Berkshire Hathaway Annual Shareholder Meetings (since 1994) 1995-Afternoon Session-BRK Annual Shareholders Meeting
Dec 1, 2018
AI Snips
Chapters
Transcript
Episode notes
Customize Compensation To Each Business
- Set manager compensation per-business rather than a single formula to match economic characteristics.
- Reward what you want and keep managers feeling like owners to preserve performance.
Litigation Falls With Good Conduct
- Avoid legal trouble by dealing fairly and exiting relationships with problematic people early.
- Good treatment of employees and customers greatly reduces litigation risk.
Use Historical ROE As A Baseline
- Expect average corporate returns near historical norms (around 12–13%) due to competitive forces.
- Use that expectation when valuing businesses and setting return targets.