Berkshire Hathaway Chairman Warren Buffet couldn't make it any clearer.

In the company's just-released annual report, Buffett stated that he plans to hire a younger person — or maybe more than one — to understudy him in managing Berkshire's investments and to "succeed me as Berkshire's chief investment officer when the need for someone to do that arises."

[Editor's Note: Warren Buffett just sold his house . . . find out why - Click Here]

Buffett said his plan to hire an investment manager recognizes Berkshire's succession plans on the investment side of the business aren't well-developed. He also noted that the plan to hire an investment manager was discussed fully at Berkshire's October board meeting.

He emphasized though that Berkshire already has three outstanding candidates to replace him as CEO.

The board, he wrote, "knows exactly who should take over if I should die tonight." He assured shareholders though that, "I have never felt better."

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He also explained that upon his death, his job will be split into two parts — one executive responsible for investments, and another, who will be CEO, for operations.

Buffett stressed that the Buffett family will not be involved in managing Berkshire Hathaway.

Buffett acknowledged that picking the right person to hire will not be easy.

"We need someone genetically programmed to avoid serious risks, including those never before encountered," he stated.

Besides that, Buffett will be looking for other assets in his candidate including "independent thinking, emotional stability, and a keen understanding of both human and institutional behavior."

Editor's note:
Warren Buffett just sold his house . . . find out why - Click Here
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