Tag Archive

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 1986 Berkshire Hathaway Annual Letter, Warren Buffett explained that while common stocks can offer significant returns, he is currently not finding any that meet his investment criteria. His strategy involves being cautious during periods of excessive optimism and taking advantage of opportunities when fear is prevalent. Here’s an … Read More

In his 2018 Berkshire Hathaway Annual Letter, Warren Buffett is critical of the way some on Wall Street present financial data, specifically earnings, in a way that inflates their true value. He compares this to someone calling a dog’s tail a leg – it doesn’t change the reality of what … Read More

In his latest 2023 Berkshire Hathaway Annual Letter, Warren Buffett discusses his strategy of investing in businesses with strong fundamentals and enduring competitive advantages. He explains how finding these businesses has become more difficult due to Berkshire’s own size and increased competition. He also emphasizes the importance of trustworthy management, … Read More

In his 2002 Berkshire Hathaway Annual Letter, Warren Buffett explains how they are willing to wait on the sidelines for opportunities with at least a 10% pre-tax return potential, even though holding cash offers low returns. He acknowledges the discomfort of this approach, but believes it’s necessary for successful long-term … Read More

In his 1968 Buffett Partnership Letter, Warren Buffett discusses the widespread financial phenomenon of chain-letter type stock promotions, where substantial amounts of money are made through various roles in the process. He describes how these activities rely on illusions created through accounting distortions and other means, leading to profitable outcomes. … Read More

In his 2008 Berkshire Hathaway Shareholder Letter, Warren Buffett explains that while the stock market has been positive in 75% of the past 44 years, it is impossible to predict future performance. Instead, he focuses on four goals for Berkshire Hathaway to ensure its success. Here’s an excerpt from the … Read More

In his 2016 Berkshire Hathaway Annual Letter, Warren Buffett explains that many investment professionals exploit human psychology to earn high fees, regardless of actual performance. This harms institutions like pension funds and enriches advisors. He uses an anecdote about selling livestock to illustrate how skilled storytellers, not necessarily experts, can … Read More

In his 1981 Berkshire Hathaway Annual Letter, Warren Buffett explained why he doesn’t believe in making small commitments when it comes to total ownership or part ownership in businesses. He discusses three motivations—usually unspoken—to be, singly or in combination, the important ones in most high-premium takeovers. Here’s an excerpt from … Read More

In his 2022 Berkshire Hathaway Annual Letter, Warren Buffett discussed his investments in Coca-Cola and American Express, which highlight the importance of investing in high quality companies with strong fundamentals, and holding them for long periods of time. His key points include: Berkshire Hathaway purchased significant stakes in both companies … Read More

In his 2014 Berkshire Hathaway Annual Letter, Warren Buffett discusses the LTV corporation and its CEO, Jimmy Ling, as a cautionary tale about the dangers of financial hype and unrealistic expectations in the market. Key takeaways include: Financial markets can get irrational and follow charismatic figures like Jimmy Ling Don’t … Read More

In his 1983 Berkshire Hathaway Annual Letter, Warren Buffett explained why a profitable business might not be a wise acquisition. While good businesses are good places to seek acquisitions, focusing purely on operating performance without considering true acquisition cost can lead to misjudgments. Here’s an excerpt from the letter: We … Read More

In his 2013 Berkshire Hathaway Annual Letter, Warren Buffett outlined an investing strategy that could be used by non-professional investors to achieve success in the stock market. His key points for non-professional investors were: You don’t need special skills to invest. American businesses generally do well over time Aim to … Read More

In his 2008 Berkshire Hathaway Annual Letter, Warren Buffett emphasizes that seeking approval should not be the aim of investing. This mentality can be detrimental for several reasons: It clouds judgment: When seeking validation, investors might become less attuned to new information or critical analysis, potentially missing valuable opportunities or perpetuating flawed … Read More

In his 2007 Berkshire Hathaway Annual Letter, Warren Buffett discussed the ‘gruesome’ businesses that investors should avoid at all cost. Here’s an excerpt from the letter: Now let’s move to the gruesome. The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and … Read More

In his 1997 Berkshire Hathaway Annual Letter, Warren Buffett discusses his strong preference for using cash over issuing Berkshire stock in acquisitions, citing a historical pattern of stock-only mergers resulting in shareholders being worse off. The difficulty arises from the ownership of a remarkable collection of businesses, making it challenging … Read More

In his 2011 Berkshire Hathaway Annual Letter, Warren Buffett explained why he invests in productive assets (businesses, farms, real estate) over cash/currency or sterile assets (gold) during times of economic uncertainty. His reasons for preferring productive assets: Resilience against inflation: They can maintain their purchasing power by continuously producing goods and … Read More

In his 1998 Berkshire Hathaway Annual Letter, Warren Buffett explained how businesses can inflate their performance by hiding bad results and only presenting good ones. Using a golf analogy he provided two scenarios: Front-loading bad scores: A golfer purposefully scores terribly in the first round, creating a “reserve” of bad shots. … Read More

In his 1991 Berkshire Hathaway Annual Letter, Warren Buffett discusses the two critical mistakes he made when Berkshire Hathaway had the chance to acquire a significant stake in Fannie Mae in 1988. Stopping buying after an initial price increase: This prevented him from fully seizing the potential growth. Selling their … Read More

During the 1998 Berkshire Hathaway Annual Meeting, Warren Buffett discussed Ben Graham’s ‘frozen corporations’ and why they should be avoided. Here’s an excerpt from the meeting: WARREN BUFFETT: Well, we discount at the long rate just to have a standard of measurement across all businesses. But we would take the … Read More