Warren Buffett published his shareholder letter for 2021 back in February. As we have seen over the last few years, his letter has gotten shorter with less advice on investing and more focus on numbers and facts. There are still some nuggets of advice to take away.
In talking about share buy backs, Buffett looks at how they can grow an investors money. In order:
Teaching and writing helps him clarify his own thoughts. Charlies Munger calls this the orangutan effect: if you sit down with an orangutan and carefully lay out one of your big ideas, you may leave behind a confused looking ape, but you will yourself leave thinking more clearly.
His advice to students who have not yet begun their careers; pick an industry and work with the kind of people that you would select if you didn’t need the money. He acknowledges that economic necessities may get in the way of this but never stop looking for the job and colleagues that makes your job feel as if you aren’t working.
In Berkshire, they have a simple recruitment strategy – no jerks. You can’t go wrong with that.
18 April 2022