The Math of Generosity
13 Lessons from Les Schwab:
1. Get the Incentives Right: Les gave store managers 50% of profits but made them keep every penny invested until their stake equaled his. "If I share half but the store is more successful, my half is worth more than my whole used to be." By locking in their wealth, he ensured they'd think... See more
Shane Parrishx.comLes discovered that splitting profits 50/50 with store managers didn’t cut his wealth in half, it multiplied it. His reasoning was pure math: “If I share half the profits, I still have half. And if Frank makes more money, he’ll work harder to make the store successful. If the store is more successful, my half is worth more than my whole used to... See more
Brain Food: The Math of Generosity
Incentives
Charlie Munger once asked me: ‘How can someone give away fifty percent of profits and make billions more than if he’d kept it all?’ Before I could answer, he told me about Les Schwab, a tire shop owner who understood incentives better than almost anyone.
What Schwab discovered will change how you think about business and life.
Here are a
... See moreWarren Buffett believes that true success is built on generosity—helping others, sharing credit, and giving your time. This approach not only builds trust and loyalty but also attracts long-term support, fostering greater success.
Generosity in leadership isn’t about giving money—it’s about being generous with attention, patience, and recognition.