Warren Buffett Issued a Stark Warning About His Favorite Stock 11 Years Ago. He and His Successor, Greg Abel, Then Proceeded to Pile $82 Billion Into It.
“A sound investment can morph into a rash of speculation if it is bought at an elevated price,” according to the Oracle of Omaha.
Overview
It's been a year of historic change for the trillion-dollar company that Warren Buffett and Charlie Munger built, Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB).
On Dec. 31, the Oracle of Omaha officially retired as CEO after more than half a century, turning the reins of the company's $354 billion investment portfolio over to longtime understudy, Greg Abel. Then, on Sept. 18, a press release and attached letter from Warren Buffett to shareholders announced his transition from chairman of Berkshire's board to chair emeritus, with his son, Howard Buffett, becoming the new chairman of the board.
Details
With Warren Buffett a fixture for decades, change is an uncommon theme for Berkshire Hathaway's shareholders. But one theme endures, whether Buffett or Abel is running the show: an unwavering focus on value.
Source
Originally published at www.fool.com.