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Canadian Value
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Buffett Author Alice Schroeder Discussing the Berkshire Succession Plan

May 06, 2013 | About:

Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) has $10 or more billion in cash flow that has to be allocated every year as well as an investment portfolio pushing $100 billion.

Alice Schroeder makes the point that Berkshire can't just go on auto-pilot after Buffett departs. The CEO job obviously is not going to be an easy one.

With Munger almost 90 years old and Warren 83, Schroeder thinks the shareholders deserve to know who the successor CEO will be.

Schroeder thinks the Buffett "premium" in the stock price is gone and at 1.2 times book value the stock is actually inexpensive.

The one key point that Schroeder took from the meeting was Buffett's comment about when interest rates start rising it will be the "shot heard round the world." Schroeder thought Buffett was pretty somber about what the fallout from that might be.

About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 2.3/5 (3 votes)

Comments

kseppanen
Kseppanen - 3 years ago
I hope that BRK considers the possibility in succession plans that the Buffett successor may only stay in the job for a short time (death / leave). The internets chat on this subject appears to assume that any successor will be around for a long time.

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