Greg Abel faces a difficult task leading Berkshire Hathaway after Pavite

Since 40,000 shareholders in Berkshire Hathaway had reached their feet in Umaha on Saturday in a permanent applause for Varne Buffett, Greg Abel was among those who commend the profession of the world’s greatest investor.

By the time they meet for the annual meeting for the next year, their eyes will be fixed on ABEL, behind Buffett, which Pavite chose in the financial power spent six decades in construction.

The 62 -year -old, who has appeared through the work of the facilities in Berkshire, will be examined in a way that Buffett has largely avoided in recent years, as investors have confidence in the revenues that have overcome the S&P 500 index with more than 5.4 million percent over the past sixties.

Tasks for Abel It is two parts: preserving the culture that Pavit and his late vice -president Charlie Monger have instilled in BerkshireWith the set of the set of the group’s standard at work.

It will take years of investors to find out how ABEL is accumulated as a dedicated capital, whether he has the same talent in determining the place of moving billions of dollars that flow to Umma every month, and if he can approach Buffett’s returns.

“I think the Warren Buffett replacement tape is impossible,” said Christopher Bloomstran, head of the investment group and Percshire for the shareholder in Berkshire, Simber Augustos. “Greg will be under a microscope, not many of the shareholders base but from the public eye.”

Some of the most powerful USman Puffetti greeted him after his announcement on Saturday, a sign of his attractiveness in Wall Street.

Jimmy Damon, CEO of JPMorgan Chase, told the Financial Times that Pavite “represented everything that is good in American capitalism and America itself,” while the President of Goldman Sachs David Solomon said that the investor “affected a generation of leaders who have benefited from his unusual feeling and long -term approach.”

However, this increase is a sign of the challenge facing Abel.

Berkshire has struggled for years to determine the appropriate acquisition targets. Puffett said that he and his team have already chosen anything worth buying, but that Extension assessments.

This sometimes led to the loss of the shareholders who saw Berkshire from the acquisitions of other offers or sat on the margin. However, Buffett can be justified if it is a wave of acquisitions used in the wake of the epidemic, in which the acquisition companies paid high prices, a decrease under the weight of debt and the slow economy.

There is also a risk that parts of Berkshire themselves target acquisitions. But high -vote Buffett shares, in addition to the massive Berkshire size, has long wandered by activists and the private stock industry, which may look forward to capturing any number of hundreds of company companies. The fact that the renovation fund that supervises the shares of Buffett after his death will slowly donate them to charities means that ABEL is unlikely to face threats from external investors anytime soon.

ABL will have a huge fire force when it takes control: Berkshire sits at nearly $ 350 billion of cash after net sales of about $ 175 billion in stocks over 10 quarters.

On Saturday, Pavite stated that Berkshire was often flowing with opportunities during sales. With the unrest in the American economy, these people can soon offer themselves for ABEL.

The question is whether it will be more aggressive in searching for goals or will be more connected to the Wall Street deals, which Pavit has greatly avoided.

Puffett’s reputation has been strengthened through great calls such as sitting in the late 1990s, so the massacre avoids when the bubble exploded, and recently reduced the company’s shares holders, partly on the basis of evaluation. This raised questions that raised the shareholders until recently, when the market correction and economic instability made the decision seemed.

At the appropriate time, Pavit said at the Saturday meeting, “We will be bombed with offers that we will be happy because we have the money.” He added: “It will be more fun if this happens tomorrow, but it is very unlikely that this will happen tomorrow.”

Whether ABEL will be extended with the same good intentions as his high predecessor, and whether he can hold all Berkshire activities, he still must be seen. While he had an effective role in The number of large acquisitionsIncluding many energy companies, he had no supervision of the company’s shares portfolio of $ 264 billion – one of the crown prince’s jewels in Berkshire.

“He is unknown as an investor,” said Bill Stone, chief investment official in Berkshire, adding that his confidence in Berkshire was based on his belief in Bouvit as a reliable host of investor money.

Larry Keningham, Professor at George Washington University and author of his book Berkshire is behind PaviteAbel’s commitment to Berkshire’s investment philosophy does not mean that there will be no changes under his leadership.

He said: “ABEL is an operating man, while Buffett adopts a famous approach, the managers trust.”

Caningham said that the CEO more than the operational aspect can achieve benefits in helping Berkshire companies to share ideas and experiences, but it came with a risk: Will the companies seller be keen to obtain them by Berkshire?

“Abel was clear that he was committed to the principle of autonomy – he would not interfere,” Koningham said. “But the Buffett delegation made managers want to raise his confidence. ABEL will have to develop that great power.”

Few expects that Abel will take Pavite’s place in the investment company, or to develop the cultural treasury that attracted millions of people to Pavite and his philosophy.

However, it is impossible for anyone to measure Buffett, who described him as “the most influential investor of-Isaac Newton Investment.”

Marx said: “He says when he started in the early fifties, he was able to buy dollars for 50 cents – and makes it look easy,” said Marx. “But the thing is, even if the opportunities are there, no one else did. There were not many Buffett Warren.”

Additional reports by James Fontanella Khan