Buffett Wisdom: More Than Meets the Eye
If ever there were a lesson that substance matters more than form, it’s Berkshire Hathaway’s website. (Scroll down for a screenshot.) Yes, this really is – and clearly has been for some time – the home page for one of America’s most amazing business success stories, with one of the world’s most wealthy individuals at its helm. From this modest site, Chairman and CEO Warren Buffett publishes an annual shareholder letter that is so content-rich that we don’t give two hoots about the form in which it’s delivered.
This year’s shareholder letter has not yet been officially released (due out in May), but a Fortune magazine sneak preview of 2014’s installment of “Buffettisms” does not disappoint. Buffett’s words again remind us why much of his advice about investing – and life – is substantive indeed. There are so many good quotes in his forthcoming letter that it’s hard to choose just a few. We encourage you to read and enjoy the preview in its entirety, but to get you started, here are a few of our favorites from “Buffett’s annual letter: What you can learn from my real estate investments.”
“When promised quick profits, respond with a quick ‘no.’”
“I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.”
“The fact that a given asset has appreciated in the recent past is never a reason to buy it.”
“Games are won by players who focus on the playing field — not by those whose eyes are glued to the scoreboard.”
“If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.”
“Because there is so much chatter about markets, the economy, interest rates, price behavior of stocks, etc., some investors believe it is important to listen to pundits. … For these investors, liquidity is transformed from the unqualified benefit it should be to a curse.”
“In aggregate, American business has done wonderfully over time and will continue to do so … The goal of the nonprofessional should not be to pick winners — neither he nor his ‘helpers’ can do that — but should rather be to own a cross section of businesses that in aggregate are bound to do well.”
“The ‘know-nothing’ investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results.”
With ideas like these, I think we’ll cut him some slack on his website design.
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