Swiss Bank Remains Bullish on Berkshire (BRK-A, BRK-B) After Buffett Announces Resignation

Swiss bank UBS maintained a Buy rating on Berkshire Hathaway (BRK-A,BRK-B) after its longtime CEO, Warren Buffett, disclosed that he would step down from the role by the end of this year.

The bank kept a $606 price target on the shares.

No Major Changes Anticipated

Buffett was expected to relinquish the CEO position to his successor, Greg Abel, at some point, but the timing of the move was previously unknown, UBS noted.

Nonetheless, Berkshire had already begun relying less on Buffett's investing acumen, as the conglomerate has many extremely profitable businesses that are unrelated to its portfolio of stocks, the bank pointed out.

UBS expects Abel to refrain from making any significant changes to the company's operations, culture, and strategy.

Berkshire's Other Positive Attributes

UBS noted that the conglomerate has a great deal of capital. Additionally, its many businesses which operate in a multitude of fields, provide it with a great deal of information that it can use to help it make investment decisions, according to UBS.

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Disclosure: None. This article is originally published at Insider Monkey