Ned Isakoff: “You got me
blacklisted from Hop Sing’s?”
blacklisted from Hop Sing’s?”
Delivery Man: “She named name!”
—Seinfeld,
“The Race”
“The Race”
Like Elaine Benes in that Seinfeld episode,
Charlie Munger named name.
Charlie Munger named name.
Two names, in fact: Greg Abel and Ajit Jain.
Unlike Elaine Benes’s name-naming, however, the two
named by Munger have nothing to do with Communist agitation and the destruction
of capitalism as we know it—far from it.
named by Munger have nothing to do with Communist agitation and the destruction
of capitalism as we know it—far from it.
Rather, they have everything to do with
Capitalist orthodoxy in its purest, most meritocratic form: who might succeed
Warren Buffett as CEO of Berkshire Hathaway under the scenario, as Munger puts
it, “Buffett left tomorrow.”
Capitalist orthodoxy in its purest, most meritocratic form: who might succeed
Warren Buffett as CEO of Berkshire Hathaway under the scenario, as Munger puts
it, “Buffett left tomorrow.”
Here’s the direct quote from Munger’s comments
written for the 2014 Chairman’s Letter that hit Berkshire Hathaway’s web site
this morning (2015 being the 50th anniversary of Buffett’s takeover
of the company, both men wrote individual retrospectives on the last 50 years
and what the next 50 years might bring):
written for the 2014 Chairman’s Letter that hit Berkshire Hathaway’s web site
this morning (2015 being the 50th anniversary of Buffett’s takeover
of the company, both men wrote individual retrospectives on the last 50 years
and what the next 50 years might bring):
But, under this Buffett-soon-leaves
assumption, his successors would not be “of only moderate ability.” For instance, Ajit Jain and Greg Abel are
proven performers who would probably be under-described as “world-class.” “World-leading” would be the description I
would choose. In some important ways,
each is a better business executive than Buffett…
assumption, his successors would not be “of only moderate ability.” For instance, Ajit Jain and Greg Abel are
proven performers who would probably be under-described as “world-class.” “World-leading” would be the description I
would choose. In some important ways,
each is a better business executive than Buffett…
While Munger’s naming of names does not carry
the same penalty as in the Seinfeld episode—neither man will be banned from
ordering takeout at Hop Sing’s—it does carry far greater ramifications, because
the moment Munger’s comments appeared on Berkshire Hathaway’s web site this
morning, both men’s lives changed forever, for obvious reasons that we won’t
enumerate, since everybody else will be doing that starting, oh, now.
the same penalty as in the Seinfeld episode—neither man will be banned from
ordering takeout at Hop Sing’s—it does carry far greater ramifications, because
the moment Munger’s comments appeared on Berkshire Hathaway’s web site this
morning, both men’s lives changed forever, for obvious reasons that we won’t
enumerate, since everybody else will be doing that starting, oh, now.
Instead, we encourage a careful reading of the
full Berkshire letter—including both Buffett and Munger’s insightful commentary
on what made Berkshire what it has become and where it might go—here.
full Berkshire letter—including both Buffett and Munger’s insightful commentary
on what made Berkshire what it has become and where it might go—here.
Fortunately, our book on the topic of Munger’s
name-naming—“Warren Buffett’s Successor: Who it Is and Why it Matters,” (eBookson Investing, 2013)—was published well before Munger actually chose to name names, but
we don’t have to change a word of it.
name-naming—“Warren Buffett’s Successor: Who it Is and Why it Matters,” (eBookson Investing, 2013)—was published well before Munger actually chose to name names, but
we don’t have to change a word of it.
Jeff
Matthews
Matthews
Author “Warren
Buffett’s Successor: Who it Is and Why it Matters””
Buffett’s Successor: Who it Is and Why it Matters””
(eBooks
on Investing, 2014) Available now at Amazon.com
on Investing, 2014) Available now at Amazon.com
© 2015
NotMakingThisUp, LLC
NotMakingThisUp, LLC
The content contained in this blog represents only
the opinions of Mr. Matthews. Mr.
Matthews also acts as an advisor and clients advised by Mr. Matthews may hold
either long or short positions in securities of various companies discussed in
the blog based upon Mr. Matthews’ recommendations. This commentary in no way
constitutes investment advice, and should never be relied on in making an
investment decision, ever. Also, this blog is not a solicitation of business by
Mr. Matthews: all inquiries will be ignored. The content herein is intended
solely for the entertainment of the reader, and the author.
the opinions of Mr. Matthews. Mr.
Matthews also acts as an advisor and clients advised by Mr. Matthews may hold
either long or short positions in securities of various companies discussed in
the blog based upon Mr. Matthews’ recommendations. This commentary in no way
constitutes investment advice, and should never be relied on in making an
investment decision, ever. Also, this blog is not a solicitation of business by
Mr. Matthews: all inquiries will be ignored. The content herein is intended
solely for the entertainment of the reader, and the author.