What motivates Berkshire managers? · Transcript · BuffettMungerGPT

WarrenCharlie and I have thought a few times about why do we do what we do when we don't need the money at all and we jump out of bed excited about what we're going to do every day and why is that the case? Well, we get the opportunity to paint our own painting every day and we love painting that painting that's a painting that'll never be finished. If that works for us, why shouldn't it work for a bunch of other people who have long been doing what they like to do and now in many cases have all the money they possibly need but still they may have to sell us their business for one region or they connect with family or Texas who knows what else but they really like what they've been doing that's the reason probably the reason they've been so good at it part of the reason they've been so good at it so we give them the paintbrush let them keep the paintbrush and we don't go around and tell them to use more red paint than blue paint or something of the sort and we applaud and we try to compensate them fairly because though they aren't primarily doing it for the money in many cases nobody likes to be taken advantage of so it but that has not been a big problem at berkshire we have not had compensation problems over time and we think if you think about it over 40 odd years you know the times when compensation has been of importance is just practically no and it it it we don't we don't we'll just take that we talked about the the investment the compensation of two investment people those people are making below hedge fund standards below private equity standards and having a less favorable tax treatment they'll still make a lot of money i mean huge amounts of money and and i hope that they are having a good time we're doing what they're doing i think that's why they're here