Why I believe Howard Buffett is the “ perfect” chairman for Berkshire.
Berkshire was built, and succeeded on one simple formula: it has operated at the opposite end of Wall Street’s formulaic expectations.
Berkshire is the ultimate antithesis of conglomerates fragile build-ups:
Independent subsidiaries, trust earned and based management, decentralized control, minimum leverage, cash 💰 armory, patience, and focus on integrity and accountability.
There is little need for a MBA from Harvard or Wharton when the rules are to minimize leverage, sit patiently, and only strike and buy great businesses when the right opportunity presents itself.
And strive to do so over and over again.
Berkshire does not need a “next star” ⭐️ Warren Buffett as its chairman.
It needs not to deviate from its foundation.
Greg Abel runs the operations and allocates capital. But if he derails away from Warren and Charlie’s rules, he will get fired .
That’s what Howie is there for.
Only bloodline can really be trusted to maintain the legacy that Warren built.
Wall Street be damned.
An outsider may try to implement his own approach. Re-invent a formula that has worked for 50 years.
Howie needs not to.
Berkshire was built to be anti-fragile, to benefit from systematic and periodic failure and scoop up quality assets on the cheap.
Howie and his siblings and the board will protect their father’s legacy.
Basically, Howard has one job: Fire the CEO who tries to reinvent the wheel. And his son and grandsons or grand daughters will be tasked to maintain this tradition.
Only a Buffett or a Munger is fit to chair over Berkshire. Today, 20 years from now, 100 years later.
I am sure some of us heard of the “ House of Rothschild!” What about Sam Walton’s heirs? The company is doing quite alright the last time I checked.
What about the Rockefellers?
Where are the accusations of Nepotism for these companies?
Welcome to the House of Buffett.
And that’s perfectly OK!
