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.

FREE Stock Screener

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

unlimited

Join 10,353 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Your email address will not be published.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.