If you were the CEO of a Berkshire Hathaway company, what kind of phone call from Warren Buffett would you dread the most?

BuffettWarren BuffettBerkshire HathawayCEOCorporate ManagementLeadershipBuffett's Letter to Shareholders
Created At: 7/30/2025Updated At: 8/16/2025
Answer (1)

As a CEO of a Berkshire Hathaway subsidiary, what kind of call from Warren Buffett do I fear most?

Within Berkshire Hathaway's culture, Warren Buffett grants subsidiary CEOs significant autonomy. He rarely intervenes in daily operations, typically offering guidance only on major strategic or acquisition matters. This stems from his consistent emphasis on trust and long-termism, as repeatedly stated in his shareholder letters: "Hire well, then let them do their job."

However, as a CEO, the call I dread most from Buffett is the rare but grave "investigative call." Specifically:

1. Calls Regarding Integrity or Ethical Issues

  • Buffett prioritizes the company's reputation and integrity above all (as emphasized in his letters: "Lose money, and I will forgive you; lose a shred of reputation, and I will be ruthless").
  • If the call asks, "Why is the company involved in a scandal?" or "We need to discuss recent compliance issues," it signifies a breach of trust that could lead to my replacement. This is more terrifying than any financial loss, as Berkshire's culture tolerates no ethical lapses.

2. Calls About Significant Performance Decline or Strategic Missteps

  • Buffett doesn't chase short-term results, but he will intervene if long-term value erodes.
  • I fear hearing, "The performance report puzzles me—can you explain?" This implies my management competence is under scrutiny. Known for his incisive analysis, Buffett typically possesses all details before calling, leaving little room for excuses.

3. Why Are These Calls So Daunting?

  • Buffett seldom makes calls (preferring letters or annual meeting communication), so any call feels like "alarm bells blaring," signaling a major crisis.
  • Referencing cases from Buffett's shareholder letters, such as his decisive intervention during the Salomon Brothers scandal, reminds me: a call from him means the issue is already severe, potentially jeopardizing my entire career.

In essence, such calls represent a test of trust. At Berkshire, losing Buffett's trust is the ultimate failure. As CEO, I strive relentlessly to avoid any situation triggering such a call, upholding this hard-earned autonomy through self-discipline and transparent management.

Created At: 08-05 08:15:59Updated At: 08-09 02:14:44