Investment firm Berkshire Hathaway is one of the world's most successful companies, thanks to the shrewd leadership of Warren Buffett.
But even the self-made billionaire has shortcomings.
Though he’s very disciplined about most aspects of the business, the legendary investor said at his company’s 2014 shareholder meeting that when it comes to hands-on management, he’s “sloppy.” Specifically, Buffett doesn't like letting go of managers at his subsidiary companies or telling them what to do.
“A clear weak point of mine would be I’m slow to make personnel changes,” the billionaire admitted. “There will be times when, what you might call, our lack of supervision over subsidiaries [means we] miss something.”
With his vice chairman Charlie Munger beside him, Buffett recounted a scenario where an ineffective manager was allowed to stay on for too long.
“Charlie and I had a wonderful friend who couldn’t have been a greater guy. And, you know, we were slow to make a change there. We loved the guy,” Buffett recalled. “We’ve waited too long on managers."