I am Yoshida, president of Yamada Shusei Ltd., a professional apparel garment repair group in Nagaoka City, Niigata Prefecture.
In this issue, I would like to share with you his words on the “abilities necessary for successors” from “Warren Buffett In His Own Words” (edited by David Andrews, translated by Fumiko Ishida, Bunkyosha).
My successor will need one more special ability. That is the ability to eliminate the three ABCs of corporate failure: ARROGANCE, BUREAUCENCY, and COMPLACENCY. The infestation of these maladies, which are a cancer on a company, will weaken even the most powerful companies.
February 2015 Letter to Berkshire Hathaway Shareholders
These words illustrate an important lesson for the sustainable growth and success of a company. As Buffett points out, arrogance, bureaucratic thinking, and complacency are factors that seriously undermine a company's competitiveness. Successors must understand these factors and be ever vigilant.
