"They both have Berkshire in their blood".
This move makes the succession plan clear for investors, said Andy Kilpatrick, who has followed Berkshire for years while writing and updating "Of Permanent Value: The Story of Warren Buffett". He said jokingly, "I wasn't much to start with". "They are the two key figures at Berkshire...this would've made sense five years ago, too".
Responding to an analyst report that predicted Buffett could run Berkshire for the next 10 years, the Oracle of Omaha said that sounds a bit long without getting anymore specific.
It was Munger's idea for Abel, Jain, and himself to all have vice chair titles, Buffett said.
"When it happens or how or anything else, I don't know".
The company said Wednesday that Buffett and Charles T. Munger, Berkshire Hathaway's vice chairman, will retain their positions on the board.
In late-morning trading, Berkshire Class A shares rose $2,010 to $306,530 and its B shares rose $1.61 to $204.63. Jain will oversee all of Berkshire's insurance operations. Meanwhile, Jain, who's now executive vice president of National Indemnity, will be vice chairman of insurance operations.
"If Jain become CEO it would be great, but the complexity of the insurance business requires someone there with more day-to-day supervision", Wedgewood's Rolfe said.
Todd Combs and Ted Weschler, who are Buffett's investment deputies, are expected eventually to succeed Buffett as Berkshire's chief investment officer.