Will Berkshire Hathaway Succeed After Warren Buffett Leaves?

Berkshire Hathaway (NYSE: BRK.B) has long been synonymous with its legendary leader, Warren Buffett. The conglomerate recently received a downgrade from KBW, citing concerns over Buffett's exit, as well as problems in some of its key areas of business. Overall, I think that any pullback in the stock is a buying opportunity. To think that Warren Buffett has been the only one making decisions at Berkshire Hathaway seems a bit naive. His cohort is good at what they do. Moreover, the thing that gets ignored about Buffett's succession is how much money the Oracle of Omaha is leaving on the table for investment. Buffett has amassed a giant cash pile, which gives the company a great deal of maneuverability in the coming years in terms of investment options.According to CNBC, KBW's downgrade reflects mounting worries about Berkshire's ability to sustain performance without Buffett's steady hand. The firm pointed to ongoing challenges in its core operating units, which include its railroad division and its insurance businesses. While the firm could certainly be correct that there are headwinds facing these areas of Berkshire's business, they aren't necessarily permanent, and they don't change the fundamental strength of Berkshire's diversified model.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool