These are his true words; “lesson plan” of his views on business and investment. It has been claimed by many that you will learn more from reading these letters than getting an MBA. Going to my first shareholder meeting this May, so reading this was a great way to get the most out of the trip. Because of that, the book is considerably long and if you decide to read it all at once you’ll find some of the year-to-year discussions a little repetitive. He prefers to invest in companies that are already successful and that have a strong chance of continuing success over the long term.
“Amazing book and such an easy read. Warren Buffet is as berkshire hathaway letters to shareholders funny and humble as he is wise….” Read more Customers find the book highly readable and consider it an outstanding treasure, with one customer noting it’s a must-read for long-term investors. Moreover, the book provides wonderful insights, with one customer describing it as an incredible collection of business lessons.
Leadership Succession at Berkshire Hathaway
You can find most of the letters for free on Berkshire’s website, but this compiles them into a well-designed, easily readable format. There are hundreds of books about Buffett’s life, advice, and methods. This book compiles the full, un-edited versions of 50 years of Warren Buffett’s letters to the shareholders of Berkshire Hathaway. Fifty letters to shareholders later, the same share traded for $226,000, compounding investor capital at just under 21% per year-a multiplier of 12,556 times. A share changed hands for around $18 at the time. Warren E. Buffett first took control of Berkshire Hathaway Inc., a small textile company, in April of 1965.
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Our property/casualty (“P/C”) insurance business has been the engine propelling Berkshire’s growth since 1967, the year we acquired National Indemnity and its sister company, National Fire & Marine, for $8.6 million. The annual report earlier this week, received plenty of attention, given he…and the economic system.” One of Berkshire’s largest businesses, General Re… The Intelligent Investor by Ben Graham And now back to Ben Graham. All I knew was that I liked Warren’s way of thinking, his approach to business and investing and I wanted to read more from the man directly, not via a biographer or hired hand. Don’t read those numerous related books, warren and munger’s original writings are the best. Buffett’s personal formulation of the strategy is simply “finding an outstanding company at a sensible price” as opposed to finding mediocre companies for cheap prices. But when a company buys back its own stock while it is priced at or above the stock’s intrinsic value, the company is by definition overpaying.
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In 2016, it was the fifth-largest auto dealership group, with ownership of 81 dealerships and revenues of $8 billion. On October 2, 2014, Berkshire Hathaway Automotive, an auto dealership subsidiary, was created through the acquisition of Van Tuyl Group, the largest auto dealer in the nation that was still independently owned up to that date. In September 2011, Berkshire Hathaway acquired Lubrizol for $9 billion in cash. Also in December 2007, when stresses that led to the 2008 financial crisis were forming, Berkshire created a government bond insurance company to insure municipal bonds, starting with New York State bonds.
Berkshire Hathaway 2024 Annual Shareholder Letter by Warren Buffett
These holdings are broadly disclosed in its Form 13F filings, although the company sometimes obtains permission to keep active trades confidential. Berkshire Hathaway sold its stake in Ulta Beauty in the fourth quarter of 2024, just two quarters after acquiring the shares. In the third quarter of 2022, Berkshire bought 60 million shares in TSMC valued at $4.1 billion; the shares were sold in late 2022 and 2023 in part due to geopolitical tensions. However, at an annual meeting on May 4, 2024, Buffett stated that he had sold all of his shares in Paramount at a substantial loss, blaming himself for deciding to invest.
Brown Shoe Company, at the time the leading manufacturer of work shoes in North America. A lot of them are wilting in bookshelves around the world waiting for a day when the owner inevitably bundles it into the charity box for donation. In fact, chances are most of these books will be flung across the room well before the last chapter. You can find most of the fonts for free on Berkshire’s website, but this one compiles them into a well-designed, easy-to-read format.
- If we calculate the value of a common stock to be only slightly higher than its price , we’re not interested in buying .
- Buffett had made an investment in US Airways in 1989 which, although he sold for a profit, almost lost Berkshire a substantial sum of money.
- In October 2022, Berkshire Hathaway acquired insurance company Alleghany Corporation for $11.6 billion.
- A share changed hands for around $18 at the time.
- Firms spread into the surrounding Thames Valley or M4 corridor, attracting IT firms such as Cable & Wireless, DEC (subsequently Hewlett-Packard), Microsoft, Sharp Telecommunications, Oracle Corporation, Sun Microsystems and Cognos.
Shares closed over $1,000 for the first time on August 26, 1983, and over $10,000 on October 16, 1992. Holders of class A stock are allowed to convert their stock to Class B, though not vice versa. With some exceptions, the company also usually does not invest in real property due to precise pricing, lack of competitive advantage, complex management, and corporation tax disadvantages. The purchase made Berkshire Hathaway the sixth-largest shareholder of Constellation Brands. Berkshire Hathaway bought 5.62 million shares of Constellation Brands in the fourth quarter of 2024, worth $1.24 billion.
Warren Buffett
The company later acquired Professional Datasolutions and Salado Sales. In October 2002, Berkshire acquired The Pampered Chef, the largest direct seller of kitchen tools in the United States. In June 2000, the company acquired Justin Brands, the parent company of Justin Boots, Acme Boots, and Acme Brick for $600 million in cash.
- Some shares were sold in 2023 and 2024, with Buffett motivated by the China–United States trade war.
- As of Dec. 31, 2022, Berkshire’s public market equity portfolio was valued at more than $346 billion.
- But when a company buys back its own stock while it is priced at or above the stock’s intrinsic value, the company is by definition overpaying.
- Berkshire Hathaway has a long history of operating success and smart investments.
- All I knew was that I liked Warren’s way of thinking, his approach to business and investing and I wanted to read more from the man directly, not via a biographer or hired hand.
- In 2012, National Indemnity acquired workers’ compensation insurer GUARD for $221 million.
Goldman had the right to re-purchase the preferred stock at a 10% premium, and in March 2011 exercised this right paying $5.5 billion to Berkshire. The preferred stock yielded an annual interest rate of 10%, earning Berkshire $500 million in interest income per year. That year, ConocoPhillips completed the corporate spin-off of Phillips 66, of which Berkshire owned 27 million shares. Buffett later described this as “a major mistake” as the price of oil collapsed during the Great Recession. In early 2008, Berkshire increased its stake in ConocoPhillips to 85 million shares. Berkshire realized an after-tax loss of $444 million on the Tesco investment.
What Is Value Investing?
Class A shares of common stock usually give shareholders a greater amount of voting rights than Class B and other classes of stock. Value investing refers to investing in a security with an intrinsic value that’s greater than its market value. Over time, Buffett’s investing prowess became so renowned that Berkshire Hathaway’s annual shareholder meetings are now a mecca for value investing proponents. Buffett has long eschewed a diversified stock portfolio in favor of trusted investments that would be over-weighted in order to leverage the anticipated return. Berkshire’s stock trades on the New York Stock Exchange in two classes—A shares and B shares.
Investment strategy
Experience , however , indicates that the best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago . After all , why should the time required for a planet to circle the sun synchronize precisely with the time required for business actions to pay off ? Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.
Full text of Warren Buffett’s annual letter to shareholders – Economic Times
What we do know , however , is that occasional outbreaks of those two super — contagious diseases , fear and greed , will forever occur in the investment community . Beware the investment activity that produces applause ; the great moves are usually greeted by yawns . Furthermore , economic terrain that is forever shifting violently is ground on which it is difficult to build a fortress — like business franchise . But a business that constantly encounters major change also encounters many chances for major error . That prospect lets investors fantasize about future profitability rather than face today’s business realities .
Under the Local Government Act 1888, Berkshire County Council took over functions of the Berkshire Quarter Sessions, covering the administrative county of Berkshire, which excluded the county borough of Reading. Reading became the new county town in 1867, taking over from Abingdon, which remained in the county. The proximity of the east of the county to London led to development from the nineteenth century, when Slough became an industrial centre and Bracknell was designated a new town. The county has been the site of several battles, particularly during the First English Civil War, when Reading and Wallingford were besieged two battles took place at Newbury, in 1643 and 1644.
Aside from its subsidiaries, Berkshire manages a portfolio of non-controlling stock investments into which its insurance companies invest policy premiums. In the first quarter of 2022, Berkshire acquired 121 million shares of HP Inc. valued at more than $4.2 billion; the shares were sold in 2023 and 2024. In June 2017, Berkshire invested $377 million in Store Capital, a Scottsdale-based real estate investment trust that owned more than 1,750 properties in 48 states; the company was sold to private equity firms in 2022. Alongside the preferred stock investment, Berkshire obtained warrants allowing Berkshire to buy 700 million common shares at $7.14 per share, which were exercised. Berkshire made its first investment in Tesco in 2006, and in 2012 it raised this stake to over 5% of the company, investing a total of $2.3 billion.
