No. of Recommendations: 9
Well stated LongTermBRK.
I do think there's one "red line" that Buffett doesn't want crossed. That is his promises to the various business owners he's purchased. In a macro sense, that means don't break up BRK and sell off pieces.
Very interesting take! I concur reiterating Warren’s commitment and promises operationally to the subsidiary managers who sold their businesses, absolutely. On this—good news is Greg is firmly onboard. But sure, if he drifted I could see Howie nudging Greg.
But the bigger issue that made me think: a restructuring plan, say, that involved the sale of specific subsidiary groups I actually think there’s an excellent chance Howie would just continue to “watch”. On that we may disagree. And again it’s my hunch.
That’s not the kind of “misbehaving” I inferred Warren is asking Howie to “watch”. If the BOD in good faith with rational analysis supports Greg that a subsidiary group no longer fits with the direction of the company —I don’t think Howie acts. Now if 3 BOD members voted for it with an undisclosed conflict under pressure from a conflicted CEO–THAT is where Howie steps in.
Think of Howie’s role as more cop than executive. I know that sounds silly crazy but I can’t emphasize enough how very miminal, yet important, Howie’s role is as explained previously by Warren. Media accounts don’t seem to reflect this. Oh, and thanks for the kind words. From a generous patient teacher, it means a lot.