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Before heading down to Eugene, our sales and marketing team proposed the idea of hiring a small prop plane to fly a “Run Happy” banner above Hayward Field during the competition to cheer on the athletes. Nike, of course, had a tight lock on trials sponsorship, including a twenty-seven-year deal with USA Track & Field, but it didn’t own the airspace. Rick Wilhelm, head of sales for specialty stores;Jesse Williams, head of sports marketing; and I got up Saturday morning and took our guests to the competition at the field. We all got through security and found our seats in the sold-out stadium. Then we got set to watch the fastest athletes in America compete for spots on Team USA for the 2012 London games. It was great to see the airplane and our banner circling the stadium on a perfect sunny day. It was also clearly attracting Nike’s attention. There were huddles near the track, and we noticed a Nike marketing guy had the ear of a marketing director for USA Track & Field. Nike was clearly not happy with us. The marketing director marched up the bleachers and began to yell at us, “I said no guerilla marketing at the trials!” That night, we discussed at length if we should fly the plane the next day. We had our pilots clear it with the FAA to make sure it was all legal. We even got off-the-record feedback from USA Track & Field officials who encouraged us to keep flying it. The conclusion on whether to cheer on the athletes with “Run Happy”? Hell, yes! And so on Sunday we did it again. This time, another plane (I assume it was Nike’s) took to the skies above Hayward Field and successfully nudged our own plane and Run Happy banner farther from the competition. The marketing director returned for more animated discussions along with Nike people and security, and this time they asked us all to leave. Since we had paid full price for our tickets, we asked why and on what basis they were kicking us out. The answer was on the back of the tickets. They were only a “license to attend” that could be revoked at any time for any reason. And so they were revoked. Rick, Jesse, and I volunteered to leave so our guests could remain and enjoy the competition. We walked out to the beer garden and watched the remaining events from a distance.
Warren tells executives to look for three qualities in the people they hire: intelligence, energy, and integrity. He adds if you don’t have the last one, don’t even bother with the first two. Charlie Munger has his ABCs—avoiding arrogance, bureaucracy, and complacency. We remind ourselves of them often. Warren also taught me that a CEO is the chief risk officer. Risk is not something to be delegated. To that, he appends the quip not to do anything you wouldn’t want to see on the front page of the daily newspaper. A chief risk officer’s responsibilities include hiring high integrity people who take accountability seriously. Charlie and Warren believe in a culture in which trust is earned. It is deserved or not deserved. A company like Enron had great vision and values statements and books of rules and policies, but they weren’t worth the paper they were printed on, because so many people from the top down ignored them and behaved badly.
There is one Berkshire meeting for managers each year and the lineup includes a luncheon and CEO panels on relevant business topics. I first attended in 2013. Warren hosted the lunch, a simple affair with burgers on one side and salads on the other. No slides or spreadsheets. He just stood up and spent a few minutes highlighting a good year across the businesses and thanked everyone for their efforts. He said the only failure was on him because he couldn’t find an acquisition that year to invest the cash flow all of the businesses were creating. “Let’s have a good year next year too.” And that was it. The only business meeting of the year for one of the most significant companies in America had lasted about ten minutes.