Buffett's 1981 Letter to Berkshire Shareholders
Berkshire Hathaway Book Value Per Share: $526.02
Quotes:
“While market values track business values quite well over long periods, in any given year the relationship can gyrate capriciously.”
“Small portions of exceptionally good businesses are usually available in the securities markets at reasonable prices. But such businesses are available for purchase in their entirety only rarely, and then almost always at high prices.”
“As our history indicates, we are comfortable both with total ownership of businesses and with marketable securities representing small portions of businesses. We continually look for ways to employ large sums in each area. (But we try to avoid small commitments - “If something’s not worth doing at all, it’s not worth doing well”.)”
“While investors and managers must place their feet in the future, their memories and nervous systems often remain plugged into the past. It is much easier for investors to utilize historic p/e ratios or for managers to utilize historic business valuation yardsticks than it is for either group to rethink their premises daily. When change is slow, constant rethinking is actually undesirable; it achieves little and slows response time. But when change is great, yesterday’s assumptions can be retained only at great cost.”
““Forecasts”, said Sam Goldwyn, “are dangerous, particularly those about the future.””
“As Pogo would say, “The future isn’t what it used to be.””
Berkshire Hathaway Book Value Per Share: $526.02
Quotes:
“While market values track business values quite well over long periods, in any given year the relationship can gyrate capriciously.”
“Small portions of exceptionally good businesses are usually available in the securities markets at reasonable prices. But such businesses are available for purchase in their entirety only rarely, and then almost always at high prices.”
“As our history indicates, we are comfortable both with total ownership of businesses and with marketable securities representing small portions of businesses. We continually look for ways to employ large sums in each area. (But we try to avoid small commitments - “If something’s not worth doing at all, it’s not worth doing well”.)”
“While investors and managers must place their feet in the future, their memories and nervous systems often remain plugged into the past. It is much easier for investors to utilize historic p/e ratios or for managers to utilize historic business valuation yardsticks than it is for either group to rethink their premises daily. When change is slow, constant rethinking is actually undesirable; it achieves little and slows response time. But when change is great, yesterday’s assumptions can be retained only at great cost.”
““Forecasts”, said Sam Goldwyn, “are dangerous, particularly those about the future.””
“As Pogo would say, “The future isn’t what it used to be.””
posted by Little Blog Investor @ 4:21 PM
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