David Kass, a finance professor at the University of Maryland, has long attended Berkshire Hathaway’s annual shareholder meeting in Omaha, Neb.—an event so famous it has earned the nickname “Woodstock of Capitalism.” In years past, Kass saw lines form around the block at 6 a.m., and overflow rooms and packed exhibit halls.
This year’s gathering, last weekend’s first to be led by new Berkshire CEO Greg Abel, felt very different. “The attendance was very low,” Kass told the Observer.
Official figures have not been released, but early estimates suggest the attendance was 30 percent lower than the usual crowd of 40,000. This decline has caused concern for local businesses that usually benefit from the economic development of this event.
For more than 60 years, Buffett’s fans have traveled to Omaha every first weekend in May. What began as an opportunity to hear Buffett’s investment insights has turned into a full-scale spectacle, complete with shopping, picnics and even a 5k run. The 2024 rally generated more than $21 million in tourism revenue, and last year’s event filled 95 percent of Omaha’s hotel rooms over two days. Only the College World Series, which takes place every June in Omaha, brings a significant economic impact to the city.
Buffett’s deep ties to Omaha, where he grew up and still lives, have long been part of the draw. Guests stop by his favorite local spots, including Gorat’s Steakhouse, to order his takeout: a rare T-bone steak with two sides of hash browns and a cherry Coke. The restaurant is often so busy that it hires extra staff, and a weekend sometimes brings in one to two months’ worth of income.
However, this year, business in Gorat has decreased. The drop in patron attendance was “reflected in our guest count,” Ashley Blodgett, the restaurant’s general manager, told the Observer. The slowdown was not surprising: in February, booking calls were lower than usual.
Events like the Berkshire meet and the College World Series are “what we look forward to, and sometimes it can carry us through the year,” Blodgett said. In an effort to ease some of the traffic, Gorat reached out to guests who had not been able to reserve tables in advance to let them know that places were now open. “It was definitely a success for us,” Blodgett said. “It wasn’t as big as in previous years.”
The shareholders’ meeting itself also had a different tone. Buffett, who has been away from the event, handed over the reins to Abel earlier this year after stepping down following a decade-long run.
Although Buffett has long been the head of the event, he passed the reins this year to Abel, who took over Berkshire earlier this year after Buffett, 95, stepped down following a six-decade reign. While Abel led the Q&A sessions well, some attendees said they missed Buffett’s trademark humor and human charm, especially the energy he shared with his late colleague, Charlie Munger.
“People would go there to learn about Berkshire and have fun, honestly,” Kass said. While he expects long-time attendees to keep coming back, he believes new participants may lose interest. “For the shareholders who just passed, I can predict a decline in the coming years.”
Foreign visitors were another notable absence. Attendees said the crowd felt more American than usual, a change that was evident across Omaha businesses. At Gorat’s, Blodgett reported a “significant” drop in visitor groups from countries such as China, Brazil and Germany, suggesting the conference may be losing some of its appeal as a global tourist attraction besides Buffett.
Other factors may be at play, including rising airfares and policies from the Trump administration that have made international travel more difficult. “I wonder with the whole political climate, whether that has had an effect on people coming to America,” Blodgett said.
However, not all businesses felt the setback. The Omaha Marriott Downtown in the Capitol District, adjacent to the CHI Health Center where the meeting was held, was fully booked. “It couldn’t have been too busy for us,” said general manager Carlo Vermeeren. While other businesses further afield may have seen a decline, his hotel remained. “We’re not worried about it.”
However, not all businesses felt the setback. The Omaha Marriott Downtown in the Capitol District, adjacent to the CHI Health Center where the meeting was held, was fully booked. “It couldn’t have been too busy for us,” Carlo Vermeeren, the hotel’s general manager, told the Observer. While other businesses further afield may have seen a decline, his hotel remained. “We are not worried about it,” said Vermeeren.
The large crowds that now describe the Berkshire meeting are actually a recent phenomenon, according to Ernie Goss, an economics professor at Creighton University who has lived in Omaha for nearly 30 years. “When I first came to Omaha, it wasn’t like that,” he told the Observer. The first meeting in 1965 drew few people.
Even if attendance continues to decline, Omaha will still benefit from more media coverage of the event, including outlets like CNBC, Goss said. The only real concern, he added, would be if the meeting could be moved from Omaha, a city closely associated with Buffett and Berkshire Hathaway. “I think it will continue, and his legacy will live on in Omaha.”
