All of the letters in the book and the examples above were written by Warren E. Buffett and are copyrighted and reprinted with his permission. These letters may not be reproduced, copied, sold or otherwise distributed without the permission of Warren E. Buffett. Perhaps in another life Mr. Munger, with all his drive and self-assurance, would have been the chief of a giant corporation.
Even though The Berkshire Hathaway Annual Letters to Shareholders are the most instructive investment material I’ve seen in a long time, I just want to warn you that the book is a little long. And if you’re only curious about Warren Buffet the shareholder letters are probably not for you. In the third quarter, Berkshire Hathaway sold off part of its holdings in Globe Life, Markel, and Aon, all insurance companies within the financial sector.
Where Are the Customers’ Yachts by Fred Schwed In Fred Schwed’s excellent book, Where Are the Customers’ Yachts, a cartoon by Peter Arno shows a bewildered Adam looking at a cheerful Weather, while a caption reads, “There are some that can’t be. I’ve been investing most of my life and have managed money professionally for 9 years. Buffett’s philosophies have had a huge impact on how I run my businesses and live my life. I put this compilation together as a thanks to his positive influence on myself and many, many others.
It is currently a work in progress, but I hope it contains a variety of historical material, including documents from the 19th Century. This is just Warren Buffet talking directly to you about the thing he loves most. His shareholder letters are not only educational and instructive – but kind of funny! And getting a 700 page lesson from the most successful investor in the world is a pretty good value proposition for anyone who is thinking about money management, or even just securities and business analysis. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
During the entire time they worked together, Buffett and Munger lived more than 1,500 miles apart, but Buffett said he would call Munger in Los Angeles or Pasadena to consult on every major decision he made. “Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett said in a written statement. When it went public in 1971, the company prioritized achieving a combined ratio of 96, meaning it would earn $0.04 of profit for every dollar of premium earned.
While a summer reading list or a “best books of the year” list is nothing new, a book recommendation when it comes to Warren Buffett means something entirely different. The partnership, spanning more than 50 years, produced one of the most successful and largest conglomerates in history. Among other properties, Berkshire, which is based in Omaha, owns the insurance giant Geico and the Burlington Northern Santa Fe railroad company and holds stakes in Coca-Cola, American Express, IBM, Wells Fargo and other corporate heavyweights. Mr. Munger counseled Mr. Buffett that if he wanted to build a large, sustainable company that would outperform other investors, he should buy solid brand-name companies. “He was the architect and I was the general contractor,” Mr. Buffett said of their relationship.
Buffett’s philosophies have had a huge impact on how I run my businesses and live my life. I put this collection together as a thank you for his positive influence on me and many, many others. MiTek by Jim Healey I recommend MiTek, an informative history of one of our most successful companies. You’ll learn how my interest in the company was originally sparked by receiving a piece of ugly metal in the mail whose purpose I couldn’t fathom. Since we bought the MiTek in 2001, it has made 33 “tuck-in” acquisitions, almost all of them successful.
Having the letters in front of you in print is much better than skimming them in PDF format on a screen. Plus, it really does make sense to start at the beginning and get the whole narrative. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation – we are not investment advisors nor do we give personalized investment advice.
This is a two-pronged approach for assessing the underlying economics of a company. Buffett favored return on equity over earnings per share as a yardstick to measure managerial effectiveness. This criterion seems to be another mark of Graham’s influence on Buffett.
Buffett shares the logic, reason and analysis behind all of his major capital allocation decisions. Charlie Munger, vice chairman of Berkshire Hathaway, attends the annual Berkshire shareholders meeting in Omaha, Nebraska, in 2019. There are numerous potential berkshire hathaway letters to shareholders investments that Buffett and his team could’ve bought. One intriguing stock that the conglomerate could have added during the period is Progressive (PGR -0.96%). Progressive is the second-largest auto insurance company in the U.S., trailing only State Farm.
I’m a value investor but, I use swing trading techniques to manage my position sizes and risk. So that’s what you can expect at stockideas.org – and in my free eBook above. OMAHA, Neb. — Charlie Munger, who helped Warren Buffett build Berkshire Hathaway into an investment powerhouse, has died at a California hospital. It’s possible that Berkshire Hathaway sees Progressive’s ongoing outperformance and decided to add shares to its $354 billion portfolio. Progressive’s long history of collecting driver data is one part of its stellar underwriting performance, and maybe Buffett and his team caved and wanted a piece of the action.
Our mission is to nurture the love of books and support your book-reading fantasies. Let’s use our love of books to collectively build brilliant, creative futures for ourselves and our world. Over these same 63 years, the average market return was just under 10%, including dividends. Over this period, an average market return would have grown a $1,000 investment to $405,000 if all income had been reinvested. The 20% average return produced by Buffett over this period would have grown a $1,000 original investment to $97 million. Buffett is often asked why he does not split the stock to make it more affordable and accessible for a larger number of people.