The trading scandal surrounding ex-Berkshire executive David Sokol is a sign Berkshire has grown too large for Warren Buffett to manage without compliance procedures, says author and RAM Partners founder Jeff Matthews. “And that one guy with 21 people in the home office can’t handle the doings of 260,000 people around the world, and maybe they’re going to have to implement some of the kinds of things that Buffett really doesn’t like,” Matthews said.
“Well, a very big compliance operation. When you’re a big insurance company dealing with pretty much every company [on] the face of the planet and you owned manufacturing businesses around the world, deal with companies everywhere, you probably have to have the kind of procedures that a GE would have. And I’m sure that drives Buffett crazy but he really can’t do it just sitting in his office.”