What financial advisors can learn from Warren Buffett and Berkshire’s 2023 annual shareholder meeting

What does a carnival seem like for buyers? 

On this yr’s version of the Berkshire Hathaway annual shareholders assembly, dubbed the “Woodstock of Capitalism,” the reply contains:

• A remixed Alicia Keys and Jay-Z tune, Empire State of Thoughts, about certainly one of America’s most lauded firms — changing “New York” within the lyrics with “Berkshire”
• A goofy do-it-yourself film with actress Jamie Lee Curtis
• Workers in large gecko and large pink flamingo fits
• Hordes of individuals snatching up Buffett-branded souvenirs in a Black Friday-like mad sprint throughout a makeshift mall
• The CEO of Activision Blizzard, during which Buffett is a big investor, casually chatting with CNBC on stay tv behind the patrons
• CEO and Chairman Warren Buffett holding forth for hours along with his pal and enterprise associate, Vice Chairman Charlie Munger, on the world economic system, America, holdings at Berkshire, household and success in life. 

A lot of Wall Road attended alongside residents of Foremost Road. The official gown code was “informal,” however many wore fits as if they had been going to church or a enterprise convention. Some resembled vacationers on trip, whereas others had been startup founders and company executives. Apple CEO Tim Cook dinner, Microsoft co-founder Invoice Gates and Citi CEO Jane Fraser had been among the many excessive flyers on the occasion, in its second yr again in particular person because the pandemic. 

Eventgoers from across the planet arrived as early as 4:00 a.m. to face outdoors of downtown Omaha’s CHI Well being Heart on Saturday; the road ultimately snaked down a number of blocks earlier than the doorways opened at 7:00 a.m. All informed, greater than 30,000 individuals attended, Barron’s estimated, together with this reporter. CNBC recorded an unique on-line broadcast of the complete occasion, leaving out the presentation and votes on shareholder proposals on the finish, the place all proposals had been voted down. 

Victoria Zhuang

Inside, the ambiance was celebratory and chaotic at instances but in addition solemn. In an unsure political and financial world, many attendees had been hoping to lap up knowledge from capitalism’s beloved poster kids, who’ve lived via the Nice Melancholy, World Battle II and different crises of worldwide historical past with consistency of their enterprise outlooks and enviable investing success. 

“We had a aggressive broadcast going out someplace within the U.Okay.,” Buffett joked, referring to the coronation of King Charles III in England that very same morning. “We have our personal King Charles right here immediately,” he added, referring to Munger — to roaring approval and laughter. 

Buffett is popping 93 this yr on August 30 and Munger turned 99 on January 1, so many attendees had been questioning if this was the final time they’re going to see the dynamic duo collectively on stage — though as a working joke between them, that is been the priority of buyers for many years now.

Younger and outdated, principally male however typically feminine, from infants to elementary school-age kids to younger adults to the aged — all who got here to see the famed Oracle of Omaha had been silent as they listened, excluding one toddler-sized lady on the ground who started wailing for her mom and needed to be rushed out of the room by an irritated man who seemed to be her father — all as Buffett and Munger spoke in flip and took questions from shareholders. 

Victoria Zhuang

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For monetary planners, the takeaways transcend the packing containers of See’s Candies, a Buffet favourite and holding, and signed copies of books by Berkshire students on Buffettology.

For Mike Caligiuri, an authorized monetary planner who’s the founder and CEO of registered funding advisor Caligiuri Monetary in Columbus, Ohio, the assembly’s openness to questions by shareholders of any age reveals the significance of actually listening to buyers’ wants and issues — even to these of kids, akin to a 13-year-old named Daphne who asked Buffett what is likely to be essentially the most incisive query of the day. 

Victoria Zhuang

Daphne, whose final identify is unknown, requested if Buffett was involved concerning the U.S. greenback dropping its standing as the worldwide reserve foreign money, and what buyers ought to do about that threat.

“The reality might also be that it takes an harmless kid’s braveness to say the ‘quiet half out loud,’”  mentioned Caligiuri, who adopted information of the occasion on-line. 

For Jan Valecka, a monetary planner who attended for the primary time in particular person this yr, the simplicity of Buffett and Munger’s emphasis on “no nonsense, plain vanilla investing” and long-term positive factors was the largest takeaway. Valecka mentioned she was impressed with Berkshire’s method to shunning dividends, as Buffett mentioned he believed it was higher to reinvest that cash again into the corporate and reward loyal shareholders with higher returns. 

“I used to be amazed that the auditorium was full and I watched individuals sit for 3 hours straight hanging on each phrase,” Valecka mentioned. “Buyers are all the time in search of the key and it’s utilizing frequent sense and being long run in your funding technique.” Valecka is the proprietor of Valecka Wealth Administration, an RIA affiliated with LPL Monetary primarily based out of Dallas, Texas.

Beneath are 4 extra enterprise and life classes out of Omaha for monetary advisors. 

Disclosure: this reporter will not be a shareholder in Berkshire Hathaway, however was invited to attend the annual shareholder assembly because the visitor of a category B shareholder.