I always look forward to the first Saturday in May…
And not just because of the Kentucky Derby—it’s also when Warren Buffett hosts the Berkshire Hathaway annual shareholders meeting.
I first made the trek to Omaha in 2014 to attend the meeting. If you’re a shareholder and haven’t been, I highly recommend it, especially since Buffett is turning 93 this year and his partner Charlie Munger is turning 99 next year. Sadly, time is ticking if you want to see the duo in action.
As always, this year’s meeting was full of great information. Yes, Berkshire is a huge insurance company with a massive investment portfolio. But inside Berkshire, there are huge operating businesses, and the performance of those businesses provides a great overview of how the US economy is performing.
In short, if the economy is doing well, Berkshire is likely doing well.
While the insurance and investment segments are in great shape, the operating businesses are where Buffett expects things to slow.
This all translates to Buffett saying we’re in (or are soon to be in) a recession.