To write a case discussing the following using the succession issue in Study

To write a discussing the following using the succession issue in the article as a filter - Case Study Example This short paper looks at some of the important considerations before Mr. Perez can make up his mind. Although Mr. Buffett and his co-manager, which is Mr. Munger, have both agreed that Mr. Todd Combs fits their criteria for their successor, the market did not react very favorably. In fact, on the date of their announcement of an heir apparent, the stock price of the Berkshire Hathaway shares had slumped by 1.3% on the news (Ng, Pulliam & Zuckerman 1). Obviously the market is not as enthusiastic about Mr. Combs as both Mr. Buffett and Mr. Munger are. There are several important issues that must be resolved in full satisfaction for such an important matter as succession as a fund manager of several billions worth of investments. In particular, the markets did not share their confidence in Mr. Combs purported ability to make the same investment decisions as Mr. Buffett had made over the years to build his Berkshire Hathaway into a real giant in the investment world. A memorandum-letter that follows in the next pages details some of the crucial considerations to arrive at a sound risk assessment. Greetings and good day! It has come to our attention that you are interested to make an investment in Berkshire Hathaway but is concerned about the succession issue at the firm once Mr. Buffett retires soon. The firm had found a worthy successor in the person of a Mr. Todd Combs whom both Mr. Buffett and Mr. Munger had announced to a be a perfect fit. In this connection, here is our assessment of the investment risks involved once Mr. Combs will take over the entire management of Berkshire Hathaway’s investing activities. Investment Philosophy – perhaps this is the most crucial issue or aspect whenever the issue of succession is discussed in any organization, more especially in an investment firm. In this connection, Mr. Combs was found by Messrs. Buffett and Munger to fit exactly with the