Buffett allays investor fears over Berkshire after cancer diagnosis
Source: Agencies |
May 7, 2012, Monday
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Print Edition
Print Edition
WARREN Buffett tried to allay fears of Berkshire Hathaway Inc shareholders about the company's future after he was diagnosed with prostate cancer, and revealed that he recently tried to make one of the biggest acquisitions of his storied career.
The question of who will succeed Buffett, 81, as chief executive became more of an imperative after Buffett disclosed the diagnosis on April 17.
While he called it "a really minor event," his early-stage prostate cancer was a reminder that for all his success as an investor and all the plaudits he gets, Buffett is mortal and would be hard to replace at the company he has run since 1965.
That made the future of Berkshire, with or without Buffett, a central focus of the five hours of questions at its annual meeting on Saturday in downtown Omaha, Nebraska.
"I don't think that every deal that I made would necessarily be makeable by a successor, but they'll bring other talents," including skills to be an effective chief risk officer, Buffett said. "We're not going to have an arts major in charge of Berkshire."
Charlie Munger, who is Berkshire's 88-year-old vice chairman and sat beside Buffett, quipped: "I rather resent all this sympathy and attention that Warren is getting. I probably have more prostate cancer than he does."
The annual meeting is the centerpiece of a weekend of events that Buffett has dubbed "Woodstock for Capitalism." Close to 40,000 shareholders were expected to attend this year.
Buffett on Saturday also said that he recently considered an over US$20 billion acquisition, and would have sold some Berkshire stock holdings he wanted to keep to get it done.
"I wish we could have made it," he said.
Buffett did not name the target. A takeover of that magnitude would have been close in size to Berkshire's biggest takeover - the US$26.5 billion purchase of railroad company Burlington Northern Santa Fe in 2010.
It would have also dented Berkshire's US$37.83 billion cash hoard. Buffett said he wants to keep US$20 billion on hand.
Buffett offered a blunt assessment on a scandal enveloping Wal-Mart Stores Inc, in which Berkshire held a US$2.33 billion common stock stake at year end.
Last month, the New York Times said the retailer's majority-owned Wal-Mart de Mexico unit ran a widespread bribery campaign in that country to win market dominance, and that senior Wal-Mart executives tried to cover it up.
But he said he did not believe the matter "changes the fundamental dynamic" about Wal-Mart or its earnings power.
The question of who will succeed Buffett, 81, as chief executive became more of an imperative after Buffett disclosed the diagnosis on April 17.
While he called it "a really minor event," his early-stage prostate cancer was a reminder that for all his success as an investor and all the plaudits he gets, Buffett is mortal and would be hard to replace at the company he has run since 1965.
That made the future of Berkshire, with or without Buffett, a central focus of the five hours of questions at its annual meeting on Saturday in downtown Omaha, Nebraska.
"I don't think that every deal that I made would necessarily be makeable by a successor, but they'll bring other talents," including skills to be an effective chief risk officer, Buffett said. "We're not going to have an arts major in charge of Berkshire."
Charlie Munger, who is Berkshire's 88-year-old vice chairman and sat beside Buffett, quipped: "I rather resent all this sympathy and attention that Warren is getting. I probably have more prostate cancer than he does."
The annual meeting is the centerpiece of a weekend of events that Buffett has dubbed "Woodstock for Capitalism." Close to 40,000 shareholders were expected to attend this year.
Buffett on Saturday also said that he recently considered an over US$20 billion acquisition, and would have sold some Berkshire stock holdings he wanted to keep to get it done.
"I wish we could have made it," he said.
Buffett did not name the target. A takeover of that magnitude would have been close in size to Berkshire's biggest takeover - the US$26.5 billion purchase of railroad company Burlington Northern Santa Fe in 2010.
It would have also dented Berkshire's US$37.83 billion cash hoard. Buffett said he wants to keep US$20 billion on hand.
Buffett offered a blunt assessment on a scandal enveloping Wal-Mart Stores Inc, in which Berkshire held a US$2.33 billion common stock stake at year end.
Last month, the New York Times said the retailer's majority-owned Wal-Mart de Mexico unit ran a widespread bribery campaign in that country to win market dominance, and that senior Wal-Mart executives tried to cover it up.
But he said he did not believe the matter "changes the fundamental dynamic" about Wal-Mart or its earnings power.
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