Warren Buffett is stepping aside at Berkshire Hathaway. Here’s what he thinks happens next.
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On Saturday, Warren Buffett shook the world of investment on Saturday: “Time has reached.”
The legend of investment and CEO has long been placed in BRK-B, BRK-A official at the end of this week, plans to hand over the role of CEO of Berkshire to the Vice President of the company, Greg Abel, at the end of the year. ABEL was first recognized as the successor of Pavite in 2021.
At 94 o’clock, Buffett’s statement that he is retracting the duties of the CEO – which the Board of Directors will recommend at a meeting on Sunday – is less shocking than the issue of necessity. Either Pavite or the father’s time was making a call soon; It took the work of the work first.
The preparations for Bavate had left his position in Berkchire Hathaway, which he had held since 1970, for years.
ABEL and Ajit Jain, who were deliver in Berkshire’s deputy heads of Berkshire in 2018. As of 2014, Charlie Monage, who dates back to 2014, was written about these two potential successors of Bavate.
Ajit Jain and Greg Abil are probably installed that they are described as “world -class”, Monger books. “The pioneer in the world” will be the description that I will choose. In some important ways, each of the CEO is better than Buffett.
People see the Chairman of the Berkshire Hathaway Warren Buffett on a screen that speaks at the annual shareholders meeting of the shareholders in Berkchire Hathaway, in Umaha, Nebraska, United States, May 3, 2025. Reuters/Brendan McDested ·Reuters / Reuters
He has 2014 annual messageBuffett was reflected in the fiftieth anniversary of his investment partnership by determining what could be needed to keep Berkshire continuously for 50 others.
“The Berkshire administration is primarily important to customize the capital, in addition to choosing prominent managers and keeping them to lead our operating branches,” Buffett wrote.
“It is clear that the job also requires replacing the CEO of the subsidiary when it is called. These duties require the CEO of Berkshire to be a rational, calm and decisive individual who has a wide understanding of business and good visions of human behavior. It is also important that he knows his limits.”
During a meeting on Saturday, Buffett has repeatedly reduced the fluctuations of this year in the stock market, noting that we have seen more clear sale-whether for the total market and Berkshire shares. Previous 3 % decreased this year. The latter, up to 17 %.
At some point, Pavite said that working on the market this year “nothing really.”
Future executives in Berkshire are likely to deal with worse environments that will test them.
Berkshire Hathaway Vice Chairman checks the flight simulation offered by a Berkshires company, which is the safety of flying while touring the exhibition hall on Friday, May 3, 2024, in Omaha, Nabila. (AP Photo/Josh Funk, File) ·Associated Press
Elsewhere in that message for the year 2014, Buffett has identified the necessary qualities, the challenges to be faced, and avoid the pitfalls for the next CEO of Hathaway.
Here are some prominent points:
“Personality is very important: Berckshire’s CEO” everything “must be for the company, not for itself.”
“He can only earn more money than any possible need for that. But it is important that the ego or gravity do not motivate him to reach wages that match his most compensated peers, even if his accomplishments are much exceeding.
“The CEO behavior has a great impact on managers under the line: If it is clear to them that the interests of shareholders are very important to him, then they, with few exceptions, also adopt this way of thinking.”
“Khalti will need a certain other power: the ability to fight ABCS from business caries, which is arrogance, bureaucracy and contentment.”
“When these corporate cancers turn, even the most powerful companies can stumble. The examples available to prove this point are the Legion, but to maintain friendships, I will only extract cases from the distant past. Executive presidents and directors were not a long time before thinking.”
“If our non -economic values are lost, it will be a lot of the economic value of the Berkashire also collapses.” It will not be a tone at the top “Key to keep a private Berkshire culture.”
Fortunately, the structure that the future executives will need to succeed in its firm place. The exceptional delegation of the authority now in Berkshire is the ideal Promotion for bureaucracy … We do not have a legal office or departments that other companies consider to be a foregone: human relations, public relations, investor relations, strategy, acquisition, and naming that. “
“We have, of course, an active audit function; it does not make sense to be a cursed fool. With an unusual degree, we trust in our managers to manage their operations with a very sense of supervision. After all, they were doing it exactly before we enjoyed their work.
On Friday, Berkshire’s share was closed at a record level.
In one direction, Hathaway Greg Abel will inherit from Berkshire Hathaway Greg from Warren Buffett next year, all that was different from the company that was Buffett in 2015. Castparts 2015 deal.
Its investment portfolio has grown along with the broader market and has become specific through a successful bet on APL (AAPL) – a fact that prompted Pavite to say that the CEO of Apple saturday has made Berkshire shareholders more than ever. But Berkshire’s portfolio is still consistent with what it has been decades ago, a group of companies that can be predicted in a large size, for long periods.
Of course, at work, life, or otherwise, a major change will occur over a decade whether you are looking for it or not.
Pavit said on Saturday that after Abel took over the position of CEO, “I am still hanging out, and I can be useful in a few cases, but the last word is what Greg said, in operations, in spreading capital, whatever it is.”
Anyone who has witnessed the change of leadership as the old president wanders in “advising”, these arrangements tend to fall quickly – you are either inside or outside.
Charlie Monger has now disappeared to attend two shareholders in Berkshire. Donald Trump won presidential elections. Berkshire’s annual profits disappeared from $ 19.8 billion in 2014 to $ 89 billion in 2024. Yanxiz still did not win the World Championship.
Berkshire Board of Directors will meet on Sunday to discuss Buffett’s proposal shown on Saturday. Pavit said he expected to agree to “consensus” on his schedule. More details will appear in the coming months.
The next stage of the history of Berkshire Hathaway is now going on. There was no degree of planning that has removed the guaranteed uncertainty in the coming years, but what is Bavite He thinks It needs to happen after that not a mystery – it was all written.
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