10 Questions That Should Be Asked at Berkshire's Annual Meeting(Part 1)

Berkshire is unlikely to get through the COVID-19 pandemic and subsequent recession unscathed, so questions need to be asked.

Greggory Warren, CFA 10 June, 2020 | 9:00
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Wide-moat-rated Berkshire Hathaway’s (BRK.A)/(BRK.B) annual meeting this weekend will be a significantly smaller affair. Earlier changes to the format on Berkshire’s part, as well as the constraints imposed by the coronavirus pandemic, will result in no shareholders in attendance in Omaha and just CEO Warren Buffett and Greg Abel (vice chairman of the noninsurance business operations) taking questions from the three journalists who have historically run shareholder questions by Buffett and vice chairman Charlie Munger.

The traditional analyst panel has been waylaid, but given all that has taken place this year, we believe hearing answers to the panel’s questions would have been insightful, especially since there is so much unknown about the impact that the COVID-19 pandemic and subsequent economic shutdown will have on many businesses and industries, let alone Berkshire’s own operations. At the very least, we expect that the company’s results will be affected in the near term by historically low interest rates, increased credit and equity market volatility, and a deep recession that could take some time to crawl out of. Following are 10 questions we would like to ask.

Question 1: Is Berkshire’s preferred model for acquisitions keeping it from doing deals?

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Greggory Warren, CFA  Greggory Warren, CFA, is a senior stock analyst with Morningstar.

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