Managers of those subsidiaries are given considerable freedom to carry out their businesses. Warren Buffett is not intervening as much as he would like, because he knows better, according to him there are two kind of jobs; running the business, and running the people who do it, so managers should be given the freedom to perform. The managers earnings also depend on the performance of their subsidiary instead of the overall performance of Berkshire Hathaway, according to Warren Buffett a very important stimulus to excel at their occupation. As an associate says, 'somehow Warren has been able to keep a diverse cast of characters working harder for him than they did for themselves. I see it every day - and I still don't know how he does it'. But I do know that all of us feel this incredible responsibility to him.” Warren Buffett's ways make the managers of Berkshire Hathaway feel proud to be affiliated with the company, feel valued as human beings and feel they can communicate openly and honestly with Buffett. Berkshire Hathaway has in 34 years never lost an operating chief except to death. Even, a majority of its subsidiaries are still under control by the same managers, which shows the managers great devotion to their company and their loyalty to Warren Buffett as a person. This might be the result the good judgment of character by Warren Buffett or a great corporate culture in which everyone is pushing their limits. So what makes Warren Buffett a good leader? First of all the personality of him, which comes close to the social cognitive level15, because he puts effort in understanding and making sense of people around him, meaning that in an organization he is one that can place himself in another’s persons shoes.