Berkshire Hathaway's annual shareholders meeting opened in Omaha on Saturday, marking a major turning point not seen in 60 years. What drew attention was Warren Buffett finally stepping back from the spotlight, with CEO Greg Abel taking the lead in hosting the Q&A session for the first time.

This is actually a highly symbolic moment. Although Buffett, at 95, took his seat as chairman, Abel took control of the proceedings, with top managers from BNSF Railway and NetJets lined up on stage. In other words, Berkshire's authority is no longer dependent on individual charisma but is shifting toward a more decentralized management structure.

Looking at the first quarter results, operating profit increased 18% year-over-year to $11.3B. Notably, underwriting profit in insurance rose 28%, and BNSF Railway also recorded a 13% growth. Most strikingly, cash reserves reached an all-time high of $397 billion, signaling that Berkshire is preparing for its next major investment opportunity.

Abel's portfolio strategy is also intriguing. He calls Apple, American Express, Moody’s, and Coca-Cola the "Core 4," positioning them as the central focus of concentrated investments. Additionally, he emphasized investments in Japan’s five major trading companies as a key pillar. In other words, while inheriting the fundamental principles of Buffett’s portfolio, Abel is adding his own perspective.

His stance on AI is also symbolic. Abel explicitly stated, "We will not pursue AI for the sake of AI," maintaining a value-oriented investment philosophy that resists trends. Immediately afterward, a deepfake video of Buffett was shown, sparking serious discussions about cybersecurity risks associated with AI. This was not just entertainment but a deliberate effort to make shareholders aware of real threats faced by modern companies.

The depth of the management team is also noteworthy. Abel mentioned, "We are surrounded by wonderful people," emphasizing the strong collaboration with talented managers like Jane, Johnson, and Farmer. Succession plans are clearly in place, and the board is aware of the key leadership transitions.

Regarding tariffs and geopolitical risks, each subsidiary is adapting and responding accordingly. While uncertainties remain, Berkshire’s decentralized organizational structure provides resilience against such challenges.

Ultimately, this year's shareholders meeting demonstrated both the continuity and evolution of Buffett’s portfolio. The new CEO respects his predecessor’s legacy while adding his own operational perspective. With $397 billion in cash and U.S. Treasuries, Berkshire’s stance of waiting for the next big opportunity remains unchanged. When markets face imbalance, how this cash reserve functions will be the most closely watched aspect for investors.