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Warren Buffett does not pay market salaries to his top level managers. Those managers can get a significant hike if they switch yet most stick with Buffett because they like working for him.


Though you haven't really provided anything to backup the claim that Buffet's managers stick with him (I'd honestly be interested to read more about that) I'll take it at face value, as it seems sensible. However, as a specific example this is at the extremes, to the point of being absurd really. Few, if any, companies are their industry's equivalent of Warren Buffet, nor will they ever be. That doesn't necessarily make them bad companies either.

Besides, I'd hazard a guess is that the issue of being paid "enough" is well past the point of being an issue for any of these top level managers. They are all probably almost absurdly well compensated. This doesn't disprove the assertion that for the vast majority of positions and salary ranges, differences in salary, as the article discusses are significant to the extreme. is a point below which it does make a difference.

In the end there is little real benefit to these managers to be gained from walking away from one of the best and most well known people in finance for money you don't need.


Buffett said it himself in couple of his annual reports although I cannot remember right now which one.

I will reply tomorrow if I can remember till then you can read what Charlie Munger (Berkshire Hathway's VP) has to say on this

http://www.gsb.stanford.edu/sites/default/files/38_Munger_0.... ( Page 3)

and check out Alice Schroeder's comments

https://www.youtube.com/watch?v=PnTm2F6kiRQ&feature=youtu.be...




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