In other words, they're smart, and that's why they continue to succeed.
Yep. To expand on my previous post (which was from my iPhone - not a device for pontificating), my employer became fascinated by the stock price back in the '90's and started making sacrifices to drive short term earnings (to meet promises made to stock analysts) at the expense of what would be best for the long term.
At some point, that behavior drove the stock price down to a bargain price and Berkshire acquired the company.
With that buyout, the short term mentality changed. The edict came down that stock price isn't the goal, intrinsic value is, and manage to that. My employer's profits rose substantially after the short term "drive the stock price" mentality went away.
As I said before, Berkshire has been very hands off. From a practical standpoint, corporate doesn't get involved with day to day operations, business strategy, etc. My understanding is that corporate's involvement is essentially limited to required periodic reports and to buying-in and providing funding for various acquisitions my employer has made since being purchased by Berkshire.
For my employer and its employees, being purchased by Berkshire was a very, very good thing. I hope the OP's friend has the same experience.
