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The $870 billion Berkshire Hathaway's succession plans took center stage Saturday as thousands of shareholders attended the company's annual meeting in Omaha.
Investors asked Berkshire Chairman Warren Buffett, 93, what would change if Berkshire Vice Chairman Greg Abel, 61, who has been with the company for 25 years, takes over after Buffett. Abel was named Buffett's successor in 2021.
Buffett said Abel was already “responsible for literally everything except insurance” and had “the same feel” as Buffett when it came to “judging the attractiveness of companies and making capital decisions and things like that.”
Related: Warren Buffett's annual letter reveals the secrets and lessons behind Berkshire Hathaway
Greg Abel, vice chairman of non-insurance business at Berkshire Hathaway. Photographer: Daniel Acker/Bloomberg via Getty Images
For the first time, Buffett also indicated that he would like Abel to retain control of the company's $335.9 billion investment portfolio as CEO when the time comes.
“I think the responsibility should be entirely on Greg,” Buffet said, explaining that while he “used to think differently about how responsibility should be handled,” having “200 people around him just doesn’t work have each managing a billion.” .”
The previous plan communicated by Buffett was that after Abel was appointed CEO, Berkshire investment managers Ted Weschler and Todd Combs would take over the investments. Combs is also CEO of Geico.
While addressing investment controls at the meeting, Abel assured shareholders that Berkshire's investment principles “will continue to outlive Warren.”
Related: Warren Buffett's charitable donations top $51 billion after latest donation
Berkshire's culture “will not change,” Abel said at the shareholder meeting.
Buffett hasn't said or suggested anything about resigning. This is his 60th shareholder meeting since he took over Berkshire in 1965 and the first since the death of deputy chairman Charlie Munger in November at the age of 99.
Buffett's February annual letter was partly a tribute to Munger.
Berkshire's first-quarter results, released ahead of the meeting, showed the company's operating profit rose 39% to a record $11.22 billion.
Related: 'I'm smarter now… but also poorer': Warren Buffett says Berkshire Hathaway gave up its entire stake in Paramount at a huge loss
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