Warren Buffett released the Bershire Hathaway Inc. annual letter to shareholders over the weekend and for investors, and business owners alike, he delivered some value nuggets.
This was absolutely one of my favorites:
Berkshire will forever remain a financial fortress. In managing, I will make expensive mistakes of commission and will also miss many opportunities, some of which should have been obvious to me. At times, our stock will tumble as investors flee from equities. But I will never risk getting caught short of cash.
I read the shareholder letter annually for a few reasons. I think Warren is a great storyteller; I think he’d make a great author. I also appreciate the history of his insight and the steadiness of his wisdom. That’s rare if you follow the financial markets, which he will unabashedly tell you.
Here’s a list of additional value nuggets I’m taking with me:
- A financial fortress never risks getting caught short on cash.
- Attractive assets is the game.
- The engine propelling growth.
- Groves and the forest.
- Truly good businesses are exceptionally rare.
- The whole is greater – considerably greater – than the sum of the parts.
- In most cases the funding of a business comes from two sources; $BRK-A has four.
- Riding The American Tailwind.
I found this year’s letter to be quite nice and full of good fruits. If you’re a business owner, I encourage you to read it. 🙂