Buffett’s management style is decentralized, relying on high trust in autonomous leaders.
He famously told his managers: "We can afford to lose money—even a lot of money. But we can't afford to lose reputation—even a shred of reputation". Buffett’s management style is decentralized
For Buffett, reputation is the most valuable asset a company or individual can possess. it should be returned to shareholders.
Rationality is most critical when deciding what to do with company earnings. He expects managers to reinvest money only if it can generate a return higher than the cost of capital; otherwise, it should be returned to shareholders. Buffett’s management style is decentralized