Communicating with Shareholders and Seeking a Specific Clientele

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This chapter discusses how Berkshire Hathaway communicates with its shareholders through annual reports and why they choose not to release quarterly reports. They believe in attracting a specific group of owners who align with their goals and emphasize the importance of having a stable and satisfied shareholder base. The chapter also highlights their attitude towards shareholders as long-term partners and the focus on long-term progress rather than short-term stock movements.

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 of 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 re-reading for the rest of my life.

Listen to Part 2.

https://www.outlieracademy.com/episode/166

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The Essays of Warren Buffett: Warren's Ideas from 50+ Years Grouped by Topic

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