WORLD> America
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WORLD> America
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Buffett says US government is doing the right things
(Agencies)
Updated: 2009-05-03 15:55 "I truly don't see that as much of an issue as other people make it," Gallmeyer said. But some shareholders, like Dennis Hospodarsky of Waterloo, Iowa, were a little worried about the succession issue. "I hope he's as good at picking a successor as he is at stocks," Hospodarsky said. Both Buffett and Munger tried to reassure shareholders that Berkshire's future success is not solely dependent on their continued service because the company has a strong culture of responsibility and trust. "In show business, they say something 'has legs' if it is going to last. I think Berkshire Hathaway's system 'has legs,'" Munger said. Buffett offered a few new clues about who'll replace him at the helm of Berkshire Hathaway, but Buffett still refused to name the people who will become Berkshire's next chief executive or its next chief investment officer. Buffett received several succession questions. Three of Berkshire's internal managers are candidates to be CEO. And the board has a list of four internal and external investment managers who could manage Berkshire's $49 billion stock portfolio and investing its $24.3 billion cash. Buffett says none of the investment managers likely beat the S&P 500 last year, but over the past 10 years they all beat the average performance at least modestly if not significantly. Buffett said he doesn't see any value in choosing a CEO successor now to follow him around Berkshire's 19-person headquarters because all the candidates are already running businesses now. Plus the other two might leave Berkshire if a successor was named. "It'd be a waste of talent," Buffett said. "I don't really see any advantages in having some crown prince around." Buffett has said his son Howard will take over as chairman to ensure Berkshire's culture is preserved. Howard Buffett already serves on the board. Berkshire shareholders rejected a resolution that would have required the company to produce annual sustainability reports about the company's subsidiaries and investments. Nearly 703,000 votes were cast against the measure and only 49,000 for it. The group that presented the resolution wanted the company to disclose any environmental, social or labor rights risks associated with Berkshire's holdings. Simon Billenness, who presented the resolution, said it would have required Berkshire to disclose more about labor problems at its apparel subsidiary Russell Athletic, which has been criticized for closing a plant in Honduras where a labor union had been organizing. But Berkshire officials defended the way they treated workers at the plant after Fruit of the Loom acquired Russell in 2006, and they said the plant closing was part of the company's response to the recession. Several other Russell plants closed last year, too. Berkshire's board recommended that shareholders reject the resolution, saying generating the report would require a substantial amount of time and produce little benefit. Billenness said he was pleased with the level of support the resolution received.
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