2014: Who will succeed Charlie Munger?

BECKY QUICK: This question comes from Fred Ireman (PH) in Richmond, Virginia, and it’s addressed to you, Warren.

He says that, “During the past several years, much has been written and many have speculated about your successor. I shall not even go down that path, as it would cause you to repeat yourself.

“However, has there been any discussion at your board meetings about a replacement for your partner, longtime friend, and co-chairman, Charlie Munger?

“Has it been determined Berkshire will continue to be led by a similar dynamic duo? Two magnificent investor minds, each providing a unique point of view, have been a major reason the business has performed magnificently over the decades and has delighted the shareholders.”

WARREN BUFFETT: Well, Charlie is my — he’s my canary in the coal mine. (Laughter)

Charlie turned 90. And I find it very encouraging how well he’s handling middle age. (Laughter)

So I hope to be able to do the same thing myself.

No — you raised a point, which is — I hadn’t thought about, but I’m a little sensitive now that you raised it.

They always talk about replacing me, but they never talking about replacing Charlie.

I do think — I think it’s very likely, incidentally, that whoever replaces me as CEO probably has, over the years certainly, developed — they’ll never be able to develop another Charlie — but they’ll develop somebody that they work with very closely. It’s a great way to operate.

Berkshire is better off because the two of us have worked together than if either one of us had been working individually, there’s no question about that. (Applause)

And —but I do think, you know, we saw it with Roberto Goizueta and Don Keough at Coke, we saw it with Tom Murphy and Dan Burke at Cap Cities. I mean, these were magnificent companies.

And I think that in both cases that I just named, I think that they accomplished far more because they had two incredible people running them who admired and worked well with the other. And they were complimentary, in terms of the talents they brought.

In many ways, it’s a great way to operate. You can’t will it to somebody.

But I would be very surprised if, a few years after my successor takes over, or maybe sooner, that there isn’t some relationship, a partnership, that enhances the CEO’s not only — not only achievements — but the fun they have.

And — but so far, nobody’s brought up, in the meeting, any successor to Charlie.

And frankly, I have a lot of trouble thinking of anybody that could be a successor to Charlie. (Laughs)

Charlie, you want to comment? I’ve got to give you a chance. (Laughter)

CHARLIE MUNGER: I don’t think the world has much to worry about. Most 90-year-old men are gone soon enough. (Laughter)

WARREN BUFFETT: Well, the canary has spoken. OK. (Laughter)