TIP521: Warren Buffett's Shareholder Letters

On today’s episode, Clay reviews Warren Buffett’s shareholder letters and shares his takeaways, and distills some of the biggest lessons he learned. If you asked a lot of value investors, they would tell you that reading Buffett’s letters is equivalent to an MBA on value investing and business. Buffett has a lot to teach us as investors as he has grown the value of Berkshire shares by over 3,600,000% since he took control of the business in 1965.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

07:44 - What Berkshire’s “Big Four” businesses are.

13:16 - What Buffett looks for when investing in a business and what he looks for in a management team.

14:19 - Why Buffett loves share repurchases and why they give me further vindication that a stock is cheap.

18:28 - Why it pays to treat your colleagues and shareholders like partners.

24:49 - Why industries with constant change should be avoided by investors.

28:36 - How Buffett views cash and leverage in his capital allocation strategy.

49:28 - What Buffett looks for when selecting him and Charlie’s successors.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• The Essays of Warren Buffett by Lawrence Cunningham.
• Listen to Clay’s review of The Education of a Value Investor by Guy Spier, or watch the video.
• Tune into the recent We Study Billionaires’ episode covering The Dhandho Investor by Mohnish Pabrai, or watch the video.
• Learn more about our free social events in Omaha here.
• Follow Clay on Twitter.

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