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In his 2022 Berkshire Hathaway Annual Letter, Warren Buffett reflects on his mistakes and successes over 58 years of managing Berkshire Hathaway. He acknowledges that most of his capital-allocation decisions have been average, with a few standout successes and some bad decisions salvaged by luck. Buffett highlights the dual nature … Read More

During the 2004 Berkshire Hathaway Annual Meeting, Warren Buffett discussed his approval of Google’s adoption of a communication style inspired by Berkshire Hathaway’s Owner’s Manual. He emphasizes the importance of companies being transparent with their investors about their principles and operational approaches. Buffett believes this straightforwardness builds trust, akin to what … Read More

In his 2013 Berkshire Hathaway Annual Letter, Warren Buffett explains that Berkshire Hathaway’s intrinsic value far exceeds its book value, a gap that has widened over time. This justified a 2012 decision allowing share repurchases at 120% of book value, as such buybacks benefit shareholders by securing shares below intrinsic … Read More

During the 1998 Berkshire Hathaway Annual Meeting, Warren Buffett contemplates the impact if all Fortune 500 companies were run by exceptional leaders like Jack Welch. He suggests that, while each individual might excel, competition among 500 “sensational competitors” could lead to a self-neutralizing effect, driving down returns on equity due … Read More

During the 1999 Berkshire Hathaway Annual Meeting, Warren Buffett discussed Berkshire Hathaway’s caution against excessive borrowing, explaining that while moderate debt might have increased their wealth, substantial borrowing could have led to trouble. He highlights how many intelligent investors consistently use risky, leveraged instruments, especially with others’ money. Buffett references … Read More

In his 1981 Berkshire Hathaway Annual Letter, Warren Buffett describes two successful acquisition strategies. The first targets businesses that thrive in inflation, possessing pricing power and minimal capital needs to scale. However, these businesses are rare and fiercely sought after, driving up competition. The second strategy depends on exceptional managers … Read More

During the 1994 Berkshire Hathaway Annual Meeting, Warren Buffett advises caution regarding business projections and inflated valuations, suggesting that genuine value assessment requires essential, straightforward data. He emphasizes that Berkshire Hathaway’s reports contain all the critical numbers that he and Charlie Munger use to evaluate investments, encouraging investors to independently … Read More

In his 1989 Berkshire Hathaway Annual Letter, Warren Buffett discusses the value of focusing on simple, solvable opportunities rather than tackling complex business challenges. He reflects on his and Charlie Munger’s investment philosophy, which prioritizes “one-foot hurdles” — easy-to-understand, lower-risk ventures. While difficult problems sometimes require attention and can lead … Read More