Will a potential successor move Berkshire’s headquarters out of Omaha? The company’s observers say this is unlikely.
Omaha, warren buffett and Berkshire hathaway are synonyms – it’s hard to imagine any of them without the other two.
But now, the 87 – year – old Mr Buffett’s chairman and chief executive, has been named Omaha has nothing to do with a potential successor, does this mean that once he gave up control, one of Wall Street’s most valuable company will continue in 1200 miles away from Wall Street?
Follow the company believes that even if the appointment on Wednesday, a longtime lieutenant of Berkshire Ajit Jain and Greg Abel served as vice chairman of the board of directors and they elected to the board of directors, the possibility of change is unlikely.
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At George Washington University, George Washington University law professor Lawrence Cunningham (Lawrence Cunningham) said: “Omaha seems to be a permanent abode of Berkshire,” warren buffett essays: American entrepreneurs lessons “. “The town and the company share so much history and culture, and I think Greg and aget understand that the board, like the board, is obviously going to make any decision.”
Buffett himself has said that the next chief executive will keep Berkshire in Omaha. “Berkshire is certainly consistent with Omaha,” he told the world herald in 2013. This is consistent with Omaha. “He suggested that one of his sons, Howard, was no longer at the top of the company and was appointed non-executive chairman. ; Howard also said the company would remain in Omaha.
It’s hard to overstate the city, the link between the man and the company, $220 billion a year, $310,000.
Not just the company’s head office, this is the Omaha hat: Berkshire hathaway’s annual general meeting of shareholders is known as the “Woodstock of capitalism”, attracted more than 30000 people around the world came to this city, and to help local companies. If the headquarters is moved, Berkshire can still meet in Omaha, but the meeting can be moved.
Mr. Buffett, a former son of U.S. rep. Howard Buffett, has been working in Omaha since he spent time in Washington in the 1950s. He founded the first private investment partners in Omaha and used his friends and neighbours to become a shareholder in the listed Berkshire hathaway in the 1960s. (if the investment is 20,000 Australian dollars, the current value will exceed $100 million.)
Along the way, he won the nickname “Omaha oracle”, said many times, sit in Nebraska, away from the hustle and bustle of Wall Street, let him to think more clearly, to avoid “buy now, and now sell” mania hangs over the stock market trading in mecca.
“I think the Omaha for Berkshire is a good thing, because it fully represents the buffett tried to instill cultural – an honest, friendly, frank and pragmatic culture,” Berkshire shareholders and the author of the multi-volume enterprise history Andy Kilpatrick (Andy Kilpatrick) said. Permanent value. Omaha is a meaningful town that doesn’t waste a lot of time pursuing foolish pursuits or investing. “
The taste is very Midwest. Buffett first focused on buying undervalued stocks, it is a trade with Wall Street machine incompatible buy and hold strategy, only when people to trade and trade more can earn a lot of money. For years, Berkshire has a stock portfolio valued at about $122bn, with a final valuation of less than half. One of the biggest holding companies is apple’s recent acquisition of shares, but before that it was the Derby between Coca-Cola and IBM.
In recent years, Berkshire has acquired the entire company. Once again, there is nothing flashy – machine tools, brick factories, chemical companies – nothing to watch out for, except to create cash for buffett’s further investment.
The old? Mr. Buffett still says he doesn’t have a desktop computer working at Berkshire’s headquarters at 3555 farnam street.
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“Omaha is part of Berkshire,” said George Morgan, a professor and Berkshire observer at the university of Nebraska at Omaha. “He used to say that he could read in his office here. I think Omaha is a part of Berkshire, and it’s going to stay here. ”
When it comes to headquarters, it’s just prestige. In Berkshire subsidiary work of more than ten thousand people, is only about 25 people, such as BNSF, china-us energy and Geico auto insurance, these are basically manage themselves on the basis of his own family, and the guidance of the headquarters very few.
But Omaha was burned down in the executive suite. In 2015, since 1922, ConAgra foods inc., based in Omaha, has won a new CEO, and it has nothing to do with it. Soon after, the company moved its headquarters to Chicago and moved closer to a major financial center. Omaha still employs about 1,200 people. Similarly, in the 1980s, chief executive Kenneth lay moved his headquarters in Omaha, Omaha, to Houston. (after enron’s collapse, the northern gas company, enron, was once again in Omaha, owned by Berkshire energy.)
Although the new vice chairman jain and Abel may not have the Omaha relationship, they are no strangers. The two Berkshire watchers have repeatedly referred to Mr. Buffett’s potential heirs, and Mr. Buffett has made it clear that he has no plans to retire and be in good health.
But the company says neither can comment, and being chief executive is a reasonable choice. Jain decades running Berkshire’s lucrative insurance business, and Abel joined in 1999, and served as Iowa MidAmerican energy department director, this is the second most profitable manufacturer, the company in 2016 profit of $2.3 billion, second only to BNSF, for $3.6 billion
Makran shareholders and business professor at the university of David Kass (David Kass) said: “Berkshire’s headquarters will remain in Omaha, they took students to Omaha for buffett’s university outreach q&a session. “Greg Abel and ajit jain will maintain Berkshire’s culture. Greg Abel lives near Des Moines, and Ajit Jain is on the east coast by phone.
He also pointed out that Berkshire’s board of directors has agreed to after warren buffett to maintain the company’s culture, Howard’s son will succeed to non-executive chairman, who is in charge of these transactions, but deprived from the daily and financial decisions.
“Berkshire is synonymous with Omaha,” Mr. Kass said. “The board has agreed to maintain Berkshire’s culture and stay in Omaha.”
Ted Bridges, head of Bridges Investment Management in Omaha, agrees. “I wonder if Greg or Ajit, eventually becoming chief executive, they will respect the Berkshire Hathaway as” Omaha “company’s history and culture, and keep the Omaha headquarters – at least in the transitional period after a period of time.
That doesn’t mean there might be no poachers there. The company’s headquarters is run by city councils across the country, and state business recruiters and Chambers of commerce are seen as plums of economic growth. Most of it is not just to provide work, constantly focus also includes Wall Street, the television screen at the bottom of the climbed, CNBC interview, each financial newspapers and websites referred to the headquarters of the city.
New Jersey location firm The Boyd Co., The head of John Boyd (John Boyd) said: “given The company’s extensive influence, this will be one of The most coveted headquarters economic development projects.
If that happens, Mr. Boyd says, another city will add to its corporate image, as Berkshire’s headquarters is too small and the economic impact is small.
While Omaha and the Midwest are “intrinsic” to buffett’s personal brand, the new leader may not be the same when buffett is away. New chief executives may prefer to live and work elsewhere.