[ad_1]
In conversations with Buffett's shareholders and observers, many believe that the 88-year-old investment legend has built a society and culture that will last long after he leaves.
For starters, he has developed a wide range of talents in Berkshire Hathaway's leadership. In early 2018, Buffett entrusted Ajit Jain with responsibility for all Berkshire Hathaway's insurance activities and Greg Abel for all other operations.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" These displacements were late, "& nbsp;Buffett wrote in the annual letter. "Berkshire is now much better managed than when I oversaw operations alone, Ajit and Greg have rare talents, and Berkshire's blood runs in their veins." "Data-reactid =" 18 ">" These steps have been delayed, "Buffett wrote the annual letter." Berkshire is now much better managed than when I oversaw operations alone. Ajit and Greg have rare talents and Berkshire's blood runs in their veins. "
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[[[[Click here to view the coverage of the Berkshire Hathaway 2019 Shareholders' Meeting.]"data-reactid =" 19 ">[[[[Click here to view the coverage of the Berkshire Hathaway 2019 Shareholders' Meeting.]
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On the investor side, the two young Buffett lieutenants, Todd Combs and Ted Weschler each manage $ 13 billion of Berkshire's massive $ 173 billion stock portfolio and have & nbsp;"total discretion"& nbsp; on investment decisions. "data-reactid =" 20 "> On the investment side, Buffett's two young lieutenants, Todd Combs and Ted Weschler, each manage $ 13 billion of Berkshire's massive $ 173 billion stock portfolio and have a "total discretion" in terms of investment decisions.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Lawrence Cunningham, the author of & nbsp;"Berkshire Beyond Buffett"& nbsp; is confident about the future of the investment and insurance conglomerate thanks to the talent of Berkshire and its subsidiaries. "data-reactid =" 21 "> Lawrence Cunningham, author of" Berkshire Beyond Buffett ", is confident for the future of the investment and insurance conglomerate because of the talent of Berkshire and its affiliates.
"It's a group of incredibly talented people." Everyone thinks Warren is a one-man show in Berkshire, but this book shows that he's trained and nurtured hundreds of extremely talented people, "he said. Cunningham told Andy Serwer at a round table. The US-China Yahoo Finance Forum on Friday.
Cunningham added that when he talks to Abel, he often thinks that he is himself speaking to Buffett.
Berkshire Hathaway Energy's chief executive, Gregory Abel, in the center, listens to President Barack Obama speak at a meeting with business leaders at the White House in Washington on Monday, Oct. 19. 2015. (AP Photo / Pablo Martinez Monsivais)
A Buffett investment is a vote of confidence, especially in times of financial stress, when businesses need a lifeline. Although the capital may be critical, the name Buffett is widely recognized.
"It's obviously the only thing you lose, to tell the truth, when Charlie and Warren are not there, that's what kind of weight in the market," said analyst D & # 39; UBS, Brian Meredith, at the forum.
Meredith, however, predicted that Buffett would train the young investment advisors in this role.
"They develop all these relationships and Warren is very smart, he knows how to guide people, and he's doing it right now to put them in this situation, for example in a financial crisis or whatever, they know. a Wall Street investment banker knows, "Ah, I can call Todd, or I'll call Ted, or I can call Ajit," is not it? Boom, first call. "
Another key attribute of Buffett is the ability to quickly reach an agreement.
"Also, I'm sure it's driving them to have the ability to turn this transaction into 24 hours," said Meredith. "It's another very special feature of Warren Buffett and Berkshire Hathaway, when a banker comes in a difficult situation, and he needs to find an agreement or obtain capital in 24 hours. It's not easy, but Warren can do it very quickly. "
During the forum, stock investor Tom Russo, managing member of Gardner Russo & Gardner, also spoke about Buffett's commitment to preserving culture when Berkshire acquired a business. This approach to investing should continue even without Buffett.
Ajit Jain, Head of Reinsurance Division Berkshire Hathaway, left, speaks with Bill Gates, President and Founder of Microsoft Corp. and director of Berkshire Hathaway Inc., while they play a bridge on the sidelines of the Berkshire Hathaway shareholders meeting in Omaha, Nebraska, USA, on Sunday, May 4, 2014. (Daniel Acker / Bloomberg via Getty Images)
"Everyone knows that you can sell a business to private equity, but the contract that private equity has concluded with its investors is that they want to get their money back over a relatively short and short period of time," he said. said Russo on a forum board. "If someone wants to preserve the culture, quality and character of the company for which he built his life, there is actually only one place where they can sell this business. "
This approach, Russo explained, allows Buffett to buy better companies at lower prices, because "big companies do not want to sell to a private equity firm that will quickly be responsible for destroying what has made it wonderful. "
"With this untouched feature, coupled with two new vice presidents, Greg and Ajit, both of whom are excellent, the world's best in these fields, as well as these two investors, Todd and Ted, brilliant, I think that's the best. the future is pretty rosy. "
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Julia La Roche is a finance reporter at Yahoo Finance. To follow her Twitter."data-reactid =" 78 ">Julia La Roche is a finance reporter at Yahoo Finance. To follow her Twitter.
[ad_2]
Source link