Warren Buffett took early retirement at 26 from his teaching job and invested his retirement fund of $174,000 in his own investment business. A billionaire by age 46, (current net worth $83B) his insightful Letters to Shareholders carried unforgettable wisdoms and have become an annual must read for the investing and business community since 1977.
“You only find out who is swimming naked when the tide goes out.” (2001)
CBInsights – did a service to us all by listing and explaining 24 great nuggets from the ’Oracle of Omaha’s Letter to Shareholders since 1977. Like this one-
Executives should only eat what they kill
CB Insights elaborates with the H. H. Brown Shoe Company 1991 acquisition story and their compensating managers with a % of profit less the cost of capital they deployed for the results (besides a meagre salary). Right fit for Buffett’s “eat what you kill” compensation philosophy. In his 1985 letter Buffett wrote “We believe good unit performance should be rewarded whether Berkshire stock rises, falls, or stays even. Similarly, we think average performance should earn no special rewards even if our stock should soar.”
It is a great weekend read.
24 Lessons From Warren Buffett’s Annual Letters To Shareholders https://bit.ly/2XMovUD