Can Berkshire Hathaway Still Be Great Without Warren Buffett?
Summary
- Warren Buffett will step down as CEO of Berkshire Hathaway at the end of the year, continuing as Board Chair and coming to his office every day.
- Buffett has prepared well for his departure, has a successor well vetted, and good portfolio actions, leaving Berkshire well positioned to avoid trouble with a market downturn.
- Berkshire's core businesses should continue to do well with low risk, but the real question is whether Berkshire can still be "great" without Buffett. In one area it probably cannot.
- Buffett is an investment giant, able to make huge decisions to buy or sell no one else could make. He attributes Berkshire's success to just eight or nine lifetime decisions.
- The looming question of what to do with $350 billion in cash would probably best be served by huge buybacks at a price accretive to shareholder value.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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