Legendary value investors' secrets
December 22, 2024
Berkshire Hathaway
What is the difference between Berkshire Hathaway A shares and B shares? Berkshire Hathaway chairman Warren Buffett said in a memo dated February 2, 1999 (updated on July 3, 2003 and on January 20, 2010) that Berkshire Hathaway Inc has two classes of common stock designated Class A and Class B. The memo makes it…
Read More about Berkshire Hathaway A and B sharesBerkshire Hathaway
Warren Buffett’s letter to Berkshire Hathaway shareholders (March 3, 1980) for Year 1999 gave readers a glimpse of Berkshire Hathaway’s listing. Here is a relevant excerpt: “During 1979, NASDAQ trading was initiated in the stock of Berkshire Hathaway. This means that the stock now is quoted on the Over-the-Counter page of the Wall Street journal under…
Read More about Tracing Berkshire Hathaway’s listingManagement
Warren Buffett is a great believer in succession planning. In his chairman’s letter (28 February 2006) to Berkshire Hathaway shareholders for Year 2005, he said: “As owners, you are naturally concerned about whether I will insist on continuing as CEO after I begin to fade and, if so, how the board will handle that problem….
Read More about How Warren Buffett handles management successionEarnings
Berkshire Hathaway’s belief in retaining earnings as a way to strengthen its business can be seen in this excerpt from Warren Buffett’s letter to shareholders (February 26, 2011) for Year 2010: “Furthermore, not a dime of cash has left Berkshire for dividends or share repurchases during the past 40 years. Instead, we have retained all…
Read More about Warren Buffett on retained earnings and repurchase programQuotes
“You only learn who has been swimming naked when the tide goes out…” This quote comes from Warren Buffett in his letter (February 2008) to Berkshire Hathaway shareholders for Year 2007. Mr Buffet was commenting on the woes facing financial institutions. Here is an excerpt: “Some major financial institutions have, however, experienced staggering problems because…
Read More about When financial institutions swim nakedVideos
(https://www.youtube.com/watch?t=11&v=2a9Lx9J8uSs) Event: Terry College of Business (University of George) Date: July 18, 2001
Read More about Warren Buffett speaks to University of Georgia studentsProfit performance measurement
In his letter to Berkshire Hathaway’s stockholders as far back as March 14, 1978 for FY2007, Warren Buffett has this to say about record earnings: “Most companies define “record” earnings as a new high in earnings per share. Since businesses customarily add from year to year to their equity base, we find nothing particularly noteworthy in a management performance…
Read More about Warren Buffett’s thoughts on record earningsManagement
Among Warren Buffett’s letters to Berkshire Hathaway stakeholders, one that gave shareholders a good summary of Berkshire Hathaway’s major business principles pertaining to the manager-owner relationship is that of March 14, 1984 for Year 1983. Here is a gist of the summary: * Although Berkshire Hathaway’s form is corporate, its attitude is partnership, treating shareholders as…
Read More about Berkshire Hathaway principles on manager-owner relationshipInvestment criteria
Warren Buffett goes for the long haul when it comes to marketable equity securities. As far back as March 14, 1978, he said in his FY1977 letter to stockholders of Berkshire Hathaway: “When prices are appropriate, we are willing to take very large positions in selected companies, not with any intention of taking control and…
Read More about Warren Buffett goes for the long haulWarren Buffett's thoughts
In his letter to Berkshire Hathaway shareholders (March 1, 1996) for Year 1995, Warren Buffett said: “A few years back, management consultants popularized a technique called “management by walking around” (MBWA). At Berkshire, we’ve instituted ABWA (acquisitions by walking around).” What is this ABWA that Mr Buffett was talking about? “In May 1994, a week…
Read More about ABWA – acquisitions by walking around