I try to read Warren Buffett’s annual letter to investors every year, although most of the time I only read the articles summarizing the letter or highlighting the key points. But if you are just starting your career in the investments world, you should aim to read the whole letter. There is so much you can learn from the legendary investor. To me, his quotes in his annual letters are always motivating/inspiring.
Here’s the letter itself.
And if you don’t have much time, you can read the articles below.
One thing I realized is that, almost no one managed to escape 2018’s bad 4th quarter, no matter how good you are, including Berkshire Hathaway which suffered losses of USD25.4bn in that quarter alone.
But nevertheless, he is still sitting on a pile of cash worth USD112bn and he is eyeing for an ‘elephant’ acquisition to spend the money on, as part of his long-term plan. Problem is, there is no such deal, for now. Valuations are at peak and his simple investment philosophy is to pay for the right price.
One of the quotes in the letter which I really like:
“Even at our ages of 88 and 95 — I’m the young one — that prospect is what causes my heart and Charlie’s to beat faster. (Just writing about the possibility of a huge purchase has caused my pulse rate to soar.)”
88 and still pumped up to work/make money.
Ok I better get going now.