Current Magazine

Warren Buffett Has Prostate Cancer; What Does This Mean for the Sage of Omaha’s Multi-billion-dollar Company?

Posted on the 18 April 2012 by Periscope @periscopepost
Warren Buffett has prostate cancer; what does this mean for the Sage of Omaha’s multi-billion-dollar company?

Billionaire investor Warren Buffett. Photo credit: Wikipedia commons

Billionaire investor Warren Buffett has revealed that he has prostate cancer. The Berkshire Hathaway CEO made the announcement on Tuesday in a letter to shareholders, but said that his condition “is not remotely life-threatening or even debilitating in any meaningful way”.

Despite Buffett’s insistence that he is fit to continue, the statement has commentators questioning the future of the $201 billion company, particularly as the 81-year-old opted not to name his future successor as chief executive. The Los Angeles Times reported that Berkshire stock fell briefly on the day of the announcement, but rallied in after-hours trading.

The importance of Warren Buffett. Known as the Sage of Omaha, Buffett has spent fifty years at the helm of Berkshire Hathaway, which is, as The New York Times pointed out, a highly influential corporation:With operations that touch nearly aspect of the nation’s economy, it is sometimes considered a proxy for the business health of the United States.” Buffett, America’s second richest man, hit the headlines in 2011 thanks to his outspoken views on making the US tax system fairer. President Barack Obama’s resulting ‘Buffett rule’ bill, which would have seen a 30 percent tax rate for households earning over $1 million, was blocked by the Senate on Monday.

Politico’s Darius Dixon provided a list of ten little-known Warren Buffett facts, including that the billionaire investor plays bridge with Microsoft chief Bill Gates and that his father was a House Republican.

Why make the announcement? “His disclosure is less an acknowledgement of his mortality than of his celebrity,” argued Diane Brady at Businessweek, pointing out that Buffett’s fame means he is under constant scrutiny. Buffett is so inextricably linked with Berkshire that he needs to head off health rumours in order to protect the company: “Any hint that he’s not thriving on a steady diet of steak and Cherry Coke could send Berkshire Hathaway stock plunging if the company’s iconic founder seems at all coy about his health,” Brady wrote.

Hedge fund manager Whitney Tilson told CNBC that he saw no reason at the moment to sell off Berkshire Hathaway shares, despite Warren Buffett’s announcement: “We believe there’s a good chance that Buffett will be running the company for the next 5 years and maybe even the next 10 years and today’s announcement doesn’t change that.”

Succession mystery. Buffett has apparently already identified his successor, but has not revealed the name to the Berkshire board – nor, surprisingly, even to the person he has chosen. Walter Hamilton suggested in The Los Angeles Times that this was an attempt to protect the mystery successor from “a media blitzkrieg”, but that “the cancer diagnosis will put pressure on Buffett to reveal the person’s name”. Motley Fool analyst Joe Magyer told the paper that the succession issue was an ongoing problem made worse by the announcement of Buffett’s condition: “One of the biggest drags on the stock have been questions about succession… Even if Buffett comes out perfectly healthy, it’s going to be a monkey on the back of the stock for a long time.”

Watch an interview with Warren Buffett on his tax opinions below,

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Long Walk 2018 – T Minus 3 Days

    Long Walk 2018 Minus Days

    T minus 3 days till the Great Long Walk of 2018 takes place. This year I’ll be walking from the tip of Cape Cod to the Sagamore Bridge at the base of the Cape... Read more

    The 24 September 2018 by   Wendythomas
  • Free CBD Vape Oil Sample : Pure CBD Oil, Miracle Drop, CBD Oil Benefits

    Free Vape Sample Pure Oil, Miracle Drop, Benefits

    Share This PostFree CBD Vape Oil Sample : Everything You Need To Know About Cannabidiol – 100% Pure CBD Oil, Miracle Drop Benefits – Now Available!... Read more

    The 24 September 2018 by   Tomkey
  • Stop Reading ‘How-To Raise Your Kids’ Articles. Midlife Margaritas Guide to...

    Stop Reading ‘How-To Raise Your Kids’ Articles. Midlife Margaritas Guide Raising Kids.

    I am a big fan of websites like “Grown And Flown” and “Scary Mommy”. They are filled with smart, funny and insightful articles about all the Mommy stages raisin... Read more

    The 24 September 2018 by   Midlifemargaritas
  • Favorite Movie #53: Bell, Book, and Candle

    Favorite Movie #53: Bell, Book, Candle

    Favorite movies that have had an impact on me - #53 - Bell, Book, and Candle (1958) - A middle-aged Jimmy Stewart may seem a strange choice for a romantic... Read more

    The 24 September 2018 by   Xoxoxoe
  • Magiczne Miasta: Włocławek Was 70 Not Out – I Have Visited 70 Places in Poland

    Magiczne Miasta: Włocławek Have Visited Places Poland

    “Someday you will find me, caught beneath the landslide; in a champagne supernova in the sky” – Noel Gallagher. Magiczne Miasta: Włocławek was 70 Not Out –... Read more

    The 24 September 2018 by   Northernirishmaninpoland
  • Wild Wood

    Here is Wild Wood! Wild Wood. 30″ x 40″, Oil on Wood, © 2018 Cedar Lee This painting was inspired by a photo my friend took on Wildwood Trail, a... Read more

    The 24 September 2018 by   Artbycedar
  • Video of the Week: Brahma Mudra

    Video Week: Brahma Mudra

    This version of Brahma mudra is a practice that includes both sound and movements of your head and neck. Practicing this mudra has practical benefits for the... Read more

    The 24 September 2018 by   Ninazolotow