Molson Hart

1. Thanks. 2. Any idea as to what the equity/salary splits were? No stock-options outside of the right to purchase BRK.A on the public market right?

No equity as far as I can recall. It's just cash. Buffett is notoriously tight with Berkshire equity.

Fake it until you make it. Copy Berkshire until you understand why they do what they do the way they do it.

I think most of what they do is pretty simple to understand. Their unconventionality is often a function of the fact that they think from first principles instead of copying others mindlessly.

They do a lot of interesting stuff. I'd be hard pressed to explain all the ins and outs of the following: 1. No dividends 2. Public not a private company 3. Cash compensation based on Kpis only 4. No negotiation, take it or leave it offers 5. Insurance company float

1. No dividends is because historically Buffett could reinvest cash into better investments than most other investors could. Also, share buybacks more tax efficient.

2. Public company structure was actually an accident. Buffett and Munger have called it a colossal mistake with no explanation. If they could re-do it, they would've bought their first insurance business in a private company.

3. Paying by KPIs in cash is rational. Buffett is laser focused on incentivizing right behavior and doesn't want to reward/punish managers for factors outside their control. Rewarding with BRK equity is very costly (or has been historically).