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Greg Abel, Warren Buffett's replacement, is seen maintaining Berkshire culture
Greg Abel, who will succeed Warren Buffett as the head of Berkshire Hathaway by the end of the year, is expected to maintain the culture of the company even if he doesn't have the same star power as his legendary boss. Analysts and investors expect Abel, who is now vice chairman of Berkshire, to continue the company's tradition of investing for the long term and not paying dividends to shareholders. Berkshire has been planning since decades for the day when Buffett will no longer be running the company. Buffett has led the company, Berkshire, since 1965. Buffett's announcement on Saturday that Abel would replace him as CEO was a shock. The Oracle of Omaha hadn't previously indicated a clear intent on when he would step down. Buffett has alluded for years to his age and, before announcing the departure of Berkshire at its annual shareholder meeting held in Omaha, Buffett said that Abel would be better suited to the task than he himself. Buffett stated that "it works better with Greg Abel because I don't work as hard as Greg Abel does." Abel was asked what his approach to managing subsidiaries would be. He replied, "More actively." Abel also praised Buffett. He said "Warren is obviously a remarkable educator, and I've benefited from this for years." A DETAILS MANAGER Gregory Edward Abel, a member of a working class family, was born on June 1, 1962 in Edmonton, Alberta. According to the Horatio Abel Association of Distinguished Americans (an education non-profit) that recognized Abel in 2018, Abel worked odd jobs cleaning discarded bottles and filling fire extinguishers. In a video on the Horatio Alger site, Abel described his childhood as a "real working-class family" where people sometimes had jobs and other times didn't. "You realized that we all worked hard to improve our family." Abel graduated in 1984 from the University of Alberta and worked at PricewaterhouseCoopers and energy firm CalEnergy. He became the chief of MidAmerican Energy in 2008, after Berkshire Hathaway Energy took over MidAmerican Energy. Abel oversees Berkshire Hathaway's non-insurance businesses, including BNSF and Berkshire Hathaway Energy, as well as dozens of chemical and industrial operations, retail and wholesale operations. In the past year, he has also taken on some of Buffett's capital allocation responsibilities. Buffett stated last year that he wanted Abel to be the final decision maker on Berkshire's public stock portfolio, which was a task previously believed to be reserved for others. Abel is described by many executives as a sharp questioner, who pays close attention to financial metrics. He also wants to understand how businesses are run. Abel's question "ensures you are thinking about directives and plans for your company", said Chris Kelly. Kelly is the chief executive of HomeServices of America - the largest residential real estate brokerage in America. "You leave the conversation smarter." (Reporting from Koh Gui Qing, Omaha; additional reporting and editing by Jonathan Stempel, Carolina Mandl and Megan Davies)
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Buffett steps down as Berkshire CEO; Abel will take over
Warren Buffett announced on Saturday that he would step down from his role as Berkshire Hathaway's chief executive at the end the year and give the reins over to Vice Chairman Greg Abel. Buffett, who is 94 years old, told Berkshire's Annual Meeting that "I believe the time has come for Greg to become the CEO of the company by year end." Buffett told his children about his plans, but Buffett said Abel wasn't aware. Abel is a vice chairman of Berkshire since 2018 and Buffett's likely successor in the role of chief executive will be Abel. Buffett said that he has "zero intention" of selling his Berkshire shares, and nearly all will be donated to charity after his death. Buffett's decision to retire caps off a 60-year journey that saw him transform Berkshire into a massive conglomerate, with businesses in every sector of the U.S. Buffett, with the help of his friend and business partner Charlie Munger who died in November 20,23, took over Berkshire and turned it into a success story in America. Berkshire Hathaway, headquartered in Omaha, Nebraska where Buffett and munger grew up today, is a conglomerate worth more than $1 trillion with over 200 companies including Geico auto insurance, the BNSF railway, industrial and chemical firms, utilities, Dairy Queen ice-cream, Fruit of the Loom Underwear, and See's Candies. Buffett is known as "the Oracle of Omaha" for his investment success, his folk wisdom and modest lifestyle. Buffett has never left the home he bought in 1958 for $31,500. Buffett was a student of Benjamin Graham, an economist and former professor. Graham stressed the importance of fundamentals of companies and the need to avoid overpaying for assets. This approach made it difficult to use Berkshire's ever growing cash hoard of $347,7 billion as at March 31. Abel began working for the former MidAmerican Energy (now known as Berkshire Hathaway Energy) in 1992, 8 years before Berkshire Hathaway took over. Later, he led the business for 10 years. Buffett joked that he did all the work and I took the bows in a television interview from April 2023. Forbes magazine estimates Buffett's fortune at $168.2 Billion. It would be much higher if he hadn't given away over half of his Berkshire stock to charity since 2006. The rest of the remaining is expected to be used for a New charitable trust Susie, Howard and Peter are his sons. Abel faces many challenges, including how to grow Berkshire without paying too much for acquisitions. He will also have to decide whether or not to pay a dividend as well as how to use the cash. Buffett acknowledged in 2024 that the size of Berkshire would likely affect its growth prospects. Berkshire has multi-billion dollar stakes in Apple, American Express, and Bank of America, among others. Howard Buffett (70) is expected to succeed to his father in Berkshire as the non-executive Chairman, helping to preserve the company's cultural.
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QUOTES -Buffett quotes from Berkshire Meeting: Trade, Opportunities, United States
Warren Buffett presiding over the 60th Berkshire Hathaway shareholders meeting, Warren Buffett gave his views on everything ranging from investment opportunities to trade. Here are some Buffett quotes: ON TRADE Trade can be a war act. We should trade with other countries in the United States. "We want a prosperous and peaceful world." On U.S. EXCEPTIONALISM "The day I was conceived was the luckiest of my life, because I was born in America." "I'm just lucky... I've been through all sorts of things... You know, if I were born today, I'd just keep negotiating until they said I could be in the United States. "We're all very lucky." "The United States of America has changed since my birth in 1930." We've been through many things. We've experienced great recessions and wars. We've seen the development of an Atomic Bomb that we could not have imagined (when I was born). "So I wouldn't get discouraged." On Opportunities: Not that long ago, we were very close to spending $10 Billion. We would spend $100 billion. The investment business has a problem in that it is not a well-organized industry. "We're running an opportunistic business." Investing in securities vs real estate: In the United States, the opportunity in the real estate market is much greater than in the security sector. In real estate, you are dealing with...usually...a single owner or family who owns a property. Maybe they have had it for a long while, or maybe they have borrowed too much money on it. The population trends may be against them. It's a huge decision for them. For a 94-year-old man, it isn't the most exciting thing to be involved in negotiating if it could take years. On CURRENCIES "Obviously, we would not want to own anything we believed was in a money that was going to hell." "There could... There are things that happen in the United States... which make us want to have a lot more currencies. "I suppose that if we were to make a very large investment in a European country, we might have to finance a great deal of it using their currency." UNITED STATES FINANCIAL POLICY "The fiscal policy in the United States is what makes me afraid." The recent movements of the stock market This period has been... It's nothing. This isn't a dramatic bear market. If you are scared by a market decline, and excited when the stock markets rise... People have feelings. But you need to leave them outside when investing. How to Make Money: You only need to be rich once. You don't...want to do anything risky. (Reporting and editing by Diane Craft, Jon Stempel, Carolina Mandl; Megan Davies, Suzanne McGee)
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Berkshire supports Japanese trading houses and could hold them "forever"
Warren Buffett gave his full support on Saturday to five Japanese trading companies in which his conglomerate is involved. Berkshire Hathaway Has invested. Buffett spoke to Berkshire shareholders at their annual meeting in Omaha, Nebraska. This was 1-1/2 months after Berkshire announced that it had increased its stakes in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo as high as 9,8%. Berkshire had invested $23.5 billion in these companies by the year 2024. Buffett stated, "We won't even consider selling them in the next 50-years." "We were treated very well by these five companies ..... Our main activity was to cheer and clap." Greg Abel is a Berkshire vice-chairman who will succeed Buffett in the role of chief executive. He said that Berkshire would own trading houses "forever" or for at least 50 years. He said that "we're building relationship" and "we really hope to achieve big things with them." Japanese trading houses, also known as "sogo-shosha," trade a wide range of products, materials and foods, often acting as intermediaries and providing logistical support. The real economy is also very important to them, including commodities, shipping and the steel industry. Berkshire started investing in trading houses in 2019 and revealed 5% ownership stakes at Buffett's 90th Birthday the following August. Buffett has said that he prefers not to engage in businesses he doesn't understand and has compared trading houses to his conglomerate.
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Wildfires reduce Berkshire's profits; cash soars $347.7 Billion
Berkshire Hathaway, owned by Warren Buffett, posted a lower operating income in the first three months of this year, impacted by wildfire insurance losses and currency fluctuations. However, its cash holdings grew to an all-time high $347.7 Billion. The operating profit of the Omaha-based conglomerate fell 14%, to $9.64 Billion, or approximately $6,703 for each Class A Share, from $11.22 Billion a year ago. The net income fell 64%, to $4.6 billion or $3.200 per Class A Share, from $12.7 Billion, due to unrealized losses in common stock holdings, including Apple. Berkshire has had difficulty buying things, as evidenced by the increase in cash. For the third quarter in a row, it did not repurchase any of its own shares. It was also a net seller for the 10th consecutive quarter. They bought $3.18 billion of stock and sold $4.68 billion. Berkshire has said very little about the impact of President Donald Trump's tariff policy on results. Berkshire said that it was "unable" to predict the impact of the uncertainty on the company's product costs, supply-chain costs and customer demands. The wildfires that ravaged the Los Angeles area in January caused insurance claims to total $1.1 billion. The overall net insurance income fell by almost half to $1.34 billion. Geico's underwriting profit increased 13% before tax due to lower accident claims and higher premiums. The results also included 713 million in currency losses due to the weakening of the U.S. Dollar, compared to a gain of $597 million a year ago. The results were announced ahead of Berkshire’s annual shareholder meeting, which takes place in Omaha as part of an event that attracts tens and thousands of people. Buffett has been leading Berkshire, a textile company, for over 60 years. He transformed it into a conglomerate whose companies include Geico and the BNSF railway, Berkshire Hathaway Energy as well as Dairy Queen, See's Candies, and Berkshire Hathaway Energy. Berkshire shares outperformed the market in 2025. Many investors view the company as an economic safe haven, especially from potential tariffs. Tariffs have helped BNSF Railroad, which has seen its profit rise 6%. BNSF reported increased volumes of consumer products including imports from the west coast and automobiles, which indicates a higher demand for shipments prior to tariffs being implemented. Berkshire Hathaway Energy did better as well, with a 53% increase in profit through a broad-based gain and fewer losses at the HomeServices unit of real estate brokerage. Berkshire Hathaway's manufacturing, retail and service businesses saw their profits fall by 1%. Berkshire’s car dealerships have benefited from increased sales of both new and used vehicles. Berkshire said that home furnishings retailers and other retailers were struggling with "increased competitiveness, sluggish demands and the impacts of increased economic uncertainty."
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Wolff: Sustainable F1 fuel costs more than expected
Toto Wolff, Mercedes' team chief, says that the switch to 100 percent sustainable fuel in Formula One from next season has proven to be more costly than anticipated. One of the engine makers raised the issue of fuel costs at a recent Formula One Commission meeting, which included team managers and other major stakeholders. Wolff, speaking to reporters at the Miami Grand Prix round six of the year, said that it is expensive because the entire supply chain and the energy contribution must be green. "To achieve that, you'll need to use a very specific set of ingredients which are expensive. It's much more expensive than expected. We need to see if there is anything we can do to reduce the price per litre. Wolff stated that Mercedes' fuel partner Petronas is fully committed to sustainable fuels, but they are also looking at whether a change in regulation could make it more financially viable. Christian Horner, the Red Bull boss, acknowledged that there were many development costs involved but claimed it was not an issue for his team. "Perhaps a new bracket could be introduced in the future." Fuel is one of the biggest performance differences. Fuel companies are very involved in this," he said. Formula One has a goal to become carbon-neutral by 2030. This plan covers the cars and sports operations on race weekends. (Reporting from Alan Baldwin in London and editing by Ed Osmond.)
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Source: OPEC+ will agree to another accelerated increase in oil production for June
A source said that eight OPEC+ nations will meet on Saturday and agree to a new accelerated oil production increase for June, of 411,000 barrels a day. This was shortly before a meeting online of the countries. The eight countries increased their output in May by 411,000 barrels per day more than they had planned. This, combined with the U.S. tariffs on trade, drove oil prices to a record low of $60 a barrel. Sources made the comment just before countries began an online meeting to determine June output after bringing the meeting forward by one day. Four other sources had earlier stated that the accelerated increase was likely to be approved. Oil prices dropped over 1% Friday, as traders prepared for more OPEC+ supplies. Concerns about an economic slowdown due to a trade conflict between the U.S. Brent crude futures closed Friday at $61.29, down 84 cents or 1.4%. This week, it was reported that Saudi Arabian officials, de facto leaders of OPEC+ and allies, had informed industry officials and other officials that they were unwilling to support oil markets by cutting further supplies. Sources have reported that Riyadh is angry because Kazakhstan and Iraq are producing more than their OPEC+ target. Helima Croft, an analyst at RBC Capital Markets, said that "discussions seem to be pointing in the direction of a third three-month rise". Croft added, "Compliance appears to be the main focus. Kazakhstan, Iraq, and Russia continue to miss their compensation goals, although to a lesser degree." OPEC+ (which includes the Organization of the Petroleum Exporting Countries, as well as allies like Russia) is cutting production by more than 5 million bpd. Many of the cuts will remain in place through the end of 2026. The group intends to hold a full-ministerial meeting on 28 May. (Reporting and writing by Alex Lawler; Editing and writing by Barbara Lewis.
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Sources say that OPEC+ is set to increase oil production again in June.
Four sources familiar with the matter said that eight OPEC+ nations will likely agree on Saturday to a further accelerated increase in oil production for June. This is the latest step of a plan designed to undo the most recent layer of cuts made by the group. The eight countries increased their output by 411,000 barrels a day in May. This decision, along with the U.S. tariffs on trade, helped drive oil prices to a 4-year low below $60 per barrel. After moving the meeting from Monday to today, the countries will hold an online discussion to decide on June's output at 1000 GMT. Four sources told Reuters that a similar hike to the one approved in May is likely to be approved by the four countries for June. Oil prices dropped over 1% Friday, as traders prepared for more OPEC+ supplies. Concerns about an economic slowdown due to a trade conflict between the U.S. Brent crude futures closed Friday at $61.29, down 84 cents or 1.4%. This week, it was reported that Saudi Arabian officials, de facto leaders of OPEC+ and allies, had informed industry officials and other officials that they were unwilling to support oil markets by cutting further supplies. Sources have reported that Riyadh is angry because Kazakhstan and Iraq are producing more than their OPEC+ target. Helima Croft, an analyst at RBC Capital Markets, also said that she didn't think a decision had been finalized but "discussions seem to be leaning towards another three-month hike". Croft added, "Compliance appears to be a key focus. Kazakhstan, Iraq, and Russia continue to miss their targets for compensation. OPEC+ (which includes the Organization of the Petroleum Exporting Countries, as well as allies like Russia) is reducing output by more than 5 million bpd. Many of these cuts will remain in effect until the end of the year 2026. The group intends to hold a full-ministerial meeting on the 28th of May. (Reporting and editing by Barbara Lewis, Maha El-Dahan, and Ahmad Ghaddar)
Andy Home: Trump, tariffs, and tin.
The LME Base Metals Complex got a sneak preview of what to expect.
The threat of similar tariffs on copper caused a transatlantic price gap that was unprecedented.
The micro tariff turmoil is now accompanied by macro tariff turmoil, as the markets are frightened at the prospect of a full blown trade war. This week, the London Metal Exchange index of base metals fell 6% as reciprocal tariffs became a reality.
Only one metal was spared the tariff tsunami. Tin continues to perform better than the rest of LME's pack, boosted by its own supply-chain chaos.
Shocks Rock Tin - Supply
LME's three-month tin increased by 25% in the first quarter 2025, surpassing gold's incredible run.
The tin market has been on a roller coaster ride due to a series of supply shocks. After 18 months, the market fell on the news that the giant Man Maw mine in Myanmar was to restart. Then the market rebounded when Alphamin Resources announced they were closing their Bisie mine in Congo due the the escalating violence in the eastern part of the country.
Tin has risen even more after the devastating earthquake in Myanmar that casts new doubts on Man Maw’s return.
Investors are rushing to get in on the action. The long positions of funds have reached record highs.
The LME stock market is slipping and the time-spreads are tightening. This adds to the volatile mix.
The bulls should also note that China has a plentiful supply of tin. Shanghai Futures Exchange has seen a 47% rise in stocks this year, and the 9,872 metric ton stock is at its highest level since September.
COPPER GAP - HOW TO IDENTIFY IT
Since February, when Trump launched a national-security investigation into copper imports, the U.S. has imposed tariffs on the copper trading market.
Arbitrage has been played out between the CME U.S. Customs-cleared Price and the LME Global Price. The market has tried to guess when and how much copper tariffs would be implemented.
The CME's record premium over LME Copper has led to a massive movement of metal into the United States. It remains to be determined how much metal makes it through U.S. Customs before tariffs become effective.
CME prices that were at record highs and the physical market disruption initially revived bullish sentiments. However, LME copper is now below $9,000 per ton as concerns grow over the adverse effects of U.S. tariffs on global manufacturing.
ALUMINIUM PREMIUM ACTION
Tariff trades have been reflected in premiums for regional markets.
Last month, the U.S. Midwest Premium widened to over $900 per ton above the LME Basis Price as the market priced the increase in U.S. Import Tariffs from 10% up to 25%.
The European premiums have dropped sharply in contrast to the U.S., suggesting that physical metal has already been diverted. Analysts were expecting high aluminium prices at the beginning of the year, but the market is now generating mixed signals. Like copper, it has also been affected by reciprocal tariffs.
NICKEL ATTENDS INDONESIA
Nickel spent the first quarter of 2025 stuck in a wide range between $15,000 and $17,000 per ton.
As overproduction in Indonesia floods the refined nickel chain, the price of nickel has fallen.
From 11% in 2024, the amount of Chinese Nickel stored at the LME has increased to over 50%. This metal is a product of Indonesian raw material that was processed in China. Indonesia is now producing its own refined metal which can also be found in LME sheds. Even Indonesian operators feel the pinch of the nickel price, which is so low. However, until Indonesia limits its production growth nickel will remain in oversupply.
The question is whether or not the Indonesian flood will continue to wash down into the Class II lower-grade segment of the Nickel market.
All depends on Indonesian margins.
Heavy Stocks Weigh on Heavy Metal
Talking about high stock prices.
Last month, someone cancelled 120,000 tons LME lead stock. However, there was no response from the market in terms of price or time spreads.
Nobody thinks that the physical metal market is short of this much metal. Lead is experiencing the type of LME warehouse arbitrage which comes with an oversupply and elevated stock levels. These stocks have grown from 21,500 to 331,000 tonnes at the beginning of 2023. Lead's price has held well despite the overhang of inventory, but this could be because lead is still in better condition than zinc.
ZINC MINE REBOUND
Zinc has consistently outperformed the LME group since the beginning of the year, despite the fact that exchange stocks have been falling steadily.
The market seems to be more interested in the zinc raw material narrative than its nuanced refine metal dynamics.
In 2024, the mined zinc production will fall by 2.8% on an annual basis. The raw materials supply chain will tighten to the point where smelter charges are negative in the second part of the year.
In 2025, restarts and new mining are expected to produce a significant recovery.
This new wave of mining supply appears to be gaining momentum. The smelter treatment charge, which had fallen to zero in 2024 due to a lack of mined concentrates, has now risen to $35 per ton.
The demand for zinc was flat last year. With little hope of a recovery within the global construction sector, which is a major use of zinc, a higher output from mining will likely lead to an oversupply on the refined metals market.
These are the opinions of a columnist who writes for.
(source: Reuters)