All quotes are attributed to Warren Buffett unless otherwise noted. > [!quote] > ... I've made mistakes when assessing the abilities or fidelity of the managers Berkshire is hiring. The fidelity disappointments can hurt beyond their financial impact, a pain that can approach that of a failed marriage. > > A decent batting average in personnel decisions is all that can be hoped for. The cardinal sin is delaying the correction of mistakes or what Charlie Munger called "thumb-sucking." Problems, he would tell me, cannot be wishes away. They require action, however uncomfortable that may be. > [!quote] > ... if you start fooling shareholders, you will soon believe your own baloney and be fooling yourself as well. > [!quote] > ... our experience is that a *single* winning decision can make a breathtaking difference over time. > [!quote] > Mistakes fade away; winners can forever blossom. > [!quote] > I was lucky enough to get an education at three fine universities. And I avidly believe in lifelong learning. I've observed, however, that a very large portion of business talent is innate with nature swamping nurture. > [!quote] > *Our* measure *excludes* capital gains or losses on the stock and bonds we own, whether realized or unrealized. Over time, we think it highly likely that gains will prevail - why else would we buy these securities? - though the year-by-year numbers will swing wildly and unpredictably. Our horizon for such commitments is almost always far longer than a single year. In many, our thinking involves decades. These long-termers are the purchases that sometimes make the cash register ring like church bells. > [!quote] > All calculations are *after* depreciation, amortization and income tax. EBITDA, a flawed favorite of Wall Street, is not for us. > [!quote] > Often, nothing looks compelling; *very* infrequently we find ourselves knee-deep in opportunities. > [!quote] > ... we will forever deploy a substantial majority of their money in equities. > [!quote] > Paper money can see its value evaporate if fiscal folly prevails. > [!quote] > Lacking such assets as athletic excellence, a wonderful voice, medical or legal skills or, for matter, *any* special talents, I have had to reply on equities throughout my life. In effect, I have depended on the success of American businesses and I will continue to do so. > [!quote] > One way or another, the sensible - better yet imaginative - deployment of savings by citizens is required to propel an ever-growing societal output of desired goods and services. This system is called capitalism. It has its faults and abuses - in certain respects more egregious now than ever - but it can also work wonders unmatched by other economic systems. > [!quote] > So, thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result *requires* both wisdom and vigilance on your part. > [!quote] > In "long-tail" lines, a P/C (property and casualty insurer) may report large but fictitious profits to its owners and regulators for many years - even decades. The accounting can be particularly dangerous if the CEO is an optimist or a crook. These possibilities are not fanciful: History reveals a large number of each species. > [!quote] > We do *not* use options or other one-sided forms of compensation; if *you* lose money, so do we. This approach encourages caution but does *not* ensure foresight. > [!quote] > We must *never* write inadequately-prices policies in order to stay in the game. That policy is corporate suicide.