Warren Buffett just released his 58th shareholder letter.
Here are the most interesting quotes:
Here are the most interesting quotes:
On trust of their CEOs:
"When large enterprises are being managed, both trust and rules are essential...We are understanding about business mistakes; our tolerance for personal misconduct
is zero."
"When large enterprises are being managed, both trust and rules are essential...We are understanding about business mistakes; our tolerance for personal misconduct
is zero."
On Capitalism:
"Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services. Schumpeter called this phenomenon βcreative destruction.β
"Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services. Schumpeter called this phenomenon βcreative destruction.β
On efficient markets:
"Itβs crucial to understand that stocks often trade at truly foolish prices, both high and low. βEfficientβ markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect."
"Itβs crucial to understand that stocks often trade at truly foolish prices, both high and low. βEfficientβ markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect."
On buybacks ππππ
"When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)"
"When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)"
On Risk:
"Our CEO will always be the Chief Risk Officer β a task it is irresponsible to delegate. Additionally, our future CEOs will have a significant part of their net worth in Berkshire shares, bought with their own money."
"Our CEO will always be the Chief Risk Officer β a task it is irresponsible to delegate. Additionally, our future CEOs will have a significant part of their net worth in Berkshire shares, bought with their own money."
On time horizon (very Bezos-ian)
"At Berkshire, there will be no finish line."
"At Berkshire, there will be no finish line."
On taxes π€―π€―π€―
"And that means β brace yourself β had there been roughly 1,000 taxpayers in the U.S. matching Berkshireβs payments, no other businesses nor any of the countryβs 131 million households would have needed to pay any taxes to the federal government. Not a dime."
"And that means β brace yourself β had there been roughly 1,000 taxpayers in the U.S. matching Berkshireβs payments, no other businesses nor any of the countryβs 131 million households would have needed to pay any taxes to the federal government. Not a dime."
Loading suggestions...