Warren Buffett Prepares for Death and Taxes
January 10, 2018
They say in this world nothing can be certain except death and taxes. Today the Oracle of Omaha prepared for one and commented on the other.
While Warren Buffett said he feels as fit as a fiddle at the ripe old age 87, the Oracle is not taking any chances and today took a major step in Berkshire Hathaway's (NYSE: BRK-a) succession planning.
Berkshire Hathaway announced that it increased the board size from twelve to fourteen and elected Gregory E. Abel and Ajit Jain to serve as Directors and Vice-Chairmen.
Mr. Abel will serve as Vice Chairman of the Non-Insurance Business Operations and Mr. Jain will be Vice Chairman of the Insurance Operations.
Mr. Buffett will remain Chairman and CEO and Charlie Munger, 94, will remain the third Vice Chairman.
Mr. Abel joined Berkshire Hathaway Energy Company in 1992 and currently serves as its Chairman and CEO. Mr. Jain joined the Berkshire Hathaway Insurance Group in 1986 and currently serves as Executive Vice President of National Indemnity Company with overall responsibility for leading Berkshire’s reinsurance operations.
In a CNBC interview discussing the move, Buffett said investors should not be concerned about his health amid the news, commenting that he "feels great."
Describing the two new Vice-Chairmen, Buffett said they both have "Berkshire in their blood...know the operation like the back of their hand." He said the move is good for Berkshire and "even better for me".
Buffett also commented on the recent tax cut and how they are a major boon for investors. He explained that the corporate tax cut is like giving investors a free 14% stake back in the companies they own...