The 2026 Berkshire Hathaway Shareholders Meeting: An 800-Word Highlights Edition

On Saturday, May 2nd Central Time in the United States, the annual investment industry gathering—the Berkshire Hathaway 2026 Shareholders Meeting—was held in Omaha.

The meeting lasted about half an hour, with new CEO Abel discussing multiple hot topics, 95-year-old Buffett seated in the front row speaking, and CNBC conducting an exclusive interview with Buffett.

This was Berkshire’s first “behind-the-scenes” annual shareholder meeting in sixty years under Buffett’s leadership, and also the first public “pressure test” for Buffett’s “successor” Greg Abel.

Having leaders of Berkshire subsidiaries sit on the stage to jointly answer questions with Abel is the most symbolic adjustment at this year’s meeting. This move sends a signal to the outside world: Berkshire’s authority is no longer dependent on personal charisma, but will be built on a more diversified operational system.

Here are the key points summarized by Wallstreet.cn from the shareholders meeting:

1. Buffett on the market:

It’s not the environment we’d ideally like; people’s gambling enthusiasm has never been higher.

The most likely buying opportunity is when everyone else isn’t answering their phones.

The things people discuss and worry about usually don’t happen; instead, sudden black swan events can shake the market.

2. Buffett on the successor:

Abel has done everything I used to do, even more, and he’s doing better in all aspects, so we give this decision a perfect score.

3. Buffett on Apple:

Ten years ago, we bought Apple stock for 35 billion dollars; including dividends, it’s now worth 185 billion, and I did nothing.

Cook succeeded Steve Jobs, creating one of the miracles of American business management.

4. Abel on AI:

AI must benefit our business. We won’t AI just for the sake of AI. We will deploy AI in small, focused ways that create value.

The fake Buffett video played at the meeting highlights the cybersecurity risks brought by AI.

Data center construction and its demand on the power grid present huge growth opportunities for utilities.

The energy costs of data centers must be isolated from regular grid users.

5. Abel on investing:

Reaffirming the core four—Apple, American Express, Moody’s, Coca-Cola—as the foundation of the stock portfolio.

Absolutely collaborating with Buffett on investments.

Investments in Japan’s five major trading companies are long-term strategic, deepening cooperation with companies like Tokyo Marine.

Berkshire’s internal structure is lean and efficient, with cross-group capital allocation capabilities, and will not split or divest subsidiaries.

6. Abel on who his “Charlie Munger” is:

The partnership between Buffett and Munger “cannot be replicated.”

I am surrounded by excellent people, with an excellent CEO team. I will contact them for advice.

7. Ajit Jain, Vice Chairman of Berkshire Insurance:

The Strait of Hormuz underwriting “depends on price,” and U.S. military escort is one of the prerequisites for this underwriting.

AI is unlikely to reach a level where it can weigh in on pricing and claims decisions anytime soon; it will take many years.

If you expect AI to tell you which stocks to buy or sell, I think that won’t happen.

Earlier, Berkshire Hathaway also released its first-quarter financial report, with some key points as follows:

Berkshire Hathaway’s operating profit in Q1 2026 was $8B, up 18% year-over-year. Among them, underwriting profit in insurance increased 28%, BNSF railway subsidiary profit increased 13%, and foreign exchange gains reversed significantly.

Net investment loss narrowed from $5.038 billion last year to $11.35B, driving GAAP net profit up about 120% year-over-year.

Cash reserves in Q1 reached $397 billion, a record high.

As of March 31, 61% of Berkshire’s total stock investments’ fair value was concentrated in American Express, Apple, Bank of America, Chevron, and Coca-Cola.

Below are the transcript highlights of Berkshire’s 2026 shareholder meeting, in chronological order:

First half, co-hosted with Vice Chairman of Insurance Ajit Jain; second half, co-hosted with BNSF CEO Katie Farmer and NetJets CEO Adam Johnson.

At the opening of the annual shareholder meeting, Abel officially retired Warren Buffett’s jersey with the number “60,” as a permanent tribute to the “Omaha Prophet”’s decades of service to the enterprise group. Retiring jerseys is a sports tradition, regarded as the highest honor for athletes.

The jersey hangs high on the ceiling rafters, alongside the late investment master Charlie Munger’s jersey, which bears the number “45,” representing his years of service.

Abel said, “I am very pleased to announce that these two jerseys will hang there forever.”

8:20 PM, 2025 Shareholders Meeting Opening Remarks

95-year-old Warren Buffett took his seat in the front row of the board, receiving warm applause from the shareholders present. This is Buffett’s first time in sixty years not to be the absolute star of Berkshire’s annual shareholders meeting.

The Berkshire meeting opened with a tribute to Buffett. A video montage reviewed precious photos and footage of Buffett over the years, set to the classic tune “Back in Time” by Huey Lewis and the News, interspersed with highlights from past shareholder meetings.

Abel introduced key company personnel in alphabetical order; when he reached Buffett, the audience erupted in applause.

8:45 PM Buffett praises Abel: “CEO choice 100% successful”

Buffett took the microphone again from his seat, once more praising Abel. He pointed out that today marks the anniversary of his announcement that Abel would succeed as CEO.

Buffett said, “This is the best decision we’ve ever made, 100% successful. He has done everything I did, even more, and he’s the right person.”

8:50 PM Buffett praises Apple CEO Cook

Buffett invited the soon-to-depart Apple CEO Tim Cook to stand and acknowledge, echoing Berkshire’s own leadership transition from Buffett to new CEO Greg Abel.

Buffett discussed the enormous pressure Cook faced succeeding Steve Jobs and how he has lived up to expectations and delivered impressive results.

Buffett said:

Think about it—taking over from Steve (Jobs) and surpassing his achievements requires incredible courage. It’s one of the miracles of American business history. Thank you, Tim.

After Steve’s passing, we made an investment decision, putting nearly 10% of Berkshire’s resources into Apple. In fact, that investment has turned into about $185 billion pre-tax, and it was all in Tim’s hands, who turned it into this return.

Earlier this month, Cook announced he would step down as CEO, with Apple hardware chief John Ternus taking over.

9:00 PM Abel explains financial report

Abel stated that, with increasing competition, the insurance market is “becoming more relaxed.” Auto insurance customers are experiencing unprecedented price comparisons.

9:20 PM Abel refuses to follow the trend of betting on AI, continuing Buffett’s investment philosophy

Berkshire CEO Abel on AI: “We won’t AI just for the sake of AI. We will only invest when we see real value. AI must bring substantial benefits to our business. The application of AI offers opportunities for all our businesses.”

Abel emphasized that Berkshire takes a cautious stance on AI application and management, contrasting sharply with other CEOs eager to reshape their businesses around this technology or rebrand accordingly.

He also pointed out that Berkshire will deploy AI in a focused, value-creating manner, while also highlighting the potential risks to “humans,” with the company maintaining high vigilance.

9:40 PM Abel believes data center construction will bring huge growth to utilities

Abel said that large-scale data center expansion and the resulting demand on the power grid are creating significant growth opportunities for utilities.

Using the expansion of massive data centers in Iowa as an example, Abel noted that current energy demand is still well below peak load capacity:

From the peak load of data centers—that is, actual electricity consumption—currently about 8%. Industry experts generally aim for 5% to 10%, and we’ve already reached 8%. Therefore, we expect this ratio to grow another 50% or more over the next five years on this basis.

Abel stressed that isolating data center power costs from regular grid users and ensuring that the electricity-consuming companies bear the costs themselves is crucial. “Large-scale data center operators, data centers, and all kinds of electricity users—must bear all costs themselves.”

During the AI boom, the pressure on regional grids caused by data centers has become a focus of environmental and consumer rights advocacy groups.

9:50 PM Pre-fabricated home builder Clayton impacted by interest rates

Abel said Clayton Homes, a prefab home builder, is under pressure, as potential homebuyers face high mortgage rates and other challenges. This is clearly driven by current interest rate levels. Consumers also face some other difficulties.

Abel said the company’s goal is to provide “affordable housing for Americans,” which drew enthusiastic applause from the audience.

10:05 PM The first question in Q&A: Buffett’s question: Why hold Berkshire long-term?

Shareholders unexpectedly learned a vivid lesson about AI risks at this annual meeting. At the start of the Q&A, Abel played a video featuring a familiar face.

On the big screen, a suited “Buffett” introduces himself and asks Abel: Why should investors hold Berkshire stock long-term?

Hello everyone, I’m Warren from Omaha. Abel, I’ve been watching this company for a while—very long time, an extremely long time. My question is simple. I’m 95 years old, and besides time and cherry cola, I lack nothing. I want to know—just so I can tell my shareholder friends—why they should hold Berkshire’s stock long-term?

Then, Abel revealed the truth: this video was not real footage but a “deepfake” generated with AI technology. He used this opportunity to highlight cybersecurity risks to the shareholders present.

Regarding Buffett’s question about “why investors should continue holding Berkshire stock,” Abel emphasized the company’s enormous cash reserves of $397 billion, which give Berkshire full operational freedom. “We hold cash and U.S. Treasuries, which serve several purposes. We don’t intend to be beholden to anyone.”

Abel reaffirmed Buffett’s long-standing core investment and operational principles.

He told investors that holding cash in the form of U.S. Treasuries, maintaining financial independence, flexible capital allocation, tax efficiency, and being highly alert to the “ABC”—Arrogance, Bureaucracy, and Complacency—remain Berkshire’s top priorities:

We’ve heard countless times that these three poisons—arrogance, bureaucracy, complacency—can quietly erode a company and ultimately destroy it. We will never allow this to happen at Berkshire.

He described Berkshire as a unique enterprise—able to integrate diverse businesses while also possessing the capacity for rapid, flexible capital deployment:

Berkshire is a corporate group, and we are very aware of that. But we are a different kind of corporate group because we can allocate capital very efficiently. We can shift funds from insurance to non-insurance businesses, invest in stocks, or hold cash when we see fit.

Abel pointed out that this deepfake video of Buffett highlights the cybersecurity risks driven by AI:

It’s a good warning for our team. It’s a major risk that runs through Berkshire and that we deal with every day.

Berkshire will focus on using technology to identify cyber threats, especially in the insurance sector.

Abel also emphasized that the production of this Buffett deepfake was done without his participation or authorization.

10:15 PM The first real Q&A question: Given current AI tools, where does human judgment still hold a competitive advantage for Berkshire?

Vice Chairman of Insurance Jain: AI is very popular right now. In insurance and non-insurance sectors, many are rushing in. Clearly, if AI really becomes what people expect, it will be a huge game-changer.

Currently, we see AI used as a productivity tool—reducing labor costs and automating routine, repetitive tasks. I don’t believe AI can yet make decisions on pricing or claims that require weighing options. That will take many more years.

And I tend to be skeptical. If someone tells me they can solve that problem, I’d be surprised. So, if you’re hoping AI will tell you which stocks to buy or sell, I think that won’t happen.

Jain said that a few weeks ago, when he was with Abel, they discussed this issue, and Abel immediately called his team to a conference call, mentioning the cyber risks they had already discussed.

Then they quickly mentioned how, in the entire insurance business and in our very focused approach to building and managing code, they could improve efficiency. They immediately brought this up. As you mentioned, how to become more efficient. They also shared a very good example.

My point is, if we look at a risk, and let traditional underwriters handle it, we might only focus on the top five risks. Your team pointed this out.

Now, we can be quite fast—focusing on those big risks, but also using technology to see other risks quickly. We might then pay attention to another 15 risks and have strong judgment about them.

10:20 PM The second question: How to balance patience and action?

Question: As a young investor navigating uncertainty and rapid technological change, I often find it hard to balance patience and action. How do you personally distinguish between the two?

Answer: One of Berkshire’s greatest strengths is patience and disciplined capital allocation. Over time, opportunities will always arise for you. That doesn’t mean there are no opportunities now, but it also doesn’t mean you need to deploy all your capital or spend everything right now.

That’s exactly how we operate daily. We recognize that we hold a large amount of cash and U.S. Treasuries—assets that are a huge opportunity for us. When you feel an opportunity has a strong value proposition, that’s the moment. When will we see these?

We’ve articulated our investment philosophy, which emphasizes understanding deeply what we invest in. We want to have a profound understanding—you mentioned technology and the rapid pace of change. I always start from that point, and I know Berkshire has always done the same: Do we understand this business? Do we understand this opportunity? More importantly, do we understand the risks involved?

Then, we want a very clear view of the economic prospects over the next 5 or 10 years. Yes, the next year is important, but we don’t invest just for one year. We must have a long-term view of the opportunity’s trajectory. We also go further—we will hold these investments forever.

So, we think: We want a strong view of the management team there, that they are capable and operate with high integrity. But most importantly, the value must first justify deploying our capital. We’re not in a rush to invest in subpar opportunities.

We want to know it fits our principles, then, as I said before, we act decisively—quickly and with large capital.

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10:25 PM The third question: How to balance supervision of wholly owned subsidiaries and stock investments, and how to view the large stock portfolio

Question: Abel, considering your background as an operator, this differs from Warren’s background as a public market investor. Can you share how you balance your time between supervising wholly owned subsidiaries and the current $288 billion stock portfolio? Also, compared to Warren’s historical approach, will your operator perspective change how you evaluate new investment opportunities?

Abel shared new insights on how he views Berkshire’s large stock portfolio, emphasizing a concentrated investment strategy anchored by a few core holdings.

He called Apple, American Express, Moody’s, and Coca-Cola the “core four,” seeing them as the foundation of Berkshire’s stock investments. He also highlighted the company’s large holdings in Japan’s five major trading companies, considering them another key pillar of the portfolio, and reaffirmed a long-term commitment to these companies. Besides these core holdings, Abel also pointed out other significant investments, including Bank of America, Chevron, and Alphabet. Berkshire bought about $4 billion worth of Alphabet stock in Q3 2025.

Abel said he will take a more active role in managing investments, adjusting or adding to positions as appropriate. He added that he is working “full force” with Buffett on investment decisions.

Abel: I’ve managed various businesses at Berkshire Energy for years, then served as Vice Chairman of non-insurance operations. Fortunately, Jain and I have held these great roles for the past 8, now 9 years. But this has created a very important opportunity for me to understand these businesses.

As I’ve mentioned, we have excellent businesses and leadership, but opportunities still exist there. It’s a reminder that I will spend some time on these businesses, ensuring capital is allocated reasonably, risks are considered, and operational excellence is encouraged. Because, look, as an internal operator, it’s easy to look at internal metrics and convince yourself you’re doing well, but you must look outward—what do customers see and feel? What are competitors doing? I believe that’s where operational value can be added.

I’ve mentioned giving Adam Wright more responsibilities, or him taking on more roles across 32 businesses. He will bring excellent operational knowledge, and we also have the insurance team.

Now, regarding the stock portfolio and time allocation: we still see huge opportunities in deploying capital from our balance sheet. I shared the size of our cash and U.S. Treasuries. I want to emphasize that, if you look at our current stock holdings, as I outlined in my letter, we have a concentrated portfolio. We emphasize this as “core,” but the best way to describe it is a focused, concentrated portfolio. We have what we call core and concentrated investments.

I highlighted our investments in Japan. Interestingly, if you look at some of the other significant positions we hold, I’d add that we may still be buying or rationalizing positions in these companies. So, the first group I mentioned is just under $200 billion, and we keep it around that level. We now have close to $100 billion, or about $85 billion. Plus, there are other Berkshire investments, like Bank of America, Chevron, Google, totaling another $70 billion. This shows that a large part of our total investments is highly concentrated, and active management of these investments is actually limited—that’s what I want to emphasize.

We also understand those businesses. We understand the management teams. These are all things Warren and I will continue to absolutely collaborate and discuss. You don’t need to talk about them every day, but if something happens in these businesses, we’ll discuss it that week or month. Maybe about their strategic direction, or what we’ve learned. For example, the Japanese companies just reported earnings in the past 48 hours, and Warren and I discussed their results and what we see there yesterday morning. So, these are core holdings, but that doesn’t mean we shelve them or that they are just part of our ongoing focused investments.

Ted manages another $20 billion or so of capital, slightly less than that, but his responsibilities go far beyond that. He helps us with other opportunities, or risk assessment in our businesses. We’re fortunate to have these resources, but considering the management and workload around them, it’s a very manageable portfolio.

As we’ve said, deploying this cash and U.S. Treasuries at the right time is a very significant opportunity, including in stocks, operational businesses we might see, and insurance.

Regarding time allocation: yes, we will spend some time on operations, prioritizing this because we see great opportunities to improve and narrow gaps in operational excellence. We see opportunities within our existing investments—either increasing stakes or adjusting sizes. We also continuously evaluate other market opportunities, whether acquiring a private or public company outright. Similarly, we consider incremental opportunities if we want to own part of a company. These are evaluated in the same way—by looking at economic prospects, as I mentioned, and closely related to the previous answer.

Jain: I really believe that capital allocation and operating businesses are two sides of the same coin. Warren said many years ago that I think makes a lot of sense: “A good capital allocator will be a good operator, and vice versa.”

Abel: When you think about our operating companies, I’ve mentioned before that we have very deep talent reserves. We have outstanding operators who understand their businesses. They know their industries, their customers. Yes, we still have room for improvement. It’s a continuous process—narrowing those gaps. But we have an excellent team there. Whether it’s Jain, myself, Adam Wright, we spend time making sure we’re satisfied with our capital allocation approach, understanding risks, and whether we’re aware of those gaps.

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10:35 PM The fourth question: Patience has opportunity costs—how do long-term investors think about capital allocation?

Question: When patience involves real opportunity costs, how should long-term investors today think about their approach to capital allocation? How do individuals balance patience and action, especially given Buffett’s decades-long track record that has set a standard?

Abel: Returning again to our capital allocation approach and our long-term philosophy, it’s very aligned with our owners and shareholders present here. They have adopted a very long-term approach to investing. We’re fortunate to have this unique owner base in our holdings. And, over the long run, Berkshire will have significant opportunities. This again comes back to patience and discipline in capital allocation. Do we know what will happen tomorrow? Or if that event will occur in three years, two years? But markets will misalign, and that will give us opportunities to act again. That’s where our disciplined approach comes in—knowing what our investment principles are around these activities.

It’s not that we don’t see excellent companies today. We’d love to own many of them. I’d be a little cautious. Over the long term, we’d be happy to hold those companies because they have excellent management teams and outstanding businesses. We evaluate that. I want to say, when you think about the world, that doesn’t mean there are dozens of such companies, but they do exist. But relative to the opportunity, the company’s economic prospects, and the price of associated risks, we’re not interested in buying these companies at that price—whether partial or full ownership. That doesn’t mean the opportunity won’t come in the future.

That’s what we spend time preparing for: first, maintaining discipline; second, being aware of some core opportunities we value or see at the right price. It really comes back to discipline.

You asked how I personally balance patience and action. Again, this aligns with my role, and I’m very fortunate to work with Warren, Jain, and others. We do this because we love and believe in Berkshire. Warren has made a huge commitment to Berkshire, with deep understanding and passion. Based on that, he wants to create something very long-term, including the opportunities it might generate. As for me personally—and I know all of us— we bring the same passion, and we fully intend to do this in a manner consistent with the past.

Jain: You know, insurance is like investing—a game that requires patience. It’s very hard to sit back and do nothing. When I hire people, my usual approach is to tell them directly: Your job is to say “No.” Day after day, you’ll be bombarded with various deals, but your fundamental responsibility is to say “No.” Occasionally, you’ll encounter a deal that hits you like a board—shouting “Money’s coming”—then you come to me, and we decide whether to do it or not.

You know, joking aside, it’s really tough to sit there doing nothing while others are being swept up by brokers and taken to London. I think the real test of success in insurance, and in investing, is the ability to say “No.”

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10:40 PM The fifth question: Providing insurance for ships crossing the Strait of Hormuz

When asked when and how Berkshire will provide insurance for ships crossing the war-torn Strait of Hormuz, Berkshire’s Vice Chairman of Insurance, Ajit Jain, gave a concise answer: “Simply put, it depends on price.” The audience immediately responded with laughter and applause.

Jain said Berkshire is involved in a plan to insure ships crossing the Strait of Hormuz, but no policies have been issued yet. The Strait has been closed or tightly controlled during conflicts involving the U.S., Israel, and Iran. “We’ve participated on a small scale in a plan to insure ships in the Strait, but no policies have been issued so far.”

Jain said that U.S. Navy escort for transit ships would be one of the underwriting conditions. “The plan is still being refined. But if we can secure favorable terms—including underwriting decision conditions and U.S. Navy escort guarantees—we’ve provided what we believe is an acceptable price. But there’s no real progress yet.”

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10:45 PM The sixth question: How to manage Warren Buffett’s investment portfolio?

Question: How do you manage Warren Buffett’s investment portfolio?

Abel: Regarding managing the existing portfolio and its contents, as you mentioned, it was built by Warren, but it’s a set of companies Warren knows very well. And I am very confident I understand these businesses, their economic prospects. So, that’s why, when I write in my letter, I really want to convey a message: yes, we’re very satisfied with these companies, we understand them, it’s a concentrated portfolio, but you know, their businesses will evolve, risks will emerge. So, we will keep evaluating them, but it’s a portfolio we’re very happy with.

Warren has mentioned the remarkable success of Tim Cook at Apple. Warren and Tim recently discussed this, and Warren said he invested in Apple not because it’s a tech stock. He saw what the product was and how much consumers valued it. It’s an extraordinary perspective, but also one I think many of us would apply—very similar.

For example, in the power business, I know a lot—I understand how to generate power, how to transmit it, etc. But am I really that interested in how iPhones are made? Am I curious about where they’re manufactured and the risks around that? I trust our team completely, and when we discuss it more broadly, we review and ask ourselves: do we understand its value and why that product is valuable? That’s really about its value to consumers.

I think we have a unique opportunity, and I’m very fortunate that Warren comes to the office every day. Very fortunate that we can discuss other potential opportunities, bringing different skill sets. But ultimately, we’ll narrow down quickly—what is this opportunity, why is it valuable, why do consumers or users in that industry value that company and product for the long term? And related to that, where are the risks? That’s essentially Warren’s approach, and mine as well.

Regarding our current portfolio, we always know what we’ve invested in. But in terms of understanding the opportunities and risks, we’re very confident in our clear view, and we’re satisfied with our current position.

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11:00 PM The seventh question: Jain and insurance succession planning, Abel’s succession plan

When asked about Jain and his own succession plan, Abel said the board takes such matters very seriously: “They have already developed plans and are continuously discussing them. So, if Jain can’t perform his duties today, or I can’t perform mine, our board clearly knows what actions to take.”

These two succession plans are obviously important topics. Jain joined Berkshire in 1986, and he’s the architect of our insurance business, creating an unparalleled franchise with a strong culture and discipline.

When Warren announced the transition plan last year, the first thing he did was gather the top five managers of our insurance business, sit down, and discuss operations and culture. For me, that was an extraordinary opportunity to expand my knowledge of insurance. I saw very deep management experience and insurance expertise in that team, sharing the same values and culture Jain emphasized.

Maintaining a disciplined culture is challenging. In insurance, telling a seasoned underwriter to “take a few months off” is not easy. But Jain has an excellent team around him, and our board takes succession planning very seriously. We have a well-thought-out plan, and if Jain or I can’t perform, the board knows what to do.

Regarding culture and underwriting focus, I follow some simple rules. The actual decision-makers are very few; the top three underwriters under me have been together for over 35 years. Compensation is fixed salary, not a complex formula that gives individuals upside while Berkshire bears downside risk. We insulate them from market fluctuations, so they can do the right thing with peace of mind.

Over the years, I’ve seen all these compensation plans. I told Warren: “Give me a plan, and I can find loopholes; you won’t see it for many years.” Plus, employees who lose and want to renegotiate, or those who win and want to walk away with everything, pose huge challenges.

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11:05 PM The eighth question: When will Berkshire’s utility companies phase out fossil fuels?

When asked when and how Berkshire’s utility companies will eliminate fossil fuels, transition to renewables, and stop causing irreversible damage to the environment and future generations, Abel responded succinctly: “We operate as stewards of these assets, serving our states and customers. First and foremost, we must comply with current laws, including federal regulations. Our team is committed to compliance and doing things right. We have plans regarding resources and timing for phasing out coal and gas plants, largely driven by state policies. State governments will decide how we operate and how long these assets run, because ultimately, customers bear the costs and risks.”

He cited our Iowa utility, where about 93% of energy comes from renewables, leading nationally and at affordable costs. But we still operate coal plants, which are needed to stabilize the system during peak times, unless they are no longer necessary.

The challenge is that large-scale data centers put significant pressure on the grid. If AI continues to develop, the use of carbon-based generation will increase, adding pressure on the system and the industry as a whole.

01:20 Abel returns to stage, hosting the afternoon session of the shareholders meeting

Greg Abel returns to the stage at CHI Health Center in Omaha, Nebraska, to host the Berkshire Hathaway annual shareholders meeting afternoon session.

Accompanying Abel are BNSF CEO Katie Farmer and NetJets CEO Adam Johnson.

01:25 The ninth question: How does geopolitics affect Berkshire subsidiaries?

Question: How has the current Middle East geopolitical situation impacted Berkshire’s subsidiaries?

Abel: It indeed affects all our businesses in various ways. But I am most proud that we operate with a long-term perspective. When the phone rings, you know challenges will come, but that’s okay. We explore, we work hard, and we always find ways to overcome. Regarding the Iran conflict and Middle East tensions, I see our team taking the same attitude: this is the reality we face. What’s the best solution for our customers? How can we continue to serve them as we have in the past?

I mentioned the LSBI pipeline’s anti-foaming agent; they usually don’t sell much to the Middle East, but when they start trying to solve this challenge, a lot happens. That doesn’t mean our business isn’t directly affected. Our chemical group’s input costs have actually doubled in a short period. Over time, prices will adjust based on our contracts, and the situation will rebalance. In terms of managing our operations, we’re really just working hard and operating long-term.

BNSF CEO: Railroads are a very good reflection of industrial and consumer economic conditions because our loadings cover a wide range of bulk commodities. We see several impacts from the Middle East conflict. Supply chain disruptions have created opportunities for some commodities—aggregates, steel, etc., with increasing demand. Our largest segment is intermodal, which has become more competitive as fuel prices rise. But overall, if fuel prices stay high long-term, it will impact consumer demand and affect all our businesses.

Yes, we’ve seen some effects. Some large retailers say consumers are now making choices about what to buy. If fuel prices stay high for a long time, I believe we’ll see that impact ripple through our business.

NetJets CEO and President of Consumer Goods & Retail Adam Johnson noted that rising costs, including oil prices reaching $100 per barrel at times, have begun to suppress demand in some areas:

In consumer goods and brick-and-mortar retail, demand has indeed been affected.

While acknowledging these pressures, Johnson said his businesses are accustomed to seeking responses amid volatility. We’re prepared for these situations and will adjust as needed. But it’s definitely impacting some retail and consumer goods segments.

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11:35 PM The tenth question: How does Berkshire’s decentralized model operate? How does BNSF stay competitive?

Question: Berkshire’s system relies on decentralization. Each manager runs their subsidiary as CEO. Which operations need more oversight, and how do you handle underperforming managers? BNSF’s profitability lags behind competitors—how will it maintain a competitive edge against rivals and new technologies?

Abel: I emphasized the decentralized model, risk discipline, and capital allocation. We have a group of outstanding leaders and companies; they are closest to their customers. If they think like owners, we’ll get very good results across the entire group.

But decentralization doesn’t mean we’re not responsible. Autonomy means you must accept that with great responsibility and pride in doing things right. We have high expectations—are they managing risks? Do they see themselves as chief risk officers? Are they good at allocating capital? If we see poor performance or bad decisions, that’s when we step in and discuss.

BNSF CEO: We fully understand that continuing to push for efficient operations, maintaining competitive cost structures, and narrowing the profitability gap with competitors are critical.

In 2025, our top priority was improving train efficiency. Improving single-car networks frees resources, creates capacity, and allows fewer assets to handle more freight. In Q1, we moved more freight than last year’s Q1, but with 260 fewer locomotives.

The second focus is on our technology transformation. We’re attracting data scientists and operations researchers to work with our network operations center, developing digital twins and providing predictive ETA for customers. Our fuel efficiency hit a record in Q1.

Regarding competition with trucks, among all railroads, we have the largest intermodal network. We now operate most trains with only two people instead of five. But we also need permission to innovate and support regulations that allow railroads to compete with trucks.

NetJets CEO: I returned on June 1, 2015. I asked myself: how many truly understand our business on both ends? NetJets is complex—we fly to thousands of airports in 150 countries. I didn’t like that answer; it was too few.

From there, we started rebuilding the culture. I remember preparing for my first board meeting, talking about growth. Abel kindly pulled me aside and said, “Why don’t you let Warren worry less and focus on reducing debt first?” That was a lesson I remember well.

We talk about safety and service. Warren, after becoming a customer, acquired NetJets in 1998, and he said: “I want safety, I want service.” We’ve been very focused on making sure everyone stays on that track. That’s largely why we’ve been able to pay down debt, return cash to Berkshire Hathaway, and be a leader in the service industry.

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11:50 PM The eleventh question: How do tariffs impact the portfolio?

Question: Does Berkshire Hathaway consider seeking tariff relief or compensation plans for its wholly owned operations facing import costs? How significant is this impact across the portfolio?

Abel: The impact of tariffs on our entire portfolio is very similar to the discussion on Middle East tensions. We experienced this during our first term in government and learned lessons, so we’re better prepared. That’s about working hard ourselves. We’ll find ways to serve customers—through direct contracts or products we produce—to recover these tariffs. Our team is doing a great job handling this. There are many issues to clarify, and we’re not actively seeking these.

BNSF CEO: No compensation has been sought, but I’ll say a few words about tariffs. In early 2025, we saw some customers ship early before tariffs took effect, increasing freight volume. Then, in late 2025, things stabilized, and by 2026, our customers had adapted and adjusted to tariffs. That said, it does bring some uncertainty. From a planning perspective, it’s very difficult for our customers, causing some capital to hold back on manufacturing investments. The uncertainty around tariffs is the real impact we see on our customers.

NetJets CEO: I’ll use Berkshire Hathaway Automotive as an example. Its new car sales this year are slightly down compared to last year, partly due to tariffs. The problem is, tariffs change daily, and understanding that “bouncing ball” itself is a task.

Among our 32 consumer, service, and retail companies, the average age is 88 years. When I call those CEOs, they say: “We’ve dealt with tariffs for 100 years.” Think about the past seven or eight years—dealing with the global pandemic, four decades of record inflation, and now the “bouncing ball” tariffs. Companies have done very well managing these issues, and I believe our future position looks quite good.

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11:55 PM The twelfth question: Japan portfolio

Question: Berkshire’s investments in five Japanese trading companies are passive, made at good prices, financed in yen, and involve good businesses. Your deal with NYK is very different—a ten-year joint M&A and reinsurance partnership. This is an unprecedented level of operational integration for Berkshire internationally. What does this look like in practice? Does it signal that under your leadership, Berkshire will shift toward more active international partnerships?

Abel: The work with NYK has been excellent. I’ve laid some groundwork, saying this is a strategic relationship, not a financial transaction. We like our 2.5% stake in NYK, which will be a long-term investment. It’s similar to our other five investments in Japan; we truly believe they are forever because it’s more about the relationship we want to build there than just the investment itself. You’ll continue to see this, as detailed in the underwriting opportunities, where we share risks and rewards—effectively representing about 2.5% of their books. Again, it’s partly a financial transaction, but it also involves a lot of trust.

The third point is that the partnership emphasizes various aspects of how we want this relationship to develop, which is still evolving. We want it to develop naturally. The partner shares our culture and values, so there’s no doubt it will be excellent for many years. But regarding seeking outright acquisitions in insurance or other areas, that will develop over time—something Jain and NYK’s senior management will discuss. If such opportunities arise, we’ll be very