Warren Buffett and his company, Berkshire Hathaway, are legendary for their distinctive investing approach. Yet many equally unconventional but less well known aspects of Berkshire’s managerial practices and organizational structure are rich with lessons for those seeking to follow in Buffett’s footsteps. Margin of Trust is the first book to distill Buffett’s approach to management and corporate life. It provides a definitive analysis of the tenets of the Berkshire system, its costs and benefits, and how it can be adapted for other organizations.

Lawrence A. Cunningham and Stephanie Cuba develop a new account of how Berkshire Hathaway works, showing that the key to its success is trust. Profiling partnership practices and business methods, they contend that Berkshire’s distinguishing feature is a culture in which autonomy and decentralization are core management principles. Cunningham and Cuba provide instructive examples of how this model has been successfully adapted by other companies that share a faith in trust as an organizing principle. They also offer candid commentary on the risks of a trust-based approach and how to mitigate them. Margin of Trust features illuminating analysis of Buffett’s take on the role trust plays in business agreements, what Buffett looks for in great corporate boards, and what lies ahead for Berkshire after its iconic leader leaves the scene.

"Few writers are more familiar with the intricacies of Berkshire Hathaway than Lawrence A. Cunningham." - The Rational Walk

"While detailing the strengths and notable successes of a trust-based approach, the authors are candid about its risks, and how Berkshire works to mitigate them. Their prose is lively, and their points well taken." - Financial Advisor

"This brief, concise, and pleasant exploration of the inner machinations of Berkshire Hathaway will interest anyone who seeks a better understanding of Buffett's Midas Touch. . . . Highly recommended." - Choice