Warren Buffett Letters

Welcome to the latest issue of ‘The Journal of Investing Wisdom’, where I delve into the thoughts, reflections, and readings that have recently captured my attention. This journal serves as a window into my contemplations and the resources that inspire and inform my journey as an investor. I hope you like what you read below. If you are new here, and wish to get insights and ideas like these straight into your inbox, please click here to become a member.

Warren Buffett’s $1 Test

One of the critical choices each business faces at the end of every year is whether to give its profits back to the owners (that’s what dividends are) or retain some money to grow.

Now, if the business is keeping that money, you as an owner better make sure the managers – the capital allocators – are using it well.

But how do you test for that?

[Read more…] about Warren Buffett’s $1 Test: A Simple Formula to Find Quality Companies

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The Art of Value Investing: Dallas and New York

I am organising a couple of sessions on Value Investing in the US –

• Dallas: Saturday, 27th April 2024
• New York/New Jersey: Sunday, 12th May 2024

If you are in or around these cities and wish to attend, kindly register here.

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My Notes on Warren Buffett’s 2023 Letter to Shareholders

Warren Buffett recently released his 2023 letter to shareholders of Berkshire Hathaway. He started with a beautiful eulogy to his longtime partner, Charlie Munger, who passed away on 28th November 2023, just 33 days before his 100th birthday.

In his note, Warren, very humbly, called himself a “general contractor” to carry out the day-by-day construction of his vision of Charlie, whom he called the “architect” of present-day Berkshire. He wrote –

Charlie, in 1965, promptly advised me: “Warren, forget about ever buying another company like Berkshire. But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices. In other words, abandon everything you learned from your hero, Ben Graham. It works but only when practiced at small scale.” With much back-sliding I subsequently followed his instructions.

…Charlie never sought to take credit for his role as creator but instead let me take the bows and receive the accolades. In a way his relationship with me was part older brother, part loving father. Even when he knew he was right, he gave me the reins, and when I blundered he never – never –reminded me of my mistake.

Throughout life, we cross paths with individuals who, often unexpectedly, alter the course of our journey. These could be mentors who ignite in us a passion we never knew existed, friends who challenge our perspectives, or even strangers whose words or actions resonate deeply, causing a shift in our worldview. Their impact might manifest in altering our career paths, influencing our personal development, or reshaping our beliefs and values.

The beauty of these interactions lies in their unpredictability and profound impact. It’s a reminder that every encounter holds the potential to significantly transform our life’s trajectory, encouraging us to remain open and receptive to new experiences and people.

For Buffett, Munger played the role of altering his life’s trajectory.

It’s very important to pause, reflect, and ask this question to yourself – Who is MY Munger?

I think it’s a very important question.

Anyway, I have prepared some notes on Buffett’s letter. Click here to read my notes.

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With respect,
– Vishal

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Warren Buffett recently released his 2021 letter to shareholders of Berkshire Hathaway.

I have prepared some notes on the letter. Click here to read my notes.

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If you are seeing this newsletter for the first time, you may subscribe here.

Stay safe.

With respect,
– Vishal

This is a Warren Buffett birthday post, and like all birthday wishes, I will not take long. This message will never reach Mr. Buffett, but I silently hope the thoughts form some kind of waves and time-travel to reach him before he celebrates his 100th birthday.

* * *
Dear Mr. Buffett,

Happy birthday to you.

Trust you are doing well, feeling young at 91, and in the pink of your health.

[Read more…] about Dear Mr. Buffett

Announcement: Admission to the 11th batch of my premium, online course in Value Investing – Mastermind – is now open, and will remain so till 25th March. Click here to pay your price and join now.

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Warren Buffett recently released his 2019 letter to shareholders of Berkshire Hathaway.

I have prepared some notes on the letter. Click here to download my notes.

Warren Buffett recently released his 2018 letter to shareholders of Berkshire Hathaway.

I have prepared some notes on the letter. Click here to download my notes.

Also, I was on ET Now yesterday to share my thoughts on the letter. Here is the video of the chat (click here to watch the video, or watch below) –

Warren Buffett recently released his 2017 letter to shareholders of Berkshire Hathaway. As outlined on the first page of the letter, Berkshire’s share price has increased by, hold your breath, 2,404,748% over the last 53 years.

The big idea worth noting here is that the annualized return Berkshire’s stock has earned for its shareholders to achieve such magnificent result over 53 years is less than 21% – something people basking in the limelight of current bull run would discard as too less!

Anyways, I have prepared some notes on Buffett’s 2017 letter. Click on the image below or click here to download the document.

I suggest you read the original letter in its entirety by downloading it from here.