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Archive for September, 2007

Berkshire Annual Letter 1999 (Part 1)

The majority of Berkshire’s managers are wealthy, and work because they love their businesses. Even though the businesses are owned by Berkshire, these managers are given authority to run them as if they were their own.

Here’s a story of how one of their managers truly wanted their business to do well.

…Continue reading » A Managerial Story You Will Never Read Elsewhere

Quarterback Report Card

Joke by Buffett

The numbers on the facing page show just how poor our 1999 record was. We had the worst absolute performance of my tenure and, compared to the S&P, the worst relative performance as well. Relative results are what concern us: Over time, bad relative numbers will produce unsatisfactory absolute results.

Even Inspector Clouseau could find last year’s guilty party: Your Chairman. My performance reminds me of the quarterback whose report card showed four Fs and a D but who nonetheless had an understanding coach. “Son”, he drawled, “I think you’re spending too much time on that one subject.”

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