Berkshire Hathaway (BRKB) Chairman Warren Buffett told 60 Minutes that he now wants his son Howard to take over as nonexecutive chairman when he steps down from the company.
Buffett apparently wants his son there to make sure the culture of Berkshire doesn’t change when he leaves or passes away. From the brief clip shown by CBS below, it sounds like Howard Buffett would not necessarily be picking stocks or takeover targets. Reportedly, Howard like the idea, as long as he can continue to farm, says Marketwatch.
“Having Howie there adds just one extra layer of protection,” Buffett said in the interview.
Buffett has made it clear that he believes children should learn to stand on their own two feet; he doesn’t think his kids should inherit his massive fortune. But this decision seems to indicate that the scars caused by the David Sokol incident — when a top Buffett lieutenant and possible successor traded stock in a company he had recommended that Berkshire buy — have not yet healed.
Buffett has chosen other investment managers to oversee Berkshire’s vast holdings of companies and stock. But he’s clearly concerned that his legacy is at risk if the people he has brought on think about short-term profits over the company’s reputation.
It’s not exactly a vote of confidence in Ted Weschler and Todd Combs, who Buffett has brought on to oversee Berkshire’s portfolio. That said, they are getting one of the best jobs in the world. They probably won’t complain. And so far today, Berkshire investors aren’t complaining either. The stock is up about 1%.
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