GE Breakup Raises Questions About Future of Conglomerate Model

I am quoted in a Bloomberg article on General Electric and Berkshire Hathaway:

Berkshire, for its part, has been somewhat insulated from activist calls for a breakup partly because Buffett remains at the helm. But he disclosed earlier this year that his successor would likely be a key deputy, Greg Abel, if and when he steps down — a reminder to investors that he’ll one day have to pass the reins. Part of the key to Berkshire’s ability to remain a conglomerate has been its decentralized management style, said David Kass of the University of Maryland.

“The managers at Berkshire have almost complete independence in running their businesses. They don’t have to go through the red tape of corporate headquarters as GE has and most companies do,” said Kass, a professor of finance at the university’s Robert H. Smith School of Business. “As long as Buffett is there, the structure will stay the same. And after Warren Buffett is no longer there, it will probably be Greg Abel running the company, they’ve already pledged to maintain the culture.”