Berkshire Hathaway is the largest proof of concept for minimal organizational friction. While other trillion-dollar companies employ thousands at headquarters, Berkshire runs on 27 people and monthly financial reports. Trust replaces oversight. Accountability replaces approval chains.
27-person HQ, "delegation just short of abdication," subsidiaries make all operational decisions autonomously.
Subsidiaries self-correct (GEICO cut 7,700 jobs), but holding company slow to exit investment mistakes.
Knowledge distributed to where it is needed, no bureaucratic filtering, each subsidiary is independent.
Conglomerate structure enables flexibility, but capital-intensive subsidiaries create constraints.
Long tenure rewarded (Abel groomed 25 years), no up-or-out, but Glassdoor notes "low opportunities."
HQ is asset-light but subsidiaries mixed, insurance float is strategic advantage.
Monthly reporting (not real-time), information flows when needed not continuously.
"27 people managing $1 trillion is either the purest expression of organizational fluidity or a governance risk hiding in plain sight."
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