Have you seen this? I just got tipped off to it by Bobby Kotick, CEO of ActiVision (in this month’s Fortune Magazine) -- It’s Warren Buffet’s booklet he sent to shareholders ten years ago. It’s candid, wise, and still relevant today.
Some highlights:
- Be in business for the long-term: measure success by long-term progress, not month-to-month fluctuations in share price
- “Eat your own cooking.” (Microsoft called this “eat your own dog-food” and Hyperion called it “drink your own champagne.”)
- Diversify, generate cash, aim for above average Return on Capital
- The challenge is to generate ideas as fast as you generate cash
- “Noble intentions should be checked periodically against results.”
- “The CEO who misleads others in public may eventually mislead himself in private.”
- Berkshire Hathaway does not give earnings guidance
- According to Mr. Buffet, the greatest teacher in the history of finance is Ben Graham.
Here’s the link:
http://www.berkshirehathaway.com/ownman.pdf
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