Berkshire Hathaway's future is quite rosy even without Warren Buffett

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As Warren Buffett is set to take the stage once again at Berkshire Hathaway's (19459002) BRK-A BRK-B Annual General Meeting it is only natural that questions about his success resurface and what Data Reaction = "15"> As Warren Buffett is set to take the stage again at Berkshire Hathaway's (BRK-A, BRK-B) Annual General Meeting, it's only natural that the questions of his success surpass and what it may mean for the future of the company.

In conversations with shareholders and Buffett observers, many believe that the 88-year-old investment legend has built a company and culture that will last long after he is gone.

To begin with, he developed a deep talent bench for Berkshire Hathaway's leadership. In early 2018, Buffett held Ajit Jain in charge of all Berkshire Hathaway's insurance activities and Greg Abel, who was responsible for all other operations.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – -m Mt (0.8em) – sm" type = "text" content = "" These moves were too late, "& nbsp ; Buffett wrote in the annual letter . "Berkshire is now far better clear than when I was alone in oversight. Ajit and Greg have rare talents, and Berkshire's blood flows through their veins. Data Reaction = "18"> "These traits were too late," Buffett wrote in the yearbook. "Berkshire is now far better clear than when I was alone in oversight. Ajit and Greg have rare talents, and Berkshire's blood flows through their veins."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " [ Click here for coverage of 2019 Berkshire Hathaway General Assembly

.] "data-response time =" 19 "> [ Click here for coverage of 2019 Berkshire Hathaway General Assembly .]

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" On the investment side Buffetts two young lieutenants, Todd Combs and Ted Weschler, manage every $ 13 billion in Berkshire's massive $ 173 billion equity portfolio and have "total discretion" and nbsp ; over investment decisions. "data-reactid =" 20 "> Buffet's two young lieutenants Todd Combs and Ted Weschler are investing $ 13 billion in Berkshire's massive $ 173 billion investment portfolios follow and have "total judgment" on investment decisions.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Lawrence Cunningham, author of & nbsp; "Berkshire Beyond Buffett," & nbsp; is confident of the future of the investment and insurance merger due to the talent of Berkshire and its affiliates. " Lawrence Cunningham, author of "Berkshire Beyond Buffett," is confident of the future of the investment and insurance conglomerate due to the talent of Berkshire and its subsidiaries.

"It's an incredibly talented Everybody believes Warren is a one-man fair in Berkshire, but that book shows that there are hundreds of talented people that he's trained and groomed," Cunningham Andy Serwer told a panel at Yahoo Finance USA-China Forum on Friday.

Cunningham added that when he talks to Abel, he often thinks it's talking to Buffett himself.

More

An investment from Buffett is a elected representatives, especially in economic times. stress when companies require a lifeline. While the capital may be critical, there is a significant endorsement that comes with the name Buffett.

"It's obviously the only big thing you lose, just when Charlie and Warren aren't around, is that kind of market-floating" UBS analyst Brian Meredith said during the forum.

However, Meredith predicts that Buffett trains the young investment assistants to fill that role.

"They are developing all these connections, and Warren is super smart, and he knows how to mentor people, and that's what he's doing right now to put them in that position when you have a financial crisis situation or whatever they know, or an investment banker on Wall Street knows: "Oh, I can call Todd, or I can call Ted, or I can call Ajit," right? Boom, first call. "

Another important buffer attribute is the ability to quickly assemble a deal.

" Also, I'm sure he is training them to actually have the ability to reverse the transaction in 24 hours, "Meredit h said." There is another very unique thing about Warren Buffett and Berkshire Hathaway. I mean when a banker runs in a situation and he needs to figure out a deal or get capital in 24 hours, it's not easy to do, Warren can do it very quickly. "

In the forum, the value of investor Tom Russo, managing member of Gardner Russo & Gardner, also referred to Buffett's commitment to preserving the culture when Berkshire purchased a business. This approach to investing is likely to continue even without Buffett.

More

History Continues [19659031] "Everyone knows you can sell a business to private equity, but the private equity contract with their investors is that they want their money back over a rather narrow, short period," says Russo on a panel on the forum. someone wants to preserve the culture and quality and character of the business that they have worked with, should they build, it really is just one place where they can sell that business. "

This approach, explains Russo, allows Buffett to buy better Companies at lower prices because "good businesses won't sell to a private equity firm that will quickly take responsibility for destroying what did well."

"With that feature intact, combined with two new Vice-Presidents Greg and Ajit who b Eggs are good, the best in the world in these areas, plus these two investors Todd and Ted, how brilliant, I think the future is pretty rosy. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Julia La Roche is CFO at Yahoo Finance. Twitter . "data-reactid =" 78 "> Julia La Roche is a financial reporter at Y ahoo finance Follow her on Twitter