train_tracks_third_rail__crop_sDo you have like-minded partners? Warren Buffett and his right hand business partner Charlie Munger have walked together for a long time. Warren met Charlie in 1955 and Charlie has held the seat of Vice Chairman of Berkshire Hathaway since 1977. Together they have built the Berkshire Hathaway conglomerate on a set of simple core values and beliefs. Quietly kept, GEICO, Dairy Queen, and Fruit of the Loom are household names that are within the list of subsidiaries that fall under the umbrella of Berkshire Hathaway. The current price of the BRK-A (Berkshire) stock is a whopping $213,100/share and the company’s stock-market value is 337B. To put the value of this stock in perspective, General Electric is valued at 260B. To say the least, this pair of old school investors have made a lot of new money.

Warren and Charlie:

1.Invest in what they know

2.Don’t buy companies with bad managers

3.Recognize the limits of their knowledge

4.Have gumption and patience

What is the secret that allows people to stay in a partnership for decades? Where does the staying power originate?

Warren and Charlie are like an electric railroad system.

  1. The parallel rails or tracks represent their like-minded tendencies.
  2. They receive their power from the third rail which represents their values, beliefs and attitudes.
  3. The train and its cars represent the corporate goals.

Stay with me… What happens if Warren and Charlie start to grow in different directions?

  • If they no longer see eye to eye,  the train may derail.
  • If one party abandons their shared belief system  or values, they lose power!
  • The lack of like-mindedness forces seaparation from the source of power, the third rail.
  • Eventually, the system (company) will lose momentum and the goals are not reached

It’s the third rail that has been a vehicle for these guys to intentionally build their culture and power base.
Take some time to think about your relationships. Where does the binding power originate? How much more can you accomplish when you have intentionally created a “like-minded” environment?

“Building relationships is hard work;  however, it’s easier to stay in long-term relationships when you share the same core values.”
– Rod Sullivan