It's a bit of a cheerless topic, but the greatest investor of all time, Warren Buffett, won't be with us forever and many investors are wondering if their investments will be safe. How will Berkshire Hathaway work without the Oracle?

With the death of Warren Buffett, there may be some uncertainty at Berkshire Hathaway and how the company will carry on without its charismatic leader. However, Buffett created a strong culture and philosophy within the company that will continue to operate after his death. Buffett has also chosen his successors and investment team to continue running the company. And that is where our focus will be. Who will be Buffett's successor?

https://www.youtube.com/watch?v=ee5BzwBCERE

Greg Abel

Buffett himself says they have no concerns about Vice Chairman Greg Abel's ability to lead the conglomerate. Abel already oversees all of Berkshire's businesses ... except insurance companies. So he runs pretty much everything except how to invest Berkshire's nearly $131 billion in cash.

Greg Abel is a Canadian executive and currently vice chairman of Berkshire Hathaway. Abel was born in 1962 in Canada and has a bachelor's degree in chemical engineering. In 1989, he began working for CalEnergy, which was acquired by MidAmerican Energy Holdings in 1998 and later renamed Berkshire Hathaway Energy. Abel became CEO of MidAmerican Energy and subsequently led the $5.1 billion acquisition of PacifiCorp in 2008.

In 2018, Abel became vice chairman of Berkshire Hathaway and began assuming responsibility for many of the company's industrial and energy businesses. In 2021, Buffett announced that Abel was his preferred successor and that he would be in charge of running the company after his departure. Abel is considered a capable and experienced manager who is capable of leading a large company like Berkshire Hathaway. His abilities and management style were especially appreciated when he led Berkshire Hathaway Energy, where he made many successful acquisitions and made the company a strong player in the energy industry.

At Saturday's annual meeting, Buffett assured investors that he believes Abel is the right man for the job and that he knows how to allocate capital using the same model Buffett uses, though he doesn't make those spending decisions now.

"I don't have a second option. I've seen Greg in action and I feel 100 percent confident," Buffett said. "Greg inherited a good business and I think he's going to improve it."

In addition, Berkshire has two other investment managers and another vice chairman who oversees all insurance business. Buffett said it will be up to Abel to decide how much he will rely on those people after he becomes CEO.

https://www.youtube.com/watch?v=i41L2Gy_d5Q

Berkshire executives, who have reported to Abel instead of Buffett since 2018, said they are confident and impressed with his ability to oversee dozens of different businesses.

And that he has a lot to oversee ...

Berkshire Hathaway is a conglomerate that owns and operates more than 60 different companies and has investments in many more. Some of the most well-known companies in Berkshire Hathaway's portfolio include insurance company GEICO, rail carrier BNSF Railway, battery maker Duracell, food products manufacturer Kraft Heinz, investment bank Goldman Sachs, and others. All of these companies have different lines of business, which makes them even more difficult to track.

Buffett is clearly a hard act to follow after leading Berkshire for 58 years and earning a reputation as one of the best investors ever. But Abel is said to make up for it with talent.

Buffett and Abel joked during a CNBC interview earlier this spring that Abel might even get more out of Berkshire's businesses because he's more predatory. Like Buffett, however, Abel largely lets the businesses run themselves, regularly discussing strategy with them and offering advice whenever they need it. But they leave the operational work to them.

Moreover, all the directors of these businesses agree that Abel is an extremely capable manager.

The most positive news for me is that Abel is trusted implicitly by Warren Buffett himself. I think this is a clear indication that Berkshire will be able to deliver the same results after the Oracle leaves.

Berkshire Hathaway

BRK-B

$461.97 $9.01 +1.99%

Capital Structure

Market Cap

995.1B

Enterpr. Val.

1.1T

Valuation

P/E

14.7

P/S

2.7

Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.