Background and Career of Greg Abel
Gregory Edward Abel was born on June 1, 1962, in Edmonton, Alberta, to a working-class family. Growing up, Abel took on various part-time jobs, including cleaning discarded bottles and refilling fire extinguishers. He graduated from the University of Alberta in 1984 and worked for PricewaterhouseCoopers and the energy company CalEnergy before joining Berkshire Hathaway Energy in 1992.
Abel became the CEO of MidAmerican in 2008 when Berkshire Hathaway Energy was still known as MidAmerican Energy. Today, he oversees Berkshire Hathaway’s non-insurance operations, including BNSF Railway, Berkshire Hathaway Energy, and numerous chemical, industrial, and retail businesses. In the past year, he has also taken on some of Warren Buffett’s capital allocation responsibilities.
Maintaining Berkshire Hathaway’s Investment Philosophy
As Warren Buffett prepares to step down as CEO of Berkshire Hathaway, investors and analysts anticipate that Greg Abel will maintain the company’s long-standing investment philosophy. This approach involves investing in businesses for the long term and avoiding dividend payments to shareholders.
Berkshire Hathaway, valued at approximately $1.18 trillion, owns assets such as railroads, insurance companies, and an ice cream manufacturer. The company has been planning for Buffett’s eventual departure since he took the helm in 1965. Despite this preparation, Buffett’s successor was announced as a surprise when he revealed that Abel would replace him as CEO later in the year.
Buffett, known as the “Oracle of Omaha,” has hinted at his advanced age and expressed confidence in Abel’s readiness for the role. “It works much better with Greg Abel than with me, because I don’t want to work as hard as he does,” Buffett said.
Abel’s Leadership Style
Colleagues describe Abel as a sharp questioner who meticulously examines financial metrics and seeks a deep understanding of the businesses he oversees. His inquiries ensure that company guidelines and plans are thoroughly considered, according to Chris Kelly, CEO of HomeServices of America, the largest residential real estate agency in the United States.
“You get smarter answers from a conversation with him,” Kelly said.
Key Questions and Answers
- Who is Greg Abel? Gregory Edward Abel is a Canadian-born executive who was born in Edmonton, Alberta, on June 1, 1962. He has worked for Berkshire Hathaway since 1992 and is currently the vice chairman overseeing non-insurance operations.
- What is Berkshire Hathaway? Berkshire Hathaway is a multinational conglomerate holding company, led by Warren Buffett since 1965. The company has a market capitalization of approximately $1.18 trillion and owns various businesses, including railroads, insurance companies, and manufacturing firms.
- What is Berkshire Hathaway’s investment philosophy? Berkshire Hathaway focuses on long-term investments in businesses, avoiding dividend payments to shareholders. This approach has been a hallmark of Warren Buffett’s investment strategy.
- Why is Greg Abel expected to maintain Berkshire Hathaway’s investment philosophy? Investors and analysts anticipate that Abel will uphold Berkshire Hathaway’s long-standing investment philosophy, as he has been closely involved in the company’s decision-making processes.
- What is Greg Abel’s leadership style? Colleagues describe Abel as a meticulous and insightful leader who examines financial metrics in detail and seeks a deep understanding of the businesses he oversees.
