Buffett, Yang or Ballmer? A Contrast in Management Styles

Berkshire Hathaway (BRK.A), Yahoo (YHOO) and Microsoft (MSFT) have all been very successful companies. The ongoing success in any company depends a lot on the CEO’s management style. In each of these companies, the CEO’s are smart, intelligent, dedicated and extremely successful.

I thought it might be insightful to provide a light hearted parody to compare their management styles on different issues (at least as some people perceive them).

Why are you at the Company?

Warren Buffett [WB] - I just love what I do. I would do it for free.
Jerry Yang [JY] - I started the Company.
Steve Ballmer [SB] - Bill hired me. I love this Company!

What would happen to the Company after you were gone?

WB: We have a great team and a good succession plan. The Company will be fine.
JY: There is no Yahoo without the Chief Yahoo.
SB: Let me go ask Bill.

If you have a business that is promising but struggling, what should you do?

WB: We need to figure out the problem and fix it, or get out of that business.
JY: Don’t worry about it. We have good people and everything is cyclical.
SB: We need to figure out the business, create a problem then fix it. I love this Company.

What is your theory on acquisitions?

WB: We try to find companies with a great long term business that are inexpensive.
JY: We will only sell for over $38 a share.
SB: We only buy companies if we can’t copy what they do.

What is your theory on retaining management after acquisitions?

WB: We find good companies with great management, set a plan and let them manage.
JY: We try to buy good companies, and if they manage to do anything, that’s great.
SB: We hug them and then somehow manage to throw them out.

What about the Internet – any good investment ideas?

WB: I don’t get involved in anything I don’t understand.
JY: I like Google. We should think about partnering with them soon.
SB: I like Microsoft. We don’t understand anything we get involved in.

What about the Apple business focus and the iPhone?

WB: Seems like they know what they’re doing. A lot of people use it.
JY: I like Apple. We should think about partnering with them soon.
SB: Who’s going to buy an iphone for $500 when they can buy a Zune?

How do you think Google became so successful?

WB: I don’t know anything about Google.
JY: We still can’t figure it out, but we’re trying.
SB: Google successful? Yeah right! We’re going to kill Google.

What was the simplest theory “you developed” to try to make a lot of money?

WB: It’s not about the razors, it’s about the blades.
JY: We will only sell for over $38 a share.
SB: The graphical user interface. Right Bill?

What are your theories on negotiation?

WB: Everything’s negotiable.
JY: Everything’s negotiable?
SB: Take it or leave it.

How do you conclude deals?

WB: We agree on terms and then shake hands.
JY: Hmmmn, tough one – get it in writing?
SB: On our terms.

Do you do anything for long term employees?

WB: We give them a good pension and a gold watch.
JY: We let them clean David Filo’s cubicle.
SB: Bill and I haven’t decided what we want yet.

What do you do if the price of your Company Stock falls?

WB: The best time to buy a good company is when it is on sale.
JY: I like to blame Terry Semel.
SB: I like to reprice options. I love this Company.

Do you do anything fun at Shareholder meetings?

WB: I like to play the ukulele, it’s folksy.
JY: Uh, I’m trying to stay clear of shareholder meetings for a while.
SB: I like to jump around on stage, it’s Crazy. Did I say I love this Company?

Do you follow the old management philosophy “KISS”?

WB: Yes, Keep It Simple Stupid. It’s all we need.
JY: Yes, Keep Indulging Starting Shareholders.
SB: Yes, Keyboards, Internet, Solar System. We need it all.

So you’re so rich – why do you keep coming into the office? For the money?

WB: No, it’s not about the money. JY: For anything over $38 a share SB: I love this Company!

Who is the person most responsible for your success?

WB: My good friend and partner, Charlie Munger.
JY: My good friend and partner, David Filo.
SB: My good friend and partner, Bill Gates.

So whatever your management style, it really pays to have a good partner.

Disclosure: None

Comments

[John from C...:]

Dead on and absolutely hilarious

2008 May 09 01:00 PM

[kurt walter:]

GDP was up .60 percent last quarter. No recession. I know the media has been trying to talk down the economy to get a democrat in the white house. It worked in 1992. Second, I thought Buffett always said he doesn't try to forecast the economy. He only looks for businesses with good value and a wide moat. .. What gives, Warren? I do think Warren is overexposed. I can't seem to live a day without hearing his name mentioned. Now he is on a soap opera? He has a lot of money, okay, great. But, it would be nice for him to disappear for awhile. Enough.

2008 May 09 01:45 PM

[Andy the Or...:]

Great article; it's not really tongue in cheek, it's truth 101!

2008 May 09 03:53 PM