The Oracle's Successor
Buffett is 90 and Munger just turned 97. The future of Berkshire Hathaway lies in the hands of someone a few generations junior to these titans of investing.
Buffett is 90 and Munger just turned 97. The future of Berkshire Hathaway lies in the hands of someone a few generations junior to these titans of investing. At 59, Greg Abel is the man to take over as the next CEO of Berkshire Hathaway.
Canadian-born, Abel started his career as an accountant for an energy company. By the time he worked his way up to the president, Berkshire had acquired a majority stake in the company. There began a 22-year long journey and relationship with Warren Buffett. Acting as CEO of Berkshire Hathaway Energy before being promoted to vice president of BRK as a whole.
This raises the next point. Berkshire Hathaway Energy? That’s right. BRK does more than hold stocks in companies, it also runs them. Berkshire Hathaway owns 100% of dozens of subsidiaries across America. Well-known names like GEICO (insurance), Duracell (batteries), and NetJets (private jets) all belong to the company. Their insurance businesses bring in US$61b a year, 24% of all revenue.
Surely such a promotion comes with a hefty pay rise for Abel? Well if he assumes Buffett’s salary he can expect to make US$100,000 this year. Buffett has famously hasn’t had a pay rise in the last 40 years. That being said, Abel has earned US$16m in each of the last 2 years and as much as US$41m in 2016 in a bonus heavy salary.