沃伦·巴菲特

Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are…

Institutional dynamics, not venality or stupidity, set businesses on these courses, which are too often misguided.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Operating earnings in 1977 of $21,904,000, or $22.54 per share, were moderately better than anticipated a year ago. Of these earnings, $1.43 per…

Most companies define “record” earnings as a new high in earnings per share. Since businesses customarily add from year to year to their equity base,…

Except for special cases (for example, companies with unusual debt-equity ratios or those with important assets carried at unrealistic balance…

We expect difficulty in matching our 1977 rate of return during the forthcoming year. Beginning equity capital is up 23% from a year ago, and we…

This full consolidation of sales, expenses, receivables, inventories, debt, etc. produces an aggregation of figures from many diverse businesses -…

With that preamble it can be stated that, with or without restated figures, 1978 was a good year. Operating earnings, exclusive of capital gains,…

For example, over the last three years - generally a bonanza period for the insurance industry, our largest profit producer - Berkshire’s per share…

In contrast to this cautious view about near term return from operations, we are optimistic about prospects for long term return from major equity…

Again, we must lead off with a few words about accounting. Since our last annual report, the accounting profession has decided that equity securities…

As you know, Blue Chip Stamps, our 60% owned subsidiary, is fully consolidated in Berkshire Hathaway’s financial statements. However, Blue Chip still…

We continue to feel that the ratio of operating earnings (before securities gains or losses) to shareholders’ equity with all securities valued at…

Measuring such results against shareholders’ equity with securities valued at market could significantly distort the operating performance percentage…

Operating earnings improved to $41.9 million in 1980 from $36.0 million in 1979, but return on beginning equity capital (with securities valued at…

Generally accepted accounting principles require (subject to exceptions, naturally, as with our former bank subsidiary) full consolidation of sales,…

Full inclusion of underlying earnings from another class of holdings, companies owned 20% to 50% (usually called “investees”), also normally occurs.…

Finally come holdings representing less than 20% ownership of another corporation’s voting securities. In these cases, accounting rules dictate…

Operating earnings of $39.7 million in 1981 amounted to 15.2% of beginning equity capital (valuing securities at cost) compared to 17.8% in 1980. Our…

In the 1980 annual report we discussed extensively the concept of non-controlled ownership earnings, i.e., Berkshire’s share of the undistributed…

However, our belief is that, in aggregate, those undistributed and, therefore, unrecorded earnings will be translated into tangible value for…

We know that this translation of non-controlled ownership earnings into corresponding realized and unrealized capital gains for Berkshire will be…

Operating earnings of $31.5 million in 1982 amounted to only 9.8% of beginning equity capital (valuing securities at cost), down from 15.2% in 1981…

(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a…

It was only a few years ago that we told you that the operating earnings/equity capital percentage, with proper allowance for a few other variables,…

To managers faced with such deterioration, a more flexible measurement system often suggests itself: just shoot the arrow of business performance…

o Our long-term economic goal (subject to some qualifications mentioned later) is to maximize the average annual rate of gain in intrinsic business…

o Our preference would be to reach this goal by directly owning a diversified group of businesses that generate cash and consistently earn…

o Because of this two-pronged approach to business ownership and because of the limitations of conventional accounting, consolidated reported…

o Accounting consequences do not influence our operating or capital-allocation decisions. When acquisition costs are similar, we much prefer to…

Our gain in net worth during 1984 was $152.6 million, or $133 per share. This sounds pretty good but actually it’s mediocre. Economic gains must be…

As we discussed last year, the gain in per-share intrinsic business value is the economic measurement that really counts. But calculations of…

Using my academic voice, I have told you in the past of the drag that a mushrooming capital base exerts upon rates of return. Unfortunately, my…

The table on the following page shows the sources of Berkshire’s reported earnings. Berkshire’s net ownership interest in many of the constituent…

You may remember the wildly upbeat message of last year’s report: nothing much was in the works but our experience had been that something big popped…

Two factors make anything approaching this rate of gain unachievable in the future. One factor probably transitory - is a stock market that offers…

This change in the market also has negative implications for our present portfolio. In our 1974 annual report I could say: “We consider several of…

The second negative factor, far more telling, is our size. Our equity capital is more than twenty times what it was only ten years ago. And an iron…

In past reports I have noted that book value at most companies differs widely from intrinsic business value - the number that really counts for…

The good news is that in 1986 our percentage gain in business value probably exceeded the book value gain. I say "probably" because business value is…

A large measure of our improvement in business value relative to book value reflects the outstanding performance of key managers at our major…

So much for the good news. The bad news is that my performance did not match that of our managers. While they were doing a superb job in running…

What counts, of course, is the rate of gain in per-share business value, not book value. In many cases, a corporation's book value and business value…

At Berkshire, however, my appraisal of our operating managers is, if anything, understated. To understand why, first take a look at page 7, where…

By itself, this figure says nothing about economic performance. To evaluate that, we must know how much total capital - debt and equity - was…

If these seven business units had operated as a single company, their 1987 after-tax earnings would have been approximately $100 million - a return…

We’ve emphasized in past reports that what counts, however, is intrinsic business value - the figure, necessarily an estimate, indicating what all of…

Berkshire’s past rates of gain in both book value and business value were achieved under circumstances far different from those that now exist.…

Important negatives affecting our prospects today are: (1) a less attractive stock market than generally existed over the past 24 years; (2) higher…

As a partial offset to the drag that our growing capital base exerts upon returns, we have a very important advantage now that we lacked 24 years ago…

What counts, however, is intrinsic value - the figure indicating what all of our constituent businesses are rationally worth. With perfect foresight,…

Back when Berkshire's book value was $19.46, intrinsic value was somewhat less because the book value was entirely tied up in a textile business…

The rear-view mirror is one thing; the windshield is another. A large portion of our book value is represented by equity securities that, with…

We will keep most of our major holdings, regardless of how they are priced relative to intrinsic business value. This 'til- death-do-us-part attitude…

Last year we made a prediction: "A reduction [in Berkshire's net worth] is almost certain in at least one of the next three years." During much of…

Our growth rate was lackluster in 1990 because our four major common stock holdings, in aggregate, showed little change in market value. Last year…

Berkshire's 26-year record is meaningless in forecasting future results; so also, we hope, is the one-year record. We continue to aim for a 15%…

If we do attain that 15% average, our shareholders should fare well. However, Berkshire's corporate gains will produce an identical gain for a…

The size of our equity capital - which now totals $7.4 billion - makes it certain that we cannot maintain our past rate of gain or, for that matter,…