Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway's chief executive earlier this year, said he continues to consult with Buffett on a near-daily basis, underscoring the outgoing CEO's ongoing involvement at the conglomerate.
Speaking to CNBC on Thursday, Abel said Buffett still comes into the office every day and that the two men stay in regular contact. Abel said that when he is in Omaha they speak each day, and when his role requires travel he checks in to hear what Buffett is seeing and hearing.
Abel also addressed one of the most visible parts of the leadership handover: taking over Buffett's role as the company's chief communicator to shareholders. He said composing his first annual letter to investors was the toughest assignment among the responsibilities that moved to him. According to Abel, Buffett offered little solace on the task, joking that the second letter does not get any easier.
On investment posture, Abel reiterated a cautious stance toward cryptocurrencies, saying Berkshire is unlikely to allocate capital to that asset class, a position consistent with Buffett's long-standing skepticism. At the same time, Abel said he would not rule out investments connected to technology, noting that Berkshire's operational use of technology helps the company develop informed perspectives and greater knowledge about certain technology companies.
The comments come as Buffett stepped down from the CEO role after leading the company for more than six decades; he continues to serve as chairman of Berkshire Hathaway.
Key points
- Abel reports near-daily communication with Warren Buffett, who remains active at the company and comes to the office daily - relevant to governance and investor communications.
- Assuming Buffett's role as primary shareholder communicator has proven challenging for Abel, with the inaugural annual letter singled out as the most difficult task transferred to him - relevant to corporate communications and investor relations.
- Abel signaled that Berkshire is unlikely to invest in cryptocurrencies while remaining open to technology-related investments informed by operational experience - relevant to technology and digital asset markets.
Risks and uncertainties
- Transition risk around shareholder communication - replacing a long-standing, high-profile communicator may affect investor perception and engagement, particularly in the financials and conglomerates sectors.
- Strategic clarity on new asset classes - Berkshire's reluctance on cryptocurrencies leaves uncertainty for markets exposed to digital assets and could influence investor expectations in related sectors.
- Scope of technology exposure - while open to technology-linked investments, the extent and nature of such positions remain unspecified, creating uncertainty for technology-sector observers and market participants.