Berkshire Hathaway 2010 Annual Report Download - page 104

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At my death, the Buffett family will not be involved in managing the business but, as very substantial shareholders, will
help in picking and overseeing the managers who do. Just who those managers will be, of course, depends on the date of my
death. But I can anticipate what the management structure will be: Essentially my job will be split into two parts. One executive
will become CEO and responsible for operations. The responsibility for investments will be given to one or more executives. If
the acquisition of new businesses is in prospect, these executives will cooperate in making the decisions needed, subject, of
course, to board approval. We will continue to have an extraordinarily shareholder-minded board, one whose interests are
solidly aligned with yours.
Were we to need the management structure I have just described on an immediate basis, our directors know my
recommendations for both posts. All candidates currently work for or are available to Berkshire and are people in whom I have
total confidence. Our managerial roster has never been stronger.
I will continue to keep the directors posted on the succession issue. Since Berkshire stock will make up virtually my entire
estate and will account for a similar portion of the assets of various foundations for a considerable period after my death, you
can be sure that the directors and I have thought through the succession question carefully and that we are well prepared. You
can be equally sure that the principles we have employed to date in running Berkshire will continue to guide the managers who
succeed me and that our unusually strong and well-defined culture will remain intact. As an added assurance that this will be the
case, I believe it would be wise when I am no longer CEO to have a member of the Buffett family serve as the non-paid,
non-executive Chairman of the Board. That decision, however, will be the responsibility of the then Board of Directors.
Lest we end on a morbid note, I also want to assure you that I have never felt better. I love running Berkshire, and if
enjoying life promotes longevity, Methuselah’s record is in jeopardy.
Warren E. Buffett
Chairman
STOCK PERFORMANCE GRAPH
The following chart compares the subsequent value of $100 invested in Berkshire common stock on December 31, 2005
with a similar investment in the Standard and Poor’s 500 Stock Index and in the Standard and Poor’s Property—Casualty
Insurance Index.**
DOLLARS
2009 20102008200720062005
60
80
100
120
140
160
180
113
S&P 500 Property & Casualty Insurance Index
S&P 500 Index
Berkshire Hathaway Inc.
H
E
B
100
124
116
122
97
160
69
109
77 97
112
136
84
E
E
E
E
B
B
B
B
B
112
77
H
H
HH
H
E
H
E
B
*Cumulative return for the Standard and Poor’s indices based on reinvestment of dividends.
** It would be difficult to develop a peer group of companies similar to Berkshire. The Corporation owns subsidiaries
engaged in a number of diverse business activities of which the most important is the property and casualty insurance
business and, accordingly, management has used the Standard and Poor’s Property—Casualty Insurance Index for
comparative purposes.
102