Buffett refuses to divulge the name of his successor

In his annual investor letter, Buffett said Berkshire’s board had identified someone who will replace him as CEO when the 81-year-old investor eventually leaves the post.

But he did not identify that person in the letter and he rejected suggestions that he should. The public does not know who will be the next CEO of other major corporations, he said, and there is a disadvantage to having a ‘crown prince’ in place.

Buffett would say very little about the successor, other than that he is someone the board has had in mind for years and that the person does not know. He also said the heir apparent was likely to come from the ranks of dozens of chief executive officers at Berkshire operating companies.

One person not on the list, though, is David Sokol. Once one of Buffett’s top lieutenants, and often assumed to be his heir apparent. Sokol left Berkshire last year amid a scandal over his stock trading while at the company.

The Sokol matter largely dropped from public attention in recent months, but Buffett said yesterday that he assumed there is an ongoing investigation, as Berkshire has already paid more than $1.4m in legal bills for Sokol.

Buffett, at the helm of Berkshire for 47 years, controls a conglomerate that employs more than 270,000 people worldwide.