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After 60 years at the helm of Berkshire Hathaway, today is Warren Buffett's last day as the company's CEO. Joining us now at Post 9 is Gordon Russo and Quinn chairman and partner Thomas Russo. Thomas, great to see you and so Thank you glad you could come in and talk about this.
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Of course, known known Warren and been investor Yes for a very long time and uh we'd just love your thoughts initially on um what do you think changes tomorrow if anything? With how Warren relates to Greg Abel, the Yeah. current the Yeah. incoming CEO CEO and and how we should
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start to think about the management of the company now. Yeah, yeah.
Thomas Russo (Chairman and Partner) 00:34.000
I think I think the goal will be to continue as if nothing has happened, but it has and it it requires different different relationships up. I think I think Warren will remain active. Um ideally he's have a relationship with Warren uh with Warren would have a relationship with
Thomas Russo (Chairman and Partner) 00:53.840
Greg much like Charlie had with Warren. And and they were source of information to feed back. There's a great story with Warren and Charlie um that on an afternoon end of the summer weekend um Warren would deliver an idea to Charlie and Charlie would uh say Warren is the
Thomas Russo (Chairman and Partner) 01:12.240
stupidest idea I've ever heard. At least do me a favor, go home and and take a look and they come back the next day and they reverse the opinion. No, no, no. Charlie, you were right. It's terrible. No Warren you were. In that banter back and forth Sure. sort of surfaces truth Um
Thomas Russo (Chairman and Partner) 01:27.680
Yeah, there's the core belief, you know, that You You want to find businesses that have the capacity to reinvest, they have strong powerful brands. They They have management who can take long-term bets which is a scarce group. It tends to be family-run companies. They'll still
Thomas Russo (Chairman and Partner) 01:46.320
look for family-run companies, businesses where where they can they can make the long-term decisions and free themselves up from Wall Street. Yeah. It's really been the the unhinging of Berkshire from sort of Wall history requirements has really helped the trajectory of 4
Thomas Russo (Chairman and Partner) 02:04.920
million percent versus something 19 of the S&P or something.
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When uh when Warren uh in May did announce that he would be stepping back at the end of the year, um he still said, "You know, look, I'm going to be there if there are large opportunities. I'll be looking. I'll be help helping out." You get the impression he was hopeful that
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maybe there would be one of these, you know, big opportunistic plays to be made. Not yet. Right. Um, what do you make of that and and make of the fact Yes. that they've just allowed cash to build up
Thomas Russo (Chairman and Partner) 02:35.280
Well, I have to I have to just remind everybody that where the cash sits is called assets. Right. And where the conversation exists is called liabilities. And and people are walking around with a big sack on their back saying, "Oh my, how are we ever going to unburden ourselves
Thomas Russo (Chairman and Partner) 02:52.400
with this liability?" Yeah, right. Well, the markets will give them every reason to unburden themselves because the market will deliver At a time, when it's no longer 400 billion. It feels like 600 or 700 because because what you're buying will have will have stumbled. And and
Thomas Russo (Chairman and Partner) 03:11.440
you you see the ingredients of of stumbling being sort of assembled by extra leverage in the system and and by valuation excesses in the system. Right. No, it it it's across the board thing things you have to be fairly opportunistic but but the note emotion that that $400
Thomas Russo (Chairman and Partner) 03:32.320
billion hoard is there anything other than an asset will be dismissed when when someone finds themselves in need of money and there's only one place to go. Whether it's insurance or whether it's other services, they'll they'll go to warrant and the margins will be fine.
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So, you mentioned the family businesses and these other companies that that really seek to sell to Berkshire Hathaway. Is there any risk that uh won't be as much the case if Warren himself is not there eventually?
Thomas Russo (Chairman and Partner) 04:04.160
Well, I think I think Greg's been there and then so often proceeds over time. You know, it's not it can be sort of like sign of the line right off the bat but Yeah typically they get to know each other. And the ambassador of that interchange has been Greg increasing. It's
Thomas Russo (Chairman and Partner) 04:22.080
example especially so in in Japan with the with the multiple holding companies that they've now invite a warrant into hold increasing amounts of their capital. Well, that that can continue to evolve favorably to Berkshire and increasing the capital.