Warren Buffett Once Said Hiring Someone To Change Them Is 'Just As Crazy' As Marrying Someone To Change Them: 'The Reason That Berkshire Has Been Successful…'
Warren Buffett, CEO of Berkshire Hathaway, and the late Charlie Munger have long emphasized the critical role of integrity, intelligence, and energy in effective leadership.
What Happened: While speaking with Fortune during the 2015 Berkshire Hathaway Annual Shareholder Meeting, Buffett underscored the importance of a clear vision to inspire others.
"You have to have a clear vision of where you're going, so that you can get others to follow you," he said at the time.
Buffett believes that leadership qualities can be both inherent and developed. “Some people have way more leadership qualities inherently, but I think you can learn a lot, too.”
In a 2014 interview with Fortune’s Pattie Sellers, Buffett, and Munger spoke about the significance of sound management and hiring practices.
The duo revealed that they avoid acquiring companies with poor managers, preferring to collaborate with naturally competent individuals.
"Marrying somebody to change them is crazy," Buffett stated then, adding, "And I would say hiring somebody to change him is just as crazy, and becoming partners with them to change them is crazy."
"The reason that Berkshire has been successful as a big conglomerate—more successful than any other big conglomerate, so far as I know—is we try to buy things that aren't going to require much managerial talent at headquarters," Munger said at the same time.
In 1998, while speaking to MBA students at the University of Florida, Buffett said that his hiring criteria focus on integrity, intelligence, and energy.
During a 2021 shareholder meeting, Buffett said that poor management is the most significant risk to a company, reported the Wall Street Journal.
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Why It Matters: Previously, Tesla CEO Elon Musk has echoed similar sentiments, aligning with Steve Jobs on the importance of hiring top talent and effective leadership.
Musk agrees with Jobs’ philosophy that identifying the best managers is crucial for success.
In March 2024, Musk reiterated his agreement with Jobs’ views on building a team of ‘A’ players, emphasizing that a small team of top performers can outperform larger teams of average talent.
This approach aligns with Buffett’s focus on integrity and intelligence in leadership.
Jobs, who co-founded Apple Inc., has also shared management tips, stressing the importance of hiring the right people to lead a company.
“You know who the best managers are. They’re the great individual contributors who never ever want to be a manager, but decide they have to be a manager because no one else is going to be able to do as good a job as that,” Jobs said.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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