Our own effort raises a product's value
“To the builder of flat pack furniture or the baker of cakes, the perceived value of the end product is influenced by the input of the consumer’s own efforts.”
Business
The best entrepreneurs care little about pay
“The best entrepreneurs we know don’t particularly care about the terms of their compensation packages, and some, such as Jeff Bezos (Amazon) and Warren Buffett (Berkshire Hathaway) have substantially and permanently waived their salaries, bonuses, or option packages.”
Founders draw meaning from the work itself
“[The founders] derive meaning from the challenge, identity, creativity, ethos (this list is not exhaustive) of their work, and not from the incentive packages their compensation committees have devised for them.”
Financial incentives may not bring out the best
“The point is that financial incentives may be necessary, but they may also not be sufficient in themselves to bring out the best in people.”
Indifference to rewards will improve Nomad's results
“By having an attitude that is somewhat independent of financial rewards, we are sure that Nomad’s performance in the long run will be far better too.”
Real money is made sitting on assets
“As Berkshire Hathaway Vice-Chairman, Charlie Munger, says, you make your real money sitting on your assets!” — Charlie Munger