"You get a lot of mediocrity" · Transcript · BuffettMungerGPT

WarrenCould you discuss how you decide what good management is and how you decide whether you have a good manager? The really great business is one that doesn't require good management. I mean, that's a terrific business. And the poor business is one that can only succeed or even survive with great management. But we look for people that know their businesses, love their businesses, love their shareholders, Love their shareholders. Want to treat them as partners. And we still look to the underlying business, though. We, if we have somebody that we think is extraordinary, but they're locked into one of those terrible businesses, because we've been in some terrible businesses. And, you know, the best thing you can do probably is get out of it and get into something else. But there's an enormous difference, frankly. There's an enormous difference in the talent of American business managers. The CEOs of the Fortune 500 are not selected like 500 members of the American Olympic track and field team. And it is not the same process. And you do not have the uniformity of top quality that you get with the American Olympic team in any sport. You do not get that in top management in American business. You get some very able people, some terrific people, like a Bill Gates that we just mentioned. that we just mentioned, but you get a lot of mediocrity, too. And the test, I think in some cases that it's fairly identifiable, who has done an extraordinary job.