Warren Buffett's Berkshire Hathaway vs. Ken Lay's Enron: A Tale of Two Philosophies (MP3 download)
By Edwin A. Locke
The Enron bankruptcy was one of the worst disasters in business history. Dr. Locke discusses the philosophical failures that were the deepest cause of the business failure especially the faulty epistemology and morality, which were the result of the philosophy of pragmatism. The Enron approach is contrasted with that of Berkshire Hathaway, led by Warren Buffett and his colleagues. Buffet’s philosophy stresses reason and moral integrity as first principles, and these are the qualities he looks for when acquiring other companies—a task at which he has been brilliantly successful. The disparity between these two companies provides an important lesson in the need for philosophy in business.