Matt McAllister knows the drill.
He has travelled from his home in Fairhope, Alabama to attend Berkshire Hathaway’s annual shareholder meetings in Omaha, Nebraska since the financial crisis. He queues with friends outside the colossal convention centre at around 2am to snag a prime spot to hear Warren Buffett’s guidance up close.
But this year McAllister arrived in the dark to find a handful of fellow shareholders had already set up camp with sleeping bags — the earliest he had ever seen.
“There was a lot of concern that it might be Warren’s last meeting,” said McAllister.
Those fears were confirmed hours later when the 94-year-old Buffett told the crowd he would step down as chief executive of the sprawling conglomerate after six decades.
Buffett has amassed many thousands of devotees for something more than his investing acumen. While rarely straying into politics, he spends hours at the annual meetings answering questions from shareholders about how to lead their lives — financially and otherwise — and which way he thinks the global economy might be headed.
“He’s a major inspiration to a lot of people,” said Larry Knight, who travelled from Ohio for his first meeting this year. “We knew this might be coming, and that’s why we came this year.”
The meetings have been a tradition since 1965. Back then they were tiny, with only two or three people showing up to an event held in an old loft above one of Berkshire’s New England textile mills. The meetings were eventually moved to an insurance subsidiary’s cafeteria — with Buffett’s biographer writing that as recently as 1981 only 22 people had attended. Employees were rounded up so the room did not appear empty.
They now attract tens of thousands from around the world eager to hear the folksy advice of the man dubbed the “Oracle of Omaha”, who has built a $168bn fortune and a reputation as one of history’s greatest investors. Shareholders who return year after year have built friendships and networks here, making the annual events a sort of reunion.
Many had feared this moment was coming. Buffett delivered it in his usual casual manner, slipping in the announcement during the final five minutes after taking questions for nearly four hours. It seemed to be a surprise even to Greg Abel, his anointed successor, who will take over at the end of the year.
“Greg doesn’t know anything about this until what he’s hearing right now,” Buffett told the crowd.
It was a poignant end to an event that has become as much a festival as a shareholder meeting. With a multi-day shopping event featuring Berkshire’s portfolio companies, a big picnic, and a 5k running event, the weekend is often called “Woodstock for Capitalists”.
Starting on Friday, many of Berkshire’s portfolio companies — including ice cream maker Dairy Queen, insurance group Geico and clothes seller Fruit of the Loom — set up booths, hawking discounted goods for shareholders and their guests. Long lines snaked around the convention centre on Friday afternoon, as shareholders and chief executives of the portfolio companies alike bought armfuls of products.
Downtown Omaha was filled with Berkshire devotees of all ages and backgrounds. On Friday night, steakhouses throughout the city brimmed with jubilant investors eager to meet fellow Buffett fans.
For many, the meeting was emotional even before Buffett announced his retirement plans. Ruben and Natalie Henriques, who live in Sydney, Australia, first attended the Berkshire meeting on their honeymoon 15 years ago. Buffett himself packed financial guides in the trunk of his car when he left town to celebrate his first wedding. This year, the Henriques brought their 9-year-old daughter Valentina.
“We just love coming back and being part of this. It’s a bit of a pilgrimage,” said Natalie. They said they were still in shock from the news that he would soon step down. “I got a bit teary.”
Thousands of the investors who attend the Berkshire meeting each year have Buffett to thank for growing modest investment sums into small fortunes. Cheryl Willis — who was just a grade apart from Susan Buffett, Warren Buffett’s daughter, at Omaha Central High School — and her husband Gary first bought Berkshire stock years ago.
“It benefits our legacy: our children and grandchildren,” said Willis. “One grandchild goes to Loyola in Chicago, and it’s kept all of our children and grandchildren on professional tracks.”
Even as Abel gets ready to take the helm of Berkshire, the couple has no plans to sell their stock, taking a cue from one of Buffett’s own investment edicts of investing for the long-term.
“I think Abel will follow the Berkshire investment plans,” said Gary. “At one point I was afraid the stock would dip when Buffett steps down. But I think it will level out and come out higher.”
After Buffett stepped off the stage, hundreds of shareholders lingered in the arena for the official meeting with voting to follow. In a first, Abel would hold court alone.
Peg and Nelson Rathert, who had flown in from Denver, sat in their prime seats on the floor to take it all in.
“I’m so glad he’s doing it this way,” said Peg, who is 73, with her eyes glistening.
“There were 40,000 clapping hands of thanks.”
Additional reporting by Eric Platt
