Warren Buffett on Business: Principles from the Sage of Omaha

Chapter 13. Management Principles and Practices

Every day, in countless ways, the competitive position of each of our businesses grows either weaker or stronger. If we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain strength. . . . On a daily basis the effects of our actions are imperceptible; cumulatively, though, their consequences are enormous.^[]

. . . Berkshire's ownership may make even the best of managers more effective. First, we eliminate all of the ritualistic and non productive activities that normally go with the job of CEO. Our managers are totally in charge of their personal schedules. Second, we give each a simple mission: Just run your business as if: 1) you own 100% of it; 2) it is the only asset that you and your family have or will have; and 3) you can't sell or merge it for at least a century.^[]

We regard product quality as sacred.^[]

—Warren Buffett