Hedge fund manager Bill Ackman has expressed optimism about the future of Berkshire Hathaway (NYSE:BRK) following the Warren Buffett era.
What Happened: Ackman, the head of Pershing Square Capital Management, criticized Buffett’s investment approach, deeming it excessively cautious. He voiced his belief that the conglomerate would fare better under the stewardship of Buffett’s intended successor, Greg Abel.
Ackman pointed to the Burlington Northern Railroad, a Berkshire subsidiary, as an example of inefficiency. He argued that it was the least efficiently managed among all railroads years ago. Ackman anticipates Abel to take a more proactive role in improving the company’s businesses.
“Now you’re going to have more of an operator in charge of Berkshire and I think there’s a lot of value that can be created at Berkshire with better operations,” he said …
