Berkshire Hathaway's Long-Term Partnership with Shareholders

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This chapter explores Berkshire Hathaway's approach to viewing shareholders as long-term partners and prioritizing long-term progress over short-term stock movements. It discusses Warren Buffett and Charlie Munger's mindset of investing in exceptional businesses and their emphasis on long-term ownership. The chapter also highlights the alignment of incentives between directors and shareholders at Berkshire Hathaway.

The Essays of Warren Buffett by Lawrence Cunningham

For over 50 years, Warren Buffett has written an annual letter to Berkshire Hathaway's shareholders. Many people set it as a goal to read all of Warren’s shareholder letters chronologically. Which is certainly a fascinating way to see how Berkshire Hathaway evolved year after year.

This book is different. It breaks from this chronological order to instead group things Warren has said over the years by topic. So, for instance, you can see his ideas on the importance of culture or the power of incentives holistically — as a single body of work.

What I love about this book is the focus on Warren’s ideas. Warren Buffett has built one of the largest conglomerates in history — full I’d incredible companies from See’s Candies to GEICO — from a standing start in 1965. I would argue that if you only have time to study one entrepreneur and investor, that you should study Warren Buffett.

There’s no better way to do that than with this book. I know it’s one I’ll be rereading for the rest of my life.

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Notes & Transcript

Find my full notes and transcript for this episode at outlieracademy.com/warrens-essays.

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