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Thick cloud, no cloud, as long as he is involved just keep buying. This can be you giving out investment advice to someone or probably to yourself. Credibility is a business hedge. There are some entrepreneurs who have over time become a household trusted name. It can be that surprising, just be good and even the greed of men will work to your favor. Afterall, do reputable investors invest in what they love? Of course not, they invest in what will produce results. That old saying, look off emotions, go for facts.
Let me pause here and ask, would you still retain Berkshire Hathaway shares in the absence of Warren Buffett? Or asking from another view point, how much Berkshire Hathaway stock would you confidently purchase when WB steps down by the end of this year?. I can remember a saying I picked from a movie during my movie watching years that goes like this; ‘we had a contract and contracts just like humans expire’. The flaw of humans is this; no matter how good they are, they ALL expire. WB has been a legendary investor to investors but as time had permitted, he is no longer permitted.
So what brought about this article, ok, I was going through a business news concerning the present worries of shareholders of Berkshire Hathaway stocks as WB steps down. There is certainly a confidence decline. In short, it has shown in their shares since that May official announcement by WB during their annual meeting. Some outperformances have been curbed. While some say it is a necessary correction because these shares were overvalued, I don't think it rings the same with others.
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Yes, there is skepticism, will new CEO Greg Abel be able to produce equivalent results as WB for a long decades records?. Many are beginning to consider and reconsider and also in the process restrategize. I wouldn't be much surprised if their shares keep dipping throughout the year. It may even get worse by Next year, especially in its first quarter as all eyes will be on how good Abel and his crew will be good at picking stocks that deliver.
Does this mean there is a doomed future for Berkshire Hathaway? I wouldn't say so, this company has men who have for long years walked with WB. At least there is Enough track record tactics to replicate. Nevertheless, one can always say, and most especially in the current tech wave that Abel will have to decide strongly in order to avoid some stock pitfalls. For instance, we have seen WB staying clear of investments like crypto and AI. Will these still prevail under the era of a new CEO?
The pressure is on a high side for him I must say, replacing as an icon is like being given a sleepless responsibility. You can easily hear stakeholders say ‘if only WB was around’ when things TRY to fall apart. Ok, WB isn't dead, but retired and who knows how many years are still left in him. It means the consultation period will definitely retire too.
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There is a saying, no man is indispensable although there are some that are hard to replace. Which will you say about WB? I guess the latter, a legendary investor is bowing and already a multi-billion corporation like Berkshire Hathaway is shaking.
To conclude, let me add, I have learned two things at most from this article. First, as I earlier said, as an entrepreneur, be good and you will see investment capital flocking your direction. Investors pour capital on value; this can be your credibility, integrity, experience and long record performance put together. I keep on saying it, if the bank says they don't have money, it all depends on who came in demanding it. Of course it is not given to anybody but ‘some bodies’.
The second thing is this, every natural setting will be over written. Such is the current fate of WB and Berkshire. There is a time and a season for everything under the sun. A legend will pace way for another to rise. Personally, business, economic and entrepreneurship aside, this draws me to the table of humility.
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