In the 1980 annual report we discussed extensively the concept of non-controlled ownership earnings, i.e., Berkshire’s share of the undistributed earnings of companies we don’t control or significantly influence but…
In the 1980 annual report we discussed extensively the concept of non-controlled ownership earnings, i.e., Berkshire’s share of the undistributed earnings of companies we don’t control or significantly influence but…
Adam Smith:The Wealth of Nations, Book I, Chapter VIII, Paragraph 226
Adam Smith《The Wealth of Nations》· Book I, Chapter VIII · Investing
In years of scarcity, the difficulty and uncertainty of subsistence make all such people eager to return to service. But the high price of provisions, by diminishing the funds destined for the maintenance of servants, disposes masters rather to diminish than to increase the number of those they have. In dear years, too, poor independent workmen frequently consume the little stock with which they had used to supply themselves with the materials of their work, and are obliged to become journeymen for subsistence. More people want employment than easily get it; many are willing to take it upon lower terms than ordinary; and the wages of both servants and journeymen frequently sink in dear years.
However, our belief is that, in aggregate, those undistributed and, therefore, unrecorded earnings will be translated into tangible value for Berkshire shareholders just as surely as if subsidiaries we control had…
In the 1980 annual report we discussed extensively the concept of non-controlled ownership earnings, i.e., Berkshire’s share of the undistributed earnings of companies we don’t control or significantly influence but…
21:00 Figures · Investing · Modern investor letters
Warren Buffett:Berkshire 2022 Letter, Excerpt 1
Warren Buffett《Berkshire Hathaway 2022 Letter to Shareholders》· 2022 Chairman's Letter · Investing
Charlie and I allocate your savings at Berkshire between two related forms of ownership. First, we invest in businesses that we control, usually buying 100% of each. Berkshire directs capital allocation at these subsidiaries and selects the CEOs who make day-by-day operating decisions. When large enterprises are being managed, both trust and rules are essential. Berkshire emphasizes the former to an unusual – some would say extreme – degree. Disappointments are inevitable. We are understanding about business mistakes; our tolerance for personal misconduct is zero.