Feb 282015
 

In Berkshire Hathaway’s 50th Anniversary (under Warren Buffett’s management) letter to shareholders, Charlie Munger stated that either Ajit Jain or Greg Abel would make an outstanding CEO to eventually succeed Warren Buffett.

I was interviewed on CNBC Asia Squawk Box (March 1) on this issue:

http://video.cnbc.com/gallery/?video=3000358209&play=1

I am also quoted in four (4) articles in the Omaha World Herald on a possible successor to Warren Buffett.  In one article:

“But Berkshire’s next CEO will be more than that, Munger said, citing Berkshire insurance chief Ajit Jain and Berkshire Energy CEO Greg Abel as two executives who “are proven performers who would probably be underdescribed as ‘world-class.’ ”

Munger’s listing the two by name raised speculation that Jain and Abel are the most likely people to be named CEO if necessary today. The fact that Matt Rose, executive chairman of BNSF Railway, is not mentioned in the report and that Buffett pointed out the railroad’s problems also brought some attention.

“Buffett’s explicit criticism of BNSF raises the question about its CEO, Matt Rose,” said David Kass, a business professor at the University of Maryland. “It cannot be considered a positive note for Rose’s chances.”

The entire article is available at:

In a second article:
“I think the finalists are Jain and Abel,” said David Kass, a University of Maryland business professor and Berkshire shareholder.
The entire article is available at:
In a third article:

“David Kass, a business professor at the University of Maryland and Berkshire shareholder, said Buffett appears to be attempting to motivate BNSF with his multiple mentions of Union Pacific, a former stock holding of Berkshire with a headquarters about two dozen blocks from Buffett’s office.

“He might be attempting to stimulate the competitive juices at BNSF,” Kass said. “But it does raise the question of how much the service problems were weather-related and how much they were a result of bad managerial decisions.”

 The entire article is available at:
In the fourth article:
David Kass, business professor at the University of Maryland:

“The overall message from Buffett and Munger is that Berkshire is fine and will be just fine without them.”

“I’m sure it is Buffett’s honest belief that he has set up a firewall with $20 billion in cash. When Wall Street’s checks were all bouncing a few years ago, the only banker left was Berkshire.”

The entire article is available at:

http://www.omaha.com/money/refreshing-puzzling-analysts-weigh-in-on-berkshire-hathaway-letter/article_3f178e83-0a76-5d05-ba7d-f72be44c9a76.html

 

 Posted by at 5:30 pm

Sorry, the comment form is closed at this time.