Warren Buffett, the longtime chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is celebrated for his disciplined, value-oriented approach to investing. In his 1981 shareholder letter, Buffett articulated a principle that continues to guide Berkshire’s acquisition strategy: “we would rather buy 10% of Wonderful Business T at X per share than 100% of T at 2X per share.”
This philosophy stands in contrast to the prevailing mindset among many corporate managers, who often prioritize full ownership and control, sometimes at the expense of economic rationality. That’s because Buffett’s reasoning is rooted in a focus on maximizing real economic benefits rather than expanding managerial domain or inflating accounting figures.
