Core Insights - Warren Buffett's commitment to aligning the interests of Berkshire Hathaway's management with those of its shareholders has been a fundamental reason for investor trust over the years [1][6] - In his 1994 letter, Buffett acknowledged that future returns would be more modest but emphasized that any gains or losses would be shared equally with shareholders [2][5] - Buffett's approach countered the trend of executive compensation in corporate America, which often favored short-term gains and insulated executives from long-term consequences [4] Compensation Structure - Buffett explicitly rejected compensation structures that would allow management to benefit disproportionately from positive outcomes while avoiding negative consequences [4] - This stance was particularly notable as it diverged from the increasing prevalence of performance bonuses and stock options in other public companies [4] Personal Investment Alignment - Buffett and his partner Charlie Munger ensured that their personal wealth was primarily invested in Berkshire shares, reinforcing their commitment to the company's performance [6] - This alignment meant that their financial well-being was directly tied to the success of Berkshire, further enhancing trust among shareholders [6]