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.
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 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.
They were eventually moved to an insurance subsidiary’s cafeteria — with Buffett’s biographer writing that as recently as 1981, only 22 people attended. Employees were rounded up so the room did not appear empty.
The meetings 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 develop friendships and networks, making the annual event a sort of reunion.
Many had feared this moment was coming. Buffett delivered the news 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 picnic and a 5k run, the weekend has been 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 as shareholders and portfolio company executives alike snapped up armfuls of products.
Downtown Omaha was filled with Berkshire devotees of all ages, and steakhouses throughout the city brimmed on Friday night 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. 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 [University] in Chicago, and it’s kept all of our children and grandchildren on professional tracks.”
The couple has no plans to sell their stock as Abel prepares to take the helm at Berkshire, 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, remained in their prime seats on the floor to take it all in.
“I’m so glad he’s doing it this way,” said Peg, 73, her eyes glistening.
“There were 40,000 clapping hands of thanks.”
Additional reporting by Eric Platt in New York
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