New York:
Warren Buffett-led Berkshire Hathaway dropped one of the biggest hints about a possible successor to the billionaire investor, describing India-born Ajit Jain and Greg Abel as "world-leading" performers who are "better" business executives than the octogenarian.
In his much-anticipated annual letter to shareholders, Buffet praised Jain, who manages the Berkshire Reinsurance Group, for the way he has grown the business over the years.
While Buffet stopped short of naming his successor, company Vice Chairman Charles Munger named Jain and Abel, who heads Berkshire's energy business, while talking about possible successors to Buffett.
"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," Munger said in his letter to the shareholders.
He added that he believes that neither Jain nor Abel would leave Berkshire, "no matter what someone else offered" or desire much change in the Berkshire system.
Munger said 63-year-old Jain "created out of nothing" an immense reinsurance business that produced both a huge "float" and a large underwriting gain.
Buffett also lauded Jain's "unmatched" underwriting skills, saying he insures risks that no one else has the desire or the capital to take on.
"His operation combines capacity, speed, decisiveness and, most important, brains in a manner unique in the insurance business. Yet he never exposes Berkshire to risks that are inappropriate in relation to our resources," he said.