Paul Andrews Jr.

Origin of Relationship

Paul Andrews Jr. is the founder of TTI, Inc., an electronic components distributor. He sold TTI to Berkshire Hathaway in November 2006 via a pre-lunch handshake, avoiding private equity and strategic buyers to preserve his company's culture.

Major Milestones

• 1971: Andrews founds TTI, eventually growing it from $112,000 in annual sales to $1.3 billion over 35 years.
• 2006: Sells TTI to Berkshire Hathaway. The deal was introduced through John Roach and finalized without an auction or investment bank.
• 2018: Highlighted in the 2018 letter for massive growth; under his management since the acquisition, TTI's earnings have more than tripled, proving the value of the "hands-off" Berkshire model.
• 2021: Paul Andrews passes away. The 2021 Letter devotes significant space to honoring his legacy. TTI's sales grew from $715 million in 2006 to $7.7 billion in 2021 under his leadership, entirely validating his choice to sell to Berkshire to protect his culture rather than selling to private equity.

Strategic Importance

Andrews embodies the "Berkshire pitch": an owner-founder who cares deeply enough about their business and employees to prioritize finding the right home over securing the absolute highest price. By rejecting private equity (debt-loading/flipping) and strategic competitors (synergy-driven layoffs), Andrews perfectly illustrates why Berkshire's reputation as a permanent, autonomous home is its most durable acquisition advantage.

🔗 Connections

• Company: TTI
• Concepts: Buyer of Choice, Non-Auction Strategy, Manager Autonomy
• Sources: 2006 Letter, 2007 Letter, 2018 Letter, 2021 Letter