Buffett Adds Another Successor

It appears as though Warren Buffett has found another piece of the puzzle for the future of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

The so-called "Oracle of Omaha" has hired Ted Weschler—hedge fund manager—to serve on the team designed to replace Buffett at Berkshire Hathaway next year.

Weschler met Buffett for a series of charity lunches—lunches that Weschler paid a combined $5 million for.

Ultimately, the investment appears to have paid off for Weschler.

According to the Financial Times, when Buffett leaves, Weschler along with Todd Combs (who joined Berkshire in 2010) and possibly one other manager will oversee Berkshire's operations.

Buffett's succession plan was thrown into chaos earlier in the year when David Sokol (thought to be Buffett's replacement) was forced to resign. It was discovered that Sokol had purchased shares in a company he later recommended to Buffett.

Buffett may have selected Weschler due to a similar investment philosophy.

Bloomberg reports that Buffett had been searching for managers who are particularly risk-averse.

Weschler's holdings tend to have strong balance sheets, visible future cash flows, and relatively inexpensive valuations.

Notably, Weschler made millions on a purchase of Bank of America (NYSE: BAC) stock back in 2009. Buffett recently made a $5 billion investment in the company late last month.

With the addition of Weschler, it appears that Berkshire will maintain the investment philosophy that brought the company success over the past 40 years. Will that philosophy be as successful in the next 40?