Business Opinion USA

Warren Buffett has chosen his successor, without telling him

(Reuters) – On Monday Warren Buffett has again declined to disclose the identity of his successor as head of Berkshire Hathaway.

In his annual letter to shareholders Saturday, the most famous investor of the United States, aged 81 years, said the board of directors of Berkshire had identified a person who may resume the general direction after his eventual departure.

But the letter does not mention the identity of that person and, in an interview with CNBC Monday, Warren Buffett has refused to disclose.

The public will know who the next leaders of many other large companies, he said, adding that to acquire a “crown prince” had disadvantages.

He simply stated that the board of Berkshire had in mind the name of his successor for several years but that the person did not know.

He added it was likely that this potential heir is one of the leaders of dozens of companies which Berkshire owns or shareholder.

Scrutinized for several years, the succession process of Warren Buffett was disrupted last year by the unexpected departure of David Sokol, one of his top lieutenants, a time considered favorite to head the group.

David Sokol has indeed been forced to resign after the scandal caused by some of his stock transactions.

On Monday Warren Buffett said that Berkshire had this issue last year spent more than $ 1.4 million in legal fees related to this issue but that the stock market authorities had not contacted in this regard since the summer.

At the head of the group for 47 years, Buffett has transformed the company into a conglomerate that employs more than 270,000 people worldwide and whose activities extend rail to generate electricity through ice cream and underwear.

In the interview with CNBC on Monday, investors have realized revealed in late 2011 in Europe one of the largest investments of his career.

He added that he invested in eight European values, amounting to 175 million euros in each case. The selected companies were then dumped after suffering from the crisis of sovereign debt. It has not disclosed the names of the companies concerned.

He also explained that real estate was the only asset class that he preferred actions.

“This is a very attractive asset class right now,” he said, adding he would like to acquire thousands of homes taking advantage of low interest rates if they had 30 years of an effective method to manage such a portfolio.

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