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Berkshire Hathaway's Ajit Jain sells more than half his stake in the company

Bloomberg |
Sep 13, 2024 09:29 AM IST

Ajit Jain, Berkshire Hathaway's vice chair of insurance operations, sold $139 million in Class A shares, retaining 166 shares.

Berkshire Hathaway Inc.’s vice chair of insurance operations, Ajit Jain, sold $139 million worth of his Class A shares in Warren Buffett’s conglomerate.

Ajit Jain, who runs some of Berkshire's insurance operations, plays a game of bridge during Berkshire Hathaway Shareholders annual meeting in Omaha, Nebraska.(Reuters)
Ajit Jain, who runs some of Berkshire's insurance operations, plays a game of bridge during Berkshire Hathaway Shareholders annual meeting in Omaha, Nebraska.(Reuters)

Jain, one of Buffett’s top lieutenants, disposed of 200 of the Class A shares for about $695,418 each, according to a regulatory filing Wednesday. The disposal means the longterm executive is left with control of 166 such shares, 61 of which he directly owns. 

When reached by phone, Jain declined to comment. Berkshire Hathaway didn’t immediately respond to a request for comment.

The move marks a shift for Jain, who added 50 Class A shares to his holding between March 2023 and March this year. Still, he has been trimming his Class B stake in the conglomerate over the years, selling more than 70,000 such shares from March 2020 to March 2024, according to past proxy filings.

The executive joined Berkshire Hathaway in 1986 to work on the conglomerate’s insurance operations, which include car insurer GEICO. 

Buffett has long praised Jain, saying in 2017 that he’s probably made more money for Berkshire than Buffett has. In 2018, Jain and Greg Abel were named vice chairmen of the firm, with Abel, who’s a decade younger than Jain, eventually being tapped as Buffett’s successor. 

Investors have questioned whether Jain would stick around to help Abel run things once Buffett, now 94, leaves the firm. Jain still owns more Class B shares than Abel.

“We continue to be comfortable that the interests of Mr. Jain and Mr. Abel are aligned with shareholders,” James Shanahan, an analyst at Edward Jones who covers Berkshire Hathaway, told Bloomberg.

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