Accounting as Opinion and Building Businesses

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In this chapter, Warren Buffett and Charlie Munger discuss their unique perspective on accounting and their focus on building businesses. They highlight the types of acquisitions that generate value but may not be reportable as bottom line profit, and emphasize their long-term perspective and focus on generating deep value for the business and shareholders.

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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