- If you don't understand a company, if you can't explain it to a ten-year-old in 2 minutes or less, don't own it.
- Since the early 1980s, the Berkshire annual reports have informed shareholders of the performance of the holdings of the company and new investments, updated the status of the insurance and the reinsurance industry, and (since 1982) have listed acquisition criteria about business Berkshire would like to purchase. The report is generously laced with examples, analogies, stories, and metaphors containing the do's and dont's of proper investing in stocks.
- Corporate profits will be a lot higher 10 years from now. They'll be a lot higher 20 years from now. That's what you can rely on. Microsoft didn't exist 20 years ago. Staples didn't exist 20 years ago—Federal Express didn't exist 20 years ago. New companies will come along. That's what makes stocks go up.