On Saturday Warren Buffett released his annual letter on Berkshire Hathaway.\u00a0 If you are an investor it is a must read.\u00a0 Here are the best quotes from the letter.<\/p>\n
… stock repurchases at Coca-Cola, American Express and Wells Fargo raised our percentage ownership of each. Our equity in Coca-Cola grew from 9.1% to 9.2%, our interest in American Express increased from 14.2% to 14.8% and our ownership of Wells Fargo grew from 9.2% to 9.4%. And, if you think tenths of a percent aren\u2019t important, ponder this math: For the four companies in aggregate, each increase of one-tenth of a percent in our ownership raises Berkshire\u2019s portion of their annual earnings by $50 million.<\/p><\/blockquote>\n
On BNSF Railroad<\/h4>\n
BNSF, like all railroads, also moves its cargo in an extraordinarily fuel-efficient and environmentally friendly way, carrying a ton of freight about 500 miles on a single gallon of diesel fuel. Trucks taking on the same job guzzle about four times as much fuel.<\/p><\/blockquote>\n
Elephant Hunting or Tuna Fishing?<\/h4>\n
In past letters Buffett has said he is elephant hunting for new businesses.\u00a0 He is now fishing.<\/p>\n
With the acquisition of Van Tuyl, Berkshire now owns 9 1\u20442 companies that would be listed on the Fortune500 were they independent (Heinz is the 1\u20442). That leaves 490 1\u20442 fish in the sea. Our lines are out.<\/p><\/blockquote>\n
Investing Wisdom<\/h4>\n
… my experience in business helps me as an investor and that my investment
\nexperience has made me a better businessman. Each pursuit teaches lessons that are applicable to the other. And some truths can only be fully learned through experience. (In Fred Schwed\u2019s wonderful book, Where Are the Customers\u2019 Yachts?, <\/em>a Peter Arno cartoon depicts a puzzled Adam looking at an eager Eve, while a caption says, \u201cThere are certain things that cannot be adequately explained to a virgin either by words or pictures.\u201d<\/p><\/blockquote>\nFor the great majority of investors, however, who can \u2013 and should \u2013 invest with a multi-decade horizon, quotational declines are unimportant. Their focus should remain fixed on attaining significant gains in purchasing power over their investing lifetime. For them, a diversified equity portfolio, bought over time, will prove far less risky than dollar-based securities.<\/p><\/blockquote>\n
Funny<\/h4>\n
The gecko, I should add, has one particularly endearing quality \u2013 he works without pay. Unlike a human spokesperson, he never gets a swelled head from his fame nor does he have an agent to constantly remind us how valuable he is. I love the little guy.<\/p><\/blockquote>\n
When I was a teenager\u2013 in my one brief flirtation with honest labor \u2013 I tossed about 500,000 papers.<\/p><\/blockquote>\n
Benjamin Franklin Wisdom<\/h4>\n
Buffett always has some common sense wisdom in his letters.<\/p>\n
It\u2019s better to have a partial interest in the Hope Diamond than to own all of a rhinestone.<\/p><\/blockquote>\n
In the world of business, bad news often surfaces serially: You see a cockroach in your kitchen; as the days go by, you meet his relatives.<\/p><\/blockquote>\n
Market forecasters will fill your ear but will never fill your wallet.<\/p><\/blockquote>\n
We\u2019ve found that if you advertise an interest in buying collies, a lot of people will call hoping to sell you their cocker spaniels.<\/p><\/blockquote>\n
… never underestimate the man who overestimates himself.<\/p><\/blockquote>\n
Dividend?<\/h4>\n
Buffett has always said Berkshire won’t pay a dividend but hints that they might in the future.<\/p>\n
Eventually \u2013 probably between ten and twenty years from now \u2013 Berkshire\u2019s earnings and capital resources will reach a level that will not allow management to intelligently reinvest all of the company\u2019s earnings. At that time our directors will need to determine whether the best method to distribute the excess earnings is through dividends, share repurchases or both.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
On Saturday Warren Buffett released his annual letter on Berkshire Hathaway.\u00a0 If you are an investor it is a must read.\u00a0 Here are the best quotes from the letter. On Berkshire’s Investments … stock repurchases at Coca-Cola, American Express and Wells Fargo raised our percentage ownership of each. Our equity in Coca-Cola grew from 9.1% […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[45,44],"class_list":["post-80","post","type-post","status-publish","format-standard","hentry","category-berkshire-hathaway","tag-berkshire-hathaway","tag-warren-buffett"],"yoast_head":"\r\n
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