Buffett’s successor buys Berkshire shares

Buffett’s successor buys Berkshire shares

Greg Appel, ostensible successor to Warren Buffett Berkshire Hathaway (BRK.A) (BRK.B) He, who is destined to become the group’s CEO, bought $68 million of the company’s stock.

Prior to the purchase disclosed in four Form 4 filings on October 3 with the Securities and Exchange Commission, Abel owned relatively few shares of the company for a person in his position.

As of last week’s purchases, Abel owned only about $2.7 million of stock or 2,363 Class B shares and five Class A shares, according to a 2022 proxy statement filed in March.

Abel purchased 168 shares of Berkshire Hathaway Class A through the Gregory Abel Revocable Trust on behalf of the trust that includes his wife, children and other family members.

Paying between $405,000 and $408,000 per Class A share for Berkshire stock, which closed Monday at $413,300.

Abel used the proceeds from the sale of his 1% stake in Berkshire Hathaway Energy for $870 million to purchase those shares.

Abel first got his start at MidAmerican Energy in 1992, and became its CEO in 2008. Berkshire acquired the company in 1999 and changed its name to Berkshire Hathaway Energy.

In 2018, Apple was promoted to vice chairman of Berkshire’s board of directors to oversee dozens of non-insurance businesses.

He received $19 million in compensation for each of the past three years, which Buffett set.

This sum was also awarded to Ajit Jain, the vice president who oversees the giant’s insurance business.

Unlike other large public companies, Berkshire executives do not receive stock compensation.

Buffett, who set policy for the group’s executives, believes his company’s shares are commodities.

Both Berkshire executives and directors buy company shares on the open market like retail investors.

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The timing of the stock purchase may be lucky because the company’s shares are down 8% so far in 2022, but they still outperform the S&P 500, which is down 22%.

Berkshire shares are down 24% from their March peak.

In 2021, Buffett publicly said that Abel would succeed him. But Buffett, now 92, has not indicated when he will retire. Charlie Munger, Buffett’s right-hand man who serves as vice president, is 98 years old.

Buffett said Jane would be next in line.

โ€œThe directors are in agreement that if something happens to me tonight, it will be Greg who will take over tomorrow morning,โ€ Buffett said. โ€œIf anything happens to Greg tonight, God forbid, it will be Ajit. They are both wonderful men.โ€

Warren Buffett’s son, philanthropist Howard Buffett, 67, is likely to take over his father’s position on the board. Howard Buffett has been a member of the Berkshire Board of Directors since 1993 and will serve as Non-Executive Chairman.

Howard Buffett, who runs a charity and worked as a farmer, was not in a race to take on the Berkshire company.

Warren Buffett, along with Bill Gates, founder and former CEO of Microsoft (MSFT) and Melinda Gates, were the founders of the Giving Pledge, an agreement by many billionaires who commit to donating most of their vast fortune during their lifetime or at will.

Warren Buffett still owns 16% of Berkshire’s stock, worth $95 billion. He’s already donated half of his holdings over the past 16 years to the Bill & Melinda Gates Foundation, as well as other charities.

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