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There is a stark contrast in the former SolarWinds CEO response versus Berkshire Hathaway CEO Warren Buffet's attitude. I noticed an interesting statement in Bu
by quallzone 6y ago
There is a stark contrast in the former SolarWinds CEO response versus Berkshire Hathaway CEO Warren Buffet's attitude. I noticed an interesting statement in Buffet's 2020 earnings report:
"The final component in our GAAP figure – that ugly $11 billion write-down – is almost entirely the quantification of a mistake I made in 2016. That year, Berkshire purchased Precision Castparts (“PCC”), and I paid too much for the company. No one misled me in any way – I was simply too optimistic about PCC’s normalized profit potential. Last year, my miscalculation was laid bare by adverse developments throughout the aerospace industry, PCC’s most important source of customers." . . . "I was wrong, however, in judging the average amount of future earnings and, consequently, wrong in my calculation of the proper price to pay for the business. PCC is far from my first error of that sort. But it’s a big one."
WOW. I rarely see that level of accountability at senior organizational levels.
- jtsiskin 6y agoSolarWinds: “My intern had prepared a report on PCC’s profit potential, which I used to decide the purchasing price. It turns out the intern had not followed our financial analysis framework correctly. This mistake therefore lies squarely on the interns shoulders, please talk to them if you have any complaints. My company and I should not be blamed.”
- throwaway888abc 6y agoThere is a man and Man.