The star investor advocates stricter inspectors.
–
(Photo: AP)
–
– –
–
Warren Buffett is the longest serving CEO of an American company. He has run the Berkshire Hathaway conglomerate for 55 years and celebrates his 90th birthday in August. His right hand, Charlie Munger, has just turned 96.
His age did not make him the most far-sighted technology investor, as Buffett admits. But his experience makes him a far-sighted company boss who has experienced many a crisis. He has rightly criticized Wall Street for its short-term thinking. Has shown that hedge funds often generate poorer returns than if investors simply invested in the broad S&P 500 stock index.
Buffett’s letter to shareholders, released on Saturday, is one of the most read of its kind because of his wisdom outside of Berkshire business. The latest warning from the star investor should therefore be heard on the boardrooms: CEOs need strict inspectors.
Those who have a backbone and oppose the CEO if a company wants to take an unhealthy course. Those who are not afraid to be uncomfortable and who also put forward their arguments against great resistance.
A number of scandals in recent months have shown how important a strong board of directors is and how expensive it can be if it is missing. The scandals at the office provider WeWork, the aircraft manufacturer Boeing and the social network Facebook are formative examples.
“When CEOs are looking for board members, they don’t want a pit bull, but a cocker spaniel,” Buffett said. This makes the life of a CEO easier, but in the event of a crisis it is expensive for both the company and the shareholders. The star investor does not provide a patent solution. But it’s good that Buffett’s finger is in the wound.
More: Buffett is buying back more shares than ever
–
– ,
