Buffett's cleared out. Who'll step up to the table?

After more than six decades at Berkshire Hathaway, Warren Buffett has gotten his fill.

Today, Buffett stepped down as chairman of his famed company, announcing that he would be replaced by his son Howie Buffett. And while the Oracle of Omaha officially vacated his role as CEO of Berkshire in January, today’s exit marks Buffett’s final departure from top leadership at the firm.

“Father Time always wins,” Buffett wrote in a letter to shareholders; with the titan turning 96 this year, it’s hard to argue with that.

Now you see me

Although he’ll no longer lead at Berkshire, Buffett probably won’t go quietly into retirement. (Look no further than his former business partner Charlie Munger, who was making cracks on crypto all the way to his casket.)

But as the Oracle scales back, investors are scrambling to anoint a new seer. So, who could take Warren Buffett’s place at the crystal ball?

The next in line. Greg Abel is a natural choice to watch as Buffett’s successor. A longtime Berkshire leader, Abel headed up Berkshire Hathaway Energy before gaining the top spot.

• His view: Keep strong continuity with what made Buffett’s Berkshire great—durable moats and patient stewardship of investments.
• Blind spots: Though he was named as CEO successor more than four years ago, Abel is still unproven. And his work so far hasn’t shown clairvoyance: Berkshire has underperformed the market since he took the helm.

The renegade. As founder of ARK Invest, Cathie Wood made a name for herself on disruption. The investor has taken aggressive bets on emerging tech—like an early championing of Tesla—and her firm has also become a heavy hitter in ETF performance.

• Her view: Run towards danger, then ride the wave.
• Blind spots: While Wood was once praised for going all-in on tech innovators, critics hold her risky approach responsible for some of the fund’s biggest flops.

The doom diviner. Michael Burry came to influence by predicting disaster. Best known as the progenitor of The Big Short, Burry accurately forecast 2008’s housing crash—earning a nod from Buffett himself, who called him an industry Cassandra.

• His view: Although he closed his hedge fund last November, Burry is still in on short selling. He’s recently been shorting Nvidia.
• Blind spots: Because he predicted the 2008 crash, Burry is ready to predict the next one. Critics say he projects storm clouds more than most (recently foreseeing a 1987-style stock crash, for example).

No crystal ball

Buffett occupied an idiosyncratic place in investing: one that paired smart stewardship with a long-term view, and approachable picks that favored value over flash.

Perhaps no portfolio manager can truly take up his mantle. But savvy investors who know where to look in a post-Oracle age—and the spots to keep an eye on—can emerge with their own solid succession plan.—GR