https://youtu.be/XPQt1yElRDY?si=qzLhDgIIAZHh3ixi
5 replies (most recent on top)
Charlie Munger was one of the greatest investors of all time.
He did not recommend losing your most experienced and productive employees, if you're trying to grow a company.
That's what SAS has done, through buyouts, layoffs, and "stealth layoffs" that targeted older, highly paid employees.
SAS got rid of these people on a basis of salary -- nothing else. SAS is cutting costs, in preparation for a sale.
I suppose Charlie would be OK with that -- if selling a company, not growing it, is the goal.
You quoting a Berkshire Hathaway fossil as an expert on anything is peak SAS culture.
"So, now that “30%” (as Munger says) have been let go, the company is working better?"
Not a chance. The 30% has been almost entirely retirements (early or otherwise due to the incompetence of management) or folks leaving for other jobs, and they were mostly productive and valuable employees.
I'm one of those folks who will forever be grateful to SAS, but current management is clueless about how to get SAS back on track. I sincerely think all they care about is positioning themselves to get a big payout before or when SAS implodes. Very sad to see.
Bingo. US Gov is a great example. Hopefully the incoming administration will trim the fat.
So, now that “30%” (as Munger says) have been let go, the company is working better?