I heard a great conversation today with Roger Lowenstein, former WSJ columnist and Author of Buffett: The Making of An American Capitalist, America’s Bank and When Genius Failed, on the Masters in Business podcast. When asked about how he learned about investing, he mentioned how much he had learned from reading Warren Buffett’s Annual Letter to Shareholders. I thought I would dissect his 2016 Letter and share his often folksy advice in an abbreviated format (the letter is 29 pages long).
I thought you might find these insights useful:
- Page 2 of the letter shows Berkshire Hathaway (his holding company) and its performance vs. the S&P500 (here’s a blog post showing the power of compounded returns).
- Two things to keep in mind during market declines which captures the psychology of investing (not his use of the phrase “sit for an extended period”):