No. of Recommendations: 14
'In Berkshire's case there is the added concern of an unprecedented change in CEO. I hope Buffet is asked this question in the next AGM, I would love to hear his views as it pertains to Berkshire owned businesses and major portfolio companies.'
Surprised at that level of pessimism especially with the egos of current CEOs.
I sense WEB continues to be optimistic of our businesses, investees, float, cash optionality and has us as well and conservatively positioned for the next decade as possible. He has had an amazing ability to see the future when others may not with NICO/ GEICO in 60's/70's ,BHE in 1999, BNSF in 2009, and investees like KO, AXP, AAPL, now OXY and CVX. Criticism surrounded a lot of these decisions early on that have paid off so handsomely.
I have a lot of comfort especially in the next decade with our wholly and partially owned businesses, cash, float and future predictable earnings. Greg has been there 24 years, Ajit 37 years, T&T over 12 years and we have a very pro-owner board and culture as they all are large owners themselves. I have faith we will be just fine, resilient and follow Rule #1.
Fascinating to think if we have $50B of 'normalized earnings' with 8% growth/year that mgt (and/or investee mgt with retained earnings) will need to allocate cumulatively in the next decade as much as our current market cap!
