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Buffett facing tough AGM grilling | |
(about 3 hours later) | |
The annual general meeting for US investor Warren Buffett's company has opened in the US, with Mr Buffet saying he expects to face tough questions. | |
A record 35,000 shareholders are attending the Berkshire Hathaway AGM, held in Omaha, Nebraska. | |
Mr Buffett told them the US government was taking the right steps to aid recovery from the financial crisis. | |
The value of Berkshire Hathaway's investments fell by nearly 10% in the last year. | |
Mr Buffett's personal wealth shrank by $25bn (£17bn). | |
It was the worst performance in more than 40 years for the "Sage of Omaha". | It was the worst performance in more than 40 years for the "Sage of Omaha". |
The BBC's North America business correspondent Greg Wood says Mr Buffett is normally greeted by an adoring crowd at the AGM for this company he has run since 1965. | The BBC's North America business correspondent Greg Wood says Mr Buffett is normally greeted by an adoring crowd at the AGM for this company he has run since 1965. |
But the investor has had a particularly bad year in which his legendary stock-picking skills seemed to have deserted him, says our correspondent, especially when he lost nearly $3bn after buying a large stake in oil company ConocoPhillips just before the oil price crashed. | But the investor has had a particularly bad year in which his legendary stock-picking skills seemed to have deserted him, says our correspondent, especially when he lost nearly $3bn after buying a large stake in oil company ConocoPhillips just before the oil price crashed. |
Analysts say they expect the meeting to have a more serious tone that in previous years. | Analysts say they expect the meeting to have a more serious tone that in previous years. |
Speaking at the opening of the meeting, Mr Buffett said it had been "a very extraordinary year" and the economy had experienced "a financial hurricane". | |
He has previously said he made some "dumb" investment errors in 2008 and compared the US financial situation to an "economic Pearl Harbour". | |
But he said the government had reacted well, telling his investors: "Overall, I commend the actions that were taken." | |
Berkshire's range of investments are seen as a bellwether of the US economy. | Berkshire's range of investments are seen as a bellwether of the US economy. |
Tough questions | Tough questions |
About 35,000 people are attending the company meeting | |
In a change from previous years, half the questions at the meeting are being drawn from email submissions and posed by journalists rather than stakeholders. | |
Mr Buffett has previously said that neither he nor Vice-Chairman Charlie Munger would know the questions in advance. | |
"We know the journalists will pick some tough ones and that's the way we like it," Mr Buffett said in a letter to shareholders. | "We know the journalists will pick some tough ones and that's the way we like it," Mr Buffett said in a letter to shareholders. |
But he said there would still be an opportunity for shareholders to ask questions directly, so those at the meeting would "continue to get some good - and perhaps entertaining - questions from the audience as well". | But he said there would still be an opportunity for shareholders to ask questions directly, so those at the meeting would "continue to get some good - and perhaps entertaining - questions from the audience as well". |
Some questions have already raised the issue of appointing a successor for 78-year-old Mr Buffet. | |
The company has said it has three internal candidates for Mr Buffett's Chief Executive Officer role and four for Chief Investment Officer. | The company has said it has three internal candidates for Mr Buffett's Chief Executive Officer role and four for Chief Investment Officer. |
But Mr Buffett told the meeting he would not name a successor to begin following him now as all candidates were already running businesses and those not appointed would possibly choose to leave the company, the Associated Press reported. | |
"It'd be a waste of talent. I don't really see any advantages in having some crown prince around," he said. | |
Despite its troubles, Berkshire Hathaway has fared much better than many other funds in a year of huge stock market declines. | Despite its troubles, Berkshire Hathaway has fared much better than many other funds in a year of huge stock market declines. |
Mr Buffett has said he is prepared to hold his investments for a long time - until they come good, says our correspondent. | Mr Buffett has said he is prepared to hold his investments for a long time - until they come good, says our correspondent. |