Berkshire Hathaway 1982 Letter to Shareholders

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…

(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a…

It was only a few years ago that we told you that the operating earnings/equity capital percentage, with proper allowance for a few other variables,…

To managers faced with such deterioration, a more flexible measurement system often suggests itself: just shoot the arrow of business performance…