Category Archive

During the 2017 Berkshire Hathaway Annual Meeting, Warren Buffett explains how Berkshire Hathaway identifies businesses to acquire, emphasizing long-term competitive advantage, trusted management, and cultural fit. He recalls purchasing See’s Candy in 1972, highlighting their confidence in its lasting appeal despite higher prices. This confidence has led to significant profits … Read More

In his 2020 Berkshire Hathaway Annual Letter, Warren Buffett discussed increasing shareholder value by using the power of repurchases. Buffett explained how the previous year Berkshire Hathaway repurchased 80,998 “A” shares for $24.7 billion, increasing shareholders’ ownership by 5.2% without additional investment. Warren Buffett and Charlie Munger made these repurchases … Read More

In his 2004 Berkshire Hathaway Annual Letter, Warren Buffett explained how in 2004, the stock market had a rare “normal” return of around 11.2%, a rate only seen once before in 35 years. Despite strong business performance making it theoretically easy to achieve high returns, many investors experienced poor results. … Read More

In his 1983 Berkshire Hathaway Annual Letter, Warren Buffett criticizes the high activity in the stock market, which brokers promote using terms like “marketability” and “liquidity.” He argues that frequent trading benefits brokers but not investors, as it incurs significant costs. Using a hypothetical company earning 12% on equity with … Read More

During the 1994 Berkshire Hathaway Annual Meeting, Warren Buffett advises against making investment decisions based on others’ opinions, highlighting the irrelevance of public opinion polls in achieving financial success. Instead, he advocates for personal evaluation of businesses. He and Charlie Munger ignore market predictions and analyst opinions, focusing instead on … Read More

In his 2013 Berkshire Hathaway Annual Letter, Warren Buffett discusses the diverse range of companies in Berkshire Hathaway, from those with exceptional profitability to those with poor returns due to his misjudgments. Fortunately, his major acquisitions have generally been successful. Overall, the companies employed $25 billion of net tangible assets … Read More

In his 2011 Berkshire Hathaway Annual Letter, Warren Buffett explains why he advocates for investing in productive assets like businesses, farms, and real estate that can retain purchasing power during inflation while requiring minimal new capital investment. He highlights companies like Coca-Cola, IBM, and See’s Candy as meeting this criteria. Buffett … Read More

During the 2000 Berkshire Hathaway Annual Meeting, Buffett provides a story about Jack Ringwalt from 1967. He asked Ringwalt whether he preferred to sell his business, which he lovingly built, or risk it being mishandled after his death. By positioning Berkshire Hathaway as a “museum” where businesses are respected and … Read More

In his 1989 Berkshire Hathaway Annual Letter, Warren Buffett explains that long-term investing, like his Rip Van Winkle approach, has a significant advantage due to tax timing. By comparing two scenarios, he shows that reinvesting after annual taxes over 20 years yields about $25,250, while a single long-term investment grows … Read More

In his 1998 Berkshire Hathaway Annual Letter, Warren Buffett critiques corporate manipulation of financial results using a humorous golf metaphor. He describes a golfer who records atrocious scores initially, then claims to “restructure” their swing and counts only good scores in subsequent rounds, thus masking true performance. Another tactic involves … Read More

During the 1998 Berkshire Hathaway Annual Meeting, Warren Buffett offered several insightful lessons on business management, particularly in the context of acquisitions and leadership, including why it’s crucial to discern whether a business leader is driven primarily by a passion for their business or by financial gain. This distinction helps … Read More

During the 1994 Berkshire Hathaway Annual Meeting, Warren Buffett discusses risk as the possibility of harm, which is tied to the time horizon for holding an asset. Short-term trades, like buying and selling within a day, are highly risky. In contrast, long-term investments, such as buying Coca-Cola shares for years, … Read More

During the 2024 Berkshire Hathaway Annual Meeting, Warren Buffett discusses the significant role of luck in his success and life in general. He acknowledges that many fortunate circumstances, such as avoiding accidents, have contributed to his longevity and achievements. He admits that he would not have been the favorite to live … Read More

In his 1979 Berkshire Hathaway Annual Letter, Warren Buffett discussed Berkshire Hathaway’s 1979 operating performance, which was strong but slightly less impressive than in 1978, with operating earnings at 18.6% of beginning net worth. Despite a 20% increase in earnings per share, Warren Buffett cautions against focusing on this metric. … Read More

During the recent 2024 Berkshire Annual Meeting, Warren Buffett reflected on past experiences, acknowledging he’d gained wisdom. He anticipates future challenges, expecting crises akin to 2008 but not identical. He emphasizes the need for quick access to substantial funds, foreseeing crises occurring every 5-10 years due to increasing global complexity. … Read More

During his recent Berkshire Hathaway Annual Meeting, Warren Buffett discussed how he would achieve a 50% annual return with less than $1 million by deeply investigating small investment opportunities, akin to his past practices with railroad stocks detailed in Moody’s manuals. He emphasizes the necessity of passion for the process … Read More

During the recent 2024 Berkshire Hathaway Annual Meeting, Warren Buffett recounts meeting Charlie Munger in 1959, likening it to twins reunited. While both were curious, Buffett focused on whether things worked, while Munger delved into how they worked. Munger’s understanding of electricity rivalled Edison’s; he designed and built his home … Read More

During his latest 2024 Berkshire Hathaway Annual Meeting, Warren Buffett acknowledges his lack of understanding about AI but doesn’t dismiss its significance. He compares it to the nuclear genie, once out of the bottle, impossible to control. He recalls a disturbing experience where AI convincingly mimicked him, realizing its potential … Read More

In his 1985 Berkshire Hathaway Letter, Warren Buffett discussed how misguided academic teachings benefit strategic investors. In the early 1970s, successful investing was based on the philosophy of Ben Graham, which emphasized buying shares in solid businesses when their market prices were significantly below their true business values. This approach … Read More

In his 1984 Berkshire Hathaway Letter, Warren Buffett discussed his bond investment strategy where he treats bonds as businesses. An approach that might seem unconventional but is quite insightful. Typically, bond investments are viewed merely in terms of yield. For example, in 1946, investors purchased 20-year AAA tax-exempt bonds yielding … Read More