Warren Buffett’s Letter – 1982
Operating Earnings The percentage of operating earnings as a percentage of beginning equity capital dropped to only 9.8%. One reason was that for partially-owned (<20%), nonoperated businesses,...
View ArticleWarren Buffett’s Letter – 1983
In the past year, there was an increase in the number of registered shareholders (due to the merger with Blue Chip Stamps) from 1900 to 2900. As such, Warren started this year’s letter with a summary...
View ArticleWarren Buffett’s Letter – 1984
Share Repurchases When a company with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, repurchases of the shares by the...
View ArticleBerkshire Letter by Warren Buffett – 1993 (Part 1)
Book Value, Intrinsic Value & Market Value Let’s look at these 3 terms which are discussed at the start of this letter. Book value is just an accounting term that measures the capital (including...
View ArticleBerkshire Letter by Warren Buffett – 1994 (Part 2)
Book Value and Intrinsic Value Warren Buffett considers intrinsic value as the only logical way to evaluate the relative attractiveness of investments and businesses. It is defined as the discounted...
View ArticleBerkshire Letter by Warren Buffett – 1994 (Part 3)
Intrinsic Value and Capital Allocation When managers make capital allocation decisions, it is important that they act in ways that increase per-share intrinsic value and avoid things that decrease it....
View ArticleRecapitalization of Berkshire
Berkshire Annual Letter 1995 (Part 9) In 1996, Warren Buffett proposed having two classes of stock for Berkshire. A class “B” share will be created that has 1/30th of the rights of the existing (or...
View ArticleOwner’s Manual – Part 2
Intrinsic Value Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. It is not a simple value to calculate and must be estimated. This...
View ArticleBerkshire Annual Letter 1996 (Part 1)
Over the past 32 years, the per-share book value of Berkshire has grown from $19 to $19,011, at a rate of 23.8% compounded annually. Due to the purchase of GEICO (becoming a wholly-owned subsidiary),...
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