New Ajit Jain Signals in The Tea Leaves

[Parsad]

You know this question is now going to come up at the AGM, since they got these AIG executives. 

 

http://blogs.wsj.com/moneybeat/2013/04/26/new-ajit-jain-signals-in-the-berkshire-hathaway-tea-leaves/?mod=yahoo_hs

 

I've met Ajit on two separate occasions...both times he was incredibly polite and genuine. 

 

The first time, he bit off the head of a suit standing next to me when I was talking to Ajit about Prem...it was back in 2004.  The fella said "Isn't he the guy who is in alot of trouble now?"  Ajit snapped at the guy..."Is he IN trouble, or is he OUT of trouble?!"  The guy went quiet!

 

The second time was outside of the Omaha Marriott as he was leaving, and he took several minutes to talk to me, and then asked for my card.  I was a bit surprised.  I very much believe he should be the guy to take over after Buffett.  Cheers!

 

 

[Mephistopheles]

Thanks for posting this, Sanjeev!

 

I'd love to see Ajit as the new CEO, but I'm not sure how plausible that is. I remember from a Buffett interview, I think from when he was in India, someone asked Warren if Ajit would make a good Berkshire CEO. Buffett replied that he would give him the job in a heartbeat but he knows that Ajit would much rather keep his current job.

[Grenville]

Nice article, thanks for posting!

[berkshiremystery]

Thanks for posting this, Sanjeev!

 

I'd love to see Ajit as the new CEO, but I'm not sure how plausible that is. I remember from a Buffett interview, I think from when he was in India, someone asked Warren if Ajit would make a good Berkshire CEO. Buffett replied that he would give him the job in a heartbeat but he knows that Ajit would much rather keep his current job.

 

I remember that Buffett said... if Charlie, Warren and Ajit are ever in a sinking boat – and someone  can only save one of them – swim to Ajit (Jain).

 

 

EDIT:  I just saw that this was also mentioned again in the WSJ article from above. Anyway,... only Sanjeev had forgotten that Ajit was also at Fairfax's 2012 AGM. So it seems Omaha is secretly peeking in Toronto and Ajit plays the undercover agent.  ;)

[Mephistopheles]

Thanks for posting this, Sanjeev!

 

I'd love to see Ajit as the new CEO, but I'm not sure how plausible that is. I remember from a Buffett interview, I think from when he was in India, someone asked Warren if Ajit would make a good Berkshire CEO. Buffett replied that he would give him the job in a heartbeat but he knows that Ajit would much rather keep his current job.

 

I remember that Buffett said... if Charlie, Warren and Ajit are ever in a sinking boat – and someone  can only save one of them – swim to Ajit (Jain).

 

 

That's true - his reason was that Ajit has added the most value to Berkshire out of the 3 of them. I would disagree with him there :)

[BRK IN MKE]

Thanks for posting this, Sanjeev!

 

I'd love to see Ajit as the new CEO, but I'm not sure how plausible that is. I remember from a Buffett interview, I think from when he was in India, someone asked Warren if Ajit would make a good Berkshire CEO. Buffett replied that he would give him the job in a heartbeat but he knows that Ajit would much rather keep his current job.

 

I remember that Buffett said... if Charlie, Warren and Ajit are ever in a sinking boat – and someone  can only save one of them – swim to Ajit (Jain).

 

 

That's true - his reason was that Ajit has added the most value to Berkshire out of the 3 of them. I would disagree with him there :)

 

I agree with you that the quote is just Buffett being humble, but Ajit is also 20 years younger than Buffett. So part of Buffett reason might be because Ajit has a longer time period to impact the results at Berkshire.

[Parsad]

Thanks for posting this, Sanjeev!

 

I'd love to see Ajit as the new CEO, but I'm not sure how plausible that is. I remember from a Buffett interview, I think from when he was in India, someone asked Warren if Ajit would make a good Berkshire CEO. Buffett replied that he would give him the job in a heartbeat but he knows that Ajit would much rather keep his current job.

 

I remember that Buffett said... if Charlie, Warren and Ajit are ever in a sinking boat – and someone  can only save one of them – swim to Ajit (Jain).

 

 

That's true - his reason was that Ajit has added the most value to Berkshire out of the 3 of them. I would disagree with him there :)

 

I agree with you that the quote is just Buffett being humble, but Ajit is also 20 years younger than Buffett. So part of Buffett reason might be because Ajit has a longer time period to impact the results at Berkshire.

 

He was also prepping shareholders, because Ajit was/is on the shortlist to take over.  He also praised David Sokol in the past in similar ways, as well as Tony Nicely.  That way, when the time came, shareholders would understand his choice.  With Tony aging, Sokol gone, I can't see anyone else at Berkshire being the first choice now.  He would be great!  Cheers!

[Guest Dazel]

 

 

Bill Gates will take over...how do you like that prediction....he has everything at stake as Berkshire and his own holdings will be the largest charitable organization on the planet...Buffett is so smart he likely planned this with his contribution to Gates.

 

Ajit of course will have an enormous role in running all the insurance divisions...Gates will over see capital allocation...Berkshire will continue to be the powerhouse it is.

Gates is no Buffett but I am speculating Gates had something to do with the large IBM purchase. Is there anyone better qualified?

 

 

Dazel.

[Parsad]

 

 

Bill Gates will take over...how do you like that prediction....he has everything at stake as Berkshire and his own holdings will be the largest charitable organization on the planet...Buffett is so smart he likely planned this with his contribution to Gates.

 

Ajit of course will have an enormous role in running all the insurance divisions...Gates will over see capital allocation...Berkshire will continue to be the powerhouse it is.

Gates is no Buffett but I am speculating Gates had something to do with the large IBM purchase. Is there anyone better qualified?

 

 

Dazel.

 

I don't think Berkshire shareholders would have a problem with that either.  Also, you won't get any dissension from management about who takes over as CEO as well.  I have a hard time seeing Gates accepting that responsibility though, as he is so busy with his foundation.  Gates would have made a more appropriate Chairman than Howard Buffett.  Cheers!

[Guest Dazel]

 

 

Sanjeev,

 

 

Obviously just throwing it out there...Buffett has commented "Gates could do my job but I could not do his".....

Gates has become a very astute investor...he was a 10% owner of CN way early and Buffett has commented that he was late to the railroad story....I would bet they had discussions...I think Gates quite likes capital management and he is already doing it for his foundation...he would still keeping  the same job as his foundation owns Berkshire Hathaway...

 

Dazel.

[ExpectedValue]

 

 

Sanjeev,

 

 

Obviously just throwing it out there...Buffett has commented "Gates could do my job but I could not do his".....

Gates has become a very astute investor...he was a 10% owner of CN way early and Buffett has commented that he was late to the railroad story....I would bet they had discussions...I think Gates quite likes capital management and he is already doing it for his foundation...he would still keeping  the same job as his foundation owns Berkshire Hathaway...

 

Dazel.

 

I don't think you should attribute CN to Gates, that's more likely a Michael Larson of Cascade pick.

[Mephistopheles]

 

 

Sanjeev,

 

 

Obviously just throwing it out there...Buffett has commented "Gates could do my job but I could not do his".....

Gates has become a very astute investor...he was a 10% owner of CN way early and Buffett has commented that he was late to the railroad story....I would bet they had discussions...I think Gates quite likes capital management and he is already doing it for his foundation...he would still keeping  the same job as his foundation owns Berkshire Hathaway...

 

Dazel.

 

But didn't Gates quit his day to day duties in order to focus on the foundation? It's hard to see him being CEO of Berkshire then, which is a full time job. But then again, if he is a great capital allocator now, the job might not require him to do much else than what he already does - tons of reading.

[Greg]

“I’ve got a commitment to stay involved with Berkshire as a lifelong thing,” “We always have to think about what might happen and make sure Berkshire is not just great now, but forever.” -Bill Gates, 2009

 

I think that's what Bill Gates will do, but not be CEO.

[Parsad]

“I’ve got a commitment to stay involved with Berkshire as a lifelong thing,” “We always have to think about what might happen and make sure Berkshire is not just great now, but forever.” -Bill Gates, 2009

 

I think that's what Bill Gates will do, but not be CEO.

 

I think Buffett should make Gates the Chairman and Vice-chairman for Howard Buffett, when he and Charlie are gone.  I think that would give more comfort to shareholders and management.  Cheers!

[Eddie Willers]

I'm with Dazel.  It's going to be Gates. 

 

Jain would be excellent, (Everything from here on in is speculation)  he probably doesn't want to leave NYC.  I'm sure he would willing do the CEO job if he had to, but I think he'd rather keep his current job.   

 

It's not hard to image Warren telling Bill, I'll give you everything but you have to run BRK after I'm gone.  Gates is the person that Buffet admires most.  Warren once said "he's the smartest guy I know".  They are like father and son.  Melinda can run the foundation exceptionally well - she's razor sharp too. 

 

Imagine Bill Gates and with all his intelligence and competitive drive at the helm of Berkshire.  I think we'll do just find for another 25 years.

 

Best regards,

 

Eddie

 

 

 

[Zorrofan]

“I’ve got a commitment to stay involved with Berkshire as a lifelong thing,” “We always have to think about what might happen and make sure Berkshire is not just great now, but forever.” -Bill Gates, 2009

 

I think that's what Bill Gates will do, but not be CEO.

 

I think Buffett should make Gates the Chairman and Vice-chairman for Howard Buffett, when he and Charlie are gone.  I think that would give more comfort to shareholders and management.  Cheers!

 

I agree Sanj - Gates may or may not partcipate in the more hands-on day-to-day operations of BRK but he could help ensure the "corporate culture" WEB has built remains.......

 

cheers

Zorro

[Palantir]

I doubt it will be Jain. Buffett is entrusting his baby, and I'm guessing intangibles will play a large role in whom he feels comfortable entrusting BRK with. I feel Jain being a foreign, "quant" will get stereotyped into that role, even if it is unconsciously. Furthermore, he lives in Jersey, and I don't see an old Indian guy moving to Omaha.

 

On the other hand, a bright, young, talented, white, midwestern insurance executive internal to BRK? I nominate Mr Tad Montross.

[nkp007]

I doubt it will be Jain. Buffett is entrusting his baby, and I'm guessing intangibles will play a large role in whom he feels comfortable entrusting BRK with. I feel Jain being a foreign, "quant" will get stereotyped into that role, even if it is unconsciously. Furthermore, he lives in Jersey, and I don't see an old Indian guy moving to Omaha.

 

On the other hand, a bright, young, talented, white, midwestern insurance executive internal to BRK? I nominate Mr Tad Montross.

 

What?

[Guest Dazel]

 

Expected value,

 

 

Buffett explained in the past Gates case for the fact that even if the railroad business stayed at the same demand track was being torn up daily accross the country...supply would fall...this is why he was " first " into the railroad business...

I did not follow stupidly....But Buffett did with his largest purchase ever!

 

Gates saw Microsoft growth was over...he has sold billions and billions worth of stock...he could not do that as an operator. Berkshire is a never ending growth story because it can pick any industry...their now in the teck world with the biggest stock purchase of Buffett' career in IBM... $11b cost and growing...

And there is no way Gates did not have some involvement.

 

Lastly, Buffett's greatest quality is his salesmanship...why do you think his managers never quit..we know they do not need the money! If he asked Gates to do it...he would...that is the power of Warren Buffett. It is his life's work...his last sales pitch will be to Gates...unless he is still running Berkshire at 95 or 100 and Gates gets too old! That is entirely possible!

 

Dazel.

[redskin]

My guess would be Brad Kinstler from See's Candy.

[redskin]

My guess would be Brad Kinstler from See's Candy.

 

http://management.fortune.cnn.com/2012/08/22/sees-candies-buffett-berkshire/

 

Kinstler began his career at Cornhusker Casualty, an Omaha insurance company Berkshire opened in 1970. In 1991 he went to run Cypress Insurance in San Mateo, Calif., for nine years before moving on to Fechheimer Brothers, a Berkshire-owned, Cincinnati-based uniform maker. In 2005, Buffett and Munger tapped him to move back to California and take over See's. Kinstler says he knew little about the business, but jokes, "As soon as I found out I get free candy ..."

[Mephistopheles]

I doubt it will be Jain. Buffett is entrusting his baby, and I'm guessing intangibles will play a large role in whom he feels comfortable entrusting BRK with. I feel Jain being a foreign, "quant" will get stereotyped into that role, even if it is unconsciously. Furthermore, he lives in Jersey, and I don't see an old Indian guy moving to Omaha.

 

On the other hand, a bright, young, talented, white, midwestern insurance executive internal to BRK? I nominate Mr Tad Montross.

 

What?

 

+1