Adam Smith:The Wealth of Nations, Book IV, Chapter III, Paragraph 1105
Adam Smith《The Wealth of Nations》· Book IV, Chapter III · Investing
Before 1609, the great quantity of clipt and worn foreign coin which the extensive trade of Amsterdam brought from all parts of Europe, reduced the value of its currency about nine per cent. below that of good money fresh from the mint. Such money no sooner appeared, than it was melted down or carried away, as it always is in such circumstances. The merchants, with plenty of currency, could not always find a sufficient quantity of good money to pay their bills of exchange; and the value of those bills, in spite of several regulations which were made to prevent it, became in a great measure uncertain.
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 and far below our recent high of 19.4% in 1978. This decline largely…
We know that this translation of non-controlled ownership earnings into corresponding realized and unrealized capital gains for Berkshire will be extremely irregular as to time of occurrence. While market values track…
Bezos defines success by long-term shareholder value, not short-term earnings.
Context
From Amazon's first shareholder letter. Bezos put long-term market leadership ahead of short-term profit, and attached the letter to later annual reports.
Today's question
If only the three-year outcome counted, which decision would you change today?
We know that this translation of non-controlled ownership earnings into corresponding realized and unrealized capital gains for Berkshire will be extremely irregular as to time of occurrence. While market values track…
John D. Rockefeller:Random Reminiscences of Men and Events, Excerpt 42
John D. Rockefeller《Random Reminiscences of Men and Events》· Chapter II · Leadership
The situation seemed very serious; my partner was impatient with me for refusing to yield, and in this dilemma I decided to go personally to see if I could not induce our customer to relent. I had been unusually fortunate when I came face to face with men in winning their friendship, and my partner's displeasure put me on my mettle. I felt that when I got into touch with this gentleman I could convince him that what he proposed would result in a bad precedent. My reasoning (in my own mind) was logical and convincing. I went to see him, and put forth all the arguments that I had so carefully thought out. But he stormed about, and in the end I had the further humiliation of confessing to my partner that I had failed. I had been able to accomplish absolutely nothing.
We know that this translation of non-controlled ownership earnings into corresponding realized and unrealized capital gains for Berkshire will be extremely irregular as to time of occurrence. While market values track…