In many companies, the President makes a significant contribution and the stock moves higher. If that period is sustained for a few years, the name of the person becomes known beyond the company. If they manage to do it for decades, the financial press regularly will cover the individual. However, as time goes on people also get older and eventually succession planning takes place. A prime example of someone who has run an organization for decades is Warren Buffett.

In an article from Reuters, one of the widely known businesses owners is Warren Buffett and at present he is 95 years old and he has recently stepped down from the CEO of Berkshire Hathaway. Mr. Buffett remains Chairman; the new President and CEO is Greg Abel.

Taking over as President comes with a heavy burden and as one of the most successful companies in the world, there are many opportunities to do something meaningful. The company has $373 billion in cash at its year-end.

Berkshire will buy back some of its shares, something it has not done in two years. The company does not pay a dividend and does not expect to in the future.

Mr. Abel said he bought 21 Berkshire Class A shares for $14.6 million, he now holds about 249 shares worth about $182 million. He envisions running the company for 20 years.

Berkshire’s portfolio of companies include: Geico Corp car insurance, BNSF Railroad, Berkshire Hathaway Energy, companies such as Dairy Queen, Duracell, Fruit of the Loom, about $300 billion of stocks led by Apple, Coca Cola and American Express and a host of industrial and manufacturing companies.

Linking to dividend paying stocks, often times one of the many variables you are drawn to a company is the President and what you think of the person. As time goes by and the person executes you like the company even more, but eventually the person retires what do you do? what steps does the new President do to make the company on their vision? Do you keep the stock or find alternatives.

There are more questions than answers, till the next time – to raising questions.