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Margin of Trust: The Berkshire Business Model

Lawrence A. Cunningham and Stephanie Cuba

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Summary

Cunningham and Cuba examine how Berkshire Hathaway operates through trust, delegated authority and partnerships. Their account considers the benefits and limits of this structure, including its use in deals, boards and succession. It is a study of Warren Buffett’s management system, rather than a guide to choosing stocks.

  • SourceColumbia University Press: Margin of Trust · Publisher description, author credits and contents: Partnership Practices; Business Methods; Deals; Boards; Scale; Succession

Why read it Our view

Use the management chapters to test where to give a business unit freedom and where oversight is needed. The discussion of agreements, boards and scale lets founders examine the costs and risks of trust alongside its benefits.

Written about

  • Warren BuffettManagement-study subject
    A study of Buffett’s approach to managing Berkshire Hathaway. Buffett is the subject; Cunningham and Cuba are the authors.
    Source