Berkshire Hathaway’s Board Confident in Greg Abel as Successor to Warren Buffett
OMAHA, Neb. (AP) — As Warren Buffett’s successor, Greg Abel may not be able to match the legendary investor, but Berkshire Hathaway’s board remains confident that he is the right person to lead the conglomerate into the future.
At a conference held two days before the company’s annual shareholders meeting, longtime Berkshire board member Ron Olson reassured investors that Abel understands the fundamental principles that guided Buffett. Olson emphasized that Abel will continue to run Berkshire in a conservative manner to protect the company’s financial strength.
While Abel may not attract the same level of media attention as Buffett, Olson expressed his belief that Abel will manage the company’s subsidiaries with the same level of care and dedication.
Despite a public legal battle with the Haslam family last year over the acquisition of the Pilot truck stop chain, Olson remains optimistic that business owners will still be willing to sell their companies to Berkshire under Abel’s leadership.
With Berkshire sitting on over $167 billion in cash, Olson highlighted the company’s ample resources for future deals. Abel, who has been overseeing Berkshire’s non-insurance businesses for several years, will be answering questions alongside Buffett at the shareholders meeting.
While Abel may not be as entertaining as Buffett and his longtime partner Charlie Munger, Olson praised Abel’s analytical skills and ability to listen to others.
As Berkshire prepares for a future without Buffett and Munger, the board acknowledges that there is no replacing the expertise and friendship the two men provided. However, they remain confident that the organization they built will endure under Abel’s leadership.
As Berkshire faces pressure from evolving shareholder demographics, including more index and activist investors, the board has not ruled out the possibility of paying a dividend in the future. However, with Buffett still at the helm, the board has not seriously considered implementing one at this time.