Warren Buffett released his annual letter over the past weekend. It was, again, one of the shorter Berkshire shareholder letters on record. Though, it was not short on substance.
Buffett touched on a number of topics that offer lessons for investors summarized below. He also included a collection of pithy quotes from his partner Charlie Munger from an, I’m assuming, yet to be released, podcast which the worth the time to read. Let’s dive in.
Please note particularly that we own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.
Buffett’s point is too often overlooked, especially, when people chase rising stock prices in a bull market or try to escape falling prices in bear market. When you buy a stock, you’re buying ownership in a business. The performance of the stock will mirror the performance of the business over the long run. Continue Reading…