A bit repetitive, as you would expect, but it was interesting to see how the different businesses in the Berkshire portfolio changed over time as economic conditions changed. This should be required reading for anyone thinking about managing theirs or other people’s money. Reading Buffet’s letters is a good starting point that introduces one to this entire field of shareholders letters , which when thoughtfully written can prove to be a rich source of wisdom for their readers. Buffet has also demystified various concepts like Economic earnings vs accounting earnings, his rationale as to when the decisions like stock repurchases make sense, why BH has never distributed dividends. Yet you can see he never wavered his approach across 6 decades. Going to my first shareholder meeting this May, so reading this was a great way to get the most out of the trip. Anna Kharitonova is a successful entrepreneur, financier.

Well, I think that Greg’s on the board, so I don’t know that we’re in a position to give advice on Kraft Heinz. We entered a, in effect, a semi-formal partnership with 3G many years ago when it was just a Heinz deal and then went on to acquire Kraft with our partners and they’ve done more than they hold up their share of thing. The main thing about Berkshire is how they preserve the culture, how they make sure that if you get the wrong Berkshire Hathaway: Letters to Shareholders Review person as the CEO, you can do something about it. That’s the biggest risk a board has, is if you pick the wrong CEO and I’ve been on 20 boards, and this happened more than once. Sometimes it’s a terrible problem to get rid of them. Years go by… If a dissident comes in, it’s one thing, but if you just sit there and you collect your 3 or 400,000 a year, and the chief executive keeps proposing you’ll get an increase from time to time.

But in any event, there were at least 2000 companies that entered the auto business because it clearly had this incredible future. And of course you remember that in 2009, there were three left, two of which went bankrupt.

The Essays Of Warren Buffett: Lessons For Corporate America By Warren Buffett

There aren’t that many of them, and they don’t always stay that way. Well, the stock market, we’ve had a lot of people in the casino in the last year. You have millions and billions of people who’ve set up accounts where they day trade, where they’re selling… Put some calls, where they, I would say that you had the greatest increase in the number of gamblers essentially. And there’s nothing wrong with gambling and they got better odds than they’ve got if they play the state lottery, but they have cash in their pocket. And they actually don’t have a lot of good results. And if they just bought stocks, they do fine and held them.

Berkshire Hathaway: Letters to Shareholders Review

And really, as Warren touched on, BHE and BNSF have the significant carbon footprints when you think of Berkshire. Warren, you touched on the disclosure that we’ve provided in the past, going all the way back to 2007. I did pull those two investor presentations, one from 2007 and then our most recent one in 2021.

Read Warren Buffetts Annual Letter To Berkshire Hathaway Shareholders

But it goes beyond that, Ajit has a great understanding of the Berkshire culture. And anytime we see anything unusual in one of our businesses, it’s Ajit who I’m going to call and say, “Are you comfortable that we’re taking this approach?

Berkshire Hathaway: Letters to Shareholders Review

And then I’m going to get your thoughts on the other end. And that concludes the 2021 Berkshire Hathaway Annual Meeting to forex analytics Shareholders. But stick around, there is a lot to talk about, a lot to go through with our panel here at Yahoo Finance.

Jimmy Buffett 2014 Music Cds

On a related question, Elle Kandel wrote in on this, too, and said, if you can borrow money at a guaranteed lower even zero interest rate, is it still worthy of borrowing money for not that guaranteed cost from the insurance operation. I mean, if I could reduce gravity, it’s pull by about 80%, I mean, I’d be in the Tokyo Olympics jumping. And essentially, if interest rates were 10%, valuations are much higher.

And incidentally, I mean, in the way the cases have come so far in the United Kingdom, I mean, I think there was one particular insurer. I mean, the cases are coming down much tougher on insurers. The United States, I mean, the policies were just written differently.

We do have a strong presence in Mexico, not as strong as some of our competition, but we would feel competition there. We’ll follow that transaction very closely as it goes before the Surface Transportation Board. The standard that will be applied is that competition has to be protected or enhanced, so that’s our opportunity to protect our franchise on behalf of our customers. We move intermodal business both in and out of there on behalf of certain customers. We’ll want to protect the rights of our customers there, so we’ll be active in the approval process. But there’s no question, at the end it impacts our franchise. Well, if Charlie wants that answer that I’ll be glad to have him do it.

  • All three of the original businesses failed, which sort of gets me in terms of the people that are worried about don’t we know that coal is going to be phased out over time.
  • I mean, President said it on Wednesday, 85% of the people were going to get a $1,400 check.
  • And I don’t know exactly how one shows up in different price indices, but there’s more inflation going on, quite a bit more inflation going on that people would have anticipated just six months ago or thereabouts.
  • The cash stockpile has prompted concern from investors who aren’t sure why Buffett isn’t spending more, either on a large acquisition or stock buybacks.
  • I mean, just get me past the next election, and I’m all right on that one.
  • We note the parent company has 60 subsidiaries.

More people will have died that would have otherwise got payments under annuities. It’s one of the great human catastrophes of all time, but it was not that big in insurance. I would say this, if the insurance industry thinks they’re going to lose a hundred billion dollars, the hundred billion ought to be up on their books.

Still, investors must never forget that their expenses are Wall Street’s income. And, unlike my monkey, Wall Streeters do not work for peanuts. When our partnership distributed its Berkshire shares in 1969, all of the doctors kept the stock they received.

I love what the guy said in the first place, “I don’t care whether the cat is black and white, as long as it catches mice.” That’s my kind of talk. Well, I think that the Chinese government will allow businesses to flourish. It was one of the most remarkable things that ever happened in the history of the world when a bunch of committed Communists just looked at the prosperity of places forex analytics like Singapore and said, “The hell with this. We’re going to copy what works.” They changed communism. They just accepted Adam Smith and added it to their Communism. Now we have Communism with Chinese characteristics, which is China with a free market with a bunch of millionaires and so forth. Warren and I are not quite as good at that, at changing our minds, in many cases.

‘people Get Inordinately Attracted To Industries’

To deliver long-term value creation, succession planning is also important. Buffett is confident that the unannounced eur successors he has selected will carry on Berkshire’s principles. to Berkshire Hathaway’s shareholders in 1999.

And we’re always seeing the next storm, and we’re always getting too defensive and selling our winners too early and so forth. I mean, it was just pure speculation, pure gambling. And I don’t know if they actually quite came out and said it, but I for sure heard it. And a lot of innocent people who didn’t experience the internet bubble and the housing bubble bursting and all are going to get incinerated.” But they make no prediction as to when that will happen. And in fact, sold the airlines, that was a $5 billion mistake, sold the banks, that was a $10 billion mistake.

Berkshire Hathaway: Letters to Shareholders Review

He’d say, “Well, we’ll talk about that next year, Warren.” He just loved, he loved the business. And I wasn’t going to add anything by having him fill out a bunch of reports about how much he’s using in the way of carbon. Well, it’s too large to do certain things, that’s for sure. We can’t spend our time looking for 100 million dollar acquisitions. But we have a wonderful company in Fort Worth and we had a marvelous man running it and he died recently, but he ran it. He sold it to me 15 years ago and he just basically ran it. We’ve got this terrific company that makes recreational vehicles, the Elkhart based in Indiana.

Shareholder Meeting Ends, Buffett Looks Forward To 2022 Event In Omaha

In this updated version of “Letters to Shareholders,” author Warren E. Buffet showcases all the 54 unedited letters that he had sent to those who had held shares on Berkshire Hathaway Inc, a humble textile company. With the compiled letters of Warren E. Buffet, left untouched and put together by editor Max Olson, readers get an insight to peek into how Berkshire Hathaway’s staggering success along with the dividends shared amongst its shareholders. As I’ve emphasized many times, Charlie and I view Berkshire’s holdings of marketable stocks – at year end worth $281 billion – as a collection of businesses.