Warren Buffett has shared an inspiring story about Pete Liegl, the founder of Forest River, a recreational vehicle manufacturing company. Despite selling the company to Berkshire Hathaway 19 years ago for $100 million, Liegl remained committed to running the business and continued to deliver exceptional results.
In his recent annual letter to shareholders, Buffett recalled the day he met Liegl in 2005. Initially, Buffett was surprised when Liegl asked for only $100,000 per year in compensation, citing a desire not to exceed his boss’s salary. However, this was just the beginning of an impressive partnership between Buffet and Liegl.
Over the next 19 years, Forest River experienced remarkable growth under Liegl’s leadership, with no competitor able to match its performance. Buffett attributed Liegl’s success to his natural talent, saying “a very large portion of business talent is innate with nature swamping nurture.” The unlikely partnership between Buffet and Liegl not only delivered financial success but also fostered a lasting friendship.
The story serves as a testament to the importance of understanding and respecting an entrepreneur’s goals and motivations. As Buffett noted, his approach to compensation may not be suitable for everyone, but it clearly worked with Liegl.
Source: https://upstox.com/news/personal-finance/investing/how-a-man-sold-his-company-to-warren-buffet-for-100-000-salary-and-made-billions-for-berkshire-shareholders/article-148274