No. of Recommendations: 1
ThereisbignewscomingoutofBerk
shire Hathaway. IconWarren Buffett
will leavehispost asChiefExecutiveOf
ficerat theendof thisyear. The94year
oldhasledtheconglomerateformorethan
60 years and has transformed it froma
relativelysmall textilecompanytoamore
than-$1-trillionpowerhouse.Despitestep
ping down, Mr. Buffett will remain as
Chairman of the board of directors and
continueworking fromhisOmaha office.
Mr.Buffetthasanexceptionallystrongin
vestment track record and has handily
outpacedtheperformanceof theS&P500
Index over the decades. Greg Abel will
take over as CEO effective January 1,
2026. Mr. Abel currently serves as the
Vice Chairman of Berkshire Hathaway,
overseeing its noninsurance operations,
and is also the Chairman and CEO of
BerkshireHathawayEnergy.Hehasbeen
with the company since 2000.While it’s
verydifficult toreplacealegendaryinves
torsuchasMr.Buffett,webelievethatthe
companywill be ingoodhands.Mr.Abel
has been effective atmanaging and im
plementingchangeswithinthecompany.
Inothernews,welookforthecompa
ny’sresultstoremainstrongonanab
solute basis this year. While profits
mightwelltakeastepbackfromlastyear,
theyareupagainstadifficultcomparison.
We lookformostof thecompany’soperat
ing segments to performwell this year,
while above-average investment returns,
whicharea commonoccurrenceatBerk
shire, ought to furtherpropel growth.We
expectbottom-lineprogresstoresumenext
year.
Weforecast thatearningswillhit the
$30.00-a-sharemarkby the2028-2030
time frame. Berkshire has a history of
outperforming expectations, and we be
lievethat thisshouldcontinuewithanew
CEOatthehelm.
These shares offer worthwhile risk
adjustedtotal-returnpotential forthe
pull to 2028-2030. Acquisitions, which
aren’t included in our projections until
they are consummated, could addmean
ingfullytoourlong-termprojections.Berk
shirehasbeenabigplayer intheacquisi
tiongame forquitesometimeandwebe
lievethat strategywill continue, givenits
strongfinances.
AlanG.House May30,202
