Warren Buffett's Berkshire sets off a cash record as he prepares to step back but his influence lasts
Good morning. Under the leadership of Berkshire Hathaway for six decades, legendary investor Warren Buffett will end his term at the end of this year as CEO, deputy chairman Greg Abel will officially step up as CEO in early 2026. Buffett will remain the chairman of Berkshire, the company, the company, the manager of the company. announced On Monday, so he still has a say on how the company is managed.
If Abel takes on a role, he does not lack resources: 94-year-old Buffett's fairytale company is currently sitting at a record $ 347.7 billion in cash and short-term investments, compared to $ 334.2 billion in late last year.
Berkshire (No. 5 Fortune 500) is unique because it has a permanent and reliable cash that comes from its company insurance side, even if Buffett and Abel-Romain are constantly looking for opportunities and investments. Berkshire is not focused on earning income in the same way as many traditional operating companies. This approach to keeping and implementing cash differs from that of most other companies. So using Berkshire to use this cash is the most interesting in the coming years, Bret Bero, professor of management at Babson College, told me.
Buffett made it clear last weekend that he had not kept investment opportunities to shine in Abel's new CEO.
“I wouldn't do anything so noble to hold on to Greg good,” Buffett mumbled at the annual shareholder meeting on Saturday at the meeting and answers session. Investors have wondered when he will take a large amount of Berkshire's cash; However, the company has made some smaller shares. “We run a business that is very -very, very opportunistic … We have made a lot of money if we don't want to invest completely all the time,” Buffett said at the meeting.
It offers a lesson about how companies are happy to manage the surplus of money. You can read my complete article here.
Buffett became CEO in 1970 after his investment partnership acquired a textile company Berkshire in 1965. Over the years, he has had a significant impact on business executives such as Brian Moynihan, President and CEO of Bank of America.
“Warren Buffett has achieved unmatched success during the seventieth decade and plus his career,” Moynihan said in a statement. “In addition to his business success, his unprecedented charity is still an example of what to follow.”
He continued: “His lives to a young and old are as valuable as his business. I have personally learned so much from him and I continue to look forward to his knowledge. He has been a huge supporter and investor of Bank of America and our people's economy and the innovative spirit of the United States.”
Has Buffett affected your career? If so, send me an e -letter – I like to hear about it.
Sheryl Estrada
sheryl.estrada@forne.com
This story was originally reflected on Fortune.com
