Warren Buffett’s best speech

In opening remarks delivered to a Congress subcommittee investigating Salomon’s violations September 4 1991 Buffett spoke bluntly of the foul up at Salomon and, more significantly, the business ethos he holds dear; one which he was trying to instil in the bank.  Each May a video clip of this 2 minute speech is played (https://www.c-span.org/video/?21029-1/securities-trading-investigation) at Berkshire Hathaway’s AGM reminding Berkshire managers and shareholders alike the standard of integrity and common decency expected of everyone who works for the firm or its subsidiaries and associates.  If all high-flying executives in all companies followed these precepts the world would be a much better place.

Warren Buffett testifying to Congress 1991

“I would like to start by apologising for the acts that have brought us here. The nation has a right to expect its rules and laws to be obeyed, and at Salomon certain of these were broken.

“Almost all of Salomon’s 8,000 employees regret this as deeply as I do, and I apologise on their behalf as well as mine.

“My job is deal with both the past and the future.  The past actions of Salomon are presently causing our 8,000 employees and their families to bear a stain.  Virtually all of these employees are hard-working, able and honest.

“I want to find out exactly what happened in the past so that this stain is borne by the guilty few and removed from the innocent.

“To help do this I promise you Mr Chairman and to the American people Salomon’s whole-hearted co-operation with all authorities. These authorities have the power of subpoena, the ability to immunise witnesses and the power to prosecute for perjury.

“Our internal investigation has not had these tools – we welcome their use.

“As to the future, the submission to this sub-committee details actions that I believe will make Salomon the leader within the financial services industry in controls and compliance procedures.

“But in the end, the spirit about compliance is as important, or more so, than words about compliance. I want the right words and I want the full range of

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