Happy last Saturday in Feb!
It’s Warren Buffett’s annual letter - a chance to learn.
An oddly quiet year amidst the chaos, for $BRK. Sometimes it’s your job to simply keep your head when those around you are losing theirs.
I’ll add thoughts below later.
berkshirehathaway.com/letters/2020lt…
It’s Warren Buffett’s annual letter - a chance to learn.
An oddly quiet year amidst the chaos, for $BRK. Sometimes it’s your job to simply keep your head when those around you are losing theirs.
I’ll add thoughts below later.
berkshirehathaway.com/letters/2020lt…
Let’s get started.
Coffee + Wisdom shared by masters. I will thread highlights below: 👇👇
Coffee + Wisdom shared by masters. I will thread highlights below: 👇👇
Berkshire’s resilience shines:
“We did, though, increase Berkshire’s per-share intrinsic value by both retaining earnings and repurchasing about 5% of our shares.”
Rare to see a CEO state unequivocally that IVPS grew. Frankly, it’s rare to even mention IVPS.
“We did, though, increase Berkshire’s per-share intrinsic value by both retaining earnings and repurchasing about 5% of our shares.”
Rare to see a CEO state unequivocally that IVPS grew. Frankly, it’s rare to even mention IVPS.
Mistakes were made:
“The ugly $11 billion write-down is almost entirely the quantification of a mistake I made in 2016. That yr, BRK purchased Precision Castparts. I paid too much.”
No one misled me – I was too optimistic.
PCC is far from my first error. But it’s a big one.”
“The ugly $11 billion write-down is almost entirely the quantification of a mistake I made in 2016. That yr, BRK purchased Precision Castparts. I paid too much.”
No one misled me – I was too optimistic.
PCC is far from my first error. But it’s a big one.”
While describing the conglomerate train wreck of the 1960s & 70s era, it’s as if he’s describing SPACs:
“I’ll pay you $10,000 for your dog by giving you two of my $5,000 cats.”
“Most of the truly great businesses had no interest in having anyone take them over.”
“I’ll pay you $10,000 for your dog by giving you two of my $5,000 cats.”
“Most of the truly great businesses had no interest in having anyone take them over.”
https://twitter.com/compound248/status/1360989297126612996
More on conglomerates (SPACs?):
“Consequently, deal-hungry conglomerateurs focus on so-so companies that lacked important and durable competitive strengths. That was not a great pond in which to fish... often paying staggering ‘control’ premiums to snare their quarry.”
“Consequently, deal-hungry conglomerateurs focus on so-so companies that lacked important and durable competitive strengths. That was not a great pond in which to fish... often paying staggering ‘control’ premiums to snare their quarry.”
Convince me he’s not talking SPACs:
“The party ends: many ‘emperors’ are found to have no clothes. History is replete w/ names of famous conglomerateurs, lionized as business geniuses, whose creations ended up as biz junkyards.
“Conglomerates earned their terrible reputation.”
“The party ends: many ‘emperors’ are found to have no clothes. History is replete w/ names of famous conglomerateurs, lionized as business geniuses, whose creations ended up as biz junkyards.
“Conglomerates earned their terrible reputation.”
Buybacks Done Right:
“We demonstrated our enthusiasm for BRK’s spread of properties by spending $24.7 billion [on buyback, increasing]. Your ownership in all of BRK’s businesses by 5.2%.
“BRK has repurchased more shares in ‘21 & is likely to continue in the future.”
“We demonstrated our enthusiasm for BRK’s spread of properties by spending $24.7 billion [on buyback, increasing]. Your ownership in all of BRK’s businesses by 5.2%.
“BRK has repurchased more shares in ‘21 & is likely to continue in the future.”
Fun Fact 1:
Berkshire has more US-based PP&E (capital investment) than any other company. AT&T is a distant second.
Berkshire has more US-based PP&E (capital investment) than any other company. AT&T is a distant second.
Fun Fact 2:
Berkshire’s BNSF railroad operation is comprised of 390 antecedents. 170 years after its 1850 founding, the industry has consolidated to a healthy state (this really completed two decades ago).
Berkshire’s BNSF railroad operation is comprised of 390 antecedents. 170 years after its 1850 founding, the industry has consolidated to a healthy state (this really completed two decades ago).
$BRK’s Top Fifteen public stock positions (16 if you include $KHC).
Hubba hubba 🍎 :
Hubba hubba 🍎 :
On pages 8-12, Warren takes us on a tour of America, and the serendipity of meeting amazing business people (Jack Ringwalt, Mrs. B, the Claytons, Leo Goodwin) and discovering amazing businesses (See’s). It’s the most charming section of the letter.
On that tour, WEB connects the dots to his fund & Charlie Munger’s fund in the 60s, taking control of $BRK, and his shareholders today, bucketing them into various groups, including “partners.” This is what really matters to him.
What a life he’s led.
What a life he’s led.
The Dog that Didn’t Bark?
Nary a word on COVID.
Nary a word on COVID.
Brass Tacks:
Another digital annual meeting, but this year in Los Angeles, with Charlie on stage beside Warren.
Back together. As it should be.
Another digital annual meeting, but this year in Los Angeles, with Charlie on stage beside Warren.
Back together. As it should be.
[I lightly edited many quotes to make them fit in Tweets. I tried to maintain his intent and voice.]
• • •
Missing some Tweet in this thread? You can try to
force a refresh
