Thursday, March 31, 2011

Buffett Successor List Gets Shorter -

Buffett Successor List Gets Shorter -
"The remaining list is believed to include Matthew Rose, 51 years old, head of Berkshire's Burlington Northern Santa Fe railroad, and Ajit Jain, 55 years old, who runs Berkshire's reinsurance operations.

Both men have been singled out by Mr. Buffett in recent years for delivering strong results, and both have proven their ability to run profitable operations in which billions of dollars are at stake."

UPDATE:  So why the sudden resignation?  Seems like something might have been a bit wrong at Berkshire.  From the NY Times' Dealbook

"Reading Warren E. Buffett’s letter announcing the resignation of David Sokol from Berkshire Hathaway brings to mind a movie scene in which a police officer yells amid a wild crowd, “There is nothing to see here! Move along.”

But there is something to see, and so the policeman’s protestations do nothing.
Mr. Sokol’s departure would be significant in and of itself, but of course there are the other facts that Mr. Buffett’s letter details. In December 2010 and January 2011, Mr. Sokol bought Lubrizol stock before the announcement of Berkshire Hathaway’s takeover of the company.
Mr. Sokol’s profit on the purchases appears to be about $3.1 million."
So while it may or may not have been illegal (Buffett says no, the SEC is considering the matter according to NY Times), it sure smells rotten and gives the impression that something was improper. 

That said, I can't help but feel sorry for whoever replaces Warren Buffett.  I just do not think anyone can live up to Buffett's record.  It will be like Todd Collins replacing Jim Kelly as the Bills QB.
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