Berkshire should acquire Markel and Tom Gaynor (although similar, but not as concentrated holding wise) could be a nice replacement for Buffett on the capital allocation side as well as furthering their insurance knowledge and dominance.
Since Greg is stepping into the CEO role now, it’s logical that he would backfill at least part of his former role overseeing non insurance operations. Berkshire’s operations are vast and good management at the group level will be important. I see this not as encroaching bureaucracy but as the obvious recognition that Greg (or any future CEO) will need help managing the conglomerate.
Berkshire is at least $100 bn overcapitalized, with all of this money now at the holding company (this can be derived from the third quarter 10Q). Having now lost Combs, the company really has no credible plan to redeploy such a large sum. Shareholders would be well served by the company instituting a $50 bn tender at fair value minus a small discount. This would allow shareholders that don’t want to sign on to the Greg Abel era to get out at a fair price, while giving those who want to stay invested a larger share of the company.
The idea that Abel can oversee the equity portfolio and a huge conglomerate is patently absurd. Also, Buffett was able to make large single stock investments because it was his company. It is completely different when the CEO doesn’t control the company.
A more sensible capital allocation strategy would be good for the stock, and Abel can focus on improving the performance of the larger subsidiaries, which frankly have a few issues.
Berkshire is entering a new phase in a natural transition from partnership asset to textile to insurance to operating company. Its structure has to evolve and with Charlie's departure and Warren's reduced role, Greg will need to backfill as mentioned below. The business scope is expanding, he will need his group of vice-chairs and advisor, just like Warren. The moves make sense.
The Markel and Tom Gaynor comment is intriguing. Who will fill the shoes of Ajit when he retires?
I recently bought both the hard copy and kindle version of the first edition of the book. How can I get an updated kindle version, I have to buy it again?
Berkshire should acquire Markel and Tom Gaynor (although similar, but not as concentrated holding wise) could be a nice replacement for Buffett on the capital allocation side as well as furthering their insurance knowledge and dominance.
Since Greg is stepping into the CEO role now, it’s logical that he would backfill at least part of his former role overseeing non insurance operations. Berkshire’s operations are vast and good management at the group level will be important. I see this not as encroaching bureaucracy but as the obvious recognition that Greg (or any future CEO) will need help managing the conglomerate.
Act I will be a very hard act to follow.
Berkshire is at least $100 bn overcapitalized, with all of this money now at the holding company (this can be derived from the third quarter 10Q). Having now lost Combs, the company really has no credible plan to redeploy such a large sum. Shareholders would be well served by the company instituting a $50 bn tender at fair value minus a small discount. This would allow shareholders that don’t want to sign on to the Greg Abel era to get out at a fair price, while giving those who want to stay invested a larger share of the company.
The idea that Abel can oversee the equity portfolio and a huge conglomerate is patently absurd. Also, Buffett was able to make large single stock investments because it was his company. It is completely different when the CEO doesn’t control the company.
A more sensible capital allocation strategy would be good for the stock, and Abel can focus on improving the performance of the larger subsidiaries, which frankly have a few issues.
Berkshire is entering a new phase in a natural transition from partnership asset to textile to insurance to operating company. Its structure has to evolve and with Charlie's departure and Warren's reduced role, Greg will need to backfill as mentioned below. The business scope is expanding, he will need his group of vice-chairs and advisor, just like Warren. The moves make sense.
The Markel and Tom Gaynor comment is intriguing. Who will fill the shoes of Ajit when he retires?
~ Todds departure kind of came straight out of left field.
Sad as fuck that it had to happen the same year as Warren leaving.
I recently bought both the hard copy and kindle version of the first edition of the book. How can I get an updated kindle version, I have to buy it again?