Greg Abel will take the position of CEO of Berkshire at the end of 2025, but he will not be the one who will make decisions concerning his shareholder of 275 billion dollars.
Warren Buffett withdrew after managing the company for 60 years, and although it remains president, daily leadership is changing.
Greg, who is currently in charge of the company's non-assurance operations, will direct everything else, including acquisitions and overall capital allowance, but not picking actions. This responsibility will not land on his office, and this decision is already raising questions on the basis of the massive shareholders of Berkshire.
David Kass, a shareholder and professor of Berkshire at the University of Maryland, said“As CEO, Greg's main role will be to allocate capital. He will decide on the acquisition of whole companies, but I do not think he will choose actions.” Kass had previously organized lunches from private students with Warren, so he doesn't only talk about his ass.
Weschler and Combs take control of the stock wallet
Instead of Greg, this part of the Berkshire machine will probably remain with Todd Combs and Ted Weschler. They both managed to quietly manage about $ 15 billion each of the portfolio for years.
The exact yields have not been disclosed recently, but Warren equaled their salary to performance, in particular 10% of the surplus compared to the three -year -old rolling of the S&P 500. They have not crushed the market in recent years, but they have done enough to stay in the game … and they have history.
Combs is also CEO of Geico, the largest piece in the Berkshire insurance division. It is not only a spread of spreadsheet. He has his hands deeply in the main companies of the company. Weschler, meanwhile, joined Berkshire in 2012 after losing millions to win two charity lunches with Warren. This allowed him to manage money inside the Empire. He had previously launched Peninsula Capital Advisors in 1999 and delivered a total return of 1236% before closing it in 2011. It is not a media threw. These are real numbers.
Weschler has also transformed his personal retirement account of $ 70,000 into $ 260 million in less than 30 years. It's not just luck. But even with this record, a financial time analysis Asked him and combits underperforming Warren and the market recently.
So yes, they are not legends, but they are always the most likely to manage Berkshire's actions after Warren's departure. Catherine Seifert, analyst at CFRA, said she expects Berkshire to introduce an investment role to manage her portfolio.
“Our Greg's point of view is someone with solid operational training, but not investment experience or expertise to replace a renowned investor like Warren Buffett,” said Seifert. “We believe that the lack of clarity on this issue could weigh on actions.” She also launched Weschler like the one who could potentially fill this work of the IOC.
Warren said: “The decision to keep each share is an economic decision because I think Berkshire's prospects will be better under the direction of Greg than mine.” His release also follows the death of Charlie Munger, his trading partner, who died in 2023.
Earlier this year, Warren told shareholders that he used a cane and admitted that it would not be long “before Greg wrote the annual business letter.
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