Warren Buffett tells Berkshire Hathaway shareholders today that the person who succeeds him as the company's CEO will also be Berkshire's "chief risk officer," just as he has been over the years.
Buffett says Berkshire wouldn't choose someone who couldn't manage risk, a role he says should never be delegated by any company.
Asked if anyone else could have negotiated Berkshire's preferred stock and warrant deals with General Electric , Goldman Sachs , and Bank of America at such favorable terms, Buffett acknowledges that he had special skills in those instances. But he says the next CEO will be able to make deals and will bring his own skills to the job. "We're not going to have an arts major in charge of Berkshire."
In addition, Buffett says deals like GE, Goldman, and BofA, create values that are "peanuts" when compared to buying good companies, like Geico, over the years.
Current Berkshire stock prices:
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