Warren Buffett, known by some as the Oracle of Omaha, gets much attention whenever he speaks on the record. In a letter opening his company’s annual report, he’s again caught the ear of the business world.1 Some highlights from the letter: - On Mistakes: Buffett is frank about his errors. “During the 2019-23 period, I have used the words “mistake” or “error” 16 times in my letters to you. [...]. Elsewhere, it has generally been happy talk and pictures.”
- On Capitalism: “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 also can work wonders unmatched by other economic systems.”
- On his hopes for America: “So thank you, Uncle Sam. [...] 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.”
- Buffett’s Wit and Wisdom: “... if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well.”
In the letter, Buffet acknowledges that, at 94, he may not have many reports in his future. He notes his eventual successor, Greg Abel, and compares him favorably to the late Charlie Munger, Buffet’s longtime sounding board and business partner, who passed in 2023.
Still, Buffett takes such a positive and expansive view that it is difficult not to catch the enthusiasm he shares. His influence casts a very long shadow over how the world does business, and with such well-considered wisdom, it’s easy to see why. |
