Category Archive

In his 1977 Berkshire Hathaway Annual Letter, Warren Buffett explains why single year snapshots are not adequate portrayals of a business. Investors should focus on the long-term prospects of a company when making investment decisions, rather than getting caught up in short-term trends. Here’s an excerpt from the letter: Just … Read More

During the 1994 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the two yardsticks for judging great management. Here’s an excerpt from the meeting: WARREN BUFFETT: Well, I think you judge management by two yardsticks. One is how well they run the business and I think you can learn a lot … Read More

In his 1986 Berkshire Hathaway Annual Letter, Warren Buffett explained how to use mathematical laws to make better stock market decisions. Here’s an excerpt from the letter: Common stocks, of course, are the most fun. When conditions are right that is, when companies with good economics and good management sell … Read More

In his 2005 Berkshire Hathaway Annual Letter, Warren Buffett discussed the importance of focusing on long-term sustainability and competitive advantage over short-term gains, highlighting the concept of “widening the moat” as a key strategy for business success. Here’s an excerpt from the letter: Every day, in countless ways, the competitive … Read More

In his 1985 Berkshire Hathaway Annual Letter, Warren Buffett discussed the misconception of managerial achievement in companies when it comes to increasing earnings. Saying, that simply increasing capital and earnings without considering the return on capital is not a significant accomplishment. Here’s an excerpt from the letter: When returns on … Read More

In his 1989 Berkshire Hathaway Shareholder Letter, Warren Buffett explained why the rationality of the most decent, intelligent, and experienced managers wilts in the face of the institutional imperative. Here’s an excerpt from the letter: My most surprising discovery: the overwhelming importance in business of an unseen force that we … Read More

In his 1981 Berkshire Hathaway Annual Letter, Warren Buffett used the metaphor of a “gigantic corporate tapeworm” to describe how inflation preempts a portion of a company’s investment dollars, regardless of its profitability. Here’s an excerpt from the letter: What makes sense for the bondholder makes sense for the shareholder. … Read More

During the 2015 Berkshire Hathaway Annual Meeting, Warren Buffett explained why he doesn’t ‘talk up’ Berkshire’s investments. Here’s an excerpt from the meeting: WARREN BUFFETT: Incidentally, there’s one thing I always find interesting. We get asked questions about investments we own, and people think we want to talk them up, … Read More

In his 1965 Buffett Partnership Letter, Warren Buffett explains why he derives no comfort because important people, vocal people, or great numbers of people agree with him. Nor does he derive comfort if they don’t. A public opinion poll is no substitute for thought, he says. Here’s an excerpt from … Read More

During the 2009 Berkshire Hathaway Annual Meeting, Warren Buffett explained why you should ignore your original costs when reviewing your portfolio. Here’s an excerpt from the meeting: AUDIENCE MEMBER: Hello, Mr. Buffett. Sorry, about that. Mr. Buffett and Mr. Munger, my name’s Kelly Cardwell from Warrenville, Illinois. Guys, if either … Read More

During the 2019 Berkshire Hathaway Annual Meeting, Warren Buffett discusses how Berkshire Hathaway has had to adapt over the years to keep up with the changing business landscape. Here’s an excerpt from the meeting: WARREN BUFFETT: Yeah. But I mean, we basically want to have a group of managers, and … Read More

In the Berkshire Hathaway Owner’s Manual, Warren Buffett explains why he is willing to reject interesting opportunities rather than over-leverage his balance sheet. Here’s an excerpt from the Owner’s Manual: We use debt sparingly and, when we do borrow, we attempt to structure our loans on a long-term fixed-rate basis. … Read More

In his 1984 Berkshire Hathaway Annual Letter, a year in which Berkshire Hathaway’s net worth increased by $152.6 million, or 13.6%. Warren Buffett explained why “big ideas” were the only way to help the company achieve its long-term goal of earning 15% annually. Here’s an excerpt from the letter: Using … Read More

During the 2010 Berkshire Hathaway Annual Meeting, Warren Buffett explained why you have to be prepared to grab opportunities when they come around. Here’s an excerpt from the meeting: WARREN BUFFETT: There will probably be fewer, but I would say there will always be — except in the most bubbly … Read More