Investors had assumed in recent years that Warren E. Buffett could eventually retire. But the 94 -year -old billionaire was still surprised by many on Saturday when he announced that he was planning to resign as Berkshire Hathaway’s chief executive after about six decades.
Less amazing is who said that he intended to succeed him as a leader of the $ 1.1 trillion group he created: Gregory E. Abel, the year heir to the obvious.
Who is Greg Abel?
Since 2018, Mr Abel, 62, has been Vice President of Berkshire’s non -insurance companies, businesses operating in 189 including BNSF Railroad, one of the largest nation. Berkshire Hathaway Energy, a giant utility program. Restaurant chains and retailers such as the dairy queen and the Borsheims jewelry chain. Consumers such as Loom Experwear, Brooks run shoes and justin boot. Netjets, the Jet Private Service. And more.
Mr Abel’s enormous responsibilities came after a steady rise in Berkshire ranks. A local of Edmonton, Alberta and an accountant with training, joined the band in 2000, when Mr Buffett bought a share of control over what Midamerican Energy was, where he was president.
Mr Abel was named Berkshire Vice President in 2018, his anointing as a possible successor to Mr Buffett, in which Mr Buffett confirmed in 2021.
In addition to his work experience, Mr. Abel is known for his love of hockey, who played as a child: He is a volunteer coach for his son’s son’s team, where Berkshire Hathaway Energy lives and is based.
Why did he get the nod?
The relatively low Mr Abel has gained praise from Mr Buffett and others in the Berkshire orbit over the years for two basic properties.
The first is his know -how. It helped drive a series of Midamerican acquisitions – renamed Berkshire Hathaway Energy in 2014 – to an important energy producer. Since its elevation in 2018, it has overseen a much broader collection of businesses that have reported more than $ 5 billion in operating profits during the first three months of this year.
Mr Buffett praised his heir obvious as an effective executive he entrusted to make great decisions. By 2023, Mr Buffett told CNBC, Mr Abel “does all the work and get all the bows”. The billionaire added: “It’s a great improvement for me, but don’t tell anyone.”
Mr Abel’s other quality is that it is considered to fit the Berkshire mold. He became a more serious candidate to take over the group’s group in 2011, when David Sokol, his former Midamerican boss, known as Mr Buffett’s head of Fixer, resigned. Berkshire had completed Mr Sokol violated the company’s policies by buying about $ 10 million in Lubrizol, chemical manufacturer, while orchestrating the acquisition of the company.
Mr Abel, however, has been regarded as cut by a similar cloth to Mr Buffett. “Greg will keep culture,” he told shareholders of the annual meeting of the annual meeting of the company 2021 at the company’s annual meeting of the company 2021. The comment immediately put on the succession guess, which Mr Buffett confirmed days later.
Mr Abel has undertaken more public duties in recent years, including a meeting on stage for hours with Mr Buffett at Berkshire’s annual meetings to answer investor questions.
How is Mr. Abel expected to run Berkshire?
Although Mr Buffett won the reputation as one of the most successful stock collectors of all time, the strengths of his successor are more in business. This is partly a reflection of what Berkshire is today: an empire of often discussed businesses that employ more than 392,000 workers together.
Mr Abel is not expected to choose companies entering the Berkshire investment portfolio – the company already has two executives, Todd Combs and Ted Weschler, who were hired by Mr Buffett to help with it. But it will oversee the types of big agreements that the group is perhaps unique in a position to hit, given the $ 347.7 billion in cash. (Mr Buffett called the “Elephant Weapon”.
However, this will present a great challenge. For years, Mr Buffett has not hit such acquisitions. And it has recognized that Berkshire is so big that it is difficult to find a acquisition goal large enough to significantly increase its profits.
