Must-read annual letters

[Milu]

I am trying to build a list of annual letters worth reading from smart CEO's and Investors. Here are some of the typical ones I read but would love some suggestions

- Buffett Annual Letter to Shareholders

- Jamie Dimon Annual Letter

- Amazon Annual Letter (Previously Bezos, now written by Andy Jassy)

- Francois Rochon (Giverny Capital) Annual Letter

- Mark Leonard (Constellation software), although he doesn't do them anymore

[coffeecaninvestor]

I enjoy Nelnet’s annual letter.  

[MxMI17]

Nomad Investment Partnership letters are fascinating read, if you have not read them:

 

https://www.ft.com/content/2b41c6cb-ba68-47c7-b488-7bf778d64050

[cubsfan]

2 hours ago, coffeecaninvestor said:

I enjoy Nelnet’s annual letter.  

 
absolutely

 

[Saluki]

I enjoyed reading Francis Chou's annual letters.  It's where I first heard of CRAP (Can't Realize A Profit) companies. 

[Spekulatius]

I love old annual reports. The writing was so much clearer and you could get a grip what the company you owned  was doing and where they tried to go.

Her is Lockheed 1958 and Getty Oil 1956 annual reports (the oldest I could find). Some of t(r airplanes introduced in lockheeds 1958 annual report are still flying.

 

getty oil 1956.pdf Lockheed 1958ß.pdf

[coffeecaninvestor]

7 hours ago, Spekulatius said:

I love old annual reports. The writing was so much clearer and you could get a grip what the company you owned  was doing and where they tried to go.

Her is Lockheed 1958 and Getty Oil 1956 annual reports (the oldest I could find). Some of t(r airplanes introduced in lockheeds 1958 annual report are still flying.

 

getty oil 1956.pdf 18.85 MB · 3 downloads Lockheed 1958ß.pdf 29.84 MB · 7 downloads

+1 when I was looking into defense stocks I did this with general dynamics as well if you google it. 

[investmd]

I've liked Francis Chou's thought process for 2 decades. Just finished reading the 2023 annual letter. I don't understand how bright money managers can keep making justifications for pursuing their philosophy whilst underperforming vs S&P over long period of times: 

 

 

An individual invested in this fund (& many others) for 10yrs, 15yrs, or 20 yrs has significantly underperformed the S&P 500.  Yet the same letter states how the Chou Fund is rated as having one of the best returns over long period of times.  

 

If the reason to invest is the desire to outperform the index - chase alpha - how do managers justify their performance? Do money managers believer the index is too risky because of tech stocks and while active money managers may underperform, they are less risky than the index??? 

 

After pursuing an active management value investing style for two decades,  I realize that compounding in index would have yielded better financial returns. However, by participating in the community, I have learned a lot. 

[Dave86ch]

Nomad letters Nick Sleep

My takes

https://dscompounding.com/2022/01/25/the-mentors-nomad-letters-quote/

[hasilp89]

I'd recommend Bernard Arnault's -  it's quite impressive how consistent he has been over time is on what his focus's is. His AGM comments are also very good.

 

Some other's I've gone back and read - Prem/Fairfax, VNO/Roth.

 

Worth reading the original Buffett Partnership Letters. Have been meaning to go through the Munger/Blue Chip ones but haven't made the time.

 

 

[RedLion]

On 4/21/2024 at 6:13 AM, investmd said:

After pursuing an active management value investing style for two decades,  I realize that compounding in index would have yielded better financial returns. However, by participating in the community, I have learned a lot.

I’ve had a similar realization, and it makes me wonder if I should just stack my money in s&p500 and go spend the next 30 years drinking Mai tais on the beach.
 

It doesn’t help that I’ve massively outperformed the past few years, likely just providing confirmation bias. 

[John Hjorth]

27 minutes ago, RedLion said:

I’ve had a similar realization, and it makes me wonder if I should just stack my money in s&p500 and go spend the next 30 years drinking Mai tais on the beach.
 

It doesn’t help that I’ve massively outperformed the past few years, likely just providing confirmation bias. 

 

I have read somewhere that this should be an extremely unhealthy component in the diet for red lions.  However, I can't find it right now though.

[RedLion]

1 hour ago, John Hjorth said:

 

I have read somewhere that this should be an extremely unhealthy component in the diet for red lions.  However, I can't find it right now though. 
 

 

So my stock picking hobby may not be such a bad thing after all! 

[Whensthepaintdry?]

Has anyone ever read Santa Monica Partner letters? 

[John Hjorth]

13 minutes ago, RedLion said:

 

So my stock picking hobby may not be such a bad thing after all! 

 

Yeah, naturally I was just kidding, @RedLion, .

 

The fact is [at least I personally consider it a fact] that what you have hoarded, processed and taken in while practicing stock picking, noone can take away from you. You have become a much more - and better informed - a much more knowledgeable person and citizen in a wide range of aspects. Such side effect can't be said to be attached to the majority of hobbies, I think.

 

- - - o 0 o - - -

 

-Now back to topic!