What Charlie Munger’s death means for Warren Buffett and Berkshire Hathaway

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  • Charlie Munger, Berkshire Hathaway’s vice chairman and Warren Buffett’s second-in-command, has died at the age of 99.
  • with Munger’s deathGreg Abel may have a close working relationship with Buffett.
  • Buffett named Abel as his heir apparent in 2018.

Charlie Munger, best known as Warren Buffett’s right-hand man, died on Tuesday at the age of 99 – leaving him as Berkshire Hathaway’s vice chairman.

Munger, 93, served as Buffett’s second-in-command for years when he controlled Berkshire Hathaway, a fortune of about $2.3 billion.

In the year In 2006, Buffett once hoped that Munger would take over the conglomerate, but later admitted that a small person was needed to take care of the billion-dollar business in the future.

What will happen now?

Buffett announced in 2021 Greg AbelThe 61-year-old vice chairman of insurance operations at Berkshire, as his successor.

Abel, a Canadian businessman and CEO of Berkshire Hathaway Energy, is a longtime company loyalist who is well-regarded by his peers amid the leadership changes needed by an aging Buffett.

With Munger’s passing, Abel may have a closer working relationship with Buffett.

Munger in 2011. In 2021, Abel said he believes Berkshire will “maintain the tradition” that has made it so successful.

“Greg is sensational as a business leader, both as a thinker and as a doer. He’s also an amazing learning machine – you could argue he’s as good as Warren at learning all kinds of things.” Menger once spoke of Abel..

“There are some things that Warren is better at, and Warren knows that, and he’s going to keep throwing whatever Greg can do better, and that’s a lot,” Munger added.

Who is Greg Abel?

Abel began his career at PricewaterhouseCoopers in 1992 before joining geothermal electricity producer Calinger.

In the year In 2008, he was named CEO of Mid-American – now Berkshire Hathaway Energy – and in 2008 In 2018, he was appointed vice chairman of all Berkshire Hathaway insurance operations, the same year he confirmed his role on the conglomerate’s board of directors.

Abel His announcement as Buffett’s successor in 2018 drew a largely positive response from the industry, with one equity expert calling him a “natural successor” to Buffett who was “tailored” for the post.

Abel was considered a possible successor to Buffett for years before it was officially announced.

Why Greg Abel?

Earlier this year, as Berkshire hit historic inflation and high interest rates, five CEOs of Berkshire subsidiaries praised Buffett. Abel’s leadership Exclusive comments for Business Insider at Berkshire Hathaway’s annual conference in Omaha this May.

Pat Egan, CEO of See’s Candies, says Abel calls him first when he needs advice and rarely needs to make a second call.

“Greg is a wonderful combination of a great human being and a great intellect,” Egan told the Bee. “His ability to retain and process information is unlike anything I’ve ever seen.”

Troy Bader, CEO of Dairy Queen, praised Abel’s sharp mind and willingness to help.

“Greg is always there, very quick study, very bright, knows all aspects of our business,” Bader said. “Whenever I needed Greg, he was always there.”

Buffett’s future

Over Thanksgiving, Buffett taps Berkshire Futures And his legacy has donated nearly $900 million to his family’s foundation, according to a press release.

The billionaire said Abel and the board of directors are the right choices to lead the company forward.

“The advantage of Berkshire is that it is built to last,” Buffett wrote.

While his large stake in Berkshire helped carry on the company’s legacy for some time after his death, Buffett said that “Berkshire will soon earn the reputation it deserves.”

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