While strong leadership is valuable, Warren Buffett believes that the true cornerstone of a great investment is a business with a powerful competitive moat.
“If you have a big enough moat, you don’t need as much management,” Buffett said at the 1999 Berkshire Hathaway Annual Meeting, echoing a core principle of his investment philosophy.
He referenced investor Peter Lynch’s famous line about preferring companies so resilient that “an idiot can run it, because sooner or later one will.” The point, Buffett explained, is that truly great businesses are those protected by enduring advantages—moats that safeguard profitability regardless of who’s at the helm.
Such businesses are rare, Buffett admits, but when found, they offer investors the kind of long-term security that even top-tier management alone can’t guarantee.
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© 2026 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.