Aquamarine Capital Management Diary
Aquamarine Fund
Diary
Diary

« Warren Buffett talking about business and about Iscar in Israel | Main | Charlie Munger is also getting better »

Creating trust

How to create trust?

The core of this business is about creating trust - which, as we know, takes a lifetime to create, and can be lost in an instant.

The following are some of the things that I do personally to increase my own trustworthiness.

Speaking plainly and honestly.
I try to say what I mean and mean what I say.

Discretion
I try to treat what is told to me as confidential, and only to share it with others if there is clear permission to share.

Reliability and consistency

I try to act reliably.People around me should know what to expect.

Giving bad news up front.
In addition to making a point of giving bad news up front, I try to create an environment where the people I work with do the same thing.I want to live in a web of relationships where one of the motto’s is “give the bad new up front – the good news can wait.”

Welcoming verification
People will always want to verify that I am doing the right thing.My goal is to welcome their desire to check – without feeling, or making them feel that the attention is unwarranted.

Do the right thing when no-one is looking
Sooner or later, someone will catch me doing the right thing when no-one is looking, and that will create large amounts of trust in me.On the other hand, if someone were to catch me doing the wrong thing when no-one was looking, that would destroy huge amounts of trust.Not only could I not afford that – I would not want to live with myself.

Doing the right thing, even if it is not the most expedient.


But why end there? I am willing to take whatever steps will get me closer to my goal.That is why many of my passwords are based on the word “trusted.” Quite simply, I am seeking to will that outcome if there is any chance that it will work.