The Buffett Portfolio

This in my opinion is where the true value of Berkshire Hathaway comes from, its consistent above average results year after year. Whether in the beginning with the Buffett Partnerships or up to present day with over seventy subsidiary companies operating in nearly every industry segment these consistent ever growing results made it in one of the best conglomerates in history.

The most interesting sections of the letters as far as setting the table for the year in review were the introductions. Whether reviewing the great advancements in company equity or important events and news impacting the year, Warren Buffett would always lay it on the line like no other chief executive in history.

As a company that grew over twenty percent compounded annually for over sixty-five years news was going to be a plenty. In different sections and at different times the Oracle would use the Letters as a chance to keep his partners abreast of changes that would be important to Berkshire and important to their investment.

Acquisitions and Warren Buffett were like peanut butter and jelly (categories he actually bought several times). Beginning with the first and most famous acquisition of Berkshire-Hathaway a legacy New England textile company through to the largest purchase of Burlington Northern - Santa Fe one of Americas largest railroads, buying private and public companies was Berkshires coat of armour.

What would any Berkshire Hathaway Letter to Shareholders be without the in depth discussion on the business of insurance. From National Indemnity to GEICO my greatest learnings from the letters came from these sections and the 'float' that built it all.

In addition to purchasing and operating fantastic private companies or amassing a portfolio of public companies valued as much as the operations themselves, Berkshire was also an amazing financier and these posts will focus on the allocation of assets in this area.

Although the ever increasing float from National Indemnity, GEICO, General Re and Ajit the Great provided the premium cash flow for most of the acquisitions. It was the manufacturing, retail, services and utility businesses with great 'moats' that gave Warren Buffett his greatest satisfaction. In this section we will focus on the businesses that covered the 'waterfront' and became the signature brands of Berkshire Hathaway.

These posts provide details on the incredible publicly traded companies BPL/BHI were not able to purchase outright but were able to buy 'pieces of' through the stock market. Warren Buffet's thoughts on stock investing evolved significantly from the early days as a Graham and Dodder purchasing 'cigar butt stocks at great prices' to the influences of Charlie Munger, Peter Lynch and Philip Fishers approach of purchasing 'great companies at fair prices'.

The letters provided Warren Buffett the opportunity to do something that I believe he enjoyed very much and that was  to teach. Although he and Charlie Munger were quite critical of the business schools and their  ‘efficient market hypothesis’ curriculum he enjoyed explaining very difficult concepts in a unique and simple way that only he knew how.

These posts will focus on the conclusions of the letters where some real gems and heart felt memories are often found. Warren would remember great friends and colleagues who had passed and give praise to associates that have retired or moved on and how they impacted him personally and BRK in particular. Lastly he would discuss the upcoming events at the Woodstock of Capitalism - The Annual Meeting.

Warren Buffett was a treasure trove of famous investment quotes both from himself and other great investors that impacted him during his career. We have put together some of the best quotes and will focus in these posts more on the investor behind the quote and their impact on the industry and in history with some of the legendary figures.

From the beginning with the Buffett Partnership 'workouts' through the privatizations of GEICO and Burlington Northern to the private family acquisitions of Sees Candy, Nebraska Furniture Mart, Buffalo News and Scott Fetzer and eventually great franchises like Dairy Queen, Brooks Shoes and Kraft Heinz the stars of Berkshire Hathaway now lie in the great subsidiaries and the regional and global brands they represent.