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.