Berkshire without Buffett?
In the past few months there’s been myriad speculation on how Apple would fare without Steve Jobs; with the man being synonymous with the company he founded, some have argued that without him it wouldn’t hold its high valuations, and some, perhaps foolishly, have said that the whole thing could crumble.
I agree with the former, and the latter’s just ridiculous.
There’s another company though whose founder is just as synonymous with it as Jobs’ is to Apple, maybe even more central, that's been flying low on the radar lately but with the investment community now raging boners over the release of his nth Shareholder Letter and Annual Report, I felt we should broach the topic:
What will happen to Berkshire without Buffett?
No, he’s not sick and despite all the cheeseburgers and cherry Cokes he’s consumed over the years, Warren Buffett seems to be as healthy as a racehorse. Maybe an old one with weird skin, but still.
And no, I do not wish him ill and despite me not being his biggest fan, I wish him nothing but the best but with that said, the dude isn’t immortal, and at 80 years old he might be looking for some down time soon.
How do you monkeys feel about BRK without Warren at the helm?
He and Munger seem to be very confident with Combs taking the reins but will the venerable Berkshire Hathaway keep its clout?
Will we see BRK A hitting $140,000+ again without him?
Or will it all crumble?
Enjoy your Saturday monkeys.
I don't think that it would crumble; however, a change of leadership wouldn't hurt BRK.A at all. I think Todd Combs can definitely bring something new to the table.
I doubt it would crumble.
I dont think it will crumble as soon as Buffet steps out because people know that he will remain the man behinf the scene as long as he lives. However the bug stress test will happen upon Buffet's death I do not think that Todd Combs and whoever else whom are going to become responsible of the portfolio will be under a lot of pressure to provide similar results as Buffet did. I think that if the first year is bad it could crumble plus it is way different to manage a 60billions worth portfolio rather than 400 millions. Achieving 15-20% return on 60 billions vs 400 millions! However, I am of course very confident iwith Buffet's choices, he has minimized the mistakes over the 50 years he has been in Business in finding top managers in addition to top business power.
Whether or not it crumbles, and I do not think it will, Berkshire Hathaway will remain an incredible inspiration to me. BRK is a prime example of how an ordinary American can achieve great success with a mix of luck and devotion.
the stock will definitely lose some value when buffet leaves.. but whether or not it crumbles, only time will tell
Buffett drives markets because of his name. Back at the end of '08 even GS sold him preferred stock with 10% annual payment - ridiculous % for GS: he invested only $5BB and every year was receiving $500MM + all perks. I doubt Todd, or anyone else could've ripped GS off like Buffett did. Take "Buffett" out of equation, and there is no more brand. I doubt Berkshire will crumble, but I think we can forget about amazing returns.
+1. Buffet is the best, no one will be able to do as well as him.
Thats the thing, BRK will suffer at first, but there is no reason that if Combs proves himself that 10 years down the line he shouldnt have the same impact as Buffet does now.
Considering evaluating managers is one of Buffets key focuses, I am confident that Combs will do an excellent job at the helm.
I don't think it will crumble. The knowledge is in the company and I'm sure his follow-up will be as good as buffet.
second walkerr
if what he says in BRK's releases is true then the value is in the company. as far as i know their management still seems solid. senior management have been living with the guy for decades as well
whether BRK will drop because of panicky people is different though. i think people smart enough to buy BRK would also be smart enough not to sell just because he's no longer involved
as far as i know he's been handling some succession protocol for a few years now and he said smth like "rest assured BRK [and it's holdings] are in good hands" with his usual humour.
good pic btw
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