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Richard Connors

Warren buffett on business

Warren Buffett's decades of experience offer valuable insights on managing companies. His Berkshire Hathaway letters share this wisdom. To manage a business the Buffett way: Communicate openly and treat employees and shareholders fairly. Practice ethical governance. Build enterprise value patiently. Have passion for your work but admit mistakes. Buffett's simple, old, few principles should be required for executives, entrepreneurs, students. When stripped down, his effective management is remarkably obvious: openness, ethics, patience, passion. The Buffett/Berkshire model offers profoundly useful business wisdom.

Warren buffett on business
Warren buffett on business

book.chapter Owners as partners

Warren Buffett and Charlie Munger of Berkshire Hathaway champion a partnership approach with their shareholders, advocating for a long-term investment perspective over short-term gains. Investors are encouraged to view themselves as part-owners of the business, focusing on its growth over time rather than fluctuating stock prices. Similarly, managers are advised to treat shareholders as partners, aligning their interests by investing personal wealth in the company and avoiding disproportionate benefits. This philosophy, which has been integral to Berkshire since its inception, promotes a culture of stewardship, where company leaders manage assets for shareholders, emphasizing the importance of reputation and trust. Buffett and Munger's commitment to this ethos is evident in their own significant investments in Berkshire, reflecting a shared fate with other shareholders. The company's conservative, partnership-oriented culture prioritizes long-term stability, fairness, and integrity, with a clear message from Buffett that this steadfast approach to business and shareholder relations is here to stay.

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