"[[Berkshire Hathaway|Berkshire]] corporate policy strikes a balance between autonomy and authority. [[Warren Buffett|Buffett]] issues written instructions every two years that reflect this balance. The missive states the mandates [[Berkshire Hathaway|Berkshire]] places on subsidiary CEOs:
1. Guard Berkshire’s reputation;
2. **Report bad news early**;
3. Confer about **post-retirement benefit changes and large capital expenditures** (including acquisitions, which are encouraged);
4. Adopt a **fifty-year time horizon**;
5. Refer any opportunities for a Berkshire acquisition to Omaha; and
6. Submit **written successor recommendations**.
Otherwise, [[Berkshire Hathaway|Berkshire]] stresses that managers are chosen because of their excellence and are urged to act on that excellence. ([Location 2720](https://readwise.io/to_kindle?action=open&asin=B00K33E460&location=2720))"
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**Tags** -- [[quotes]], [[long-term-thinking]] , [[organisational-culture]] , [[succession]], [[personal-values]] , [[organisational-values]]
**Source** -- [[202407260951 - B - Berkshire Beyond Buffett]]