Warren Buffett’s successor at Berkshire Hathaway, Greg Abel, is seen as the right person to lead the conglomerate in the future. While it is acknowledged that Abel may not have the same level of public appeal as Buffett, he is committed to running the company in a conservative manner that prioritizes financial strength and protection. Board member Ron Olson expressed confidence in Abel’s ability to maintain the principles that guided Buffett, such as allowing Berkshire’s companies to largely run themselves.
Despite a public legal battle last year with the Haslam family over the acquisition of the Pilot truck stop chain, Olson believes that business owners will still be willing to sell their companies to Berkshire once Abel takes over. The positive and respectful relationships Berkshire has with its subsidiaries can be seen on display at the company’s annual shareholders meeting. Olson, who worked closely with Abel during the legal dispute, praised Abel’s preparation, strategic thinking, and decisiveness, adding to his confidence in the successor chosen by the board.
Abel, who typically maintains a low profile and doesn’t often give interviews, will be answering questions alongside Buffett at the shareholders meeting. He has been overseeing Berkshire’s non-insurance businesses for several years and is known for his ability to dissect a business’s balance sheet and listen effectively. While Munger’s absence will be keenly felt at the meeting, Cunningham, a Professor who has written extensively about Berkshire, believes that the company will endure despite the loss of Munger. The board acknowledges that there is no one who can replace Buffett and Munger, but is confident in the organization that they have built.
With Berkshire holding over $167 billion in cash, there is ample resources available for potential deals. While the shareholder base at Berkshire may evolve to include more index and activist investors after Buffett’s passing, the board has not ruled out the possibility of paying dividends in the future if there is no other good use for the excess cash. The company has been preparing for succession for decades, and Olson believes that the organization built by Buffett and Munger will continue to thrive under Abel and Jain.
Overall, Berkshire Hathaway is preparing for a future without Warren Buffett at the helm, with Greg Abel poised to take over as the successor. Despite the absence of Buffett and Munger, the board remains confident in Abel’s ability to lead the company and maintain its financial strength. As Berkshire navigates succession and potential changes in its shareholder base, the organization is focused on ensuring that it continues to thrive and uphold the principles that have guided it for decades.
