I hope you enjoyed so much watching the Berkshire Hathaway annual meeting last weekend as I did it. Congratulations and many thanks for streaming the entire event on real time.
The following quote made by Warren Buffett during the introduction of the event was the inspiration for the title of this blog: "the success of our relationship ( Charlie Munger and Warren Buffett) is basically that I can see very well ( the great vision) and Charly can hear very well ( the sounding management).
I consider the 2017 annual meeting as a must watch for every company manager and for the future MBAs as well, because is a compressed and a fast track first class MBA course.
The easy and fast way they handle the decision making process of the huge company is a great example of very good practices when running a big corporation in light of the XXI century.
Not in a explicit way but in an implicit way, Mr. Buffett remind us one the secret sauces to run successfully a big company and thrive in a hyper competitive market: a founder and wealthy CEO.
The magic touch provided to their companies by the founders is well known and well documented.
In regards to a wealthy CEO, the benefits are evident as well, since the company cash flow is not heavily loaded with a required big salary and huge compensation and bonus system for the CEO, it is possible for the company to get a competitive advantage over their counterparts which are also directed by high ranked CEOs.
The authenticity and honest company's past performance review is remarkable as well, specially when analyzing the reasons for missing important opportunities, like for example when they didn't jump into the Google stock rise or the Amazon stock slow but steady growth.
In the case of Amazon, the way they praise their founder and Ceo Jeff Bezos is awesome, since they consider him as part of another specie due his great success on a very complex sector against all the odds.
In addition, the way they are approaching the Chinese market is clever, they already commence seeding a special niche of the Chinese market in the proper way with the perfect timing.
Despite the fact they are still very classic in their portfolio investment and in their asset allocation procedures as well as they still have an old fashion way for their companies management, they have great merit in detecting on time the incoming new wave of business innovation and will be great to witnessed how they will react accordingly.
(Image courtesy of CNN money)
To be continued....
