Reference Message Network reported on April 7 that Fortune magazine's website recently published an article titled "Get to Know Warren Buffett's Personally Chosen Successor" by Sean Tully. The following is a translated version of the content:

"Warren, who is your successor as CEO?" This may have become the most frequently asked but never answered question in the history of Berkshire Hathaway. The usual response from Warren Buffett and Charlie Munger (who passed away on November 28, 2023, at the age of 99 - note by our website) when answering this question during the annual meeting was: "The board has designated a successor, but we cannot say who it is."

However, on May 1, 2021, after lunch, Charlie Munger casually dropped a bombshell while answering a question about company culture: "Greg will carry forward this culture."

Munger's words put an end to what might be one of the most watched and longest-running CEO succession speculations in history. Investors and followers of Berkshire Hathaway immediately identified "Greg" as Greg Abel. Two days later, Buffett confirmed in an interview that Abel would take over when Buffett finished his mission.

"A Smart Person Who Won't Do Foolish Things"

The 62-year-old Abel has been one of the two top contenders for the position of successor since early 2018. Since then, he has been responsible for all non-insurance businesses. These dazzlingly diverse assets make up the largest non-financial balance sheet in the U.S., generating 2/3 of Berkshire's non-investment income.

Twenty-five years ago, when Berkshire entered the energy sector, Abel joined Buffett's team. As CEO of Berkshire Energy, Abel built a massive conglomerate including utilities, oil pipelines, natural gas plants, wind and solar power plants, and transmission networks, which is a key pillar of Buffett's empire. Today, the enterprises under Abel's leadership generate approximately $270 billion in revenue annually.

Along the way, he earned Buffett's trust, demonstrating the same ability as Buffett himself - building trust, spotting deals, and avoiding major risks. Buffett once claimed: "There are many smart people in this world, but some of them do foolish things. Greg is a smart guy who won't do foolish things."

Through interviews with people familiar with Abel, his own speeches on personal background and management philosophy, as well as his achievements, it can be seen that he is a leader with a style very similar to Buffett's, but he is likely to forge his own path.

A Down-to-Earth Personality That Wins Hearts

Almost no one would be surprised that the person Buffett chose as his successor has a down-to-earth and very likable personality. People who know Abel say he has Warren's style but is not as flamboyant. Abel grew up in Edmonton, a Canadian prairie town nicknamed "Oil Capital," known for its cycles of prosperity and decline. His mother was a homemaker who occasionally worked as a legal assistant, and his father sold fire extinguishers. Abel recalled in an interview with the Horatio Alger Association of Distinguished Americans: "Sometimes people have jobs, sometimes they don't. But with family and good friends, you have the chance to pursue your dreams."

His first business venture involved riding around town on his bicycle delivering advertising flyers to households, earning 25 cents per delivery. Young Abel also collected empty soda bottles. He was always looking for the best bike routes home from school to collect more bottles. Each trip could yield five bottles, so by the weekend, his room would be filled with over 20 bottles, worth $1. In high school, he helped fill fire extinguishers for his father's employer.

Abel has loved ice hockey since he was young and would stay on the ice until his parents called him home for dinner every night. This sport taught him the power of teamwork. Abel said: "You quickly realize that playing for the team is much easier to succeed than playing alone."

Abel's down-to-earth values align with the local customs of the city he now calls home, Des Moines, where Berkshire Energy is headquartered. He coaches his youngest son's ice hockey team at the Abel Ice Arena. This year, he stepped down from his role as head coach and became an assistant coach. According to his friends in Des Moines, if you encounter Greg at the Iowa State Fair or the Calgary Stampede, you are more likely to see him as a schoolteacher or a local banker. Mark Omann, a retired senior executive of Wells Fargo, said: "His personality suits such occasions. As a neighbor, he is just a plain, honest, and trustworthy guy, very suitable for watching TV together, watching a National Football League game, etc." Omann also said that Abel is an interesting person.

According to people familiar with Abel, he enjoys building and nurturing strong personal relationships. Omann said: "He becomes friends with everyone he meets right away. But when it comes to outgoing people, I wouldn't think of Greg. He doesn't shout or boast, but he is 500% friendly. No one is better than Greg at hosting parties. He ensures that everyone has a great time, not in an exaggerated way, but by giving each person enough attention."

Despite his busy schedule, Abel is always extremely generous in offering advice, even when there is no commercial benefit. Larry Cunningham, a professor at the University of Delaware who has written several books about Buffett, said: "He is an awe-inspiring intellectual, but he won't make you feel stupid or irrational, which is wonderful, and he won't let you down."

Abel's involvement with the Horatio Alger Association made a particularly deep impression on Goodwin, a former boss of Honeywell and a member of the association. Abel served as president of the association in 2018 and remains on the executive committee. Goodwin believes that Abel is both charitable and approachable. Goodwin said: "Given Greg's status, he could easily become aloof, cold, and self-protective. I've seen many people with much lower positions put on airs."

Abel's appointment could be due to the fact that among all candidates, his smooth yet outgoing personality most closely resembles Buffett - this similarity has significant business advantages. He speaks confidently at Berkshire's annual meetings: holding a microphone, walking through the audience, succinctly describing technical details of utility operations. Like Buffett, he has the charm of being candid and outspoken, which helps Buffett attract everyone, from initial hostile regulators to those who only sell their businesses to people they trust very much.

A Pragmatic and Progressive "Detail-Oriented" Person

According to Omann, Abel has the ability to "digest large amounts of information." Abel's business partners say he can quickly read balance sheets and income statements and extract key elements. This thirst for knowledge about how businesses operate, especially where every dollar comes from and goes, began at the University of Alberta. Abel initially focused on finance but later turned to accounting to better understand the interaction between balance sheets and cash flow. After graduating in 1984, he joined Price Waterhouse in Edmonton and later accepted a temporary assignment to move to the firm's San Francisco office.

In 1991, Abel became an auditor at CalEnergy, the second-largest geothermal energy producer in the U.S. It was during this period that Abel formed his management style and met mentors who shaped his career.

Later, Abel became an accountant at Peter Kiewit Sons' construction company, whose culture helped forge his lifelong work and negotiation methods. The company had a straightforward, roll-up-your-sleeves-and-get-to-work职业道德, where people worked hard to build dams, bridges, and oil platforms and constantly moved locations to seek new opportunities.

Dave Whitte, a technology entrepreneur who was once a director at CalEnergy, said: "Greg is humble and hardworking; you'll like him right away. He is thoughtful and considerate, and you won't feel arrogant at all."

Abel's succession is a done deal. As head of Berkshire's energy business, he maintained profitability, used Berkshire's vast balance sheet to fund acquisitions (mainly cheap ones), and reinvested 100% of cash flow to maintain and expand franchises, creating the powerful compounding effect that Buffett values.

No matter whether he served as CEO of Berkshire Energy from 2008 to 2018 or oversaw all industrial operations thereafter, Abel has proven to be a tenacious and hands-on manager, perhaps the main promoter of investing in and building green energy infrastructure in the U.S.

Unlike Buffett, who is famous for delegating, Abel is always a "detail-oriented" person. Jim Webb, who recently stepped down as CEO of Brooks Running Shoes, revealed that Abel visits the shoe manufacturer's Seattle headquarters annually to discuss strategy. Webb said in an interview at the 2021 annual meeting: "If you have any questions, he will tell you so that you still have months to get back on track."

According to Cunningham of the University of Delaware who knows Abel: "Greg won't let laggards lag behind. If performance is poor, you will receive a call from Greg." Buffett himself has said something similar. In an interview with CNBC in 2023, he admitted: "(Greg) may be tougher than me. He is better at executing things like that. He smiles when he does these things."

(Translated by Lin Chaohui)

Original source: https://www.toutiao.com/article/7490462647675093538/

Disclaimer: The article represents the author's views. Feel free to express your opinion by clicking the 'Like/Dislike' buttons below.