What leaders of conglomerates may want to learn from Warren Buffett about transition: Ajit Jain explains

Buffett also emphasized that Berkshire’s success does not hinge on frequent hiring.

Ajit Jain credited Warren Buffett for the smooth transition at Berkshire Hathaway, wherein operating executives now reach out to Greg Abel directly for all operational matters. Answering a question about who operating managers deal with for their business issues now, Buffett stated that "they prefer" to talk to Abel or Jain, but Ajit Jain revealed the secret sauce.

Jain explained that the transition was made possible by Buffett’s clever approach to dealing with managers. He noted that even after the transition, many managers would continue to call Buffett for various issues. However, Buffett skillfully handled those calls, speaking to them kindly, making them feel good and really important, while simultaneously not providing them with the answers they sought. "As a result, the transition took place. People got the message and were very responsive to it. It’s a non-issue for us today," said Jain matter-of-factly.

Buffett, however, downplayed his role, stating, “I don’t operate at the same level of efficiency as I did 30-40 years ago. I receive as few as zero calls from operating executives currently,” Buffett said. “Abel handles those.” He further added that Abel understands the problems of operating executives better and offers suggestions, while Jain possesses unparalleled wisdom about insurance. "Why settle for me when you have Greg Abel and Ajit Jain," he quipped.

Abel serves as the chairperson of non-insurance operations at Berkshire Hathaway Energy, while Jain is the vice-chairperson of insurance operations at Berkshire Hathaway.

Buffett also emphasized that Berkshire’s success does not hinge on frequent hiring. "We have solved the problem for the next 20 years unless something untoward happens," said Buffett. In May 2023, Buffett confirmed that Abel would eventually succeed him, a revelation that had actually been hinted at by Charlie Munger during the previous year's annual shareholder meeting.