I have just finished reading Berkshire Hathaway’s 2015 10-K. The letter to shareholders by Warren Buffett (edited by Carol Loomis) is brilliant, as usual. I have written here about how these two “walk their talk” (Buffett and Munger), and this 51st letter to Berkshire shareholders is another fine example. The section on Productivity is mandatory reading, especially so for Brazilians.
My friend and PLD classmate Zia Patel of Wolff Olins just published an interesting interview with Dr. Reddy’s Chairman and CEO, GV Prasad. The story leads to a report called “Impossible and Now” that is extremely interesting and really worth the time. It condenses insights on leadership from 43 interviews with CEOs and surveys of over 400 employees at those companies.
Yes, the 2012 Berkshire Hathaway letter is out (in PDF). You know you’ll print this right away (or send it to your e-reader) and read it over the weekend… or even tonight. Good reading!
It’s been a while since my last post, mainly because of a lot of work – but also because of another worthy task: raising money for a school in the community of Loharano in Madagascar. Moving on to a subject that caused way more noise than called for: Buffett’s US$ 1.2 billion buyback of BRK/A shares. The fact that he bought it from one selling shareholder and that he raised the share price limit had some writers overreacting. Links inside.
I apologize for not posting in the last 9 days or so, but I’ll make it worth your while with this link to Q3 2006 and Q1 2008 letters to investors by Scion Capital’s Michael Burry. You may have read about him in a previous post here – or in Michael Lewis’ book The Big Short. Get it while it lasts.
We dive a little deeper in Berkshire’s annual report. As we’ve argued before, it’s another chapter in a body of work that can be read strictly with an investing “hat” – or, more usefully, with many hats (business, corporate governance, communications, recruiting/incentives etc.). This one is interesting in many regards: succession, Berkshire’s strategy and goals, IBM, insurance float, share repurchases, the state of the US economy and more. We also link to the transcript of CNBC’s 3-hour special “Ask Warren”.
UPDATE: The 2012 Berkshire Hathaway annual report is out – the latest chapter in a history of value investing lessons that Warren Buffett started back in 1959. Read the past letters and this year’s for much more than insights on value investing and valuable information on Berkshire itself, and you will be richer for it.
“The Most Important Thing”, a book by Oaktree’s Howard Marks, was published last week in print (it has been out on Kindle for a while) and we’d like to tackle it soon. The Dealbook article has a quick Q&A with Mr. Marks, but much more useful is the link they’ve provided to all the memos Mr. Marks has written.
Bankstocks.com has a review of Jamie Dimon’s Letter to Investors in the 2010 J.P. Morgan annual report. It’s a gem, a great piece to understand financial services/ banking in general, now and in the long term. Always nice to hear candid remarks clearly written by the company’s leader to its ultimate owners. It’s a benchmark for companies in all sectors and countries.
We don’t have Baupost Capital’s full 2010 letter, but these excerpts are still very interesting. Seth Klarman’s straight talk is always refreshing. Bits on Cash as strategic asset (being able to pull triggers in the midst of panic), “Short-termism” and how that affects everything, and Edge are particularly interesting.