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Arthur Clarke's avatar

I attended the ‘88 annual meeting. What struck me about the several hundred attendees was that they all had a look of having made one good decision in life—maybe two, if they had married well. He opened the meeting by reporting that the latest member of the Buffett clan to attend the annual meeting was his 6-month old grandson, who is somewhere in the hall in the arms of his mother. He added: if he starts crying during the meeting, you can assume his mother has told him my views about inheritance. The whole hall exploded in laughter. It was a remarkable example of how Warren can use humor to teach: stock ownership is not simply about speculating to get rich; it is about ownership and its residual responsibility. I later commented to someone who knew Warren well that Berkshire shareholders were above-average givers of their wealth. He agreed.

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Kingswell's avatar

Yeah, I love that line about his grandson crying!

Your point about the attendees having made one good decision in life is one of the biggest things that fascinates me about Berkshire. I touched on it a little in last Friday’s newsletter in the section about Stewart Horejsi. It’s amazing how much wealth can come from one simple decision: in this case, entrusting your money to Warren Buffett.

One of the reasons I write this newsletter and focus so much on Buffett, Munger, Berkshire, etc. is to train myself so I recognize (and seize) a similar opportunity if I’m ever lucky enough to be presented with it.

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Arthur Clarke's avatar

Kevin, you provide a valuable service—to yourself and to us. Thanks!

Investing ought to be like picking a spouse: aim to make a great, lasting decision—and don’t worry about overpaying for an engagement ring. I’ve now been ‘married’ to Berkshire for 45 years. I initially overpaid and six months later I overpaid even more—the shares promptly declined 30%. After that decline I was advised to sell and move on. Both purchases have compounded at around 20%.

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xarizti's avatar

200 bagger from this date...amazing

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Kingswell's avatar

Incredible

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Paul Tennis's avatar

What strikes me is Warren's consistent message over the years/decades. The quotes from the '88 meeting could just as easily been from this year's meeting.

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Kingswell's avatar

Excellent point! I’ve been re-reading his letters dating back to the 1950s and, even though he was looking at different kinds of companies back then, it’s still the same message many decades later.

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