Giuliano's avatar
$5.5m follower assets
Takeaways from Buffet Letters
Some short keynotes on the most wisdom-loaded letters, 1982-1986.


  • Paying too much even for a great company can be a poor investment.
  • A stock's performance may be detached from fundamental business performance in the short term.


  • "Our long-term economic goal is to maximize the avg annual rate of gain in intrinsic business value on a per share basis."
  • No intention of selling good businesses.
  • Look for managements aligned with your objectives.
  • Retained earnings' impact on market value.


  • Capital allocation skills are crucial.
  • In bear markets, no action but share repurchase can better serve shareholders.
  • He buys securities based on criteria he would apply to buy the whole business.
  • "Investment is most intelligent when it is most businesslike"


  • Beware when the gap between intrinsic and market value widens.
  • Recognition of a mistake. Shutdown of the textile business.
  • Learning from others' mistakes is a resourceful strategy.
  • Buy fear


  • He admits not having any idea of what the market will do.
  • "What we do know, however, is that occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur"
  • The intended holding period for their best companies is forever.
Dave Ahern's avatar
Great takeaways! I felt like the 80s versions of the Letters provided the most bang for the buck, but that's just my opinion. Lots of great nuggets in all the Letters. Thanks for sharing!
Giuliano's avatar
@ifb_podcast Highly agreed though I didn't get passed 1987's.
StockOpine's avatar
Thanks for sharing man. 🙌🏻
Giuliano's avatar
@stockopine Thank you for reading!
Joshua Simka's avatar
Do you like to read Buffett's letters online or is there a printed resource (like this) that you refer to?

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Giuliano's avatar
@tomato I read them on a Kindle, but I realized I have got that book on the shelves, so I'll be reading the 1987-2014 period in it.



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