Here’s the one-page memo Warren Buffett despatched to his managers each two years for over 25 years

Even though he may seem like an easy-going, Coca-Cola-loving old man, he admits his leadership style can sometimes be “ruthless.” In fact, the billionaire sent a stark reminder to his manager every two years of his nonnegotiables, which include “to zealously guard Berkshire’s reputation,” something he believes is the foundation of the entire enterprise.

“We can afford to lose money—even a lot of money. But we can’t afford to lose reputation—even a shred of reputation,” the 94-year-old recalled in a social media post that’s currently recirculating, just months before he’s due to leave the company he’s led for over 50 years. 

Since taking over what was once a struggling textile firm in 1965, the well-known investor, worth $152 billion, has turned Berkshire Hathaway into one of the largest businesses in the U.S. Under his leadership, Berkshire hit a market cap of $1 trillion this year. But from January 2026, Berkshire will no longer be under Buffett’s leadership; instead, the memo will serve as a reminder that its future reputation lies in the hands of the staff. 

“We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly, but intelligent, reporter.”

Safeguarding reputation has been an ongoing theme in Buffett’s history—in a 2010 shareholder letter, he revealed that he’d sent that exact same reputation reminder note to staff for over 25 years and counting. 

Famously, in 1991, while addressing members of Congress as the investment bank Salomon Brothers’ chairman, Buffett delivered this message to his employees: “Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.”

That sentiment was echoed by other business-leading billionaires like Jeff Bezos, who said, “Your brand is what other people say about you when you’re not in the room.”

The need to always plan for the future

This May, the legendary investor announced he would be stepping down as CEO by the end of the year, passing the reins to his successor, Greg Abel, after seeing how much he could do in a working day. 

And as a succession planning request, Buffett asks that his managers provide a handwritten letter on any future recommendations to take their place, adding that the letter will be seen by no one unless he is no longer CEO. 

“I need your help in respect to the question of succession. I’m not looking for any of you to retire, and I hope you all live to 100. (In Charlie’s case, 110.)”  Charlie Munger, who passed away in November 2023 at the age of 99, was Buffett’s close friend, trusted partner, and sounding board for over 60 years. 

“But just in case you don’t, please send me a note or email giving your recommendation as who should take over tomorrow if you should become incapacitated overnight,” Buffet wrote. 

Going forward, Buffett told the Wall Street Journal he will still be going to the office. 

“I’m not going to sit at home and watch soap operas. My interests are still the same.”

Read the full one–and–a–half–page memo

To: Berkshire Hathaway Managers (“The All-Stars”)
cc: Berkshire Directors
From: Warren E. Buffett

Date: December 19, 2014

This is my biennial letter to reemphasize Berkshire’s top priority and to get your help on succession planning (yours, not mine!).

The top priority–trumping everything else, including profits–is that all of us continue to zealously guard Berkshire’s reputation. We can’t be perfect but we can try to be. As I’ve said in these memos for more than 25 years: “We can afford to lose money – even a lot of money. But we can’t afford to lose reputation – even a shred of reputation.” We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter.

Sometimes your associates will say “Everybody else is doing it.” This rationale is almost always a bad one if it is the main justification for a business action. It is totally unacceptable when evaluating a moral decision. Whenever somebody offers that phrase as a rationale, in effect they are saying that they can’t come up with a good reason. If anyone gives this explanation, tell them to try using it with a reporter or a judge and see how far it gets them.

If you see anything whose propriety or legality causes you to hesitate, be sure to give me a call. However, it’s very likely that if a given course of action evokes such hesitation, it’s too close to the line and should be abandoned. There’s plenty of money to be made in the center of the court. If it’s questionable whether some action is close to the line, just assume it is outside and forget it.

As a corollary, let me know promptly if there’s any significant bad news. I can handle bad news but I don’t like to deal with it after it has festered for awhile. A reluctance to face up immediately to bad news is what turned a problem at Salomon from one that could have easily been disposed of into one that almost caused the demise of a firm with 8,000 employees.

Somebody is doing something today at Berkshire that you and I would be unhappy about if we knew of it. That’s inevitable: We now employ more than 330,000 people and the chances of that number getting through the day without any bad behavior occurring is nil. But we can have a huge effect in minimizing such activities by jumping on anything immediately when there is the slightest odor of impropriety. Your attitude on such matters, expressed by behavior as well as words, will be the most important factor in how the culture of your business develops. Culture, more than rule books, determines how an organization behaves.

In other respects, talk to me about what is going on as little or as much as you wish. Each of you does a first-class job of running your operation with your own individual style and you don’t need me to help. The only items you need to clear with me are any changes in post-retirement benefits, acquisitions, and any unusually large capital expenditures. But I like to read, so send along anything that you think I may find interesting.

I need your help in respect to the question of succession. I’m not looking for any of you to retire and I hope you all live to 100. (In Charlie’s case, 110.) But just in case you don’t, please send me a letter or email giving your recommendation as who should take over tomorrow if you should become incapacitated overnight. These letters will be seen by no one but me unless I’m no longer CEO, in which case my successor will need the information. Please summarize the strengths and weaknesses of your primary candidate as well as any possible alternates you may wish to include. Most of you have participated in this exercise in the past and others have offered your ideas verbally. However, it’s important to me to get a periodic update, and now that we have added so many businesses, I need to have your thoughts in writing rather than trying to carry them around in my memory. Of course, there are a few operations that are run by two or more of you – such as the Blumkins, the Merschmans, the pair at Applied Underwriters, etc. – and in these cases, just forget about this item. Your note can be short, informal,handwritten, etc. Just mark it “Personal for Warren.”

Thanks for your help on all of this. And thanks for the way you run your businesses. You make my job easy.