Although he may be like a loose, Coca-Cola-loving old man, he admits his, his guide Style can sometimes be “ruthless”. In fact, the billionaire sent a strong memory of his manager of his non -negotiations every two years, which “eagerly protects Berkshire’s reputation”, which he considers to be the foundation of the entire company.
“We can afford to lose money-a lot of money. But we can’t afford to lose the call-a reputation,” recalled the 94-year-old in one Social -Media post that is currently recirculatedJust a few months before he is supposed to leave the company that he has had for over 50 years.
Since the takeover of a once -fighting textile company in 1965 the well -known investor was worth 152 billion US dollars, has made Berkshire Hathaway one of the largest companies in the United States under his leadership, Berkshire, a market upper stand by beating 1 trillion US dollar this year. But from January 2026Berkshire will no longer be under Buffett’s leadership. Instead, the memo is reminded that its future reputation is in the hands of the staff.
“We still have to be written not only against what is legal, but also against what we would be happy about, in an article of an unfriendly but intelligent reporter on the front page of a national newspaper.”
Protection The call was an ongoing topic in Buffett’s story – in A Shareholder letter 2010He revealed that he had sent the employees to the employees for over 25 years.
Buffett, who was resident in 1991 as chair of the investment bank Salomon, Buffett delivered this message to his employees in 1991: “Losing money for the company and I will understand. Losing a call for the company and I will be ruthless.”
This feeling was glued by other stock markets like the echo Jeff Bezos, Who said, “Your brand is what other people say about her if you are not in the room.”
The need to always plan for the future
The legendary investor announced this May that he would step down as CEO by the end of the year and pass on the reins to his successor. Greg AbelAfter seeing how much He could do on a working day.
And as a succession request request, Buffett asks that his managers provide a handwritten letter about future recommendations to take their place, and added that the letter was not seen by anyone, unless he is no longer a CEO.
“I need your help in relation to the question of succession. I am not looking for any of you to retire, and I hope you all live up to 100. (In Charlie’s case 110.)” Charlie MungerWho died in November 2023 at the age of 99 was Buffett’s close friend, trustworthy partner and sounding board for over 60 years.
“But in the event that you do not do this, please send me an note or an e -mail that should take your recommendation as who should take over tomorrow if you should be put out of action overnight,” wrote Buffet.
Buffett told that of the Wall Street Journal He will still go to the office.
“I will not sit at home and watch soap operators. My interests are still the same.”
Read the full memo with one and a half
To: Berkshire Hathaway Managers (“The All-Stars”)
CC: Berkshire Director
By: Warren E. Buffett
Date: December 19, 2014
This is my two -year letter to re -train the top priority of Berkshire and to receive your help in successor planning (your, not mine!).
The top priority – everything else, including profits, is that we all continue to protect Berkshire’s reputation. We can’t be perfect, but we can try to be. As I have said in these memos for more than 25 years: “We can afford to lose money – even a lot of money. But we can’t afford to lose the call – even a call.” We must Still measure every action against what is legal, but also against what we would be happy about to have written on the front page of a national newspaper in an article of an unfriendly but intelligent reporter.
Sometimes her employees say that “everyone else is doing it.” This reasoning is almost always bad when it comes to the head for a business action. It is completely unacceptable when evaluating a moral decision. Whenever someone offers this sentence as a reason, he say that they cannot find a good reason. If someone gives this explanation, tell him that you should try to use you with a reporter or a judge and see how far it comes.
If you see something that will hesitate or legality to hesitate, call me up. However, it is very likely that a certain procedure causes such a hesitation, it is too close to the line and should be abandoned. There is a lot of money in the center of the courtyard. If it is questionable whether an action is close to the line, simply assume that it is outside and forget it.
Let me immediately know whether there is significant bad news. I can deal with bad news, but I don’t like to deal with it after filming it for a while. Salomon has a reluctance to immediately face bad news from someone who has been slightly thrown into a problem that could easily have decided to death with 8,000 employees.
Someone in Berkshire today does something that she and I would be unhappy if we knew about it. This is inevitable: we are now employing more than 330,000 employees, and the chances that this number will go through the day without bad behavior. However, we can have a major impact on the minimization of such activities by immediately jumping on something if the slightest smell of inappropriateness is. Her attitude to those matters, which are expressed by both behavior and words, will be the most important factor for the development of the culture of your business. Culture, more than rule books, determined how an organization behaves.
Talk to me about what is going on as little or as much as you want. Each of them makes first -class task to carry out their company with their own individual style, and they don’t need me to help. The only items that you have to clarify with me are changes to the services after completion, acquisitions and unusually large investments. But I like to read, so send everything you will find interesting.
I need your help in relation to the question of succession. I am not looking for any of you that I will retire, and I hope you all live up to 100. (In Charlie’s case 110.) Please send me a letter or an e -mail that should give your recommendation, who should take over tomorrow if you should be put out of action overnight. These letters are not seen by anyone except me unless I am no longer a CEO. In this case, my successor needs the information. Please summarize the strengths and weaknesses of your main candidate as well as possible alternatives that you may want to include. Most of them have participated in this exercise in the past and others have offered their ideas verbally. For me, however, it is important to get a regular update, and now that we have added so many companies, I have to have your thoughts in writing instead of trying to carry them around in my memory. Of course there are some operations that are carried out by two or more by them – such as the Blumkins, the Merschmans, the couple in applied underwriters, etc. – and in these cases simply forget this article. Your note can be short, informal, handwritten, etc. Simply mark it “personally for Warren”.
Thank you for your help with all of this. And thanks for the way you do your business. You just do my job.
