Author Topic: Buffett/Berkshire - general news  (Read 467903 times)

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #270 on: April 15, 2016, 06:03:31 AM »
http://news.morningstar.com/articlenet/article.aspx?id=749007&SR=Yahoo

Montross retirement and speculation over Jain's evolving role at Berkshire.

IMO, given his mastery over "risk" across all kinds of businesses, Jain would be the only candidate to replace Munger. I can see all big deals made by others coming to Jain for the last word. Given how well it has worked for the last 50 years, having two people look at each deal makes a lot of sense. One for circle of competence and the other for assessing risk and more importantly making the decision if the price is right for risks that may happen down the road. In some ways, spreading the capital allocation across people with deep domain knowledge could be better than trying to find another prodigy who's mastered the method of learning across a swath of life. Now, there's not two of that kind. 
« Last Edit: April 15, 2016, 06:42:43 AM by longinvestor »


Kiltacular

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Re: Buffett/Berkshire - general news
« Reply #271 on: April 15, 2016, 09:33:54 AM »
http://news.morningstar.com/articlenet/article.aspx?id=749007&SR=Yahoo

Montross retirement and speculation over Jain's evolving role at Berkshire.

IMO, given his mastery over "risk" across all kinds of businesses, Jain would be the only candidate to replace Munger. I can see all big deals made by others coming to Jain for the last word. Given how well it has worked for the last 50 years, having two people look at each deal makes a lot of sense. One for circle of competence and the other for assessing risk and more importantly making the decision if the price is right for risks that may happen down the road. In some ways, spreading the capital allocation across people with deep domain knowledge could be better than trying to find another prodigy who's mastered the method of learning across a swath of life. Now, there's not two of that kind.

+1

Charlie

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longinvestor

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Re: Buffett/Berkshire - general news
« Reply #273 on: April 16, 2016, 03:54:55 PM »
http://www.gurufocus.com/news/407278/david-rolfes-lengthy-analysis-of-berkshire-hathaway


Cheers!  :)

This...

But since outstanding shares do not grow, per-share growth explodes. Per-share earnings have compounded at 28% for the past five years and 24% for the past ten years
...their 2004 commentary

.....just follow the cash. $101B since 2011.  And earnings remain understated to GAAP, as the Semper analysis had it, by about $ 5B currently. It doesn't get better than this.
« Last Edit: April 16, 2016, 07:39:03 PM by longinvestor »

Palantir

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Re: Buffett/Berkshire - general news
« Reply #274 on: April 17, 2016, 02:28:19 PM »
Surprising. Tad is pretty young by BRK standards no? I still don't think Jain will inherit the Iron Throne, I doubt a nearly 70 year old Indian guy is moving to Nebraska.
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fareastwarriors

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Re: Buffett/Berkshire - general news
« Reply #275 on: May 18, 2016, 11:50:59 AM »

Mephistopheles

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Re: Buffett/Berkshire - general news
« Reply #276 on: May 18, 2016, 12:06:00 PM »
I think the CEO job goes to Ted or Todd but probably Ted. Managing the investment portfolio and acquiring businesses are tied at the hip as one provides the source of capital for the other.

Wouldn't it be awkward if the CEO firmly believes in a certain acquisition but requires the portfolio manager to sell down shares he believes in? Obv the CEO makes the final call but it's clearly a better process if it's one person. In this case perhaps the two of them as a team.

Also capital allocation is a broad talent which can be used in both functions. Whereas say, Matt Rose and Greg Abel have very focused skills.

Furthermore we've already seen greater involvement from them, esp Ted, in operations/acquisitions. And they're young, and both work in Omaha.

gfp

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Re: Buffett/Berkshire - general news
« Reply #277 on: May 20, 2016, 05:53:07 AM »
Raiguel to succeed Montross as Gen Re CEO
Adam McNestrie

Kara Raiguel, a senior executive from Berkshire Hathaway's reinsurance division, is to replace Tad Montross as CEO of Gen Re, according to an internal memo seen by The Insurance Insider.

In the memo Berkshire Hathaway reinsurance chief Ajit Jain, who now has overall oversight of Gen Re, described Raiguel as his "secret weapon".

Raiguel, an actuary by background, has worked with Jain in the reinsurance division for 15 years, according to the memo.

Jain said that the executive had been involved in establishing Berkshire's workers' comp business in California, overseeing its expansion into the Indian reinsurance market and setting up its municipal bond insurer.

In the note Jain said discussions in recent weeks with insiders and outsiders had led him to judge that there was a feeling that Gen Re had become "less relevant".

"That concern, together with the serious headwinds that the reinsurance business is facing and will continue to face, requires us all to consider whether and what actions might be taken to best position Gen Re for the next chapter," Jain said.

He continued: "So, for the next 90 days or so, I have asked Kara to have as her first priority and chief objective to determine how best to grow Gen Re's book of business without sacrificing the underwriting discipline and integrity that has been the hallmark of the past few years, as well as how best to broaden business relationships without doing damage to the platform."

Last month The Insurance Insider revealed that Montross was to step down as Gen Re CEO.

Jain paid tribute to the executive, saying that he had done "an unbelievable job" and that his decision to step down was "the most unwelcome news".

Some observers have suggested that the decision to have Raiguel report directly to Jain - whereas Montross had reported directly to Buffett - may suggest that he is in pole position to succeed the Sage of Omaha as Berkshire group CEO.

maxthetrade

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Re: Buffett/Berkshire - general news
« Reply #278 on: May 20, 2016, 06:56:15 AM »

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #279 on: May 20, 2016, 06:58:01 AM »
I think the CEO job goes to Ted or Todd but probably Ted. Managing the investment portfolio and acquiring businesses are tied at the hip as one provides the source of capital for the other.

Wouldn't it be awkward if the CEO firmly believes in a certain acquisition but requires the portfolio manager to sell down shares he believes in? Obv the CEO makes the final call but it's clearly a better process if it's one person. In this case perhaps the two of them as a team.

Also capital allocation is a broad talent which can be used in both functions. Whereas say, Matt Rose and Greg Abel have very focused skills.

Furthermore we've already seen greater involvement from them, esp Ted, in operations/acquisitions. And they're young, and both work in Omaha.
The skill most needed to be successful in the successor job would be to attract, retain, cheerlead and assure that the leadership transition at the subsidiaries goes without too much disruption. Someone who has mastery over designing incentives would be hugelyv valuable. I don't know enough about Todd and Ted to say they fit the above. My sense is they'd be more in line to take on the entire portfolio of $120b from the $9 b