At the heart of the fetchingly titled essay, "Fill The Bathtub," CollabFund contributor Ted Lamade quotes the late Berkshire Hathaway's Charlie Munger.

Warren and I have a system where we spend a lot of time identifying very trustworthy people and then pass along that trust. As they practice that trust, they get more confirmed in being trustworthy. Eventually this creates a seamless web of trust, which is incredibly efficient and useful. By the way, this isn’t just my doctrine, there is the doctrine in economics that tries to explain why firms come into existence and it states that ‘firms come into existence because a lot of people who trust one another operating within a firm are more efficient than they would be if they were a bunch of independent proprietors’.”

For Lamade, Managing Director at The Carnegie Institution for Science, Munger's hiring "system" drives clarity around one of our moment's defining challenges, "how hard it is to know who or what to trust."

Lamade writes:

In essence, Munger is describing his own version of the bathtub. By creating a “seamless web” of people he and Buffett could trust, and then empowering them, the duo created a unique compounding machine."

We've designed our Focus On Excellence homebuilding leadership summit – October 28-30, at the Hyatt Regency Lost Pines Resort, Austin – specifically to empower our business leader participants to do just that.

• Learn more about Focus On Excellence.

Every day, we're talking to folks who've registered to attend, like Akel Homes CEO Alex Akel, whom we wrote about recently, and Focus On Excellence speakers Don Dykstra, Chairman at Texas-based Bloomfield Homes, and homebuilding business culture legend Larry Webb. As part of our evolving program development, we're asking them what sparks each of them about the learning, connections, and discovery lab experience we're creating for our business leader attendees.

Here's a taste of what Alex, Don, and Larry tell us, all circling right back to those wise words of Charlie Munger.

The Importance of Gathering and Learning

Larry Webb: "Besides just high interest rates, there is a lot of uncertainty in the marketplace. Getting smart people in a room to talk about it and hear their ideas is essential."

Webb emphasizes the value of collaborative learning and the unique opportunity this summit presents for leaders to exchange ideas and strategies in the face of market volatility.

Alex Akel: "One of the most challenging things about my job is managing employees and getting everyone on the same page, but it is the most important part of my job. Anything that helps with that is important and interesting."

Akel, a millennial homebuilding enterprise CEO, highlights the critical nature of leadership and team management, aligning perfectly with the summit's goals of empowering and educating leaders to build high-performing, resilient teams.

Developing Next-Generation Leaders

Larry Webb: "If I was running a company today, I would focus on growing leaders... I want that next generation pushing forward, challenging old ideas."

Webb underscores the need to nurture emerging leaders who can drive innovation and sustain long-term success in the industry.

Alex Akel: "I'm looking for people who are kind of like myself, true operators who know every aspect of the business. This summit will be the best place to make those connections and meet those people."

Akel points out the value of connecting with like-minded leaders who can share operational insights and experiences.

Embracing Change and Technology

Larry Webb: "Forces of change are always at the forefront of great leadership. Identifying what they are, thinking about the impacts they will have, and then acting on those is key."

Webb stresses the importance of staying ahead of technological and demographic shifts reshaping the industry.

Alex Akel: "We invest a lot of time and money into every aspect of the home buying journey to bring it to the next level. Leveraging technology is fundamental to differentiate from the competition."

Akel's approach to integrating technology in customer interactions exemplifies the innovative thinking the summit aims to foster.

Unique Learning Environment

Larry Webb: "Being in the room for two or three days with smart people who are sharing can only help people at this time."

The summit’s interactive format facilitates deep connections and real-world discussions, moving beyond traditional presentations to more engaging and practical sessions.

Don Dykstra: "I always enjoy the positive energy at any gathering of home builders. It is time to work together with other industry leaders to discuss and find the path forward."

Dykstra echoes that collective learning and collaboration are vital for navigating the industry's future challenges.

Preparing for the Future

Larry Webb: "I think CNN commentator Ron Brownstein speaking about the election and what the implications are will be fun and interesting. I want to hear him."

Webb's anticipation for insights into the political and economic landscape highlights the summit’s comprehensive approach to preparing leaders for the future.

Don Dykstra: "2025 will be a year of opportunity and challenges with a new President, new economic policies, and interest rate fluctuations. With AI, the world will spin faster than ever. Can you keep your balance and stay on your feet? With Boomers finally aging out of their long-held management roles, the next generations are in charge. Ready or not, here they come."

Dykstra underscores the urgency of understanding and adapting to rapid changes that will impact the industry.

Land, local relationships with government agencies and elected officials as well as land sellers and developers, construction crews, distribution partners, etc., capital, real estate brokers, and home buyers – not to mention the technologies and networks that connect, engage, and activate them all.

It turns out that none of it is less important than anything else to what makes homebuilding operators capable of high performance. They're all critical, and they all come down to trusting people.

Lamade's "Fill The Bathtub" conclusion is so telling, and so aligned with what we strive to ignite in the experience of our Focus On Excellence participants in Austin in October.

Today, it feels like we are reaching an inflection point. I could be wrong, but it feels like people are tired of being lied to. Instead of airbrushed versions of life, they want to witness reality. They want politicians who tell it straight. They want a media that reports all sides of a story. They want to invest in companies and funds that are transparent, forthright, and aim to be around for decades instead of days. They want all the facts. They simply want the truth."

We'll echo that: "around for decades instead of days." That will take building high performance fueled by trust.