When it comes down to a financial empire led by an 81 year old, it’s likely that the board of executives and investors be concerned about who will take over it. This is the sort of situation that Berkshire Hathaway Inc., Warren Buffet’s pride and glory, is currently going through as the board has deliberate over the weekend who will be heir to his huge financial empire.
A shareholders annual letter signed by Warren Buffett February 25th announced that the board of Berkshire Hathaway Inc., has deliberated over his replacement. At age 81, Warren Buffett isn’t exactly in the situation where he can allow not to have set a replacement.
As the letter points out it seems that Berkshire’s board of directors was quite “enthusiastic” about the given task and seem to have had selected a name that will not be disclosed too soon. At the same time, as Warren Buffett points out there isn’t a specified timeline for the heir to take over the financial empire.
Since no names have been given to the media, Bloomberg only points out that there is a likelihood some of Berkshire’s managers might be the winner candidate. Investors also have their own bets on the winning names, and Tony Nicely, CEO of insurance company Geico, or Ajit Jain and Director Bill Gates are currently seen as having the best chances of replacing Warren Buffett at some point.
During early December of 2011, Warren Buffett was invited on 60 Minutes where he hinted that his son, Howard Graham Buffett, age 57, will be the one who will be heir to the $44 billion Berkshire Hathaway, a financial empire that is worldwide reputable for the ingenuity in business making.
Howard Graham Buffett could be the one to eventually replace the genius that Warren Buffett is, but he will have some really big shoes to fill out. Although he has over 20 years of experience as board member of Berkshire Hathaway and Coca-Cola or Lindsay Corp., it’s obviously that the main concern is that the task will be too much for him.
Alice Schroeder is one of Bloomberg’s columnists and authored “The snowball, Warren Buffett and the Business of Life”. She thinks that the announcement in the shareholders letter is “more of a commitment, clearly. This is not the if-I-get-hit-by-a-bus-plan. This is the succession plan”.