Squawk Pod: In Omaha: Berkshire Hathaway’s 2025 meeting with Brooks & See’s - 05/02/25 | Audio Only

Berkshire Hathaway Annual Shareholder Meeting 2025: SquawkPod Report Special

Key Concepts:

• Berkshire Hathaway Annual Shareholder Meeting
• Shareholder engagement and interests
• Portfolio company performance and strategies (Brooks Running, See's Candies)
• Tariff impact on manufacturing and supply chains
• Consumer behavior and market trends
• Commodity price volatility (Cocoa)
• Brand growth and international expansion
• Charitable initiatives

I. Introduction: The "Woodstock for Capitalists"

• The 52nd annual Berkshire Hathaway shareholder meeting in Omaha, Nebraska.
• Record-breaking demand: 138,000 ticket requests received by mail, plus 6,000 tickets sold.
• Tickets are sold for $5 to prevent resale.
• Chi Health Center capacity: 40,000.
• High anticipation due to Warren Buffett's lack of public appearances since the last meeting.
• Shareholders are interested in tariffs, Berkshire's cash hoard, market outlook, and potential dividends.

II. The Berkshire Hathaway Experience: A Festival of Capitalism

• The event is described as a "festival of capitalism" with various Berkshire Hathaway subsidiaries showcasing their products.
• See's Candies: Bringing 24,000 pounds of candy, expected to sell out.
• Dairy Queen: Offering dilly bars and orange sickles (24,000 frozen treats).
• Coca-Cola: Diet Coke and Cherry Coke are popular.
• Squishmallows: A large exhibit with a "pit of Squishmallows."
• Commemorative Book: A book celebrating 60 years of Berkshire Hathaway, with 20 copies signed by Warren Buffett (10 already sold, raising $300,000 for charity).
• Other brands present: Brooks Running, Justin Boots, Fruit of the Loom, Forest River (RVs), Clayton Homes, and Geico.
• Estimated attendance: 30,000-40,000.
• Shareholder tickets offer discounts at Nebraska Furniture Mart.

III. Interview with Dan Sheridan, CEO of Brooks Running

• Brooks Running has been a Berkshire Hathaway subsidiary since 2011.
• Strong Q1 Performance: 15% year-over-year global revenue growth, leading performance run brand for eight consecutive years in North America (up 13%), 38% growth in Canada.
• Growth is attributed to increased participation in health and wellness, boosted by the pandemic.
• Tariff Impact:
  • Most products are manufactured in Vietnam and Indonesia, already subject to 20% tariffs.
  • The additional 10% tariff is a challenge, but Brooks is mitigating it through a full value chain approach.
  • Working with suppliers to optimize costs.
  • Trying to avoid penalizing consumers with price increases.
  • Uncertainty about future tariff changes is a major concern.
• Manufacturing Location:
  • Moving manufacturing out of Southeast Asia is difficult due to the established craftsmanship and supply chain.
  • Domestic manufacturing and automation are long-term goals (5-10 year process).
• International Growth (China):
  • Sales in China are up almost 200% in Q1, driven by increased participation in running (marathon growth).
  • Trade war uncertainty is a concern, but Brooks believes it can compete and win based on participation growth.
• Product Focus:
  • Brooks prioritizes product quality and biomechanics.
  • Runner loyalty is high once they find a shoe that works for them.
• Special Edition Sneaker: Brooks releases a special Berkshire Hathaway limited edition sneaker every year. This year's design is neutral, unlike previous years with sketches of Warren Buffett and Charlie Munger.

IV. Interview with Pat Egan, CEO of See's Candies

• See's Candies is a Berkshire Hathaway portfolio company.
• Consumer Trends:
  • Consumers are feeling economic pressures.
  • See's Candies gets direct feedback from its 250 year-round shops and licensee partners.
  • Valentine's and Easter sales were strong, but growth has slowed recently.
  • Consumers seek "joy," "pleasure," and the "See's experience."
• Strategies for Slowdowns:
  • Close monitoring of consumer demand to adjust production levels.
  • Focus on marketing and innovation (new boxes, campaigns like Lolly Palooza).
  • Emphasis on customer service in stores.
• Camp Theme: The camp theme is from Berkshire Hathaway and See's Candies is promoting toasted marshmallow scotch mellows. They also had a collaboration with Kylie Jenner.
• Commodity Prices (Cocoa):
  • Cocoa prices have been highly volatile, swinging about $1,000 per metric ton per month.
  • Prices have tripled compared to historical levels (from $2,000-$2,500 to $7,500 currently, after peaking at $12,000).
  • See's Candies manages this through forward market buying.

V. Conclusion: More Coverage to Come

• The SquawkPod Report will continue its coverage of the Berkshire Hathaway annual meeting.
• Upcoming content includes the meeting itself, classic episodes remembering Charlie Munger, and more.
• Viewers can find video clips, transcripts, and information on CNBC's Buffett archive.
• SquawkPod is a daily podcast featuring highlights from Squawkbox and extra content.