Warren Buffett prepares to leave Berkshire Hathaway

Warren Buffett prepares to leave Berkshire Hathaway 3
Warren Buffett prepares to leave Berkshire Hathaway 3

Billionaire Warren Buffett said in his annual letter to shareholders just released on Saturday, February 22, that Berkshire Hathaway’s two vice presidents, Ajit Jain and Greg Abel, will participate more at the company’s annual meetings.

Ajit Jain is now responsible for overseeing Berkshire’s insurance giant and Greg Abel runs the rest of the group.

`I have received suggestions from shareholders, media and board members that Ajit Jain and Greg Abel – two of our key executive managers – should receive more exposure at the meeting,`

Chairman and CEO of Berkshire Hathaway Warren Buffett.

Warren Buffett will turn 90 years old next August.

`Charlie and I have long been in the ’emergency zone’. That’s not great news for us. But Berkshire shareholders need not worry. The company is 100% prepared for the departure of

Investors are also betting that Ted Weschler and Todd Combs, two Berkshire Hathaway executives who help Buffett pick stocks, could also take on additional roles.

`No one in the world can allocate capital as effectively as Buffett in the future,` said Dev Kantesaria, Founder and portfolio manager at Valley Forge Capital Management.

Berkshire Hathaway is one of the most valuable companies in America, worth more than $560 billion.

The corporation also owns and operates many other companies such as GEICO, Burlington Northern Santa Fe, Dairy Queen, Duracell and Fruit of the Loom.

But Buffett has lagged in the stock market, despite big bets on Apple and a small stake in Amazon.

Berkshire continues to bet on the American consumer, recently adding luxury furniture retailer Restoration Hardware and supermarket chain Kroger to its portfolio.

Tiffany approached Buffett about being acquired, according to the Financial Times.

`Do I find it strange that Berkshire Hathaway can’t find businesses to buy? Not at all. Buffett and Munger think the acquisition price is not good. They are being reasonable,` said Cole Smead, Chairman and portfolio manager.

Buffett explains the difficulties of acquisitions in the letter.

That’s why Berkshire Hathaway is likely to continue using their cash to invest in companies, rather than buying them outright.

Buffett also devoted a part of the letter to corporate governance issues.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *