The Latest: Buffett says trust is key to Berkshire’s success

The Latest on Berkshire Hathaway’s annual shareholder meeting (all times local):

10 a.m.

Investor Warren Buffett says he believes it works better to hold his employees to a high standard and expect them to do the right thing instead of imposing extensive rules.

Buffett says he always urges Berkshire Hathaway employees to protect the company’s reputation above all and avoid questionable behavior. Buffett made his comments during the company’s annual meeting Saturday in Omaha, Nebraska.

He believes that will help Berkshire avoid scandals like the one that hurt Wells Fargo last year. Berkshire is Wells Fargo’s biggest shareholder.

Berkshire is known for its decentralized structure with fewer than 30 people at headquarters that allows the more than 90 companies it owns to largely run themselves.

“We count very heavily on principles of behavior rather than loads of rules,” Buffett said.

Buffett says Berkshire will occasionally have problems because it has 367,000 employees.

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9:20 a.m.

Billionaire Warren Buffett paid tribute to Vanguard founder Jack Bogle at Berkshire Hathaway’s annual meeting Saturday.

Bogle attended Berkshire’s meeting Saturday after Buffett praised him in his annual letter to shareholders this year.

Buffett has long recommended that most casual investors would be better off investing in index funds steadily over time instead of trying to pick individual stocks.

Buffett says Bogle played a major role in creating the index funds that are common today, and that has helped millions of investors earn more because the fees are so cheap.

Buffett, who is 86, said Bogle will celebrate his 88th birthday Monday. Buffett joked that if Bogle holds out for just a couple more years, he’ll be old enough to qualify for an executive job at Berkshire. Buffett’s Vice Chairman Charlie Munger is 93.

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7:10 a.m.

When billionaire Warren Buffett toured the exhibit hall where Berkshire Hathaway companies are selling their products outside…

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