Is Warren Buffett Going Insane?

Maybe it's just me, but when billions of dollars are at stake, you let a professional take care of it. Today on "60 Minutes," Warren Buffett spoke about several topics, one of which was his successor. Buffett told 60 Minutes that his son may take over the company.

Some people may not have a problem with Buffett Junior taking the helm. The only problem is, the guy is a farmer. Is a farmer with no education or training in the field of finance an appropriate candidate for running Berkshire Hathaway BRK? Warren appears to think so, as he claimed his son, Howard, would be able to uphold the principles and values adored by the company.

Berkshire stock surprisingly did not plummet on this news, although conventional wisdom would state that traders would not like a farmer managing a billion dollar fund. Then again, traders may still be stunned about the news. It is also realistic that Warren taught his son about the stock market. After all, Howard was next to the Oracle of Ohama all the time, he must have overheard some proprietary strategies.

The one thing I question, however, is if Howard is competent enough to surf through the treacherous waters. The economy is extremely uncertain, and the bulk of deals that Buffett Senior partook in occurred because he is Warren. For example, the Goldman Sachs GS preferred stock deal in 2008 only took place because of the name. Same with the Bank of America BAC deal in 2011.

Warren Buffett may or may not be making the right move by letting his son take over Berkshire. Analysts will have to figure things and so will traders. Until then, I do not have much faith in Buffett's decision. Many pundits have questioned whether his investing acumen has deteriorated, and this could be the final nail in the coffin.