This Year's Buffettisms

From Berkshire's 2022 Shareholder Letter

The return of Buffett’s investment vehicle, Berkshire Hathaway, has compounded annually at a rate of 19.8% since 1965; besting the S&P 500’s compounded annual performance of 9.9% over the same period. After putting up a 4% return in 2022, while the S&P lost 18.1%, both Buffett and Munger added a further notch to their bedpost of market-beating returns. Once every year, typically on a Saturday, Berkshire will release its greatly anticipated annual shareholder letter. They usually contain an array of Buffettisms, as well as a lot of quotable dialogue, and sage advice from an investor who has been in the business of investing in American companies for just over one-third of the lifespan of the United States.

Here are fourteen of my highlights from this year’s annual letter.

1. Business pickers > Stock pickers

“Our goal in both forms of ownership is to make meaningful investments in businesses with both long-lasting favorable economic characteristics and trustworthy managers. Please note p…