Mr Buffett, 91, faces a slightly more controversial annual meeting than usual despite the fact that Berkshire shares, which are up nearly 8 percent this year, have outperformed the general market, which is down 13 percent. “Historically, Berkshire stocks have outperformed in periods of economic hardship as investors took a ‘flight to quality,'” Cathy Seifert, an analyst at CFRA Research that tracks Berkshire, wrote in a note to clients last week.
Dissident shareholders have tabled a proposal asking Berkshire to overhaul the way it views and details its climate risks, something Mr Buffett has not done. They say Berkshire Hathaway Energy, which operates a number of major utilities, has lagged behind rivals in drawing up plans to cut carbon dioxide emissions. Last year’s climate proposal had the support of much larger shareholders outside Mr Buffett’s circle, including BlackRock, Vanguard and State Street.
In addition, a number of major investors, including the giant California Public Employees Retirement Fund, supported a shareholder proposal to remove Mr. Buffett, who currently serves as both chief executive and chairman of the company’s board of directors, from his chairmanship. That proposal is one that bigger investors have turned to other companies as well, arguing that dividing the roles is better corporate governance.
Mr Buffett opposed the proposals and they failed on Saturday. Because he has a large number of votes, proposals that Mr. Buffett is against are usually rejected.
In his response to the climate proposal on Saturday, he emphasized once again that Berkshire Hathaway Energy is investing heavily in sustainable energy projects. But those behind the proposal said they wanted Berkshire to make climate disclosures for the entire company, not just parts of the conglomerate. “What we’re asking is a composite image,” said Timothy Youmans, an executive at EOS at Federated Hermes in North America, who was a sponsor of the climate proposal.
Peter Eavis reporting contributed.
