WSJ: The Man Preparing for a Berkshire Hathaway Without Warren Buffett

[John Hjorth]

I personally think that it would be constructive and fruitful to think about Greg Abel as an industrialist [, like in : Wallenberg style], when the modus operandi to buy for the long term to hold, without constantly flipping something, but to buy to build.

 

It is also to me quite evident that the format of the AGM has to change with regard to who is saying something now that Mr. Munger has passed away. Greg Abel and Ajit Jain will have to evolve their own personal style for performance under these sessions. So it must also have been hard for them to sit at the AGMs in the limelight, but almost overshadowed - untill now - by Statler and Waldorf. That said, I personally think it's fair to say that Mr. Buffett has been inclusive towards them both.

Edited January 24 by John Hjorth

[Eldad]

41 minutes ago, John Hjorth said:

I personally think that it would be constructive and fruitful to think about Greg Abel as an industrialist [, like in : Wallenberg style], when the modus operandi to buy for the long term to hold, without constantly flipping something, but to buy to build.

 

It is also to me quite evident that the format of the AGM has to change with regard to who is saying something now that Mr. Munger has passed away. Greg Abel and Ajit Jain will have to evolve their own personal style for performance under these sessions. So it must also have been hard for them to sit at the AGMs in the limelight, but almost overshadowed - untill now - by Statler and Waldorf. That said, I personally think it's fair to say that Mr. Buffett has been inclusive towards them both.

Abel and Jain have kinda been duds in the personality space (nervous maybe, not their place to joke maybe?). I think remember Todd being kind of a robot too. Let’s try Ted and maybe on of the sub CEOs? Can’t let it turn into just another meeting after WB. 

[coc]

One thing to remember about Abel is that he's *currently* in charge of all the operations he'll be in charge of when he's promoted at WB's death. Any changes you think he's gonna make, he'd presumably be making now.

[schin]

7 hours ago, coc said:

One thing to remember about Abel is that he's *currently* in charge of all the operations he'll be in charge of when he's promoted at WB's death. Any changes you think he's gonna make, he'd presumably be making now.

 

Abel is running operations at MidAmerican Energy..... But, the other companies are on autopilot... His job is almost like coaching LeBron James and Tom Brady... I mean... Warren bought companies that were run by strong management. He never did fixer uppers. You have to have your management in place.  BNSF, GEICO, and See's candies. They're decentralized to the max. It's pretty much accounting at the parent holding level and just praising them publicly.

 

 

[longterminvestor]

14 hours ago, schin said:

 

Abel is running operations at MidAmerican Energy..... But, the other companies are on autopilot... His job is almost like coaching LeBron James and Tom Brady... I mean... Warren bought companies that were run by strong management. He never did fixer uppers. You have to have your management in place.  BNSF, GEICO, and See's candies. They're decentralized to the max. It's pretty much accounting at the parent holding level and just praising them publicly.

 

 

Agree however you still gotta deal with a situation like a Precision Castparts.  Also Netjets hit skids (Sokol brought that one back) and Pampered Chef needed a leader (Tracy Britt Cool).  Nothing is forever.  I kinda think of Mr. Able/Mr. Jain as the security guard who looks over the Mona Lisa.  The security team there doesn't have to do much most of the time, but if someone rushes the painting to steal off the wall they have to act quickly and perform exactly as required and very fast.  

[Munger_Disciple]

26 minutes ago, longterminvestor said:

Agree however you still gotta deal with a situation like a Precision Castparts.  Also Netjets hit skids (Sokol brought that one back) and Pampered Chef needed a leader (Tracy Britt Cool).  Nothing is forever.  I kinda think of Mr. Able/Mr. Jain as the security guard who looks over the Mona Lisa.  The security team there doesn't have to do much most of the time, but if someone rushes the painting to steal off the wall they have to act quickly and perform exactly as required and very fast.  

 

Didn't Abel just replace the Pacificorp CEO? Looks like the payout for wildfires there will be pretty big. So even supposedly safe & boring utility business has more risk than I thought prior to this incident. 

[schin]

On 1/25/2024 at 12:53 PM, Munger_Disciple said:

 

Didn't Abel just replace the Pacificorp CEO? Looks like the payout for wildfires there will be pretty big. So even supposedly safe & boring utility business has more risk than I thought prior to this incident. 

 

I am not sure. But, is Abel being used like Sokol as a fixer? 

 

Warren has invested in some companies that need a person to run to closer -- like his Blue Chips Stamps, BRK investments..so, if Abel is the fixer so be it.. but, the CEO position is broader than chasing down the rogue company.   I do prefer someone who is down to earth and just get some things done... rather than a self-promoter/marketing/sales guy in the CEO position. 

 

It's just going to boring at the AGM... I found Abel's responses to have a lot of corporate speak.... "We're working with various parties and we're going to be to do the right thing for the community... for the government.. and ultimately for the our shareholders over the long run..." There's only so many times we can hear that.  I know it's not his swim lane, but love to hear what he thinks about banks, airlines, broader issues.. instead of his narrow operational and political/regulatory challenges.

[schin]

On 1/25/2024 at 12:25 PM, longterminvestor said:

Agree however you still gotta deal with a situation like a Precision Castparts.  Also Netjets hit skids (Sokol brought that one back) and Pampered Chef needed a leader (Tracy Britt Cool).  Nothing is forever.  I kinda think of Mr. Able/Mr. Jain as the security guard who looks over the Mona Lisa.  The security team there doesn't have to do much most of the time, but if someone rushes the painting to steal off the wall they have to act quickly and perform exactly as required and very fast.  

 

 

They're great security guards, but do you want them running the whole museum? It's a broader skillset.

 

[Thrifty3000]

9 hours ago, schin said:

 

 

They're great security guards, but do you want them running the whole museum? It's a broader skillset.

 

That will be up to the board of directors, and will probably be based on overall performance against the S&P 500 over rolling five year periods. Greg has been reporting to Buffett and the board on company results and his initiatives for several years now. So the board should have a good level of confidence by now on his grasp of the overall machine.

 

I have a hunch Todd is being groomed to succeed Greg. By the time he takes the reins I think he’ll be about as good of a fit as investors could hope for - sans the personality.