Warren Buffett, one of the most successful investors of all time, is still very powerful at 93 years old. However, he is not unaware of his eventual demise, saying “I feel good but I am very aware that I am playing extra roles.”
Like any good CEO, he was thinking about planning his succession. Greg Appel, who runs Berkshire Hathaway(NYSE:BRK), a non-insurance business operations, is set to replace Buffett as CEO when Buffett dies.
While some Berkshire investors fear the stock will be sold off that day, Buffett has a contrarian view.
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Buffett said that when he dies, he believes “the stock will go up tomorrow.”
Chris Davis, a member of Berkshire's board of directors and chief investment officer, explains that the price increase will be due to an attempt to break up conglomerates to enhance value. He believes that “every activist and investment banker will argue that in a world without Warren and Charlie, Berkshire's unconventional structure should not continue.”
Buffett has consistently been strongly opposed to breaking up Berkshire's conglomerate structure.
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If history is any guide, Berkshire's stock-picking team may have a hard time replicating Buffett's amazing track record. Todd Combs and Ted Weschler, who currently manage about 10% of Berkshire's stock portfolio and are expected to eventually manage the entire portfolio, have probably been better off investing in the market-tracking index since they joined the company.
While Buffett did not mention their performance since 2019, he did say that year that they had lagged the market slightly since joining the company a decade ago.
Even Buffett hasn't had the same success as he did in his early years, with Berkshire roughly on par with the S&P 500 over the past decade.
Regardless of how Berkshire stock performs, the eventual death of one of the world's brightest business and investing minds will come as sad news to Berkshire shareholders and investors everywhere. As with his succession plan, his timeless lessons are designed to last.
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This article Warren Buffett isn't worried about Berkshire after his death, says: 'If I die tonight, I think the stock will go up tomorrow' Originally appeared on Benzinga.com
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