Breakingviews - Buffett’s imprint on Berkshire reaches its limit

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Warren Buffett made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. But even those best-laid plans leave notable holes, writes TheRealLSL:

and the impact of artificial intelligence. The 92-year-old Oracle of Omaha also was asked about what happens after he’s gone. With Ajit Jain overseeing the insurance operations, and Todd Combs and Ted Weschler handling some of the investing portfolio, Buffett made clear again that “absent someOne shareholder raised a concern that without Buffett, and his super-voting stock converting to the common variety when he dies, Berkshire’s strategy could be commandeered by an activist investor.

Buffett acknowledged the arrangement gives Abel and others a “honeymoon” period. He also noted, fairly, that his successors “will get judged based on how well” they do. They are likely to struggle to live up to the CEO’s legacy. He has grown Berkshire so big it’s harder to beat the market. Buffett also gets some of his best returns simply by being Buffett.

, for example, is questionable. It’s also not obvious entrepreneurs will sell their companies so eagerly to a Buffett-less Berkshire. The succession planning has been possible because of Buffett’s iron grip, and not everyone is happy about it. One shareholder, Peter Flaherty, proposed separating the chairman and CEO roles at Berkshire. Flaherty on Saturday started to question whether Bill Gates would be a good custodian given his alleged relationship with convicted sex offender Jeffrey Epstein, before the microphone was silenced.

on charges of criminal trespassing. Berkshire security may be able to shut down such dissent at its own shareholder meeting, but it can’t stifle the doubts about life after Buffett.

 

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