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The Essays of Warren Buffet

Mindware

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How to Buy a New Subsidiary at Berkshire

Berkshire would buy new subsidiaries with cash, not newly issued stock. Buffett wanted continuous maximization of the rationality and devotion of most important people in the system starting with himself. No other large corporation I know has half of such elements in place. Good luck and a weirdly intense, contagious devotion of some shareholders were also factors.

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