- Warren Buffett is preparing for his inevitable departure from Berkshire Hathaway.
- The investment icon told the shareholders that it “will not be long” before Greg Abel succeeded him as an executive president.
- Puffett Habel praised, wiping the floors for him, and took steps to protect his personal heritage.
Warren Buffett has spent the past 60 years to convert Hathaway from the failed textile factory into a $ 1 trillion company more valuable than Tesla, Wall Mart or Jpmorgan.
the Legendary It took control of Berkshire in 1965 and steadily gained dozens of companies including Geico and See’s Candies, and millions of dollars risk in public companies including Apple and Coca-Cola.
But at the age of 94, Titan Business knows the end of the Puffett era near within reach – a carefully paved the way for leaving it.
Pavite warned his shareholders that the watch is knocking on his official time. He talked about Greg Abel and took the way for his planned back. He also sought to protect his legacy and ensure that his wide wealth was not dispelled as soon as he left.
“Planning for succession is the most important thing in corporate governance for a company led by the iconic CEO,” Lawrence Keningham, Winberg Center Director at Winberg University at Dilayer University, told the author of many books on Buffett and Berkchire, by Buffett and Berkshire Business Author.
The Buffett Contect “provides an ideal and trained model for its lack of how it works well,” adding, adding that “I prepared the method not only for Greg for Warren as CEO,” but also prepared their shareholders to their company who no longer have a controlled shareholder.
Pass the stick
“At the age of 94, he will not take a long time before Greg Abel was replaced as an executive president and will write annual messages,” Pavite said to Berkshire’s shareholders, which makes it clear that he will deliver the reins soon.
The billionaire fisherman reassured the bargain again and repeatedly that the holders of the shares Backward. In his new message, he wrote that in those rare moments when opportunities are everywhere, “Abel clearly showed his ability to act at times as Charlie did,” referring to his late commercial partner, Charlie Monage.
Buffett jokingly said during the annual meeting last year that the shareholders “do not have a very long time to wait” in order to change the administration. “I feel okay, but I know a little about the actuarial tables,” he said.
“The investor mentioned in his last message that he needs to walk cane, perhaps because he” considers the possibility of step asking as an executive president in the near future, “said David Cass, a financial professor at the University of Maryland, said that he is considering the possibility of stepping down as an executive president in the near future.
roadbed
It seems that Pavite wipes the floors before the next captain takes the ship.
“Mountain” may reflect Berkshire of $ 334 billion, “the desire to deliver a relatively clean list to Greg and enable him to” perform the main job of an executive president easily, which is the customization of capital. “
More specifically, he and his investment managers have He sold many small but long investments Including General Motors and Procter & Gamble in recent years.
They have also spent $ 158 billion of stock on a net basis during the past two years, which helped increase the Berkshire Monetary Pack to record levels. Their efforts can leave a lot of dry powder until ABEL spends on stocks or finally obtaining the seizure of the size of the elephant that escapes from Buffett for years.
Pavite and his deputies may retreat from purchases, increase sales, and stop re -purchases because stock assessments were expensive. But they may also see the value of leaving the treasure box until ABEL extracts it and spread it as it wishes.
Protection of his legacy
Buffett last year revealed that when he dies, his share will move by 14 % in Berkshire – whose value is more than $ 150 billion – to confidence of his three children as trustees, and they will have to vote unanimously on how to spend it.
The plan does not protect the money from the taxpayer and allocate it for reasons only, but also aims to thwart active investors who may seek to buy Buffett shares as soon as he leaves and is dismantled on his bloc.
“I consider Berkshire Hathaway somewhat like a painter with regard to the painting, and the difference is unlimited fabric,” Pavite He said in 2016Which confirms his vision that the company will continue for generations.
In fact, Pavite’s efforts to prepare his shareholders for the inevitable, expressing his confidence in Abel and preparing for success, and protecting his personal share at work, and all of them talk to his sincerity to ensure the prosperity of Berkshire after a long time.
