Here’s the one-page memo Warren Buffett sent to his managers every two years for over 25 years

Success·LeadershipHere’s the one-page memo Warren Buffett sent to his managers every two years for over 25 yearsBy Jessica CoacciBy Jessica CoacciSuccess FellowJessica CoacciSuccess FellowJessica Coacci is a reporting fellow at Fortune where she covers success

Warren Buffett is widely considered one of the smartest minds in —after all, he’s spent decades maintaining Berkshire Hathaway as a multinational investment powerhouse

But we can’t afford to lose reputation—even a shred of reputation,” the 94-year-old recalled in a social media post that’s currently recirculating, just months before he’s due to leave the company he’s led for over 50 years

Lose a shred of reputation for the firm, and I will be ruthless.” That sentiment was echoed by other -leading billionaires Jeff Bezos, who said, “Your brand is what other people say you when you’re not in the room.” The need to always plan for the future This May, the legendary investor announced he would be stepping down as CEO by the end of the year, passing the reins to his successor, Greg Abel, after seeing how much he could do in a working day

And as a succession planning request, Buffett asks that his managers vide a handwritten letter on any future recommendations to take their place, adding that the letter will be seen by no one unless he is no longer CEO. “I need your help in respect to the question of succession

Going forward, Buffett told the Wall Street Journal he will still be going to the office. “I’m not going to sit at and watch soap operas

My interests are still the same.” Read the full one–and–a–half–page memo To: Berkshire Hathaway Managers (“The All-Stars”)cc: Berkshire DirectorsFrom: Warren E

The top priority–trumping everything else, including fits–is that all of us continue to zealously guard Berkshire’s reputation

We can’t be perfect but we can try to be

As I’ve said in these memos for more than 25 years: “We can afford to lose money – even a lot of money

But we can’t afford to lose reputation – even a shred of reputation.” We must continue to measure every act against not only what is legal but also what we would be happy to have written on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter

Sometimes your associates will say “Everybody else is doing it.” This rationale is almost always a bad one if it is the main justification for a action

It is totally unacceptable when evaluating a moral decision

Whenever somebody offers that phrase as a rationale, in effect they are saying that they can’t come up with a good reason

If anyone gives this explanation, tell them to try using it with a reporter or a judge and see how far it gets them

If you see anything whose priety or legality causes you to hesitate, be sure to give me a call

However, it’s very ly that if a given course of action evokes such hesitation, it’s too close to the line and should be abandoned

There’s plenty of money to be made in the center of the court

If it’s questionable whether some action is close to the line, just assume it is outside and forget it

As a corollary, let me know mptly if there’s any significant bad news

I can handle bad news but I don’t to deal with it after it has festered for awhile

Somebody is doing something today at Berkshire that you and I would be unhappy if we knew of it

But we can have a huge effect in minimizing such activities by jumping on anything immediately when there is the slightest odor of impriety

Your attitude on such matters, expressed by behavior as well as words, will be the most important factor in how the culture of your develops

Culture, more than rule books, determines how an organization behaves

In other respects, talk to me what is going on as little or as much as you wish

Each of you does a first-class job of running your operation with your own individual style and you don’t need me to help

The only items you need to with me are any changes in post-retirement benefits, acquisitions, and any unusually large capital expenditures

But I to read, so send along anything that you think I may find interesting

I need your help in respect to the question of succession

These letters will be seen by no one but me unless I’m no longer CEO, in which case my successor will need the information

Please summarize the strengths and weaknesses of your primary candidate as well as any possible alternates you may wish to include

Most of you have participated in this exercise in the past and others have offered your ideas verbally

However, it’s important to me to get a periodic , and now that we have added so many es, I need to have your thoughts in writing rather than trying to carry them around in my memory

Of course, there are a few operations that are run by two or more of you – such as the Blumkins, the Merschmans, the pair at Applied Underwriters, etc. – and in these cases, just forget this item

Your note can be short, informal,handwritten, etc

Just mark it “Personal for Warren.” Thanks for your help on all of this

And thanks for the way you run your es

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