Berkshire Hathaway Inc (BRK.B)

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Important: "28 Lessons From Buffett's Annual Letters"

https://www.cbinsights.com/research/buffett-berkshire-hathaway-shareholder-letters/

TABLE OF CONTENTS
Executive compensation
Executives should only eat what they kill
Don’t give your executives stock options as compensation

Stock ownership
Buy stock as an owner, not a speculator
Don’t ignore the value of intangible assets
Conglomerates earned their terrible reputation

Market volatility
Ignore short-term movements in stock prices
Be fearful when others are greedy, and greedy when others are fearful
Save your money in peacetime so you can buy more during war

Investment strategy
Look for companies that reinvest their earnings into growth
Don’t invest in businesses that are too complex to fully understand
Invest in unsexy companies that build products people need
Stock buybacks are often the best use of corporate cash
Asset-heavy companies can be good investments

Value investing
Never invest because you think a company is a bargain
Don’t invest only because you expect a company to grow
Never use your own stock to make acquisitions

Global economics
America is not in decline — it’s becoming more and more efficient
Current board of director incentives are broken and backwards

Management
Embrace the virtue of sloth
Time is the friend of the wonderful business, the enemy of the mediocre
Complex financial instruments are dangerous liabilities
Investment banker incentives are usually not your incentives

Company culture
Leaders should live the way they want their employees to live
Hire people who have no need to work again in their lives
Compensation committees have sent CEO pay out of control

Debt
Never use borrowed money to buy stocks
Borrow money when it’s cheap
Raising debt is like playing Russian Roulette