Will Berkshire Hathaway investors panic when Warren Buffet passes away?

  • Munger’s recent passing, who served as Berkshire’s vice chairman since 1978, signifies the end of an era for the company
  • Given his age of 93, Buffett’s eventual passing could potentially have a large impact on Berkshire’s stock price.

Few companies are as closely tied to their leaders as Berkshire is to Warren Buffett and was to Charlie Munger.

Munger’s recent passing, who served as Berkshire’s vice chairman since 1978, signifies the end of an era for the company. While Munger’s role was significant, Buffett’s influence on the company is even more substantial. Given his age of 93, Buffett’s eventual passing could potentially have a large impact on Berkshire’s stock price. Investors may be spooked or optimistic about Berkshires possible future. The cult of personality and reverence for billionaires among the investing class suggests that the impact would be negative. But who knows?

In a recent letter, Buffett asserted that Berkshire is “built to last” and will continue to thrive under capable leadership, likely from Greg Abel. Currently the CEO of Berkshire Hathaway Energy and vice-chairman of non-insurance operations, Abel is seen as a potential successor. As pondered by Reuters; will he be willing to divest underperforming or uninspiring businesses, unlike his predecessors who preferred long-term holdings, or whether Berkshire might consider paying its first dividend since 1967?

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