Key Takeaways
- Greg Abel became CEO of Berkshire Hathaway on January 1, replacing Warren Buffett.
- In a new interview, Abel disclosed that he still speaks with Buffett “nearly every day.”
- Buffett still comes to the office every day and remains engaged in Berkshire’s operations.
Berkshire Hathaway’s new chief executive, Greg Abel, is easing into one of the “toughest” jobs in business with a direct line to the man he’s replacing: Warren Buffett.
In a new CNBC interview, Abel, 62, says he still speaks with Buffett, 95, “nearly every day.” Buffett is in the Omaha office daily, so when Abel is there too, he consults his predecessor. If Abel travels, the rhythm becomes every couple of days, as he calls to get Buffett’s latest observations and to share his own thinking.
“We’re always connecting,” Abel said on CNBC’s Squawk Box earlier this week.
Despite stepping down as CEO on January 1 after more than 60 years at the helm, Buffett hasn’t disappeared from Berkshire’s orbit. Buffett, who remains Berkshire’s chairman, is a constant presence at headquarters. The result: Abel is formally in charge, but the legendary investment executive who held the job before him is still a sounding board.
Abel also announced Thursday that he bought $15 million worth of Berkshire stock this month, equivalent to his entire after-tax annual salary. He told CNBC that he would continue to use his full salary to buy Berkshire shares annually, signaling his “alignment” with shareholders. He framed the move as a way to show loyalty to Berkshire’s future, to increase his personal stake in the company and to quell concerns raised by some investors who have doubted whether he has personal “skin in the game.”
Buffett’s shoes are ‘tough’ to fill
Abel is candid about how daunting it is to follow Buffett, especially as the new primary communicator to shareholders. He described writing his first shareholder letter, which he released earlier this week, as “challenging,” saying Buffett is an “exceptional communicator” and that the expectations were immense.
“The shoes to fill are tough on all fronts,” Abel told CNBC. “It was not easy.”
Abel said that writing the letter was “the toughest” work he had to do. In that letter, the CEO focused on reinforcing Berkshire’s long-standing principles rather than trying to mimic Buffett’s famous folksy tone. He emphasized financial strength and prudent investing, telling shareholders that the foundation Buffett built over six decades remains intact.
Abel recalled Buffett joking that “the second letter doesn’t get any easier.”
Continuity in strategy
When it comes to investing, Abel noted that Berkshire is unlikely to invest in cryptocurrency, continuing Buffett’s long-running skepticism of the technology. In 2018, Buffett famously called Bitcoin “rat poison squared,” warning investors not to invest in the cryptocurrency due to its speculative nature.
“I don’t think you’ll see crypto … I just don’t see it,” Abel told CNBC.
However, he left open the possibility that Berkshire would make investments in technology. He explained that Berkshire is increasingly recognizing how tech affects its own operations and identifying where that understanding might justify investments in specific tech companies. “So technology will always be on the table,” Abel said.
Buffett has already given Abel a sweeping endorsement. In his Thanksgiving letter to shareholders, he publicly said that he would rather have Abel manage his money than anyone else.
“I can’t think of a CEO, a management consultant, an academic, a member of government — you name it — that I would select over Greg to handle your savings and mine,” Buffett wrote.
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Key Takeaways
- Greg Abel became CEO of Berkshire Hathaway on January 1, replacing Warren Buffett.
- In a new interview, Abel disclosed that he still speaks with Buffett “nearly every day.”
- Buffett still comes to the office every day and remains engaged in Berkshire’s operations.
Berkshire Hathaway’s new chief executive, Greg Abel, is easing into one of the “toughest” jobs in business with a direct line to the man he’s replacing: Warren Buffett.
In a new CNBC interview, Abel, 62, says he still speaks with Buffett, 95, “nearly every day.” Buffett is in the Omaha office daily, so when Abel is there too, he consults his predecessor. If Abel travels, the rhythm becomes every couple of days, as he calls to get Buffett’s latest observations and to share his own thinking.
