Measuring such results against shareholders’ equity with securities valued at market could significantly distort the operating performance percentage because of wide year-to-year market value changes in the net worth…
Measuring such results against shareholders’ equity with securities valued at market could significantly distort the operating performance percentage because of wide year-to-year market value changes in the net worth…
Warren Buffett《Berkshire Hathaway 1988 Letter to Shareholders》· 1988 Chairman's Letter · Investing
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. Then, all our capital was tied up in a textile business with inescapably poor economic characteristics. Today part of our capital is invested in some really exceptional businesses.
Measuring such results against shareholders’ equity with securities valued at market could significantly distort the operating performance percentage because of wide year-to-year market value changes in the net worth…
Day 2 is stasis, then irrelevance, then painful decline, then death.
Context
From the 2016 letter. Bezos says a company must stay on 'Day 1': customer obsession, resisting proxies, embracing external trends, and high-velocity decisions.
Today's question
Which process at work has already slipped into Day 2 stasis?
Measuring such results against shareholders’ equity with securities valued at market could significantly distort the operating performance percentage because of wide year-to-year market value changes in the net worth…