00:00 President
Berkshire Hathaway's board of directors voted unanimously to appoint Greg Abel as successor to Warren Buffett. Abel will take over as president and chief executive officer of the company from January 1 of 2026. The Buffett plan to resign after 60 years at the helm was only one of the biggest dishes to remember from the annual meeting of shareholders of Berkshire Hathaway. Our next guest, Sam Roe, he is the editor -in -chief of Ticker.com. He was on the ground this weekend, and we are going to chat with him. Sam, great to have you here. Uh, you know, I like to have your ideas. Tell me about the reaction in the room when Buffett announced that it would in fact leave the first position of the company by the end of this year. What did you hear people in the field?
01:03 Sam Roe
Well, yes, I mean, at the start, it was an amazed silence. Because, you know, if you listen to his words carefully, he did not say that I intended to retire. He says, I think it's time for Greg Abel to become CEO. And so your brain must somehow, you know, make logical jumps there to say, well, if Buffett is the CEO, it means that Buffett must retire. So you know, the label was really interesting and and, yes, it was an amazed silence. Hmm, but uh, I think that uh, you know, as much as it has been shocked for many people, it is also something that has been in preparation for an incredibly long time. Uh, you know, first of all, he is 94 years old. You know, you will never be surprised to hear when a 94 -year -old child decides that he will not only retire, but retire at the end of the year. UM, and the other thing is that, you know, the planning of the succession of Berkshire was one of the transparent processes most carefully thought, communicated, you know, perhaps in the history of America of companies. Um, you know, we know that Greg Abel, uh, very, you know, he has become one, you know, vice-president of Berkshire Hathaway, I think that in 2018. And so we have known him for a long time. And even in 2021, Uh, Buffett and Munger in fact announced their intention of, uh, you know, to raise uh, Abel to this position. So, that said, of course, when, you know, you have followed, followed someone for 60 years, or I mean, you know, even less for me and I am sure that you too, but like all our career, uh, for many people, all their lives, they have seen it as a must in this company, which has also given everyone life. So, so yes, it's really a surprise.
04:41 President
And so, Sam, is there an important difference that we plan or expect at all between commercial ideologies as established by Warren Buffett and Charlie Munger for decades, for 60 years compared to those of Greg Abel?
05:28 Sam Roe
Yeah, you know, uh, I think there are two ways to think about it. Hmm, inevitably it will change. Uh, the, but it is actually the story of Berkshire Hathaway and Warren Buffett and Charlie Munger themselves. You know, from the point of view of the company, the company was founded as a textile company AA which has evolved into an insurance company which has evolved in this multi-world conglomerate which also has this large portfolio of action. So the activities of this company have evolved forever. UM, then strictly from the point of view of the investment, you know, Buffett began like this guy who, you know, cited a cigar tail was, you know, to find extremely undervalued companies and EUH actions which, according to him, were negotiated, below their fair value, but then that the ideology really evolved actions as well as actions. So, you know, uh, I think that the change is actually, you know, inherent in the culture of this company. Hmm, that said, you know, once again, Abel has been in a next line to be CEO for years, and, you know, he actually talked during shareholders' meetings right next to Buffett. So, you know, the quotation, I mean, if there is a question to ask now, is good, what part of the last two years has been determined by Greg Abel's decisions? I am sure that many of that has already done so.
08:02 President
And Sam, investors were impatient to hear the comment of Warren Buffett, in particular on the development of the trade war, which, according to him, should not be used as a weapon. And he said it was an act of citation war. Uh, tell me about how this has an impact on your reflection on the impact of the trade war on the financial markets while you write on the impact of the trade war on the financial markets.
08:58 Sam Roe
Yes, I mean, you know, uh, as frank as Buffett when he talked about trade and commercial policy and how he should be implemented, uh, I don't think he really said something particularly controversial. Protectionist trade policies are negative for everyone. UM, and especially when you use it, no, you know, advance your economy and no, you know, build wealth for everyone, but if you use as a tool to advance your political interest, then, yes, you arm the trade. And as Buffett said, it can be interpreted as an act of war. UM, protectionist trade policies harm economies. So, you know, what's going on when you hurt the savings? People are unemployed. They cannot afford the grocery store. They cannot pay their health care bills. Uh, crime rises. Uh, then, yes, it's, you know, it's not an act of peace. So, you know, it may not be surprising when Buffett comes out so clearly and says that it is an act of war. But uh, you know, just so that we are uh, uh, you know, giving Buffett a shaking right here, uh, you know, once again, he does things very carefully. And at no time did he really say that he specifically addressed Trump and Trump's policies, uh, but he just talked like a general question that when you do, uh, you know, uh, implement protectionist trade policies and you use commercial policy as a tool to advance other interests, uh, it is not a good thing.
11:03 President
All right. Sam, always great to talk to you. Thank you for taking the time for us. Appreciates it.
