Berkshire After Buffett: Perfectly Adequate, Darling

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Berkshire Hathaway (BRK.A +0.74%) (BRK.B +0.83%). A rather impressive entity, wouldn’t you agree? It has, after all, managed to accumulate a truly staggering fortune. And, of course, it was all orchestrated by that perfectly charming Mr. Buffett. Now that he’s decided to take a well-deserved rest – or perhaps simply found managing vast sums tiresome – the question arises: will it continue to be… adequate? I’m concluding a little series on the firm for the Voyager Portfolio, and while I’m not adding Berkshire to my holdings – frankly, I have enough – that doesn’t mean it’s not a perfectly sensible addition to yours.

The Inevitable Handover

Succession. Such a vulgar word, really. But inevitable, nonetheless. For years, Buffett and the late Mr. Munger – a man of bracingly direct opinions – reassured the shareholders that a plan was in place. Vague, naturally. One doesn’t broadcast one’s strategies to the rabble. Then, in 2021, the announcement: Greg Abel was the designated heir. Quite sensible. Abel, it seems, has a knack for numbers and a temperament that won’t cause the markets to spontaneously combust. Buffett, bless his heart, has even gone so far as to suggest he’d trust Abel with his personal finances. A rather damning indictment of the rest of the financial industry, wouldn’t you say?

Preparing the Stage

The truly clever thing Berkshire did, besides accumulating an obscene amount of cash – a record $382 billion, as of 2025 – was to leave Abel with options. One can’t expect a successor to perform miracles with an empty till. Now, Abel has a war chest large enough to acquire a rather substantial company, should anything remotely appealing come along. Or, he could simply repurchase shares. Perfectly boring, but often effective. Some analysts, in a fit of wild speculation, even suggest a dividend. Good heavens. The sheer audacity of it!

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Zigging When Everyone Else Zags

I shan’t be adding Berkshire to the Voyager Portfolio. Not because it’s a bad investment – far from it – but because I already own enough of the thing. It’s rather like having too many perfectly serviceable tweed jackets. One simply doesn’t need another. And, of course, any index fund already has a considerable stake. What I’ve noticed, however, is that Berkshire tends to hold its value when the tech darlings are having a wobble. A bit like a reliable old aunt at a rather disastrous party. One doesn’t expect fireworks, but one is grateful for the stability. I haven’t the faintest idea what Berkshire will look like in a few years, but I share Buffett’s confidence that Abel will manage to keep the whole thing afloat. Perfectly adequate, darling. Perfectly adequate.

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2026-02-07 20:14