Buffett's letter to shareholders

[dindledoo]

I've just read his 1977 letter and found some gems in it. Some gems such as his continued investing in textiles in order to save the jobs of the older labor force, him making a killing on insurance even though rates are an open book and is easy to get licensed, and he investing in long term companies because he believes it is impossible or very hard for anyone to predict short term stock movements. Does anyone else read his annual letters as source of information to learn from?

I also made a video on his 1977 letter here : https://youtu.be/yHYKib3pwCw [Animated]

[Dragline]

Sometimes. I prefer Charlie Munger, his curmudgeonly side-kick. See if you can find a copy of "Poor Charlie's Almanac."

This is also good: http://www.valueplays.net/wp-content/up ... 4-2011.pdf

[dindledoo]

That is awesome! I knew of his partner but never learn much about him. I will read this, Thanks!

[Scrubby]

The book "The Essays of Warren Buffett" contains all his letters to shareholders rearranged by topics. I've read it and I would recommend it.

[JL13]

The 2011 essay on dividends versus retained earnings and the 1983 essay on economic goodwill are probably two of the most important writings on investments I've ever read. They were life changing for me.

[dindledoo]

The 2011 essay on dividends versus retained earnings and the 1983 essay on economic goodwill are probably two of the most important writings on investments I've ever read. They were life changing for me.

Are the 2011 essay on dividends vs retained earnings and 1983 essay on economic goodwill different letters, or are they in his annual letter to shareholders? How can I find them?

[JL13]

I think I got one of the years wrong.

http://berkshirehathaway.com/letters/2012ltr.pdf
Starting on page 19

http://berkshirehathaway.com/letters/1983.html
Appendix

[JL13]

This one, much longer, ties into both and reinforces both points also.

http://fortune.com/2011/06/12/buffett-h ... sics-1977/

Maybe "life changing" is a bit extreme of a statement. For someone who is going to rely on investment income for a substantial portion of his lifetime earnings, I suppose that anything that significantly changes the investment mindset and strategy could be described as life changing.

[BlueNote]

I have read them all. I read them as part of a self imposed education in investing. The printouts are in a box in my apartment. I used to read them on the work commute and made all sorts of notes. It's interesting to watch the evolution of his business year by year and the annual reports become more lively and educational as the years go by.

[dindledoo]

This one, much longer, ties into both and reinforces both points also.
http://fortune.com/2011/06/12/buffett-h ... sics-1977/

I have read them all.

Awesome thank you for the links! I was wondering if the letters affect the way you have invested? @J_L13, @BlueNote

[IlliniDave]

I've not studied Buffet's writing in detail. My investing philosophy is not terribly dissimilar to what he has arranged for his wife should he precede her in death, so I am guessing he would not disapprove of what I do. I've seen a couple interviews with Charlie Munger, a very interesting guy to listen to.

[JL13]

@dindledoo

Yes he definitely did change the way I invested. Before reading Buffett and Munger, the whole idea of copying something that worked in the past made me uneasy and so I shifted around my investments a lot. As you can imagine, I didn't make any money doing this at all. From 2010-2013 the S&P 500 increased 80%, while I only managed to eek out 20%. It's a wonder I didn't lose any money.

After reading his essays, I finally have a better understanding WHY certain investments performed the way they did, rather than just looking at a historical chart and surmising that it will repeat itself. This has allowed me to settle in and quit shuffling things around! In the words of Charlie Munger:

"In fact you can argue that if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get compared to the people who do have the temperament, who can be more philosophical about these market fluctuations.”

[plantingourpennies]

Berkshire Shareholder Letters: http://www.berkshirehathaway.com/letters/letters.html
Buffett Partnerhsip letters (these predate his acquisition of BRK) http://www.rbcpa.com/WEB_letters/WEB_Le ... shire.html

For the last 2 years a small group (about 6 people) from the FI community attend the BRK annual meeting in Omaha.

This year, myself, DW, Mr. 1500 and his wife are all confirmed-we'd love for anybody from the ERE forums to join us!

Last year we had a dinner together, and met with some folks from the MMM forums.

[BlueNote]

Awesome thank you for the links! I was wondering if the letters affect the way you have invested? @J_L13, @BlueNote

Yes there was definitely an influence. I have changed investing strategies over the years , trying to find the best fit for my personal circumstances. However Berkshire Hathaway stock remains the only individual company I have been invested in over the last 3-4 years. I am really comfortable with that business, and he has done an excellent job of laying out the risks to potential business owners through his annual reports.

I thought I would get more investing advice when I started reading the reports but I was more affected by his personal style and the way he conducted business then the investing advice. I think a lot of his later success stemmed from the fact that he has a ton of integrity. His integrity and personal ethics are so strong that they are part of the culture and brand of the company. It's what allows him to buy fantastic whole businesses and keep the tenured excellent management intact.

He also pointed me towards Charlie Munger whom was equally influential on me.

[JL13]

This year, myself, DW, Mr. 1500 and his wife are all confirmed-we'd love for anybody from the ERE forums to join us!

I'd love to go, but hotels and airlines are gouging prices this year! Are you flying into KCI? If so we can split a car if convenient. How are you handling lodging?

[plantingourpennies]

This year, myself, DW, Mr. 1500 and his wife are all confirmed-we'd love for anybody from the ERE forums to join us!

I'd love to go, but hotels and airlines are gouging prices this year! Are you flying into KCI? If so we can split a car if convenient. How are you handling lodging?

Yes, prices have been going up. We're flying into Omaha, but splitting a place that we found through the MMM boards. We've used Air BnB in the past and been happy. If you stay in the downtown area you can walk around very easily.

[JL13]

I'm going to try couchsurfing again this year - would love to meet up though.

Last year I met up with some friends for Sushi on the lunch break and was an hour late getting back - what do you usually do? Pack a lunch?

[Ydobon]

I read the other day that they are streaming it on Yahoo this year - even cheaper

[JL13]

Yes! Quite happy about this!