Published: Thu, January 11, 2018
Markets | By Rosalie Gross

Buffett's Berkshire Hathaway Furthers Succession Plan

Buffett's Berkshire Hathaway Furthers Succession Plan

Warren Buffett has named two Vice Chairmen for the Board of Directors at Berkshire Hathaway, which could provide a clue for the next person to run his corporation.

In a new development over who might eventually take over for Buffett, the Omaha-based conglomerate announced on Wednesday the appointment of Gregory Abel, 55, as vice chairman of noninsurance businesses, and Ajit Jain, 66, as vice chairman of insurance operations.

Buffett and Charles Munger, Vice Chairman of Berkshire Hathaway will continue in their existing positions.

Buffett said the move isn't due to any looming concerns, saying he's in "remarkably good health". With that, Berkshire gets points for doing succession right.

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Buffett's comments come a day after JPMorgan & Chase Chief Executive Jamie Dimon said he regrets calling bitcoin a fraud, referring to comments he made at a banking conference in September.

"Our directors believe that our future CEOs should come from internal candidates whom the Berkshire board has grown to know well", he said. "They both have Berkshire in their blood".

Mr. Abel, chief executive of Berkshire Hathaway Energy Co., also has been named vice chairman of the company's non-insurance business operations. Mr. Munger dropped a hint that was the case in a letter to shareholders two years ago, but the company hasn't officially confirmed that they are in line for the top job. Buffett's primary role as CEO is to decide where to invest Berkshire's cash - either in its own companies, acquisitions or outside investments - and manage the executives who lead the subsidiaries.

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