Charlie Munger: The Best Single Expense of Berkshire

Hat Tip: Aditya Shrimankar

“I almost despise the business of executive search because I find that they really want to sell you the best that’s available even if he’s no damn good and I don’t like that.

But the best single expense that Berkshire ever had as we paid an executive recruiting firm to find Ajit Jain to come in our little tiny insurance operation.

He doesn’t have any experience with insurance at all. He was an honors graduate of the main technical institute in India. He was a very smart man. He came in and create (our reinsurance business).

And that’s the only big business we created from scratch and Ajit created the whole damn thing.

And of course, he talked with Warren every night. And so, it’s like father and son. This is a very Confucian company and that was unbelievable.

So, we hired an executive recruiter and he brings us an Indian with no experience at all in insurance.

He talks to the old man every night, and it’s now by far the biggest reinsurance business in the world. That’s been a gold mine. There’s at least 60 billion dollars in Berkshire of net worth that Ajit has created that we would not have credit without him.”

said Charile Munger

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