Greg Abel

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“on GEICO. And then we'll also have a video on netjets narrated by Adam and a video on netjets narrated by Adam and a video on netjets narrated by Adam and a video narrated video narrated video narrated by Katie on BNSF the railway. So that'll that'll be incremental. Now the that'll be incremental. Now the that'll be incremental. Now the fundamental purpose of both having the fundamental purpose of both having the fundamental purpose of both having the ma some incremental managers join us on ma some incremental managers join us on ma some incremental managers join us on the stage and the videos. We have an the stage and the videos. We have an the stage and the videos. We have an exceptional team at Berk
hire. The exceptional team at Berk
hire. The exceptional team at Berk
hire. The depth of management is very deep. depth of management is very deep. depth of management is very deep. Obviously we have a number of Obviously we have a number of Obviously we have a number of subsidiaries but the depth of our team subsidiaries but the depth of our team subsidiaries but the depth of our team is great. And this is an opportunity is great. And this is an opportunity is great. And this is an opportunity through the videos or having incremental through the videos or having incremental through the videos or having incremental leaders on stage. It's an inc it's an leaders on stage. It's an inc it's an leaders on stage. It's an inc it's an opportunity for you as our owners to opportunity for you as our owners to opportunity for you as our owners to both learn more about those businesses both learn more about those businesses both learn more about those businesses but also about the leaders that lead but also about the leaders that lead but also about the leaders that lead them and that will be a format that as them and that will be a format that as them and that will be a format that as we go forward we'll build on i.e. we can we go forward we'll build on i.e. we can we go forward we'll build on i.e. we can introduce you to other leaders either on introduce you to other leaders either on introduce you to other leaders either on stage or through the through the videos. stage or through the through the videos. stage or through the through the videos. So let's move to the formalities. Now”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Now I I can start to I think my eyes have adjusted a bit to the lights and everyone out there. And I I have to tell a little bit of a story here because when when Warren announced the transition last year and I was sitting here and couldn't been more proud, but I don't mind sharing. The first thing that flashed through my mind was, geez, we've already booked this arena”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Tim, on behalf of our shareholders andTim, on behalf of our shareholders andTim, on behalf of our shareholders and owners here, we echo everything Warrenowners here, we echo everything Warrenowners here, we echo everything Warren said and and I would add one thing.said and and I would add one thing.said and and I would add one thing. You've truly been a global ambassadorYou've truly been a global ambassadorYou've truly been a global ambassador around the world for American business.around the world for American business.around the world for American business. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“really started with the letter to our owners and and shareholders at the end of February. And I touched on it in the letter. I highlighted that the first thing as I as we transitioned, I wrote a letter to our 400,000 employees touching on culture and values. And the purpose of that letter was to highlight that was not going to change. It had never changed in Berkshire under Warren 60 years aspects of evolved but they don't our our our culture and values did not change and that as we did the transition that was not going to change either it's the bedrock of Berk
hire that culture”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Berk
hire. We send a a reminder to our it's a greatWe send a a reminder to our it's a greatWe send a a reminder to our it's a great reminder to our CEOs and employees, ourreminder to our CEOs and employees, ourreminder to our CEOs and employees, our 400,000 employees and and we do uh400,000 employees and and we do uh400,000 employees and and we do uh remind them of that including I ask ourremind them of that including I ask ourremind them of that including I ask our CEOs each year just sent out a letter inCEOs each year just sent out a letter inCEOs each year just sent out a letter in again in in the first quarter askingagain in in the first quarter askingagain in in the first quarter asking them as they run their business as theythem as they run their business as theythem as they run their business as they make those daily decisions they makemake those daily decisions they makemake those daily decisions they make apply that simple test that Warrenapply that simple test that Warrenapply that simple test that Warren highlighted the news newspaper test.highlighted the news newspaper test.highlighted the news newspaper test. Now moving to the more formal update onNow moving to the more formal update onNow moving to the more formal update on our numbers. We in fine tradition weour numbers. We in fine tradition weour numbers. We in fine tradition we always start with our exhibit hall salesalways start with our exhibit hall salesalways start with our exhibit hall sales from the uh exhibit hall yesterday. Andfrom the uh exhibit hall yesterday. Andfrom the uh exhibit hall yesterday. And uh the the interesting thing is uh lastuh the the interesting thing is uh lastuh the the interesting thing is uh last year was a record as you may guess butyear was a record as you may guess butyear was a record as you may guess but fortunately this year sales um were veryfortunately this year sales um were veryfortunately this year sales um were very consistent with 24. We're we'reconsistent with 24. We're we'reconsistent with 24. We're we're basically at 1 and a.5 million sales.basically at 1 and a.5 million sales.basically at 1 and a.5 million sales. But the the point is we'd always love toBut the the point is we'd always love toBut the the point is we'd always love to get to 2 million and we're not thereget to 2 million and we're not thereget to 2 million and we're not there yet. So we've got something to work on.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“yet. So we've got something to work on. Um but but importantly what the what the exhibit hall represents is our businesses showing their products and services and you get to see this great commitment of our of our leadership team and their passion for Berkshire and their passion for the owners. I was fortunate to spend some time going through the exhibit hall yesterday and that's a wonderful experience because I get to we're we're we're getting the opportunity to engage with all of you as owners. So, um love we we we treasure the exhibit hall and what a what a great experience and I'll just add it's open till 4:00 today and feel free to spend a little money. Now truly moving to the more formal aspects of the business update. We issued our 10Q this morning and had the related press release. You can see the results and I'll I'll touch on those. Uh”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“results and I'll I'll touch on those. Uh I'll start with Berk
hire just as a whole. Obviously we have our insurance as as I've referenced as our heart of uh heart of Berk
hire was our foundation. But as we move to the non- insurance businesses, we're really fortunate to have a number of businesses in there, but in their aggregate, they're fundamental and and really central to American businesses and American industry and to the American uh consumer. And when I combine those, it's really the unique opportunity we have to excel across those businesses. And and that will continue. It's been our focus and it'll very much continue to be our focus. If I start by looking at these results, I'll start with the insurance, total insurance. And I'm starting there because there's a couple really important points to make. You can see in 2026, the first quarter,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“so I'll come back to it and then the second core objective is to increase our float now the insurance jargon and and the numbers on here. Go to the combined ratio on the left and go way over to the right. The 10-year average 93%. I'll give you a little bit of color here. If we have a $100 premium that comes in associated with a policy, the 93% represents the costs incurred associated with that premium. It can be the cost of writing the premium, the commissions, or the loss reserve we set up. the 7% i.e. $7 on $100 is our pre is our profit, our operating profit on that premium. And then if I go back to the $93, just roughly $23 of that would be the expenses, the administration of of running the business. And that's that's just an average. It varies across our businesses and across it varies across the uh the the industry. The other $70”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that team. Um they even have a better combined ratio 87.3%. That means associated with that business 12% plus operating income coming off of each dollar of premium we write there. Um exceptional result. What's driven that is that four or five years ago we the GEICO team stepped back and said that they felt they weren't um relative to the risk getting the proper premium the proper price for risk and over the last four years we've seen a bet we have worked hard the GEICO team worked hard to get the proper bounce across that that meant our premiums went up for our customers across certain classes of drivers. We they worked hard to segment that customer. And by the way, that happened across the the auto industry. Generally speaking, you saw saw an increase in in the overall premium as they they manage that underlying risk. Again, what's that”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that underlying risk. Again, what's that mean to the industry? What's that mean to Geico?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well, one, there's a lot of folks out there pursuing those customers. Anytime you increase a customer's insurance premium and and especially over a period of time and this is I'm talking about both Geico and our competitors. Listen, people start evaluating and shopping and we've we've seen unprecedented shopping activity across the auto space and you see the advertising that's out there. They're pursuing customers and they're pursuing the Geico customers. So yes, we there there's a an important balance I want to highlight to to all of you is that and this is what our GEICO team's working on. Yes, we have to get the price to risk right, but there's two other important things we really need to balance. The second piece is we really do want to uh retain our customers.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“do want to uh retain our customers. There's no more valued customer than our Geico customers. Many of you as shareholders and owners of Berkshire are Geico customers. We want to retain all of you. We want to retain every Geico customer. So, as we found that right price to risk, the next challenge is making sure we retain our customers. And Nancy and her team have that as a clear objective and they're working hard on that. And then the third piece of that balance is to grow GEICO. How do we measure growth growth in that industry? It's policies enforce. And if I touch on uh what we've experienced as growth in GEICO, if we go back to last quarter 2025 versus this quarter uh ending March of uh this year, our policies in force grew by 2%. Um, now compare that to a comp uh the number one competitor in our industry, Progressive. They just announced their”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Progressive. They just announced their first quarter results. They grew by 11%. And our team at Geico fully acknowledge, as I said, that balance that they have to find across those uh the the three metrics, including including growth. It's not going to be easy to just restart the growth engine. We acknowledge that. But they understand the objective and as we go through 26 and into 2027, two important um objectives as I said they have they have is that okay let's retain our customers and let's um start growing Geico. Uh again the last thing I'll just touch on the insurance business and it's uh um Tokyo Marine. I'm not going to expand a lot but other than we announced the transaction in the fourth quarter of I mean in the fourth week of March a great transaction by Ajit and his team and and it's a strategic transaction in that and I'm”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“strategic transaction in that and I'm highlighting that because yes there's a financial aspect of it and we're thrilled with that but it is a long-term strategic partnership and when Ajit's on stage I'll have them I'll have him expand on that. So well done Aene. Thank you to you and your team. A great great transaction for Berkshire. Now we'll move to our our non insurance businesses. I'll start with BNSF. As I've highlighted, a number of our non-insurance businesses provide critical product services. is BNSF is a great example of that. 32,500 m of track in the west moving core products for a number of customers that touch every industry uh in the in the US. Um you'll see the results some some improvement there. But what we really want to highlight today and and Katie will be joining me on stage and and she'll touch on this is that um we we have a lot lot of work we know to do at”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“have a lot lot of work we know to do at BNSF. We have a great group of employees have been working very hard I would say on the ground boots on the ground. So, you've heard me talk in the past that we have to work hard in our yards and our and work on how we can move our our cars quicker and and meet our our customers expectations. And we're doing a a very good job on the customer service side, but we've recognized we've got to get better operationally. Our team's also very been very focused on uh what resources do we have? Do we have uh too many locomotives? Cuz actually too many locomotives, it sounds counterintuitive, but can be a problem. You're just not as one, you're not as efficient, but the congestion and everything comes with. So our team's been very focused on that. And then how do we best use our employees? Well, that's something our”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“employees? Well, that's something our team's working hard on, but uh and we're working hard to become more efficient and more effective. But we also have to very much recognize where we are versus our industry peers. This is the six class one railroads that operate in the US and we're one of them. And you can see that last year we were fifth out of six. And that's a reality of where we are. But we're also getting better and we are going to get better. We recognize that this performance is we've our our as I've said our our teams have worked hard but there's a lot of room for improvement. Now the good news is if I look at it in 2025 and what we have here is our operating margin. So the 34 1.5% you see for Berk
hire that's the operating profit uh that came back to to BNSF associated with its underlying operations. That operating”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“underlying operations. That operating margin improved by 2 and a.5% 250 basismargin improved by 2 and a.5% 250 basismargin improved by 2 and a.5% 250 basis points. That's a very positive outcomepoints. That's a very positive outcomepoints. That's a very positive outcome obviously and by the way in fairness toobviously and by the way in fairness toobviously and by the way in fairness to our team that's the work they've beenour team that's the work they've beenour team that's the work they've been putting in that was that on a nominalputting in that was that on a nominalputting in that was that on a nominal basis that was the largest improvementbasis that was the largest improvementbasis that was the largest improvement across the uh our five peers. So we'reacross the uh our five peers. So we'reacross the uh our five peers. So we're pleased with that but we know there's apleased with that but we know there's apleased with that but we know there's a lot of work to be done. If you look atlot of work to be done. If you look atlot of work to be done. If you look at our first quarter results, happy toour first quarter results, happy toour first quarter results, happy to report that, okay, we went from fifth toreport that, okay, we went from fifth toreport that, okay, we went from fifth to fourth, but our team would be the firstfourth, but our team would be the firstfourth, but our team would be the first to say there's a lot more to be done.to say there's a lot more to be done.to say there's a lot more to be done. And if you look at our overall operatingAnd if you look at our overall operatingAnd if you look at our overall operating margin there, very consistent with themargin there, very consistent with themargin there, very consistent with the result last year and the efficiencyresult last year and the efficiencyresult last year and the efficiency we've delivered is being maintained andwe've delivered is being maintained andwe've delivered is being maintained and improved versus the quarter vers uh overimproved versus the quarter vers uh overimproved versus the quarter vers uh over the quarter of 2025.the quarter of 2025.the quarter of 2025. So again, umSo again, umSo again, um we we seewe we seewe we see a lot of opportunity here to continue toa lot of opportunity here to continue toa lot of opportunity here to continue to get better, butget better, butget better, but to achieve where say Union Pacific is as”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“to achieve where say Union Pacific is as a leader at with an operating margin of 39.5%. We know that's going to require a step change both as as how we're operating, but even how we approach our operations. An important step that we've or or something we've identified. we like to identify the gaps and where we can get better is technology and we're doing a lot at BNSF and I'll touch on our other businesses uh here when I uh go through technology but that's where we see a step change or or potentially where our a few of our peers have gapped out versus where how we're using technology. Uh I'm going to back up to GEICO and then I'll come back to uh BNSF cuz it was approximately four years ago. I was in a GEICO meeting with our management team there and they were discussing this price to to risk and segmenting customers and we had our”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“segmenting customers and we had our operational team from Geico. They had the commercial team but they had the tech team there and they're often there and and you're looking for some help. But what I heard in that discussion was a clear technology transformation that was happening at GEICO. It was obvious that the technology was going to be a big part of the solution as Geico tackled uh their certain challenges. And as that meeting wrapped up, I very much wanted to spend more time with the technology team uh to understand what was what was driving this and and they were calling it a technology transformation because I could see that it was so applicable to what we were going to what we needed to do and what we would pursue across our non-in businesses. So So what is this technology transformation that they described at GEICO? Uh, I'll I'll I'll summarize it in a few”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Uh, I'll I'll I'll summarize it in a few different ways, but first and foremost, we recognized we were going to become a builder of technology rather than just a buyer of technology. And that meant that instead of we had a number of systems and we often bought the related applications or software that came with it. And yes, it's it's a valued uh application, but it was disconnected from all our systems. Obviously, we didn't have that ability to then use the information, get to the data. And what they started to talk about is simplifying the infrastructure, making sure we would build what we needed ourselves and deliver solutions back to our customers and we would have clear access to the data. all things that make a lot of sense, but a massive challenge and it doesn't happen overnight. And we're still on that journey at at GEICO in year five.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“journey at at GEICO in year five. There's no question, but quickly recognized that this could be used across our other businesses. Very fortunate that at GEICO they had put their leadership team in place to drive forward this transformation. and the most senior leader uh then uh came from Geico, joined our non- insurance operations, took on a senior leadership role, the leadership role helping us with the technology transformation at uh BA Berkshire Hathaway Energy and then also as a senior technology officer at BNSF. So we started down that journey and one of the first things you have to do is say okay we need a different resource base. So now we're hiring engineers we hire developers in our technology group that help us start to build the solutions we need for these businesses and and it's going beyond Geico now. Um, and we still have the our”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Geico now. Um, and we still have the our valued employees there and and and they may be retraining or transitioning to other roles. But the reality is we need less people managing uh the applications and the software and more people building outcomes that our our businesses need. Now, when I asked our team, well, how does AI fit uh fit into this artificial intelligence? What's actually a big piece of this because it's effectively what goes on top of a lot of our systems and that's what they're building. They're using AI to build applications and that's all great but we also know there's certain risks around humanity. There's risks and and there's the broader risk for globally and for the uh and for our country but there's also risk within our businesses. And as I just start heading down this path I said well okay how should we think about this? how how are”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“within our systems or within that. But as it moves up and the important decisions are being made, there's human involvement. our managers, our employees are involved and that's part of the governance that's effectively in place. The second piece is what they call the safeguard and the safeguard is very intriguing because right away of course we all want good governance. We want that in place but what's that mean? And our team said okay here's how I would describe it. If if we ask for an outcome, we want a recommendation or an action and we ask it now and then half hour later we ask do we get the exact do we get the exact same outcome? If we can receive that same outcome, we're we're it's effectively the safeguard. We know we're utilizing that application properly. And importantly, it means we've got a defined data set that we're comfortable with. And and I”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and we need to know what we're trying to achieve and do we see a valued proposition uh for the businesses. So that's what we call narrow AI. Um, and if you see how it's starting to be applied at BNSF, it's incredible. So, if I think of BNSF, um, uh, we have, uh, uh, uh, the expansive network I touched on. We have a variety of trains leaving from a variety of points every day. I've touched on it can be the interotal trains of 150 to 200 on our tracks a day which are moving very quickly and often leaving LA to deliver product in Chicago 48 hours later or it can be in the last quarter we had more than 750 trains a day moving across that system there's weather or there's equipment failures we share our tracks we allow Amtrak to use them they can be running on time or they can be running behind schedule. We have to adjust all to that. And the reality is Katie and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“to that. And the reality is Katie and her team been they have a a system that's been running for 177 years, but we were not there in how we could use technology to operate that better. And that's what we're using or we've just started down the path of uh that's how we know we'll see that step change in in our operating performance. Now to summarize it all that but I I want to let you know it's it's all around operational excellence. We are going to get better at at rail but we're going to use that framework across all of our businesses. They very much will create the framework and then our teams can embrace it if they so so choose and we'll help them see the value of it. But there is an opportunity there and I'll break it down with one last comment around technology. Um, when you think of a artificial intelligence, everybody talks about the large language models”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“talks about the large language models and okay, they're learning models and and okay, they're learning models and and okay, they're learning models and there's a lot more to it than I just there's a lot more to it than I just there's a lot more to it than I just highlighted. But I summarize it as one highlighted. But I summarize it as one highlighted. But I summarize it as one thing and this is why there's an thing and this is why there's an thing and this is why there's an opportunity across all our businesses. opportunity across all our businesses. opportunity across all our businesses. Those large language models, I really Those large language models, I really Those large language models, I really communicate them and I communicate them communicate them and I communicate them communicate them and I communicate them to our teams or at least it helps me to our teams or at least it helps me to our teams or at least it helps me understand it. They're large logic understand it. They're large logic understand it. They're large logic models. We're at this point in time models. We're at this point in time models. We're at this point in time we're using it to solve logical we're using it to solve logical we're using it to solve logical challenges in our business and what challenges in our business and what challenges in our business and what we're trying to do it is in a more uh we're trying to do it is in a more uh we're trying to do it is in a more uh efficient fashion i.e. do it more efficient fashion i.e. do it more efficient fashion i.e. do it more quickly and get to a better answer. So quickly and get to a better answer. So quickly and get to a better answer. So that was a lot in technology but it that was a lot in technology but it that was a lot in technology but it touches the whole franchise of of touches the whole franchise of of touches the whole franchise of of Berkshire. Berkshire. Berkshire. If I move to energy now um and provide If I move to energy now um and provide If I move to energy now um and provide an update there uh I'm just going to an update there uh I'm just going to an update there uh I'm just going to touch on the opportunity first then come touch on the opportunity first then come touch on the opportunity first then come to the challenges because as I've just to the challenges because as I've just to the challenges because as I've just discussed technology that's the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“discussed technology that's the opportunity in energy one of the core inputs to all those data centers hyperscalers associated with artificial intelligence is energy our businesses have that opportunity in front of them at at Berkshire Hathway Energy uh And yes, we're pursuing them and and we'll do it I'll touch on it in a in in a way we view as the right approach for both our states and our customers. But I would highlight it's not new to us. If you just go across the river a little bit east Iowa, we serve just under 50% of of that state. If you look at the number of data centers and hyperscalers in that state, it's it's very significant. We have four very large hyperscalers data centers there or or builders of them and and ultimately the their customers using it. But if I look at our peak load i.e. the amount of energy being used from those data”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“energy being used from those data centers it's at 8% of their peak load. And the only reason I highlight that 8% is when I hear people in the industry and all the utilities around us, a lot of states, they're talking about this great opportunity and gez hopefully in the next 5 years they'll be from a relatively starting point. They want to get to the 5 to 10%. And we're already at eight and we see opportunities to grow that by 50% over the next 5 years or or potentially more. But we'll do it in a way and you're starting to hear more and more of this across the US. We'll do it in a way where we're not going to impact the costs of our other customers. These users of the i.e. those the the hyperscalers, the data centers and the users of the energy uh they have to bear their full cost. We can't transfer that burden across all our other customers.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“burden across all our other customers. and and that's a principle we've applied across all our utilities and from the very early goings when we're building these data centers and I would highlight I think our team's doing an exceptional job of that. If I again go back to Mid-Americ if you look at their with all the data centers and hyperscalers and then and the infrastructure they put in place their rates are still 45% below the national average. That's just unheard of. It's an exceptional outcome and it just highlights they're doing the right things when they build this infrastructure or it's a part of it and we would highlight we have similar positive outcomes across uh the rest of our utilities now and I I would note one other thing our gas network or our infrastructure there are large pipeline company we have there as they build out”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“company we have there as they build out all this infrastructure not just in our utilities but across the US our pipeline footprint will growth. A lot of it's being built by natural gas and and we'll meet that challenge. But here's an interesting point. 15% of the gas consumed in the United States is touched by our pipeline network or one of our our core assets there. So again, that's the opportunity on the energy side. Um but it's not without its challenges and we've talked about this the past few years. Um, and when I think of the Berkshire Hathaway Energy Group, what's the challenge? It's what I call the regulatory compact. We leave your capital, our owner's capital, Berkshire's capital in these businesses and often a portion of the earnings that they generate, we may reinvest back into those businesses and for that we get a very specific set of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“for that we get a very specific set of return. and and it's a fair it's it's over the long run it's been a very balanced and fair return but but how do you measure that it's versus the risks you take on in that business and that's the compact okay you're going to pay us x% return and what risks are you asking us to take and that model has worked very good for a number of years and and for centuries but the problem is it's becoming more stressed if you think of inflation If you think of the data center challenges, but I strongly believe we're managing that separately and then you move to assets that are 60 to 100 years old that are starting to retire and we bring those into the network. The challenge is every day to get more efficient, more effective from the operational side. But as a regulator, as a governor, you're very focused on I”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“a governor, you're very focused on I don't want my rates to go up. I don'tdon't want my rates to go up. I don'tdon't want my rates to go up. I don't want to take on more risk. they want towant to take on more risk. they want towant to take on more risk. they want to transfer that back to us and that's thetransfer that back to us and that's thetransfer that back to us and that's the regulatory compact. And unless thatregulatory compact. And unless thatregulatory compact. And unless that exists, we do not if if we don't seeexists, we do not if if we don't seeexists, we do not if if we don't see that balance, we don't deploy ourthat balance, we don't deploy ourthat balance, we don't deploy our capital back into those businesses orcapital back into those businesses orcapital back into those businesses or into those utilities and and we workinto those utilities and and we workinto those utilities and and we work hard to maintain it. But there's been ahard to maintain it. But there's been ahard to maintain it. But there's been a very important challenge we've hadvery important challenge we've hadvery important challenge we've had within that we've touched on in the pastwithin that we've touched on in the pastwithin that we've touched on in the past two and that's wildfires.two and that's wildfires.two and that's wildfires. wildfires in the west uh very prevalentwildfires in the west uh very prevalentwildfires in the west uh very prevalent the last 15 15 plus years in inthe last 15 15 plus years in inthe last 15 15 plus years in in California.California.California. We experienced a very significantWe experienced a very significantWe experienced a very significant wildfire in Oregon in 2020 or a numberwildfire in Oregon in 2020 or a numberwildfire in Oregon in 2020 or a number of wildfires across Oregon but we beingof wildfires across Oregon but we beingof wildfires across Oregon but we being the state but also the company. So therethe state but also the company. So therethe state but also the company. So there were a number of wildfires across thewere a number of wildfires across thewere a number of wildfires across the state. We had certain equipment,state. We had certain equipment,state. We had certain equipment, certain uh high winds, we had certaincertain uh high winds, we had certaincertain uh high winds, we had certain failures with our equipment thatfailures with our equipment that”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“failures with our equipment that contributed to to those fires. And associated with that, we fully acknowledged where we there was causation and where we were responsible for it. But there was also associated with some of the fires and specifically one fire, a class action lawsuit that was um had very large um claims against uh our utility there, Pacific Corp. Um and and we had to approach it such that we'd resolve all the other matters, but that was a class action. And there was specifically one fire that we strongly felt we weren't responsible for. there was zero causation. There was an Oregon Forestry Department report that said though that Pacific Corp did not contribute uh nor cause the fire. We took a very strong position there that one, we were not going to put more capital in to fund the entity and these type of uh risks and these type of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“pursued it are responsible for our costs associated that period of time. Not associated that period of time. Not associated that period of time. Not not our litigation costs, but the the costs our litigation costs, but the the costs our litigation costs, but the the costs we incurred in posting the bonds we incurred in posting the bonds we incurred in posting the bonds uh or posting that security that's $10 million or approaching likely $10 million or approaching likely $10 million. So, but the most important million. So, but the most important million. So, but the most important thing is we've reset the stage there and thing is we've reset the stage there and thing is we've reset the stage there and that's very important because we're that's very important because we're that's very important because we're working hard to get that regulatory working hard to get that regulatory working hard to get that regulatory compact balanced and and getting the compact balanced and and getting the compact balanced and and getting the right outcome and we do want to see right outcome and we do want to see right outcome and we do want to see these utilities move forward and we want these utilities move forward and we want these utilities move forward and we want to be a very good operator and steward to be a very good operator and steward to be a very good operator and steward of those assets for our our customers. of those assets for our our customers. of those assets for our our customers. So, the last thing I'll just touch on So, the last thing I'll just touch on So, the last thing I'll just touch on wildfires. So when you think of Pacific wildfires. So when you think of Pacific wildfires. So when you think of Pacific Corp, yes, we've addressed that Corp, yes, we've addressed that Corp, yes, we've addressed that challenge, but to get the right compact, challenge, but to get the right compact, challenge, but to get the right compact, we've worked with Wyoming, Idaho, I've we've worked with Wyoming, Idaho, I've we've worked with Wyoming, Idaho, I've touched on Utah on this stage to say it touched on Utah on this stage to say it touched on Utah on this stage to say it requires a judicial system that supports requires a judicial system that supports requires a judicial system that supports the legislature uh the laws in place,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“the legislature uh the laws in place, but more importantly, we all or as importantly, we need good legislation that then sets that that balance. We've had it across those states and we'll continue to work hardly work hard across our our other states. So, an exceptional outcome and and wanted to make sure uh uh you know there's still a lot to be done there because uh we're back to the uh very first uh back to first base on the uh on the uh legal proceedings. Now, moving to our manufacturing and servicing businesses. Uh there's a the this highlights our blues the manufacturing group that represent represents approximately 70% of that group and the service and retailing groups in the uh in the gray or beige. Uh I like to think of when you think of our manufacturing group, we've got three groups there. Uh we have our industrial group, we have our our building products”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“group, we have our our building productsgroup, we have our our building products group, and we have our consumergroup, and we have our consumergroup, and we have our consumer products. The consumer productsproducts. The consumer productsproducts. The consumer products servicing and retailing as I've touchedservicing and retailing as I've touchedservicing and retailing as I've touched on is now under Adam Johnson. We'reon is now under Adam Johnson. We'reon is now under Adam Johnson. We're fortunate to have Adam as our leaderfortunate to have Adam as our leaderfortunate to have Adam as our leader there. He's managing 32 of thosethere. He's managing 32 of thosethere. He's managing 32 of those companies and we'll have him on stagecompanies and we'll have him on stagecompanies and we'll have him on stage and we'll expand on that more. If I goand we'll expand on that more. If I goand we'll expand on that more. If I go back to those a few of those coreback to those a few of those coreback to those a few of those core manufacturing groups, I'll start withmanufacturing groups, I'll start withmanufacturing groups, I'll start with the industrial group. And even when Ithe industrial group. And even when Ithe industrial group. And even when I think of the industrial group, I like tothink of the industrial group, I like tothink of the industrial group, I like to break it down into uh a couple otherbreak it down into uh a couple otherbreak it down into uh a couple other groups, but it's it's a good way togroups, but it's it's a good way togroups, but it's it's a good way to think of our businesses, and that's whythink of our businesses, and that's whythink of our businesses, and that's why I want to share it. Within theI want to share it. Within theI want to share it. Within the industrial group, we have a metals groupindustrial group, we have a metals groupindustrial group, we have a metals group that is very strong. There's threethat is very strong. There's threethat is very strong. There's three businesses.businesses.businesses. We have Precision Cast Parts.We have Precision Cast Parts.We have Precision Cast Parts. It's a business we acquired 10 years agoIt's a business we acquired 10 years agoIt's a business we acquired 10 years ago in 2016.in 2016.in 2016. It's run by Mark Donigan who was the CEOIt's run by Mark Donigan who was the CEOIt's run by Mark Donigan who was the CEO when we acquired the business and he”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“when we acquired the business and he continues to run it today. And as owners and shareholders, we're very fortunate to have Mark in that in that position. He understands precision cast parts inside and out. He understands the industry and very much works towards delivering solutions for our our customers. The second important part of that medals group is a business called IMC and there are international you can hear the management team over there little uh international metalworking uh company and it's really interesting to see that company what one they make the tools that removes uh that remove steel. So they'll take a cylinder steel, they create the tools and then that gets utilized in a variety of other industries. It can be the aerospace uh like a precision cast parts and I'll touch on that or it can be another industry like the auto. If you think of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“industry like the auto. If you think of what's happening in the aerospace industry and this is why precision cast parts and IMC has such um a significant backlog or I'm highlighting a backlog. If we look at what Boeing just announced last quarter or this quarter but just recently their number of planes that they delivered went up by uh 11% quarteron quarter that's phenomenal and they're talking about even doing more very similar results at Airbus and that's who precision cast parts serves and also uh often IMC serves that industry. Um, and that's remarkable. But if you hear of the backlog in this space, it's 10 years. And I I did ask our team the simple question. I go, "Well, is that many more people really flying?" Like, I get it. We're postco and it's building up. And I sort of obviously knew part of the answer, but it's really remarkable why”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“answer, but it's really remarkable why there that is that demand. And and a lot of us know this, but the reality is to see what's driving it is the efficiency of those planes and engines is so great now that it's better to buy the new plane and retire the own the old plane. And what you have is this 10-year backlog that we're seeing a very similar backlog across our our metal businesses when you touch on a precision cast parts or or IMC. Now the third piece of the metal groups and and by the way I should just touch on this. Uh we acquired um IMC 10 basic basically 10 years before uh precision cast parts. So you go back to a a 2006 timeline. We acquired 80% of it. Again, we're very fortunate to have the senior leader there, Jacob Harpaz, who was at the business, the senior leader running it back then and still runs it today. If I look at what how”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“runs it today. If I look at what how Precision Cast Parts and and IMC works Precision Cast Parts and and IMC works Precision Cast Parts and and IMC works together, together, together, Precision Cast Parts is now if not but Precision Cast Parts is now if not but Precision Cast Parts is now if not but very likely IMC's number one customer. very likely IMC's number one customer. very likely IMC's number one customer. We have them working on joint solutions. We have them working on joint solutions. We have them working on joint solutions. Now move to that third group. In 2022, Now move to that third group. In 2022, Now move to that third group. In 2022, we acquired Allegati and we're fortunate we acquired Allegati and we're fortunate we acquired Allegati and we're fortunate to have that in the family now and a a to have that in the family now and a a to have that in the family now and a a very good addition. But along came also very good addition. But along came also very good addition. But along came also with it came three non-insurance with it came three non-insurance with it came three non-insurance businesses. There were a variety of businesses. There were a variety of businesses. There were a variety of other ones. They're tucked into the other ones. They're tucked into the other ones. They're tucked into the appropriate place and other businesses, appropriate place and other businesses, appropriate place and other businesses, but one of them that is standing that but one of them that is standing that but one of them that is standing that stood alone was WW Steel. And it's a it stood alone was WW Steel. And it's a it stood alone was WW Steel. And it's a it was a familyfounded company. It had was a familyfounded company. It had was a familyfounded company. It had transitioned to Rick Cooper. He's he's transitioned to Rick Cooper. He's he's transitioned to Rick Cooper. He's he's here over in the manager section. He's here over in the manager section. He's here over in the manager section. He's the CEO. And it's a remarkable business. the CEO. And it's a remarkable business. the CEO. And it's a remarkable business. They create basically they contribute uh They create basically they contribute uh They create basically they contribute uh steel into a variety of core steel into a variety of core steel into a variety of core infrastructures. It can be bridges. It infrastructures. It can be bridges. It”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“infrastructures. It can be bridges. It can be stadiums. It can be arenas. Theircan be stadiums. It can be arenas. Theircan be stadiums. It can be arenas. Their most famous one is the uh Las Vegasmost famous one is the uh Las Vegasmost famous one is the uh Las Vegas sphere. And here we bought an insurancesphere. And here we bought an insurancesphere. And here we bought an insurance company and and Warren has touched oncompany and and Warren has touched oncompany and and Warren has touched on this. We sort of had these nice add-onsthis. We sort of had these nice add-onsthis. We sort of had these nice add-ons that I'm not sure we spent a lot of timethat I'm not sure we spent a lot of timethat I'm not sure we spent a lot of time valuing that side of it, but incrediblevaluing that side of it, but incrediblevaluing that side of it, but incredible additions to the Berkshire family andadditions to the Berkshire family andadditions to the Berkshire family and and that really comprises the the metalsand that really comprises the the metalsand that really comprises the the metals group. Now, if we move to the secondgroup. Now, if we move to the secondgroup. Now, if we move to the second group is the chemical group we havegroup is the chemical group we havegroup is the chemical group we have within the industrial sector. We havewithin the industrial sector. We havewithin the industrial sector. We have three of those. We have Lubberol goingthree of those. We have Lubberol goingthree of those. We have Lubberol going back to 2011. We've touched on thatback to 2011. We've touched on thatback to 2011. We've touched on that business many times. We then acquiredbusiness many times. We then acquiredbusiness many times. We then acquired Oxycam last year.Oxycam last year.Oxycam last year. Uh associated with Oxycam, we announcedUh associated with Oxycam, we announcedUh associated with Oxycam, we announced the acquisition. We closed it on Januarythe acquisition. We closed it on Januarythe acquisition. We closed it on January 2nd.2nd.2nd. Very nice addition. Uh I would say theyVery nice addition. Uh I would say theyVery nice addition. Uh I would say they they provide they produce two corethey provide they produce two corethey provide they produce two core commodities. So it's more a commoditycommodities. So it's more a commoditycommodities. So it's more a commodity chemical business and they're valued”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“chemical business and they're valued commodities in the again industrial sector. but their plants can't be replicated. That would not be easy. So, we've got valuable assets. And then the third piece of the Chemical Group is a company called LSPI. And I'm just highlighting because it's a it's a it's a real gem for for our owner shareholders. But what that does is it it creates a drag reduction agent that allows oil to move through the through a pipeline. And you can imagine in the environment we're in right now with the with the the fundamental supply and demi demand imbalance on oil, the more oil that can be moved through those pipelines and you can't quite double it, but you can get darn close. They have an amazing product and obviously in in very high demand. Now, the last thing I'll just touch on with the industrial group is we have”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“with the industrial group is we have Marman. Excellent business. And the reason I'm touching on it at the end, it's it's really amazing because it's the catchall. It touches our rail industry or the industry. It touches the energy industry. It touches the metal industry. It touches the chemical industry. It touches in all the core industries in the US and again a remarkable asset that we have and and will continue to create strong value for our owners and shareholders. Now, the second piece of the manufacturing group is our building products group. I'm not going to go through all the businesses in there because we have one that is the bellweather and it tells you how the rest of them are doing. That's Clayton Homes. the other businesses will their results follow very much very closely that because with Clayton Homes we're building manufactured homes or sight”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“building manufactured homes or sight build homes and there's a lot that goes into it and our other companies provide both products to them and across that space. So it could be the insulation, paint, carpet, a variety of other things. If you look at Clayton's results, if you go to the manufactured side of the business, our results are down on true homes manufactured and sold down approximately 10%. A little better than the industry average, but that gives you a feel for it. And if you go to the site build, i.e. homes we were home builder, they're down around 5%. And the numbers I've been seeing for the last quarter are probably more like 7% across the industry. Uh and that and that's obviously driven by where interest rates are and certain other challenges for the uh for the consumer. But where's the opportunity and and and I'll touch on the challenge.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and and and I'll touch on the challenge. Where's the opportunity in these businesses and and how is Clayton tackling it? Um, it's very much around pursuing the American dream and can we help deliver that. And what I what I have is a going to have our team bring up a video uh a slide that highlights this is actually a what we call a crossmod home. We have it in the exhibit hall. It got moved in. Had to cut the back off a little bit. So, it's not quite the full size if you're if you're comparing it to this. But the reality is um this is where the opportunity is is within Clayton. We want to deliver on uh an affordable home to the American consumer. This home you're looking at, we thank you and and thank you to our Clayton team. Including the lot price, assuming it's in the 40,000 range, and there's a lot of place in America where it's well”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“of place in America where it's well below that. We recognize some others. Uhbelow that. We recognize some others. Uhbelow that. We recognize some others. Uh it may be greater, but we can deliverit may be greater, but we can deliverit may be greater, but we can deliver this home onsite built two-bedroom,this home onsite built two-bedroom,this home onsite built two-bedroom, uh family home, living space, very veryuh family home, living space, very veryuh family home, living space, very very beautiful living space for $249,000beautiful living space for $249,000beautiful living space for $249,000 delivered, including the lot. That'sdelivered, including the lot. That'sdelivered, including the lot. That's that's absolutely incredible. That'sthat's absolutely incredible. That'sthat's absolutely incredible. That's delivering affordability to thedelivering affordability to thedelivering affordability to the consumer.Now, the cross mod, how can we get it toNow, the cross mod, how can we get it toNow, the cross mod, how can we get it to that price? 70% of that home is built inthat price? 70% of that home is built inthat price? 70% of that home is built in our manufacturing side of ourour manufacturing side of ourour manufacturing side of our facilities. So those manufacturing homesfacilities. So those manufacturing homesfacilities. So those manufacturing homes we produce, we now use it. The last 30%we produce, we now use it. The last 30%we produce, we now use it. The last 30% is built by our site builders. Theyis built by our site builders. Theyis built by our site builders. They bring the street appeal and all thebring the street appeal and all thebring the street appeal and all the features that as a homeowner they mayfeatures that as a homeowner they mayfeatures that as a homeowner they may want. So it's a exceptional product. Nowwant. So it's a exceptional product. Nowwant. So it's a exceptional product. Now we don't stop there. We still have awe don't stop there. We still have awe don't stop there. We still have a very strong culture around thevery strong culture around thevery strong culture around the manufactured homes and and how how canmanufactured homes and and how how canmanufactured homes and and how how can we get you know what's the extreme onwe get you know what's the extreme onwe get you know what's the extreme on that? Well, if we deliver a single andthat? Well, if we deliver a single and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that? Well, if we deliver a single and this is a thousand square feet. If wethis is a thousand square feet. If wethis is a thousand square feet. If we take it to the manufacturing home andtake it to the manufacturing home andtake it to the manufacturing home and think of a traditional manufacturedthink of a traditional manufacturedthink of a traditional manufactured home, and our team probably won't likehome, and our team probably won't likehome, and our team probably won't like it, but it's more the the box squareit, but it's more the the box squareit, but it's more the the box square box, but it it but what it does createbox, but it it but what it does createbox, but it it but what it does create is a home. It can be a two-bedroom withis a home. It can be a two-bedroom withis a home. It can be a two-bedroom with a um again, very nice living space, verya um again, very nice living space, verya um again, very nice living space, very well done. Uh now has a 30-year pluswell done. Uh now has a 30-year pluswell done. Uh now has a 30-year plus life on these assets just like this one.life on these assets just like this one.life on these assets just like this one. they can get a 30-year mortgage on thethey can get a 30-year mortgage on thethey can get a 30-year mortgage on the cross mod or on a manufactured home now.cross mod or on a manufactured home now.cross mod or on a manufactured home now. So, that's the quality we're building itSo, that's the quality we're building itSo, that's the quality we're building it to. And we can now do a singleto. And we can now do a singleto. And we can now do a single manufactured home uh for just undermanufactured home uh for just undermanufactured home uh for just under $35,000. We can deliver it. They still$35,000. We can deliver it. They still$35,000. We can deliver it. They still have to get their lot or rent one, buthave to get their lot or rent one, buthave to get their lot or rent one, but the reality is we're creating homes thatthe reality is we're creating homes thatthe reality is we're creating homes that people can afford and that's reallypeople can afford and that's reallypeople can afford and that's really where the opportunity is is withinwhere the opportunity is is withinwhere the opportunity is is within Clayton. So very proud of what ourClayton. So very proud of what ourClayton. So very proud of what our team's doing there. Now lastly, I'm”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“team's doing there. Now lastly, I'm going to move to the service and and retailing business. I'm not going to dive into it in our consumer products business. again we'll have Adam here but when I think of those businesses and and Adam's been in that role as I said so in since December very much um learning the businesses getting to know the management team like myself and and and how we've always done it very will be very focused on capital allocation and the risk and but but also very focused on helping the team achieve operational excellence across those businesses. Now, if you think of those businesses across those 32 businesses, we have a wide spectrum of where they are in their life cycle. We have some that are still growing and growing very quickly. We have some that are growing at a much smaller pace, but still growing. And then we have some”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“still growing. And then we have some that I would call in the more mature cycle but still creating a value product to the consumer customer and deploying and and creating capital producing cash flows that often within those businesses will redeploy across our other businesses and we'll have that chance to discuss that with with Adam. Now, the last thing I just want to touch on before we move to the second session and I wrap up here, I'm going to move to our balance sheet and and activity associated with that. In our first quarter of the of 2026, we purchased uh $235 million of of Birkshire stock. Um you can see that reflected on the on the slide. Um, and we've talked about this often, but when do we purchase stock? It's when our intrinsic value, again, conservatively determined, exceeds the current price of our share. And we do that literally. Um,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“our share. And we do that literally. Um, Warren and I will be discussing this on a daily basis and and how do we feel around the the overall value. It's not daily, but it we think about it daily. And the reality is there's a lot of different ways to to calculate intrinsic value. It can be a simple premium over book value. You can take book value because we have everything at a historical cost basis and try to adjust our various companies at a BNSF is recorded on the books at the original price we bought it at versus what's it valued at today. You can go through that exercise. Or if I think of it more as how we would think of businesses when we buy a stock or a full company, we think of it as we have our balance sheet, we know what our cash is, we know what our US treasuries are, we know what our in equity investments are, they're marked”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“equity investments are, they're marked to market, and then we have our operating companies in place. And that's where we have to think about what are the long-term econ economic uh prospects of those businesses 5 years 10 years from now. And then the other important part of that equation is how do we redeploy that capital that comes off of it. And that's really the the approach we take to the intrinsic uh values. Now let's move to our balance sheet. Uh the the the very specific numbers. Um, there's a lot of numbers here. Again, I'll touch on a few captions. If you look at our cash and US Treasury bills, there's a risk that people use the 397.4 billion as the headline number because that is our cash and US treasury sitting there at the end of March. However, and we don't like these type of adjustments, but it is important to communicate it. There is 17.2 2 billion of payables”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“close to 10.5 billion dollars of income and related cash flows in in the first quarter. We also uh would have incurred certain capital expenditures against our businesses. We incur those to either ma reduce risk in the businesses to manage those businesses on a sustainable basis or to pu pursue growth. That was like I said just under 5 billion. Again we we are involved in our management teams as they decide to deploy that capital and very comfortable with that. And then the other piece of the equation in the first quarter was we closed on the oxy transaction. $9.5 billion flowed out associated with that. Very pleased with that. Now, we did have two transactions last year that we announced. Oxycam, we announced it and closed on it in this year. Last year, we announced Bell Labs, a smaller transaction. We're fortunate to have it join our company, Steve Levy,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“to have it join our company, Steve Levy, and uh uh his team. Um great group there. It's our uh Warren likes to say we finally delivered uh on on Charlie's objective around uh we have a rat poison company that uh we we we value highly, but it's it's an exceptional business. But the reality is that's not in that number. We had the oxy transaction resulted in a little more than a $3 billion decrease in our our results. So with that, a very wholesome business update. So, I appreciate uh the opportunity to share where our businesses are and where they're going. So, thank you. Now, I'm very excited to I'm going very shortly have Ajit join us on stage uh and we'll we'll move to the Q&A. But as we as we transition to that session, we'll have the GEICO video narrated by Nancy. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Japan. And last year we got a chance to spend some time with them and talk to them in very general terms about what the two of us could be doing and should be doing with each other.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“after that initial conversation which probably took place nearly a year ago uh things moved fairly quickly.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So to to sort of get get to the bottom line um in March we finally announced a transaction with them. That transaction has three legs to it. uh I'll describe to you each one of them and that'll give you an idea of uh what the relationship is right now and we've got a long way to go of course. Uh firstly we bought some stock in the company just a simple transaction we wrote a check for $1.8 billion US and we got 2.5% of the stock of Tokyo Marine and Fire.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“That was one part of the transaction. Secondly, they have a good and profitable book of business in terms of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“take it from here. Well, uh, well, Warren from Omaha, very astute question. Um, very astute question. Um, very astute question. Um, uh, if if if I think of what we've uh, if if if I think of what we've uh, if if if I think of what we've already discussed this morning, which is already discussed this morning, which is already discussed this morning, which is our culture and values, and highlighted our culture and values, and highlighted our culture and values, and highlighted that's the bedrock of Berkshire, then that's the bedrock of Berkshire, then that's the bedrock of Berkshire, then what did it create? It created the what did it create? It created the what did it create? It created the foundation that we have today and that's foundation that we have today and that's foundation that we have today and that's these this incredible set of assets that these this incredible set of assets that these this incredible set of assets that exists within within Berk
hire. We have exists within within Berk
hire. We have exists within within Berk
hire. We have uh our insurance business uh led by Jeet uh our insurance business uh led by Jeet uh our insurance business uh led by Jeet and his team and we've talked about the and his team and we've talked about the and his team and we've talked about the the it being the heart with talent and the it being the heart with talent and the it being the heart with talent and opportunities because we have capital uh opportunities because we have capital uh opportunities because we have capital uh available and it'll be available at available and it'll be available at available and it'll be available at different times but we've got different times but we've got different times but we've got significant opportunities there. If I significant opportunities there. If I significant opportunities there. If I think of our uh our non-insurance think of our uh our non-insurance think of our uh our non-insurance businesses, I I spent a lot of time on businesses, I I spent a lot of time on businesses, I I spent a lot of time on those, but we've got unique those, but we've got unique those, but we've got unique opportunities on the on the operational opportunities on the on the operational opportunities on the on the operational excellence side and we'll pursue them excellence side and we'll pursue them excellence side and we'll pursue them and they'll be incremental investment”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and they'll be incremental investment opportunities in there. Uh we have our equity investments as we know and we also have a very important asset. We have our cash in US treasuries and it it serves a couple purposes. One, uh, and you've heard Warren Charlie say this before, I've said it. We do not intend to be beholden to anyone. We start with that position. Thank you. And it's how we manage Berkshire and we'll continue to manage Berkshire. Now that asset the cash and treasuries also creates a unique opportunity. Um it creates the opportunity to deploy it across these different groups. It can be uh and and and it will be dependent upon the opportunity i.e. is there is it a strong value proposition, but if it presents itself, we'll be prepared to act decisively and with and with significant capital. That's what that's what it's there for. Um and we have will”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“what it's there for. Um and we have will we will and and and do havewe will and and and do havewe will and and and do have opportunities on the within the equityopportunities on the within the equityopportunities on the within the equity investments that we uh we currently haveinvestments that we uh we currently haveinvestments that we uh we currently have and and beyond that we have ourand and beyond that we have ourand and beyond that we have our operating businesses as I said and ouroperating businesses as I said and ouroperating businesses as I said and our and our and and there it can beand our and and there it can beand our and and there it can be deploying capital back into thosedeploying capital back into thosedeploying capital back into those businesses as I touched on the capitalbusinesses as I touched on the capitalbusinesses as I touched on the capital expenditure side or it can be theexpenditure side or it can be theexpenditure side or it can be the incremental opportunity to acquire 100%incremental opportunity to acquire 100%incremental opportunity to acquire 100% of a of a business and Then there's theof a of a business and Then there's theof a of a business and Then there's the opportunities that Ajit's alreadyopportunities that Ajit's alreadyopportunities that Ajit's already alluded to on the uh insurance side. Butalluded to on the uh insurance side. Butalluded to on the uh insurance side. But what's the other unique thing is uh yes,what's the other unique thing is uh yes,what's the other unique thing is uh yes, Berk
hire is a conglomerate and weBerk
hire is a conglomerate and weBerk
hire is a conglomerate and we recognize that. But we are uniquerecognize that. But we are uniquerecognize that. But we are unique conglomerate in that we can move ourconglomerate in that we can move ourconglomerate in that we can move our capital very efficiently and that's thecapital very efficiently and that's thecapital very efficiently and that's the value of the the conglomerate is we canvalue of the the conglomerate is we canvalue of the the conglomerate is we can move our capital very efficiently acrossmove our capital very efficiently acrossmove our capital very efficiently across each of those groups. We can move iteach of those groups. We can move iteach of those groups. We can move it from insurance to non-insurance intofrom insurance to non-insurance intofrom insurance to non-insurance into”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“from insurance to non-insurance into equities or if we so choose to hold it in cash or back across those in a very tax efficient way. I would also add to the fact that um uh how are we unique as a conglomerate? We live by the fact that we hate bureaucracy. We do not embrace in in in our Thank you. Yes. Ajit's the biggest fan. He reminds me constantly and I love it. I treasure it. But no, we we've heard many times the ABCs, the arrogance, bureaucracy, complacency that can creep into a company will kill a company. And we intend to uh never allow that to happen. So we have this unique opportunity to both take the businesses we have today, take that foundation and build upon it. We also have that capital to be deployed back into them. How will personally myself and the team define success? We'll define success is can we ensure that Berk
hire endures in its current”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you, Jeep. Let's go to the now truly the Q&A session. Uh Becky, we'll start with with you and thank you for being so patient. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“we can pretty much in a fairly quick way. Yes, we focus on those, but we'll get a very quick view on another using technology. We'll probably look at those other 15 risks and have a strong view on it. Is that fair?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So using it within the businesses but well aware it's evolving I think is a fair way.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Sure. Um, I think I think our one of our greatest strengths at Berk
hire is patience and being disciplined when it comes to allocating our capital. There'll there will be opportunities that come over time and and for yourself and it doesn't mean there's not opportunities now, but it doesn't mean you need to uh deploy all your capital or or spend all your money right now. And that's really our approach. we take every day and we we recognize we've got a a significant asset in in our cash and US Treasuryy's using it as our ourselves as an example and I would think of uh the cash you're holding is that and and that's an asset. It's a great opportunity. You'll you'll you'll feel”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“opportunity. You'll you'll you'll feelopportunity. You'll you'll you'll feel the moment or or or feel there's a athe moment or or or feel there's a athe moment or or or feel there's a a strong value proposition with anstrong value proposition with anstrong value proposition with an opportunity. When do we see those? Weopportunity. When do we see those? Weopportunity. When do we see those? We we've outlined our investmentwe've outlined our investmentwe've outlined our investment philosophies which is one we very muchphilosophies which is one we very muchphilosophies which is one we very much have to understand what we're investinghave to understand what we're investinghave to understand what we're investing in. So we want to have a strong it canin. So we want to have a strong it canin. So we want to have a strong it can be you touched on technology and thebe you touched on technology and thebe you touched on technology and the things you're seeing there and thethings you're seeing there and thethings you're seeing there and the evolution and how fast it's allevolution and how fast it's allevolution and how fast it's all changing. Um I always start with and Ichanging. Um I always start with and Ichanging. Um I always start with and I know we always have at Berk
hire. Do weknow we always have at Berk
hire. Do weknow we always have at Berk
hire. Do we understand this business? Do weunderstand this business? Do weunderstand this business? Do we understand the opportunity? And moreunderstand the opportunity? And moreunderstand the opportunity? And more importantly, do we understand the risks?importantly, do we understand the risks?importantly, do we understand the risks? Then we want to have a very uhThen we want to have a very uhThen we want to have a very uh understandable view of what the economicunderstandable view of what the economicunderstandable view of what the economic prospects look like for the next 5 10prospects look like for the next 5 10prospects look like for the next 5 10 years. Not not yes the next year mattersyears. Not not yes the next year mattersyears. Not not yes the next year matters but we're not in that investment for abut we're not in that investment for abut we're not in that investment for a year. It has to be a long-term view ofyear. It has to be a long-term view ofyear. It has to be a long-term view of where that uh where that opportunity”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“where that uh where that opportunity will go. We take it one piece one step further. We're going to be in these investments forever. So we think that way and we need to uh we we like to have a strong view on the management team that they're they're capable and operate with with high integrity and if if we can get to that position but the most important one being then at the end the value has to work for us to deploy our capital. We're we're not anxious to just deploy capital into subpar opportunities. We want to know it meets our principles and then we'll as I said earlier earlier we'll act uh decisively both quickly and with significant capital.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“No.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you, Becky. So, obviously, yes, uh the the many years of uh operating of variety Berk
hire Hathway Energy and then in the role of the um vice chairman of of non- insurance operations. Fortunately, that was um Aene and I were in those co- roles for for the past eight years, nine years now. But that created a a very significant opportunity to for myself personally to understand those businesses and and as I've already touched on, we have exceptional businesses, exceptional leadership”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“businesses, exceptional leadership there, but there's still opportunities there. But but it does rem does I'll spend a certain amount of time associated with those businesses and and make sure we're allocating our capital properly and we're still uh thinking about risk across those businesses and encouraging operational excellence because listen having been inside a business uh it's easy to look at your internal metrics and convince yourself you're doing okay and you have to look outside and say well what is the customer seeing feeling how what are our competitors doing and I think that's what we can bring on the operational side I've touched on bringing uh uh Adam on or or him taking on the incremental role across 32 businesses he'll bring that great operating knowledge and we have Ajit on the uh insurance side now when it comes to the equity portfolio”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“when it comes to the equity portfolio and again allocating time. Um, still we have significant opportunities there. Uh, as we look at deploying our capital that that's on the balance sheet and I I shared where our uh our cash and and and US treasuries were. Um, I would highlight if you think of our equity portfolio as it as it exists today, I I articulated this in the letter. It's it's in a it's in a very uh we have a concentrated portfolio and we highlighted that by calling it across the core but it's what the best name is really a concentrated portfolio of investments and we had our our core for you and you concentrated investments I highlighted in um uh in the letter we have our Japanese investments and it's interesting if you then go to the next number of companies where we have positions that are very significant. Uh and I would add that um”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Uh and I would add that um uh associated with those we may still be uh associated with those we may still be uh associated with those we may still be acquiring shares or or rationalizing acquiring shares or or rationalizing acquiring shares or or rationalizing what's the right position across that what's the right position across that what's the right position across that portfolio. So the first group when I portfolio. So the first group when I portfolio. So the first group when I highlighted it was just under 200 highlighted it was just under 200 highlighted it was just under 200 billion and and remains at that we have billion and and remains at that we have billion and and remains at that we have and closer to say 85 billion right now. and closer to say 85 billion right now. and closer to say 85 billion right now. you then add in associated with be it you then add in associated with be it you then add in associated with be it the other investments you have a a BFA a the other investments you have a a BFA a the other investments you have a a BFA a Chevron a Google companies like that um Chevron a Google companies like that um Chevron a Google companies like that um there's another $70 billion of there's another $70 billion of there's another $70 billion of investments investments investments and and what that highlights is a very and and what that highlights is a very and and what that highlights is a very significant portion of our total significant portion of our total significant portion of our total investments are highly concentrated and investments are highly concentrated and investments are highly concentrated and sit across a limited portfolio that the sit across a limited portfolio that the sit across a limited portfolio that the the active management of that is is the active management of that is is the active management of that is is really limited is really what I'm what really limited is really what I'm what really limited is really what I'm what I'm highlighting. We know those I'm highlighting. We know those I'm highlighting. We know those businesses well. We know the management businesses well. We know the management businesses well. We know the management teams. Those are the things that Warren teams. Those are the things that Warren teams. Those are the things that Warren and I would still be absolutely and I would still be absolutely and I would still be absolutely collaborating on and discussing. We”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“collaborating on and discussing. We don't have to discuss them every day, but if there's something going on across those businesses, we'd be discussing it that week or that month. Um, and maybe it's where they're going or what we've we've learned. the Japanese companies just announced their results in the last 48 hours and that was a an active conversation and I that Warren and I had just around their results and the businesses and what we're seeing there uh yesterday morning. So that that's those are core but it doesn't mean we just set them aside or they're concentrated investments. We're constantly aware of them and evaluating them. Uh Ted oper Ted manages another 20 billion or just under 20 billion of our our capital and and his responsibilities go far beyond that. He obviously helps us uh across a variety of our other opportunities or helping us assess risk”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“opportunities or helping us assess risk or capital deployment in our in our businesses. So we're fortunate to have that. But it's a it's a portfolio that's very manageable when you think of the the management around it and the and what's required of it. the the as as we've touched already is the opportunity to deploy that cash in US treasuries at the right time is a very significant opportunity including equities including what we may see on our our on our within the operating businesses and including the the insurance side but um um so when it comes to allocating the time uh yes there's a certain amount of time spent on operations and and we'll prioritize that because we see a huge opportunity to continue to uh uh improve and close those gaps and and operational excellence. We see opportunities within our existing portfolio, but that's that”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“our existing portfolio, but that's that is either adding to them or oris either adding to them or oris either adding to them or or rightsizing it and then constantlyrightsizing it and then constantlyrightsizing it and then constantly evaluating what other opportunities areevaluating what other opportunities areevaluating what other opportunities are out there either in whole totalityout there either in whole totalityout there either in whole totality acquiring a company that's private oracquiring a company that's private oracquiring a company that's private or public. Equally looking at what are thepublic. Equally looking at what are thepublic. Equally looking at what are the incremental opportunities if we're goingincremental opportunities if we're goingincremental opportunities if we're going to own a piece of a company and andto own a piece of a company and andto own a piece of a company and and those are evaluated in the same fashionthose are evaluated in the same fashionthose are evaluated in the same fashion i.e. We we look at as I said economicsi.e. We we look at as I said economicsi.e. We we look at as I said economics and and really tied to the the the lastand and really tied to the the the lastand and really tied to the the the last answer. Ajit any thoughts there?answer. Ajit any thoughts there?answer. Ajit any thoughts there?”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Well said, Warren. No, but uh obviously we recognize it and it the last thing Iwe recognize it and it the last thing Iwe recognize it and it the last thing I just say around that and I owe it. Ijust say around that and I owe it. Ijust say around that and I owe it. I mean, when you think of our operatingmean, when you think of our operatingmean, when you think of our operating companies, and I touched on this, wecompanies, and I touched on this, wecompanies, and I touched on this, we have a very deep bench. We havehave a very deep bench. We havehave a very deep bench. We have exceptional operators that understandexceptional operators that understandexceptional operators that understand their business. They understand theirtheir business. They understand theirtheir business. They understand their industry, their customers. Yes. Do weindustry, their customers. Yes. Do weindustry, their customers. Yes. Do we have still have opportunities to gethave still have opportunities to gethave still have opportunities to get better? Yeah, it's continuousbetter? Yeah, it's continuousbetter? Yeah, it's continuous improvement and we'll close those gaps,improvement and we'll close those gaps,improvement and we'll close those gaps, but we have exceptional teams there andbut we have exceptional teams there andbut we have exceptional teams there and be it myself, Adam, we spend our timebe it myself, Adam, we spend our timebe it myself, Adam, we spend our time making sure we're comfortable how themaking sure we're comfortable how themaking sure we're comfortable how the capital's allocated. Do we understandcapital's allocated. Do we understandcapital's allocated. Do we understand the risks and then are we aware of thosethe risks and then are we aware of thosethe risks and then are we aware of those gaps? So, thank you Becky.gaps? So, thank you Becky.gaps? So, thank you Becky.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. So again, when it comes to our capital allocation approach and and the and the long-term uh approach we've taken, it's very much aligned with our owners and our shareholders that are here. Uh they've taken a very long-term approach around their their investment. they've we're fortunate to have this unique ownership base within our our shareholdings and again over the long term there will be significant opportunities for Berkshire and and this is where it's back to the patience and the discipline around capital allocation. Do we have any idea what uh will occur tomorrow or will that event be 3 years from now, 2 years from now? But there will be dislocations in markets that again will allow us to act and that's where the both disciplined approach knowing how we're going to uh our investment philosophy around uh”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“our investment philosophy around uh those activities. And and I would add it's not that we don't see exceptional companies out there today that we'd love to own a and I'll be careful because I I wouldn't want to say we we long term we'd be happy to own those companies because there there's excellent companies that have excellent management teams that that uh we evaluate and I would say when you think of the world it doesn't mean there's multiple handfuls of those type of companies but they're there but the price relative to the opportunity, the economic prospects of that company and the related risks. Um, we're not interested in in acquiring those those companies at that at that price and that can be a piece of them or all of them. That that doesn't mean that opportunity won't be there in the future. It's what we spend our time preparing for. Uh,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“we spend our time preparing for. Uh,we spend our time preparing for. Uh, i.e. one being disciplined, but twoi.e. one being disciplined, but twoi.e. one being disciplined, but two being aware of of some corebeing aware of of some corebeing aware of of some core opportunities we would treasure or valueopportunities we would treasure or valueopportunities we would treasure or value at the right price. And and that reallyat the right price. And and that reallyat the right price. And and that really ties back to the to the to theties back to the to the to theties back to the to the to the discipline. And I you asked mediscipline. And I you asked mediscipline. And I you asked me personally uh my plan for for patiencepersonally uh my plan for for patiencepersonally uh my plan for for patience for over maybe quote action. Again, itfor over maybe quote action. Again, itfor over maybe quote action. Again, it aligns to uh I took this role and and amaligns to uh I took this role and and amaligns to uh I took this role and and am so fortunate to be in it and work withso fortunate to be in it and work withso fortunate to be in it and work with Vijet and others, but we do it becauseVijet and others, but we do it becauseVijet and others, but we do it because we we love and believe in Berk
hire.we we love and believe in Berk
hire.we we love and believe in Berk
hire. Warren brought this great commitment toWarren brought this great commitment toWarren brought this great commitment to to Berkshire, a great understanding ofto Berkshire, a great understanding ofto Berkshire, a great understanding of Berk
hire and passionBerk
hire and passionBerk
hire and passion and and with that he wanted to createand and with that he wanted to createand and with that he wanted to create something that was very long-termsomething that was very long-termsomething that was very long-term including the opportunities it would itincluding the opportunities it would itincluding the opportunities it would it would create. uh personally and I knowwould create. uh personally and I knowwould create. uh personally and I know all of us we bring that that sameall of us we bring that that sameall of us we bring that that same passion and we fully intend to do itpassion and we fully intend to do itpassion and we fully intend to do it consistent with how we've uh how we'veconsistent with how we've uh how we'veconsistent with how we've uh how we've”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I think it applies to insurance and I think your earlier comment I mean it is it's so applicable across all our businesses. Uh this it did remind me of one story and I'll just share quickly. We uh we were uh we had acquired a company and we were still in um um having a challenging matter with how we were going to resolve some matters. And I remember the the deposition and I don't want to say it's one of my most proudest moments but it was close to it. They said, "Well, how would you describe Greg as a as a CEO and a manager?" And they said, "Well, all he says is no."”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Thank you. Um yeah, as far as managing the existing portfolio and what's in that, um that portfolio as you as you touched on was”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“portfolio as you as you touched on was put together by Warren, but it is a group of companies that uh Warren understands uh thoroughly and I would be very comfortable that I understand the businesses, the economic prospects of those businesses. So, and that's why when I outlined it in the letter, I was really trying to send the message that yes, we're very comfortable with those. We understand it and and yes, it's a concentrated portfolio, but you know, their businesses will evolve and there's there's risks that may surface. So, we're we'll constantly evaluate it, but it's it's it's a portfolio very very comfortable with. And, you know, Warren Warren touched on Tim's Tim Cook's uh um amazing success with Apple, but it you know, Warren and and and Tim were recently discussing this and and they were talking about Warren didn't”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that value to the to the consumer. I think the the unique opportunity we have and so fortunate is that Warren comes into the office each day. It's fortunate that we get to discuss potential other opportunities that may be out there bringing a different set of skill sets. But in the end, we're going to narrow pretty quickly down to what's what's the opportunity? Why why is it valued? Why does the consumer whoever is using it the whatever industry is it it it is what's why will that company in that product endure and then associated with that where are the risks associated with that and that and that pretty much is how Warren approached it how how I approach it um so the uh when it comes to our existing portfolio yes we'll always be well well aware of what we've invested in. But as far as understanding those the opportunities and risks within them,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“the opportunities and risks within them, very comfortable that uh have a strong view in that and we're comfortable where we're at. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“let's to to but then also myself let's get the insurance managers together our top five along with the jeep and with Mark Hamburg and let's let's sit down and talk about the business. Let's talk let's discuss the the culture and it was a remarkable opportunity for me to one expand my knowledge base on the insurance side and I um obviously been working with the jeep for a number of years and had other board opportunities where I had a a a wide understanding of but then to spend time with the jeet and our team and and have Warren's perspectives it was great and that was literally the first action Warren took and What I could see within that group was a very deep group that of management experience, insurance experience and they absolutely had the same values and culture that uh that Ajit has has highlighted. Now I think when it comes”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“highlighted. Now I think when it comes to culture Ajit touched on it already which is it is challenging to keep a culture where you maintain that discipline. uh because as he said in action and telling people, you know, take a few months off when they're used to being active is not easy if they're if they're that type of uh underwriter or or or selling product. So, that's the delicate balance. But when it when it comes to we're fortunate he's got an exceptional group that works with them and and then also operates a number of our critical subsidiaries. They're they're deep in both knowledge and talent. I would then also uh highlight our board takes the succession issues very sincere seriously both with Ajit and myself. Uh we have a we have a plan they have a plan in place and they discuss it. So uh if Ajit were unable to perform uh in his role today”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“I had a very uh long and extensive answer last year to the to the um question. Um and and it it is an important one, but I think it's one we have to recognize. Uh when we and we we have I'll touch on rail our rail too. We we have certain companies where we very much operate and this would be our utilities. It would be our our including our our pipelines. Um we we operate as a steward of those assets. We we operate as a steward of those assets effectively for our states and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“assets effectively for our states and for our our customers.for our our customers.for our our customers. And whenever we approach resources, forAnd whenever we approach resources, forAnd whenever we approach resources, for example, that we may own or what we'reexample, that we may own or what we'reexample, that we may own or what we're going to build, it's very much first andgoing to build, it's very much first andgoing to build, it's very much first and foremost, we absolutelyforemost, we absolutelyforemost, we absolutely need to comply with the con the uhneed to comply with the con the uhneed to comply with the con the uh current laws that are in place,current laws that are in place,current laws that are in place, including the federal laws. Um, so we weincluding the federal laws. Um, so we weincluding the federal laws. Um, so we we know what those parameters are and as weknow what those parameters are and as weknow what those parameters are and as we see federal law and state law across oursee federal law and state law across oursee federal law and state law across our many states, but the federal law theremany states, but the federal law theremany states, but the federal law there there are things they do and there arethere are things they do and there arethere are things they do and there are things implemented to uh reduce thethings implemented to uh reduce thethings implemented to uh reduce the impact on the environment. We're veryimpact on the environment. We're veryimpact on the environment. We're very sensitive to that and our our teams aresensitive to that and our our teams aresensitive to that and our our teams are absolutely committed to both complyingabsolutely committed to both complyingabsolutely committed to both complying and and absolutely doing it right. Um, Iand and absolutely doing it right. Um, Iand and absolutely doing it right. Um, I would then add that if we're discussingwould then add that if we're discussingwould then add that if we're discussing our facilities, for example, across theour facilities, for example, across theour facilities, for example, across the river in in Iowa,river in in Iowa,river in in Iowa, um, we we have plans on resources andum, we we have plans on resources andum, we we have plans on resources and when we'll um retire our our our coalwhen we'll um retire our our our coalwhen we'll um retire our our our coal units potentially and and our gas units.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“units potentially and and our gas units. That's very much driven by state policy. It's the state will decide, i.e. through their policy legislature and through our our regulatory processes uh how we'll operate what ass how long we operate these assets because in the end it's that those customers that both uh bear the bear the cost and bear the risk and very much we're we are very respectful of that and as I said we're stewards of that do we provide input into that process absolutely so for example I I know I touched on this last year. But if I look at our Iowa utility, uh this is this changes every year because of the load growth we've discussed. But if we look at on a on a on a 12-month 365day period, uh 93, it'll be very close on this. Approximately 93% of our energy came from renewable energy. That's remarkable. They they absolutely lead the nation and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“They they absolutely lead the nation and we've done that in a way where we could do it in an affordable way. But yes, we still have our carbon resources there. We still operate our our coal plants. We need them to deliver uh uh as I would call protection to the system. I it stabilizes it and there's peak times we need it. But do we use them less? Absolutely. But that's a policy our state made many years ago and we provided a lot of input as I said and and we've deployed the capital to um ensure that could be delivered. But the reality is um state by state they'll decide what resources we'll deploy to serve the customers and they'll and they'll also very much provide us input on when we'll retire our units. The real challenge going forward and it's it's well beyond Iowa because I think Iowa we and and our other utilities we approach”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and and our other utilities we approach it in a very prudent way and we've got it in a very prudent way and we've got it in a very prudent way and we've got uh one i.e. prudently. We're doing it uh one i.e. prudently. We're doing it uh one i.e. prudently. We're doing it consistent with our our state policy, consistent with our our state policy, consistent with our our state policy, but want to do it in a call it a frugal but want to do it in a call it a frugal but want to do it in a call it a frugal way. We're trying to we're not we're not way. We're trying to we're not we're not way. We're trying to we're not we're not building for just sake of building. building for just sake of building. building for just sake of building. We're trying to do things that are are We're trying to do things that are are We're trying to do things that are are that we feel are best for our states. that we feel are best for our states. that we feel are best for our states. But but the challenge is when you talk But but the challenge is when you talk But but the challenge is when you talk about the hyperscalers and the data about the hyperscalers and the data about the hyperscalers and the data centers centers centers uh there there's that's putting a lot of uh there there's that's putting a lot of uh there there's that's putting a lot of pressure on the system and there'll be a pressure on the system and there'll be a pressure on the system and there'll be a you know if you if you look at the you know if you if you look at the you know if you if you look at the amount of gas units purchased uh amount of gas units purchased uh amount of gas units purchased uh there'll be an incremental amount of there'll be an incremental amount of there'll be an incremental amount of carbon units used as we go forward if carbon units used as we go forward if carbon units used as we go forward if that's going to be a valued if if that's going to be a valued if if that's going to be a valued if if artificial intelligence and the artificial intelligence and the artificial intelligence and the consumers want that uh that and that's a consumers want that uh that and that's a consumers want that uh that and that's a valued product. going to put a lot of valued product. going to put a lot of valued product. going to put a lot of pressure on the systems and on uh the pressure on the systems and on uh the pressure on the systems and on uh the type of assets we use and and the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> yeah so right now>> yeah so right now>> yeah so right now in the insurancein the insurancein the insurance sphere the supply is greater than thesphere the supply is greater than thesphere the supply is greater than the demanddemanddemand And that makes it very difficult to beAnd that makes it very difficult to beAnd that makes it very difficult to be able to carve out a deal that rationallyable to carve out a deal that rationallyable to carve out a deal that rationally is good for the buyer and the seller. Uhis good for the buyer and the seller. Uhis good for the buyer and the seller. Uh when supply is greater than demand, thenwhen supply is greater than demand, thenwhen supply is greater than demand, then it's the seller that loses. So becauseit's the seller that loses. So becauseit's the seller that loses. So because of that, we haven't been active inof that, we haven't been active inof that, we haven't been active in getting involved in writing insurancegetting involved in writing insurancegetting involved in writing insurance for these new facilities, the datafor these new facilities, the datafor these new facilities, the data centers,centers,centers,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yeah.>> Yeah.>> Yeah. >> Yeah. But clearly there is a surge in>> Yeah. But clearly there is a surge in>> Yeah. But clearly there is a surge in demand and as long as supply doesn't godemand and as long as supply doesn't godemand and as long as supply doesn't go crazy, we will get a few days in the suncrazy, we will get a few days in the suncrazy, we will get a few days in the sun sometime in the next few years.sometime in the next few years.sometime in the next few years.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“but again very very uh proud. I would say literally proud uh proud. I would say literally proud uh proud. I would say literally proud because I think the one thing we've because I think the one thing we've because I think the one thing we've always emphasized across our utilities, always emphasized across our utilities, always emphasized across our utilities, across our regulated entities, that across our regulated entities, that across our regulated entities, that would include BNSF, they have to move would include BNSF, they have to move would include BNSF, they have to move certain product that has certain risks certain product that has certain risks certain product that has certain risks and dangers around it. We are a carrier and dangers around it. We are a carrier and dangers around it. We are a carrier of that. We have to that's a an of that. We have to that's a an of that. We have to that's a an obligation that came with with that obligation that came with with that obligation that came with with that railroad. Just like our utilities, there railroad. Just like our utilities, there railroad. Just like our utilities, there are certain things we do that are are certain things we do that are are certain things we do that are absolutely required. And the key is that absolutely required. And the key is that absolutely required. And the key is that we do it consistent with uh what's we do it consistent with uh what's we do it consistent with uh what's required both federally and at the state required both federally and at the state required both federally and at the state level and that we're exceptional level and that we're exceptional level and that we're exceptional stewards of the underlying assets. stewards of the underlying assets. stewards of the underlying assets. So with that So with that So with that uh I just we're going to move a thank uh I just we're going to move a thank uh I just we're going to move a thank you and we're going to move to uh our you and we're going to move to uh our you and we're going to move to uh our next session but let me explain how it's next session but let me explain how it's next session but let me explain how it's going to play out a little bit. So, going to play out a little bit. So, going to play out a little bit. So, we're approaching 11:00. As we we're approaching 11:00. As we we're approaching 11:00. As we transition, we'll we'll we'll move to a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“things that struck out was uh AI and the need for Berk
hire to build out its own tech infrastructure to work across all of its businesses. First and foremost, we recognized we were going to become a builder of technology rather than just a buyer of technology. And that meant that instead of we had a number of systems and we often bought the related applications or software that came with it and yes it's it's a valued uh application but it was disconnected from all our systems. Obviously, we didn't have that ability to then use the information, get to the data. And what they started to talk about is simplifying the infrastructure, making sure we would build what we needed ourselves and deliver solutions back to our customers and we would have clear access to the data. All things that make a lot of sense, but a massive challenge and it doesn't happen”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“challenge and it doesn't happen overnight. So we've started down that journey and one of the first things you have to do is say okay we need a different resource base. So now we're hiring engineers we hire developers in our technology group that help us start to build the solutions we need for these businesses.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“get to where we are with the assets and the sustainability, now it's just a matter of developing it. So now we don't we control our own destiny from that standpoint. We don't have to depend on M&A or any future contracts from anybody in the Middle East or in anywhere internationally. we can decide when we want to develop it in what pace. And so when we can, we're going to develop it. And we're going to develop it as quickly as we can as long as and and it won't happen until we get that last debt payment down so that we're down to 10 billion in debt, principal debt. After that, we're free to um take what the macro will give us while also um spending some of our capital, returning it back to the shareholders through share repurchases and dividend growth. So um so we have the ability to to grow organically to then grow the dividend”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah. And and I'll point out one other thing while while we're going to take what the macro gives us with the um with the growth what we're doing now is creating incremental free cash flow by just reducing our cost and increasing our efficiencies. I think that we have the lowest capital intensity of anybody in our industry and part of that's what Richard Jackson has been driving and to to get us to that level. So, so now with with respect to what the macro is going to give us, I think that this disruption uh in the world with respect to oil, I think that's going to have a a car hangover effect that's going to carry”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“hangover effect that's going to carry on. that's going to, I think, cause shortages and um and probably starting by mid next year, we're going to be in a scenario where there's going to be a lot of places that need to start developing oil faster. And because of our lower break even cost than anybody else, we shouldn't be one of the ones that that are that are first to the gate to start that process because we have a break even of lower than $40.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“we're going to start seeing that prices without some growth starting to happen,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“No, I don't think so. I think he's very he's very engaged with Warren on those discussions. I think he's thinking a lot about the investment portfolio. I think if you look at Apple and KO in particular, they're both going through CEO transitions and they're being managed with excellence and I think inspired a lot by the Berkshire transition. In fact, I talked to Tim Cook last night and that was the first thing he said is he wants to be recognized as the person who's managed succession better than anyone. I said, "Well, you've got a tough a tough comparison”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“know, I think in every one of these cases it's something different. I think in Apple's case, Tim's done this for a long time. I think he has realized that there's an opportunity for product innovation and somebody like John, you know, is head of hardware engineering. You probably couldn't pick a better person for the next decade of Apple and the need for innovation. I think at Coke, Enrique is a fabulous successor. I I would have loved to have seen James stay longer, but I think that, you know,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“stay longer, but I think that, you know, the demands of these jobs are great, especially company like Coca-Cola where you're operating 204 countries around the world and you're traveling to those countries. Um, but I think Enrique will be an excellent successor. I think in Doug's case, he acknowledged that the AI transition is going to be one that probably needs different leadership. And I think in a lot of these cases that you're citing, you have CEOs who realize their limitations and the opportunities for somebody new that's going to continue to create shareholder value for the businesses that they run and they're so convicted to the future success of the company like you see at Berk
hire that they're making the right choices.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“How are we unique as a conglomerate? We live by the fact that we hate bureaucracy.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Ajit's the biggest fan. He reminds me constantly and I love it. I treasure it. But no, we we've heard many times the ABCs, the arrogance, bureaucracy, complacency that can creep into a company will kill a company and we intend to uh never allow that to happen. So we have this unique opportunity to both take the businesses we have today, take that foundation and build upon it.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“If I look at our peak load, i.e. the amount of energy being used from those data centers, it's at 8% of their peak load. And the only reason I highlight that 8% is when I hear people in the industry and all the utilities around us, a lot of states, they're talking about this great opportunity and gez hopefully in the next 5 years they'll be from a relatively starting point. They want to get to the 5 to 10%. and we're already at eight and we see opportunities to grow that by 50% over the next 5 years or or potentially more. But we'll do it in a way and you're starting hear more and more of this across the US. We'll do it in a way”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“across the US. We'll do it in a way where we're not going to impact the costs of our other customers. These users of the i.e. those the the hyperscalers, the data centers and the users of the energy uh they have to bear their full cost.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Right. Totally customers. I think it's definitely welcome news that you know he's trying to expand into data center infrastructure buildout is such a growth area.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Burlington, and Quincy railroads. And then we continued to stitch smaller railroads together to have a route from the Midwest all the way to the Pacific Northwest. We um are made up of 390 predecessor railroads. And some of those railroads actually connected with the Pony Express and our trains were used to sort mail as the train moved across the tracks. That then grew into the present-day BNSF Railway. We operate in 28 states and three Canadian provinces. Every year we move somewhere between 9 and 10 million loads. And we move everything from coal to agricultural commodities to building products, construction products, chemicals. And our largest business segment is our intermoal business. And our interotal business is the movement of trucks from the highway lifted on a container or trailer onto our railroad. Then we haul it the long portion of the route and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“it the long portion of the route andit the long portion of the route and then lift it off again from the thethen lift it off again from the thethen lift it off again from the the train to over the road. And to give youtrain to over the road. And to give youtrain to over the road. And to give you some perspective of the scope of what wesome perspective of the scope of what wesome perspective of the scope of what we move, of those 9 to 10 million units,move, of those 9 to 10 million units,move, of those 9 to 10 million units, over 5 million are inner modal. So we'reover 5 million are inner modal. So we'reover 5 million are inner modal. So we're the industry leader in inter innerthe industry leader in inter innerthe industry leader in inter inner modal. And we lift a container on or offmodal. And we lift a container on or offmodal. And we lift a container on or off our trains every 4 seconds, 24x7, 365our trains every 4 seconds, 24x7, 365our trains every 4 seconds, 24x7, 365 days a year. So that just tells you adays a year. So that just tells you adays a year. So that just tells you a little bit about the scope of what we dolittle bit about the scope of what we dolittle bit about the scope of what we do and how we touch literally every part ofand how we touch literally every part ofand how we touch literally every part of the economy. Everything's foundationalthe economy. Everything's foundationalthe economy. Everything's foundational around safety for us. We're going toaround safety for us. We're going toaround safety for us. We're going to lead the industry in service. We'relead the industry in service. We'relead the industry in service. We're going to continue to be productive andgoing to continue to be productive andgoing to continue to be productive and efficient. But one of the things I'mefficient. But one of the things I'mefficient. But one of the things I'm excited about is the next 177 years. Andexcited about is the next 177 years. Andexcited about is the next 177 years. And so we're at a point now where we'reso we're at a point now where we'reso we're at a point now where we're looking at how do we build that spiritlooking at how do we build that spiritlooking at how do we build that spirit of building and innovation to ourof building and innovation to ourof building and innovation to our technology and our innovation efforts.technology and our innovation efforts.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“And so we created BNSF Tech, which is a new division of BNSF. And it's really focused on taking that moving from looking for commercial solutions and buying technology and speeding that process up and building internally. And so we hired a gentleman by the name of Harry Goend who many of you know came from GEICO and has a long track record of going in and transforming and innovating. And it's not about technology for technologies sake. It's about outcomes. And so, how do we use technology to best position us for the future, to make us a safer railroad, to give the customers a better service product, to drive productivity and efficiency? And so, I'm excited about the opportunities we're going to have going forward to really bring that spirit of building to our technology efforts. So I go back to one of Warren's”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“efforts. So I go back to one of Warren's annual letters to the shareholders and I remember he said that he believed that BNSF would not only be an asset for Berkshire but an asset for our country 100 years from now. And we take that responsibility very seriously. But we also really appreciate that that aligns well with the way that we have to think about our business. We make investments that are very long-term investments and so thinking about that in that longer time frame is really important. Warren always challenges us to think about the businesses that we lead as if it were our own family's company. And you know, I've worked for BNSF since I was 20 years old. So thinking about BNSF as it as if it's my family's company is not a big stretch for me. And I love that perspective of thinking about how do I make sure that I'm passing this company on so as if it were a family”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“in this portfolio. So I just want to say thank you for that because it's not easy delivering sometimes good or bad news but uh it's been phenomenal support. Um, as it relates to the actual the other 31 CEOs in our bucket, um, I have to sort of start with conversation with NetJets because people have been asking me a lot in the last 5 months. So, you're still CEO of NetJets, but how are you going to take on this other role and I I think the journey starts with with the team at NetJets and many of them are here and they're they're incredible. I spent a lot a lot of time over the last 10 plus years with them. I sat up in that stage in the arena in May of 2010 and it was a hard thing to hear but it was the truth and Warren talked about netjets and stated that it was his toughest mistake that year and but for the backing of Berk
hire that we would have been”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Berk
hire that we would have been bankrupt and I don't like repeating bankrupt and I don't like repeating those words and probably shouldn't do it in front of an entire room but it's an important pause because then you have two choices what are you going to go go do and so the team that's sitting with me today and many people back home. Um, I do think we have a wonderful company as Warren talked about with Charlie in 2023 and I just want to say to them, uh, thank you because it's been a rough road to do that and we've accomplished a lot which gets me in to answer your question and and I, you know, I be honest with you. So, thank God I have NetJets cuz I was able to fly around and see a lot of these companies. Unfortunately, all 31 companies are not based out of Columbus, Ohio. So, I've been on our airplanes a lot. Um, and if I'm honest, I was a little concerned about it. Uh, many of”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“little concerned about it. Uh, many of the CEOs had reported directly to Warren. Um, all of them reported to Berk
hire and then here comes this guy, you know, that they're now going to be uh, working with. And I will tell you, one of the things that that struck me is how um, wise the CEOs are. They have the energy, intelligence, integrity that Warren always talks about. But I say wise because of my concerns were quickly allayed when I started talking to them in the sense that they've been listening. I know many in this room don't know the names of those 31 other CEOs, but they know you and they've been listening. Um they absolutely understand uh the playbook that is the uh the ownership manual. By the way, this is the almost today the 30th anniversary. Warren wrote the owner's manual and in that was sort of our business bible on”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“that was sort of our business bible on what we needed to do and I was really pleased every one of our CEOs understands that they've been living that um and that's going to make the interaction uh much easier for me. So uh I feel really good. I feel really good about the form of the CEOs that we have and I know that they have ingrained in them the culture part of the culture certainly is the ownership thinking but the stewardship that that is talked about. We feel a massive and deep responsibility to carry on the stewardship and the legacy of Charlie and and Warren and and work really hard uh for Greg and his team. So uh I feel good about it.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, thank you Becky again. Great to have you back. Thank you for that interview and uh if you'd like to start. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Sure. Um, I'll touch on it and then I'll I'll make sure because it it it impacts really in a variety of ways all our businesses, but um, what I'm most proud of are our businesses. Uh, we operate these businesses for the long run just like we do for obviously for our shareholders. We take a long-term approach there. There's not many days and I used to joke when I more had Adams rule. There wasn't a day I woke up where”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“rule. There wasn't a day I woke up where there the phone the phone wasn't ringing with good news. you know, that phone rang. You knew you're going to have a bit of a challenge and we have that portfolio, but but that's okay. We'd be talking and we always worked our way through it. And we have a team that would lean in and we'd come through and it could be anything. And we never tried to use that as a reason we couldn't do something or get to the to the right place. And what I've seen associated with the uh obviously the the war in Iran and and the and the various conflicts in the Middle East is again a team that is very much taking the approach that that's the situation we're in. We can manage our business and we we very much quickly move to what's the best solution for our customers. how can we deliver and continue to deliver what we've done to”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“continue to deliver what we've done to them and what's their expectations around that and and our teams will work incredibly hard to come up with with solutions. Um I I touched on LSBI, the drag reduction agent on the pipeline company. Um they don't usually sell a lot of product into the Middle East as far as moving. It's more a domestic based product for Canada and the US. When you think of a drag reduction agent on pipelines, literally being uh cargo planes of that that uh chemical being moved in the Middle East to help free up supply and and i.e. remove that uh some of that constraint. So there there's so many things that go on when they start trying to figure out how to solve uh the challenge. Now what I would say is it doesn't mean there's not immediate impacts to our businesses. If you think of companies in America around the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“of companies in America around the globe, petroleum is and ga natural gasglobe, petroleum is and ga natural gasglobe, petroleum is and ga natural gas matter is such a fundamental in input tomatter is such a fundamental in input tomatter is such a fundamental in input to so many products.so many products.so many products. And the reality is if you think IAnd the reality is if you think IAnd the reality is if you think I touched on our chemical grouptouched on our chemical grouptouched on our chemical group their their input istheir their input istheir their input is uh generally a petroleum product and theuh generally a petroleum product and theuh generally a petroleum product and the output is the the various products theyoutput is the the various products theyoutput is the the various products they produce. obviously that that areproduce. obviously that that areproduce. obviously that that are byproducts of that. But their inputbyproducts of that. But their inputbyproducts of that. But their input costs have effectively doubled in a verycosts have effectively doubled in a verycosts have effectively doubled in a very short period of time. But again, we'llshort period of time. But again, we'llshort period of time. But again, we'll manage through that and that's the themanage through that and that's the themanage through that and that's the the beauty of being part of Berk
hire. Theybeauty of being part of Berk
hire. Theybeauty of being part of Berk
hire. They know first we'll take care of ourknow first we'll take care of ourknow first we'll take care of our customer. We'll find the right answer.customer. We'll find the right answer.customer. We'll find the right answer. We'll manage the challenges and theWe'll manage the challenges and theWe'll manage the challenges and the value creation will be there in the end.value creation will be there in the end.value creation will be there in the end. So there's some short-term pressure onSo there's some short-term pressure onSo there's some short-term pressure on our chemical businesses. If you lookedour chemical businesses. If you lookedour chemical businesses. If you looked at their first quarter profitsat their first quarter profitsat their first quarter profits individually, they would be down becauseindividually, they would be down becauseindividually, they would be down because or flat to down because they've got some”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“or flat to down because they've got some challenges. For example, on the on the input side, but they're delivering what the customer needs and that rebalances over a period of time where our prices will move up pursuant to our contracts. We'll be treated fairly in the end in that they'll reset and then may unwind a little bit slower. But the point is um unfortunate situation and and we've got you know men of service and women of service over there and and putting themselves at risk and and and and and that in itself is uh scary because a lot of our employees are are have family involved. But you know as far as running our businesses, it's really heads down. We'll get through this and we'll keep operating everything for the long run. And and again, it includes how we'll operate our assets. We're not going to put the asset at risk to try to get to a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“reflects what's going on with the consumer. And so we're seeing the impact from the conflict in the Middle East in a couple of different ways. First of all, I would say that if you look across our various commodities, it's created an opportunity for some of those commodities just because of the disruption in the supply chain. In addition to that, you know, we see commodities like aggregates and steel, things like that that that are that are favorable and we're seeing an increase in those. But then some of the commodity areas that use energy in the manufacturing of those commodities are certainly being impacted by the increasing fuel prices. The largest segment of our business, as I mentioned, is interotal. And so as fuel prices increase, our interotal business becomes more competitive. And so we're seeing an increase there relative to what's happening in the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“relative to what's happening in the Middle East. I would say in general though as we think about it if fuel prices stay too high for too long it has an impact on consumer demand and when that happens that cuts across all of our businesses”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yeah, we're seeing some uh we are starting to see that impact some of the businesses. I would also say, Greg, as we talked to some of our our large interotal customers, what they are telling us, some of the big retailers are the customers are having to make choices now. So, as fuel prices go up,”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“see the demand. haven't seen it on the net side. We went from uh really the last two years from about 5 to 540 a gallon. We're seeing spikes up to seven a gallon. I would tell you if I see that kind of sitting at 7 and a quart 750 a gallon, then you'll see it start impacting even on the higher end side on the net side. So, we're feeling it. Um it's, you know, it's not the first time we've had to deal with this. you know, we're prepared to deal with those things and make adjustments where we need to, but it certainly is affecting, I would say, some of the retail businesses and some of the consumer product businesses.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Great. Thank you.>> Great. Thank you.>> Great. Thank you. So associated with the letter I wrote toSo associated with the letter I wrote toSo associated with the letter I wrote to all of you as owners, I highlighted someall of you as owners, I highlighted someall of you as owners, I highlighted some important um as I've touched on values.important um as I've touched on values.important um as I've touched on values. One of them was our decentralized model.One of them was our decentralized model.One of them was our decentralized model. I also touched on risk discipline,I also touched on risk discipline,I also touched on risk discipline, capital allocation.capital allocation.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“capital allocation. And when we think of our businesses, we have an exceptional group of leaders in businesses. And yes, they do own their businesses as Katie touched on it in her video, as Adam's alluded to it and talked about it. Um, there is a great deal of ownership in each of our across each of our subsidiaries and that's absolutely how we'll continue to operate and see it as as an extremely effective model that they're closest to their customers. they understand what needs to be done and if they think like an owner we get very good outcomes across the group of companies. I I would highlight though that with uh decentralized model we we do not um uh take responsibility and I was one of those I ran BHE it's it's a great set of responsibilities where Berk
hire Hathway Energy shouldn't be abbreviating sorry but when I ran it that that autonomy meant you”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“everything you know that that when we're spending money on a uh it may be a capital expenditure it can be an operating expenditure you're deploying our our our shareholders capital are are we doing that well and we focus on that so that's part of that equation of allocation Apple. And the reality is if if we're seeing um a situation where we're underperforming or we're or we're seeing some potentially poor decisions, that's where we engage and have a discussion. And usually it's relative, and I touched a bit on this with Katie, it's relative to what we see externally and just really trying to understand um where our performance gaps are and and then it quickly moves to how and and we have we don't have the people at corporate to go in and quote help. So, it's not like we send in an army, but there's generally some people within our”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and it's really about operationalizing the improvement that we saw in two twothe improvement that we saw in two twothe improvement that we saw in two two in 2025 into the first quarter of 2026in 2025 into the first quarter of 2026in 2025 into the first quarter of 2026 and making sure that we're reallyand making sure that we're reallyand making sure that we're really institutionalizing that. So the firstinstitutionalizing that. So the firstinstitutionalizing that. So the first thing that we really focused on in 2025thing that we really focused on in 2025thing that we really focused on in 2025 was we knew that we needed to improvewas we knew that we needed to improvewas we knew that we needed to improve our single car operational efficiency.our single car operational efficiency.our single car operational efficiency. And when I say single car unitAnd when I say single car unitAnd when I say single car unit operational efficiency, we run a coupleoperational efficiency, we run a coupleoperational efficiency, we run a couple of different networks. We run ourof different networks. We run ourof different networks. We run our intermoal network. We run ourintermoal network. We run ourintermoal network. We run our agricultural and our coal network, ouragricultural and our coal network, ouragricultural and our coal network, our bulk networks. And then the balance ofbulk networks. And then the balance ofbulk networks. And then the balance of it is what we call our carload networkit is what we call our carload networkit is what we call our carload network or our single car network. And that'sor our single car network. And that'sor our single car network. And that's where we we have non-unit train. Itwhere we we have non-unit train. Itwhere we we have non-unit train. It takes a a lot of operational focus. Ittakes a a lot of operational focus. Ittakes a a lot of operational focus. It takes a a lot of work effort and ittakes a a lot of work effort and ittakes a a lot of work effort and it consumes a lot of resources. And soconsumes a lot of resources. And soconsumes a lot of resources. And so anything you do to improve that singleanything you do to improve that singleanything you do to improve that single car networkcar networkcar network is good for all of your customers. Itis good for all of your customers. Itis good for all of your customers. It frees up resources. It creates capacity.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“frees up resources. It creates capacity. It allows you to handle the same amount of volume if not more with fewer assets. And that translates through then to the improvement that you're seeing in the profitability. An example of that is in in the first quarter of this year, we handled more volume than we did in the first quarter of last year, but we did it with 260 fewer locomotives. That translates into a more consistent service product for our customers and it also translates into better financial results, which is what you saw in the first quarter of 2026. So we we're spending a lot of time ensuring that we have operational excellence not in all not in just all those other networks but in the network that frees up resources and drives improvement and operational excellence for all of our customers.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“The second area and you heard Greg talk”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“The second area and you heard Greg talk about this earlier was around ourabout this earlier was around ourabout this earlier was around our technological transformation.technological transformation.technological transformation. We really believe that in addition toWe really believe that in addition toWe really believe that in addition to driving that operational discipline thatdriving that operational discipline thatdriving that operational discipline that you saw in 2025 and into 2026you saw in 2025 and into 2026you saw in 2025 and into 2026 thatthatthat working with the the new BNSF techworking with the the new BNSF techworking with the the new BNSF tech organizationorganizationorganization to drive that next step level ofto drive that next step level ofto drive that next step level of improvement. And so you you saw unitsimprovement. And so you you saw unitsimprovement. And so you you saw units dwell in our terminalsdwell in our terminalsdwell in our terminals less time that translated through to theless time that translated through to theless time that translated through to the financial results that I talked about.financial results that I talked about.financial results that I talked about. You saw velocity improve as well. And soYou saw velocity improve as well. And soYou saw velocity improve as well. And so how do we leverage technology then tohow do we leverage technology then tohow do we leverage technology then to take the next step level improvement? Sotake the next step level improvement? Sotake the next step level improvement? So I'm excited about what we're doingI'm excited about what we're doingI'm excited about what we're doing there. We're literally attracting datathere. We're literally attracting datathere. We're literally attracting data scientists,scientists,scientists, operations research folks, and we'reoperations research folks, and we'reoperations research folks, and we're putting them alongside of our operatorsputting them alongside of our operatorsputting them alongside of our operators in our network operations center. We'rein our network operations center. We'rein our network operations center. We're looking at things like uh digital twins,looking at things like uh digital twins,looking at things like uh digital twins, which gives us the opportunity to modelwhich gives us the opportunity to modelwhich gives us the opportunity to model how we run the railroad before we”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“how we run the railroad before we actually run the railroad. We're looking at opportunities to do predictive ETAs for our customers, which allows our customers to have a better product. It allows us to turn the assets faster. And then last, what I would say is that we're just it's good oldfashioned going to work on on attacking the largest structural cost buckets. We had a record for the first quarter in our fuel efficiency. That's the kind of thing we want to do because it makes us competitive with trucks. It is good for the environment and it's good for our financials. So those are the things we're doing to close the gap relative to profitability. Now your question about competing with trucks. I would say a couple of things with that. First of all, we have the largest interotal franchise of all of the railroads. We have a unique relationship with JB Hunt and we”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“unique relationship with JB Hunt and we have been extremely successful in converting over the road freight. We've done more of that than anybody. So, we know how to compete with trucks. But your question about technology is a good one. And I would say that we in the past have invested in a in a system called positive train control, which is a safety overlay that allows us to operate the railroad efficiently. As you know, we operate in a closed circuit. And so we have the ability to your point ultimately to run the train with fewer people than we operate with today. And in fact if you go way back in time we used to operate the trains with five people on the train. Now we're down to two people on most of our trains. So the technology will continue just like most industries will continue to evolve and we're continuing to look at that as”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“we're continuing to look at that as well. The last point I would say with that though is that we also have to be allowed to innovate and so we need regulation that supports the ability for railroads to be able to compete with trucks. As you said, we know that there are trucks out there running today in our state in Texas along I45. We just there was just a pilot with autonomous trucks. what we have to be able to do is to be able to cone compete with that and to be able to innovate. And so we're going to need regulations that allow the railroads to be able to do that. So that's how I think about competing ensuring that we're closing the gap as well as maintaining our competitive advantage with trucks.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“the team that's up here today we got in a room and I asked a question about how many people really understand sort of the bookends of our business. Uh NetJets is complicated. We're ad hoc. We're unscheduled. We fly to thousands of airports. Commercial airlines will fly to 50 to 100 airports. uh we fly to 150 countries around so it's a very complicated business and I asked a question to the team um how many people do you think really understand the book ends of our business and I didn't like the answer I won't tell you what the answer was but it was too few and it sort of started there and what we did was we we really said you know to build this culture the way we want it if I understand what you're doing you understand what I'm doing at at deeper and wider levels we're going to do good things together so it sort of started on that Monday afternoon and when we we”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“service and we've been really focused on making sure everybody stays in that alleyway. That in large part plus a lot of hard work um is why we we're able to pay our debt back. um we're able to pay uh cash back to Berkshire Hathaway and move our way as I said in the video out of the other comm and be first in the service business and I'm proud of that.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“situation in the Middle East in that yes there were there was the the tariffs andthere were there was the the tariffs andthere were there was the the tariffs and each business may have fallen under aeach business may have fallen under aeach business may have fallen under a different uh tariff or what they weredifferent uh tariff or what they weredifferent uh tariff or what they were importing and and we'd gone through itimporting and and we'd gone through itimporting and and we'd gone through it once already in the in the first term ofonce already in the in the first term ofonce already in the in the first term of the administ administration and therethe administ administration and therethe administ administration and there there were lessons leson learned there.there were lessons leson learned there.there were lessons leson learned there. So we were both better better preparedSo we were both better better preparedSo we were both better better prepared in how to manage through it and hadin how to manage through it and hadin how to manage through it and had realigned a certain amount of our ourrealigned a certain amount of our ourrealigned a certain amount of our our input. So it you know that was valuable.input. So it you know that was valuable.input. So it you know that was valuable. The second thing was it's as I describedThe second thing was it's as I describedThe second thing was it's as I described with the with the conflict. It was headswith the with the conflict. It was headswith the with the conflict. It was heads down and we'll just manage ourselvesdown and we'll just manage ourselvesdown and we'll just manage ourselves through it. You know listen therethrough it. You know listen therethrough it. You know listen there there's some cost pressures here. We'llthere's some cost pressures here. We'llthere's some cost pressures here. We'll figure out how we're going to continuefigure out how we're going to continuefigure out how we're going to continue to serve the customer. we'll workto serve the customer. we'll workto serve the customer. we'll work through on on delivering what they need.through on on delivering what they need.through on on delivering what they need. And there has to be some reasonableAnd there has to be some reasonableAnd there has to be some reasonable expectations on the other side that we'dexpectations on the other side that we'dexpectations on the other side that we'd recover those tears from our from”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Automotive Jeff Rocker who is an excellent you know CEO of that division um you know his the new and used sales are you know slightly down in in Q1 of this year compared to last year and part of that is is sort of that same effect from uh the tariff buying that occurred a year ago to to to today. Um, I had to smile because we were collecting. Okay, it's just it's changed every day as we know and you manage through that and just understanding the tariff bouncing ball was, you know, a job in itself. But I I had to smile because I was actually calling our our CEOs just to get their take on it. And the 32 companies in the portfolio, consumer product services and retail, it's a stat that I love. They've been actually been around on average 88 years and only 0.5% of American businesses have been around more than 80 years. Our average in that sector from a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“years. Our average in that sector from a founding standpoint is 88 years. And several of the uh five of the companies specifically companies that were founded in the 1800s. And when I called those CEOs, they said we've been dealing with tariffs for a hundred years, you know, kind of thing. And so not being dismissive at all of tariffs. The point is I look at the whole tariff conversation as you're always going to have a curveball. If I think of the CEOs in the last, you know, seven, eight years, we've had to deal with a global pandemic, the highest inflation 40 years, and now this thing, uh, you know, the bouncing ball of tariffs. So, the businesses have done an excellent job of managing through that. Um, I wouldn't put it in the fun department of the things we have to deal with, but we're learning it and um, I think we're in a pretty decent spot um, moving forward.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Now I'm in trouble. Um yeah, Aji did an exceptional job of of discussing Tokyo Marine and and I'll”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“of discussing Tokyo Marine and and I'll I'll touch on it, but um what and I and I teed it up a bit in saying it is a strategic relationship less than a uh financial transaction. Yes, we like the 2 and a half% investment into Tokyo Marine and and that will be a long-term uh um investment. It's the type of investment we put with our other five investments in in Japan. We really think of those as forever because it goes beyond the investment and it's very much around the relationships we want to build there and you'll continue to see that. Um Ajit expanded on the underwriting opportunity that we do jointly participate in their their their risk and rewards associated with effectively also 2 and a half% of their book there now and and that's again part of the uh financial transaction but there's also great deal of faith there. We we as Ajit”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“great deal of faith there. We we as Ajit said and really Ajit says and I take his word for that but it's you know it's an exceptional company and and and their performance has been remarkable. So we're we're thrilled to have them. And then the third thing that was touched on was the the the partnership highlighted a variety of things we how we would like the relationship to develop and that's not defined yet. So we'll continue to let that take its proper form. They're the type of partner that has the same culture, same values as us. So there's little question it's going to be exceptional for many years to come. Uh but as far as pursuing an absolute acquisition in in in insurance or something like that that'll evolve with time and that would be obviously the discussions Ajit and the senior team at Tokyo Marine would be having and and if such an opportunity materializes we'd be”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“such an opportunity materializes we'd be thrilled with it. Now to the really tough question Canada versus US in hockey. Um hm I I did find a way and it's it can cause a lot of angst in my own family. So, um, I remember waking up that morning and Canada was playing the the men, but I'd already decided a little bit earlier that, uh, when it came to the Canadian men versus the US men, Conor McDavid plays for Edmonton. And, uh, therefore, I was going to cheer because being from Edmonton, I would I would cheer for the Canadian men's team. And I've always followed the US women and I love what a program the US hockey and I I love USA hockey and how they approach the coaching and the and the development of the youth and I think they've done a great job there. So I chose to cheer for the US women and it was the the perfect outcome for me. So a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yes. True. And we the losing person had to wear the jersey of the other. And I now own Oilers gear.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“They're both on the sidelines very quickly, but um uh thank you for that question. Uh”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Yes. So the so um when we think of the question and I think it's a good one because uh we've always highlighted there's certain circumstances that we may not be the best owner of a business. We've touched on if there's labor issues that we cannot resolve. I would uh take it to the point then further in my letter I touched on if there's reputational risk that we're not willing to to ever have our owners or shareholders or Berkshire experience and that we have to maybe the business has evolved the customers have evolved but if we're if there's that type of situation um then then it that company does not belong in the in the Birkshire family and and it may be it may be a fine business that can be owned by someone else, but it may mean we don't own it. Um, I would then take it a little bit”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Um, I would then take it a little bit further. I touched on um a couple things or or one other thing before I jump to that would be we've often talked that if we have a business that is unsustainable it and and and no longer generating uh operating cash for our shareholders, we have to make some serious decisions around that. If there's someone else who could operate it and make it be more successful both for the customer and for uh our employees then we have to consider that otherwise that business is unfortunately in a place where uh we can't just fund it and experience losses. We would wind it down over a period of time but we'd look for a better solution for our customers employees. So that's always been the ca well that that at least from my perspective has always been the case and how we'll continue to do it. I would say we're taking it uh we take the the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“we're taking it uh we take the the obligation and in making sure capital's properly deployed obviously very seriously. I touched on the regulatoratory compacted energy and that that has to exist and we have to be if we have capital deployed there we have to get a fair return. we have a a situation where we've actually announced we're selling a portion of Pacific Corp, our our Washington State utility. Um, and and that's really a function of the fact that we have a multi-state process in Pacific Corp. There's six different states and each each customer is impacted in different ways. And I've already said there's we we very much focus on what's the needs of our each state and how can we best service them. And unfortunately we were in a situation in Washington where they clearly had policy that they wanted from Pacific Corp. And it was”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“wanted from Pacific Corp. And it was having a significant impact on the costs of our other states. And as much as we would have liked to seen what we call a multi-state compact, i.e. how do they balance all that? it wasn't occurring and our other states were bearing costs that they felt were not theirs that were being imposed by another state. So we consciously said this isn't working for the six states and the one state who had very specific policies and wanted them implemented uh we chose to exit. We found a very good purchaser uh who very much supported and and could implement what was required at that state. So there we there we have evolved and it's a situation where it just didn't make make sense for Berkshire to be an owner of that asset or our owners to be an owner of that asset and it'll be I believe a better outcome for the state and for their customers. So there”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“state and for their customers. So there are those situations where we would uh we would divest and we we we will always approach things that when we buy something it's forever. When we acquire a a utility we tell the regulators it's forever. But it has to be a relationship that works and if it's broken we'll find a better path both for the company, the employees, customers and and obviously for for Birkshire.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Yeah. So, to the second part of the question, um, absolutely not. We we I touched on it early. We we we are a conglomerate. Um, but we are an efficient conglomerate. We we don't have”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“efficient conglomerate. We we don't have layers of management. We don't have a bunch of committees telling our businesses how to run, how they're going to um, you know, manage their customer relationships. We try to at the odd time create frameworks so there's value shared across the businesses so they're aware of what our other businesses are doing and and technologies. That's one of them. We like our framework now. We think it's it it it's become it's very effective across three of our businesses. So of course we want them to understand it but we don't create layers. Uh I remember when Adam took on the role I nicely said you know there there'll be no corporate group supporting you either in Omaha or amongst your own team. We we he's got folks in netjets and they always step up and take more responsibility including when I was uh in that role or in the the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“when I was uh in that role or in the the the vice chairman role. So we but the one thing we don't do is create layers of bureaucracy or uh other decision trees around it and I think so many conglomerates end up with with layers and layers of costs that don't add value in in in to the to the overall corporation. I'm I'm even careful when I talk about our metals group and our chemicals group because because they're a group in in call it maybe uh in my vision i.e. they I I see similar opportunities. I want them to work together but they don't have a corporate group on top of them or anybody directing them on what to do. They find ways to work together because they have a lot of the can have the same challenges can have the same customers. So we see our conglomerate structure working without the bureaucracy and and and and bloated costs. We see a great”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and and bloated costs. We see a great opportunity to continue to move capital across those different groups in a very taxefficient way. Other people can't say I want to move capital um BNSF's a great example. Um yes they they have a strong operating uh results and they they generate they're in a a cycle in their their uh uh business cycle right now where there's certain amount of capital we have to deploy into it but we also receive substantial dividends from BNSF on an annual basis. we can take that capital and decide is it needed in a different operating business or do we see opportunities in equities and if we don't see those opportunities we're happy to not happy but we understand the logical home right now is US treasuries we we think that's a good asset we would prefer to see that deployed but uh in a different fashion yes when the opportunity presents itself”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“yes when the opportunity presents itself but it allows us to really move that capital across the group So I actually uh the answer to the conglomerate is uh yes, we understand we're one. We see it operates very effectively and we do not see ourselves uh divesting of subsidiaries for that reason or ever breaking off a group. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Hi.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So, uh I I think I'll start with the So, uh I I think I'll start with the So, uh I I think I'll start with the important part of that question. I mean, important part of that question. I mean, important part of that question. I mean, as far as how Burk how Warren thought as far as how Burk how Warren thought as far as how Burk how Warren thought about it, how Berk
hire thought around about it, how Berk
hire thought around about it, how Berk
hire thought around approaching investments, quote, our approaching investments, quote, our approaching investments, quote, our margin of safety around investments and margin of safety around investments and margin of safety around investments and how we how we approach it. Um we're how we how we approach it. Um we're how we how we approach it. Um we're we're absolutely aligned there and I and we're absolutely aligned there and I and we're absolutely aligned there and I and and that starts with our culture and and that starts with our culture and and that starts with our culture and values and how we've approached values and how we've approached values and how we've approached everything over the years. Um so if I go everything over the years. Um so if I go everything over the years. Um so if I go back to looking at opportunities and back to looking at opportunities and back to looking at opportunities and energy and it may have been an energy and it may have been an energy and it may have been an acquisition or we're deploying acquisition or we're deploying acquisition or we're deploying significant capital, it quickly went to significant capital, it quickly went to significant capital, it quickly went to yes, we understood the opportunity, but yes, we understood the opportunity, but yes, we understood the opportunity, but Warren and and I'd want to have this”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“Warren and and I'd want to have this conversation. um where's the risk and do we really understand the risk associated with this and uh I have a I have a really great example is that we were acquiring NV Energy in the um uh had the opportunity to acquire it and Warren was actually coming back from China and and had been over there and I was waiting for him to arrive and land in Seattle and give him an update that we had this potential opportunity and I very much knew the occ the uh the opportunity and what the uh the value proposition was. I'd clearly had three significant risks in my mind that um was anxious to discuss with Warren and in the in Warren landed and I had a a short presentation said I'm asking him to just give me a call. It was literally one page, but just to really trigger it, could we have this conversation? And the”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“could we have this conversation? And the immediate conversation we had was, yeah, the economics, you'll you couldn't agree more, understood them, went right to the biggest risk. And I was just getting ready to walk him through the two or three risks I'd seen and and wanted to make sure we understood it and were comfortable and wanted his input. And the risk was fundamentally rooftop solar and how would it disrupt that business and disrupt our customer. We discussed it. We understood it was a a challenge. I remember saying to Warren, well, that's part of the reason I'm sure we're we have this opportunity to acquire this public company that there is certain amount of risk in the public and the board and the and the management team had decided uh uh that they they didn't see the same opportunity we did. But Warren went right to it. It was all around the risk”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“right to it. It was all around the risk and and that risk did surface 12 months later, 18 months. We managed our way through it. Um our team did a great job. But so I don't see there being incremental margins or we think of risk differently. We think of them as in the Birkshire mindset that the the we're going to understand the economic prospects of of this opportunity. And as I said, we really go to that 10-year window potentially and say what's the business look like 10 years from now? and that and and is there enough safety margin 10 years from now? is is what we see it the outcome do do we see an outcome and if we don't understand what that looks like 10 years from now I know Warren would would say this I would say it then we don't do it there's no safety margin or maybe we can um adjust some numbers or there'll be synergies or something of that like we have to have a”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“something of that like we have to have a vision of what that's going to feel like and look like and that really is the the how how we approach it now touching on techn technology companies. Um we are not going to ever say geez this is a a specific sector for us or we need to be in it. If there's something in the technology sector or in that group of companies and we understand one of those companies to understand again what their uh opportunities are and what we view as the economic prospects for it and we have an understanding of what those risks are. that doesn't preclude us just because it's in a technology sector or that but it would start with back to the fundamentals of do we understand it do we both the opportunities and the risks and and then is it and then is it uh fairly valued relative to that and that's all that's”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and there and there they're a reason why they're in the rafters together. That was an incredible partnership and and one that uh you know you you can't replicate. But what what I would start with is that very fortunate to still have Warren as our our chairman and and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“have Warren as our our chairman and andhave Warren as our our chairman and and that's very important and it's and itthat's very important and it's and itthat's very important and it's and it makes for an excellent transition.makes for an excellent transition.makes for an excellent transition. I have a an exceptional board ofI have a an exceptional board ofI have a an exceptional board of directors that I'm comfortable reachingdirectors that I'm comfortable reachingdirectors that I'm comfortable reaching out to any of them in individuallyout to any of them in individuallyout to any of them in individually depending on the circumstances anddepending on the circumstances anddepending on the circumstances and either the risk we're dealing with or aneither the risk we're dealing with or aneither the risk we're dealing with or an opportunity that may be present inopportunity that may be present inopportunity that may be present in uh any of our businesses or or one thatuh any of our businesses or or one thatuh any of our businesses or or one that may be coming our way. So, we'remay be coming our way. So, we'remay be coming our way. So, we're fortunate to have that exceptional groupfortunate to have that exceptional groupfortunate to have that exceptional group in place. And and then it really comesin place. And and then it really comesin place. And and then it really comes back to our team that's in place. And Iback to our team that's in place. And Iback to our team that's in place. And I said this when I was answering to umsaid this when I was answering to umsaid this when I was answering to um Warren from Omaha um that we wantWarren from Omaha um that we wantWarren from Omaha um that we want Berk
hire to endure and that means yesBerk
hire to endure and that means yesBerk
hire to endure and that means yes I want to lead Berk
hire and I'll be aI want to lead Berk
hire and I'll be aI want to lead Berk
hire and I'll be a strong leader. I strongly believe thatstrong leader. I strongly believe thatstrong leader. I strongly believe that and and I'll I'll take Berk
hireand and I'll I'll take Berk
hireand and I'll I'll take Berk
hire forward. But it it will be um as a asforward. But it it will be um as a asforward. But it it will be um as a as you always need a single leader and I Iyou always need a single leader and I Iyou always need a single leader and I I think we strongly understand that. But”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“think we strongly understand that. But you surround yourself with great people and they're already here. I've been fortunate on the non-insurance operation to to operate with the with with Adam's 32 and the 18 that I still get to interact with a lot. those 50 uh including Adam and and Katie obviously have an exceptional working relationship with Ajit and fortunate with that and would seek counsel uh regularly even even as vice chairmans we would constantly have a conversation around he he may be making a an insurance decision or I was making a decision around one of our non-operating businesses and the first thing we'd cross check is how's it impact your group. So have an amazing uh uh uh relationship and a val and someone I val im immensely value the input and then across our CEOs we're so fortunate to have a great group that I”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“fortunate to have a great group that I would reach out to any of them on a specific circumstance and ask them for their input and I generally know where they've dealt with a challenge or a significant opportunity and I'd be the first to seek it out and say let's talk about it and figure out our path forward. And it may be that it was someone on their team that really dealt with it and then I'd want to be talking to their team. So, fortunately, because of Berkshire and the way we're created, again, it is a a unique structure, but we have an immense amount of resources around us. And then we have our our team in Omaha who has supported Warren for all those years. They're remarkable folks. There's there's not a lot of them, but they are good. and they're and they're exceptional and we're fortunate to have them as part of the team. So I it will be such that uh Berkshire”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“So, as we as we wrap up today,So, as we as we wrap up today,So, as we as we wrap up today, obviously, I can't help but thankobviously, I can't help but thankobviously, I can't help but thank everyone for joining us this morning andeveryone for joining us this morning andeveryone for joining us this morning and early afternoon, both as our long-termearly afternoon, both as our long-termearly afternoon, both as our long-term shareholders are or uh those that areshareholders are or uh those that areshareholders are or uh those that are are our our newer shareholders and allare our our newer shareholders and allare our our newer shareholders and all again all of you that came for theagain all of you that came for theagain all of you that came for the experience. It's it's greatlyexperience. It's it's greatlyexperience. It's it's greatly appreciated. We enjoy this engagement.appreciated. We enjoy this engagement.appreciated. We enjoy this engagement. It all comes together because there's aIt all comes together because there's aIt all comes together because there's a an individual Warren has highlighted inan individual Warren has highlighted inan individual Warren has highlighted in the in the past pulls together thethe in the past pulls together thethe in the past pulls together the exhibit hall pulls together everythingexhibit hall pulls together everythingexhibit hall pulls together everything here. I'd like to acknowledge herhere. I'd like to acknowledge herhere. I'd like to acknowledge her Melissa Shapiro. Thank you.And then uh the the light was over onAnd then uh the the light was over onAnd then uh the the light was over on that table. But we do have um and wethat table. But we do have um and wethat table. But we do have um and we made this announcement in December. Ourmade this announcement in December. Ourmade this announcement in December. Our longstanding CFO Mark Hamburg islongstanding CFO Mark Hamburg islongstanding CFO Mark Hamburg is retiring in June of this year. We're”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“retiring in June of this year. We're very fortunate that then he will stay on for an incremental year as an adviser to our incoming CFO as a a personal friend adviser to myself. We we'll have Mark's knowledge resource and and it's immense when it comes to Birkshire. I like to Mark has been our our CFO for 34 years. It's this not this June, the following June when he when he truly retires, it'll be 40 years with Berk
hire. and it's been such an incredible career and and has worn so he wears so many hats in this organization. I mean, he's he's helping Melissa uh Melissa's organizing and doing all but when she has a question, she went to Mark to look for the answer around be at the annual meeting. He's our corporate secretary. I I like to say and I uh to to replace Mark, we we hired a CFO, but we also hired a general counsel. uh it took it took two to replace him and and and more”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“took two to replace him and and and more than that. So Mark, thank you for your incredible contributions to Berk
hire. Warren has highlighted those and I can only echo all that. Thank you so much. Now, lastly, again, thank you for this remarkable uh experience for all of all of us at Berk
hire. We we treasure what we call owner's day. That opportunity to communicate around what's going on in Berkshire because we're so proud of it, absolutely committed to it and and passionately believe in Berk
hire. But equally the engagement of all you throughout the day yesterday into this afternoon just uh greatly appreciated. Thank you and look forward to seeing you next May. Thank you.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“It impacts really in a variety of ways, all our businesses, but um what I'm most proud of are our businesses. Uh we operate these businesses for the long run, just like we do for obviously for our shareholders. We take a long-term approach there. There's not many days and I used to joke when I more had”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“and I used to joke when I more had Adam's role. There wasn't a day I woke up where there the phone wasn't ringing with good news. You know that phone rang. You knew you're going to have a bit of a challenge and we have that portfolio. But but that's okay. We'd be talking and we always worked our way through it and we have a team that would lean in and we'd come through and it could be anything. And we never tried to use that as a reason we couldn't do something or get to the to the right place. And what I've seen associated with the uh obviously the the war in Iran and and the and the various conflicts in the Middle East is again a team that is very much taking the approach that that's the situation we're in. We can manage our business and we we very much quickly move to what's the best solution for our customers. how can we deliver and”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“customers. how can we deliver and continue to deliver what we've done to them and what's their expectations around that and and our teams will work incredibly hard to come up with with solutions.”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“>> We are a conglomerate. Um, but we are an efficient conglomerate. We we don't have layers of management. We don't have a bunch of committees telling our businesses how to run, how they're going to um, you know, manage their customer relationships. We try to at the odd time create frameworks so there's value shared across the businesses so they're aware of what our other businesses are doing and and technologies. That's one of them. We like our framework now. We think it's it it it's become it's very”

2026 Berkshire Hathaway Annual Shareholders Meeting (May 2, 2026)

“think it's it it it's become it's verythink it's it it it's become it's very effective across three of oureffective across three of oureffective across three of our businesses. But the one thing we don'tbusinesses. But the one thing we don'tbusinesses. But the one thing we don't do is create layers of bureaucracy ordo is create layers of bureaucracy ordo is create layers of bureaucracy or uh other decision trees around it. And Iuh other decision trees around it. And Iuh other decision trees around it. And I think so many conglomerates end up withthink so many conglomerates end up withthink so many conglomerates end up with with layers and layers of costs thatwith layers and layers of costs thatwith layers and layers of costs that don't add value in in in to the to thedon't add value in in in to the to thedon't add value in in in to the to the overall corporation. So I actually uhoverall corporation. So I actually uhoverall corporation. So I actually uh the answer to the conglomerate is uhthe answer to the conglomerate is uhthe answer to the conglomerate is uh yes, we understand we're one. We see ityes, we understand we're one. We see ityes, we understand we're one. We see it operates very effectively and we do notoperates very effectively and we do notoperates very effectively and we do not see ourselves uh divesting ofsee ourselves uh divesting ofsee ourselves uh divesting of subsidiaries for that reason or eversubsidiaries for that reason or eversubsidiaries for that reason or ever breaking off a group.breaking off a group.breaking off a group.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Well, thank you for being here and and and we're so excited to be here in Omaha. So, it is a great tradition and”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“fortunately Warren will be a part of it and and we're excited by that and and what I really want to communicate to we have our owners here and these couple days are and especially on Saturday it's owner's day. It's their day. So, I just want them to really know that Warren Warren brought this amazing commitment to Berkshire and deep understanding and and I want them to know that remains”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“and I want them to know that remains that there's a team, myself included, that are absolutely committed and have a deep understanding of Berk
hire and we bring that same passion every day.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“there's some some just evolution as you as I think um hopefully our our owner shareholders enjoy.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah. And that was very purposeful because we have a when you walk around here and all these businesses we have exceptional leadership in the businesses and we very much operate it where this ownership mentality it's their businesses but what we want is to on stage let all the owners all the shareholders those watching CNBC start to see the depth of management in Berk
hire. How did you pick the”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“So it started with the thought that um on the insurance side we have a”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“and that's something I've been so excited by. uh when Warren made the announcement last May as we all know the first thing he did was pull together the senior team from the senior leaders on the insurance side and it was a small meeting in Omaha Warren Iet and and say five other of the senior leaders in”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“okay this is our new team uh I was the first I've got a lot to understand and learn I had some knowledge on from spending a lot of time with the jeet and being on certain boards but that It was really exciting and to see the depth of that team was was uh oh just it felt really good to know who was behind a and then so we've I had that opportunity and then when it came time on the non-insurance um really focused on one Adam and as much in that he brings a wealth of experience from nets”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“largest non-insurance uh business. So, it was logical to introduce her. She was logical to introduce her. She was logical to introduce her. She runs uh an amazing business. uh 175 trains moving a day across 32,000 miles, 32,500 operationally and uh and and serving many many different types of customers from agriculture to um moving the inter modal traffic we do. So, she's got a breadth of responsibilities and I just wanted the our shareholders to meet them and hear what they do every day.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah. So, number one, very fortunate that Warren still comes into the office every day and he's a great sounding board. I mean that that's really there's a lot of collaboration now and there's always been but I'm going to call them or I'm in Omaha uh a few days a week and then I'm on the road like I've always been meeting with our other businesses or looking at certain opportunities but when I'm here it's a discussion around uh what we're seeing him and I how do things feel what do I see as opportunities what's he seeing as an opportunity and so one accept exceptional sounding board. Um there's no question I talked to Adam uh not just”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“no question I talked to Adam uh not just about his businesses but what are we seeing again where are potential opportunities and I've really tried to have that type of engagement for a number of years with our non-insurance operations but if you go to our uh top businesses they're very senior business leaders in themselves and I I greatly value hearing what they're seeing what are they hearing from their suppliers what are they hearing from their customers”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah. So one fortunately having uh run the non- insurance operations um for eight years”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“we always start discussing what the challenges are what what's the risk today but more importantly what's the risk 5 years 10 years from now what what what's worrying them how is their customer changing”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yes, we have to get pricing right to the risk, but what are the risks and not the risk that year, what are we seeing the risk five and 10 years from now? And if you go to insurance, for example, and it's a risk in a lot of our businesses, for example, inflation.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“So, we're very aware of that. We're watching it across our businesses. We want to understand what what it does to our business is. but business as a whole in Berkshire. Um and uh and then it goes from there.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Well, I think I think we worry um listen”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“we know the quality of the businesses the the boards are exceptional they're going to have thought this through very clearly and have the right leader and and time always tells But the reality is we're excited by the leaders coming in and very supportive of what the prior two leaders have done. It's it's remarkable what they've done with those two businesses.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“I know”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah, I know he's younger. I know. I reminded him of that when he told me he was going to step down. I said, "You've got more years in. Come on." Right.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah. Tim Cook's less than two years older than you are, but it I and I know you addressed this in the letter, too,”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah, my runway is really long. I I love doing this and that like Warren, we're passionate and as I said right from the get-go, I want our shareholders to know there's absolute commitment and passion and I have a great family and I prioritize my family and I prioritize Berkshire and I know how to find the balance.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“That would not surprise me. But that's up to our board obviously and we and our shareholders and we have to be doing a”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“shareholders and we have to be doing a great job. But I love Berk
hire and I I see myself in this role for a long time.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Yeah. Yeah. And on that one, I want to because it because it was a mistake we made for sure. not not that pilot um made any mistakes or it was their problem. We just recognized that um we needed short-term and long-term objectives aligned”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Okay, it was really that simple. And I didn't”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“it was really that simple. And I didn't see that alignment. I think we talked earlier, we're working hard to improve the customer service side on pilot. We just always want those objectives aligned when we're entering into a transaction.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Correct. In the right way.”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Larger than utility I across across the river in Iowa. We had 1.3 million customers. We drew it to two. But th that was a big learning moment um for myself. But probably the first thing there for example was recognizing uh when we needed to make changes we should make the changes and uh there we recognized that environment within the business was changing very quickly. It”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“business was changing very quickly. It was going from being a heavily regulated business to an unregulated business. So we needed skill sets that we probably didn't bring into the business quick enough. So forever I watch how the businesses are evolving. Yes, we've got great teams, but how do we supplement it and make sure they're successful?”

CNBC Full Interview with Berkshire CEO Greg Abel (May 1, 2026)

“Well, thank you for being here. I look forward to the the questions on Saturday. It's always a a great opportunity all that gets submitted into you and then obviously receiving them from our our shareholders and owners. So,”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Yes. And the Y is really important.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“I'm committed to doing this every year.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“My entire salary as long as I'm the CEO.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> It's great to be here. Good morning, Becky. Morning, Joe.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Yes. So, we've had a long-standing policy that uh when the intrinsic value as we see it and computed on a conservative conservative basis when it exceeds our market price, Berkshire has always acquired shares. That's been our LA long-standing policy. We highlighted that in the 10K and in my letter that that remained in place and we've just recommenced yesterday. So the the point being we see value the intrinsic value exceeds the current market value and we started uh recommence purchasing and we felt it was important to communicate to our shareholders, our partners, our owners that with the transition”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> No, absolutely talked to Warren. So how we how I approached it was obviously looking at the value”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> um having a view of intrinsic value consulted with Warren relative to the value and the timing of is it ready to are we ready to recommence and the and the thought there was after the consultation we filed our 10K we there's”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> Correct. As long as our intrinsic value exceeds the market value again conservatively determined, we'll continue to repurchase. But the one thing we have never done is we don't disclose the amount, the timing or the computation. But we did feel this time it was important because of the change in leadership that we should”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> So we're not going to we're not going to”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Exactly. We always look at effectively three buckets when we're allocating our capital. We have our existing businesses uh deploying capital back into those both uh for their current operations and incremental opportunities that really exists every day and we're constantly challenging ourselves are we thinking about that properly as you highlighted Becky there's also do we acquire stock uh and and when we're looking at companies do we acquire whole companies also”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“um and then there's the do we acquire equities other equities and we as we've highlighted we always look at That is very similarly to buying 100% or 2%. And then the third bucket where we deploy our capital is share repurchases. Each of those with the amount of capital we have are uh can be done independently. So when we're purchasing our shares, it's not taking away from any the other”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> Yes. Um>> Yes. Um>> Yes. Um and and the significance is if you lookand and the significance is if you lookand and the significance is if you look at my 2026 compensation that I'llat my 2026 compensation that I'llat my 2026 compensation that I'll receive this year. What what we've donereceive this year. What what we've donereceive this year. What what we've done is and what I've done is taken the afteris and what I've done is taken the afteris and what I've done is taken the after tax dollars of approximately $15.3tax dollars of approximately $15.3tax dollars of approximately $15.3 million and reinvested it or purchasedmillion and reinvested it or purchasedmillion and reinvested it or purchased Berkshire shares with the after taxBerkshire shares with the after taxBerkshire shares with the after tax dollars.dollars.dollars.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“putting it into shares of Berkshire.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“approach. Um, I'm committed to doing this every year going forward.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“My entire salary as long as I'm the CEO, and I touched on it in the in the letter. I hope it's 20 years, but I will do that. So, we'll file our 10K. Um, I'll write the letter and after the 48 hour cooling off period,”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“But now I understand leaving in stay in Omaha. What are you going to spend your money on anyway? Might as well buy some B. You got nothing to do. You're going to go out watch some cows or something. That's free, isn't it?”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“No. this was completely myself and and by that I just mean I I wanted that alignment again believe in Berkshire and the and the thought being that um it did evolve like I said okay I'm going to do it this year and then shortly thereafter I thought well no I'm going to do this every year”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Uh both were obviously very supportive. Warren very much had your reaction that uh no one else in corporate America does this and said and the other thing is that this is so Berk
hire because one thing we we do not do at Berk
hire across any of our businesses or with our executives we don't have equity stock programs”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“we don't have option programs”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“correct”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“so Warren acknowledged immediately the alignment with our values and uh I highlighted this to our our Berkshire board in our February board meeting and they were just absolutely supportive of it obviously.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> Correct. So, so Andrew, uh, back in the summer of 2022, uh, there was the decision to sell, uh, B, my Berkshire Hathaway Energy stock that had really accumulated going back to 1992, I think, is is the duration of uh, those holdings and and obviously we had built the energy company. were acquired by Berkshire in 2000 and then in 2022 monetized it and again with a very”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Yeah, I bought I'll just say I bought a heck of a lot more than 21 shares.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Oh, that's right. Oh, that's right. But no, you're right. You're right. It's this was 32.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Right. So, I touched on it a little bit earlier, but um the 373 million and billion a billion, sorry. Thank you. Um and fortunately it's a billion. Um you know we really view that as an opportunity and so we do continue to look across the different investment options that exist”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“different investment options that exist out there and there really are options. We're looking at these different buckets and looking for the right opportunity. But there is no need to um obviously we want to deploy the capital into areas that we see long-term value creation for our shareholders. But the goal isn't to just take down the”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“we see opportunity, you'll see the capital deployed and we're deploying it in certain areas across our businesses, across certain repurchases of our shares, across other equity opportunities, but the re the repurchase of our own shares is a great example is that uh Warren and I were just talking about discussing this yesterday. Uh you we wish we could purchase more shares of”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“For sure.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“>> Yeah, Warren and I pretty much he's in>> Yeah, Warren and I pretty much he's in>> Yeah, Warren and I pretty much he's in the office every day. Uh so we'rethe office every day. Uh so we'rethe office every day. Uh so we're talking every if I'm in Omaha, uh we'retalking every if I'm in Omaha, uh we'retalking every if I'm in Omaha, uh we're always connecting. If I'm traveling likealways connecting. If I'm traveling likealways connecting. If I'm traveling like I was yesterday, uh I often check in uhI was yesterday, uh I often check in uhI was yesterday, uh I often check in uh just to just to catch up on what he'sjust to just to catch up on what he'sjust to just to catch up on what he's seeing, what he's hearing, what am Iseeing, what he's hearing, what am Iseeing, what he's hearing, what am I feeling. Uh so if it's not every day,”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“I mean, if we see the right opportunity, yes, but it's not it's not a strategy.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“calls even today. Warren receives them myself maybe not in a distress situation and we look at them we evaluate them but we're always prepared to act and we'll act decisively and quickly.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“well within that period of time we we we have a very good um process in place between Lauren and I and our board as to how we'll act as we have in the past and we'll act very decisively and quickly.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“have certain parameters where I would make sure for example our lead director is aware of what we're doing. Okay. But it does allow me to um act and act uh”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Yeah. And that's really, as you know, we we have our dividend policy in place and the and the thought and it's reviewed and approved by our board again on an on an annual basis and one that Warren has put forward every year. And we've we've maintained that that we will retain a dollar if we see the opportunity to create more than a dollar for our shareholders. And that's been the test. And we uh and as long as we meet that test, we would continue to hold the dollar because we believe we can create value for our shareholders long term. Now, incremental to that, we do see the repurchases as an opportunity”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“strong views and a better knowledge base around certain companies that are technology companies or how we're using the technology. So technology will always be on the table and and looking at uhat uh”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Uh, no. We I don't know like because I haven't seen anything that would make sense that there's a value proposition where you see the asset and how it produces value.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“we'll be happy with our hard assets and the and the company own at that time.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“We're very happy that we own NetJets and the service it provides to uh its great customers.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Uh, well, we did announce, as I said, support for Steve pausing it.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Um, and just for a little bit of background, as you know, uh, when they first said they were going to split, we didn't, uh, we we expressed concerns with it.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“So, uh, any anytime we're responsible for something, we're willing to take absolute responsibility for it and and resolve such matters. Um, but there is a delicate balance and it goes well beyond wildfires in the utility industry. The wildfires are very specific to the West and we've seen them some challenges in Texas and the Midwest”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“some challenges in Texas and the Midwest that, you know, it's not a an issue just to the west, but you can see it it creeping. What we see is a bigger issue in the regula in the uh utility industry and that is does the regulatory compacts continue to exist and by the regulatory compact I mean we deploy capital into these businesses we we receive a return that's reflective of us taking a certain amount of risk”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“and the minute they start expanding that risk to be pretty much anything including things you're not responsible for we're saying that's that wasn't the investment thesis. That's not the relationship that existed.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Absolutely. So, those are there's those the shoes to fill are tough on all fronts, but Warren's an exceptional communicator and how he does it. So, to take the letter and really want to make sure we're communicating to our again to our owners and shareholders that's something that they would value it. It it was not easy. Yeah,”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Yeah. So in the fourth quarter which then translated for the 12-month results”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“then translated for the 12-month results is that yeah our insurance results were down. You can see a lot of capital coming into the industry. we're going to we or our team uh Jetton and his team will continue to apply the discipline that um the price and the risk have to be right for us to write a policy. So as we back out of that with capital coming in, you'll see those results uh be what they are relative to uh how much capital we deploy into it. Um so that had a significant impact. And then the other piece of that is we did across our non-insurance businesses take a $ 1.555 billion um impairment”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“and that was across four of our businesses and realistically smaller businesses and challenged industries. If it had been any of our major businesses I would have touched on it but it really related to four of our smaller businesses again in”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“Absolutely.”

Squawk Pod: Berkshire's New CEO Greg Abel — 03/05/26

“All of them.All of them.All of them. All of them. We've we've got, you know,All of them. We've we've got, you know,All of them. We've we've got, you know, my wife's from Iowa State. I I havemy wife's from Iowa State. I I havemy wife's from Iowa State. I I have allegiances with Nebraska because my Iallegiances with Nebraska because my Iallegiances with Nebraska because my I mentioned earlier my one grandgmentioned earlier my one grandgmentioned earlier my one grandg grandfather was born in Unadilla,grandfather was born in Unadilla,grandfather was born in Unadilla, Nebraska. I've always followed the cornNebraska. I've always followed the cornNebraska. I've always followed the corn Oscar. You name it. I've got a spectrumOscar. You name it. I've got a spectrumOscar. You name it. I've got a spectrum of teams and and my family reminds me ofof teams and and my family reminds me of”

Mohnish Pabrai's Session with SumZero on June 10, 2025

“Yeah. Well Diva it's always a pleasure great to be here for our annual banter. It's very here for our annual banter. It's very here for our annual banter. It's very wonderful wonderful wonderful and yeah, you know, regarding Greg and and yeah, you know, regarding Greg and and yeah, you know, regarding Greg and Berk
hire, so the baton actually was Berk
hire, so the baton actually was Berk
hire, so the baton actually was passed a few years ago. So Greg actually passed a few years ago. So Greg actually passed a few years ago. So Greg actually from a practical sense has been running from a practical sense has been running from a practical sense has been running Berk
hire for quite some time. So Berk
hire for quite some time. So Berk
hire for quite some time. So Warren had passed over all of the wholly Warren had passed over all of the wholly Warren had passed over all of the wholly owned companies to be under Greg a few”

Mohnish Pabrai's Session with SumZero on June 10, 2025

“a lot of time with miners. I spent a lot of time in the mines thousands of feet below the surface. spent time at the coal terminals watching the trains getting loaded and ships getting loaded all of that and even made a trip to Mongolia to see one of the largest surface mining metallological coal operation which was spectacular that was a great trip and uh so I you know I feel like last couple of years I've been drinking from a fire hydrant and still a lot to learn but it's been great so if you look at a business like warrior I visited them a few times and a wonderful actually truly exceptional management team coal miners are just the best people you know They feed you well and they are what you see is what you get. It's just awesome. And anyway, so in the case of Warrior, their mines are some of the best metallological coal mines in North America. They have amongst the”

Mohnish Pabrai's Session with SumZero on June 10, 2025

“know uneven trade. This is a great trade and we're turning away the tourists and we're turning away the tourists and we're turning away the tourists which is another huge American export. which is another huge American export. which is another huge American export. So I get really concerned when we start So I get really concerned when we start So I get really concerned when we start playing with the crown jewels like that. playing with the crown jewels like that. playing with the crown jewels like that. I'm hoping all of this cooler heads I'm hoping all of this cooler heads I'm hoping all of this cooler heads would prevail and we should be making it would prevail and we should be making it would prevail and we should be making it easier to get the best talent in the easier to get the best talent in the easier to get the best talent in the world in we've the United States have world in we've the United States have world in we've the United States have done extremely well with the best talent done extremely well with the best talent done extremely well with the best talent coming in. You look at the Mag 7 and coming in. You look at the Mag 7 and coming in. You look at the Mag 7 and look at you know who's running them and look at you know who's running them and look at you know who's running them and senior people in the company and all of senior people in the company and all of senior people in the company and all of that. I mean, you take the foreign that. I mean, you take the foreign that. I mean, you take the foreign talent out and there's a problem there, talent out and there's a problem there, talent out and there's a problem there, you know, and so we really need to you know, and so we really need to you know, and so we really need to leverage those strengths, pull the best leverage those strengths, pull the best leverage those strengths, pull the best talent from around the world, hopefully talent from around the world, hopefully talent from around the world, hopefully make the trade free and fair again, and make the trade free and fair again, and make the trade free and fair again, and let the country do what it does well, let the country do what it does well, let the country do what it does well, just let it rip. I think I think that just let it rip. I think I think that just let it rip. I think I think that that'll resonate with most of the folks that'll resonate with most of the folks that'll resonate with most of the folks on this call, hopefully everyone. Um,”

Mohnish Pabrai's Sessions at UNO on May 2, 2025 and Columbia Business School on March 25, 2025

“coal only exists in very few places around the planet just a few geographies and coal is a four-lettered word you know nobody wants to open a coal mine and when one gets closed it's difficult to get it restarted started. So we had a situation in 2023 where we had a bunch of coal companies, metallological coal companies which had no debt. You know, a mining company with no debt is an oxymoron. You know, that just doesn't exist. But they had made so much money in 2022 with the Ukraine war, supernormal profits that they all wiped out all the debt on their balance sheets and they became debtree. So we have these companies that are debtree and you know so if you have a business that's going to produce cash flow for let's say 50 years and over 50 years that cash flow will vary between maybe 0 to 100 million a year on the low end to maybe a couple of billion a year”

Abel will be more 'active' in managing subsidiaries, but in a 'positive' way

“Well, we've got our managers over there, and I would say going back to 2018, it's been a, it's been very fortunate being this role, because, one, I had to learn a lot of the businesses, and there's no question as, as a, Warren bought the businesses, had that general knowledge. I absolutely had to engage with each of them, and they've been great in sharing their business models, their approach, their thoughts around, where the risks and opportunities are. And I think as we went through that, there's no question. I had questions and wanted to engage with them. And Warren talks about the curiosity being important And as you go through things, that would be my style to have questions and comments around their business, their frameworks. At the same time, they have great businesses, and they run them very autonomously. And that remains in place. But if there's opportunities to see where maybe you've seen something in another business or an opportunity I may see in their industry, we're going to discuss it and see if that's something we should pursue or we properly addressing the risk. And I found all our managers to be absolutely engaging on that and want to have those dialogues. And I'd say that's a reflection of my approach. I'd also say that when you think of our managers, again, very autonomous. They run their businesses. They know it better than I ever will. But if I see an opportunity that it's well worth their time to talk to another one of our managers. If it's GEICO and they've gone through a technology transformation, they're not by themselves that need to be thinking that way. We want to make sure the right folks are talking and figuring out how we can benefit from the prior experiences. So it's, I would say, more active. But hopefully in a very positive way and we got an exceptional group, so it's worked out exceptionally well as I've gone through that period of time.”

Berkshire's 'great culture' will be an asset in years ahead

“Sure. So this bar is not too high. No, it's, but very fortunate when you think of Berkshire, again, and we've talked about this where we start from, and I'll clearly touch on the investment, the related investment allocation, but we start from a great place where we've got a great culture within the business. We have values that we, as a management team, and really, as defined by Warren, and, and, and, and, and, and that, those Charlie and everybody associated with the business. We've got great values that really set Berkshire up well for the future. And obviously, as we deploy capital and allocate capital, it's critical to Berkshire as we go forward, and equally it's around managing risk. But when I think of our values, there are a couple that are absolutely critical. One, we'll maintain the reputation of Berkshire and that of our company. And I view that in investing or how we operate things across each of our businesses, that will always be a priority and something that will ensure is in the forefront of our minds. We've got a significant set of cash right now, but it's an enormous asset to have that. And that will continue to be a philosophy. Yes, when we can deploy it, we'll deploy it well, and I'll come to that. But equally, we do recognize it as a strategic asset. And it allows us to weather the difficult times and not be dependent on anybody. So again, that will be an investment philosophy. We will remain Berkshire and we will never be dependent on a bank or some other party for Berkshire to be successful.”

Buffett: We could exit utility business over wildfire liability

“Yeah. The reality, the risk around the wildfires, i.e. that do the wildfires occur? They're not going away. And we know that. and the risk probably goes up each year. So, but what we can do to reduce the risk of it impacting our system and our underlying assets and the, unfortunately, the liabilities that come with such events, we can change that and manage that. We then take it even further, and this is something Warren and I've discussed many times, is that the utilities started to recognize when we have these unusual weather events, and Warren touched on what's been happening in Nebraska with stormed. but they're equally occurring or significant events occurring out west. But when we have those, we've gotten very, very good at saying, okay, we have to manage the system differently. We'll potentially de-energize because there's likely to be an event. But the one thing we hadn't tackled, and this is very relevant to the one significant event we had back in 2020 in Pacific Corps, is we didn't de-energize the system as the fire was approaching. Because our employees and the whole management team have been all their lives trained to keep the lights on. And the last thing they want to do is turn those lights off and have a system de-energized. And after those events, and as we really looked at how we're going to move forward in managing the assets and reducing that risk, we have clearly recognized as a team that we have to de-energize those assets. assets.”

We'll hold our Japanese stocks for '50 years or forever'

“Yeah. When you think of the five, there's definitely a couple meetings a year. year Warren and I think the thing we're building with the five companies is one it's it's been a very good investment but we are really as Warren touched on we we envision holding the investment for 50 years or forever but I think we also are building relationships to do incremental things with each of those companies and we really do hope to do big things with them globally they bring different perspectives and different opportunities and we see and that's the that's why we're building that long-term relationship with them it's super long-term and and and they have a much they have a they have different customs they have different approaches to business that's that's true around the world and and and we we don't have any intention in any way of trying to change what they've done because they do because they do it very successfully and and our our main activity is just to it's just to cheer and clap and that I can still do it 94 so we will own those you know we will not be selling any stock I mean that is just it's that will not happen in decades if then.”

Abel: Renewable energy is the goal, but some coal plants are still needed

“One of the important things that I'd say early in us acquiring our energy companies, and I go back to when we acquired Mid-American, we acquired it in 1999, Berkshire purchased Mid-American in 2000. But one thing that became very clear to myself and our teams was that what we do within our utilities is really driven in two fronts. One, we absolutely have to meet the requirements and the law that's laid out federally. But most importantly, we had to recognize we implement public policy across these states. And that was an interesting conversation when I go back to Iowa. And again, the report cited that as a significant problem. It was early in the 2000s when, for the first time in Iowa, we were going to as a utility, be short power. So we didn't have the energy. And we entered into a significant discussion with our governor at the time. And really sat down and said, where do you want us to go as mid-American? And what resources do you want as a state? And at that time, we were predominantly a coal-based state. And we recognize that, obviously, and fundamentally, personally viewed it as a risk. But we needed to have that conversation with our state. And as to how we would manage that going forward, the interesting thing was that as we had that conversation in the early 2000s, again, with the leadership of our state, it was clearly decided we wanted to continue to be long power. so I, not be short for our customers, we discussed the type of resource, and I remember a very clear conversation around we wanted to stay balanced across a variety of energy sources. And at that time, it was really coal and natural gas. And at that time, we made the decision to build the largest wind project in the U.S. in Iowa.”

Afternoon Session - 2025 Meeting

“Well, Ward is obviously a remarkable teacher, and I benefit from that every day. And as I've already touched on for many years, I'm fortunate that if I had to be remembered as something right now, obviously, I want to be remembered as a great father, but equally a coach. And that goes to family, friends, and just being involved with the kids I coach in hockey or baseball or whatever it may be. I think we've got a great opportunity to get back to them at a very young age. So obviously those would be. how I'd want to be remembered, and hopefully that'll be many, many years from now. But I love thinking of Warren truly as a teacher and he's in every day get the opportunity to continue to learn.”

Afternoon Session - 2025 Meeting

“Warren and I, his dialogue is strong every week, and we're always talking around opportunities in Berkshire or things that are going on globally or in the U.S. and each one's a truly a learning moment. I'll maybe go back to the very first meeting with Warren, and because it still stands out in my mind, obviously, it was an incredible opportunity. Warren was buying or acquiring Min American Energy Holdings Company at that time or thinking about it, and I had the opportunity with my partners to go over there. They're on a Saturday morning and we're discussing the business, and Warren had the financial statements in front of them. And like I came by, I was sort of expecting a few questions on how the business was performing or a variety of things, but Warren locked in immediately to what was on the balance sheet, and that fact, we had some derivative contracts, the weapons of master's. construction. And associated with the utility business, we do have them because they use them to match certain positions and they're never matched perfectly, but you do have them and were required in the regulated business. But I just remember Warren going to it immediately and asking the composition of it and what was the underlying risk in it and wanting to thoroughly understand it. It wasn't that big of a position, but it was absolutely one of the risks he was concerned about as he was acquiring Min American and obviously in light of Enron and everything that had gone on it was a very pertinent question and then the follow-up to that was then there's an energy crisis in the U.S. around electricity and natural gas and a variety of folks who were making significant sums of money. This is a year, 18 months later. And Warren's follow-up question, a couple years later to me, was, and I knew it was more just checking or testing, so how much money are we making during this energy crisis? Are we making a lot? Do, you know, do we, are the speculative positions in place, and are we making it? The answer was, we're really not making any more today than we would have been six months ago, because all those derivatives were truly to support our budget. business and weren't speculative. So just that focus on understanding the business of what he was acquiring, understanding the risks around it still stand out in my mind. Warren?”

Abel: Renewable energy is the goal, but some coal plants are still needed

“So we undertook an effort. to build three resources, a coal plant, a gas plant, and a what was the first wind project we owned in Mid-American. And again, it was very consistent with what the state wanted, but we also laid some important groundwork there because we started to define the importance of renewable energy non-carbon resources, but it has to be consistent with what the state wanted. And we've gone on, over the, since that period of time, to deploy $16 billion into Iowa associated with renewable energy. Again, very consistent with what our state wanted us to do, i.e., the underlying policy, we don't get to make that decision and just spend $16 billion. It's done in conjunction with our governors, our legislatures, our regulators, our regulators. And at the same time, we've had the opportunity to retire five of the 10 coal units. Now, as the report highlighted, I understand people would like those other five coal units retired at this time. But to think we deployed 16 billion to retire five, and it's a very good outcome for our customers. We've been able to maintain our rates. They're some of the lowest in the country. So it's been done very efficiently, but the reality is we still need those five coal units to keep the system stable. We cannot have a Spain-Portugal situation. So we absolutely respect the input. We absolutely respect the process, and we'll continue to work with each of our states to identify the path they would like to chart. And we work hard to ensure, you know, there's good, balanced outcomes because we recognize the challenges they're associated with other folks' desires. So I think you'll continue to see our utilities implement policy consistent with the needs of their stakeholders, their customers, and at the same time, always respecting what's required by any of the federal standards. So thank you for your comments.”

2025 Annual Meeting Highlight Reel

“I would say that I'll speak for Greg beyond me that I'll in the next 50 years and I'll be running things and we won't give a thought to the selling those. And I think the thing we're building with the five, five companies is one, it's been a very good investment, but we are really, as Warren touched on, we envision holding the investment for 50 years or forever, but I think we also are building relationships to do things with each of those companies. And we really do hope to do big things with them globally.”

Afternoon Session - 2025 Meeting

“Sure. So, so”

Afternoon Session - 2025 Meeting

“Um, this bar is not too high. No, it's, uh, but very fortunate when you think of Berkshire, again, and we've, we've talked about this, where we start from, and I'll clearly touch on the, uh, investment, the related investment allocation, but we start from a great place where we've got a, a great culture within the business. We have values that we, as a management team and, and, and really, as defined by Warren and those, Charlie and everybody associated with the business, we've got great values that really set Berkshire up well for the future. And obviously, as we deploy capital and allocate capital, it's critical to Berkshire as we go forward, and equally it's around managing risk. But when I think of our, our values, there are a couple that are absolutely critical. One, we'll maintain the reputation of Berkshire and that of our company. And I view that in investing or how we operate things across each of our businesses. That will always be a priority in something that will ensure is in the forefront of our minds. I think equally as we then look at our various, our back to Warren's bound sheet comment, we will have a fortress of a bound sheet. And we want to, I thought Sue Decker, our lead director said it well yesterday, we've got a, we've got a significant set of cash right now, but it's an enormous asset to have that. And that will come. And that will continue to be a philosophy. Yes, when we can deploy it, we'll deploy it well, and I'll come to that. But equally, we do recognize it as a strategic asset. And it allows us to weather the difficult times and not be dependent on anybody. So again, that will be an investment philosophy. We will remain Berkshire and we will never be dependent on a bank or some other party for Berkshire to be successful. I would thank you I would then move to to to touch on allocation of capital be absolutely critical but with that comes management of risk and understanding risk and that falls upon all our managers insurance, not insurance, but we'll bring that across Berkshire. And then the other value I would touch on, but that really relates to where I'm going, is ultimately we have a great set of operating companies that do produce significant cash flows, be it in the insurance companies creating float or various non-insurance companies producing significant cash flows on an annual basis. We intend to continue to ensure that's”

Afternoon Session - 2025 Meeting

“strength of Berkshire as we go forward. It's absolutely critical to our to our long-term success. Now, with those cash flows and with the float, and then equally as touched on, we have significant resources already on our balance sheet. We'll really continue to move forward with a very similar philosophy. It's an identical philosophy to what we've had currently and for the past 60 years. We'll start by looking at those opportunities within our business and by that I mean within our insurance non-insurance businesses are they are they properly capitalized and have the opportunity to manage their business and that that will continue to exist they'll operate in an autonomous way but in the end Berkshire still manages the capital that will go into that those businesses or what potentially will come out of those businesses Equally, the next opportunity is to acquire businesses in their totality, or 100%. And there are great times when we can do that. Warren touched on. We had one that was interesting in the last quarter, the $10 billion acquisition. But again, the value relative to the risk have to be right. And if it's right, we want to own it. If it's not the time, there'll be another time to own assets like that. And then there's the opportunity to own pieces of companies through the equity. But as Warren's always highlighted, and again, this will be our approach to how we think around those companies. We own a piece of a company. We own a piece of that cash flow. We own a piece of their balance sheet. It's not just a share certificate. And as we approach that, we approach that and really we'll approach it with the thought that we're going to own this company for the long term. It's, again, understanding what, be it the 100% company or the 1% company, do we thoroughly understand, and thoroughly, do we have a strong view of what those economic prospects of those companies will look like? And Warren said it earlier, five years from now, 10 years from now, 20 years from now. If we don't have a view of a view of of that, we won't be investing, be it 100% or 2% of a company through equities. We have to thoroughly understand what those prospects look like. And associated with understanding those prospects, we need to understand the underlying risk of the businesses. And it's really the investment philosophy and how Warren and the team of allocated capital, for the past 60 years, you know, really, it will not change, and it's the approach we'll take as we go forward.”

2025 Annual Meeting Highlight Reel

“Well, we've got our managers over there, and I would say going back to 2018, it's been a, it's been very fortunate being this role because, one, I had to learn a lot of the businesses. And there's no question. And as Warren bought the businesses had that general knowledge, I absolutely had to engage with each of them and they've been great in sharing their business models, their approach, their thoughts around where the risks and opportunities are. And I think as we went through that, there's no question. I had questions and wanted to engage with them. I would say more active. But hopefully in a very positive way, and we've got an exceptional group. So it's worked out exceptionally well as I've gone through that period of time.”

Afternoon Session - 2025 Meeting

“Yeah. And I think these are very unique in that, not unique in that it's sort of reflective over where we're at. There will be very significant investment opportunities across a variety of industries. As Warren touched on in the electric, in the electric industry or the energy space,”

Afternoon Session - 2025 Meeting

“obviously know that well with our existing business. And the capital required to meet the long-term needs of what's currently projected as demand is enormous. And we, as Berkshire, will be in a good position to help address those needs. But the model around it and the risks that need to be addressed to deploy that type of capital will be, we'll be be different than they are today, Warren's point. Yeah, the muscle of the federal government will be needed, but the test of whether you can have 48 or 50, depending on the nature of things, jurisdictions that are cooperating to do something that has opposition, we'll have opposition in every single state. If they'd taken a voter during World War II, or they'd taken a vote on the, you know, the, you know, the, you know, the interstate highway system, it had, it would have been slowed down to an incredible degree. So the question is how to use these strengths that this country has to actually turn it in to what it should be capable of while self-preserving, you know, a republic with 48 and connected in a couple unconnected states. And it is, it'll be interesting to see what happens. But we do have capital and we actually have some knowledge that very few places have. I mean, we know what the game's about. But putting together that energy with knowledge and with capital and everything is just not easy. And it should be something that we're capable of in the country. But the country was not designed for having in a certain way it was not designed for having 48 different jurisdictions that could mess up anything that you were attempting to do. And during wartime, it's one thing to get agreement. But during peace time, it's something, it's a different problem. That's going to be one for the next generation. But I'm just, it's important.”

Morning Session - 2025 Meeting

“Yeah, when you think of the five, there's definitely a couple meetings a year, Warren. And I think the thing we're building with the five, five companies is, one, it's been a very good investment. We are really, as Warren touched on, we envision holding the investment for 50 years or forever, but I think we also are building relationships to do incremental things with each of those companies. And we really do hope to do big things with them globally. They bring different perspectives and different opportunities, and we see, and that's the, that's why we're building that long-term relationship with them. It's super long-term, and they have a much, they have a, They have different customs. They have different approaches to business. That's true around the world. And we don't have any intention in any way of trying to change what they've done because they do because they do it very successfully. And our main activity is just to cheer and clap. And that, I can still do it 94. So we will own those, you know, we will not be selling any stock. I mean, that is just, it's, that will not happen in decades if then. And my guess is that they will find things, because they cover the world pretty much, the five trading companies.”

Afternoon Session - 2025 Meeting

“Yes, well, I think your dad said it best. He highlighted that to become part of Berkshire, to own, to own some Berkshire, to own some Berkshire. your shares, you're going to have to work hard. And I think hard work takes all of us a long ways in life. And I would never diminish that, you know, there's a lot of things that matter in life, but if you start with a great work ethic and have that attitude that you want to contribute, you're going to go a long ways in life. And that'll, and you'll find great enjoyment because, as Warren said, you'll then, if you work hard, you're going to find the things you'll in life and it'll lead to that. And we truly look forward to the day you're part of Berkshire. Thank you.”

Afternoon Session - 2025 Meeting

“Well, that's a very good question. And we've made some mistakes in the past. When we bought Pacific Corp in 2000, what, five? Yes. Warren, Scott and David Salko and myself, three guys who, capitalists at heart, we're dealing with our own money, but we made a mistake by not carving. bringing up into the seven states that we were buying. And it came with an aggregation where it wasn't state by state. And we kept the same structure. And that was a big mistake. A part of the country is going to need electricity. And there are going to be places where public electric or privately held electric utilities would be very fully fully to operate and how it gets resolved in a democracy, we will find out. But those are the facts as they stand now, I would say, Greg.”

Afternoon Session - 2025 Meeting

“Yeah. The reality, the risk around the wildfires, i.e., that do the wildfires occur, they're not going away. And we know that, and the risk probably”

Afternoon Session - 2025 Meeting

“goes up each year. So, but what we can do to reduce the risk of it impacting our system and our underlying assets and the, unfortunately, the liabilities that come with such events, we can change that and manage that. We can't eliminate the risk, but we can reduce it. And that's where we've got our teams in the, in the West, but we really are approaching it across all our energy infrastructure because the railways, the wildfires have now occurred in Texas. They've had a variety of variety of them throughout the U.S. and we're all very focused on how we manage that risk. How we manage it is we start by addressing the actual assets, how we're maintaining them, and where we invest them, invest into them. So we try to make sure that they're either not causing the fire or potentially even hardening the system as to what can they withstand. So it's very much, we start with the operational focus. We then take it even further, and this is something Warren and I've discussed many times, is that the utilities started to recognize when we have these unusual weather events and Warren touched on what's been happening in Nebraska with storms, but they're equally occurring or significant events occurring out west. But when we have those, we've gotten very, very good at saying, okay, we have to manage the system different will potentially de-energize because there's likely to be an event. But the one thing we hadn't tackled, and this is very relevant to the one significant event we had back in 2020 in Pacific Corp, is we didn't de-energize the system as the fire was approaching. Because our employees and the whole management team have been all their lives trained to keep the lights on. And the last thing they want to do is turn those lights off and have a system de-energized. And after those events and as we really looked at how we're going to move forward in managing the assets and reducing that risk, we have clearly recognized as a team that we have to de-energize those assets. So now as we get fires encroaching at a certain number of miles, we de-energize because we do not want to contribute to the fire, or obviously harm any of our consumers or contribute, unfortunately, if there's a death. And that's really where we had to take our team, that we're managing a different risk now. It's not around keeping the lights on, it's around protecting the general public and ensuring”

Afternoon Session - 2025 Meeting

“the fire does not spread further. So we've gone as far as that, and I would, I'll stand corrected on this one, but we're probably the one utility or across our utilities that does that today. And we strongly believe that.”

Afternoon Session - 2025 Meeting

“We've, you know, fortunately that's something that we do deal with a lot because we have power outages that occur by accident. So when we look at critical infrastructure, because it's an excellent point, and we're constantly reevaluating it, and we do receive a lot of feedback from our customer groups as to how do we manage that? But that is something we deal with on a more routine basis than we'd ever like. The lights go out. We have to make sure the hospitals stay on. Emergency units can respond and all that. But there is risks there. So then we spend a lot more time educating the consumers in our consumer groups, our customers, okay, this is what will happen. We need to understand your unusual situations. And how can we best tackle that again, so we just don't take on another liability. another liability. So there's a lot around de-energization. And then just to take it to the last step, and Warren's touched on that, just in general, on energy policy, we have to work with our states and our regulators to ensure this was never a risk we took on or envisioned when we were investing in utilities, nor would any of the investors who've invested in other energy companies. You were, you earn a very set return for taking on a very set defined risks associated with that asset. And this has gone well beyond that. We don't earn the type of returns, nor can you earn a large enough return to take on these risks. So it's not just solving the return side. We really have to solve the risk side, which means we work with our regulators. We're working with our state legislators to get to the right answer. And that's really just really just, that'll be an ongoing process. There are not silver bullets out there, but every day our teams across utilities are working hard to reduce that risk, recognizing the fundamental risk of the wildfires is not going away. But there's some problems, yeah. There's some problems that can't be solved. And we shouldn't be in the business of taking your money, investors' money, and tackling things that we don't”

Afternoon Session - 2025 Meeting

“But it's getting, again, if you look at the risks, it's there, we have to manage through things like that. We'll get through that litigation. We're happy to report, for example, on that one. After five years, the Oregon Forestry Department has come out and said the fires, the other fires we did have that we were able to manage and extinguish, did not contribute to that fire. And that fourth fire is the largest fire of the fort. It's 60% of the claims. We're five years into effectively getting that information into the courts. Now, that will outline our legal strategy, obviously, going forward, but it's things we're dealing with. But we continue to learn from this as a utility industry. So we're in very much each of the legislatures, as I said, making sure we get clear definition where liability falls, what can the economic damages be, but most importantly, what can the non-economic damages be? And again, with the thought, we can't be the insurer of last resort. We just can't be responsible for everything that happens in a state. Yeah. If we want to do it with our own money, we can do it, but we're not going to do things with your money that we think are stupid. You ought to get rid of us if we do it. And it's easier to do stupid things with other people's money than it is with your own money. That's one of the problems government has, just generally. We don't want to bring it to private enterprise. It is important that the United States have an intelligent energy policy, just as it was important during World War II that we learned how to make ships. instead of cars, extremely fast. And we figured out the answer. We combined private enterprise with the power of the power of government. And how feasible that is in a democracy. And, you know, it was clearly obvious during World War what needed to be done. And we did it. But it's not so clear clear when. When you get 330 million people all arguing their own self-interest and, of course, deciding what will happen. And having the people often who are making the decisions reacting as they did 20 years earlier, you know, when they don't really bear the responsibility for the decision. Anyway, that's management. And we'll do our best.”

Morning Session - 2025 Meeting

“Greg, you. Well, Warren, I was going to add, as you're being patient, I happen to know, and I think that goes for our Ajit also and all our managers. Very patient when we're looking at opportunities. And as you touched on, we want to. act quickly. But while we're being patient, never underestimate the amount of reading and work that's being done to be prepared to act quickly. Because we do know, be it”

Morning Session - 2025 Meeting

“Nothing to subtract, but, uh, I would always just say it couldn't be more, as I've said in the past, more humbled than honored, obviously to be in this role. But to, uh, to, to, to, to, to, to, have actually been part of Berkshire for Warren. It's now 25 plus years had the opportunity to be part of Berkshire and to work with you and Ajit and our board, but many other people in our company. And as you touched on, um, when you find something like that and you find something like that, like Berkshire that's so special, it's, it's, you fall in love with it and it's, it becomes just what you want to do every day and it's just an incredible opportunity. So thank you.”

Afternoon Session - 2025 Meeting

“and it i i would say going back to 2018 it's been a it's been very fortunate being this role because one i had to learn a lot of the businesses and there's no question as uh warren bought the businesses had that general knowledge general knowledge I absolutely had to engage with each of them and they've been great in sharing their their business models or approach their thoughts around where the risk and opportunities are and I think as we went through that there's no question I had questions”

Afternoon Session - 2025 Meeting

“and wanted to engage with them and Warren talks about the curiosity being important as you go through things that would be my style to have questions and comments around their business their frameworks at the same time they have great businesses and they run them very autonomously and that that remains in place but if there's opportunities to see where maybe you've seen something in another business or an opportunity i may see in their industry we're going to discuss it and see if that's something we should pursue or are we properly addressing the risk and i found all our managers to be absolutely engaging on that and want to have those dialogues and i'd say that's a reflection of of my approach i'd also say that um when you think of our managers again very autonomous they they run their businesses they know it better than i ever will but if i see an opportunity that it's well worth their time to talk to another one of our managers if it's geico and they've gone through a technology transformation they're not by themselves that need to be thinking that way we want to make sure the right folks are talking and figuring out how we can benefit from the prior experiences so it's i would say more active uh but it hopefully in a very positive way and we got an exceptional group so it's worked out exceptionally well as uh as i've gone through that period of time”

Morning Session - 2025 Meeting

“I was just going to say that, relative to the question, that there's no question we were fundamentally very comfortable with investing in the five Japanese companies and recognizing we're investing in yen. The fact we could then borrow in yen, was a almost just like a nice incremental opportunity. But we are very comfortable both with the Japanese companies and with the currency we would ultimately realize, i.e. in the yen.”

Afternoon Session - 2025 Meeting

“Thank you for your, both your question and your comments, because it is, it is a important to understand, say, Berkshire Athaway Energy, but also how they operate. And maybe using Iowa, at least as a starting example, because I think that was one of the states”

Afternoon Session - 2025 Meeting

“cited in the report. One of the important things that I'd say early in us acquiring our energy companies, and I go back to when we acquired Mid-American, we acquired, we acquired We hired it in 1999, purchased Mid-American in 2000. Well, one thing that became very clear to myself and our teams was that what we do within our utilities is really driven in two fronts. One, we absolutely have to meet the requirements and the law that's laid out federally. But most importantly, we had to recognize we implement public policy across these states. these states. And that was an interesting conversation when I go back to Iowa. And again, the report cited that as a significant problem. It was early in the 2000s when, for the first time in Iowa, we were going to, as a utility, be short power. So we didn't have the energy. And we entered into a significant discussion with our governor at the time. And And really sat down and said, where do you want us to go as mid-American? And what resources do you want as a state? And at that time, we were predominantly a coal-based state. And we recognize that, obviously, and fundamentally, personally, viewed it as a risk. But we needed to have that conversation with our state. And as to how we would manage that going forward, the interesting thing was that as we had that conversation in the early 2000s, again, with the leadership of our state, it was clearly decided we wanted to continue to be long power, so i.e. not be short for our customers. We discussed the type of resource, and I remember a very clear conversation around we wanted to stay bound. across a variety of energy sources. And at that time, it was really coal and natural gas. And at that time, we made the decision to build the largest wind project in the U.S., in Iowa. So we undertook an effort to build three resources, a coal plant, a gas plant, and a what was the first wind project we owned in minimum American. And again, it was very consistent with what the state wanted, but we also laid some important groundwork there because we started to define the importance of renewable energy, non-carbon resources, but it has to be consistent with what the state wanted. And we've gone on over the, since that period of time, to deploy $16 billion into Iowa, associated with renewable energy. Again, very consistent with what our state wanted us to do, i.e. the underlying policy, we don't get to make that decision and just spend $16 billion.”

Afternoon Session - 2025 Meeting

“It's done in conjunction with our governors, our legislatures, our regulators, and at the same time, we've had the opportunity to retire five of the 10 coal units. Now, as the report highlighted, I, I, I understand people would like those other five coal units retired at this time. But to think we deployed 16 billion to retire five, and it's a very good outcome for our customers. We've been able to maintain our rates, they're the, some of the lowest in the country. So it's been done very efficiently, but the reality is we still need those five coal units to keep the system stable. We cannot have a Spain-Portugal situation. So we absolutely respect the input. We absolutely respect the process, and we'll continue to work with each of our states to identify the path they would like to chart, and we work hard to ensure there's good, balanced outcomes because we recognize the challenges they're associated with other folks' desires. So I think you'll continue to see our utilities implement policy consistent with the needs of their stakeholders or customers, and at the same time always respecting what's required by any of the federal standards. So thank you for your comments. Okay, 31. Let's see. Becky.”

Morning Session - 2025 Meeting

“Yeah, of our 49 that we measure closely, 21 were up and 28 were down, so you can tell it was really a mixed quarter when you go across the operating, the non-insurance operating businesses.”

Mohnish Pabrai's Interview at MOI Global on January 21, 2025

“the management teams and I you know went into the minds of the different coalinto the minds of the different coalinto the minds of the different coal companies the single greatest driver ofcompanies the single greatest driver ofcompanies the single greatest driver of how well we do long-term with coal ishow well we do long-term with coal ishow well we do long-term with coal is the price of coal and none of them canthe price of coal and none of them canthe price of coal and none of them can really help you with that you know theyreally help you with that you know theyreally help you with that you know they just don't have any crystal ball that'sjust don't have any crystal ball that'sjust don't have any crystal ball that's better than your crystal ball so that'sbetter than your crystal ball so that'sbetter than your crystal ball so that's the 800 pound gorilla in that case butthe 800 pound gorilla in that case butthe 800 pound gorilla in that case but you can understand from the interactionsyou can understand from the interactionsyou can understand from the interactions you know who would be the best companiesyou know who would be the best companiesyou know who would be the best companies and the best teams and you know the bestand the best teams and you know the bestand the best teams and you know the best culture and then you know can kind ofculture and then you know can kind ofculture and then you know can kind of take it from there and it sounds liketake it from there and it sounds liketake it from there and it sounds like it's a it's a combination uh speaking ofit's a it's a combination uh speaking ofit's a it's a combination uh speaking of coal specifically um of good Capitalcoal specifically um of good Capitalcoal specifically um of good Capital allocation meaning buying back your ownallocation meaning buying back your ownallocation meaning buying back your own shares when they're undervalued so itshares when they're undervalued so itshares when they're undervalued so it sounds like you can have a high degreesounds like you can have a high degreesounds like you can have a high degree of confidence that the management isn'tof confidence that the management isn'tof confidence that the management isn't going to um misallocate Capital theregoing to um misallocate Capital theregoing to um misallocate Capital there”

RARE Charlie Munger 2017 Daily Journal AFTER Interview

“Well, Berkshire has something like $8 billion worth of solar, almost all of it in California. We've got take or pay contracts from the two big utilities. the two big utilities. And so we have, and the way we leverage to this, like financial land, we'll probably get 15 or 18% or some ridiculous return on our equity.”

RARE Charlie Munger 2017 Daily Journal AFTER Interview

“And just sitting on our ass, all these little mirrors sit out there in the field. You have to polish them once in a while. And they'll get better, but they won't get 50%. They'll get, there's a limit to how much better they can get. And the first one we had, they track. had, they track, not at all, they just lay there. The second one, they track east to west, but not from the celestial stuff that goes on, changing the seasons. The next ones will be pointed right of the sun through every kind of that. And they, oh, it makes, but there's a limit to how efficient that stuff can get. On the other hand, since it's free and coming in from the sun and doesn't pollute, and there's a lot of worthless desert in the United States, it's a pretty sensible. it's a pretty sensible way to get power eventually. So, of course, there's going to be more and more of it.”

RARE Charlie Munger 2017 Daily Journal AFTER Interview

“Well, people try and make money out of that crap. I am very skeptical about all this home stuff. That works if the utility will pay twice what the power is worth. Then you can reduce your electricity bill. Well, why should the utility pay for twice what the power is worth? twice what the power is worth, you know. And so we think it's more efficient to have some big place like us create the solar and just out of the utility.”

Mohnish Pabrai's Guest Lecture at University of Nebraska, Omaha on October 15, 2024

“very smart and I think he understands the Burkshire culture and Burkshire is got a lot of Tailwinds going for it has a great reputation and so if we have a crisis which you know humans have a good record of creating crisis every 10 15 years or so if we have a crisis bursh show will shine it's got a lot of liquidity and it can go on the offense and such so I think the worksh show of The Future Has a good future say you're 19 years old and you don't have what you have now and you're doing it all over again how would you start should I assume you're 19 good yes okay well it's a very big advantage to be 19 Warren always says that when he asks this kind of question that he would happily trade places with he would give you everything he had you know make you 94 years old and then he would be 19 and go from there so he would be happy to trade places with you”

2024 Annual Meeting Highlight Reel

“I mean, if we do something really big, it's extremely likely to be in the United States. Will Berkshire, through BHE, continue to invest resources and jurisdictions where corporate assets may be subject to confiscatory state policies and actions?”

Afternoon Session - 2024 Meeting

“Without directly answering the question, I think there's one important thing is I think as we go through any transition, it's important to know that the capital allocation principles that Berkshire lives by today will continue to survive one. And I think that's what the thing I'd want to communicate that we have our operating businesses, insurance, not insurance. We're going to cap that we'll provide them the capital necessary to be successful and grow if it's appropriate. At the same time, we're expecting a return of capital from them when they have excess cash. And then as we've discussed, or you've touched on always looking at potentially new businesses as a whole or in a piece. And as you've always highlighted, and I fully agree, we'll always look at equities as we're investing in a business, either 1% or 100%, but we're looking at the business. We're looking at the economic prospects of that business and how sustainable it is and what it will look like 10 years from now is the capital we originally put in at exponential risk or where is that risk set, that profile? And then of course, and then we'll obviously have our continue to always put excess cash in the safest investment there is in U.S. Treasuries knowing we want to maintain that fortress of a balance sheet for two reasons. One to act, but also to always protect our shareholders. If we have a, we want to maintain that. the position Berkshire is in now, realistically for the, to insure it, to insured in jurors.”

Afternoon Session - 2024 Meeting

“Yeah. So absolutely, in 2019, we saw TechData as a unique opportunity when we saw the other bid and the underlying value of that distribution business. We did, Warren and I were talking, others made the conclusion. We should talk to management. We talked to the team. They were very interested in Berkshire being their long-term owner. And we still saw a good value in the opportunity. And we had a good understanding of distribution. businesses. We have TTI. It's not exactly identical to tech data in that they're very specific to the who their customers are and who they serve and supply and who they purchase from. Because on the distribution side, it's important to have that input coming in from folks you want their product and you know it's needed on the other side that there's demand for it. And they had an excellent model. If you think of TTI, for example, that warns talked about Paul many times and the person who founded this business.”

Afternoon Session - 2024 Meeting

“But it's a unique business in that our revenues on that business is approximately $10 billion. The average part they sell is a little over $9.9.5 billion parts go through their warehouse every year. But it's a model that if you have the right people on both sides of the equation and you understand that well, there's a unique opportunity there. And that is something we saw in tech data. And as Warren highlighted, we made our bid. Unfortunately, it was then taught by the original bidder and we moved on. But we thought very highly of it. Yeah, we've probably seen at least five of them in aggregate. over the last three or four or five years. It's not a business that you can dream about because it's a decent business. But, for example, in many of the items, the manufacturer just, they don't want to tie up their capital. You tie up, if you have, you know, a million plus SKU, this is the whole stockkeeping is. It's like selling jelly beans or something like that. And you do, you're serving a purpose to a degree, but you don't, you don't really, it isn't your product in effect of it. I mean, you're just a good system for the producer of the equipment to get it to the end user without tying up a lot of capital. Right. Being in a business, they don't want to be in. And so we understand it. We, we, we, we, we, but there's no magic to it. There was a, with TTI, you had a marvelous man running things. And he, you know, and he's, and he, he, he, he, he, he, he, he, he, he, he, he, he, he, he, he, he, he, he, he.”