Berkshire Hathaway

[money]

Part of the cash pile is from selling Apple. Interesting he digress to taxes and said it is likely to rise and concluded that he wouldn't mind selling some Apple

https://www.reuters.com/business/finance...ely%20grow.

I wasn’t expecting “some” to be 1/2

Given the high pe that apple is still trading today, my guess is buffett will continue to sell down the apple stake

[Behappyalways]

Buffett's Vice Chairman Dumps Over Half Of His Berkshire Shares
https://www.zerohedge.com/markets/buffet...ire-shares

[weijian]

Well, history provides great learning lessons but those of us learners sometimes take the extreme of overlearning the last crisis. It is always about the path of the middle. 

On another note, as Howard Marks has commented in his latest memo or even Buffett may have demonstrated in his actions, debt is now looking to be much prettier than equity if one is ok with "mid to high single digit returns" that are highly probable.

Buffett's US$277b cash hoard after selling Apple is a warning

Berkshire dramatically built up its cash hoard from 2002-2005 and then kept it around record levels until the end of 2007. What we remember now is how smart Buffett and his late sidekick Charlie Munger looked during the crisis when they used their spare cash to scoop up investments involving Goldman Sachs Group, General Electric and Dow Chemical. But we often forget how stubborn they looked before the crash: Berkshire significantly underperformed the S&P 500 from the end of 2002 to mid-2007. In hindsight, perhaps that was a sensible risk-reward tradeoff, but history shows that the economy doesn’t immediately melt down just because Buffett has gone to cash.

https://www.businesstimes.com.sg/compani...le-warning

[weijian]

Buffett'ṡ last day of work as a Berkshire executive falls on tomorrow. This succession draws my comparison to Fergie's retirement from Manchester United at the end of the 2013 season. For United fans (yours truly one of them), it wasn't a great experience. Modern soccer had moved on but United stuck with the usual old way of doing things under Fergie. While an immense success under Fergie, the old hierarchy and structure was found wanting after his retirement.

The greatest lesson ever taught by Buffett is his own practice evolution. So, it will be interesting to observe if Berkshire under Greg Abel, evolves accordingly too.

As Warren Buffett retires, uncertainty looms for Berkshire Hathaway

But what does the original’s future look like without its legendary leader? Abel, who currently runs Berkshire’s non-insurance activities, is not a stock-picker. Instead, he came up through Berkshire’s energy business. That makes the defection in December of Todd Combs, one of Buffett’s top investment lieutenants, to JPMorgan Chase, America’s biggest bank, a worry.

“What you’re going to lose is his Rolodex,” says Brian Meredith of UBS, an investment bank. Would Berkshire still be called upon to stabilise failing banks the way it was in 2008?

Berkshire recently appointed its first general counsel; more financial disclosure also seems likely under Abel. Buffett’s annual letters were blunt about Berkshire’s performance, and capitalism in general, but light on numbers.

Change will be slow, but certain. Loyal holders of Berkshire’s super-voting “class A” shares will give Abel time to settle in, reckons Lawrence Cunningham of George Washington University. Buffett will remain chairman of Berkshire’s board, which is stacked with his family and friends.

https://www.businesstimes.com.sg/opinion...e-hathaway

[specuvestor]

My observation is that Abel seems like an operational person just like Tim Cook

The shine will definitely come off but the moat will maintain for quite a while

[weijian]

My observation is that Abel seems like an operational person just like Tim Cook

The shine will definitely come off but the moat will maintain for quite a while

Berkshire's AR25 was released last weekend and I finally had the chance to read the first annual report written by Greg Abel. Gone is the usual Buffett's humor but Greg Abel has continued Buffett's practice of "praise by name, criticize by category". Ex-rival Ajit Jain appeared twice in the praise.

There are tons of numbers and Greg has appointed a new CEO to oversee the smaller but numerous (total 32) operating businesses. As long time Berkshire observers/investors have postulated - Greg Abel will probably squeeze more dollars out of its non-insurance ops than Buffett would ever do.

Berkshire Hathaway Inc.

We are fortunate to have Adam Johnson now serving as president of our consumer products, service, and retailing businesses. Adam, who has lived the Berkshire culture for nearly 30 years (10 as CEO of NetJets), is now responsible for a group consisting of 32 companies. Adam and his team at NetJets think like owners and earned their reputation for operational excellence over the past decade. Their work transformed NetJets from a challenged business model into a successful enterprise that delivers value for Berkshire shareholders. That same approach – accountability and a focus on avoiding complacency – will guide how he works with the CEOs across his portfolio.

Our non-insurance operations generate substantial operating earnings and recurring cash flows. A sustained focus on operational excellence will strengthen this group of businesses, positioning it to deliver even greater long-term value.

AR25: https://www.berkshirehathaway.com/letters/2025ltr.pdf

[weijian]

Warren E. Buffett Becomes Chairman Emeritus, Remains Director; Howard G. Buffett Elected Chairman

Recently, I celebrated my 96th birthday with family and friends, including one of my great-grandchildren, who had just turned one. He’s moving a bit faster than I am these days. I have served Berkshire since 1965. Sixty-plus years in, I still have the best job in the world. That is not something many people my age can say, and I have never felt better about what comes next.

Serving as your Chairman has been the privilege of a lifetime, and I have never taken your trust for granted. Father Time always wins. He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead. The company is in excellent hands, and I look forward to remaining a shareholder alongside you.

https://www.berkshirehathaway.com/news/sep1826.pdf

[specuvestor]

Frankly I think it is bad optics for Howard Buffett to be Chairman and a slap in the face for Berkshire corporate governance in dynastic succession. I'm not sure what value can he add to the board when he runs his own farm and not a corporation

I guess nothing new under the sun. Humans are not perfect even as we witness the legacy of LKY as well, whom I also respect a lot. Learn from others' mistakes so we don't have to make the same mistakes ourselves.

[weijian]

Frankly I think it is bad optics for Howard Buffett to be Chairman and a slap in the face for Berkshire corporate governance in dynastic succession. I'm not sure what value can he add to the board when he runs his own farm and not a corporation

I guess nothing new under the sun. Humans are not perfect even as we witness the legacy of LKY as well, whom I also respect a lot. Learn from others' mistakes so we don't have to make the same mistakes ourselves.

hi specuvestor,

When this was first announced some time back, the anti capitalists had a field day criticizing him and I have to admit that I had similar thoughts as you did (although I don't think both of us are anti-capitalists)

It was explained that Howard, as Buffett's first born, knows his dad's heart and is trusted to be the guardian of Berkshire's culture that both his dad and Charlie Munger had built up over the decades. So to that extent, running his own farm added to his qualification because Berkshire is not a typical corporation.

Blood is thicker than water. If blood is not good enough, you look for water as substitution. If blood is good enough, there is no need to substitute it with water for "optics" sake.

[specuvestor]

yes supposedly the reason that Howard is even in the board in the first place.

But I don't see any of his children particularly keen on investment. His children are closer to the mother than the father.

Ya blood is indeed thicker regardless

Frankly I think it is bad optics for Howard Buffett to be Chairman and a slap in the face for Berkshire corporate governance in dynastic succession. I'm not sure what value can he add to the board when he runs his own farm and not a corporation

I guess nothing new under the sun. Humans are not perfect even as we witness the legacy of LKY as well, whom I also respect a lot. Learn from others' mistakes so we don't have to make the same mistakes ourselves.

hi specuvestor,

When this was first announced some time back, the anti capitalists had a field day criticizing him and I have to admit that I had similar thoughts as you did (although I don't think both of us are anti-capitalists)

It was explained that Howard, as Buffett's first born, knows his dad's heart and is trusted to be the guardian of Berkshire's culture that both his dad and Charlie Munger had built up over the decades. So to that extent, running his own farm added to his qualification because Berkshire is not a typical corporation.

Blood is thicker than water. If blood is not good enough, you look for water as substitution. If blood is good enough, there is no need to substitute it with water for "optics" sake.