Berkshire trades higher as Buffett’s successor Abel gets positive grades at meeting, gains jump

Berkshire Hathaway Shares rose on Monday after a strong performance by CEO Greg Abel over the weekend as he presided over the annual meeting for the first time, and a jump in the conglomerate’s earnings.

The conglomerate’s Class B shares gained 0.7%, following a favorable reception for Warren Buffett’s successor at Berkshire Hathaway’s rally in Omaha, Nebraska, on Saturday. Many in the investor community have acknowledged the loss of Buffett’s signature insight and storytelling, but have been reassured by Abel’s strong showing of Berkshire’s growing business, and his vision for the conglomerate’s future direction.

“Greg Abel performed well in his first Annual Meeting as CEO, in our view, demonstrating a deep understanding of all of BRK’s major businesses and plans to drive efficiencies,” wrote Brian Meredith of UBS in a Sunday paper.

Berkshire Hathaway’s first quarter report on Saturday morning showed a strong jump in corporate operating income of 18% over the previous year. Those gains were largely driven by insurance underwriting, which rose 28.5% to nearly $1.7 billion. It also showed the conglomerate sitting close to $400 billion.

Another key topic Abel covered in the morning and afternoon sessions on Saturday was artificial intelligence, a topic shareholders were eager to hear more about ahead of the event. The CEO clarified that Berkshire won’t be doing “AI for AI’s sake,” a stance that is a departure from other corporate executives rushing to integrate the technology. At one point this morning, Abel asked a question from an in-depth version of Buffett, then turned it into a discussion about cybersecurity risks surrounding AI.

The CEO was also joined during the event by other members of his leadership team, including Ajit Jain, vice chairman of insurance operations; Adam Johnson, president of Berkshire’s consumer products, service and retail businesses; and Katie Farmer, CEO of BNSF Railway. Abel accompanied shareholders in efforts to develop his railroad and insurance businesses, and the inclusion of other Berkshire executives also reassured investors.

Abel also added that he does not expect Berkshire to ever break up or liquidate its subsidiaries.

“We’re a conglomerate but we’re a working conglomerate,” Abel said. “We don’t have layers of management.”

One of the highlights of the event included the words of chairman Buffett to the audience. At the start of the meeting, Abel commemorated Buffett’s long tenure at Berkshire by raising a jersey from the rafters of the CHI Health Center, where the event is held annually.

During part of the event, Buffett in an exclusive interview with CNBC’s Becky Quick said the current investment environment is “not good.”

Read all the highlights from the meeting here.

— CNBC’s Alex Harring, Yun Li and Christina Cheddar Berk contributed to this report.