This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.
In these troubled times, there is only one CEO who operates with the best interests of investors in mind. Of course, that executive is Warren Buffett.
As Investopedia notes, investing $100,000 with Berkshire Hathaway Inc. (NYSE: BRK.A) in 1965, the year Buffett took over the company would be worth nearly $30 million by 2005. "By comparison, $10,000 in the S&P 500 would have grown to only about $500,000," the site notes as if that return was just awful.
Buffett's successes are legendary. His missteps are few. The Oracle of Omaha is on the right side of many issues of interest to investors.
Unlike many CEOs, Buffett does not take a huge salary. He makes $100,000 a year, big money for most people but chump change for CEOs who get that kind of money for golf club memberships. Surprisingly, Buffett favors keeping the estate tax, arguing correctly in my view, that the founding fathers never intended for there to be a permanent aristocracy. He also is a Democrat, serving as an adviser to Barack Obama.
During the economic crisis, Buffett is the go-to guy for everyone, Goldman Sachs Group Inc. (NYSE: GS) sold Buffett $5 billion worth of preferred stock paying a fat 10 percent dividend. Buffett is no fool, having turned down overtures from other troubled Wall Street firms. Berkshire also had $27.9 billion in cash and cash equivalents as of September 30.
That leaves plenty of cash left to find the bargains that made him famous.
Of course, there are other CEOs who deserve respect. Jeff Bezos of Amazon.com Inc. (NASDAQ: AMZN) not only survived the bursting of the dot-com bubble burst but thrived. Bank of America Corp. (NASDAQ: BAC) Chief Executive Kenneth Lewis deserves credit because the mention of his name does not cause investors to grit their teeth in anger. Wal-Mart Stores Inc. (NYSE: WMT) Chief Executive Lee Scott survived disastrous marketing strategies and the determination of scores of critics. Too bad he is being replaced.
None, though, holds a candle to Buffett.
But what do you think? Does Buffett get your nod, or does one of our other nominees impress you more?
Share the reasons for your Best CEO pick in the comments, or let us know about any contenders we overlooked. Also be sure to see the rest of the Best & Worst in Money 2008.
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Reader Comments (Page 1 of 1)
12-08-2008 @ 12:55AM
gloria cranford said...
I agree that Warran Buffett would be the best CEO.
1-01-2009 @ 6:53PM
Andy M said...
I think it's funny that Bank of America's CEO is listed as one of the best. I suppose in today's society we admire people who take advantage of their own customers so the stock holders and executives make more money. What happened to being a good corporate citizen, I guess that doesnt factor in here