The turning point for Berkshire Hathaway has finally arrived. At the shareholder meeting in Omaha last weekend, Abel, as CEO, took charge of the entire event for the first time, but this was not just a simple generational change; it felt like an event signaling a major shift in the investment world.

For the first time in 60 years, Buffett stepped back from the spotlight. But he hasn't disappeared completely; he's still present at the venue as chairman, in a perfect position. This actually clearly indicates a move toward a more diversified management team. Jane from insurance, Farmer from railroads, Johnson from NetJets—all lined up on stage. I think this shift away from relying on individual charisma is an important signal.

Looking at the numbers, Q1 operating profit increased 18% year-over-year to $11.3 billion. Insurance underwriting profit rose 28%. But what caught the most attention was the cash reserve—$397 billion, a record high. Having such a war chest sends a message that the company will wait until big opportunities come to the market. In fact, Abel also said, "Opportunities will surely come; there's no need to use everything now."

The discussion about the portfolio was also interesting. Apple, American Express, Moody’s, Coca-Cola, and Japan’s five major trading companies. He explicitly stated that the focus on these holdings remains unchanged. But he was cautious about AI. "We won't pursue AI just for the sake of AI," he said firmly. The use of a deepfake video of Buffett to warn about cyber risks shows a clear distinction from tech companies.

Geopolitical uncertainties, tariff issues, the surge in data center demand, and the cooling housing market due to rising interest rates—each subsidiary faces many challenges. But what I sensed from Abel’s tone is that Berkshire Hathaway as an organization has a structure capable of flexibly adapting to these environmental changes. There are no bureaucratic hierarchies; each business unit can make quick decisions. This is a strength that sets it apart from other conglomerates.

The succession plan also seems to be clearly in place. Jane’s team has five talented managers, so there’s no concern about continuity in the insurance division. The approach is to strengthen individual business units rather than creating a layered organization. I think this directly inherits the culture Buffett built.

Personally, I feel that Berkshire Hathaway’s cautiousness and patience are actually rare qualities in today’s market. While many CEOs are riding the AI boom, Berkshire only invests when value creation is expected. And holding $397 billion in cash is a powerful advantage. When big opportunities arise, their ability to act will be completely different. The reason for holding long-term positions in Berkshire Hathaway’s stocks is probably right here.