The late Charlie Munger, Vice Chairman of Berkshire Hathaway and partner of Warren Buffett, warned about a phenomenon called the “Shoe Button Complex.” A family friend of Munger’s had many years earlier made a fortune in shoe buttons, used to secure a shoe to one’s foot years ago, and began pontificating on every imaginable subject, assuming that competence in one area automatically him an expert an another. Later in life, Munger and Buffett called this staying within one’s “Circle of Competence.”
A short article from Inc Magazine suggests that the shoe button complex is alive and well today and is no respecter of which end of the political spectrum from which it originates. The article looks at Elon Musk’s activities in the Trump administration running DOGE and Ben & Jerry’s CEO David Stever whose stands on public issues may be damaging their brands.
We are all entitled to our opinions, but their expression by company leaders can have consequences to a brand in the short term, and the company’s fortunes in the long term, fair or not. Before you become one, learn about the risks of The Activist CEO: Have Elon Musk and Ben & Jerry’s CEO David Stever Damaged Their Brands?
