Subject: Re: Abel upgrade: from CEO to Warren
I thought it was a sensible clarification to remove any ambiguity. In any rational world, Capital Allocation has to be the major job of the Berkshire CEO. It is simply not realistic for 2 managers who have been managing much smaller sums to be positioned to step up into the full role. In fact, this was a risk that I have been mentioning for a few years and I am glad it is pretty clear that it is up to the CEO to use Ted and Todd and anyone else as resources but the overall job at the Enterprise level is his.
Since the capital involves substantial fully owned internally controlled businesses, comparing individual stock picks to the S&P 500 etc would not be the correct metric to judge the allocators' performance. 5 Year price performance of the BRK stock would probably continue to be a pretty good yardstick to assess how good a job is being done.