Shut Fox Down

Previous Page

Transcript by http://www.newsy.com BY VICTORIA CRAIG In a surprising announcement Tuesday, Warren Buffett said he is seeking treatment for stage one prostate cancer. Dayton's WRGT has the details. "Buffett says he found out last week its in the early stages and his doctors expect him to make a full recovery. He plans to start two months of radiation in July." What does a prostate cancer diagnosis mean for the 81-year-old billionaire investor? Fox Business speculates how it will affect Berkshire Hathaway and its investors. "The two-month daily treatment will limit his travel, but will not limit him in his capacities as chairman and chief executive. In the letter to shareholders, he says quote, 'My condition is not remotely life-threatening or even debilitating in any meaningful way.'" Early Tuesday after the announcement, Berkshire investors were already reacting to the news. The company's shares sunk nearly two percentage points in after hours trading. CNBC explains why investors are worried about the future of the company without Buffett. "A lot of comparisons being made about buying into Buffett, buying into Berkshire, to buying into Apple and Steve Jobs...Warren Buffett invests in a portfolio of companies. He doesn't actually produce anything. And they're disparate businesses as well versus Apple, which some say at least has a history of innovation." According to the American Cancer Society, the survival rate for prostate cancer is near 100 percent. Still, Buffett's diagnosis puts a focus on the future of Berkshire and its succession planning. Forbes explains why it'll be different from the transition that took place at a post-Steve-Jobs Apple. "Many viewed [Steve Jobs] as inextricable from the company's value...but it will be years before Apple runs out of products to sell that he had a hand in developing. When Buffett leaves Berkshire, whenever that may be, his investing acumen — and the seal of approval he grants the companies he invests in — leaves with him." The Street says the bigger issue for stakeholders is Berkshire's empire — which includes financials, utilities, the housing market, consumer goods, and more. "Buffett's outsize role in negotiating mergers and acquisitions for the company, and his reputation as the don of American capitalism, are viewed by most market watchers as harder, likely impossible to replace, through any one individual." Still, Buffett tried to ease investors' worries Tuesday saying he has no plans to retire any time soon. He added he plans to alert investors immediately if his health worsens. Buffett pens an annual letter to the company board alerting them of a successor should he step down.