Buffett hands his successor a giant cash pile and many questions

Warren Buffett has chosen the last minute of the 60th 60th of shareholders for a long-awaited statement, which was still completely surprising for the most of his counsel and even his successor.

Buffett, the architect and face of the 94-year-old Berkshire Hathaway Inc. stated that the gathering was his last, as the head of the company built one of the most valuable enterprises in the world. A few meters away, Greg Abel, the energy executive, who was seen as the Crown Prince of Omaha, was not even aware that he had come to his time.

Buffett will lead ABEL with 1.2 trillion tems by ordering a stock portfolio such as Apple Inc. and American Express: Co. At the top of the collection of insurance, energy, railway and consumer business, which regularly uses $ 10 billion per quarter with operational gains. The 62-year-old children will also inherit Leafora.

Shareholders will want to know how Abel will change the company’s minted and thin C-Suite, whether he will give birth to tolerance or industry preferences, and if the company remains the first call of large-scale companies. They will even be surprised about the future of the annual meeting of the so-called timber, which for capitalists, who are dragging out of the whole world on the wisdom and wisdom of the wisdom and its late businessman Charlie Mungry.

“People love Warren because he has some magic,” said Alice Shrew, who wroteSnowball. Warren Buffett and life businessThe biography of the billionaire, which is considered to be for his fans and helped to push his reputation. “It is almost impossible to capture.”

Although few people expect Abel to meet Buffett’s main street celebrity and the removal of the longest service director in S & P 500 also open deep questions about the pressure of its absence.

Berkshire does not pay a dividend and recently started to buy Back Back Back, with whom the buffet rests on its trailing records to show a better interest rate.

And Berkshire has achieved such gravity, with about 400,000 employees and has such incomparable businesses, which have discussed some observers over the years, it may be broken after Buffett’s leaves.

Abel insisted that he will follow the principles that Buffett has established risk in contribution. And Buffett said he would remain the main shareholder.

One thing “investors will have to sow, the concept is. Katie Sayerer said, CFRA research analyst. “It can be a laundry list that some institutional investors that include a payment of money dividend and a more regular capital allocation program.”

Energy-saving

Abel joined the Hatavavi of Berkshire through acquiring.

The Canadian executive, who began his career as an accountant, later joined the Geothermal Energy Calenergy in 1992 as a controller.

David Sokol, the General Director of the Calenager, had ambit to build business and see Abel’s talent through achievements. In 1996, he sent Abel to Britain to drive an electric tool that the company bought. In 1998, Calenergy signed a deal, buying Midamerican Energy, Uova utilities and accepted her name.

Shortly afterwards, Berkshire took the control stake, giving the company the opportunity to acquire the acquisition, pipelines with northwestern northern Northern Yerevan bankruptcy and electric utilities.

In 2008, Sokol took a wider role in Berkshire, and Abel was called Midamerican Executive Director. According to Sokol, Buffett had reservations if he could find and negotiate transactions.

“I knew the answer to that, because he took part in every achievement we gained, and he practiced some of them,” Sokol said in 2014 in an interview. “I think that Warren and some of our members of the council were not sure they had not felt with him.”

In a few months, Abel showed his cutlets. Midamerican agreed to pay about $ 4.7 billion in September 2008 to buy Constellation energy GROUP INC. Baltimore-based electricity company has lost its market value in a week. Berkshire severed more than $ 1 billion from breakdown fee and after profit after its contribution to another claimant.

Other Abel transactions proved long. In 2013, he bought Nevada’s largest electric utility, NV energy, and next year Abel agreed to buy an electric transmission company in his native Alberta. Midamerican’s name has later changed to Berkshire Hathaway Energy in 2014 to more closely equate the brand for prestige and values.

The expansion led to the establishment of a US utility, which keeps lights Iowa and Nevada and current natural gas pipelines, which operate about 14,200 miles from Texas to Michigan.

This helped him to acquire a skilled utility executive and eventually to earn Buffett’s trust. In 2018, he was contributed to the vice president, expanding his control over the non-insurance operations of all Hatava in Berkhshire, which railway operators leads to BNSF on visible candy.

He stated that the next successor waiting for the 2021, when Munger slipped the annual Berkshire meeting that Abel would consider Conglomerate culture intact.

Since its promotion, operational earnings, excluding several other insurance items. About 27% of almost $ 22 billion was spread last year.

Now, what is happening is his investment. Todd Comber and Ted Weschler were hired in 2010-2011 to help manage Berkshire shares and bonds. COMBs since the control of Geoico insurance unit. Both recommended the buffet to potential attractive attractors and can do the same for Abel.

“Greg is the leader of the business, he is not responsible for investments,” said Schroobs. “It will be one of the biggest challenges of himself and the council.”

He has received almost $ 350 billion in cash to invest, the executive does not have a record of a joint-stock election. During the meeting on Saturday, he was asked about his capital placement strategy. He called “huge active” and promised continuity “huge active”. But his response is not his approach to what the Berkshire regulations have learned.

“He struggled with the issue,” said Col Sumad, a shareholder in Berkshir Hatava.

“I thought that like Charlie and Warren, he would look at his life at the original time and tells about something he felt in investment,” he said. “He didn’t do.”

This story was originally shown Fortune.com