Caleb Naysmith
2 min read
Warren Buffett, the legendary chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), has long been recognized for his unconventional yet highly effective leadership style. In his 2024 shareholder letter, Buffett offered a candid perspective on one of the most important aspects of corporate governance:
“One further point in our CEO selections: I never look at where a candidate has gone to school. Never!”
This statement is emblematic of Buffett’s broader philosophy: true leadership and managerial excellence are not defined by prestigious degrees, but by integrity, competence, and a proven track record. Buffett’s own history provides ample evidence for why this approach has become a cornerstone of Berkshire Hathaway’s enduring success.
Buffett’s career has been marked by a preference for straightforward, understandable businesses and managers who demonstrate honesty, ambition, and operational skill. He has repeatedly stressed that a company’s long-term prosperity hinges more on the quality of its people than on their academic credentials. This view is rooted in decades of experience, including his celebrated partnerships with managers like Pete Liegl of Forest River, Ajit Jain in insurance, and his late vice chairman Charlie Munger. These leaders, often without Ivy League backgrounds, have delivered extraordinary results through their dedication and business acumen.
Buffett’s hiring philosophy is further illustrated by his historical anecdotes. During the Salomon Brothers crisis in the early 1990s, Buffett was tasked with selecting a new CEO under immense pressure. He famously ignored resumes and academic records, focusing instead on the candidates’ character, judgment, and ability to handle complex situations. This approach, he has explained, ensures that only those with the right values and temperament are entrusted with leadership roles.
The emphasis on character over credentials is echoed in Buffett’s oft-cited criteria for hiring: intelligence, initiative, and — most importantly — integrity. Without integrity, he has warned, the other qualities can become liabilities. This principle has guided not only CEO succession at Berkshire, but also the company’s broader investment and management decisions.
