Veteran investor Warren Buffet has handed over the command of Berkshire Hathaway to Greg Abel. Abel was long considered Buffett’s successor. Now he has become the CEO of Berkshire Hathaway in place of Buffett. Buffett has said that in the long term the future of his company looks better than that of any other company. He has also said that his company can survive for the next 100 years, whereas he does not think so about any competitor. CNBC has given this news.
Now the responsibility of taking decisions related to the company will be on Abel.
In a special interview given to CNBC Warren Buffett praised Abel’s decision making ability. He also made it clear that the responsibility of taking decisions related to the daily functioning of the company will now be on Abel. Buffett stepped down as CEO on January 1. With this, the trend that continued for almost six decades, during which Berkshire Hathaway reached the heights, came to an end.
Warren Buffett will remain chairman of Berkshire Hathaway.
Berkshire Hathaway was once a struggling textiles mill. Today it has become a company that includes insurance, railways and consumer businesses. CNBC has given this news. Buffett will remain chairman of Berkshire Hathaway. He has indicated that he will remain connected with the work. But, his role will now be less than before. He will also be seen less in public roles.
Buffett tried to allay investors’ fears
“Greg will now make the decisions,” Buffett told CNBC. He said that in a way this means that instead of America’s top investment advisors or CEOs, Abel will now handle their money. Actually, Buffett’s purpose with these things is to remove the doubts of those people who fear that such a big business empire will be able to run without Buffett.
Shares fell after his retirement announcement in May
CNBC reported that Berkshire Hathaway’s shares had fallen after Buffett first announced his retirement in May. The reason for this was investors’ fear that without Buffett, it would be very difficult to manage the company’s equity portfolio along with the businesses under Berkshire. Buffett has tried to allay this fear of investors. He believes that Berkshire is not dependent on any one person. Especially Abel has been prepared for this.
Berkshire Hathaway continues to move forward under Abell
He described Abel as a down to earth leader. His life is far from glamour. He lives a simple life. He wants to stay away from limelight. This means that under Abel’s leadership, Berkshire will continue to grow in the same way as it has so far. Buffett announced another major change. He said that he will not play a key role in Berkshire’s annual shareholder meeting this year.