OMAHA, Neb. (AP) — As Warren Buffett’s successor, Greg Abel, prepares to take the reins at Berkshire Hathaway, the conglomerate’s board remains confident in his ability to lead the company into the future. At a conference ahead of the annual shareholders meeting, longtime board member Ron Olson expressed his belief that Abel understands and will uphold the fundamental principles that guided Buffett.
Abel, a Canadian utility executive, has been overseeing Berkshire’s non-insurance businesses for several years and is seen as a strategic thinker with strong judgement. Despite not seeking the limelight like Buffett, Olson is confident that Abel will run the company in a conservative manner that preserves its financial strength.
The succession plan comes at a time when Berkshire is sitting on over $167 billion in cash, giving it ample resources to pursue deals. Olson reassured business owners considering selling to Berkshire that the company’s positive relationships with its subsidiaries are on display, showcasing its respectful approach to acquisitions.
While Abel may not be as entertaining as Buffett and his longtime partner Charlie Munger, who passed away last fall, Olson believes that Berkshire will endure the loss. The board acknowledges that there is no replacing Buffett and Munger, but remains optimistic about the company’s future under Abel’s leadership.
As Berkshire faces pressure from evolving shareholder dynamics, including more index and activist investors, the possibility of paying a dividend in the future has not been ruled out. However, with Buffett still at the helm, the board is focused on maintaining the company’s current financial strategy.