Category Archive

In his 1984 Berkshire Hathaway Letter, Warren Buffett discussed how to identify shareholder-conscious managements. Here’s an excerpt from the letter: The key word is “demonstrated”. A manager who consistently turns his back on repurchases, when these clearly are in the interests of owners, reveals more than he knows of his … Read More

In his 1966 Buffett Partnership Letter, Warren Buffett discussed Overdiversifying – The Noah School of Investing. Here’s an excerpt from the letter: There is one thing of which I can assure you. If good performance of the fund is even a minor objective, any portfolio encompassing one hundred stocks (whether … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

In his most recent Berkshire Hathaway 2022 Annual Letter, Warren Buffett discusses the secret sauce of investing. Here’s an excerpt from the letter: In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 … Read More

In his 2003 Berkshire Hathaway Annual Letter, Warren Buffett explained why he borrows money while sitting on a mountain of cash. Here’s an excerpt from the letter: In 2003, Berkshire did $2 billion of such borrowing and re-lending, with Clayton using much of this money to fund several large purchases … Read More

In his 1965 Buffett Partnership Letter, Warren Buffett discussed the necessary temperament required to be a good investor. Here’s an excerpt from the letter: During our eight-year history a general revaluation of securities has produced average annual rates of overall gain from the whole common stock field which I believe … Read More

During the 2008 Berkshire Hathaway Annual Meeting, Warren Buffett outlined his very simple formula for building a multinational conglomerate holding company. Here’s an excerpt from the meeting: WARREN BUFFETT: Well, Berkshire was a small business at one time. I mean, it just takes time. I mean, it’s the nature of … Read More

In his 1987 Chairman’s Letter, Warren Buffett explained how investors make the mistake of choosing exotic-sounding businesses over the less exotic, boring ones. Here’s an excerpt from the letter: Gypsy Rose Lee announced on one of her later birthdays: “I have everything I had last year; it’s just that it’s … Read More

In his 1957 Partnership Letter, Warren Buffett explained how he made money from ‘work-out’ investments. Here’s an excerpt from the letter: The market decline has created greater opportunity among undervalued situations so that, generally, our portfolio is heavier in undervalued situations relative to work-outs than it was last year. Perhaps … Read More

During the 2012 Berkshire Hathaway Annual Meeting, Warren Buffett discussed what he would have done differently if he had the chance to start over. Here’s an excerpt from the meeting: WARREN BUFFETT: Oh, I think you have all kinds of opportunities. I would probably do very much what I have … Read More

During the 2013 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the need to pay up for quality businesses. Here’s an excerpt from the meeting: WARREN BUFFETT: Well, we usually — we usually feel we’re paying too much. Isn’t that right, Charlie? (Laughs) But we find the business so compelling, the … Read More

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

During the 2017 Berkshire Hathaway Annual Meeting, Warren Buffett discussed getting new ideas and shedding old ones. Here’s an excerpt from the meeting: CHARLIE MUNGER: Everywhere you look in Berkshire, somebody is being sensible. And that is a great pleasure. And if you combine that with being very opportunistic so … Read More

During the 2007 Berkshire Hathaway Annual Meeting, Warren Buffett discussed how much time you should spend thinking about your portfolio. Here’s an excerpt from the meeting: WARREN BUFFETT: Well, that sort of breaks down into two periods in my life. When I had more ideas than money, I was thinking … Read More

During the 2003 Berkshire Annual Meeting, Warren Buffett explained why he never reads analysts reports. Here’s an excerpt from the meeting: WARREN BUFFETT: You want to read lots of financial material as it comes along. And actually, The New York Times has a far better business section than they had … Read More

During the 1999 Berkshire Hathaway Annual Meeting, Warren Buffett explained why wonderful industries do not always equate to wonderful businesses. Here’s an excerpt from the meeting: WARREN BUFFETT: There’s a lot of difference between making money and spotting a wonderful industry. You know, the two most important industries in the … Read More

During the 2007 Berkshire Hathaway Annual Meeting, Warren Buffett explained why you can buy businesses that don’t have a large margin of safety. Here’s an excerpt from the meeting: WARREN BUFFETT: We favor the businesses where we really think we know the answer. And, therefore, if a business gets to … Read More

During the 2011 Berkshire Hathaway Annual Meeting, Warren Buffett was asked – how can we determine how good of a job you have done at allocating capital? Here’s an excerpt from the meeting: WARREN BUFFETT: Well, the real test will be whether the earnings progress at a rate that’s commensurate … Read More