This year, Berkshire Hathaway’s annual meeting in Omaha will attract as many as 40,000 participants. It is dealing with a big challenge at a time of increasing political tensions across the globe. The virtual event has a lot more in store, but you can expect amazing insights from legendary investors Warren Buffett, Greg Abel, and Ajit Jain. Fears of international mobility loomed large over the gathering amid continued distrust between the United States and the global community.
Warren Buffett, who at 94 years old is the most revered investor in history, has been aware for years of this rising international tide at Berkshire’s annual meeting. In that time, this acknowledgment has grown by leaps and bounds. It especially did a 180 in 2009, when Buffett and his long-time partner, Charlie Munger, ceased holding special receptions for foreign invitees. Buffett cited the record growth of international visitors as the justification for this move. “As we are expecting a record number of international visitors this year, we’ve decided to remove this option,” he said. “I can assure you, we’re happy to have every single one of those international visitors.”
Since Donald Trump first lobbed a global trade war, the world has changed in unimaginable ways. Our tensions with other nations, including China, have increased in response. Recently, China issued a risk alert for its tourists traveling to the U.S., raising concerns about safety and treatment abroad. This ominous backdrop has understandably made prospective attendees wary about committing to making the trip.
Chinese investor Xin Jin can’t wait to get back to Omaha. He poured half of his net worth into Berkshire stock in 2012 and now that he has every reason to be excited, he has some doubts. I don’t know about you, but I really want to be in Omaha this year. I have great respect for Buffett, and he really gets into my heart,” he said. This sentiment was shared by most of the international investors present who were thankful for the opportunity to hear directly from one of the world’s greatest business leaders.
Yet, many foreign investors are uneasy about going to this year’s meeting. A consumer-focused Chinese investor from Shanghai, who has previously attended three times, chose to stay home due to the current hostile political environment. In much the same way, an ASEAN shareholder from Jakarta chose not to travel, noting “harassment and baseless customs troubles” as a reason for her withdrawal.
The Q&A session at the annual shareholder gathering will be broadcast live on CNBC. It will be accessible through a multilingual webcast in English and Mandarin, greatly increasing reach and minimizing barriers international attendees might encounter. David Kass, a finance professor, has historically held private lunches with Buffett for his students on occasion. He noted a sea change in the demographics of those shareholders. He noted that in just the last few years, he has seen a huge change in shareholder makeup. This time, many more international investors have joined the fray for the first time, and their composition is overwhelmingly very young.
Fewer third-party agencies are arranging trips to Omaha this year. This meeting reflects the timeless draw of Berkshire Hathaway even as it exposes the challenges created by a world in flux.
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