Guest longinvestor Posted March 9, 2015 Posted March 9, 2015 "Munger's commentary on the next 50 years at BRK The next to last task on my list was: Predict whether abnormally good results would continue at Berkshire if Buffett were soon to depart. The answer is yes. Berkshire has in place in its subsidiaries much business momentum grounded in much durable competitive advantage. Moreover, its railroad and utility subsidiaries now provide much desirable opportunity to invest large sums in new fixed assets. And many subsidiaries are now engaged in making wise “bolt-on” acquisitions. Provided that most of the Berkshire system remains in place, the combined momentum and opportunity now present is so great that Berkshire would almost surely remain a better-than-normal company for a very long time even if (1) Buffett left tomorrow, (2) his successors were persons of only moderate ability, and (3) Berkshire never again purchased a large business. The last point about never needing to purchase a large business to keep the momentum going is a big statement, no? Reinvestments, tuck-in's and share repurchases enuff? That was my favorite quote. I can't think of a bigger endorsement for the current assets and team at BRK (which I agree with as evidenced by my sizable position)." +1 very interesting quotes. :) Munger repeated his bullishness about Berkshire from the Daily Journal annual meeting: "Part of what we did should be done by others, but it isn’t. There are vast institutional pressures on people to do it differently. Will it continue? I think Berkshire’s going to continue way better than most people think. Way better." And then, here is Buffett on the future of BRK: The bad news is that Berkshire’s long-term gains – measured by percentages, not by dollars – cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won’t be great. Eventually – probably between ten and twenty years from now – Berkshire’s earnings and capital resources will reach a level that will not allow management to intelligently reinvest all of the company’s earnings. At that time our directors will need to determine whether the best method to distribute the excess earnings is through dividends, share repurchases or both. If Berkshire shares are selling below intrinsic business value, massive repurchases will almost certainly be the best choice. You can be comfortable that your directors will make the right decision. .. by percentages, not by dollars....???
benchmark Posted March 10, 2015 Posted March 10, 2015 "Munger's commentary on the next 50 years at BRK The next to last task on my list was: Predict whether abnormally good results would continue at Berkshire if Buffett were soon to depart. The answer is yes. Berkshire has in place in its subsidiaries much business momentum grounded in much durable competitive advantage. Moreover, its railroad and utility subsidiaries now provide much desirable opportunity to invest large sums in new fixed assets. And many subsidiaries are now engaged in making wise “bolt-on” acquisitions. Provided that most of the Berkshire system remains in place, the combined momentum and opportunity now present is so great that Berkshire would almost surely remain a better-than-normal company for a very long time even if (1) Buffett left tomorrow, (2) his successors were persons of only moderate ability, and (3) Berkshire never again purchased a large business. The last point about never needing to purchase a large business to keep the momentum going is a big statement, no? Reinvestments, tuck-in's and share repurchases enuff? That was my favorite quote. I can't think of a bigger endorsement for the current assets and team at BRK (which I agree with as evidenced by my sizable position)." +1 very interesting quotes. :) Munger repeated his bullishness about Berkshire from the Daily Journal annual meeting: "Part of what we did should be done by others, but it isn’t. There are vast institutional pressures on people to do it differently. Will it continue? I think Berkshire’s going to continue way better than most people think. Way better." And then, here is Buffett on the future of BRK: The bad news is that Berkshire’s long-term gains – measured by percentages, not by dollars – cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won’t be great. Eventually – probably between ten and twenty years from now – Berkshire’s earnings and capital resources will reach a level that will not allow management to intelligently reinvest all of the company’s earnings. At that time our directors will need to determine whether the best method to distribute the excess earnings is through dividends, share repurchases or both. If Berkshire shares are selling below intrinsic business value, massive repurchases will almost certainly be the best choice. You can be comfortable that your directors will make the right decision. .. by percentages, not by dollars....??? Buffet has been saying that for years, and I think it is true. Even though it might still be better than most companies, but for us small investors, it might be better to invest your money elsewhere. One thing that I thought for a minutes back in 2009 was to sell BRK and buy others, but didn't pull the trigger ... I wanted to sleep easy :(
innerscorecard Posted March 10, 2015 Posted March 10, 2015 "Munger's commentary on the next 50 years at BRK The next to last task on my list was: Predict whether abnormally good results would continue at Berkshire if Buffett were soon to depart. The answer is yes. Berkshire has in place in its subsidiaries much business momentum grounded in much durable competitive advantage. Moreover, its railroad and utility subsidiaries now provide much desirable opportunity to invest large sums in new fixed assets. And many subsidiaries are now engaged in making wise “bolt-on” acquisitions. Provided that most of the Berkshire system remains in place, the combined momentum and opportunity now present is so great that Berkshire would almost surely remain a better-than-normal company for a very long time even if (1) Buffett left tomorrow, (2) his successors were persons of only moderate ability, and (3) Berkshire never again purchased a large business. The last point about never needing to purchase a large business to keep the momentum going is a big statement, no? Reinvestments, tuck-in's and share repurchases enuff? That was my favorite quote. I can't think of a bigger endorsement for the current assets and team at BRK (which I agree with as evidenced by my sizable position)." +1 very interesting quotes. :) Munger repeated his bullishness about Berkshire from the Daily Journal annual meeting: "Part of what we did should be done by others, but it isn’t. There are vast institutional pressures on people to do it differently. Will it continue? I think Berkshire’s going to continue way better than most people think. Way better." And then, here is Buffett on the future of BRK: The bad news is that Berkshire’s long-term gains – measured by percentages, not by dollars – cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won’t be great. Eventually – probably between ten and twenty years from now – Berkshire’s earnings and capital resources will reach a level that will not allow management to intelligently reinvest all of the company’s earnings. At that time our directors will need to determine whether the best method to distribute the excess earnings is through dividends, share repurchases or both. If Berkshire shares are selling below intrinsic business value, massive repurchases will almost certainly be the best choice. You can be comfortable that your directors will make the right decision. .. by percentages, not by dollars....??? Buffet has been saying that for years, and I think it is true. Even though it might still be better than most companies, but for us small investors, it might be better to invest your money elsewhere. One thing that I thought for a minutes back in 2009 was to sell BRK and buy others, but didn't pull the trigger ... I wanted to sleep easy :( I think for enterprising small individual investors, it doesn't make a lot of sense to buy any hold Berkshire if you have decent alternatives (that doesn't mean the corollary one should put your cash allocation in it naively if you don't have alternatives), but can make a lot of sense to treat Berkshire as a piece of merchandise, loading up when it is cheap and flipping it when it's expensive.
Charlie Posted March 10, 2015 Posted March 10, 2015 The most important thing, if you are sitting on a wonderful business, is to do nothing. and I´m very good at doing nothing. ;D
cobafdek Posted March 10, 2015 Posted March 10, 2015 Anyone here subscribe to any points made in this contrarian take on this year's letter? http://www.economist.com/news/business/21645746-warren-buffetts-50th-annual-missive-his-companys-shareholders-obfuscates-rather I thought their analysis was marred by some cheap shots, such calling attention to BRK's share price performance is goalpost-moving, or saying that Munger posits rather than proves that the Berkshire system will endure.
peter1234 Posted March 10, 2015 Posted March 10, 2015 Anyone here subscribe to any points made in this contrarian take on this year's letter? http://www.economist.com/news/business/21645746-warren-buffetts-50th-annual-missive-his-companys-shareholders-obfuscates-rather No new points or insights. People are obsessed with a successor. Do other companies publicly announce successors in advance? The conglomerate has been expanding for many years. You might or might not like it, but nothing new. Measuring book value or market value. He provides both, just use what you like better. My guess is people like eating market value better than eating book value. If you know of a more candid or successful company, please let me know. :)
Guest longinvestor Posted March 10, 2015 Posted March 10, 2015 Anyone here subscribe to any points made in this contrarian take on this year's letter? http://www.economist.com/news/business/21645746-warren-buffetts-50th-annual-missive-his-companys-shareholders-obfuscates-rather Just another trash talker. More interesting are the readers' comments in response.
Liberty Posted March 16, 2015 Posted March 16, 2015 Nothing new, but Bill Gates commenting on the Berkshire letter and the 50th:
VersaillesinNY Posted March 17, 2015 Posted March 17, 2015 It's not simple to receive a paper copy of the Annual Report this year. BRK is probably trying to save some paper by discouraging shareholders to make the written request. Annual Report The Annual Report to the Shareholders for 2014 accompanies this proxy statement, but is not deemed a part of the proxy soliciting material. A copy of the 2014 Form 10-K report as filed with the Securities and Exchange Commission, excluding exhibits, will be mailed to shareholders without charge upon written request to: Sharon L. Heck, Secretary, Berkshire Hathaway Inc., 3555 Farnam Street, Omaha, NE 68131. Such request must set forth a good-faith representation that the requesting party was either a holder of record or a beneficial owner of Class A or Class B Stock of the Corporation on March 4, 2015. Exhibits to the Form 10-K will be mailed upon similar request and payment of specified fees. The 2014 Form 10-K is also available through the Securities and Exchange Commission’s Web site (www.sec.gov).Notice_and_Proxy_Statement.PDF
oddballstocks Posted March 17, 2015 Posted March 17, 2015 It's not simple to receive a paper copy of the Annual Report this year. BRK is probably trying to save some paper by discouraging shareholders to make the written request. Annual Report The Annual Report to the Shareholders for 2014 accompanies this proxy statement, but is not deemed a part of the proxy soliciting material. A copy of the 2014 Form 10-K report as filed with the Securities and Exchange Commission, excluding exhibits, will be mailed to shareholders without charge upon written request to: Sharon L. Heck, Secretary, Berkshire Hathaway Inc., 3555 Farnam Street, Omaha, NE 68131. Such request must set forth a good-faith representation that the requesting party was either a holder of record or a beneficial owner of Class A or Class B Stock of the Corporation on March 4, 2015. Exhibits to the Form 10-K will be mailed upon similar request and payment of specified fees. The 2014 Form 10-K is also available through the Securities and Exchange Commission’s Web site (www.sec.gov). We'll see what happens but I have instructions with my broker to mail all annual reports. I've received the BRK one in the mail reliably in the past. If they are going to not send them to shareholders anymore I think's an issue in itself. For a company that's supposedly very shareholder friendly erecting a barrier to the annual is an issue in my mind.
gfp Posted March 17, 2015 Posted March 17, 2015 They will still mail the Annual Report. You just have to request a printed version of the 10-K if you want it. Berkshire's printed "Annual Report" is not the same as their SEC 10-K, even though both carry the name annual report.
VersaillesinNY Posted March 17, 2015 Posted March 17, 2015 Does anyone know where to find a proxy link for ordering a paper version of the "Annual report" :o?
gfp Posted March 17, 2015 Posted March 17, 2015 If you want the 10-K, you can write to the secretary below or print it from the SEC website. The annual report with the letter to shareholders and the colored cover will be mailed to shareholders as always. "A copy of the 2014 Form 10-K report as filed with the Securities and Exchange Commission, excluding exhibits, will be mailed to shareholders without charge upon written request to: Sharon L. Heck, Secretary, Berkshire Hathaway Inc., 3555 Farnam Street, Omaha, NE 68131. Such request must set forth a good-faith representation that the requesting party was either a holder of record or a beneficial owner of Class A or Class B Stock of the Corporation on March 4, 2015. Exhibits to the Form 10-K will be mailed upon similar request and payment of specified fees. The 2014 Form 10-K is also available through the Securities and Exchange Commission’s Web site (www.sec.gov)."
VersaillesinNY Posted March 17, 2015 Posted March 17, 2015 This year, I have a hard time finding an electronic way to request the paper version of the annual report with the colored cover. I can't do it via the proxyvote nor via the BRK minimalist website. Although, I can order BRK activewear online ::)!
gfp Posted March 17, 2015 Posted March 17, 2015 The closest you will get to an electronic contact form is to email and ask for it. It will be mailed to shareholders, so I assume that doesn't include you or you are already covered. [email protected] or [email protected] This year, I have a hard time finding an electronic way to request the paper version of the annual report with the colored cover. I can't do it via the proxyvote nor via the BRK minimalist website. Also, I can order BRK activewear online ::)!
gfp Posted March 22, 2015 Posted March 22, 2015 The letter is going to be shiny this year. Warren must feel we can finally afford one year of bling before returning to the plain paper next year. No sense going crazy. http://www.omaha.com/money/warren-watch-buffett-s-german-scout-on-the-hunt/article_92a927bd-1a7f-5436-9cec-f02372c24fd6.html (scroll down to second story for Annual Report details) "Those annual reports headed to Berkshire shareholders have a satiny gold cover with an embossed seal that says, “Berkshire Hathaway Inc. 50 Years as a Profitable Partnership.” It’s a fancy touch for the normally plain report. The 50th anniversary edition’s first 44 pages are high-gloss paper for Buffett’s annual letter and essays that he and Vice Chairman Charlie Munger wrote about Berkshire’s past and future. The following 97 pages, with more mundane content, are on regular paper."
berkshire101 Posted March 22, 2015 Posted March 22, 2015 Anyone received their annual letter in the mail yet?
oddballstocks Posted March 22, 2015 Posted March 22, 2015 Anyone received their annual letter in the mail yet? Yup, yesterday. Can confirm it is gold.
berkshire101 Posted March 22, 2015 Posted March 22, 2015 Anyone received their annual letter in the mail yet? Yup, yesterday. Can confirm it is gold. Good to know. I'm in California so hopefully it'll arrive soon. My brokerage sent me the digital version so hopefully that'll work too if the physical doesn't arrive.
Guest longinvestor Posted March 29, 2015 Posted March 29, 2015 http://www.berkshirehathaway.com/letters/2014ltr.pdf "Dammed" fool?! (Pg. 37) Editorial standards, they are a slippin' at Berkshire. Best, Ragu Perhaps not! The context is the extraordinary delegation to the subs. The sentences just preceding..."we don't have depts ...hr, pr, ir, mna...but we do of course have an active audit function..no sense being a dammed fool" reads to me as the foolhardiness of being totally insular or iow "wall omaha in"
sleepydragon Posted March 30, 2015 Posted March 30, 2015 http://www.berkshirehathaway.com/letters/2014ltr.pdf "Dammed" fool?! (Pg. 37) Editorial standards, they are a slippin' at Berkshire. Best, Ragu Perhaps not! The context is the extraordinary delegation to the subs. The sentences just preceding..."we don't have depts ...hr, pr, ir, mna...but we do of course have an active audit function..no sense being a dammed fool" reads to me as the foolhardiness of being totally insular or iow "wall omaha in" "damned fool": someone very foolish "dammed fool": a barrier to obstruct the flow of water?
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