Jain, the Berkshire vice-chair, has sold more than half of his stake in the company

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Berkshire Hathaway Vice-Chair Ajit Jain has cut his stake in Warren Buffett's sprawling investment firm by more than half, following Buffett's move to reduce his own ownership of the nearly $1 trillion business.

Jain disclosed that he disposed of 200 Class A common shares worth $139 million on Monday, greatly reducing his holdings in the business. He sold direct and indirect ownership of 166 shares worth about $112 million, according to a filing with the Securities and Exchange Commission.

The remaining shares are divided between Jain and his wife, children and a trust for the non-profit, the Jain Foundation. In recent years, he has donated several of his shares to his foundation, which focuses on finding a cure for dysferlinopathy, a rare muscular dystrophy disorder from which his son suffers. The foundation estimates that orphan diseases affect fewer than eight people per million.

Jain, 73, oversees Berkshire's insurance operations, which form the backbone of the company and have given it the financial muscle to buy companies and invest in publicly traded stocks. Jain has long been one of Buffett's top lieutenants, and in 2018 he was promoted to vice-chair and joined Berkshire's board of directors in recognition of his importance to the larger group.

“Ajit has created billions in value for Berkshire shareholders,” Buffett wrote to shareholders in 2017. “If there's ever another Ajit and you can trade me for him, don't hesitate. Trade!”

Jain has long been considered by Berkshire investors as one of Buffett's potential successors. But in 2021, Buffett confirmed that Greg Abel, a top executive who grew up in Berkshire's energy business, would one day take over. He told CNBC last year that Jain “never wanted to run Berkshire”.

Jain joined Berkshire in 1986 from consultancy McKinsey and used the company's balance sheet to build it into an insurer of last resort, transforming the Omaha-based investment group in the process.

Jain is one of Berkshire's highest paid employees, earning $20 million last year. His wealth, however, is dwarfed by Buffett's, which is largely in Berkshire shares.

Buffett is also selling his Berkshire shares, donating the money to a handful of charities. Much of that stock ended up in friendly hands — including his children's foundation — limiting pressure from outside Berkshire shareholders.

Jain declined to comment.