Who Will Handle Berkshire Hathaway’s $275 Billion Portfolio After Warren Buffett?

The Succession Plan at Berkshire Hathaway

As the shock of Warren Buffett’s exit settles in, one question about the succession has become the elephant in the room — Who will handle Berkshire Hathaway’s $275 billion portfolio of stocks? The legendary, 94-year-old investor is stepping down as chief executive officer at the end of 2025 after an epic 60-year run, but will stay on as chairman of the board. Greg Abel, 62, is poised to take over the reins and have the final word on Berkshire’s sprawling operations and where the conglomerate will deploy its arsenal of cash.

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Greg Abel’s Role

• Greg Abel is currently the vice chairman of non-insurance operations at Berkshire Hathaway.
• It’s unclear if Berkshire’s equity portfolio will be managed entirely or partly by Abel.
• Abel is known for his deal-making and operational capabilities but hasn’t proven to be an exceptionally strong stock picker.

Buffett’s Investment Lieutenants

Buffett’s two investment lieutenants, Todd Combs and Ted Weschler, have independently managed about $15 billion each for Berkshire over the past decade. Some are speculating that the two former hedge fund managers would have a bigger role in managing Berkshire’s stock portfolio, perhaps with the help of others.

Speculations and Predictions

• Some believe Ted and Todd will have more responsibility in managing the stock portfolio.
• Catherine Seifert, an analyst at CFRA, thinks Berkshire could establish a chief investment officer role, potentially filled by Weschler.
• There is a lack of clarity on who will manage Berkshire’s stock portfolio, which could impact the shares.

Big Shoes to Fill

Abel has expressed his commitment to carrying on Buffett’s patient value investing style and deploying Berkshire’s enormous cash reserves whenever a good opportunity arises. Buffett has hinted at leaving capital allocation entirely to Abel, praising his understanding of businesses and common stocks.

Conclusion

With Warren Buffett on the verge of stepping down as CEO of Berkshire Hathaway, the question of who will handle the conglomerate’s massive stock portfolio looms large. Greg Abel, poised to take over as CEO, may not have the same investment expertise as Buffett, leading to speculation about the roles of Todd Combs and Ted Weschler in managing the portfolio. The lack of clarity on this issue could impact Berkshire’s shares, emphasizing the importance of a smooth transition in leadership and investment management.