148 - Boring Stuff That Can Make You An Amazing Investor (1966 Letter)
INVESTOR IN THE FAMILY Radio · Brian Bain
April 13, 201729m 23s
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Show Notes
Welcome to Episode 2 of the "Becoming Buffett" Series!
This week we discuss the 1966 letter to Berkshire Hathaway shareholders.
Buffett's annual letters book: http://amzn.to/2ogVi4U
Some brief notes:
1966
"It has always been among the goals of BH to maintain a strong financial position."
- Remember, we are business owners.
- The management of our family's finances and investment is a business.
- We must not make the mistake of degrading our situation with false mindsets that lead us to any other thinking.
- The term "personal finance" seems almost inane (boring and worthy to be ignored), but the term "corporate finance" has the air of grandeur.
- We cannot make that mistake.
- The management of our personal finances is a business endeavor that must be taken seriously
- In Buffett's 1966 letter (not signed by Buffett) we see why.
- This is the letter that plants the seeds for the birth of BH as we now know it
- The meat of the letter is the company's intentions to have a strong financial position and be poised to act when acquisition opportunities arise
- Is the same true for YOU and ME?
- Another point I want to make is the chart I mentioned last week showing the companies that BH has acquired since 1965.
- I count 59 companies over 50 years.
- How does that compare to your portfolio?
- Why don't we buy like this?
- The Entrepreneur to Mutual Fund of Mutual Funds continuum
- The less info we have, the more diversified we should be
- Knowledge/understanding = conviction = concentration of assets