The Berkshire Hathaway annual meeting, long characterized by the folksy wisdom and humor of Warren Buffett, saw a significant shift this Saturday as Greg Abel, the new CEO, took the helm for the first time.

Shareholders still queued outside the Nebraska arena from midnight, but the atmosphere was notably different, with attendance down significantly and the venue only a little over half full.

This marks a departure from previous years when over 40,000 people gathered to hear Buffett, 95, and his late partner Charlie Munger, who passed away in 2023.

While Buffett stepped down as CEO in January, he remains chairman and offered a few comments during the proceedings.

Discussions at the meeting largely centered on Berkshire’s diverse businesses, but also touched upon pressing global issues such as the Middle East conflict and the evolving risks and benefits of artificial intelligence.

Vice Chairman Ajit Jain addressed the potential for insuring ships navigating the Strait of Hormuz, stating that Berkshire would consider it if the pricing was appropriate and the vessels were escorted by the U.S. Navy.

Jain expressed confidence in the insurance industry’s capacity to absorb such risks, acknowledging the critical role of the waterway for global oil supplies. “The short answer is it depends on the price,” Jain affirmed.

Abel noted that the conflict in the Middle East presents challenges for Berkshire’s operations due to oil’s fundamental role, but expressed confidence in his managers’ ability to adapt. “We very quickly move to what is the best solution for our customers,” Abel said.

The meeting commenced with a video tribute to Buffett and the company’s history, including a clip of the standing ovation Buffett received last year upon announcing his step down.

Abel then announced the symbolic retirement of jerseys bearing Buffett’s and Munger’s names, which will be displayed in the arena rafters. Buffett reiterated his praise for Abel, expressing satisfaction with his decision to promote him.

“He’s very, very smart about businesses,” Buffett remarked during a live interview aired at the meeting. Abel, who grew up in Canada, is nearing American citizenship and has been with Berkshire for over 25 years.

Signs of this leadership transition were evident throughout the 200,000-square-foot exhibit hall.

A caricature of Abel playing hockey adorned commemorative See’s Candy boxes, and at the Pilot Travel Center booth, images of Abel and Buffett on a semitrailer truck windshield depicted Abel in the driver’s seat. Shareholders also lined up to purchase a Squishmallow version of Abel, joining the popular Buffett and Munger stuffed dolls.

Investor Chris Bloomstran, president of Semper Augustus Investments Group, reflected on the change: “Sadly we miss Warren and Charlie and that show which was fun, but it’s a business meeting for a lot of us and hearing what the businesses are doing is what it’s all about.” Many attendees also travel to Omaha primarily to network with like-minded value investors and attend related conferences. “That’s why I’m really here, really here is to network with other people,” said Bob Robotti, who runs his own investment company.

Abel opened the meeting with a detailed overview of Berkshire’s major businesses, providing a granular explanation of the performance of its insurers, railroad, and utilities. He highlighted Berkshire’s use of artificial intelligence “to solve problems at our companies.” However, Abel also used a deepfake video of Buffett asking a question about Berkshire’s long-term prospects to underscore the challenges and risks posed by AI. “It’s scary,” Buffett commented, citing the potential for AI to create convincing fake versions of world leaders.

Abel repeatedly emphasized that Berkshire’s fundamental approach, which empowers CEOs to manage day-to-day operations, will remain unchanged. He also affirmed that he would not feel pressured to prematurely deploy the company’s nearly \$400 billion cash pile. “One of our greatest strengths at Berkshire is patience and being disciplined at allocating our capital,” Abel stated. “We’re not anxious to deploy capital into subpar opportunities.”

CEOs from Dairy Queen, See’s Candy, Jazwares, and Brooks Running confirmed that little has changed since Abel’s promotion, beyond now reporting to NetJets CEO Adam Johnson, who oversees 32 retail and service businesses.

“I think this is a very deeply rooted culture that Warren has created, and I believe the transition to Greg is going to be rooted in those values that Warren has for 60 years instituted and will continue,” said Brooks CEO Dan Sheridan.

DQ CEO Troy Bader added, “That’s the greatest combination right now, to be able to have that transition in leadership where Greg and Warren can still work together.”

Abel is known for being a more demanding and hands-on leader than Buffett, challenging CEOs to strengthen competitive advantages and prioritize customer care. While he asks tough questions and offers advice, he avoids micromanagement.

With Buffett remaining chairman and the largest shareholder, drastic changes are unlikely. Robotti stressed that business performance should outweigh the entertainment value of the annual meetings for shareholders.

“My hope and expectation are they’re picking people who have competency in running a business and not necessarily public speakers and presenters,” Robotti said.