Welcome to Episode 4 of the "Becoming Buffett" Series!

This week we discuss the 1968 letter to Berkshire Hathaway shareholders.

Buffett's annual letters book: http://amzn.to/2ogVi4U

Some brief notes:

1968

“Immediately after year end, we purchased all of the stock of Sun Newspapers, Inc. and Blacker Printing Company, Inc., which represents an initial entry into the publishing business.”

Working hard to improve operating earnings in textile ares
- They aren’t just abandoning the investment at the first sign of trouble, willing to be patient to allow thesis to play out.
Letter now divided into three sections: textile operation, insurance operations, and marketable securities/acquisitions
- Could you have one more income stream 3 years from now?
Insurance operations going well
- Investment income increased substantially in 1968
- Capital gains from common stock investments
- “The insurance companies continue to seek new areas for expansion”
- Could you make ONE great investment this year that could reward you for years to come?
Marketable securities/acquisitions
- Funds were held in common stocks as a temporary investment while waiting for acquisition or expansion opportunities
- Bought Sun Newspapers, Inc. and Blacker Printing Company, Inc. as entries into the publishing industry
- “This purchase, while small, has the potential for future expansion.”
- - Is there a local, private company you could buy an interest in (or buy outright)?
  - Let’s stretch our thinking in regard to the options available to us as investors
Management of insurance and publishing companies continued under existing leadership after acquisition
- Quality mgmt is a big deal to Buffett
- Is it for you?
- Are YOU a quality manager of your business (household)?
- The benefits of great management is that you now have super talented people working to make you money; work to surround yourself with people smarter than you!

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150 - One GREAT Investment Per Year (1968 Letter) 23:35 Share

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150 - One GREAT Investment Per Year (1968 Letter)