- Karen Goracke is the CEO of jewelry store Borsheims, a subsidiary of Berkshire Hathaway.
- Goracke came up from the store room and Warren Buffett interviewed him for the CEO job.
- She says she talks to Buffett about topics as diverse as business and sports.
This spoken essay is based on a transcribed conversation with Karen Goracke, CEO and president of Borsheims, about her career and working with Warren Buffett. It has been edited for length and clarity.
I started working as a sales associate for Borsheims, a jewelry store in Omaha, Nebraska, in 1988, right out of college. It looked like an enticing place to work. It was a large company run as a small family business. There was no inventory and our accounting practices were not great.
A year later, in 1989, Warren Buffett’s Berkshire Hathaway bought Borsheims from the family that owned it.
Berkshire Hathaway likes to buy successful companies. When they bought Borsheims, they were quite careful about the day-to-day running of the company, with one caveat: we had to have a controlled inventory system.
I was promoted
Although young I was put in charge of the inventory project. There were 100,000 pieces of inventory. I went through each article one by one to create a data entry. I would write a label for it, put the label on the item and put it back in the case. I often had to ask former owners how much some parts cost because many were bought with cash.
Finally, they gave me a team to help. It took us a few years, but we got everything in one system and had data we could use. I shared the data with the buying team, telling them where they were making money and where they had a lot of stock.
I knew Warren Buffett knew what I was doing because he wrote notes on the inventory saying it was looking good or needed improvement.
I was offered a job as a watch buyer, which I took in 1996. I wasn’t the best or most connected salesman, but I really understood the mechanics of the business. I used to joke that I had tried on every piece of inventory in the store.
I had grown up in Omaha and attended a small state college in Nebraska. As a buyer, I traveled to Switzerland, New York and Las Vegas and learned more about the business.
I left and came back
At that time, I had two children with my lawyer husband. He was becoming a partner and the house became chaotic. I had been working for a decade and decided to take a career break. We had a third child and I stayed at home for six years. I kept my connection with the store, sometimes I went in with the kids.
Five years after I left, Borsheims called me to ask if I would consider returning. I waited until my third child was in preschool and then went back to being a jewelry buyer. It was a department bigger than watches, and a step up. I loved my job.
I was interviewed by Warren Buffett
Over the next decade, I worked on the executive team as director of merchandise. When our CEO was planning to leave for a new role, she asked me if I would apply to be CEO. I almost fell off my chair. I had never managed more than five people and it wasn’t on my radar.
I was asked to interview Warren Buffett.
We’re both from Omaha, which can feel like a small town. I met him briefly over the years when he shopped and at fundraisers in Omaha.
Before the interview, I was so nervous that my hands were shaking. We talked about what I thought about the business and its strengths and weaknesses at a high level. Then he offered me a job there. We didn’t talk about salary or anything.
I walked away thinking, “I’m not even sure what happened,” but it was exciting. I am still very humble and sometimes I pinch myself.
I don’t bother with Warren Buffett
The first time I went one-on-one with Warren Buffett, I was probably terrified. But he is so charming, funny and informative. I’m never nervous with him now.
He visits the store a few times a year and usually tells me ahead of time, but not always. One time, I was helping a customer pick out some jewelry, and he walked into the store and started asking questions about the inventory. I had to ask the client to forgive me. She had no idea that Warren Buffett was standing next to her.
I am a very curious person. He pesters me to ask a lot of questions, but I think, “I’m sitting with probably the smartest man in the world. Why not ask him about everything from business to our local community to sports?”
We talk about different things that happen across industries, such as insurance or energy.
The biggest benefit of my life has been spending uninterrupted time with Warren, when I feel comfortable enough to have off-the-wall conversations about everything from soda to football. It has been a joy.
He is so supportive and kind. It’s like talking to your colleague. I also try to be very respectful and don’t contact him more than twice a year. He is 94.
He advised me to focus on what I am good at
One of the things Warren has helped me focus on is celebrating our successes. He dives into the things you are good at to make them better. He reminds me to focus on what I am good at.
As a buyer, I had a good understanding of the right amount of money to spend, our inventory level and how that drives business for the company. Shopping drives successful salespeople and happy customers.
Now, what I’m better at is understanding what it looks like at a high level.
Warren calls the CEO of Berkshire Hathaway his managers. He wants to empower us to do what we think is best. I see it as a confidence booster.
I also have a network of Berkshire Hathaway businesses I can call on for advice. This is a blessing.
Warren is a great reader. I have tried to get it from him and I have read huge amounts of articles and publications. Knowledge is power.
If you’ve worked with a well-known businessman and want to share your story, send an email ehopkins@businessinsider.com.