Integrity, Autonomy, and Decentralization: Lawrence Cunningham on the Berkshire Hathaway Model

Gabelli100 | Oct 14, 2020 | Gabelli School of Business

By Claire Curry

The legendary billionaire Warren Buffett is best known for his distinctive value investment style. But there’s more to his success as chairman and CEO of Berkshire Hathaway Inc., the American conglomerate that owns companies like Geico, Benjamin Moore, and Duracell.

In this Centennial Speaker Series’ session, co-sponsored by the Museum of American Finance and the CFA Society of New York, with financial journalist Astrid Doerner, author, professor, and corporate governance consultant Lawrence Cunningham takes a look behind the scenes at Buffett’s unique managerial style, the subject of Cunningham’s latest book, Margin of Trust, co-written with Stephanie Cuba.

The Berkshire Model, Cunningham said, is “gaining prominence” among business leaders, researchers, and educators and influencing conversations and management approaches in boardrooms and classrooms around the nation.

“They appreciate the features of autonomy—that is, giving workers plenty of latitude, and decentralization, not having top-down commands,” Cunningham said. “They are also turning to Berkshire to understand how a focus on integrity, rather than internal control, can improve compliance.”