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    Berkshire Hathaway operating earnings soar 39% as Buffett’s cash hoard swells to record $188 billion

    The Warren Buffett-led conglomerate posted an operating profit — which encompasses earnings from the company’s wholly owned businesses — that surged 39% to $11.22 billion from the year-earlier period.
    That gain was led by a 185% year-on-year increase in insurance underwriting earnings to $2.598 billion from just $911 million.

    Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024. 
    David A. Grogen | CNBC

    Berkshire Hathaway reported Saturday a huge year-over-year increase in operating earnings in the first quarter, while its cash holdings bubbled to record levels.
    The Warren Buffett-led conglomerate posted an operating profit — which encompasses earnings from the company’s wholly owned businesses — that surged 39% to $11.22 billion from the year-earlier period.

    That gain was led by a 185% year-on-year increase in insurance underwriting earnings to $2.598 billion from just $911 million. Insurance investment income also swelled 32% to more than $2.5 billion.
    Berkshire’s railroad business raked in $1.14 billion in profit, down slightly from the first quarter of 2023. Its energy division saw earnings nearly double to $717 million from $416 million a year prior.
    First-quarter net earnings, which include fluctuations from Berkshires stock investments, fell 64% to $12.7 billion. Buffett calls these unrealized investing gains (or losses) each quarter meaningless and misleading, but the unique conglomerate is required to report these numbers based on generally accepted accounting principles.

    Record cash hoard

    The company’s cash hoard reached a record high of $188.99 billion, up from $167.6 billion in the fourth quarter. That massive holding, well above a CFRA Research estimate of more than $170 billion, points to Buffett’s inability to find a suitable major acquisition target — which he has lamented in recent years.
    The report comes ahead the company’s annual shareholder meeting, known as “Woodstock for Capitalists.” Buffett will answer questions from shareholders on everything ranging from the conglomerate’s holdings as well as his thoughts on investing and the economy.

    This will also be the first annual meeting since the death of Vice Chairman Charlie Munger in November.
    Year to date, Berkshire Class A shares are up more than 11%, reaching an all-time high in late February. The Class B stock, meanwhile, has gained more than 12% in that time.
    Check out CNBC’s full coverage of this year’s annual meeting here. More

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    Warren Buffett’s Berkshire Hathaway cut Apple investment by about 13% in the first quarter

    Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024. 
    David A. Grogen | CNBC

    OMAHA, Nebraska — Warren Buffett’s Berkshire Hathaway cut its gigantic Apple stake in the first quarter as the “Oracle of Omaha” continued to downsize his one-time favorite bet.
    In its first-quarter earnings report, Berkshire Hathaway reported that its Apple bet was worth $135.4 billion, implying around 790 million shares. That would mark a decline of around 13% in the stake. Apple was still Berkshire’s biggest holding by far at the end of the quarter.

    This is the second quarter in a row that the Omaha-based conglomerate has trimmed the stake in the iPhone maker. It sold about 10 million Apple shares (just 1% of its massive stake) in the fourth quarter. This filing, when accounting for the change in Apple’s stock price, would imply Berkshire sold about 116 million shares.
    Buffett became a big fan of Apple after one of his investing managers Ted Weschler or Todd Combs convinced him to buy the stock years ago. Buffett even called the tech giant his second-most important business after Berkshire’s cluster of insurers.

    Stock chart icon

    Many has speculated that the 93-year-old investing icon reduced his favorite stake due to valuation concerns. Apple’s stock gained a whopping 48% in 2023 as megacap tech shares led the market rally. At its peak, Apple ballooned in Berkshire’s equity portfolio, taking up 50% of it. The shares are trading at more than 27 times forward earnings.
    Shares of the iPhone maker got a big boost in the past week after the firm announced that its board had authorized $110 billion in share repurchases, the largest in company history. However, Apple posted a decline in overall sales and in iPhone sales. The shares are down more than 4% so far this year amid concerns about how it will revive growth.
    It’s not without precedent that the Berkshire CEO would adjust the Apple bet. He sold a bit of the stock in the fourth quarter of 2020, but Buffett admitted then that it was “probably a mistake.” Also it’s not usual for Buffett to trim a position that has grown so large.
    Even with the sale, Berkshire is still Apple’s largest shareholder outside of exchange-traded fund providers. More

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    Star Wars was the first Lego license — 25 years later, it’s stronger than ever

    Disney’s Star Wars and Lego are celebrating 25 years of partnership.
    The team-up was the first time Lego had struck a licensing deal and became a framework for other franchises.
    Since 1999, Lego Star Wars has grown to become its own universe, with video games, apparel and more.

    Star Wars Lego models are seen at the Bricks & Figs museum in Krakow, Poland, on April 15, 2023.
    Anadolu | Anadolu | Getty Images

    If you are a Star Wars fan, Jens Kronvold Frederiksen may have crafted your childhood.
    A design director at the Denmark-based Lego company, he has spent the past 25 years creating Lego Star Wars sets.

    “I went to my boss and said, ‘Hey, you need me on this product line,'” Frederiksen told CNBC. “For me, it was just like a dream come true. Star Wars and Lego together, two things I love.”
    Frederiksen is not the only one. Since 1999, fans have rallied around the license, scooping up everything from Darth Vader mini figure keychains to $850 Millennium Falcon sets featuring more than 7,500 pieces. The brand has also grown to include half a dozen video games and a slew of animated content on Disney+. It also now has its own home on Epic Games’ popular online game platform Fortnite.
    The Star Wars license was the first of its kind for Lego, which had never created an official product line tied to licensed intellectual property before. In fact, the Jar Jar Binks mini figure was the first ever to feature a custom head sculpt instead of one of Lego’s iconic round faces, Frederiksen said.
    Now, Lego Star Wars has become a blueprint for the company’s other brand deals — think Harry Potter, Batman and Marvel’s Avengers.
    “We were creating themes, but we weren’t always necessarily connecting those with the deeper story,” said Jill Wilfert, head of global entertainment partners and content at Lego. “And I think for us really seeing that unlock, and how it really allowed people to open up their imaginations in a different way and express their creativity in a different way, is I think what Star Wars did for us.”

    Wilfert, who has been with Lego for 36 years, said there was a lot of trepidation at Lego prior to the Star Wars deal about doing any kind of third-party licensing.
    “Once we saw how well it translated and how people responded to it, it really did give us more confidence,” she said.
    The Lego Star Wars collaboration came at a time of financial turmoil for Lego. In the early 2000s, the company was dealing with high debt, stiff competition from digital gaming platforms and a portfolio that had become too diversified. Lego was on the brink of bankruptcy.
    Strong sales of Lego Star Wars as well as the Lego-owned Bionicle franchise helped keep the company afloat while it reduced its product lines and shut down noncore businesses. In 2005, the company launched a Lego Star Wars video game.
    “It’s been hugely successful and continues to be successful today as a gaming franchise,” said Paul Southern, senior vice president of third-party commercialization and franchise development at Disney. “It created the world.”

    A Force in the toy aisle

    Two decades later, Lego Star Wars remains one of the top-selling brands for Lego and the company sees strong sales even when there are no new theatrical releases tied to its product.
    The privately held company provides biannual glimpses at its balance sheet. In March, Lego reported that it grew sales 2% in 2023, even as the global toy industry saw sales slip 7%, according to data from Circana.
    The toymaker once again cited Lego Star Wars as a driving force behind those sales. Lego Icons, Lego Technic, Lego City and Lego Harry Potter also performed well.
    Although it was a smaller gain than previous years — the company saw overall sales jump 27% in 2021 and 17% in 2022 — Lego has continued to snap up market share in the toy industry. Much of that has to do with the fact that brands such as Lego Star Wars appeal to multiple demographics and generations.
    Lego sells sets at a variety of price points and difficulties, allowing kids to put together smaller, less complicated models and act out scenes from the franchise, while hardcore collectors can build more detailed replicas of their favorite ships, helmets and movie moments.

    A man looks pleased with his purchase of a Lego Star Wars landspeeder during Bricktastic 2024 at Manchester Central in Manchester, England, on Feb. 24, 2024.
    Shirlaine Forrest | Getty Images Entertainment | Getty Images

    The evergreen nature of the franchise is key. Lego can draw on nearly 50 years’ worth of content to delight consumers of all ages.
    “The main thing for us, of course, is that this is for kids,” Frederiksen said. “The model should be really fun and creative and inspiring to play with, but it should also be a great building experience.”
    That is why Lego takes some creative freedom with the sets that it offers. For example, an Imperial Shuttle is almost completely white. However, giving customers a pile of white bricks would make it “impossible to find the pieces and would not be a fun building experience,” he said. So, Lego offers some variation in the brick colors and details.
    While Frederiksen is not designing products anymore, he still builds everything. It is important to him to experience how each set comes together.
    To celebrate the 25th anniversary of the Lego and Star Wars partnership, as well as the 25th anniversary of “The Phantom Menace,” Lego is releasing numerous special sets. There is the TIE Interceptor model that retails for $230, a Mos Espa Podrace diorama for $80, a Droideka model for $65 and new BrickHeadz characters for less than $10 each.
    “What we see a lot with properties and with Star Wars, maybe more so than others, is it’s something that families do together,” Wilfert said. “Often, you’re first introduced to Star Wars through a parent, your parents grew up loving Star Wars, and we just see that having things in our portfolio that allow those connections and allow families to connect together, we’re really seeing the relevancy of that.”
    With new digital products such as video games and Fortnite, Lego can engage with younger consumers.
    “We are trying to make sure that we are in relevant places where we know kids are occupying their time,” Wilfert said.

    An even bigger galaxy

    The Lego Star Wars brand has evolved to encompass more than just bricks and mini figures — it has become its own ecosystem, said Southern.
    “The world of Lego Star Wars sits as a separate identity within our overall business, and that makes it very unique,” he said.
    Southern was at Lucasfilm when the partnership with Lego and Star Wars launched. He transitioned over to the Walt Disney Company when Lucasfilm was acquired a decade ago, so he has seen Lego Star Wars’ growth firsthand.
    Part of that growth is the humor that has become associated with the Lego Star Wars brand. This includes slapstick moments in video games and in animated content.
    “We’ve established an ecosystem and a tone of voice that allows us to do things, which, ultimately, are kind of a little bit cheeky, a little bit more fun,” Southern said.

    Lego Star Wars: The Skywalker Saga game allows players to relive the epic narrative of the Skywalker Saga told through the lens of hilarious Lego humor.
    Lego | Warner Bros. Games | Lucasfilm

    And that humor has extended to other franchises.
    “Star Wars, you know, allowed us to really open up people’s eyes to how Lego can create humor and charm to an [intellectual property] that might not exist,” Wilfert said. “We found that most of the IP owners are pretty willing to kind of let us play a little bit.”
    Between video games and animated projects, Lego has worked with franchises such as Harry Potter, Indiana Jones, Batman, Pirates of the Caribbean, Lord of the Rings, Marvel, Jurassic World and Pixar’s “The Incredibles.”
    But it all started with Star Wars, which keeps growing.
    “We’ve taken the passion that the fans and the kids have for that brand and we’ve taken that into other areas,” Southern said, noting, that along with video games, Lego Star Wars can also be found in the publishing section and even in apparel.
    The diversity of product and its strong sales led Disney and Lego to extend their contract for Star Wars through 2032.
    “The relationship has gotten easier because there are people who have been working on both sides all the way through the relationship,” Southern said. “They’re like family now. It’s very frank, it’s very open, very collaborative.”
    The long license lead time allows Disney and Lego to work together on long-term projects such as video games and animation, as well as celebratory sets for major anniversary milestones.
    “We’re celebrating 25 years of working together,” Southern said. “One of the things that is super important, too, is that we expect to be here in another 25 years, celebrating the way we’ve evolved our relationship and made it relevant for the generations to come.” More

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    Warren Buffett’s shopping extravaganza kicks off with Squishmallows pit, ‘Poor Charlie’s Almanack’

    Squishmallows in the images of Warren Buffett and Charlie Munger display at the Berkshire Hathaway Annual Shareholder Meeting at Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    OMAHA, Neb. — Warren Buffett’s annual shopping event, the pregame to Berkshire Hathaway’s annual meeting, is wowing shareholders flocking here this weekend.
    With over 20,000 square feet of showroom space and more than 50,000 items of inventory, the exhibit hall at the CHI Health Center features goodies from various Berkshire’s holding companies, from Brooks Running to See’s Candies to Jazwares.

    Only shareholders can participate at the event and they can buy items at a special discount.
    The annual meeting will be exclusively broadcast on CNBC and livestreamed on CNBC.com. The special coverage will begin Saturday at 9:30 a.m. ET.
    Jazwares

    Squishmallow pit at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    Jazwares, the American toymaker best known for its Squishmallows plushie line, was a hit last year when it first displayed its wares at Berkshire Hathaway’s conference, including the debut of a Warren Buffett plushie. This year, the company expanded its exhibit in the convention hall, making it three times larger.

    Displays at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nevada on May 3, 2024. 
    Sarah Min | CNBC

    Some highlights include the latest Squishmallows toys in the images of Buffett and his longtime Berkshire partner, Charlie Munger, a splashy Squishmallows pit, as well as other displays.
    ‘Poor Charlie’s Almanack’

    Charles Munger remembrance ahead of the Berkshire Hathaway Annual Shareholder Meeting at Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    The Bookworm only had one book to sell this year: “Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger.” That was at the request of Buffett in honor of his business partner of more than 60 years, who passed away in November at the age of 99.

    FlightSafety

    FlightSafety at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    Berkshire acquired pilot training company FlightSafety in 1996. At Friday’s shopping event, the firm brought a taste of what its training program looks like for professional pilots. Shareholders lined up to put on virtual reality glasses and experience the flight simulation training.
    Pilot Travel Centers

    Pilot Travel display ahead of the Berkshire Hathaway Annual Shareholder Meeting at Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    Truck-stop giant Pilot Travel Centers put up a big display with a real-sized red truck. The firm is largest operator of travel centers in North America, with more than 750 locations. Berkshire now fully owns Pilot Travel after buying the remaining 20% ownership interest from the Haslam family. The deal was not without drama as the Haslams last year sued Berkshire in a complaint that accused the conglomerate of using so-called pushdown accounting without authorization from the family.
    Duracell

    Duracell display at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    In 2016, Warren Buffett’s Berkshire Hathaway bought Duracell from Procter & Gamble, offering the consumer giant $4.7 billion of the shares it owned in P&G in exchange for the battery maker.
    Brooks Running

    Displays at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    Brooks Running attracted a long line of shareholders snapping up the 2024 special edition of its running shoes with “brk” on the side and a cartoon of a running Buffett on the insoles. Many shareholders are also set to participate in the Brooks “Invest in Yourself” 5K fun run and walk on Sunday, the morning following the annual meeting.
    Dairy Queen

    Dairy Queen display at the Berkshire Hathaway Annual Shareholder Meeting in Omaha, Nebraska, on May 3, 2024.
    Sarah Min | CNBC

    Warren Buffett bought Dairy Queen in 1998 in a roughly $600 million transaction, and has made trips to the Omaha locations with his great-grandchildren. According to The Wall Street Journal, the billionaire investor has said in the past that his favorite DQ order is a vanilla soft serve topped with chocolate syrup and malted milk power.
    Correction: Berkshire Hathaway’s annual shareholder meeting is held in Nebraska. Captions in an earlier version didn’t cite that state.

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    Skydance bid for Paramount hinges on Shari Redstone as special committee ends exclusive talks

    The Skydance consortium is prepared to walk away from its bid for Paramount if it doesn’t hear from controlling shareholder Shari Redstone after the latest Apollo-Sony offer, according to a person familiar with the matter.
    Skydance’s exclusivity period with Paramount will not be renewed after it expires Friday, people familiar with the matter told CNBC’s David Faber.
    Apollo and Sony sent a letter to Paramount’s board Thursday expressing interest in buying the company for about $26 billion, CNBC previously reported.

    Shari Redstone, chair of Paramount Global, attends the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on Tuesday, July 11, 2023.
    David A. Grogan | CNBC

    Skydance Media is prepared to walk away from its offer for Paramount Global unless it receives a firm commitment from controlling shareholder Shari Redstone, following the latest offer from Apollo Global Management and Sony Pictures, according to a person familiar with the matter.
    The exclusivity window for discussions between David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR, and Paramount ends Friday and won’t be extended, people familiar with the matter told CNBC’s David Faber. Paramount shares rose following the report.

    The consortium has been waiting for word from Paramount’s special committee on whether the panel will recommend its bid to acquire the company to Redstone. Now, with Apollo and Sony formally expressing interest in acquiring the company for about $26 billion, the Skydance group is looking for Redstone to reaffirm her commitment to the deal.
    The Skydance consortium is not keen to hang around to be a stalking horse offer for Apollo and Sony, one of the people said. Still, depending on what Redstone says, Ellison may be willing to work with her, a second person said.
    Spokespeople for Skydance, Redstone’s National Amusements and Paramount’s special committee declined to comment on Friday.
    Apollo and Sony made their latest offer Thursday, CNBC previously reported. The special committee is currently considering the bid, the people said.
    As part of Skydance’s latest deal on the table, Redstone may take less than $2 billion for her controlling stake in Paramount, which is lower than Skydance’s initial offer. The consortium is contributing additional capital to pay common, Class B shareholders at a nearly 30% premium to the undisturbed trading price of about $11 per share, CNBC has reported. In total, Redstone and Skydance would contribute $3 billion, with the vast majority going to Class B shareholders, according to people familiar with the matter.

    Skydance’s valuation as part of the deal remains around $5 billion, the people said. Like Skydance’s bid, the Apollo-Sony offer includes a control premium for Redstone, according to people familiar with the matter.
    Previously, Redstone rejected an offer by Apollo in favor of exclusive talks with Skydance. Redstone has preferred a deal that would keep Paramount together, as Skydance’s offer would, CNBC previously reported. A private equity firm is likely to break up the company.

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    Dave & Buster’s plan to allow betting on arcade games draws scrutiny

    Dave & Buster’s announced earlier this week that it will begin to allow wagering over arcade games in the next few months on its app.
    In response, an Illinois lawmaker is proposing legislation to prevent wagering at family entertainment venues, saying such companies don’t have proper safeguards in place.

    A Dave & Buster’s location in the Gateway Center shopping complex in the Brooklyn borough of New York, US, on Saturday, March 30, 2024. 
    Bing Guan | Bloomberg | Getty Images

    Arcade chain Dave and Buster’s plan to allow customer betting isn’t winning over everyone.
    Software company Lucra Sports announced on Tuesday that it was working with the entertainment chain to allow customers to place wagers on their arcade games through the Dave & Buster’s app.

    But some lawmakers are calling foul.
    Illinois State Rep. Daniel Didech, a Democrat from Buffalo Grove, filed a bill on Thursday that’s designed to prohibit family amusement establishments from facilitating wagering on amusement games. He is also looking to criminalize the activity by amending the Illinois Criminal Code. His bill has bipartisan support and is backed by more than two dozen other state lawmakers.
    “It is inappropriate for family-friendly arcades to facilitate unregulated gambling on their premises. These businesses simply do not have the ability to oversee gambling activity in a safe and responsible manner,” Didech said in a statement.
    Didech, who also serves as chairman of the Illinois House Gaming Committee, said he will be advancing the legislation this session to clarify that such conduct is illegal under Illinois law.
    Didech told CNBC that he sees many issues with the idea, ranging from the lack of protections for problem gamblers to exposing younger people to gambling. He said that while Illinois requires people to be 21 and older to gamble, Lucra’s service is for people 18 and up.

    “None of those protections are in place at Dave & Buster’s locations. They haven’t even remotely done their due diligence,” Didech said.

    Customers play a car racing arcade game at a Dave & Buster’s Entertainment location.
    Timothy Fadek | Bloomberg | Getty Images

    The Ohio gaming control board has also taken notice.
    “The Commission does have serious concerns about the proposal – including that it appears to violate Ohio law regarding the facilitating of illegal prizes for skill-based amusement machines,” a spokesperson for the Ohio Casino Control Commission told CNBC. “We are reaching out to Dave & Buster’s for additional information.”
    Both Lucra Sports — the company that will power the wagers on Dave & Buster’s app — and Dave & Buster’s declined to comment on the opposition.
    As sports betting has exploded since it became legal in much of the country, companies are looking to cash in on the gambling craze. The idea for Dave & Buster’s is to give customers a new form of entertainment and keep them engaged longer and ultimately to spend more money.
    Lucra said most of the wagers across its software platform, which allows users to compete for real money in friendly competitions, are an average of about $10 in size. But the company hasn’t yet decided on a maximum bet amount for Dave & Buster’s.
    Lucra said the arrangement with Dave & Buster’s isn’t subject to the same gambling regulations or taxes that sportsbooks are because peer-to-peer betting is considered skill-based. Lucra also said it has extensive responsible gaming policies in place, such as options to self-exclude or self-limit on the platform.
    Brett Abarbanel, executive director of the University of Nevada, Las Vegas, International Gaming Institute, said she is interested to see what safeguards, if any, will be implemented by Dave & Buster’s.
    “Regardless of the legal classification of the activity as ‘not gambling’ vs. ‘gambling,’ this is an activity in which participants are risking something of value on an outcome that is uncertain. Therefore, there should be consumer protection measures in place for players, particularly when the target audience is skewed toward younger participants,” she said.
    Correction: This article has been updated to reflect the correct day Illinois State Rep. Daniel Didech’s bill was filed. More

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    First Berkshire Hathaway annual meeting without Charlie Munger: What to expect from Warren Buffett

    Warren Buffett walks the floor and meets with Berkshire Hathaway shareholders ahead of their annual meeting in Omaha, Nebraska on May 3rd, 2024. 
    David A. Grogan

    When Warren Buffett kicks off Berkshire Hathaway’s annual shareholder meeting on Saturday, the absence of Charlie Munger will be on everyone’s mind.
    Some 30,000 rapt shareholders are descending on Omaha for what’s been called “Woodstock for Capitalists.” Pandemic lockdown apart, it will be the first without Munger, Buffett’s longtime partner who passed away in November about a month shy of his 100th birthday.

    “The meeting will only have one comedian up there” this year, said David Kass, a finance professor at the University of Maryland and a Berkshire shareholder, who has attended more than 20 annual meetings. “There’ll be, let’s say, a more serious, less humorous background.”
    The annual meeting will be exclusively broadcast on CNBC and livestreamed on CNBC.com. Our special coverage will begin Saturday at 9:30 a.m. ET. For the first time, Berkshire will broadcast its annual meeting movie that had previously always been reserved only for those in attendance in Omaha. Many speculate this year’s will be a tear-jerker tribute to Munger.
    Vice Chairman of Non-Insurance Operations Greg Abel, Buffett’s designated successor, will fill Munger’s seat in the afternoon session, helping answer shareholder questions. Vice Chairman of Insurance Operations Ajit Jain will join Buffett, the CEO, and Abel in the morning session. Buffett has said they expect to field about 40 to 60 questions Saturday.
    “The tone of the meeting is certainly going to be a lot different without Charlie,” said Steve Check, CEO of Check Capital Management and a longtime Berkshire shareholder. “He was the one that really made it funny. It’s getting closer and closer to the transition, so it’s good to see Ajit and Greg on the stage.”

    Warren Buffett and Charlie Munger at a press conference during the Berkshire Hathaway Shareholders Meeting, April 30, 2022.

    Munger’s investment philosophy rubbed off on Buffett early on, giving rise to the sprawling conglomerate worth $860 billion that Berkshire is today. Generations of investors also appreciated Munger’s trademark bluntness and humor, rare to come by on Wall Street.

    If anything, the sea of Buffett admirers will cherish his folksy wisdom even more as the “Oracle of Omaha” turns 94 in less than four months.
    Here are some of the big topics shareholders want Buffett to discuss:

    Inflation: Price pressures have proved sticky lately. What impact is inflation having on Berkshire’s businesses? Which businesses are being hurt (and helped) the most?
    Apple: Why did Berkshire trim its Apple stake in the fourth quarter? Investors will look for Buffett’s outlook on the tech stock given its challenges in China and recent news of a giant, $110-billion stock buyback.
    Secret stock pick: Berkshire has been buying a financial stock for two quarters straight. What is it?
    Record cash: Does Buffett plan to put his record level of cash to work?
    A slowdown in buybacks: With Berkshire shares outperforming this year, will Buffett continue to slow down his own buyback program?
    Life after Buffett: More details on Berkshire’s succession plan.

    Macro commentary
    The annual meeting comes at a tricky time for markets as a pickup in inflation puts the brakes on the Federal Reserve’s plan to cut interest rates this year. While the Berkshire CEO doesn’t make investment decisions based on daily headlines, investors still are eager to hear any market commentary and guidance from the protege of the father of value investing, Ben Graham.
    “They don’t time their investments,” Kass said of Berkshire. “The economy goes through cycles. They totally ignore cycles. They invest for a long run, and they really ignore what pretty much what the Federal Reserve is doing. I believe that will be his answer.”
    Apple
    Shareholders may seek an explanation as to why Berkshire sold about 10 million Apple shares (1% of its massive stake) in the fourth quarter. At the end of 2023, Berkshire owned 905,560,000 shares of the iPhone maker, worth more than $174 billion and taking up more than 40% of the portfolio.
    The move came as a surprise to many because Apple has been Buffett’s favorite stock for years, and he even called the tech giant his second-most important business after Berkshire’s cluster of insurers. What’s more, the last time Buffett trimmed this bet, he admitted it was “probably a mistake.’

    Arrows pointing outwards

    Shares of the iPhone maker got a big boost Friday after the firm announced that its board had authorized $110 billion in share repurchases, the largest in company history. However, Apple posted a decline in overall sales and in iPhone sales.
    Secret holding
    There’s a small chance that Buffett will reveal the identity of the mystery bank stock that Berkshire has been buying for two quarters straight.
    In the third and fourth quarters of 2023, Berkshire requested that the Securities and Exchange Commission keep the details of one or more of its stock holdings confidential. Many speculated that the secret purchase could be a bank stock as the conglomerate’s cost basis for “banks, insurance, and finance” equity holdings jumped by around $2.37 billion.
    “He will comment as late as possible…. Charlie would be the only one that would let it slip once in a while. It’s not going to happen with Warren,” Check said.
    Succession
    Berkshire’s succession could be front and center at this meeting after Munger’s passing. Abel, became known as Buffett’s heir apparent in 2021 after Munger inadvertently made the revelation.
    Abel has been overseeing a major portion of Berkshire’s sprawling empire, including energy, railroad and retail. Buffett revealed previously that Abel’s taken on most of the responsibilities at Berkshire.
    Still, some questions remain as to who will be helping allocate capital at Berkshire, and the roles of Buffett’s investing managers Ted Weschler and Todd Combs, who is also the CEO of Geico. More

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    Amgen stock soars on weight loss injection progress as Novo Nordisk, Eli Lilly shares slide

    Amgen’s stock jumped on Friday after the drugmaker teased positive initial data on its experimental weight loss injection. 
    That fueled investor concerns about new competition in the rapidly growing weight loss drug industry, sending shares of Novo Nordisk and Eli Lilly lower on Friday.
    Novo Nordisk’s stock was already under pressure after sales of its blockbuster weight loss injection Wegovy missed analysts’ estimates for the first quarter.

    Pavlo Gonchar | Lightrocket | Getty Images

    Amgen’s stock rose more than 12% on Friday after the drugmaker teased positive initial data on its experimental weight loss injection. 
    That fueled investor concerns about new competition in the rapidly growing weight loss drug industry, sending shares of the current obesity players, Novo Nordisk and Eli Lilly, lower on Friday. Eli Lilly shares dropped nearly 3%, while Novo Nordisk’s U.S.-traded shares fell more than 1%.

    Novo Nordisk’s stock was already under pressure on Thursday after sales of its blockbuster weight loss injection Wegovy missed analysts’ estimates for the first quarter due to lower pricing. 
    During a first-quarter earnings call Thursday, Amgen’s CEO Bob Bradway said he was “very encouraged” by early results from a mid-stage study on the company’s obesity injection, MariTide. Investors have been laser-focused on that drug and the rest of Amgen’s weight loss drug pipeline as it races several other drugmakers to join the booming market. 
    “We are confident in MariTide’s differentiated profile and believe it will address important unmet medical needs,” Bradway said during the call. 
    Amgen did not provide specific data, but its Chief Scientific Officer Jay Bradner said that patient dropout has not been an issue. He said Amgen is on track to release initial data from the study in late 2024 and is also planning late-stage studies in patients with obesity, obesity-related conditions and diabetes. 
    Bradway also highlighted the potential competitive advantages of the injection, which patients will take using a hand-held autoinjector once a month or even less frequently. That could offer far more convenience than the weekly injections on the market, Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. 

    “While there has been significant debate on the potential efficacy and safety of MariTide since the initial disclosures of the Phase I data in 2022, we have grown more confident in the potential for the therapy to meaningfully differentiate from other therapies in development, particularly in regard to treatment intervals,” William Blair analyst Matt Phipps said in a research note on Friday, adding that the firm is upgrading its rating on Amgen shares to “outperform.” 
    Notably, Amgen said it was scrapping its experimental oral obesity drug. But that development was not as important as the MariTide update, Jefferies analyst Michael Yee said in a research note Thursday. 
    Amgen’s Bradway said the company has started expanding manufacturing for MariTide. That’s a signal that the company is preparing to produce enough supply of the drug — a major issue that Novo Nordisk and Eli Lilly have grappled with over the past year and a half. 
    Still, investors were pleased with Eli Lilly on Tuesday after the company assured them that it could overcome ongoing supply constraints for its popular drugs. Eli Lilly hiked its full-year guidance in part due to optimism around increased production of Zepbound, its diabetes injection Mounjaro and similar drugs for the rest of the year.
    Eli Lilly has several manufacturing sites either “ramping up or under construction,” including two locations in North Carolina, two in Indiana, one in Ireland, and one in Germany, along with a seventh recently acquired site, executives said during an earnings call. 
    Meanwhile, investors were less impressed with Novo Nordisk on Thursday. 
    Sales of Wegovy during the first quarter nearly doubled but came in under analysts’ expectations. That signals that Novo Nordisk is struggling to meet demand for the treatment. 
    But Novo Nordisk also pointed to fierce competition from Eli Lilly’s Zepbound, which has shaken up pricing dynamics for Wegovy in the U.S. 
    “Net pricing” for both Wegovy and Ozempic will be lower in the U.S. throughout the year due to the “increasing volume and competition,” Chief Financial Officer Karsten Munk Knudsen said on a first-quarter earnings call on Thursday.

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