Author Topic: Buffett/Berkshire - general news  (Read 188086 times)

BG2008

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Re: Buffett/Berkshire - general news
« Reply #430 on: March 12, 2017, 11:46:53 PM »
Interesting aspect on Lubrizol's loss for the year: http://www.crainscleveland.com/article/20170228/NEWS01/170229809/berkshire-hathaways-lubrizol-takes-365-million-loss-on-oilfield

It is amazing how Buffet has this public persona where if you went to work for him, you had a job till you die.  But in reality, if you made mistake, you get the boot or as they say "retire".   

Despite this, I think Berkshire has some of the best executive/employee retention track record.  Does anyone here know how Berkshire pays its managers and what are the tools to keep them on?


Cigarbutt

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Re: Buffett/Berkshire - general news
« Reply #431 on: March 13, 2017, 04:10:11 AM »
Mr. Buffett is revered for his good decisions leading to good results.
The Lubrizol loss is significant.
However, despite the amazingly large size of BRK, these types of losses occur at a relatively very low frequency and, when they occur, are embedded in a sea of black ink.
Another aspect of his accomplishments is the unbelievably low rate of bad decisions leading to bad results.
But nobody's perfect.
Thanks for the link.

rolling

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Re: Buffett/Berkshire - general news
« Reply #432 on: March 15, 2017, 09:30:49 AM »
Interesting aspect on Lubrizol's loss for the year: http://www.crainscleveland.com/article/20170228/NEWS01/170229809/berkshire-hathaways-lubrizol-takes-365-million-loss-on-oilfield

It is amazing how Buffet has this public persona where if you went to work for him, you had a job till you die.  But in reality, if you made mistake, you get the boot or as they say "retire".   

Despite this, I think Berkshire has some of the best executive/employee retention track record.  Does anyone here know how Berkshire pays its managers and what are the tools to keep them on?
It seems to me he has this low risk culture for subsidiary executives. If they just dividend the money back to him they get paid more; if they risk some money: they better get it right; if they do get it right, then they get to manage a bigger subsidiary and get paid even more; if they get it wrong, they'd have been better off not taking unnecessary risks and letting Buffett manage the money... In other words: they are allowed to shoot fishes inside a dry barrel; if there is still water then they shouldn't risk it.

This kind of low risk culture is the exact opposite we see in public companies CEOs and seems to me is a big advantage for Berkshire wealth maintenance objective.
My usual portfolio: Highly concentrated (up to 3 or 4 positions) in smallcaps and microcaps.

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #433 on: March 15, 2017, 11:42:37 AM »
Interesting aspect on Lubrizol's loss for the year: http://www.crainscleveland.com/article/20170228/NEWS01/170229809/berkshire-hathaways-lubrizol-takes-365-million-loss-on-oilfield

It is amazing how Buffet has this public persona where if you went to work for him, you had a job till you die.  But in reality, if you made mistake, you get the boot or as they say "retire".   

Despite this, I think Berkshire has some of the best executive/employee retention track record.  Does anyone here know how Berkshire pays its managers and what are the tools to keep them on?
It seems to me he has this low risk culture for subsidiary executives. If they just dividend the money back to him they get paid more; if they risk some money: they better get it right; if they do get it right, then they get to manage a bigger subsidiary and get paid even more; if they get it wrong, they'd have been better off not taking unnecessary risks and letting Buffett manage the money... In other words: they are allowed to shoot fishes inside a dry barrel; if there is still water then they shouldn't risk it.

This kind of low risk culture is the exact opposite we see in public companies CEOs and seems to me is a big advantage for Berkshire wealth maintenance objective.

The whole subject of tuck in acquisitions and capital allocation at subsidiaries is a very important topic for the future. From the outside looking in, we can see some very aquisitive subs. Marmon, PCP, Midamerican etc. Would be a great question at the AGM. Understanding the parameters under which deals are allowed/made, how to determine the per share impact at the BRK level etc. It's not comforting to find out later.
« Last Edit: March 15, 2017, 11:45:09 AM by longinvestor »

villainx

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Re: Buffett/Berkshire - general news
« Reply #434 on: March 16, 2017, 10:13:50 AM »
This is unrelated to any ongoing thread, but an interesting divertissement: http://www.reuters.com/article/us-sec-kraft-heinz-idUSKBN16M2UI.

Security guard (or something else if he reviews emails for his boss) did some small inside trades.

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #435 on: March 16, 2017, 10:40:09 AM »
This is unrelated to any ongoing thread, but an interesting divertissement: http://www.reuters.com/article/us-sec-kraft-heinz-idUSKBN16M2UI.

Security guard (or something else if he reviews emails for his boss) did some small inside trades.

Yep, security guards and Martha Stewart get all the press and punishment but never Wall Streeters. Just yesterday, WSJ reported on the "possible" evidence that inside trading happens before release of public information, GDP, jobs report etc. Let's see what happens in Lower Manhattan post-Bharara.
« Last Edit: March 16, 2017, 10:49:01 AM by longinvestor »

globalfinancepartners

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Re: Buffett/Berkshire - general news
« Reply #436 on: March 17, 2017, 07:35:42 AM »
Small update on Ajit's reorganization of General Re (from Insurance Insider):
-----------------------
Gen Re shakes up international P&C leadership
Adam McNestrie and Catrin Shi
Gen Re has appointed new regional heads for its international P&C operations as part of a wider revamp of the reinsurer initiated by Berkshire Hathaway's Ajit Jain, The Insurance Insider understands.

Gen Re had previously divided its P&C reinsurance business into treaty and facultative arms, as well as underwriting and marketing operations, creating a plethora of senior roles in each region. The P&C business in each region will now have a single leader.

Achim Bosch, previously regional treaty marketing head, has been made P&C head for Germany, Central and Eastern Europe, and Benelux - which together form the largest part of Gen Re's international operations.

It is further understood that Gen Re's Spanish and Portuguese P&C operations will be headed by Adolfo Martinez, who was previously chief underwriter for treaty in the region.

Emmanuel Brouquier, regional manager for Europe excluding the UK and Germany, has taken on the role of P&C head for France, Scandinavia and the Middle East.

Andrew Flitcroft, previously treaty marketing head for Asia Pacific outside of Japan, is now P&C head for Australia and New Zealand. Rainer Schurmann, formerly treaty marketing head for Asia, has become P&C head for Asia, excluding Japan.

It is understood that a small number of senior staff have chosen to retire as part of the restructure, although most have remained in place under different roles, suggesting there may be further streamlining of management to come from Gen Re.

The restructure has only affected the P&C operations, with Gen Re's international life management structure remaining the same.

Berkshire Hathaway reinsurance chief Jain has set about restructuring Gen Re since the carrier fell under his remit when CEO Tad Montross retired last year.

Jain appointed Kara Raiguel as CEO, and has moved to simplify the complicated management structure of Gen Re in a bid to take out layers and speed up decision-making.

An initial reorganisation of the UK and Italian leadership in October last year, as revealed by this publication at the time, saw Faraday CEO Pietro Toffanello named P&C head for both countries.

Steve Michael, previously CEO of one of Berkshire Hathaway's legacy units,‎ then moved across to lead Gen Re's Lloyd's arm Faraday.

Gen Re did not respond to a request for comment.

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #437 on: March 20, 2017, 04:48:24 PM »
Berkshire 2017 Bracket Contest.

It seems like even the guys at Berkshire HQ are getting a bit bored. I really hope this thing is insured... - somewhere else!

It's not even 1st April yet.

Perhaps I should have posted this in the topic: "What do folks think or do while markets are at highs?"
« Last Edit: March 20, 2017, 04:58:46 PM by John Hjorth »
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alpha

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Re: Buffett/Berkshire - general news
« Reply #438 on: April 04, 2017, 07:35:59 AM »

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #439 on: April 04, 2017, 07:52:18 AM »