Citation
Berkshire Beyond Buffett: The Enduring Value of Values
TL;DR
Subsidiaries share only capital, not operations
Analyzes Berkshire Hathaway's decentralized management model where subsidiaries operate autonomously, sharing only capital with headquarters. Documents how this modularity enables radiation into unrelated industries without forced synergies.
Provides the business evidence for how structural isolation enables organizational adaptive radiation.
Key Findings from Cunningham (2014)
- Subsidiaries share only capital, not operations
- Decentralization enables industry-specific specialization
- Trust-based governance eliminates forced synergies