On Saturday, amid concerns of a banking crisis and economic downturn in America, renowned investors are presiding over the annual general meeting (AGM) of Berkshire Hathaway Inc. In this meeting, company Chairman and CEO Warren Buffett, and Vice Chairman, Charlie Munger will answer shareholder questions for five hours.
Buffett’s comments about the banking industry going through a crisis in America and his future strategy is of great interest to investors amid economic crises in US and Europe. Investors are enthusiastic to participate in this meeting being held in Omaha, one of America’s main cities. They are keen to hear Buffett’s views on the crisis in the banking industry and his strategy for the future. Currently, there are concerns about an economic downturn in the US, as the Federal Reserve is increasing interest rates and the limit for the US government to borrow money ends on June 1, 2023. Shareholders are expected to ask questions about these issues.
According to media reports, there is a heavy crowd of investors in the meeting eager to hear what Buffett and the Vice Chairman of Berkshire Hathaway will say.
One more significant aspect related to this meeting is that Buffett is turning 93 years old. The meeting might also witness the announcement of the successor of Berkshire Hathaway. It is believed that the company’s Vice Chairman (non-insurance operations) Greg Abel can be made the new CEO of the company. Investors are also aware that due to aging, Buffett and the company’s Vice Chairman Charlie Munger’s tenure might not last long.
In fact, due to the expensive debt in America, many small and medium-sized sized banks have been stuck in a crisis. Silicon Valley Bank, First Republic, and Signature Bank were the first ones to face this crisis. Now, PacWest Bancorp and Western Alliance Bancorp are also facing such crises. There has been a significant decline in the shares of these banks in the US stock market.
Buffett has warned investors about the banking crisis in America. Last month, he said in a program that this is not the first time we have seen a banking crisis. Such crises have been seen before, and in the future, there can be more such crises. However, people do not need to worry about it because the money of small investors is safe with the Federal Deposit Insurance Corporation (FDIC). Although the bank may sink, most of the investors’ money will be secure.
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