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Gabriel Tham

Tag Team Member at Kenichi Tag Team

04 Dec 2019

Stocks

Will Berkshire Hathaway lose its edge without Warren Buffett?

If Warren Buffett dies, do you think Berkshire Hathaway is still worth investing in? Or rather invest in S&P500 or US indexes?

Discussion (13)

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Bjorn Ng

04 Dec 2019

Business Analyst at 10x Capital

I think that Buffett knows this, and he has groomed his successors to be well established and knowledgeable to take over him for sure. Take for instance Apple. When Steve Jobs passed on, everyone (including myself) though that was it. But look at Apple now, breaking through higher highs.

To summarize, I guess stocks are different from football managers, just like how Manchester United lost its edge after Sir Alex Ferguson left. I am a Man Utd fan and it's super disappointing since then. Hahahah

Png Cheng Xi Damien

04 Dec 2019

Happy Life Seeker at Home

He has mentioned several times that they have shortlisted a few successors, and they all passed his "test". So I guess that if you trust him, you'd trust his judgement (as per all his acquired companies) too.

While he hasn't revealed his succession plan yet, he did discuss management changes in his 2018 letter: http://www.berkshirehathaway.com/letters/2018lt...
Ajit Jain was moved to the head of Berkshire’s “insurance activities,” including Geico and related businesses, and Greg Abel had been “given authority over all other operations.” This means that succession is already on his mind.

He probably is not looking at Berkshire losing its edge too. It's also worth noting this in the 2018 letter:
“Berkshire is now far better managed than when I alone was supervising operations,” Buffett wrote. “Ajit and Greg have rare talents, and Berkshire blood flows through their veins.”

Kelvin Seetoh

03 Dec 2019

Founder at Kelvestor.com

If you looked at the recent stock purchases by Berkshire Hathaway, it was done by his successors. Apple, Red Hat (although sold), and now Restoration Hardware.

If you imagined Disney, actually, there is a secret formula behind all their movies that they've created.

See this: https://medium.com/@teecycletim/the-secret-to-d...

And look at how Buffett invests, he has been very consistent. While certain principles are adhered to, I also thought that the future Berkshire Hathway has to be slightly different from the past one.

Don't look at the people in-charge, look at the book value per share. If it continues to grow under the management of his successors, I think things may change but the growth in book value per share continues.

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The foundation has already been laid. The next generation managers have been groomed and as long as ...

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