Warren Buffett’s Letters
The full collection of Buffett’s and Munger’s annual letters — click to read summaries and full versions.
A complete archive of Warren Buffett’s and Charlie Munger’s annual shareholder letters — timeless wisdom, investment principles, and life lessons from the greatest partnership in business history.
For shareholders and others who are interested, a book that compiles the full unedited versions of each of Warren Buffett’s letters to shareholders between 1965 and 2014 is available for sale at this link.
Berkshire Hathaway Annual Shareholder Letters
2025: Be Responsible, and Let Your Character Matter
In his letter released November 10, 2025, Warren Buffett announces that he will step back from writing Berkshire’s annual report and focus on more personal reflections and philanthropy. He urges shareholders — especially those building long-term wealth like our MaxDividends audience — to decide what they want their legacy to say and then live accordingly, stressing that greatness comes not from money but from kindness, using your position to help others. His advice: don’t let past mistakes weigh you down, choose heroes worth emulating, and invest in kindness as much as in companies.
https://www.berkshirehathaway.com/news/nov1025.pdf
2024: Stay Invested in Great Businesses — and Let Them Compound
Buffett explains that 2024 was a mixed year for Berkshire’s operating businesses, but strong investment income and insurance results kept the company on solid footing. He reminds shareholders that long-term wealth is built by owning great businesses — not by sitting in cash or trying to outsmart short-term cycles. His core advice is simple: stay disciplined, stay invested, and let high-quality companies do the compounding for you.
https://www.berkshirehathaway.com/letters/2024ltr.pdf
2023: Invest in Wonderful Businesses – Stay Long, Stay Sure
In his 2023 letter, Warren Buffett emphasises the importance of owning truly great businesses and holding them for the long haul — rather than chasing short-term gains. He pays tribute to his late partner Charlie Munger, recognising the value of sound judgment and disciplined leadership. His advice to the investor: be picky about quality, stay patient, and let compounding do its work over decades.
https://www.berkshirehathaway.com/letters/2023ltr.pdf
2022: Focus on Quality Ownership — Ignore the Noise
In his 2022 letter, Buffett reminds long-term savers that their investments are being managed for the adult lifetime, not for short-term thrills. He emphasises that owning genuinely great businesses and holding them indefinitely matters far more than trading or market timing. His advice: pick the right companies, hold firm with discipline, and let your faith in real businesses—not hype—carry the compound growth.
https://www.berkshirehathaway.com/letters/2022ltr.pdf
2021: Never Bet Against America — Focus on the Long Game
In his 2021 letter, Buffett reminds us that despite the ups and downs, he retains long-term confidence in the United States and its economic engine. He stresses that for investors over 45+, the key remains owning durable, understandable businesses—not chasing the latest trend or timing markets. His advice: be patient, maintain discipline, modestly invest in what you know, and remember that your horizon is decades, not days.
https://www.berkshirehathaway.com/letters/2021ltr.pdf
2020: Own Wonderful Businesses and Let Them Grow While You Wait
In his 2020 letter, Buffett highlights that while Berkshire Hathaway Inc. faced a challenging year with operating earnings down, smart repurchases and retained earnings kept value growing for long-term owners. He underlines the importance of owning great businesses — even just a non-controlling share of them — rather than managing mediocre ones yourself. His advice: stick with quality, don’t chase hype, and give your investments time to compound.
https://www.berkshirehathaway.com/letters/2020ltr.pdf
2019: Focus on Operating Earnings, Not Market Noise
In his 2019 letter, Buffett emphasizes that the key indicator for long-term investors is consistent operating earnings rather than volatile investment results or accounting changes. He reminds shareholders that the true value of their holdings lies in the businesses’ earning power over decades—not in short-term market moves. His advice: stay invested in high-quality companies, ignore the daily market noise, and let compounding do its work.
https://www.berkshirehathaway.com/letters/2019ltr.pdf
2018: Ignore the Accounting Noise — Focus on Business Results
In his 2018 letter, Buffett points out that major swings in reported net income at Berkshire Hathaway Inc. don’t reflect the underlying health of its businesses, and he urges investors to focus on operating earnings instead. He highlights that despite volatile mark-to-market investment swings, the many companies Berkshire owns continued delivering steady earnings, reinforcing the value of owning real businesses over landscaping financial statements. His advice: don’t get distracted by accounting gimmicks or market noise — pick durable businesses, hold them, and let their performance do the talking.
https://www.berkshirehathaway.com/letters/2018ltr.pdf
2017: Focus on Earnings Power — Don’t Be Distracted by Accounting Changes
In his 2017 letter, Buffett highlights that a large portion of the year’s profit came from tax-law changes rather than underlying business improvements, and he urges investors to focus on the real operating earnings of the company. He explains that companies grow value through four main paths: buying big businesses, small bolt-on deals, organic growth at current units, and returns on public-stock investments. His advice: stay focused on business fundamentals, understand where earnings come from, and avoid getting sidetracked by headline numbers or accounting quirks.
https://www.berkshirehathaway.com/letters/2017ltr.pdf
2016: Let Great Businesses Compound—Don’t Rely on Stock Issuance
In his 2016 letter, Buffett underscores that real value comes from owning companies that generate steady, growing earnings—not from issuing shares or chasing deals. He shows how Berkshire Hathaway Inc.’s outstanding share count rose minimally over 18 years, emphasizing the importance of keeping existing owners’ interests intact. His advice: pick durable businesses, avoid diluting your ownership, and give your investments the time they need to compound.
https://www.berkshirehathaway.com/letters/2016ltr.pdf
2015: Build Durable Advantage and Avoid Risk — Stay the Course
In his 2015 letter, Buffett highlights how dear business units with low-cost structures give Berkshire Hathaway Inc. a long-term advantage, and how underwriting discipline in its insurance operations has been central to sustained growth. He warns that not all float is equal — the benefits of insurance-float shrink quickly if risk isn’t well managed — and stresses avoiding unnecessary risk even when opportunities appear tempting. His advice: focus on durable competitive advantages, manage risk diligently, and stay patient with your investments.
https://www.berkshirehathaway.com/letters/2015ltr.pdf
2014: Invest in Simple, Understandable Businesses — Let Time Do the Work
In his 2014 letter, Buffett reflects on 50 years of management at Berkshire Hathaway and emphasises that consistent success comes from owning businesses you understand and letting them compound over time. He advises that you don’t need to be an expert in everything — stay within your circle of competence, keep things simple, and avoid chasing complex deals or market fads. His key advice: pick good businesses, hold them for the long term, and let patience and discipline build your real results.
https://www.berkshirehathaway.com/letters/2014ltr.pdf
2013: Buy Businesses You Understand — Ignore Speculating on Price
In his 2013 letter, Buffett emphasises that successful investing doesn’t require being an expert — just buying businesses whose future earnings you can reasonably estimate. He warns against chasing price movements or making macro calls, saying that treating stocks like speculative bets generally doesn’t work. His advice: stay within your circle of competence, focus on business fundamentals, and let quality doing its work over time.
https://www.berkshirehathaway.com/letters/2013ltr.pdf
2012: Let Value Grow Under the Hood
In his 2012 letter, Buffett explains why Berkshire Hathaway Inc. continues to forgo paying dividends, choosing instead to reinvest earnings into high-return opportunities and share repurchases that benefit long-term owners. He underscores that he judges success by growth in intrinsic business value per share, rather than chasing headline numbers or short-term gains. His advice: stay invested for the long haul, avoid chasing dividend yield for its own sake, and focus on quality ownership and disciplined capital allocation.
https://www.berkshirehathaway.com/letters/2012ltr.pdf
2011: Focus on Business Quality and Patience — Ignore the Market Hype
In his 2011 letter, Buffett reminds long-term investors that the simple act of owning enduring, understandable businesses matters far more than trying to time stocks or trade on headlines. He reflects on how the compound growth of book value over 46 years averaged about 19.8% per year, showing what patience and quality can do. His advice: stick with durable companies you understand, don’t get swayed by market noise, and let time work in your favor.
https://www.berkshirehathaway.com/letters/2011ltr.pdf
2010: Own Excellent Businesses — Let Their Earnings Tell the Story
In his 2010 letter, Buffett explains that the standout event of the year was the acquisition of Burlington Northern Santa Fe Railway (BNSF), which he expects to boost the company’s earning power by more than 30% after tax. He emphasises that long-term value comes from owning strong, understandable businesses and letting them compound rather than chasing market fluctuations. His advice: be selective about what you own, hold firm through uncertainty, and let the underlying business performance drive your returns.
https://www.berkshirehathaway.com/letters/2010ltr.pdf
2009: Stick With Quality Businesses — Especially in Tough Times
In his 2009 letter, Buffett reflects on how the economic crisis hit many businesses hard but stresses that Berkshire’s sound operating companies continued to generate value despite market chaos. He highlights that long-term investment success comes from owning great businesses and holding them through periods of uncertainty — not from timing the market. His advice: stay focused on durable companies you understand, be patient during setbacks, and let compounding do its work while others worry.
https://www.berkshirehathaway.com/letters/2009ltr.pdf
2008: Be Fearful When Others Are Greedy — Stay Focused on Business Quality
In his 2008 letter, Buffett acknowledges that the year was one of the worst in Berkshire’s history as book value declined, but he emphasizes the importance of owning strong businesses rather than reacting to panic. He highlights how many financial institutions suffered from shortsighted lending and frothy assumptions, whereas Berkshire’s conservative subsidiaries stood up much better. His advice: stay disciplined, avoid the herd mentality, prioritise durable business models and let long-term compounding work its magic.
https://www.berkshirehathaway.com/letters/2008ltr.pdf
2007: Stick to Understandable Businesses — Don’t Believe the Accounting Hype
In his 2007 letter, Buffett stresses that true value comes from owning businesses you understand — and warns that accounting tricks and overly optimistic assumptions (“moats” that must be rebuilt constantly, pension return assumptions, etc.) often mask risk. He points out that Berkshire’s success hinges not on flashy headline numbers, but on durable earnings from real operating companies and sound underwriting in insurance. His advice: stay disciplined, stick to companies with clear business models, avoid overpaying or chasing complex ideas, and focus on long-term returns not short-term noise.
https://www.berkshirehathaway.com/letters/2007ltr.pdf
2006: Don’t Chase the Hype — Own Businesses with Real Durability
In his 2006 letter, Buffett highlights that not every industry will thrive forever, reminding investors that some businesses inevitably decline and that spotting durability matters more than catching trends. He emphasises Berkshire’s focus on acquiring well-managed companies with sustainable advantages and being patient with their compounding over time. His advice: invest in businesses you understand, avoid industries with eroding economics, and stay committed for the long haul.
https://www.berkshirehathaway.com/letters/2006ltr.pdf
2005: Avoid Leverage, Focus on Value and Patience
In his 2005 letter, Buffett explains that although Berkshire Hathaway saw modest growth in net worth that year, the company remained cautious with debt—using it only in very limited, clear-cut situations. He reflects on the big cash balance sitting idle due to a lack of attractive acquisition opportunities, reminding investors that not acting is often better than acting badly. His advice: hold strong businesses you understand, resist the pressure to invest for the sake of growth, and wait patiently for proper value.
https://www.berkshirehathaway.com/letters/2005ltr.pdf
2004: Choose Managers and Businesses You Trust — Let Capital Grow Quietly
Buffett’s 2004 letter emphasizes that the most important questions for long‐term investors are whether a company has the right leader, whether his compensation is reasonable, and whether proposed acquisitions will add or destroy per‐share value. He outlines how Berkshire’s sizable holdings in four major companies have steadily grown their earnings and distributions, showing the power of patient ownership rather than flashy deals. His advice: invest only in businesses you and your leadership team comprehend and trust, avoid rushing into uncertain acquisitions, and let well-chosen companies compound quietly over time.
https://www.berkshirehathaway.com/letters/2004ltr.pdf
2003: Understand the Risk of Complex Financial Products — Stick With What You Know
In his 2003 letter, Buffett warns that derivatives and other complex financial instruments can hide huge risks, even when the math looks neatly wrapped. He highlights how Berkshire’s crisis-proof operating businesses continued to generate solid cash flow, while many financial firms faltered under opaque obligations. His advice: stay within your circle of competence, avoid investments you don’t fully understand, and prioritize reliability over flash.
https://www.berkshirehathaway.com/letters/2003.html
2002: Pick Businesses With Enduring Value — And Keep Boards Honest
In his 2002 letter, Buffett highlights that 2002 was a standout year for the non-insurance operations at Berkshire, reinforcing that actual business performance matters more than market sentiment. He also calls out issues in corporate governance – directors who don’t challenge management, exec-pay that isn’t tied to real results, and accounting tricks that mask risk. His advice for long-term investors: buy companies with strong fundamentals, demand accountability from leadership, and stay patient for true compounding to work.
https://www.berkshirehathaway.com/letters/2002.html
2001: Be Prepared for the Unexpected — Stay in Safe, Understandable Businesses
In his 2001 letter, Buffett discusses how the events of September 11 and the broader economic downturn hit Berkshire Hathaway Inc. hard, with a decline in net worth and heavy losses in insurance operations. He uses the experience as a reminder that risk lies not just in what you buy, but in what you don’t understand — especially in industries prone to sudden disruption. His advice: stay within your circle of competence, invest in businesses you truly grasp, and build a portfolio that can survive shocks you didn’t see coming.
https://www.berkshirehathaway.com/letters/2001.html
2000: Stay Within Your Circle of Competence — Avoid the Lure of Unfamiliar Deals
In his 2000 letter, Buffett notes that Berkshire Hathaway’s book value grew 6.5% that year, illustrating modest results but stable progress. He emphasises that smart investments come from businesses you understand deeply, rather than chasing complex or unfamiliar deals. His advice: stick to what you know, resist being swayed by flashy opportunities outside your knowledge zone, and let time and business quality do the heavy lifting.
https://www.berkshirehathaway.com/letters/2000.html
1999: Value Comes From Owning Businesses, Not Chasing Headlines
In his 1999 letter, Buffett explains that Berkshire’s net worth rose only modestly during the year, reminding investors that the compounding of real businesses is a slow but sure process. He warns that focusing on stock-market chatter or fads can divert attention from what matters: the quality and earnings power of the underlying companies. His advice: invest in enterprises you understand, stay patient through the noise, and let time and business quality do the heavy lifting.
https://www.berkshirehathaway.com/letters/1999.html
1998: Acquire Excellent Businesses — Don’t Let The Deal Be the Driver
In his 1998 letter, Buffett reports a 48.3% increase in per-share book value and explores how the merger with General Re Corporation fits into Berkshire’s strategy of acquiring strong, well-managed companies with durable competitive advantages. He cautions that deals must enhance future earnings and shareholder value — not just look impressive on a spreadsheet — stressing the importance of underwriting discipline in insurance operations. His advice: focus on finding businesses you understand, make sure the price allows for future growth, and let patient ownership do the heavy lifting.
https://www.berkshirehathaway.com/letters/1998.html
1997: Don’t Mistake Strong Markets for Great Investing
In his 1997 letter, Buffett reminds investors that while Berkshire Hathaway Inc.’s per-share book value rose a healthy 34.1%, strong market conditions boost many ships, so relying solely on book value gains is risky. He emphasises that intrinsic business strength—not just accounting or market tailwinds—should drive investment decisions. His advice: focus on the earnings power of real businesses, stay cautious when valuations run hot, and invest only in companies you understand and trust.
https://www.berkshirehathaway.com/letters/1997.html
1996: Buy Businesses With Durable Advantages — Don’t Be Seduced by Trends
In his 1996 letter, Buffett emphasizes that owning companies in industries unlikely to change dramatically offers the strongest long-term investment foundation. He cautions against getting caught up in speculative industries or transient trends, asserting that predictable, understandable business models are the key. His advice: focus on acquiring durable businesses you truly understand, stay disciplined in capital allocation, and let time and quality do the heavy lifting.
https://www.berkshirehathaway.com/letters/1996.html
1995: Use Strength from Quality Underwriting and Cost Discipline to Your Advantage
In his 1995 letter, Buffett highlights that Berkshire Hathaway’s net worth grew 45% thanks to underwriting discipline in insurance operations and strong cost control across its businesses. He stresses that financial strength and the ability to act quickly give the company an edge in seizing opportunities no one else can. His advice: invest in well-run businesses with robust cash-flows, avoid excessive risk, and let time amplify your returns rather than chasing shortcuts.
https://www.berkshirehathaway.com/letters/1995.html
1994: Master Capital Allocation — Only Buy Businesses That Add Real Value
In his 1994 letter, Buffett underscores that Berkshire Hathaway’s net worth rose 13.9% that year, but cautions that growth in size makes it harder to find needle-moving opportunities and that management must remain disciplined. He stresses that acquisitions and capital deployments must earn more than the cost of capital — and warns that poor deals, excessive CEO incentives, and weak governance destroy value. His advice: invest in businesses you understand, demand high returns on capital, avoid chasing deals for the sake of growth, and let time reward patient ownership.
https://www.berkshirehathaway.com/letters/1994.html
1993: Invest Only Where You Truly Understand the Business
In his 1993 letter, Buffett reminds long-term investors that real risk lies in not knowing what you own and buys only businesses you understand deeply. He chooses to concentrate capital in a small number of well-understood opportunities rather than diversify blindly, stressing that this focus can improve results and lower risk. His advice: stay within your circle of competence, avoid vague or complex investments, and let the power of time and quality compounding work for you.
https://www.berkshirehathaway.com/letters/1993.html
1992: Own High-Quality Businesses and Let Good Capital Allocation Matter
In his 1992 letter, Buffett explains how Berkshire’s insurance-float has become a source of virtually permanent capital, which the company uses to invest in stable, understandable businesses. He stresses that the rate at which float is deployed (its “cost”) matters greatly, and that owning well-managed companies with solid operations is what delivers real long-term value. His advice: focus on companies with strong fundamentals, avoid financial gimmicks or opaque risks, and let time and thoughtful capital allocation compound your gains.
https://www.berkshirehathaway.com/letters/1992.html
1991: Invest in Businesses You Understand — Ignore the Noise
In his 1991 letter, Buffett emphasises that real investment success comes from owning businesses with clear economics, capable management, and sensible valuation, rather than chasing complex deals or market hype. He warns that dividends, stock-market fluctuations and fancy accounting can mislead — what matters is the underlying earnings power of quality businesses. His advice: stay within your circle of competence, value businesses properly, demand honest leadership, and let time work for you.
https://www.berkshirehathaway.com/letters/1991.html
1990: Emphasize Business Quality Over Market Flashes
In his 1990 letter, Buffett reminds long-term investors that the true test is owning companies with enduring competitive advantages rather than chasing hot industries or short-term hype. He argues that real value comes from predictable earnings, sensible management, and staying discipline through market ups and downs. His advice: focus on the businesses themselves, avoid speculative swings, and let time work in your favor.
https://www.berkshirehathaway.com/letters/1990.html
1989: Buy Wonderful Companies at Fair Prices — and Let Time Do the Work
In his 1989 letter, Buffett stresses that intrinsic value — what a business is truly worth — matters far more than fancy accounting or market noise. He reminds investors that patience, owning quality businesses, and avoiding overpaying are the real drivers of long-term results. His advice: focus on companies you understand, buy them at fair prices, sit tight, and let the compounding of business value do the heavy lifting for you.
https://www.berkshirehathaway.com/letters/1989.html
1988: Focus on Owner-Oriented Businesses — Avoid Accounting Smoke & Mirrors
In his 1988 letter, Buffett emphasises that true returns come from owning operating businesses with clear value, not from chasing financial engineering or accounting tricks. He cautions investors to scrutinise disclosures and encourages a partnership mindset—he and his team view shareholders as co-owners, not mere clients. His advice: invest in companies you understand well, demand transparency and alignment with your interests, and stay patient for compounding to work its magic.
https://www.berkshirehathaway.com/letters/1988.html
1987: Invest in Businesses With Consistent Earnings and Ignore Market Hype
In his 1987 letter, Buffett highlights that Berkshire’s net worth rose 19.5% that year and that over 23 years the company achieved a 23.1% annual growth in book value, showing the power of compounding for long-term owners. He emphasises that true investment returns come from businesses with steady earnings, high returns on equity, and predictable performance — rather than chasing trendy or volatile industries. His advice: focus on companies whose results you can understand and count on, stay patient through short-term market swings, and let time work its magic.
https://www.berkshirehathaway.com/letters/1987.html
1986: Choose Businesses with Durable Value — Avoid Commodities & Fads
In his 1986 letter, Buffett emphasizes that true investment returns come from owning companies with long-term competitive advantages, not those driven by fleeting trends or commodity-based competition. He underscores that even solid capital allocation can’t save businesses in industries where profitability erodes quickly and unpredictably. His advice: focus on businesses you understand, steer clear of cyclical traps, and invest with the assumption you’ll own the business for decades.
https://www.berkshirehathaway.com/letters/1986.html
1985: Close the Mistakes — Move on from Businesses That Can’t Compete
In his 1985 letter, Buffett explains how Berkshire Hathaway Inc. finally shut down its struggling textile operations, admitting that it had been a poor‐performing, capital-draining business. He notes that even smart capital allocation can’t fix a fundamentally flawed industry or business model. His advice: recognise when a business cannot generate lasting returns, act decisively to exit or restructure, and focus your investments on companies with sustainable advantages.
https://www.berkshirehathaway.com/letters/1985.html
1984: Put Capital to Work in the Right Places — Don’t Let Earnings Sit Idle
In his 1984 letter, Buffett emphasises that a company’s worth is measured by the capital it allocates and the returns it earns — growth in earnings alone, without productive deployment of capital, is misleading. He explains why dividends, share buy-backs and insurance float all deserve scrutiny — not just as financial transactions, but as strategic decisions for long-term owners. His advice: invest only where capital can earn high returns, evaluate leadership on how they manage that capital, and steer clear of businesses that generate earnings but squander them.
https://www.berkshirehathaway.com/letters/1984.html
1983: Think Like an Owner — Choose Businesses You’d Want to Compete With
In his 1983 letter, Buffett emphasizes that ownership mindset means buying companies you’d be happy to acquire yourself, highlighting long-term value and durability over short-term gains. He warns against overpaying for businesses lacking competitive moats and reminds investors that intrinsic business value per share matters more than accounting goodwill. His advice: stay within your circle of competence, focus on enduring businesses with clear advantages, and let time be your partner.
https://www.berkshirehathaway.com/letters/1983.html
1982: Issue Only If You Get Real Value — Be Rigorous About Capital Deployment
In his 1982 letter, Buffett highlights that Berkshire Hathaway’s operating earnings dropped to only 9.8% of beginning equity capital, which underlines the importance of how earnings are used rather than just the number itself. He stresses that the company will never issue shares unless the intrinsic business value received is equal to or greater than the value given — a rare discipline in corporate America. His advice: focus on how companies allocate capital, refuse to accept weak business economics or dilution, and invest in businesses with clear, long-term value drivers rather than short-term gain.
https://www.berkshirehathaway.com/letters/1982.html
1981: Stick to Simple Businesses You Understand
In his 1981 letter, Buffett emphasises that investing successfully means owning businesses whose economics you can clearly grasp — rather than chasing complexity or high-falutin deals. He advises long-term investors to focus on the actual operating performance of a company, not just accounting variations or market hype. His core advice: choose understandable companies, demand the truth about how they make money, and stay committed for the long haul.
https://www.berkshirehathaway.com/letters/1981.html
1980: Make Smart Use of Capital, Not Just Big Earnings
In his 1980 letter, Buffett highlights that although operating earnings rose to $41.9 million, the return on equity fell to 17.8%, underscoring that growth alone isn’t enough without wise capital deployment. He explains that when you hold part‐stakes in other businesses the accounting treatment can mislead, so you must evaluate the economics yourself. His advice: focus on how capital is used, understand the true earnings behind book values, and invest in businesses you can trust for the long haul.
https://www.berkshirehathaway.com/letters/1980.html
1979: Be Wary of Bonds and Focus on Owners Who Think Like You
In his 1979 letter, Buffett warns that long-term fixed-rate bonds can be dangerous in an inflationary environment and advises caution when investing in any asset class simply because it’s popular. He highlights the value of businesses where management acts like owners, emphasising disciplined capital allocation and clear advantages. His advice: stick with companies led by owner-minded managers, avoid bets you don’t fully understand, and focus on enduring business fundamentals rather than market trends.
https://www.berkshirehathaway.com/letters/1979.html
1978: Avoid Speculation — Buy Businesses You Understand and Own Them Long-Term
In the 1978 letter, Buffett emphasizes that investing isn’t about chasing speculative trends but about owning solid businesses whose economics you understand well. He reminds long-term investors that patience and stability matter more than high short-term returns, and that the market’s ups and downs shouldn’t distract from underlying value. His advice: focus on businesses you can own for decades, avoid speculation, and let time do the compounding work for you.
https://www.berkshirehathaway.com/letters/1978.html
1977: Three Core Lessons
Warren Buffett’s 1977 letter highlights three big ideas every long-term investor should know. First, he stresses that Berkshire’s true performance is measured by return on equity — not by earnings-per-share tricks or accounting noise. Second, he openly admits that the textile business underperformed and that their expectations were simply wrong, showing the value of honesty and clear thinking. And finally, Buffett reminds shareholders that disciplined capital allocation, not industry hype, is what builds real wealth over time.
https://www.berkshirehathaway.com/letters/1977.html
Thank you, Mr. Buffett.