Author Topic: Buffett's successor - Bill Gates?  (Read 3601 times)

spark411

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Buffett's successor - Bill Gates?
« on: September 17, 2018, 09:49:05 AM »
It seems like Buffett's successor will be Bill Gates.   Here are some reasons:

1.  Bill Gates is coming on TV together with Buffett when speaking about Berkshire.   
2.  Bill Gates' foundation owns a big % of Berkshire shares (much of which comes from Buffett).
3.  Bill Gates is young.
4.  Bill Gates is a combination of Buffett and Munger.

Curious what other people think of this.


rolling

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Re: Buffett's successor - Bill Gates?
« Reply #1 on: September 17, 2018, 10:08:13 AM »
It seems like Buffett's successor will be Bill Gates.   Here are some reasons:

1.  Bill Gates is coming on TV together with Buffett when speaking about Berkshire.   
2.  Bill Gates' foundation owns a big % of Berkshire shares (much of which comes from Buffett).
3.  Bill Gates is young.
4.  Bill Gates is a combination of Buffett and Munger.

Curious what other people think of this.
They have already stated: Abel or Ajit.
My usual portfolio: Highly concentrated (up to 3 or 4 positions) in smallcaps and microcaps.

nickenumbers

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Re: Buffett's successor - Bill Gates?
« Reply #2 on: September 17, 2018, 10:11:10 AM »
Why would Bill Gates want to perform the role?  What would his motivation be?

It is not adding to Bill's Wealth [he has enough], and it is not computers and software [some of his favorite subjects.].

I think Bill is a super guy, and he could totally do very well at the task, but I don't think running BRK on a week to week basis would motivate Bill.


Bill seems to be more interested in educating and advancing public health, emerging countries, etc.


My wild ass guess- I think Ajit Jain and Greg Abel [maybe with Todd and Ted] are going to be answering questions at the BRK annual SH meetings in the next 10 years.  Bill Gates will still be in the audience.


We are all in the land of the blind on this one, me included.
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

longlake95

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Re: Buffett's successor - Bill Gates?
« Reply #3 on: September 17, 2018, 10:23:40 AM »
Probably as Chairman. Which I think is a good move.


longinvestor

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Re: Buffett's successor - Bill Gates?
« Reply #4 on: September 17, 2018, 10:36:21 AM »
It seems like Buffett's successor will be Bill Gates.   Here are some reasons:

1.  Bill Gates is coming on TV together with Buffett when speaking about Berkshire.   
2.  Bill Gates' foundation owns a big % of Berkshire shares (much of which comes from Buffett).
3.  Bill Gates is young.
4.  Bill Gates is a combination of Buffett and Munger.

Curious what other people think of this.
They have already stated: Abel or Ajit.

They both are Vice Chairmen.

My speculation: Now and later. There will be a different Chairman & CEO whose only job will be to allocate capital. Abel and Jain will completely unburden the CEO from anything operational.
« Last Edit: September 17, 2018, 10:38:08 AM by longinvestor »

globalfinancepartners

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Re: Buffett's successor - Bill Gates?
« Reply #5 on: September 17, 2018, 10:41:20 AM »
It's been communicated pretty clearly.  Howard Buffett as Non-executive Chairman (consider this a done deal).  Greg Abel as CEO, possibly with Ajit running insurance, Ajit available if something happens before Greg gets the job (Ajit doesn't want the CEO job, but would take it if he needed to).  Bill Gates as lead independent director.

Greg Abel as the next CEO of Berkshire, at least the non-insurance businesses is basically a done deal.

(by the way, obviously less good than Buffett in many many ways - but what a rockstar group (Howard excepted))

John Hjorth

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Re: Buffett's successor - Bill Gates?
« Reply #6 on: September 17, 2018, 11:15:11 AM »
My perception of what has been communicated is like globalfinancepartners. Because Mr. Jain is not totally physically well, the fill of the CEO position is a given as much as it can be.
”In the race of excellence … there is no finish line.”
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Mephistopheles

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Re: Buffett's successor - Bill Gates?
« Reply #7 on: September 17, 2018, 01:18:14 PM »
John Hjorth, why is Ajit Jain not physically well?

Anyway, I don't think Gates will be CEO. He left MSFT so he can spend full time at the foundation so it wouldn't make much sense.

I also don't think it's Jain or Abel. Just because they're on the board doesn't mean they will be CEO.

As longinvestor stated, I too think it will be someone who won't have to deal with anything operational. Think about it, Buffett spends 0 time on operations and he's the greatest capital allocator ever. Why give someone the CEO job now who will have to spend x % of their time on operations and thus less than 100% on capital allocation?

Both Jain and Abel are experts in their respective industries, so why pull them away to run the rest of Berkshire. Better to give the gig to someone who does capital allocation for a living, someone like Ted and Todd.

-It's their full time job right now anyway.
-They have been involved in various acquisition roles (PCP for Todd, Detlev for Ted).
-They're young as opposed to Jain who is nearing 70

It preserves the current set up - the chief capital allocator on one side and the operations on the other side. It doesn't mix up the two. The capital allocator can spend all of his time reading. No need for dividing time or for a management shake up at BH Energy which is poised to spend like $100 billion on capex in the coming decade - better to have Greg Abel focus on that. Of course better to keep Ajit focused on his insurance expertise.

I also think it's easier to have the chief capital allocator be the chief investment officer so they can run all big investment opportunities through a single lens instead of having 2 parties compete for capital. Keeps things much smoother and is how Buffett operated all these years.

Abel and Jain are the 2 most powerful people at Berkshire next to Buffett, so it makes sense they get their place on the board to keep the new CEO(s) in check.

I've said this before. Am willing to bet a small $ amount with anyone that it will be Todd, Ted or a combination of the two.

John Hjorth

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Re: Buffett's successor - Bill Gates?
« Reply #8 on: September 17, 2018, 02:44:52 PM »
John Hjorth, why is Ajit Jain not physically well?

I don't know why. But I know that it would serve you well to read this.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

spark411

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Re: Buffett's successor - Bill Gates?
« Reply #9 on: September 17, 2018, 02:52:53 PM »
Sorry-I did not mean CEO.   I meant as Chairman.    Howard Buffett is non-executive Chairman, Bill Gates Chairman, and Greg Abel of Ajit Jain as CEO.