Buffett Set to Hand Berkshire Baton to Abel, Who Has a Tough Act to Follow
Greg Abel becomes Berkshire CEO Jan 1 after Buffett's 60-year reign.
Insights:
Warren Buffettwarren buffett has embodied Berkshire Hathaway for six decades, building a mighty conglomerate with a bevy of shareholder fans and making himself arguably the world's most revered investor. As he prepares to pass the torch to Vice Chairman Greg Abelgreg abel, the CEO-designate for 4-1/2 years, investors face the reality that Buffett's aura, in part reflected in Berkshire's stock price, will fade.
The change is likely to usher in more hands-on leadership from the top over Berkshire's dozens of businesses. Some investors may demand that Berkshire follow a more traditional corporate path, such as by paying dividends. Abel, 63, will become CEO on Jan. 1, and have one of the toughest acts to follow in corporate history. Buffett, 95, who has led Berkshire since 1965, will remain chairman.
