Jim Weber vividly remembers the first time he met Buffett.

It was 12 years ago when he formally took over the running shoe brand Brooks after 12 years. The two of them talked for almost three hours in Buffett's office, during which no phone calls came in, no one knocked on the door, and there were no interruptions from urgent matters.

"Buffett looked at me intently as if he had given me all the time in the world." Jim Weber recalled. A year later they met again, and Buffett even remembered what they talked about last time and where they left off. "The best leaders are the greatest learners who are always curious, focused, and lifelong learners." Jim Weber said, this is the most valuable experience he learned from Buffett.

In the past, he also always believed in the power of 'focus' and used it to bring Brooks back from the brink. When Jim Weber took over this nearly 90-year-old 'time-honored' company in 2001, the business was in a survival crisis - losing 5 million USD, with debts exceeding 30 million USD, and changing CEOs three times in two years.

Jim Weber was the fourth CEO, and in the situation where no one was optimistic, he made bold reforms, pulling the company out of the losing quagmire in the same year and maintaining profitability to this day; afterwards, 'Stock God' Buffett took over at Berkshire Hathaway, becoming Brooks' new investor. Shortly after the initial three-hour communication, Brooks went from being a tertiary subsidiary of Berkshire to a primary subsidiary - a restructuring unprecedented in history.

"Brooks, especially Jim, caught my attention, he is an irresistible force." Buffett commented. He also advised Jim Weber, "Brooks is a great story, you should write it down."

So there was 'This is Brooks', the book tells the story of how Brooks was resurrected in the first place, how it initiated change in adversity, and as a professional manager, Jim Weber, how he coexisted with various styles of investors to maintain the balance of the company's long-term and short-term development; besides the business arena, the book also tells another story on a different battlefield. Seven years ago, Jim Weber was diagnosed with cancer, and it was this twist of fate that led him to leave the 'best job' in his mind - CEO of Brooks in 2024.

Although there are no cancer cells in my body now, my health condition is not as good as before, and I must make a difficult choice between life and work, the answer is very clear. In an interview with "Chinese Entrepreneur", Jim Weber said leaving Bruker Corp. was a decision that had to be made, "Leaving work is a sad thing, but what's worse is struggling to continue when you are no longer competent, and eventually leading the company into decline."

"Why doesn't Nike just crush you like bugs?"

During that meeting, Buffett asked Jim Weber this way.

This is also something many people are curious about. Judging from the sales scale at that time, Nike was about 68 times the size of Bruker Corp. And if we go back to when Jim Weber just took over, this gap exceeded 150 times. Under the crushing competition from giants, where is the survival space for small brands like Bruker Corp.?

"Big brands naturally have many resources and strong capabilities to do many things, like Nike, they can bet on every color and number on the table, but we can't." Jim Weber is clear about Bruker Corp.'s disadvantages, which also determines that it must take a completely different approach from the giants, to turn limited attention into an advantage.

In the past, the entire industry followed the "winner model", with a common consensus that companies producing sports shoes cannot survive on limited categories, their basic model must have three legs of running, court, training, or other tracks. However, they also need to cover a wider price range, from mass market sports products priced at $30-50 to sport leisure products priced at $60-80, not just high-performance products above $100. Before 2001, Bruker Corp. also covered multiple tracks and price ranges, but in each segment, its sales could only rank 6th or 7th, not only falling behind big brands like Nike and Adidas, but even being stepped on by vertical brands like ASICS and Saucony.

In Jim Weber's view, the "success path of market leaders" is a trap to some extent, which may allow followers to get a piece of the pie in the short term, but cannot build long-term competitiveness. "Diversified categories and various prices are sales strategies, not brand strategies. Without brand advantages, companies will be forced into price wars." Jim Weber said, "We should not try to be imitators that look very similar to other brands, we should strive to be Bruker Corp."

He made such a business judgment very early, perhaps because he was born into a 'business' family - his father ran a small club, and he had seen his elders struggle in the business field since he was a child. "I don't want to do that kind of business, it's not interesting." He would rather build an outstanding enterprise in a segmented track than spread out in various tracks, but end up with mediocre, struggling businesses in all tracks.

In 2001, Jim Weber took office and established Bruker's global strategy focus on high-performance running shoes, decisively abandoning all shoes priced below $75 for production and sales, which also meant cutting off 50% of the product line and terminating 40% of retail partnerships.

The book records a story about Jim Weber, who, after taking office, visited dozens of Bruker's retail partners. One of them was Big 5 Sporting Goods store, which was Bruker's largest customer the previous year, contributing $10 million to the latter's $60 million revenue. However, what Jim Weber saw was another harsh reality - the average price of shoes sold by Bruker at Big 5 was only around $30, basically losing money - toxic at such scale.

The progress of the reform ran into walls everywhere. Jim Weber recalled, "Customers worried, employees worried, investors worried, because no brand had ever done this before." Furthermore, the significant contraction of the product line led to a rapid decline in revenue, followed by overwhelming doubts and pressure.

None of these deterred Jim Weber. During his student days, he was passionate about ice hockey, playing for several years, shaping his character. This fast-paced, physically confrontational sport instilled in him a mindset of not giving up, not fearing defeat - always fighting for the ball. Before Bruker, Jim Weber had turned around two struggling companies. These experiences made him realize a law of reverse success: what most people don't understand at the moment often turns out to be correct, and what most people think is impossible may not be completely unattainable.

In fact, after the initial pains of transformation, Bruker began to turn things around. In 2001, the company turned profitable and the relaunched Charron series running shoes became a hit, selling 4 million pairs every year. In November 2010, Bruker surpassed Asics, taking the top spot in the U.S. professional running channel market share, achieving the goal set by Jim Weber 9 years ago.

However, temptations and challenges have always been ever-present.

Especially during times of slowing growth, Bruker has faced several major challenges in its history. For example, in 2008, due to untimely introduction of new products, Bruker lost a significant market share, leading to a growth slowdown. The crisis in 2015 was due to changes in consumer market trends, with the millennial generation's shifting consumption habits causing concern across the industry about the decline of the 'running boom'. The running participation rate of consumers in those two years dropped rapidly, causing previously running-focused companies to waver.

Recalling those dark days, Jim Weber admitted that the pressure was immense. During that time, he often thought of a famous saying by Thomas Jefferson, one of America's founding fathers: when it comes to style, go with the flow; when it comes to principles, remain as firm as a rock. In Jim Weber's view, this quote was like a guiding light in chaotic times, where the principle for Bruker was to focus on running shoes - something that should not change under any circumstances, with room for variation only in product styles.

"The decline in sales of high-performance running shoes and outfits is largely due to the monotonous and boring products. We seem too much like our competitors, so it's not that consumers don't like running shoes anymore, but rather our shoes have become too generic." According to Jim Weber's judgment, the real reason for Brooks' growth setback comes from within, not the market, so the driving force to restore growth can only come from within. It needs to be centered around runners, deepen product innovations for various wearing scenarios and weather conditions like training shoes, racing shoes, sports bras, and harsh weather, focusing on the details. "If consumers fall in love with the shoes as soon as they put them on, we have the opportunity to serve this consumer throughout their entire lifecycle."

Just as Jim Weber initially predicted, "Running shoes will be a huge market." Reports show that the global athletic footwear market is approaching $150 billion, with running shoes being the largest category, accounting for nearly 40%. The market size of this subcategory is still rapidly expanding. According to the company's data, Brooks' growth rate in the first two quarters of 2024 broke records successively, and the current CEO announced a future goal of $4 billion in growth.

"Berkshire absolutely empowers, but you have to earn the trust yourself."

For a long time, Brooks has been in turmoil. In Jim Weber's first 6 years as CEO, the company remained in such a state, changing ownership from one investment institution to another, with four different owners. These investment institutions had different styles and demands, and for a CEO in such a situation, the first thing to do is to figure out how to coexist with these demanding and critical external investors. Jim Weber described his role as "a bridge" - no matter who takes office, he is responsible for advocating for the team and winning their support to pursue branding opportunities.

His early work made him familiar with the construction of this "bridge." He served as a strategic analyst at Piersbury, a large consumer goods conglomerate that owned popular brands like Haagen-Dazs and Burger King. Later, he delved into the business operations of this conglomerate. He then entered the private equity investment field, where he was involved in corporate mergers and acquisitions while also restructuring the assets of the acquired companies. As Zhang Tao, the translator of the book and CEO of Wanguo Sports, said to "China Entrepreneur," Jim Weber's experience is "like a zipper, shuttling back and forth between investment and operations."

"He understands business operations and management, and more importantly, he understands investors."

"Do not think investors will be your friends, they are your financial partners in control, and their task is to gain returns." Jim Weber said, this is the reality that every operator should first recognize. Many friends sought his advice when introducing investment institutions, and his advice was "do your homework, fully understand these investors": What are their goals? How long can they give you? Are they in the early stages of fund investment or nearing completion? Are the current funds profitable or in loss? How will these investors work with the management team in the future? Will they roll up their sleeves to get involved in the business, or will they let you take charge? Does the board of directors have people relevant to your business, or only fund partners? How much flexibility, operational space, support, and patience do you have?

"A successful company can definitely respond correctly at every stage of development - taking action now, setting mid-term goals, and having a long-term vision." Jim Weber emphasized, "Understanding the goals of investors is crucial for long-term brand building."

Only in this way can the frequent frictions and disputes between operators and investors be resolved, balancing retreat and grasp in the premise of each having a standpoint.

When Jim Weber participated in the Brooks board of directors for the first time as CEO, he encountered resistance. At that time, he proposed 12 priority reform goals, which were immediately rejected by the board of directors. They said, "You cannot do all of them at once, conditions do not allow, you can only choose four of them". But Jim Weber's answer was clear and firm, "No, we must do them simultaneously". His previous business operation experience taught him a lesson, that reform is like moving a brick wall forward, needing to push each brick forward in sync, rather than just one, otherwise it will lead to the collapse of the entire wall. "Some of these projects can ensure our first-year profitability, some guarantee next year's product development, and some lay the foundation for longer-term growth." In the end, he convinced the board of directors and proved the correctness of this decision through Brooks' sustained returns.

Under Jim Weber's leadership, Brooks ended its fate of frequent CEO changes. By 2006, after the acquisition, Berkshire Hathaway, led by Buffett, became the new owner of Brooks, and this company finally found a more stable capital harbor.

Berkshire Hathaway is a special investment institution, with a total of 26 employees at its headquarters, controlling over trillion assets. Under its control, directly or indirectly, are over 500 companies with more than 0.27 million employees. The helm of this giant ship, Buffett and Munger, has always believed that independent management and decentralization are important ways for companies to maximize long-term value. What they want to do is to attract and retain those who are passionate about the business, and then push them to manage the companies Berkshire Hathaway invests in as if they were managing their own.

This is also the most profound feeling Jim Weber has. "In my business career, I have never had such great autonomy, nor have I ever felt such responsibility, taking responsibility for every decision of the company, for short-term, mid-term, and long-term opportunities and risks."

However, power does not come out of thin air, it also means responsibility.

Jim Weber pointed out that investors have expectations for the financial data of companies. In this respect, Berkshire Hathaway is no different, and even demands more - scalable size, high capital return rates, strong cash flow. "They (Berkshire) won't meddle in anything, but they have always been watching, you know," Jim jokingly said, "you can feel it."

This attention is sometimes in a seemingly casual manner. Once, Buffett read a report in The Wall Street Journal, which mentioned that Facebook's founder Mark Zuckerberg bought a pair of Brooks Levitate running shoes. He sent the report to Jim Weber with a sentence in the email, "In 2012, keep going, we only need to add a few million more users like Zuckerberg!"

Most of the time, mutual trust contracts serve as an invisible but more effective 'management', as Munger said, it's about 'building a culture of trust'. 'We want to win trust through operational results, and then gain greater empowerment or maintain empowerment,' explained Jim Weber. The energy of the trust flywheel can be continuously enhanced through such a cycle until it resists unfavorable situations of declining growth - this is something that no investor wants to see. 'When Brooks has underperformed, we will communicate with Berkshire Hathaway in advance to lower expectations. More importantly, we will explain how we will turn the situation around next. This process is crucial.'

03 'It's very difficult to say goodbye to the position of a leader'

In 2017, after enduring two years of market difficulties, Brooks finally returned to a growth track. However, Jim Weber encountered a painful blow in the second half of his life. At the end of that year, at the age of 58, he was diagnosed with esophageal cancer. Usually, the 5-year survival rate of this type of cancer is very low, only 20%.

The book reveals Jim Weber's anxiety just after learning about his illness, 'What will I do if I can't work at all in part or all of the treatment plan? What if I need to take several months off work? Will I lose my job? That would be a terrible outcome. I might overcome cancer after a tough battle, only to lose my job at the age of 58. Being kicked out of the team is a horrible thing for me.'

When illness strikes suddenly, the CEO who once led several companies to win numerous battles is just as concerned about work and life as any ordinary person. Jim Weber makes no attempt to hide his worries. Starbucks founder Howard Schultz also mentioned, 'Sincerity and openness, even vulnerable disclosure, are human qualities, not flaws, but strengths.'

Jim Weber deeply agrees, 'No one wants to step down from the position of a leader, this decision is too difficult - I never shy away from my most genuine thoughts, even if they involve failure and frustration.' As he mentioned in the interview, he has the same impression of Buffett. He has made mistakes, experienced failures, and never minded sharing these experiences with others. 'This does not undermine management authority, but is part of leadership and trust.'

On the third day after the diagnosis, Jim Weber called Buffett to discuss his current predicament and possible treatment options, and also shared his thoughts on company management during treatment. He even expressed his fear of possibly losing his job to the latter. Buffett told him not to worry, to focus on treatment first, 'When your body is healthy again, work will be waiting for you.'

On the third day after the surgery, Buffett sent Jim Weber a 5-pound box of confectioners. At that time, the latter still had an esophageal tube inserted and wouldn't be able to eat solid food for at least a few weeks. When he felt puzzled by this gift that he could only look at but not eat, the card gave him the answer. It had Buffett's message to him, 'Jim, I believe you are being well taken care of in the hospital, so place these at the nurse's station as a token of appreciation. Let them know that if you continue to get good care, I will send more.'

Just as promised by Buffett, Jim Weber returned to Bruker after the operation and led the company to a larger market. In 2021, Bruker entered the billion-dollar club, with global revenue reaching $1.2 billion in 2023, attracting over 250,000 members.

However, the competition in the market has become increasingly fierce. Giants like Nike have increased their investment in the running shoe sector, while leading companies from other tracks have also intervened. A significant number of emerging brands have rapidly entered the market, gaining their place. In contrast, Bruker's response has been somewhat slow. It was not until September 2024 that it officially opened its first offline store in the competitive Chinese market. As one industry insider pointed out to 'Chinese Entrepreneur,' Bruker is facing challenges of an aging brand, lack of innovation, and insufficient influence in the Chinese market.

This century-old running shoe company must accelerate.

However, Jim Weber is no longer able to run at full capacity. The good news is that six years after the surgery, the cancer cells in his body have disappeared. Yet, his energy has been weakened by illness and treatment, with only half of his lungs functioning normally. His lung capacity is only 56% of the average level for his age group. In the past, he used to run 3-5 days a week, with a distance of 6 miles (10 kilometers) each time, a habit he developed since 1980. Unfortunately, due to illness, he had to stop. Now, his runs have to be divided into intervals - a minute of interval running on the treadmill, followed by walking, then running for two blocks before having to stop intermittently, as he gets breathless and cannot maintain a stable running heart rate.

Just as he struggles to regain his former running level, Jim Weber can no longer meet his set operational standards. He stated the rapid changes in the market and consumer behavior, coupled with his current health condition, make it difficult for him to fulfill full-time responsibilities. In the past two years, the struggle to meet work standards has been distressing for him. He expressed that leaving is a sad event, but even sadder would be staying in a position where he cannot perform, leading to eventual failure.

Two years ago, Jim Weber began his farewell plan. In April of this year, he officially resigned from the position of CEO at Bruker, passing the baton to Dan Sheridan, a veteran who joined Bruker in 1998 and fought alongside him for many years. His final meeting as CEO was held with the product department, which he had high hopes for and was most reluctant to leave behind.

"The running shoe market has enormous potential, with many companies standing out in different ways. What Bruker needs to do is to adhere to its strengths, focus on the running field, and make a difference in appearance, design, materials, and technology. That is the most crucial aspect," said Jim Weber. "Berkshire Hathaway never sells companies, which allows us to continuously invest in the brand, as managing the brand itself is a long-term battle."

Editor/Somer