NEW YORK — «Lhe does all the work and I get the applause. That’s fine for now.” Last weekend, at the Berkshire Hathaway annual convention, in front of 17,000 investor-fans crammed into the largest sports arena in Nebraska, Warren Buffett crowned in his own way – with a joke that combines irony and concreteness – the future “oracle of Omaha”: Greg Abel.
Sixty years old, zero charisma, a career that began as an accountantGreg does not seem the ideal figure to take the reins of a conglomerate owned by investor-fans, conquered by Warren’s magnetism, as well as abundant profits.
Ma Abel has other qualities that make him irreplaceable: he has been at the helm of almost all the group’s activities for five years (the only exception being Geico insurance) ranging from the Bnsf railway network to air transport (NetJets) to food (Dairy Queen), with significant stakes in Apple, Coca Cola, Bank of America and American Express and large investments both in renewable energies (solar and wind) as in the traditional ones (Chevron and Occidental Petroleum).
A $710 billion conglomerate of dollars made up of many different companies that, says Buffett, «Greg now knows much better than me. For the future, I don’t have a plan B: if something were to happen to him, I would tell our board that we have a big problem».
A full-blown coronation which, in reality, is a confirmation: at the convention two years ago, in fact, Charlie Munger, vice president of Berkshire and Buffett’s right hand man, had already let the news slip, which was to remain confidential.
The then 90-year-old, but always lively Buffett had shown sympathy for the oversight of his senior partner: Munger was then 97 years old. After that announcement nothing has changed: Greg continued to work behind the scenesinvisible even during the 2022 convention: partly out of natural reluctance to appear in public, partly to leave the whole scene to the two great old men.
In addition to his expertise and loyalty, Buffett appreciated Abel’s discretion but this year, faced with increasingly restless shareholders who fear for the future of a group led by a 92-year-old financier and another almost centenary, he has also decided to bring his successor to the stage who, although somewhat awkward, he responded promptly and competently to a barrage of questions.
So the road is paved for Greg. With a single, small stain: the future oracle, which already has approximately $100 million in Berkshire stock assets (as a manager he earns $19 a year), last March 22, to demonstrate his commitment to the company he will lead (for Buffett, those who believe in Berkshire should invest the bulk of their assets there), he bought other securities for 25 million. A lot but little compared to the 870 million dollars that Abel collected by selling his stake in Berkshire Energy, the energy arm of the group that he managed and grew for many years.
Perhaps Abel is keeping spare cartridges to shoot when he really takes the reins of the group which for now continues to be led by a Buffett, who appeared in Omaha very lucid, prudent — told his fans not to ask for miracles, as the slowdown in the economy will weigh on Berkshire profits — and always very popular.
The ten thousand puppets with Buffett’s and Munger’s votes produced by his toy company, Jazwares, sold for 10 dollars, sold like hot cakes. Now, anyone who wants them can buy them on eBay for $500 each.