Berkshire Hathaway succession is a two horse race

Berkshire Hathaway has kept the industry guessing on who will succeed Warren Buffett in its latest set of financial results – but it does appear to be a two horse race.

Ajit Jain, who manages Berkshire Hathaway Reinsurance Group, and Greg Abel, the head of Berkshire’s utility operations, were both identified as potential successors by the company’s vice chairman in the letter to shareholders.

Charlie Munger, the vice chairman, said: For instance, Ajit Jain and Greg Abel are proven performers who would probably be under-described as ‘world-class’. ‘World-leading’ would be the description I would choose.

“In some important ways, each is a better business executive than Buffett. And I believe neither Jain nor Abel would (1) leave Berkshire, no matter what someone else offered or (2) desire much change in the Berkshire system.”

Buffett added: “Both the board and I believe we now have the right person to succeed me as chief executive officer – a successor ready to assume the job the day after I die or step down. In certain important respects, this person will do a better job than I am doing.”