Manager Autonomy

Buffett realizes he has neither the time nor the expertise to run the businesses he buys.

Hire great managers, give them capital, and get out of their way.

Extreme decentralization is formally recognized as a competitive advantage that attracts great founders who want to keep running their companies.

Autonomy is the ultimate recruiting tool for high-quality, owner-oriented managers.

The concept is defined by its extreme contrast to standard corporate bureaucracy.

Trust is cheaper and more effective than a thick manual of rules.

Manager autonomy is cemented as the permanent, unchangeable operating model for Berkshire Hathaway.

Berkshire is a collection of autonomous businesses, not a monolith.