No. of Recommendations: 9
There isn't much new in the article. But I think this part of the article was not well thought out:
Investment managers Todd Combs and Ted Weschler, who now run about 10% of Berkshire’s $300 billion equity portfolio, could take over the whole thing. It remains to be seen which role Abel will play with the equity portfolio.
Warren said this during 2024 annual meeting when he said Greg should take over the management of the equity portfolio as well:
But I would say that if I were on that board and were making the decision, I would probably, knowing Greg, I would just leave… I would leave the capital allocation to Greg. And he understands businesses extremely well. And if you understand businesses, you understand… you understand common stocks. I mean, if you really know how business works, you are, you are an investment manager. How much you manage, maybe just your own funds or maybe other people’s [funds]. And if you really are primarily interested in getting assets under management, which is where the money is, you know, you don’t really have to understand that sort of thing.
But that’s not the case with Ted or Todd, obviously. But I think the responsibility ought to be entirely with Greg. The responsibility has been with me, and I farmed out some of it. And I used to think differently about how that would be handled, but I think the responsibility should be that of the CEO. And whatever that CEO decides may be helpful in effectuating that responsibility. That’s up to [him or her] to decide at the time they’re running the money.
