Warren Buffett：Berkshire 1987 Letter, Excerpt 4

If these seven business units had operated as a single company, their 1987 after-tax earnings would have been approximately $100 million - a return of about 57% on equity capital. You'll seldom see such a percentage anywhere, let alone at large, diversified companies with nominal leverage. Here's a benchmark: In its 1988 Investor's Guide issue, Fortune reported that among the 500 largest industrial companies and 500 largest service companies, only six had averaged a return on equity of over 30% during the previous decade. The best performer among the 1000 was Commerce Clearing House at 40.2%.

Source： https://www.berkshirehathaway.com/letters/1987.html
Locator：1987 Chairman's Letter, excerpt 4 · Verified：2026-10-19 · Verification：Short excerpt

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