Warren Buffett's Management Secret and His Startup Culture Since 1980 | Exploring Markets

Warren Buffett's Management Secret and His Startup Culture Since 1980

Warren Buffett is the world's greatest investor.

He also might be called the world's greatest business manager. What we are about to show you is an excerpt he wrote in 1980. Yes, 1980. It highlights how he manages his company and the freedom he gives employees. You might think of today's startup culture – the lean startup, entrepreneurial buzzwords, and more. Or in other words, much of what Silicon Valley and New York City are becoming today:
"Your company is run on the principle of centralization of financial decisions at the top –the very top, it might be added – and rather extreme delegation of operating authority to a number of key managers at the individual company or business unit level. 
We (however at Berkshire Hathaway) could just field a basketball team with our corporate headquarters group, which utilizes only about 1500 square feet of space. This approach produces an occasional major mistake that might have been eliminated or minimized through closer operating controls. But it also eliminates large layers of costs and dramatically speeds decision-making. Because everyone has a great deal to do, a very great deal gets done.
Most important of all, it enables us to attract and retain some extraordinarily talented individuals - people who simply can’t be hired in the normal course of events - who find working for Berkshire to be almost identical to running their own show."