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What Greg Abel will do now he has officially taken over from Warren Buffett at Berkshire Hathaway.



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Good morning. It can be said that it is the most difficult work in American companies – tracking Warren Buffett. But now that Greg Abel officially had a timetable for Berkchire Hathaway by the end of the year, the question is: How will he run it? I have identified Abel for luck Again in January-you can read the in-depth story here. But three topics appeared when I studied ABEL from the Buffett Play Book – and where it is likely to go.

Both leaders love the unnecessary transaction and Lot: ABEL participates with Buffett, the charming talent for making deals. The future CEO is especially great in seizing great assets at troubled prices in coarse markets. A prominent example is that BHE purchases for pipelines and natural gas lines for a song in the early first decade of the twentieth century, after buyers were distinguished by the abolition of restrictions such as Enron and Williams companies significantly on them. The difference: Abel the act of supervising the race that made companies better. Puffett has not entered much in the operations, as it relies instead on a unique talent to choose the crack operators. Like Buffett, ABEL is the holder of accounting. To move forward, ABEL is likely to continue to practice Pavite of spreading acquisitions and investments in the various industries, so that through the course, the winners of the growing markets in the sectors are temporarily compensated, and will never bet on the privilege of buying one giant company.

Expect ABEL to be more practical than buffettThe best bet is that ABEL will impose more strict operating targets on companies, and then help direct diplomatic executives towards the best way to get there. Jim Weber, former president of Brox, revealed that Abel visited the headmaker’s running maker in Seattle several times a year for strategic sessions. “If you do not perform, he will tell you, and you have a few months to reach the right track,” Weber said during an interview at the annual meeting of 2021. Also, take a closer look at ABEL on how much submarines spend on new plants and other bullets. “Two CEOs told me that he imposed a kind of maximum consulting on the capital’s spending. It exceeds the borders and leads to a conversation with Greg,” says Adam Meed, who wrote the final book on the financial history of Birkashire.

You may pay ABEL for more synergyBerkshire is proud to create a very light company structure that reduces bureaucracy and speeds up decisions. But the softness may have gone away. Successful clumps from Danaher to Honeywell achieve efficiency by collecting the purchasing power of various companies to buy raw materials and components at the best prices. Today, Berkshire is a synergy synergy, which is large – but mainly financially. The main headquarters can lend Clayton Homes and other submarines at much lower rates than they pay banks or bond holders, for example. But it seems that Berkshire does little or nothing similar to encouraging its submarines to buy steel or semiconductors at a concert, or secure Jico sales. At the annual meeting, Abel indicated that Jiko is going through a “technological transformation”, and that other Berkshire’s works can learn from their experience and may adopt similar improvements. He concluded that Berkshire needs “to know how to take advantage of previous improvements.”

More news below.

Call the executive daily via Diane Brady at Diane.brady@fortune.com

This story was originally shown on Fortune.com


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2025-05-12 09:15:00

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