Warren Buffet, one of the richest men in the world, is considered to be one of the best investment managers of our time. He started at a very young age, and managed to make smart investments that gave his company Birkshire Hathaway handsome returns. His company’s stock price has increased by more than 1635% since 1990 vs. S&P’s 225% appreciation.
The conserns that relates to Buffet are his old age, 80 years old, and his successor. Who will manage the $ 200 billion market cap company and its $123,455 stock price? Buffet announced yesterday that he had hired Todd Combs, a little-known 39 years old manager, to be his eventual successor. Combs used to manage a $400 million-hedge fund in Connecticut. He was down a mere 5% in 2008 while the S&P fell by almost 20%, which complements Buffet’s strategy as he tends to outperfomr when the market is down. Buffet and his right-hand man, Charles Munger, are enthusiastic about hiring Combs, and believe the he is good fit to Berkshire. The market, however, didn’t share their enthusiasm as the stock fell 1.3% yesterday.
I guess this decision has brought a relief on a key issue that has haunted Berkshire’s investors for a while. The question is will Combs be up for the job? Or will he fail to impress?
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Loading ...Tags: Berkshire, Berkshire Hathaway, Buffet, Successor, Warrent Buffet
Interesting article.. Keep up the good work guys!
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