Warren Buffett will leave, as expected, as director of Berkshire Hathaway at the end of December, but wants to immediately retain “a significant part” of his shares in the conglomerate, he indicated in a letter to shareholders, released this Monday, 10.
This way, you maintain control of the group.
At the age of 95, Buffett owned at the end of October 38% of the so-called type A shares, which weigh 10,000 times more than the most numerous type B shares, which gives him 30% of voting rights and makes him Berkshire Hathaway’s most influential shareholder.
In his letter, Buffett says he wants to hold the shares “until Berkshire shareholders are comfortable” with Greg Abel, who will be CEO starting January 1.
Some investors are concerned about the departure of Buffett, considered responsible for the group’s rise for decades, thanks to his decisions.
The person also known as the ‘Oracle of Omaha’, in the State of Nebraska, said that he and his partner Charlie Munger, who passed away in 2023, had “long ago” developed this confidence in Greg Abel’s ability to manage Berkshire Hathway.
“My kids already support Greg 100%,” he added, “as do the Berkshire directors.”
Two of Warren Buffett’s three sons sit on the board and all own shares through their own foundation.
An accountant by training, Greg Abel joined the group in 1999, due to Berkshire Hathaway’s purchase of MidAmerican Energy, where he worked.
Buffet had designated this Canadian as his successor in May 2021, but without advancing any date for that purpose.
In his letter, the billionaire who transformed a former small textile company into a giant of US capitalism explains that he will no longer participate in the famous general shareholders’ meeting, which brings thousands of people to Nebraska.