Berkshire Hathaway’s questionable performance and governance

THE ANNUAL shareholders’ meeting of Berkshire Hathaway has been dubbed “Woodstock for capitalists”, so large is the throng it usually attracts. For the second year running, though, thanks to covid-19, the groupies have been denied their close-up love-in with Warren Buffett. The event on May 1st was online only, with Mr Buffett joined on screen by his longtime sidekick and fellow nonagenarian, Charlie Munger—a headline act that makes the Rolling Stones look like striplings.Nevertheless, Warren and Charlie outdid Mick and Keith for stamina, taking more than three hours of questions, covering everything from Berkshire’s first-quarter results, announced earlier that day, to the ways in which its subsidiaries do and don’t resemble children. For Buffettologists, the highlight was an apparent slip of the tongue by Mr Munger: “Greg will keep the culture”. The following day Mr Buffett, who had hitherto refused to publicly name an heir apparent, confirmed that the nod had gone to Greg Abel, the 58-year-old head of Berkshire’s non-insurance operations.