⚈ In 1970. The 100 -dollar investment is now over $ 300,000
⚈ Greg Abel takes over as CEO by inherit $ 347.7 billion in cash reserve
When Warren Buffett resigns as the CEO of Berkshire Hathaway (NYSE: BRK.A), his term of office, which covers more than five decades, is a huge amount of shareholders.
Buffett took control of Berkshire Hathaway in 1970 and has since become the longest CEO among all S&P 500 companies. Significantly, he has run the company for as long as the average current CEO of the current S&P 500 has been alive.
Under the leadership of Buffett, in 1970, Berkshire's initial investment in Berkshire would now be over $ 330,000, due to astonishing profits over 330,000%.
The company's shares continue trading at a record height, closing the last trading session at $ 539.80, which is almost 2%. The stock has reached almost 20%a year, outperforming many peers, despite the recent market voltage caused by market volatility.
Berkshire Hathaway Q1 Income
But the company did it anyway report The reduction in the first quarter profits by 14.1%, falling from $ 11.22 billion to $ 9.64 billion a year earlier.
The decline was mainly due to the results of the weaker insurance results. However, Berkshire finished the quarter with a record $ 347.7 billion in cash, compared to $ 334.2 billion in the previous quarter as it continued to increase equity purchases.
Namely, the company did not buy any shares during the quarter, with Buffett referring to the challenge to find investments that meet Berkshire's strict assessment standards.
The growing cash reserve has speculated among investors in the case of possible acquisitions or strategic moves under new management.
At the same time, some market trackers believe that cash accumulation may be the fear of a potential economic downturn. In the midst of speculation, Buffett has considered the current state of market, especially on trade tariffs, calling it a major mistake.
“This is, in my opinion, a big mistake if you have 7.5 billion people who don't like you particularly well, and you have 300 million who whisk over how they are done,” he said.
Since Buffett is preparing for the descendant Greg Abel, a deputy chairman appointed from 2021, now shifts to how Berkshire Hathaway is under new control.
When Abel takes over as CEO, analysts expect him to preserve the company's culture, even if he has no buffetti iconic presence.
Highlighted image via Shutterstock
