It’s per-share intrinsic value that counts, however, not book value. Here, the news is good: Between 1964 and 2004, Berkshire morphed from a struggling northern textile business whose intrinsic value was less than…
It’s per-share intrinsic value that counts, however, not book value. Here, the news is good: Between 1964 and 2004, Berkshire morphed from a struggling northern textile business whose intrinsic value was less than…
Warren Buffett《Berkshire Hathaway 1985 Letter to Shareholders》· 1985 Chairman's Letter · Investing
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 up occasionally. This carefully- crafted corporate strategy paid off in 1985. Later sections of this report discuss (a) our purchase of a major position in Capital Cities/ABC, (b) our acquisition of Scott & Fetzer, (c) our entry into a large, extended term participation in the insurance business of Fireman’s Fund, and (d) our sale of our stock in General Foods.
It’s per-share intrinsic value that counts, however, not book value. Here, the news is good: Between 1964 and 2004, Berkshire morphed from a struggling northern textile business whose intrinsic value was less than…
The dots of life connect only in hindsight, so trust is required in advance.
Context
Steve Jobs (1955–2011) co-founded Apple in 1976, was forced out in 1985, and returned in 1997 to rebuild it around a focused product line. In his 2005 Stanford commencement address he recalled dropping out, taking a calligraphy class, and later using that experience in the Mac's typography. His point was that past experiences can only be connected in hindsight, so one must trust that they will eventually cohere.
Today's question
Which past failure now looks, in retrospect, like a necessary dot?
It’s per-share intrinsic value that counts, however, not book value. Here, the news is good: Between 1964 and 2004, Berkshire morphed from a struggling northern textile business whose intrinsic value was less than…