michael l riordan, gilead founder and ceo, and warren e buffett, berkshire hathaway chairman:...
DESCRIPTION
Michael L. Riordan, Gilead Sciences founder and CEO, asks Warren E. Buffett to join Gilead's board of directors, and to invest in Gilead, less than a year after Riordan founded the company, in 1987. Buffett replies with a hand-written note to Riordan. Riordan in turn responds to Buffett. May 1988. Gilead then pioneered antiviral medicines for HIV, hepatitis, influenza and other diseases, and became one of the largest biotechnology companies by revenue and market capitalization.Filed under History of Gilead Sciences.TRANSCRIPT
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May24, 1988
Mr. Warren Buffet Chairman Berkshire Hathaway, Inc. 1440 Kiewit Plaza Omaha, NE 68131
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Dear }._fr. Buffet: . y' &-it j/ -I am· writing to ask you to consider being a member of Board of Directors-of Gilead Sciences, an investor in the Company, or both. I am proposing that you devote some of your time, judgement and stature to an enterprise that is decidedly outside your normal business realm, but which I believe would benefit enormously from your attention, and
· which would give you considerable satisfaction in return. .
J440 XI'BWIT
OMARA, NEBRASKA 6813 1
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Michael Riordan , M. D. Gilead Sciences 365 Foster City Boulevard Foster City , California 94404
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Gilead Sciences founder and CEO Michael L. Riordan responds to a hand-written note from Berkshire Hathaway’s Chairman Warren E. Buffet. May, 1988. An initial letter from Dr. Riordan to Mr. Buffett begins: Mr. Warren Buffett Chairman Berkshire Hathaway, Inc. 1440 Kiewit Plaza Omaha, NE 68131 Dear Mr. Buffett: I am writing to ask you to consider being a member of the Board of Directors of Gilead Sciences, an investor in the Company, or both. I am proposing that you devote some of your time, judgment and stature to an enterprise that is decidedly outside your normal business realm, but which I believe would benefit enormously from your attention, and which would give you considerable satisfaction in return. Gilead Sciences was founded in 1987 to develop and manufacture a broad, new class of … … … Mr. Buffett’s hand-written reply:
“Dr. Riordan—Sorry, but I would bring nothing special to this enterprise, except for my
name. WEB” [Warren E. Buffett]
Dr. Riordan’s hand-written response:
“Mr. Buffett—
You are very modest. Your name probably would be a benefit to the Company, but I
had something more substantive in mind.
We are developing a broad, new generation of therapeutics to treat several very deadly
diseases. This is a major event in medicine. And it costs a lot.
Therefore, finance, just like research, production and clinical development, is a critical
ingredient in building our Company. As a board member or an investor who assists in
devising our financing strategy, you would bring something special to a special
enterprise.
We want only the finest talent for our Company. We have the finest biologists and the
finest chemists. We also want the finest business minds.
I hope you will reconsider.
Sincerely,
Michael Riordan”