"There are very few CEOs who want to make their successor’s job easy," says Berkshire director Chris Davis, "that feel a sense of duty to their successor nearly as much as Warren and Charlie have."
Agreed! I’ve been really impressed with Greg Abel in what we’ve seen from him so far. (And the confidence Warren and Charlie have had in him counts for a lot, too.)
Neither Warren nor Charlie are know for making decisions they haven’t thoroughly thought through. That is an asset, part of Berkshire’s culture, that appears nowhere in the balance sheet!
Kevin, you probably heard Charlie’s response a few years ago, when someone asked what made Berkshire special. He replied: We are good at error removal—and we have plenty of errors to remove! I think that captures well Berkshire’s corporate culture. A rare culture!
That's a great way to put it. Berkshire is all about the relentless removal of errors. Not necessarily being perfect right off the bat, but in identifying and rectifying mistakes quickly.
Warren & Charlie did a great job building a successful culture at Berkshire. I am certain their values & principles will be continued by the current executives. They learned from great teachers.
I'm sticking with BRK, but I'm concerned about the eventual influence of outside forces. Such as short term owners who are looking to make a quick buck by calling for a breakup or spinoff. Or how about some tax happy politician calling for a breakup because BRK is "too big" to their liking. Warren's presence was a shield that kept people like that at bay. Things could get bumpy after he's gone, through no fault of Greg Abel.
I’m generally optimistic about Berkshire in the post-Buffett era, but I agree regarding the pressures that will be on Abel once Warren isn’t there anymore. And, especially, when the Buffett-owned Class A shares are converted and given away by the foundation. Who knows what the shareholder votes will look like after that happens?
Great post but a couple of thoughts. Firstly, Warren Buffett ain't gone: he will be Chairman of the Board and per Becky Quick will come to work each day, just as before. In a phrase, "It ain't over 'til its over."
Secondly, some enterprises last for centuries because they simply work.
They follow Charlie's Fundamental Algorithm: Repeat What Works!
Examples would be our Founding Fathers and the US Constitution, the Abrahamic religions, capitalism (nota bene, communism died in less than a century, albeit very slowly), Western academia, evidence-based science and, I would submit, Berkshire Hathaway!
I think Berkshire could definitely end up on that list of enterprises that last for centuries. We are lucky to be around at the time when it was being built. There might not be another like it for a long time!
I think we will be pleasantly surprised owners, post Warren!
Agreed! I’ve been really impressed with Greg Abel in what we’ve seen from him so far. (And the confidence Warren and Charlie have had in him counts for a lot, too.)
Neither Warren nor Charlie are know for making decisions they haven’t thoroughly thought through. That is an asset, part of Berkshire’s culture, that appears nowhere in the balance sheet!
Excellent point!
Kevin, you probably heard Charlie’s response a few years ago, when someone asked what made Berkshire special. He replied: We are good at error removal—and we have plenty of errors to remove! I think that captures well Berkshire’s corporate culture. A rare culture!
That's a great way to put it. Berkshire is all about the relentless removal of errors. Not necessarily being perfect right off the bat, but in identifying and rectifying mistakes quickly.
Berkshire is a modern Ben Franklin—always seeking to improve! Charlie was a great admirer of Franklin.
Warren & Charlie did a great job building a successful culture at Berkshire. I am certain their values & principles will be continued by the current executives. They learned from great teachers.
Greg Abel definitely seems to “get it” in terms of Berkshire’s unique culture.
I'm sticking with BRK, but I'm concerned about the eventual influence of outside forces. Such as short term owners who are looking to make a quick buck by calling for a breakup or spinoff. Or how about some tax happy politician calling for a breakup because BRK is "too big" to their liking. Warren's presence was a shield that kept people like that at bay. Things could get bumpy after he's gone, through no fault of Greg Abel.
I’m generally optimistic about Berkshire in the post-Buffett era, but I agree regarding the pressures that will be on Abel once Warren isn’t there anymore. And, especially, when the Buffett-owned Class A shares are converted and given away by the foundation. Who knows what the shareholder votes will look like after that happens?
Great post but a couple of thoughts. Firstly, Warren Buffett ain't gone: he will be Chairman of the Board and per Becky Quick will come to work each day, just as before. In a phrase, "It ain't over 'til its over."
Secondly, some enterprises last for centuries because they simply work.
They follow Charlie's Fundamental Algorithm: Repeat What Works!
Examples would be our Founding Fathers and the US Constitution, the Abrahamic religions, capitalism (nota bene, communism died in less than a century, albeit very slowly), Western academia, evidence-based science and, I would submit, Berkshire Hathaway!
I think Berkshire could definitely end up on that list of enterprises that last for centuries. We are lucky to be around at the time when it was being built. There might not be another like it for a long time!