Trust is always important, especially in the workplace. But for Warren Buffett and the executives who run Berkshire Hathaway's 62 subsidiaries, trust is more than just important. It's essential.
That's likely why Buffett seems confident that his latest acquisition, his largest in nearly seven years, will be successful. On Monday, the billionaire investor's holding company, Berkshire Hathaway, announced a planned $11.6 billion acquisition of insurance company Alleghany — led by CEO Joseph Brandon, a man Buffett described as a "long-time friend."
Their relationship goes back at least two decades: From 2001 to 2008, Brandon served as chairman and CEO of insurer General Re, which is owned by Berkshire. That means Brandon has worked for Buffett before, and he's clearly earned the Oracle of Omaha's trust.
"I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon," Buffett said in a statement announcing the deal, adding: "Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years."
