Warren Buffett will provide a visible clue on his succession strategy at annual meeting
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The Berkshire Hathaway (BRK-A, BRK-B) shareholder meeting on Saturday, which will stream live exclusively on Yahoo Finance, will look different from any that came before it. Due to COVID-19 precautions, CEO Warren Buffett and Vice Chairman Charlie Munger will lead the event in Los Angeles, rather than Omaha; and they'll do so in a hotel conference room, rather than a giant arena.
Viewers around the globe will notice another novel feature of this year's event: four people on stage.
Vice Chairmen Gregory Abel and Ajit Jain will join Buffett and Munger for the gathering's traditional marathon Q&A, renewing intrigue over the company's succession plans as shareholders meet for the first time since Buffett turned 90 years old.
The presence of Abel and Jain offers a symbolic look toward the company's future and a chance for shareholders to interact with the next generation of leaders, "Buffettologists" told Yahoo Finance. Plus, it provides a preview of what Woodstock for Capitalism might look like after it loses its headliner, they said.
"Opening up leadership to four people as opposed to two — that’s a pretty visible commitment to presenting a strategy of succession," says Laura Rittenhouse, corporate consultant and author of “Buffett's Bites: The Essential Investor's Guide to Warren Buffett's Shareholder Letters.”
"Ajit and Greg are the key potential successors at Berkshire," she adds. "That they’re going to share the stage with Warren and Charlie reveals Warren’s commitment to ensuring a smooth succession. It's a way for shareholders to get to know more about these two potential successors."
At last year's shareholder meeting, Abel replaced Munger on stage alongside Buffett. Though the pandemic prompted the swap, it nevertheless caught the eye of some observers who wondered whether the presence of Abel made him a front-runner to become CEO. (In his shareholder letter last February, Buffett had announced that both Abel and Jain would attend the meeting, but later changed plans due to COVID-19.)
'100% prepared for our departure'
In 2018, Buffett added senior executives Abel and Jain to its Board of Directors, both with the title of vice chairman, fueling speculation that they were first in line to succeed him. The 59-year-old Abel rose through the company’s energy division, while 69-year-old Jain has overseen the company’s insurance operations.
Another potential successor, Todd Combs, 50, took over as the CEO of Berkshire Hathaway-owned car insurer Geico last January, after serving as an investment manager at the company for a decade. Observers also point to current portfolio manager Ted Weschler, 58, who arrived at the company in 2011, not long after buying lunch with Buffett at auction two straight years for a combined $5.2 million.