Berkshire Hathaway (BRK.A, Financial) opens its annual meeting in Omaha on Saturday amid a historic leadership transition, as shareholders prepare for a rare glimpse of the company's future beyond Warren Buffett (Trades, Portfolio).

Last year's gathering was the first without vice chairman Charlie Munger. This year, attention turns squarely to 94-year-old Buffett, whose decades-long stewardship has reshaped Berkshire from a textile mill into a global conglomerate.

Investors will focus on Buffett's successor, Greg Abel, and whether the company's famed decentralised “trust the managers” model can endure without its co-architect. Questions also loom over how deputies Todd Combs and Ted Weschler will steer investment decisions.

A key test lies in Berkshire's capital allocation discipline. Will the next generation uphold Buffett's patient approach, or shift toward dividends as some shareholders have urged?Culture preservation will be under scrutiny. Berkshire's informal ethos—built on autonomy, rationality and owner-like management—faces its toughest trial as the Buffett era winds down.

Buffett's hypothetical portfolio climbed alongside the S&P 500, peaking in late January at roughly +7% vs. the S&P's +8–9%. Through February, both hovered near break-even, with brief pop-ups and give-backs. A sell-off in early March saw the S&P fall to about –5%, while Buffett's holdings dipped slightly deeper to –7%.

The rout intensified into early April: the S&P bottomed near –15%, Buffett's basket plunged to nearly –18%. By April 28, both staged a rebound, with the S&P back to around –5% and the portfolio to –7%. The two lines track tightly, underscoring Buffett's portfolio correlation with broad market swings. Yet in downturns, Buffett's assumed mix shows a modestly higher beta—suffering slightly steeper losses and a slower recovery.

Berkshire's massive cash balance—exceeding $170 billion in U.S. Treasuries—will test the new leadership's willingness to deploy capital aggressively or conserve cash amid market uncertainty.

Shareholders will listen for clues on how Abel and team plan to navigate rising geopolitical risks, including trade tensions with China, and potential investment opportunities in AI and renewable energy.

Beyond the questions facing Berkshire, this meeting represents an inflection point for corporate governance globally, spotlighting succession planning at a blue-chip institution.

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