer this question. He said that it is important to surround oneself with excellent people who are enjoyable to work with.Buffett gave advice on choosing a job and starting a career. He said, you need to "do what you love." Buffett reminded that an employee's habits may affect colleagues, so it is crucial to carefully choose the workplace. Buffett advised that although you should "carefully" choose your employer, you should not be overly concerned about factors like starting salary. "If you can find great colleagues there, then go there." Abel expressed that he is honored to be involved in Berkshire's work. 22:13 Question Nine at the shareholders meeting: Geico, the car insurance company Jain said that Geico did face a crisis, but we turned that crisis into an opportunity. When we initially took over, there were two main problems: first, our rate structure was unreasonable, and second, we had systematic issues with our actuarial and pricing mechanisms. Five or six years ago, these were areas of concern for us. Through quick technological adjustments and process optimizations, these issues have now been resolved. We have not only improved our pricing models but also done extensive work on risk matching and optimized our overall pricing system. Today's Geico can price everyone based on their comprehensive risk level, and we are doing very well in this area, which has translated into significant profits. Although we have achieved a lot, I do not believe the job is done. We have a lot of technology available to us, such as AI and other new tools. Our goal is not to "catch up" but to "do better." Buffett said that this is a very interesting case study, especially on how a company deals with changes in game rules in the industry. Each business has its own challenges and opportunities. Berkshire bought Geico in the 1970s for $50 million, only a partial stake at the time. Later, Geico brought us huge profits, and now we own 100% of the company, with quarterly profits reaching $2 billion. But this is the result of decades of continuous investment and improvement. 100 years ago, auto insurance was almost nonexistent; but now, besides property and casualty insurance, auto insurance has become one of the largest contingencies. Geico's profits are very significant, with up to $29 billion in liquid cash. It was a very profitable investment when I bought this company for $50 million. Geico was founded in 1936 by a government employee who previously worked for USAA. He made a profit in the first year, made more in the second year, and the company grew and successfully went public. This is how the auto insurance industry started to grow. No one likes buying insurance, but everyone likes driving, making auto insurance a necessity. The development story of Geico is very interesting, growing threefold in a few years, going off track at one point but eventually getting back on track. We talk about Geico-related issues almost every year at the annual meeting. Buffett specifically mentioned Geico's CEO Todd Combs. He said that Combs did an excellent job in this transformation. He successfully turned the situation around in this subsidiary. The once seen as a disadvantage, "telematics," is no longer a competitive disadvantage. Combs also significantly streamlined the company's personnel structure, cutting thousands of positions, which played an important role in improving efficiency. 22:04 Question Eight at the shareholders' meeting: Can patience be broken in investing Someone asked, is it sometimes possible to be impatient in investing and break the rule of patience? Buffett said that sometimes you have to act quickly. Berkshire has made a lot of money by being willing to act quickly. You do not want to be patient in significant transactions. Buffett said, "When a good opportunity arises, you should not be patient at that time. You should be patient waiting for those occasionally appearing opportunities. But for reasonable trades, you shouldn't hesitate. For talk that will never come to fruition, you shouldn't sit patiently and listen." 22:00 Question Seven at the shareholders meeting: Are you pessimistic or optimistic about the changes happening in the United States The questioner stated that Buffett has always had great faith in the long-term advantages of the United States, but today the country seems to be undergoing unprecedented, almost "revolutionary" changes. As an investor, how do you assess the current situation, should you remain optimistic or pessimistic? In response to this question, Buffett answered that the questioner is a new generation of investors. In Berkshire's annual manager's reports, there is usually no commentary on these macro-level issues. However, he could say that the United States will not undergo the kind of drastic "revolutionary" change. Buffett said that the United States was once an agricultural country, and later, society changed, and the economy performed very well. It was a time dominated by men, but there was revolutionary reform, amendments made, and women got equal opportunities. "I said that we originally started out as an agricultural society. We started out as a society full of hope, but we didn't live up to our promises. We have always been changing. We always find a lot of criticisms in this country, but the luckiest day of my life is the day I was born because I was born in America." Buffett said that from 1920 to today's changes, from 1776 to now, we have done a lot, but it took a long time. I'm lucky to be born in America, where almost everything happened when I was born, but now it's different. As a male born in the United States, I am very luckyit's not easy, but the United States has changed. "We've gone through economic depression, world wars, and the development of atomic bombs that I couldn't even dream of when I was born, so even if it seems like we haven't solved all the problems that come up, I wouldn't be discouraged. If I were born today, I would negotiate in the womb until they let you go to America." From 1930 to now, we have been through a lot, like the Great Depression, two world wars, and the tension brought by atomic bombs. These are the experiences we have had along the way. We are a very lucky country, and I am too.A very lucky person. I think being born in the United States is much luckier than being born elsewhere.21:52 Shareholders meeting sixth question: Why did Berkshire invest in the hot dog company Portillo's? Someone asked why Berkshire acquired the Chicago hot dog chain Portillo's, and Buffett replied that he doesn't know much about Portillo's. He joked that maybe someone else secretly invested in it. Buffett then went on to tell a story about Jay Pritzker. Jay, a relative of Illinois Governor JB Pritzker, bought a chocolate company in Brooklyn decades ago. Buffett referred to Jay as a very outstanding manager. Abel clarified that Berkshire does not own Portillo's. In fact, the company is owned by an investment company with a similar name to Berkshire. 21:49 Shareholders meeting fifth question: The impact of AI on the insurance industry The question of whether artificial intelligence (AI) can change the insurance industry was first answered by Berkshire's insurance business head Jain. Jain said that people have invested a lot of time and money in AI. AI will be a tool to change industry rules. AI technology may "truly change" the way the insurance industry currently evaluates, prices, and sells risks, as well as the current claims process. However, Jain pointed out that Berkshire will not be the first to adopt AI in the industry, taking a more cautious approach to any high-profile new technology claims. Jain said, "Of course, I also think that people will eventually invest a huge amount of money to pursue the next new trend," he said. "We are not good at being the fastest or the first to act. Our approach is more about observation, until the opportunity is specific, we have a clearer understanding of the risks and benefits of failure." However, Jain added that once the right opportunity arises, Berkshire will not hesitate to invest. He said, "Currently, some insurance companies are indeed trying AI and trying to find the best way to use it, but we have not consciously invested a lot of money to seize this opportunity. I guess we will be prepared, once the opportunity arises, we will invest quickly." Buffett said he would let Jain decide on Berkshire's insurance business for the next ten years. Whether or not to use AI will be Jain's choice. 21:43 Shareholders meeting fourth question: Challenges of investing in real estate in a globally uncertain environment Asked how to deal with the challenges of investing in real estate in the current globally uncertain environment, Buffett said that real estate investment is more complex and difficult than investing in stocks. Whether it's communication, negotiation, or bargaining, there are many people and factors involved, such as who the owner is, legal structure, funding arrangements, etc. It is really not easy to make a deal in real estate, get a good price, due to the many variables. If you choose to invest in stocks, there is a huge advantage: you can see countless opportunities every second, especially in the US market. On the other hand, real estate transactions are slow-paced and highly dependent on individual communication and negotiation. Real estate investment can be done individually or as a team. At the NYSE, billions of dollars are traded every day, with thousands of unknown investors participating in market activities. You only need a suitable price to trade 20,000 shares of Berkshire stock in 5 seconds. But real estate is not like that. Completing a real estate transaction is not only cumbersome, but also takes a long time. Even if the transaction size today is large, once it enters the negotiation stage, there are many factors to consider and coordinate. Buffett said that Berkshire has also made real estate investments, such as during the 2008 and 2009 financial crisis. He advised: if you want to invest in real estate, you must do it in a smarter and more strategic way to compare and select. 21:35 Shareholders meeting third question: Deployment of Berkshire's huge cash reserves When asked about Berkshire's huge cash reserves, Buffett jokingly said that he stopped investing not to make Greg Abel look good in the future. Buffett is cautious about current investment opportunities. He said he has been looking for investment opportunities, and Berkshire is "opportunistic" as a company, hoping to reduce its cash position, possibly to $50 billion. Buffett said that Berkshire will find opportunities to deploy the record-sized cash of the company, possibly within the next five years. "Occasionally there are very attractive opportunities. But not every day there are good opportunities. It is unlikely to have an excellent trade tomorrow, but not so in five years. We have made a lot of money by not fully investing at certain times." Buffett revealed that Berkshire almost spent $10 billion recently on an investment. "For example, not long ago, we almost spent $10 billion, but now we will spend $100 billion. What I mean is, when a project makes sense to us, we understand it and has good value, making that decision is not difficult." Buffett pointed out that one problem in the investment industry is that things do not progress in an orderly manner. 21:26 Shareholders meeting second question: Japan When asked if he would sell Japanese stocks if the Bank of Japan raises interest rates in the future, Buffett said he would not sell stocks. Buffett said, "In the next fifty years, we will not sell these stocks. The operating history of these Japanese companies is very good," and noted that companies like Apple, American Express, and Coca-Cola have performed well in Japan. Buffett said that investing in Japan fits completely with Berkshire's investment philosophy. The five Japanese trading companies that Berkshire invests in have performed very well in the past, and Buffett intends to continue holding these companies' stocks for fifty to sixty years and hopes to establish long-term and deep cooperation with them. Buffett said that the culture and habits of these trading companies are different from ours, and their business practices also vary, but it is precisely because of this that we value this cooperation. "We will not sell any stocks. It will not happen in decades. The investment in Japan is exactly what we want." Buffett said that Berkshire currently has no plans to sell the stocks of these Japanese trading companies in the short term. They currentlyThe operation is very successful, even though he is now 94 years old, he still thinks so. Berkshire also plans to further expand cooperation.Buffett said that Berkshire's current investment in Japan has reached $20 billion, and he even wishes that the initial investment was $100 billion instead of $20 billion. 21:21 First Question at Shareholders' Meeting: Trade The first question posed to Buffett was about import vouchers, an idea he proposed in a 2003 column aimed at narrowing America's trade deficit. Buffett said, "The design of import vouchers is to balance trade. I came up with the idea for these import vouchers. It has a somewhat gimmicky aspect, but I believe it's certainly far better than anything we're talking about now." Buffett criticized tariffs and trade protectionism, stating that "trade should not be a weapon." He pointed out that the United States went from nothing to an extremely important country. Buffett said, "We should seek to trade with other countries, we should do what we're good at, and they should do what they're good at. The more trade, the better." When answering a question about trade barriers, Buffett said, "You can make some very good arguments that balanced trade would be beneficial for the world. Certainly, trade and tariffs can be a warlike act. I think it has brought some negative consequences, simply by virtue of the attitudes it has engendered." Buffett believes that protectionist policies could have long-term negative effects on the United States, especially after it has become a global leader in industry. He said, "I find that a serious mistake. When you've got 7.5 billion people not feeling so good about you and you've got 300 million in some ways flaunting their successes, I don't think that's wise. And I do believe that the more prosperous and supportive the rest of the world becomes, the better off we will be." We have gone from nothing 250 years ago to being an extremely important country, a situation unprecedented in history. Buffett's speech received applause from the audience. Buffett did not directly mention U.S. President Trump in his speech. 21:00 Opening Remarks for the 2025 Shareholders' Meeting Q&A The shareholders' meeting has begun. Buffett opened the meeting by saying, "This is my 60th shareholders' meeting. There was a thunderous applause in the room. Buffett introduced that this year, 19,700 people attended the shareholders' meeting, setting a record for the number of attendees. At the shareholders' meeting venue, the sales of See's Candies have reached $317,000. The sales of Brooks running shoes was $310,000, and Jazwares toy products sold $250,000. Buffett introduced that a limited edition book commemorating the 60th anniversary of Berkshire's acquisition was for sale at the meeting. This is the only book officially sold by the Bookworm bookstore this year. Berkshire printed about 8,000 copies of the book, which is about 3,000 more than originally planned, and around 4,000 copies have been sold at the meeting venue. This article is from "Wall Street to the See," edited by GMTEight: Li Cheng.