Warren Buffett Gets Asked A Shrewd Question
Published at : October 20, 2021
Warren Buffett is asked a very good question at his company’s annual meeting of stockholders. He appreciates it and gives a comprehensive answer for all of us to learn from.
The question goes: “Good afternoon! My name is Stan Leopard, and I’m from Menlo Park, California. I’m very pleased to be here, Warren and Charlie. I first heard about you, Warren, in the late ’80s, and began reading your writings. Unfortunately I didn’t invest until the late ’90s. You have shaped my business thinking, and as I listen to you, and as I continue to read what you write, and the things you recommend to read, it continues to shape my thinking. My question is about compensation. And I’ve seen your writing, and I heard the earlier comments today. And they still leave me, as a guy who is a business owner, not quite sure how to act to design compensation for managers. For most of my career, I’ve been the senior manager in my businesses, but now I’m in a situation where I’m looking to own a majority interest of businesses that I don’t manage every day directly, and I’m very concerned with this compensation issue. When I think about things, like, return on equity, or growth, or risk, or like that, but if you could speak a little more towards the specific of how you approach the getting it to the right things to measure and incent, I’d appreciate that.”
From Berkshire Hathaway Annual Shareholders Meeting. (2004)
Warren E. Buffett is an American long-term investor, philanthropist, business tycoon, and the chairman & CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth over 100 billion dollars. Buffett was born in Omaha, Nebraska. He developed an interest in business and investing in his youth and made truly incredible stock market returns over his career.
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Warren Buffett Gets Asked A Shrewd Question
The question goes: “Good afternoon! My name is Stan Leopard, and I’m from Menlo Park, California. I’m very pleased to be here, Warren and Charlie. I first heard about you, Warren, in the late ’80s, and began reading your writings. Unfortunately I didn’t invest until the late ’90s. You have shaped my business thinking, and as I listen to you, and as I continue to read what you write, and the things you recommend to read, it continues to shape my thinking. My question is about compensation. And I’ve seen your writing, and I heard the earlier comments today. And they still leave me, as a guy who is a business owner, not quite sure how to act to design compensation for managers. For most of my career, I’ve been the senior manager in my businesses, but now I’m in a situation where I’m looking to own a majority interest of businesses that I don’t manage every day directly, and I’m very concerned with this compensation issue. When I think about things, like, return on equity, or growth, or risk, or like that, but if you could speak a little more towards the specific of how you approach the getting it to the right things to measure and incent, I’d appreciate that.”
From Berkshire Hathaway Annual Shareholders Meeting. (2004)
Warren E. Buffett is an American long-term investor, philanthropist, business tycoon, and the chairman & CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth over 100 billion dollars. Buffett was born in Omaha, Nebraska. He developed an interest in business and investing in his youth and made truly incredible stock market returns over his career.
Share this video with a friend if you found it useful! Consider subscribing to the channel for videos about investing, business, stock market, managing money, building wealth, passive income, and other finance-related content!
Warren Buffett Gets Asked A Shrewd Question
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