Warren Buffett and his company, Berkshire Hathaway, are legendary for
their distinctive investing approach. Yet many equally unconventional
but less well known aspects of Berkshire's managerial practices and
organizational structure are rich with lessons for those seeking to
follow in Buffett's footsteps. Margin of Trust is the first book to
distill Buffett's approach to management and corporate life. It provides
a definitive analysis of the tenets of the Berkshire system, its costs
and benefits, and how it can be adapted for other organizations.
Lawrence A. Cunningham and Stephanie Cuba develop a new account of how
Berkshire Hathaway works, showing that the key to its success is trust.
Profiling partnership practices and business methods, they contend that
Berkshire's distinguishing feature is a culture in which autonomy and
decentralization are core management principles. Cunningham and Cuba
provide instructive examples of how this model has been successfully
adapted by other companies that share a faith in trust as an organizing
principle. They also offer candid commentary on the risks of a
trust-based approach and how to mitigate them. Margin of Trust
features illuminating analysis of Buffett's take on the role trust plays
in business agreements, what Buffett looks for in great corporate
boards, and what lies ahead for Berkshire after its iconic leader leaves
the scene.