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Data are for calendar years with these exceptions: Starting inaccounting rules required insurance companies to value the equity securities they hold at market rather than at the lower of cost or market, which was previously the requirement.
In all other respects, the results are calculated using the numbers originally reported. Over the years, the tax costs would have caused the aggregate lag to be substantial. To the Shareholders of Berkshire Hathaway Inc.: Intrinsic value is discussed on page Furthermore, we completed two significant acquisitions that we negotiated in and initiated six more.
Better yet, we remain awash in liquid assets and are both eager and ready for even larger acquisitions. I will detail our purchases in the next section of the report.
But I will tell you now that we have embraced the 21st century by entering such cutting-edge industries as brick, carpet, insulation and paint.
Try to control your excitement. It has become much more expensive to obtain new business. We own stocks of some excellent businesses, but most of our holdings are fully priced and are unlikely to deliver more than moderate returns in the future.
The long-term prospect for equities in general is far from exciting. Finally, there is the negative that recurs annually: Better yet, this differential will widen in the future.
As the table on the facing page shows, a small annual advantage in our favor can, if sustained, produce an anything-but-small long-term advantage. We are confident about meeting the last two objectives; the first will require some luck. First, our operating managers continue to run their businesses in splendid fashion, which allows me to spend my time allocating capital rather than supervising them.
Our managers are a very special breed. At most large companies, the truly talented divisional managers seldom have the job they really want. Instead they yearn to become CEOs, either at their present employer or elsewhere. Indeed, if they stay put, they and their colleagues are likely to feel they have failed.
At Berkshire, our all-stars have exactly the jobs they want, ones that they hope and expect to keep throughout their business lifetimes.
They therefore concentrate solely on maximizing the long-term value of the businesses that they "own" and love. If the businesses succeed, they have succeeded.
And they stick with us:Milton Friedman takes a shareholder approach to social responsibility. This approach views shareholders as the economic engine of the organization and the only group to .
Quotes on Value, Values, Ethics, Moral and Virtue; Quotations from Socrates to Hsi-Tang, from Genesis to The Dalai Lama and from Warren Buffett to George W. Bush. Build a transferable business.
The most valuable businesses are structured to run themselves. "To grow you've got to let go." The single most vexing problem for business owners is how to get the company to prosper without their direct day-to-day invovlement. 2 value-based management: an integrated approach to value creation a literature review anne ameels e-mail: [email protected] prof.
dr. werner bruggeman.
In my last post I discussed at length the question of rationality. I concluded that contrary to the opinion of behavioral economics, humans do make decisions that they believe to be in their best interests, in my view the correct definition of a rational decision.
By Lynn Stout. Note from the editor: Sadly, Professor Lynn Stout died on April 16, after a long struggle with rutadeltambor.com’re honored that Lynn supported the mission of Evonomics and we believe the best way to honor her is to share her ideas with the rutadeltambor.com about Lynn’s pioneering work here..
Adapted from The Shareholder Value Myth: How Putting Shareholders First Harms Investors.