Berkshire Beyond Buffet: Excerpt from Chapter 8

Lawrence Cunningham's new book Berkshire Beyond Buffet is scheduled to be released on Oct 21st, though you can find here the chapter 8 from the book. Below, notice Berkshire's tenets for its subsidiaries' CEOs praising independence, trust and an owner's mindset:

"Berkshire corporate policy strikes a balance between autonomy and authority. Buffett issues written instructions every two years that reflect this balance. The missive states the mandates Berkshire places on subsidiary CEOs: (1) guard Berkshire’s reputation; (2) report bad news early; (3) confer about post-retirement benefit changes and large capital expenditures (including acquisitions, which are encouraged); (4) adopt a fifty-year time horizon; (5) refer any opportunities for a Berkshire acquisition to Omaha; and (6) submit written successor recommendations. Otherwise, Berkshire stresses that managers are chosen because of their excellence and are urged to act on that excellence."