*

Shareholders anticipate Berkshire will retain long-term

focus

and culture

*

Investors worry the conglomerate may lose Buffett's vision

and

star power

*

Abel said he wants to be "more active" in the way he

managed

subsidiaries

By Jonathan Stempel

OMAHA, Nebraska, May 4 (Reuters) - Berkshire Hathaway ( BRK/A )

shareholders mourning the departure of legendary

investor Warren Buffett anticipate the conglomerate he built

over 60 years will retain its long-term focus and culture but

worry about the loss of Buffett's vision and star power.

Following Buffett's surprise announcement on Saturday that

he would step down as chief executive by the end of the year,

Berkshire shareholders and fans said the Omaha, Nebraska-based

company will remain in good hands once Vice Chairman Greg Abel

takes the top job.

But they said it remains unclear how the $1.16 trillion

conglomerate, which has 189 operating businesses, $264 billion

of stocks and $348 billion of cash, will fare after the man so

interwined with it leaves the stage.

"There has been a premium on Berkshire because of Buffett,"

said Mark Malek, chief investment officer at Siebert.NXT.

"Will people look at it in the same way?"

Richard Casterline, a computer programmer from Denver, said

it was a "bit shocking" to learn of Buffett's departure.

"I'm curious to see what the stock price will do on Monday,"

he said. "I don't think (Abel) elicits the same excitement. It's

not any fault of his own, it's just thinking of who could be as

legendary as those two are. It's just tough shoes to fill."

BUFFETT'S BABY

Still, many see Abel as right for the job.

"This is Buffett's baby, and he thoughtfully and

deliberately planned for an orderly succession that does not

disrupt the value of his life's work," said Daniel Hanson,

senior portfolio manager at Neuberger Berman. "I have full

confidence in Greg's leadership."

Richard Lancaster, an accounting consultant from Charlotte,

North Carolina, likened the change to Steve Jobs handing Apple's ( AAPL )

reins to current Chief Executive Tim Cook in 2011.

"You have two different personalities, two different

approaches," said Lancaster. "Greg has all the qualities Warren

likes in a manager: very sharp individual, and well-versed in

what's in the business climate today and the changes that will

come through disruptive technologies."

Under Buffett, Berkshire's annualized shareholder return has

roughly doubled that of the Standard & Poor's 500.

Buffett's aura was such that when Berkshire disclosed new

common stock investments, it routinely sent the stock prices

higher even if Buffett himself wasn't doing the investing.

Some analysts believe Abel may be more hands-on than Buffett

in overseeing Berkshire's subsidiaries.

"Abel's going to have to tread a fine line between

maintaining a Buffett-like environment, with also making his

mark," said analyst Cathy Seifert at CFRA Research.

And some investors clamor for Berkshire to pay a dividend,

which it has not done since 1967.

ABEL'S WAY

Abel has hinted at changes.

Prior to Buffett's announcement, which Abel hadn't known was

coming, the vice chairman told annual meeting attendees he would

be "more active, but hopefully in a very positive way," in

overseeing Berkshire subsidiaries, though they would continue

running "very autonomously."

Berkshire's businesses are diverse, including Geico car

insurance, the BNSF railroad, many utility and power companies,

a real estate brokerage, and retail brands such as Dairy Queen,

Fruit of the Loom and See's Candies.

Another possible change: how readily Berkshire will unload

businesses it owns, including when they underperform.

Buffett is known as a collector of businesses but has made

exceptions, as when businesses lose competitive advantages.

In 2019, Berkshire sold its Applied Underwriters workers

compensation unit, and the next year shed its newspaper empire

as falling ad revenue led Buffett to brand the industry "toast."

Leaders of most Berkshire businesses have since 2018

reported to Abel, while Berkshire's insurance businesses such as

Geico, General Re and National Indemnity have reported to Vice

Chairman Ajit Jain, which they will continue doing.

Managers praise Abel as a quick study, despite overseeing

businesses as varied as aircraft parts maker Precision

Castparts, Israeli toolmaker Iscar and Borsheims jewelry.

Quick changes are unlikely. Berkshire's sheer size makes

undoing Buffett's work in short order, or making a

transformational acquisition, very difficult.

"Buffett has built such an amazing machine," said Nate

Garrison, chief investment officer at World Investment Advisors.

"It's something that will stand the test of time."

LONG LEGACY

Shareholders said Buffett's legacy will live on.

Sameer Naik, a software architect from Omaha, said Buffett

taught investors to be patient when investing.

"His biggest legacy is giving investors a lot of confidence

they can get rich, slower," Naik said. "If you invest in the

right companies that you understand, and invest over time, good

things will happen."

Pamela Taylor, a Chicagoan who works in technology sales,

said she has studied Buffett's investing style for a long time.

"His strategy of buy-and-hold in particular can be very

different from the quick-sell technique that other investors

use," she said. "That will be his legacy."

One thing many shareholders expect will be downsized is

Berkshire's annual shareholder weekend, which draws tens of

thousands to Omaha for shopping and other events, including the

annual meeting.

"It is an opportunity to interact with other people with the

same moral compass," said Robert O'Connor, a family doctor from

Victoria, British Columbia. "It's our Coachella."