Recently Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) announced that Todd Combs, a hedge fund manager based in the tony New York City suburb of Greenwich, Connecticut would be hired to manage a portion of its $100 billion portfolio. Buffett, 80, isn’t stepping down as CEO, but I suspect part of this has to do with the notion of practicing what you preach. Buffett has been a champion of well-managed firms, and everyone knows that a well managed firm should have a reasonable succession plan in place.
For a long time Berkshire did not. In fact, Warren has epitomized the classic case of a CEO/founder refusing to let go and failing to set up a clear plan of succession. The prospect of Buffett suddenly having a fatal heart attack would probably send Berkshire’s stock price plummeting. The same can not be said of say Ken Chenault, the CEO of one of Warren’s big holdings, American Express.So what can we learn from Buffett’s choice of 39-year old Mr. Combs? To read more click this bit.ly/bcdnje