In his 2019 Berkshire Hathaway Annual Letter, Warren Buffett reflects on his experience with corporate directors, acknowledging their decency, likability, and intelligence, though many lacked the aptitude for handling money or business matters.
He humorously notes that everyone has areas of incompetence saying, if I were ever scheduled to appear on Dancing With the Stars, I would immediately seek refuge in the Witness Protection Program. We are all duds at one thing or another.
At Berkshire Hathaway, Buffett prioritizes directors who are business-savvy, owner-oriented, and genuinely interested in the company. He values thoughtful, principled decision-making over rigid processes.
These directors aim to delight customers, value employees, and act as good citizens—timeless objectives that reflect the enduring principles of effective and ethical corporate leadership.
Here’s an excerpt from the letter:
Here, a pause is due: I’d like you to know that almost all of the directors I have met over the years have been decent, likable and intelligent. They dressed well, made good neighbors and were fine citizens. I’ve enjoyed their company. Among the group are some men and women that I would not have met except for our mutual board service and who have become close friends.
Nevertheless, many of these good souls are people whom I would never have chosen to handle money or business matters. It simply was not their game. They, in turn, would never have asked me for help in removing a tooth, decorating their home or improving their golf swing.
Moreover, if I were ever scheduled to appear on Dancing With the Stars, I would immediately seek refuge in the Witness Protection Program. We are all duds at one thing or another. For most of us, the list is long. The important point to recognize is that if you are Bobby Fischer, you must play only chess for money.
At Berkshire, we will continue to look for business-savvy directors who are owner-oriented and arrive with a strong specific interest in our company. Thought and principles, not robot-like “process,” will guide their actions.
In representing your interests, they will, of course, seek managers whose goals include delighting their customers, cherishing their associates and acting as good citizens of both their communities and our country.
Those objectives are not new. They were the goals of able CEOs sixty years ago and remain so. Who would have it otherwise?
You can find the entire letter here:
2019 Berkshire Hathaway Annual Letter
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