Buffett praises Jain; adds to Indian-origin successor rumour

He was replying to queries whether Jain would succeed him as chief of Berkshire Hathaway,a US-based investment conglomerate with interests in a host of American and global blue-chip companies.

Jain currently heads reinsurance business of Berkshire Hathaway and his name has consistently figured among probable candidates to succeed Buffett after his retirement.

Buffett has been expressing his desire to retire for quite a few years now and has been saying that he would prefer someone from inside the group to succeed him.

Besides Jain,the others rumoured to succeed Buffett include NetJets and MidAmerican Energy Chairman David Sokol,MidAmerican Energy CEO Greg Abel,Geico CEO Tony Nicely and Burlington Northern Santa Fe CEO Matt Rose. All these companies are part of Buffett’s sprawling business empire.

Buffett did not give any direct answer to queries on whether Jain would succeed him,but said that Jain was an extraordinary person.

On a lighter note,Buffett said: “He (Jain) is not looking to take my job … but he is an extraordinary person.”

Recalling his first meeting with Jain,Buffett said: “On a Saturday in 1985 (when I first met him),I was looking at him and I knew I was talking to a person of incredible talent.”

“He (Jain) loves what he does … he is extraordinary in business,he is an extraordinary human being … he is remarkable,” he said.

Showering further praises,Buffett said Jain was “like a brother,like a son… (he) excels in every single task he takes … he has been more than generous throughout his career.”

Buffett went on to say that Jain could have made more money outside Berkshire,but he was unbelievably hardworking,smart and could have probably made more money for Berkshire than I have.”

The legendary investor said that he talks to Ajit virtually every day,except for weekends,and has been doing so every year for about 25 years now.

“He is a close friend,working with me on a joint goal,” he added.

Last month in his annual letter to shareholders also,Buffett had praised Jain for having added “great many billions of dollars” to the value of Berkshire Hathaway.

Jain,who has been with the Buffett-led conglomerate for over 25 years,is in charge of Berkshire Hathaway Reinsurance Group.

“Ajit (Jain) insures risks that no one else has the desire or the capital to take on. His operation combines capacity,speed,decisiveness and,most importantly,brains in a manner that is unique in the insurance business,” Buffett wrote in his 2010 annual letter to shareholders.

According to the letter,Jain has created an insurance business with float of USD 30 billion and significant underwriting profits,a feat that no CEO of any other insurer has come close to matching.

“In the past year,Ajit has significantly increased his life reinsurance operation,developing annual premium volume of about USD 2 billion that will repeat for decades,” Buffett noted.

Last year,Buffett had described Jain as a “superstar”. For the year ended 2010,Berkshire Hathaway’s profit jumped to USD 7.9 billion from USD 5.19 billion in the year-ago period.

Berkshire Hathaway has business interests across diverse sectors apart from significant stakes in global majors including Coca-Cola and ConocoPhillips.

Buffett,whose words on the economy are closely watched,said that general business climate this year is expected to be “somewhat better” than that of 2010.

Warren Buffett is in India on a business trip post-deal with Bajaj Allianz General.