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11/22/2024 07:31:00 am

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Candidates To Succeed Warren Buffet as Berkshire’s CEO Identified

Warren Buffett

(Photo : REUTERS/Carlo Allegri ) Warren Buffett, Chairman of the Board and CEO of Berkshire Hathaway, poses for a portrait in New York October 22, 2013.

Two executives of Berkshire Hathaway, Inc. had been identified as possible candidates to succeed billionaire Warren Buffet, the company's chief executive officer.


The two - Greg Abel, head of Berkshire's energy companies and Ajit Jain, an insurance executive - were named at Berkshire's annual report to shareholders by Charlie Munger, the  company's vice chairman.

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In his letter to shareholders, Munger said the candidates can be described "world-leading" and "in some important ways, each is a better business executive than Buffet."

Speculations as to who will succeed Buffet had been rife after the 84-year-old CEO was diagnosed with prostate cancer in 2012. 

However, Buffet who had since beaten his illness, had made it known that he already had a successor in mind but is keeping his options open.

In an earlier letter to shareholders, Buffet said that "both the board and I believe we now have the right person to succeed me as CEO," adding that "in certain important respects, this person will do a better job that I am doing."

Hinting that the potential successor is already a part of Berkshire, Buffet said that the successor should at least be able to stay on for a decade. 

"Our directors also believe that an incoming CEO should be relatively young so that he or she can have a long run in the job," Buffet said. Abel is 52 years old while Jain is 63.

Berkshire had recently reported a drop in fourth quarter net income by 17 percent but its full-year profit increased by two percent.  There was also a reported increase in operating profits for the two periods.

From a textile company that was on the brink of financial collapse, Buffet transformed Berkshire into a $363 billion conglomerate, with more than 80 operating businesses. 

With more than $117 billion of equity investments, Berkshire  is into insurance, railroad, food, apparel and energy.

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