Buffett is giving all his wealth to charity, including through the Bill and Melinda Gates Foundation and foundations organized by Buffett’s children. This is an uncommon move in corporate-philanthropic history. Other magnates have left a legacy graced by their name in perpetuity, whether via foundations or schools—besides Munger and Pritzker, think of Carnegie, Ford, Kellogg, or Rockefeller. Buffett’s route is characteristically unusual, even as it speaks to an aspiration widely held. Most of us wish to leave a mark, something lasting. Buffett’s legacy is not ultimately measured in money but in Berkshire, its values, its people, and its businesses.
In poker, Buffett has often noted, they say that if you have joined a game but do not know who the patsy is, then you are the patsy. Traits that characterize Berkshire culture form the foundation of trustworthiness: it is reasonable to trust companies and managers who are budget-conscious, earnest, reputable, kin-like, self-starters. Being hands-off and granting autonomy, then, is an act of faith, based on trust. It is not an act of blind faith, however, so long as the trusting soul knows something about the matters entrusted. This, in turn, implicates the rudimentary trait, referring to a business that is basic and easy to understand.
Neutralize the risk of being the patsy by sticking with simple, basic businesses both sides would be happy to live with forever, and then collect group members who value those other traits. This is a promising recipe for success. It works for Berkshire—in the past as it should in the future—and can work for other organizations. The values underlying the model can be readily adapted. And, ultimately, always remember that there is value in values.