The inevitable question looms larger each year: what comes after Warren Buffett? At 94, the Oracle of Omaha has built an empire, but succession will test whether Berkshire’s magic was the man or the machine.
Source: Financial Times
Berkshire faces two paths: preserve Buffett’s approach (concentrated bets, long-term holding, operational autonomy for subsidiaries) or evolve into something different (more diversified, more institutional, potentially more mediocre).
Buffett’s edge combined capital allocation genius with a unique reputation that attracted deals others couldn’t access. The capital allocation skills can be taught; the reputation cannot be transferred. Without Buffett’s phone ringing first for deals, the competitive advantage narrows.
The Evolution Path
Alternatively, Berkshire could evolve into a more conventional conglomerate—perhaps a better-managed one, but without the distinctive edge. This path offers stability but potentially lower returns. The moat would be size and diversification rather than insight and access.
Either path represents a step-down from Buffett. The question is which step-down is smaller and more sustainable.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
