Rady School Discussion Examines Warren Buffett’s Legacy and What’s Next for Berkshire Hathaway
From left to right: Bosco Luján; Lisa Ordóñez, Dean of the Rady School of Management; Larry Cunningham and Robert Schmidt, executive director of The Brandes Center at UC San Diego Rady School of Management.
Preparing for Life After Buffett
Looking ahead, Cunningham emphasized that Berkshire’s succession plan will divide Buffett’s many roles among trusted leaders. Greg Abel, who has led the company’s energy business for 25 years, will become CEO. Buffett’s son, Howard, is expected to serve as board chair, while investment duties will remain with Todd Combs and Ted Weschler, who have managed large portions of the portfolio for more than a decade.
The most difficult transition, Cunningham said, will be Buffett’s role as controlling shareholder. His estate plan calls for gradually selling his Class A shares—converted into Class B shares—over 12 years, with proceeds going to charity. While no single shareholder will hold Buffett’s influence, Cunningham noted that a core group of long-term investors will help preserve Berkshire’s culture.
“Greg will get some space,” Cunningham observed. “But he and the team must continue to deliver value. And my bottom line? My money is on Greg.”
Capital Allocation and the Road Ahead
One of Buffett’s greatest skills, Cunningham stressed, has been capital allocation—knowing whether to reinvest, acquire, or buy back shares. That discipline has delivered extraordinary returns for Berkshire over decades.
Today, the company sits on more than $350 billion in cash, raising questions about how successors will deploy it. Cunningham suggested acquisitions of large family-owned firms or Japanese companies could be possible, reflecting Abel’s more international outlook. And for the first time, Berkshire may even consider paying a dividend.
“There’s nothing Biblical about not paying one,” Cunningham said. “If you can’t reinvest a dollar for more than a dollar of value, the rule is to pay it out.”