QuestionerBack in the 1950s and 1960s, when you had a partnership, Mr. Buffett, you asked for and got a performance fee of 25% of what was earned above 6% a year. What caused you to switch from that performance fee to that no fees we are enjoying today? Was it the wisdom that to give is better than to receive? Try again.
WarrenI would pay to have this job I have. I would pay a lot of money, and I hope I don't get tested on that. But I, you know, it's why in the world, if I, if I can work with people I like and get the same result they have and end up with all kinds of money, you know, why do I need to make some further override on them? I'd rather get the same result as my partners than have me get a different result. And it can't make any difference. I mean, it'll make a difference in the size of my foundation someday, perhaps. You know. I like living the way I live. I was delighted to get rid of the psychological pressure brought on me by getting fees based on performance. I think Warren was too. If you're highly conscientious in your relations with other people and you hate to disappoint, you're going to suffer more if you are liberally rewarded with performance fees. So I think there was. an enormous advantage to us. So I guess we should be thanking you.