Скачать или смотреть Buffett’s 1981 letter- Toads Princes and the Power of Ownership Earnings

This episode explores Warren Buffett’s 1981 annual letter to the shareholders of Berkshire Hathaway, a year in which Buffett delivers some of his most memorable insights on acquisition strategy, inflation, and the real economics of business ownership. The letter reviews Berkshire’s 1981 operating earnings but places far greater emphasis on the concept of non controlled ownership earnings. Buffett explains how the undistributed profits of companies like GEICO often create far more long term value for Berkshire than the numbers appearing in reported GAAP earnings.
A major theme of this letter is Buffett’s critique of the corporate acquisition boom of the early 1980s. He argues that many managers wildly overpay for mediocre businesses to satisfy growth ambitions humorously describing them as buying toads in hopes that a managerial kiss will magically turn them into princes. Buffett contrasts this with Berkshire’s own strategy of buying fractional stakes in outstanding businesses at sensible prices.
The letter also discusses the destructive effects of high inflation and taxation on shareholders, showing how even businesses with solid accounting earnings can deliver poor real returns when economic forces are stacked against them. Buffett warns that most American businesses have become bad investments for individual owners and underscores the need for patience, discipline, and rational capital allocation.
The letter concludes with a look at the early success of Berkshire’s shareholder designated charitable contributions program, which was met with overwhelming enthusiasm from shareholders.
Topics Covered:
• Berkshire Hathaway’s 1981 operating results
• The importance of non controlled ownership earnings
• Buffett’s critique of overpriced acquisitions
• Why many managers buy toads instead of princes
• The impact of inflation and taxes on shareholder returns
• Berkshire’s approach to rational capital allocation
• The success of the charitable contributions program
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