Video Link: https://youtu.be/L7-NOf1dFKc
In this episode, Charlie Munger was asked since he's getting older, how does he make the decision to step back if he may not have the mental acuity to make that decision?
In this episode, you’ll learn:
Berkshire Hathaway succession.
Charlie Munger comment on the next generation of Berkshire Hathaway.
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ANDY SERWER 00:00
I want to ask you about something that's talked about all the time with you guys, which is succession. And again, you talk about that all the time. And there's been countless barrels of ink spilled. But if you're getting older, how do you make the decision to step back if you may not have the mental acuity to make that decision?
CHARLIE MUNGER 00:25
Well, I think you'll be surprised at how well both Warren and I are capable of stepping back when we feel that our powers are too far deteriorated.
ANDY SERWER 00:41
Have you talked about that?
CHARLIE MUNGER 00:42
Sure. And Warren has told people to speak up when the time comes. If we've been rational all this way, do you think we're not going to try and be rational right to the bitter end?
ANDY SERWER 01:00
Is the process-- I mean, we're sort of in the middle of the process. You've been giving more and more control or authority to Ajit and Greg and Todd and Ted. So it's sort of a continuum of processes like that?
CHARLIE MUNGER 01:16
Of course. And by the way, it's working fine. It's amazing how good this next generation is and they're steeped in our non-bureaucratic ways. There's these big bureaucracies. They think the work is done if you get out it of your inbox and into somebody else's inbox. That is not getting it done. Getting it done is when it's done, not when it's in somebody else's inbox. And if everybody's in a big committee meeting all the time, you're worn out at the end of the day and you haven't done anything.
ANDY SERWER 01:53
Are Ted and Todd making all the stock choices at this point?
CHARLIE MUNGER 01:58
No, of course not. Warren steps in and does big things.