Warren Buffett Isn't Worried About Berkshire After He Dies

Introduction

Warren Buffett, one of the most successful investors of all time, is still going strong at 93 years old. However, he is not unaware of his eventual mortality, saying "I feel good but fully realize I am playing in extra innings."

Succession Planning

Like any good CEO, Buffett has been thinking about his succession planning. Greg Abel, who runs Berkshire Hathaway's (NYSE: BRK) non-insurance business operations, is set to succeed Buffett as CEO when Buffett passes.

Contrarian View

While some investors in Berkshire fear that the stock will sell off on the day of Buffett's passing, Buffett has a contrarian view. He believes that "if I die tonight, I think the stock would go up tomorrow."

Conglomerate Breakup

Chris Davis, a Berkshire board member and investment manager, explains that a price increase would be due to an attempted value-enhancing conglomerate breakup. He believes that "every activist and investment banker will argue that in a world without Warren and Charlie, Berkshire's unorthodox structure shouldn't persist."

Stock Performance

If history is a guide, Berkshire's stock-picking team may have trouble replicating Buffett's incredible track record. Todd Combs and Ted Weschler, who currently manage about 10% of Berkshire's equity portfolio and are expected to eventually manage the entire portfolio, probably would've been better off investing in a market tracking index since joining the company.

Conclusion

Regardless of Berkshire's stock performance, the eventual death of one of the world's brightest business and investing minds will be sad news for Berkshire shareholders and investors everywhere. As with his succession plan, his timeless lessons are designed to last.