By Chip Cutter

For chief executives across America, Warren Buffett isn't just an unrivaled investor. The Oracle from Omaha is a regular source of management wisdom that business leaders have drawn on for decades.

Buffett hasn't been shy about sharing his views on how companies should operate. He has railed against corporate bloat, heaping scorn on PowerPoint presentations, meetings, overpaid board members and what he has described as "make-work activities" at companies. At Saturday's Berkshire Hathaway meeting, he once again called bureaucracy dangerous and said many big companies could be run better.

David Novak, former CEO of Yum Brands, recalls a simple question from Buffett that changed the way he ran the fast-food giant behind Pizza Hut, Taco Bell and KFC.

"Do you ever talk about what could go wrong?" Buffett asked him over lunch at an Omaha KFC. Rarely, Novak replied. Buffett suggested being upfront about potential challenges could build trust.

From then on -- at the end of presentations to investors and others -- Novak says he often shared two or three potential pitfalls the company faced.

"Once I started doing it, I realized he was 100% right on," Novak said.

Here's a sample of Buffett's advice, from the CEOs who took it to heart:

Jim Weber, former CEO of Brooks Running

Jim Weber's first meeting with Buffett was around 2011, and Brooks was a subsidiary of Fruit of the Loom, a Berkshire company. Over three hours in Buffett's Omaha office, Weber walked through the company's strategy and ambitions.

"Why doesn't Nike just squish you?" Weber recalls Buffett asking.

Weber explained that Brooks had built a loyal customer base of performance runners, who tended to buy multiple pairs of Brooks sneakers a year. Months later, Buffett decided to spin Brooks out of Fruit of the Loom and into its own Berkshire unit.

When the Journal reported that a then 27-year-old Mark Zuckerberg had upgraded his sneakers from Adidas to Brooks, Buffett sent the article to Weber with a note: "Jim, this is great. We just need a couple million more of these customers."

The biggest lesson Buffett taught him? Keep focused on the long term. When a stronger dollar meant Brooks was making less money on shoes in Europe, Weber called Buffett for help.

After listening, Buffett said: "Ignore all that, because you can't do anything about it," Weber recalls. "He said, 'If I were you, I'd focus on your customer.'"

Larry Culp, CEO of GE Aerospace

Larry Culp spoke with Buffett early on in GE's decision to split into three standalone companies.

"He shared two pieces of advice with me that have been critical to our success," Culp said. "First, and most important, pick the right leaders -- not only for their ability, but for their values. And second, set ambitious but not unreasonable expectations."

William C. Foote, former CEO of USG and former chairman of the board of the Federal Reserve Bank of Chicago

Over dinner at one of Buffett's favorite restaurants in Nebraska, the now-closed Piccolo Pete's, William C. Foote witnessed the Berkshire CEO's values in action. A fan approached Buffett to autograph a dollar bill but only had a $20.

Buffett sprang into action, asking the table if anyone had a $1 bill, saying: "I don't want the guy to waste $19," Foote said. "Though a truly unique capitalist celebrity, he was very humble and approachable."

David Novak, former Yum Brands CEO

Over years of dining together in Omaha -- when Buffett often added extra salt to KFC's original-recipe chicken -- David Novak says he would typically invite star Yum executives from around the world to join those lunches. Buffett's detailed questions of their businesses and markets were a master class in making curiosity an innovative force.

"He's constantly learning," Novak says. "He's the definition of a curious mind."

Another tip Novak says he adopted: Buffett drafts his annual letter to investors as if they were to his sister, Bertie, who was smart, but not steeped in financial topics. In 2002, Buffett sent Novak a note after reading his letter in Yum's annual report.

"My sister Bertie would be proud of you," Buffett wrote.

Muhtar Kent, former Coca-Cola CEO

Berkshire Hathaway has been a longtime investor in Coca-Cola and Buffett served on its board for 17 years.

"He not only supported every major strategic initiative and acquisition but also provided perfectly timed laser-sharp insights and counsel. Most important of all was his unique way of thinking and doing things," Muhtar Kent says. "Simple, low key and effective."

"One of my first visits to Omaha back in 2006 he drove me himself to his club where we had a light lunch and then he drove me by his house and then to the airport. No driver, no security."

Warren Buffett lives up to his brand, Kent says: "Overdeliver with simplicity and humor."

Kyle H. David, CEO of KDG

Kyle H. David runs a technology-services company in Pennsylvania with around 60 employees and has been going to Berkshire Hathaway's annual meeting for 19 years.

David, who was again in Omaha on Saturday, says his own leadership has been quietly guided by one Buffett-ism: "The absence of stupidity is worth more than the presence of genius."

"It's a reminder that sustainable success isn't always about brilliance -- it's about avoiding unforced errors, staying humble, and building systems that prevent us from outsmarting ourselves," he said.

Tracy Britt Cool, co-founder of Kanbrick and Buffett protégé

Tracy Britt Cool joined Berkshire in 2009 at age 25, fresh out of Harvard Business School. She initially worked as Buffett's financial assistant, getting the job after writing Buffett a letter -- and showing up at his office with corn and tomatoes.

After a decade at Berkshire, where she served as CEO of cookware company Pampered Chef and chairman of paint maker Benjamin Moore, she launched her own investment firm with a former colleague in 2020.

Buffett taught her the importance of thinking long term, finding high-quality businesses and partnering with high-quality people, Cool said in a 2022 interview with the Journal. "When those three things are done in the right way, you can build something really amazing," she said.

Brandon Guthrie, director of international development for Berkshire Hathaway-owned Dairy Queen

One of Brandon Guthrie's favorite Buffett slogans is "size is the enemy of performance." The other: "In looking for people to hire, look for three qualities: integrity, intelligence, and energy."

"If they don't have the first, the other two will kill you," says Guthrie.

Alex Behring, co-founder and co-managing partner of 3G Capital

In 2014, Alex Behring was planning a deal and Buffett was a key financier at the time.

"When I called about merging Burger King with Tim Hortons, he jumped in with sharp insights from decades of prior study of the business," says Behring of the deal that created Restaurant Brands International. "That taught me the power of compounding knowledge."

Write to Chip Cutter at chip.cutter@wsj.com

(END) Dow Jones Newswires

May 05, 2025 17:33 ET (21:33 GMT)

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