How To Prepare For Warren Buffett’s Virtual Annual Meeting

Tomorrow you can attend Berkshire Hathaway’s first-ever virtual annual meeting starting at 4:00 pm EST on Yahoo! Finance. 

In a normal, non-virus year, about 40,000 people from around the planet travel to Omaha to attend the Berkshire shareholder meeting. Now, millions of people in their homes will get to see and hear the Oracle of Omaha answer investor questions. 

I will Zoom-attend the meeting with friends watching from Toronto, Canada and Brisbane, Australia. We met years ago in Omaha and celebrate annual rituals like the 7 a.m. running of the convention center entrance – almost as dangerous as the running of bulls in Pamplona! In 2013, we celebrated Warren’s endorsement of my book – Investing Between the Lines.

MORE FROM FORBESHow Warren Buffett Made History Last Friday And Why This MattersBy Laura Rittenhouse

What can millions of virtual spectators want to know from Warren and Greg Abel, the CEO of Berkshire Hathaway Energy? Here are my five questions:

1. Who’s on first? This year, instead of sharing the stage with Vice-Chair Charlie Munger, Warren will be joined by Greg Abel, Berkshire Board Member and CEO of Berkshire Hathaway Energy. Greg is one of two candidates tapped as Warren’s potential successor. The other, Ajit Jain, heads Berkshire’s insurance businesses. Does Ajit’s absence at the virtual meeting signal Buffett’s preference for Abel?

Look for clues: Consider Abel’s track record. He excels in acquiring, building and operating complex businesses. He is aligned with Berkshire’s values of humility, hard work and stewardship. Large owners of BHE debt have ranked him as the #1 best performing CEO in the utility sector. On the other hand, over the years, Buffett has told investors that Ajit is more important to Berkshire than he or Munger.

2. What does Warren think about the stock market and the impact of printing trillions of dollars to shore up the economy? Readers of my book, Buffett’s Bites, may recall Buffett’s famous quote in February 2009 after his shareholder letter was published, “The economy is in shambles, but that has nothing to do with whether the market will rise or fall.”

Like swarming locusts, journalists around the world quoted “the economy is in shambles.” And they omitted his market commentary. Sure enough, on the Monday after the Saturday release date, the S&P traded down to its lowest level since 1997. For investors wanting to buy filet mignon stocks at hamburger prices, it was a day to remember!

So far, Warren has been silent about his current market views. Can he avoid talking about this on Saturday? Perhaps he agrees with Oaktree Capital’s Howard Marks who recently noted the disconnect between a stock market that is down only 15 percent from its all-time high in mid-February, and “a world that is more than 15 percent screwed up.”

3. With $125 billion on its balance sheet, why isn’t Berkshire buying companies or making loans as it did in 2008? Barron’s Andrew Bary recently reported how Warren keeps Berkshire’s cash in ultra-safe T-bills. The company holds no commercial paper or corporate short-term debt. This conservatism creates a confidence cushion. It allows Berkshire to honor potential claims from its insurance businesses, to be opportunistic buyers of valuable businesses, and also to meet ongoing obligations.

4. Will Warren comment on the initiative he supported at last year’s annual meeting to increase diversity in the U.S. capital system by growing the number of female-owned investment funds – beyond 3.0 percent where it currently stands? As one of the organizers of the first-ever all-female investing conference at last year’s Berkshire Hathaway Meeting, I was among those cheering as Warren – like a rock star – entered the Downtown Hilton Ballroom on the Friday before the annual meeting to kick off this historic gathering of female portfolio managers, financial analysts, and investors.

When asked what he thought of a roomful of female investors, Warren said, “Way overdue.”

What progress has been made since that meeting? Click here to find out.

5. How long will Warren and Greg answer questions? It’s not certain, but I’m guessing it will be less than the six hours that investors get for Q&A at the in-person meetings.

6. What refreshments will you serve at your virtual Berkshire Hathaway meeting party? The Toronto watchers in our Berkshire family are hunting for Dairy Queen Dilly Bars. Our Australian friends will watch after their dinner, so they will likely be sipping a nice Cabernet.

Me? Here in epicenter New York City, I will dine on a hamburger, with plenty of Heinz toppings – and a Diet Coke!