Berkshire Hathaway (BRK.A) - Get Report (BRK.B) - Get Report Vice Chairman Greg Abel will be the one who succeeds Warren Buffett as head of Berkshire Hathaway when the famed value investor eventually steps down as chairman and CEO.
Berkshire Hathaway, which has been run by billionaire investor Warren Buffett for 56 years, reported first-quarter operating earnings on Saturday of $7.02 billion vs. $5.87 billion a year earlier.
Net earnings came in at $11.71 billion, or $7,638 a Class A share. Earnings were $5.09 a Class B share compared with a loss of $20.44 a share a year earlier. Revenue came in at $64.6 billion.
While not formally announced, Berkshire Vice Chairman Charlie Munger inadvertently revealed that Abel would succeed Chairman and CEO Buffett.
“Greg will keep the culture,” Munger said in response to a question about whether the company would eventually be too complex to manage.
That was taken as a clue to some Berkshire watchers, who have been wondering about succession plans at the conglomerate once Buffett, 90 year old, is no longer in charge.
Abel currently runs all of Berkshire’s non-insurance operations. CNBC later confirmed that Abel will indeed take over when the so-called Oracle of Omaha retires.
Berkshire Hathaway's virtual meeting on Saturday held few surprises, including Buffett’s resistance about addressing concerns about climate change and work force diversity - something other companies have been revisiting at the request of investors.
Berkshire Hathaway has opposed two shareholder proposals that have asked its board to publish annual reports on how it is addressing environmental and diversity and inclusion issues, as well as corporate governance.
TheStreet's founder Jim Cramer has been among those taking issue with that sentiment, stating earlier this month that the belief that business and politics don't mix is outdated.
"I think that people who work at companies no longer care about that dictum," he said. "You don't check your emotions at the door and you no longer check your views at the door."
At last check, Class B shares of Berkshire Hathaway were up 1.75% at $279.43.