At this time each year, the Berkshire Hathaway letter to shareholders arrives in our inbox.
Here are a few of our top insights from this years’ letter. In other words, points with which we agree or have also experienced in our years of investing. It is this type of sage advice/wisdom that we appreciate as long-term investors.
- “Charlie and I are not stock-pickers; we are business-pickers. We own publicly-traded stocks based on expectations about their long-term business performance.”
- “Our extensive collection of businesses currently consists of a few enterprises that have truly extraordinary economics, many that enjoy very good economic characteristics, and a large group that are marginal.” “Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors.”
- “The lesson for investors: The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders. And, yes, it helps to start early and live into your 90’s as well.”
- “We will also avoid behavior that could result in any uncomfortable cash needs at inconvenient times.”
- “The world is full of foolish gamblers, and they will not do as well as the patient investor.”
On these things, we agree!