Much has been made of who will replace him once the octogenerian finally departs. In October, the company announced 39 year-old hedge fund manager Todd Combs would eventually replace Buffett as its chief investment officer. But certainly no one could replicate Buffett's investing success going forward, so Berkshire is doomed, right?
Not necessarily. Because Buffett likes to own entire companies, he has grown Berkshire into a diversified holding company of more than 50 businesses. Berkshire is so large that each additional acquisition has less and less impact on Berkshire's bottom line.
It is a Zacks No. Rank (Hold) stock.
Charles Schwab (SCHW)Charles Schwab founded his company in San Francisco in 1971. In 1975, he began offering discount brokerage, and the rest is history. Chuck already stepped down as CEO in October 2008 but remains chairman of the Board. Although new CEO Walt Bettinger has some big shoes to fill, is it that difficult to picture the company surviving without its founder? Not for me. The company has thrived, and will continue to thrive, because of its low-cost business model. It is a Zacks No. 3 Rank (Hold) stock. Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.
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