Warren Buffet: Good business could be run by an idiot

, Education

Many would agree that the CEO is the most important part of success of a company. However, Warren Buffet, one of the richest men in the world, thinks that people should invest in a good business instead of a good CEO.

In a time when leadership skills are promoted and the media writes about the importance of a good leader, Buffet challenges these notions with only a few phrases.

During an interview from 2010, Buffet explained what attracted him to the management of Moody’s:

“I knew nothing about the management of Moody’s.  (…) I’ve also said many times in reports and elsewhere that when a management with a reputation for brilliance gets hooked up with a business with a reputation for bad economics, it’s the reputation of the business that remains intact.

If you’ve got a good enough business, if you have a monopoly newspaper, if you have a network television station — I’m talking of the past — you know, your idiot nephew could run it. And if you’ve got a really good business, it doesn’t make any difference.”

He points out that the leader is not so important if the business is high-quality.