‘Notes’ seems to be unaware of the way Buffet conducts business. He aquires businesses that are basically sound, with good management at what he considers bargain prices. Then he infuses capital if it is appropriate. In any case, he lets management run their business with little intervention.
He is not a micromanager. Nor is there any reason to believe that he, like some others who were actual CEOs of their companies, has hidden behind the lower echelons. It would appear he made a judgement error here, in trusting AIG management, but thats it.
At the end of the day….we have to wonder…whose fault is it if things go wrong- an inefficient employer who micromanages or macromanages- or an efficient employee who is wrong for the job?
B-H has returned 21.9 average annual gain to shareholders from 1965-2004. They have done so by being smart and honest. Anyone who has dealt with Ajit Jain of National Indemnity knows that he is proud of being of tough negotiator. Anyone who has dealt with General Re knows that they have great integrity and that Warren Buffett comes for a two hour visit once in a while, as he did several weeks ago, to share his thoughts and does not “run” the business.
Good question, ‘Notes’. For investors, its the bottom line that counts, over a reasonable period of time (the investor defines ‘reasonable’, I guess). If you think Buffet has lost his touch, then sell your shares, if you have them. Otherwise, it seems like it might be a good time to buy them on the cheap.
I wish to thank all those who go to work everyday and do their job(s) without taking shortcuts… on a job well done. Sometimes the upper echelon forgets to say thank you. Money does not shape the person… it is character. All of us, at one time or another will need to step up to the plate and atone for our actions.
The Europeans and Americans are watching today’s executives. If you are wise you do not allow the investor(s) to sway your decision making. Nor pass/blame others for the problem.
The definition of Character- the distinctive qualities belonging to an individual… reputation; moral habits.
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Interesting. I have heard or read similar answers to questions where the officer had no knowledge of the ongoing day to day operations.
At least one other sub could benefit from tighter management by the BH parent. It makes paint.
I agree. It is sad when the key officer blames his business office managers solely. The cracks are forming.
Hey Nick…
We get the point…
‘Notes’ seems to be unaware of the way Buffet conducts business. He aquires businesses that are basically sound, with good management at what he considers bargain prices. Then he infuses capital if it is appropriate. In any case, he lets management run their business with little intervention.
He is not a micromanager. Nor is there any reason to believe that he, like some others who were actual CEOs of their companies, has hidden behind the lower echelons. It would appear he made a judgement error here, in trusting AIG management, but thats it.
At the end of the day….we have to wonder…whose fault is it if things go wrong- an inefficient employer who micromanages or macromanages- or an efficient employee who is wrong for the job?
B-H has returned 21.9 average annual gain to shareholders from 1965-2004. They have done so by being smart and honest. Anyone who has dealt with Ajit Jain of National Indemnity knows that he is proud of being of tough negotiator. Anyone who has dealt with General Re knows that they have great integrity and that Warren Buffett comes for a two hour visit once in a while, as he did several weeks ago, to share his thoughts and does not “run” the business.
Good question, ‘Notes’. For investors, its the bottom line that counts, over a reasonable period of time (the investor defines ‘reasonable’, I guess). If you think Buffet has lost his touch, then sell your shares, if you have them. Otherwise, it seems like it might be a good time to buy them on the cheap.
I wish to thank all those who go to work everyday and do their job(s) without taking shortcuts… on a job well done. Sometimes the upper echelon forgets to say thank you. Money does not shape the person… it is character. All of us, at one time or another will need to step up to the plate and atone for our actions.
The Europeans and Americans are watching today’s executives. If you are wise you do not allow the investor(s) to sway your decision making. Nor pass/blame others for the problem.
The definition of Character- the distinctive qualities belonging to an individual… reputation; moral habits.
The above is food for thought.
Mr. Buffet has generated great wealth for his shareholders by employing great business principles including integrity.