Berkshire Hathaway Annual Shareholder Meetings (since 1994) cover image

1995-Afternoon Session-BRK Annual Shareholders Meeting

Berkshire Hathaway Annual Shareholder Meetings (since 1994)

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How Much Capital Employed Do You Have?

Berkshire has different bonus arrangements at different companies it would be a big mistake with businesses with as many different economic characteristics or varying economic characteristics to have some formula approach that paid managers in all of these different businesses based on a simple formula of one kind. We don't believe in going through a lot of machinations if it's going to involve peanuts at the end so we do not have a a a capital charge even at those businesses. If they use a lot of capital they're gonna have a capital charge is what it amounts toSome businesses are easy business businesses some businesses are tougher businesses so we have different thresholds where things kick in based on itWe simply sit on and try and figure out

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