Warren Buffett: How’s That For A Strategic Plan?

Johnny HopkinsInvesting Strategy, Warren BuffettLeave a Comment

The Acquirer’s Multiple® - FREE Stock Screener

unlimited

In the 1984 Berkshire Hathaway Shareholder Letter, Warren Buffett describes his and Munger’s suprising strategic plan for finding their big investment ideas, saying:

“Using my academic voice, I have told you in the past of the drag that a mushrooming capital base exerts upon rates of return. Unfortunately, my academic voice is now giving way to a reportorial voice. Our historical 22% rate is just that—history. To earn even 15% annually over the next decade (assuming we continue to follow our present dividend policy, about which more will be said later in this letter) we would need profits aggregating about $3.9 billion. Accomplishing this will require a few big ideas—small ones just won’t do.”

“Charlie Munger, my partner in general management, and I do not have any such ideas at present, but our experience has been that they pop up occasionally. (How’s that for a strategic plan?)”.

You can read the entire 1984 shareholder letter here – 1984 Berkshire Hathaway Shareholder Letter.

For more articles like this, check out our recent articles here.

Join 9,935 other investors in search of undervalued stocks, value investing news, and investing strategies from the greats:

FREE Stock Screener

Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:

unlimited

Join 9,935 other investors in search of undervalued stocks, value investing news, and investing strategies from the greats:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.