Question
How the richest people are able to manage so many companies?
I would like to know how the wealthiest people are able to manage so many companies sucessfully. For example Warren Buffet has an empire. He own CocaCola, Geico, Gillette and many other companies. Sometime they dont even know anything about the field. For exam one of the 50 riches people that manage a Biotechnology company calle Senovo doesnt even hold a science degree. So, I am wondering how they do it. I want to create a conglomerate but I really dont know how to be able to manage so many companies without getting crazy. Sometimes I help my dad to manage his small company but it is very stresfull, so I wanted to know how they do it.
2 months ago - 2 answers
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warren buffet manages a company called Berkshire Hathaway which invests in the companies you listed. He does not manage those companies. he invest in those companies because the mangers mirror his philosophies in terms of management. one thing that makes Buffet successful is employing CEOs that are on the same page as himself. intsead of investing in a company he thinks of it as investing in the manager. as for the company Senovo, a company that large needs a person with a business degree. im sure there employ science related people as VP but a corporation needs to be run by someone who has an MBA. look at Microsoft, the current CEO is steve ballmer who is a business person not a tech guy like bill gates.
Source(s)
essentials of corporate finance written by Warren Buffet
2 months ago
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Other Answers
The key is to staff each company with highly skilled people and trust them to do their job correctly. Small companies often end up staying small because the owner either doesn't have highly skilled people under him (not that they aren't skilled at their own job, but none of them may be skilled at managing so your dad has to manage everything himself), or they aren't comfortable with delegation. Delegating to others is actually very difficult because you have to give people the room to succeed, but that also means they have the room to fail.
by malica- 2 months ago