{"id":2110947,"date":"2023-11-29T12:56:02","date_gmt":"2023-11-29T17:56:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-mungers-death-berkshire-succession-comes-into-focus\/"},"modified":"2023-11-29T12:59:17","modified_gmt":"2023-11-29T17:59:17","slug":"after-mungers-death-berkshire-succession-comes-into-focus","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-mungers-death-berkshire-succession-comes-into-focus\/","title":{"rendered":"Berkshire succession in spotlight after Munger&#8217;s demise"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fafter-mungers-death-berkshire-succession-comes-into-focus%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2110947&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>November 29, \u200b2023 \u2013 3:47 PM UTC<\/strong><\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Berkshire\u2064 Hathaway Inc Vice Chairman Charles\u200d Munger speaks at the Daily Journal annual meeting in Los Angeles, \u2062U.S., February\u200b 15, 2017. REUTERS\/Lucy Nicholson\/File \u2063Photo<\/figcaption><\/figure>\n<p>(Reuters)\u200d \u2013 The\u2064 death of Berkshire Hathaway\u2019s \u200b(BRKa.N) Charlie Munger heralds the end of \u2063an era, leaving Warren Buffett as the conglomerate\u2019s \u2064lone investing legend \u200cand shining the spotlight on managers who have largely operated in their \u200dshadow.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Few companies have been \u2064so\u200c closely associated with their leaders as Berkshire has with Buffett and Munger, who knew each other for\u200d more than six decades, the last 45 years as the \u200dOmaha, Nebraska-based conglomerate\u2019s chairman and vice chairman.<\/p>\n<p>Munger\u2019s death\u2063 on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance \u200band insurance businesses, as the\u2064 93-year-old Buffett\u2019s top advisers and sounding boards.<\/p>\n<p>They became vice\u200d chairmen in 2018, started taking a more\u200c prominent public role\u200d only at\u200c the most recent of Berkshire\u2019s annual \u200bmeetings,\u200c and \u200bwill\u2063 have bigger boots to fill \u2064than \u200dat almost any other company.<\/p>\n<p>Managers have said Abel\u2062 fully embraces Berkshire\u2019s culture,\u200b which \u200bincludes\u200c an\u200b extreme decentralization \u2064that gives business units broad autonomy.<\/p>\n<p>That means big units such as\u2062 the BNSF railroad and Geico car insurer,\u2063 each with tens of thousands of employees, and small units such as Borsheims\u200c jewelry, \u2062with \u200dabout\u200d 142 employees, can run without \u2064interference from Berkshire\u200d headquarters, which employs only about 26 people.<\/p>\n<p>But Abel and Jain \u200dhave\u200b different styles \u2062from Buffett and Munger.<\/p>\n<p>At the \u200d2021 annual meeting, \u2062Jain\u200b was\u2063 asked\u200d how \u200che and \u2064Abel interact\u2062 with each other.<\/p>\n<p>\u201cThere \u2062is no question that the relationship Warren \u2063has with Charlie is unique and it\u2019s not going \u2064to be\u2064 duplicated,\u201d Jain \u2064said. \u201cWe don\u2019t interact with each other as often as Warren\u200c and Charlie do. \u2064But every quarter we will talk to each other about our respective businesses.\u201d<\/p>\n<p>Abel said he and Jain regularly consulted with one another, and in\u2064 particular when \u2063something unusual was happening at one of Berkshire\u2019s businesses.<\/p>\n<p>Investors say they have\u200d faith.<\/p>\n<p>\u201cI can\u2019t imagine investors haven\u2019t thought about what happens \u200bwhen Buffett is\u2063 gone as well,\u201d said Bill Stone, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-plans-to-unveil-advisory-warning-for-americans-doing-business-with-deteriorating-hong-kong\/\" title=\"Biden Plans To Unveil \u2018Advisory\u2019 Warning For Americans Doing Business With \u2018Deteriorating\u2019 Hong Kong\">chief investment officer<\/a> at Glenview Trust. \u201cYou don\u2019t need them to be as good as Buffett\u2064 or Munger to make Berkshire a\u200d good \u2064company and arguably a\u2064 great \u2063company.\u201d<\/p>\n<p>Berkshire did not immediately respond to a request for comment outside business hours.<\/p>\n<h2 class=\"wp-block-heading\">CEO-DESIGNATE<\/h2>\n<p>Berkshire has had a succession plan since \u2064at least\u200b 2006 when Buffett, then 75, told shareholders the company he has run since \u20631965 would be prepared for his departure.<\/p>\n<p>Munger\u200c inadvertently signaled during\u2064 Berkshire\u2019s 2021 annual meeting \u200bthat Abel, a 61-year-old Edmonton, Alberta, native\u2064 who spent a quarter century \u2063at\u2064 what is\u200b now Berkshire Hathaway Energy, was the CEO\u2063 designate.<\/p>\n<p>Jain, 72, would\u2063 retain oversight of insurance operations.<\/p>\n<p>Buffett has praised both executives, calling Abel\u200b \u201ca first-class\u2062 human being\u201d \u200cin \u2064a 2013 video message and referring to Jain as a \u200c\u201csuperstar.\u201d<\/p>\n<p>A lifelong hockey fan, Abel \u200cgraduated \u2063in \u200b1984 from the University of Alberta, worked at PricewaterhouseCoopers and energy firm CalEnergy and joined the company, \u200cthen known \u200das\u200b MidAmerican Energy, in 1992, which Berkshire took \u2064over in 2000.<\/p>\n<p>Abel \u2064became MidAmerican\u2019s chief in \u20642008 and benefited from its ability, unusual in the\u2062 utility industry,\u200c to\u200c retain earnings rather than\u2063 pay dividends. \u2063That freed \u200dhim to make acquisitions, and expand into renewable \u2063energy.<\/p>\n<p>Investors\u2064 will have to wait until Abel takes over to see his\u200d willingness to shed\u200c businesses that are underperforming or have mediocre \u200boutlooks \u2013 his\u200b predecessors liked\u2062 to buy and hold businesses forever \u2013 or whether Berkshire might pay its first dividend since 1967.<\/p>\n<p>Jain, who was born in the Indian state of Odisha,\u2062 has specialized in\u200d pricing for risk, especially large risks such as natural \u2064catastrophes.\u200b He \u2063joined Berkshire in 1986.<\/p>\n<p>Besides the two top\u2062 executives, Berkshire\u2019s plan\u2064 also calls for Buffett\u2019s eldest son Howard Buffett to become \u200bnon-executive chairman, charged mainly with preserving Berkshire\u2019s culture.<\/p>\n<p>Todd Combs\u200c and Ted Weschler, who help Buffett run Berkshire\u2019s $300 billion-plus\u2062 common\u2064 stock portfolio \u2013\u2064 about half\u200d of which is \u2063in \u2062one stock, Apple (AAPL.O) \u2013 appear\u2062 in \u2062line \u2062to \u2063take over all of it.<\/p>\n<p>\u201cBerkshire has talented \u200bpeople there\u2063 that will help with the stock picking,\u201d\u200c said Bill\u200b Smead, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/recession-risk-is-a-coin-flip-over-the-next-year-investment-firm-says\/\" title=\"Investment firm predicts 50\/50 chance of recession in the next year.\">chief \u2064investment officer<\/a> at Smead Capital Management in Phoenix. \u201cBut it will never be the\u2064 same.\u201d<\/p>\n<h2 class=\"wp-block-heading\">LOSS OF\u200b LEGACY<\/h2>\n<p>For shareholders, a \u200dsignature in Berkshire\u2019s \u200cuniverse is its annual meeting, a pilgrimage known as \u200b\u201cWoodstock for Capitalists,\u201d where Buffett \u2064and Munger would answer\u200b more\u2064 than\u2062 five hours of shareholder questions.<\/p>\n<p>It is a weekend of shopping, investor conferences and events that draws tens of \u200cthousands \u200cof people to Omaha in early May, even \u200dthough fans can\u200d watch it streamed on their home computers\u2063 or smartphones.<\/p>\n<p>Many shareholders,  <\/p>\n<h2> How did Opers become a part of Berkshire Hathaway Energy?<\/h2>\n<p><span>  \u2062Opers, and joined MidAmerican Energy, which later became Berkshire Hathaway Energy.<\/p>\n<p>Jain, on the\u2062 other hand, is originally from India and joined \u200dBerkshire in 1986 after working as a consultant at\u200c McKinsey &#038; Company.<\/p>\n<p>Both Abel and Jain have\u200b been instrumental in the success of Berkshire&#8217;s various businesses and have been groomed\u2064 by\u200d Buffett and Munger to take on greater responsibilities.<\/p>\n<p>With Munger&#8217;s passing, \u2064the spotlight now shifts to Abel and Jain as they \u2064step into\u200d larger \u2063roles and become the top advisors to Buffett.<\/p>\n<p>Investors and analysts have expressed confidence in Abel and Jain&#8217;s\u200d abilities to carry on Buffett&#8217;s legacy and continue the success of Berkshire Hathaway.<\/p>\n<p>While they\u2063 may have different styles \u2063and approaches compared to Buffett and Munger, they are respected within\u200b the\u200c company and \u200chave a\u2063 deep understanding of Berkshire&#8217;s decentralized culture.<\/p>\n<p>Although Buffett&#8217;s departure \u200cwill undoubtedly \u200dbe a significant change \u2064for Berkshire, many\u200d believe that the company is well-prepared for the transition and will \u200bcontinue\u2062 to thrive\u2063 under the \u200bleadership of Abel and Jain.<\/p>\n<p>As Berkshire prepares for \u2062the future, the focus \u2063will be on \u200dmaintaining the company&#8217;s strong\u2063 performance \u2062and\u2062 upholding its core values.<\/p>\n<p>While Munger&#8217;s \u200ddeath marks\u200d the end of an era, it also symbolizes the\u200b beginning of a new chapter for Berkshire Hathaway \u2063and its leaders.<\/p>\n<p>The legacy of Buffett and Munger will undoubtedly leave a\u200d lasting impact on the company and \u2063the investing world as a whole, but the future \u200cis now in the hands\u200b of \u2063Abel and Jain.<\/p>\n<p>Only time\u200b will tell how they will continue to shape Berkshire Hathaway\u2062 and the \u200cinvestment \u2063landscape, \u200cbut for now, investors remain optimistic about \u2064the \u200ccompany&#8217;s future prospects.<\/p>\n<p>Disclaimer: \u200cThis article is for informational purposes only and should not\u2062 be considered as financial\u200b advice. The views and opinions expressed in \u2064the article \u200care \u200bthose of the\u2063 author \u2064and do not\u200b necessarily reflect the \u200cviews of\u200b Berkshire Hathaway or\u200b its affiliates.<\/p>\n<\/div>\n<p><\/body><\/html><\/p>\n","protected":false},"excerpt":{"rendered":"<p>November 29, 2023 \u2013 3:47 PM UTC: Berkshire Hathaway Inc Vice Chairman Charles Munger&#8217;s passing marks the end of an era, leaving Warren Buffett as the sole investor for the conglomerate<\/p>\n","protected":false},"author":1911,"featured_media":2110948,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2110947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2110947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2110947"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2110947\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2110948"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2110947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2110947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2110947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}