10 Valuable Lessons In Warren Buffett’s

Once again, Warren Buffett’s letter to Berkshire Hathaway’s shareholders was publicly released. Our tradition has been to sift through his letters, looking beyond the company’s fourth-quarter and full-year earnings results to analyze Buffett’s golden nuggets. We found valuable lessons in this letter.

This Year’s Letter To Shareholders

This Year’s Letter Is A Report Card of Sorts Warren Buffett’s writing always feels like he is speaking directly to you, the individual investor, to understand his stalwart company, Berkshire Hathaway. The letter dispels any notion that Warren Buffett, at age 92, and Charlie Munger, at 99, plan to leave soon if they can help it.

Berkshire’s Shareholders Are Dedicated Savers Buffett and Munger manage the savings of their shareholders, many of whom are “once-a-saver, always-a-saver” who retain their Berkshire Hathaway stock until their estate donates to philanthropic organizations that use funds to improve the lives of people in need.

The Company’s Businesses Non-controlled ownership by buying publicly traded stocks representing passively owned businesses in that management doesn’t have active involvement. Buffett says, “It’s crucial to understand that stocks often trade at truly foolish prices, both high and low.

Collection of Businesses, Capitalism, And Ethical Conduct BH’s extensive collection of companies falls into three categories. A few enterprises are extraordinary businesses that perform well in any economy; many have very good economic characteristics, but a large group is marginal.

A Report Card After 58 years Has the Secret Sauce Buffett provided a report card for his 58 years of Berkshire management, saying that most of his capital-allocation decisions “have been no better than so-so.” On the other hand, Berkshire’s satisfactory results come from about a dozen good decisions or about one every five years, paralleling the need to be patient long-term investors in Berkshire.

Maintains Strong Liquidity Berkshire’s balance sheet is over $128 billion of cash and cash equivalents in 2022, down from $144 billion in 2021 due to a few acquisitions, including new stakes. Berkshire “will always hold a boatload of cash and US Treasury bills.”

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