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Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

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Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#151

Post by adwn »

ethbro wrote: post #115
oli5679 wrote: post #101

Earlier quoted context omitted.

Your first point is interesting. People gloss over how disruptive the industrial Revolution was, and the downward pressure it put on the wages of farm workers. I'm not convinced by your second one. Why didn't states like Portugal industrialise equally quickly? Or within America, why didn't states with more slaves grow faster? Germany has no history of slavery, and the same is true for modern industrialisation transit…

Admittedly without support, I'd assume that slavery held back southern productivity. If you are making profit to support a lavish lifestyle relative to your local peers and (crucially) there is no free market value of your laborers' labor, then what incentive do you have to apply innovation? Some (cotton gin), but certainly less than a free (in all senses of the word) labor market where a shortage of workers leads to…

> Admittedly without support, I'd assume that slavery held back southern productivity. If you are making profit to support a lavish lifestyle relative to your local peers and (crucially) there is no free market value of your laborers' labor, then what incentive do you have to apply innovation?

I agree. It is my understanding that the Romans were in a good position to develop a usable steam engine, but never had enough motivation to do so, because slave labor was cheaper.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#152

Post by wtf_is_up »

RodericDay wrote: post #140
jdavis703 wrote: post #29

Earlier quoted context omitted.

they all represent a net gain for Americans from the barren lands, primitive structures and meager output of 1776. Starting from scratch, America has amassed wealth totaling $90 trillion. This was a gain that was achieved not by starting from scratch but by stealing lands from indigenous people and forcing Africans to work that land. I'm not sure if you can describe the kidnapping, murder, rape and ultimately genocid…

It's incredible to me that so many Americans below have reconfigured their relationship to slavery with a narrative such that they have even more pride in their country since it succeeded in spite of slavery, not because of it. It's incredible. As a foreigner, I feel like I'm witnessing the payoff some absolutely top-notch patriotic propaganda.

I'm 7 or 8 generations removed from American slavery. I don't have a relationship to it.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#153

Post by lberk »

angry-hacker wrote: post #48
jdavis703 wrote: post #29

Earlier quoted context omitted.

they all represent a net gain for Americans from the barren lands, primitive structures and meager output of 1776. Starting from scratch, America has amassed wealth totaling $90 trillion. This was a gain that was achieved not by starting from scratch but by stealing lands from indigenous people and forcing Africans to work that land. I'm not sure if you can describe the kidnapping, murder, rape and ultimately genocid…

To be honest, so is every successful country. That is why they are successful, because they once had or still have power over others. I'm not an American, but if you feel quilty because of the past, I'm more than welcome to get a little financial contribution to my life. I'm from small and poor country, no great history or privilege.

> To be honest, so is every successful country. That is why they are successful, because they once had or still have power over others.

I'm curious, do you include Hong Kong in that classification? How about Estonia? I'm curious what 'power' you consider those countries have, or exert, over others.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#154

Post by ahh »

Anyone else a bit disappointed?

Normally these letters have some new brilliant insight or dive into a business I know nothing about. This one feels shorter and more peremptory. I see the financials for the major sectors and the same boilerplate explanation of insurance and railroads that's in every letter.

What's up? It's not like nothing happened with Berkshire Hathaway this year.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#155

Post by ahh »

Anyone else a bit disappointed?

Normally these letters have some new brilliant insight or dive into a business I know nothing about. This one feels shorter and more peremptory. I see the financials for the major sectors and the same boilerplate explanation of insurance and railroads that's in every letter.

What's up? It's not like nothing happened with Berkshire Hathaway this year.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#156

Post by BatFastard »

anjc wrote: post #119
wokky wrote: post #89

Earlier quoted context omitted.

I don't often see this sort of pride in America. Normally the flavors I do observe are hyper-nationalistic and filled with bravado... I'd go even further: our current presidential administration spends a lot of energy telling us that America sucks because the people in it suck, the government they built sucks, and the ideals they aspire to suck, and that the solution is to deal out cruelty to the right kinds of peopl…

> I'd go even further: our current presidential administration spends a lot of energy telling us that America sucks because the people in it suck Wtf are you talking about? This has never happened.

While he didn't use the words "suck", he did say it was a "mess". http://blogs.wsj.com/washwire/2016/01/10/donald-trump-the-st...

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#157

Post by wtf_is_up »

Shubley wrote: post #145
throw2016 wrote: post #137

Earlier quoted context omitted.

Those who credit american ingenuity and exceptionalism must acknowledge land is by far the most precious commodity, an entire continent and a beautiful and rich one like North America is essentially priceless, and will enrich generations to come till the end of time. Much much more than $90 or $900 trillion. The economic value of this immense tract of free land and slave trade cannot be brushed aside. But there is al…

Land really isn't that valuable. You can build a great country without it. See Israel or Japan or SK or HK or Singapore. Its the people and way of life that matter. Primary resources can be bought. In fact land can be a hindrance when it induces Dutch Disease.

You have to consider geographical advantages when considering the growth of a civilization. For instance, the Mississippi River has amazing properties for transportation which was obviously great for trade, manufacturing, and settling. Many rivers in Africa may seem similar on the surface but due to things like frequent waterfalls and variation of depth, they are not nearly as advantageous.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#158

Post by ryan0x00 »

differentView wrote: post #42
gizmo wrote: post #18

Earlier quoted context omitted.

Warren Buffett is an expert salesperson, and this tone is the exquisitely crafted product of 70 years of salesmanship. Buffett has worked tirelessly to build his public image, and his "aw-shucks" act is a critical part of that. His image of a down-to-earth person with unquestionable integrity* has enabled him to lock down investment deals under the most favorable possible terms. *) read one of his biographies to see…

What's the worst he's done?

here's one off the top of my head.

Musk vs. Buffett: The Billionaire Battle to Own the Sun - https://www.bloomberg.com/features/2016-solar-power-buffett-...

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#159

Post by MarkMc »

ambicapter wrote: post #124

> We may in time experience a decline in float. If so, the decline will be very gradual – at the outside no more than 3% in any year. The nature of our insurance contracts is such that we can never be subject to immediate or near-term demands for sums that are of significance to our cash resources. This structure is by design and is a key component in the unequaled financial strength of our insurance companies. It wi…

I think he's saying that Berkshire's insurance is so large and diversified that even something like a earthquake in California would not have a big impact on its cash position. I'm surprised it would be capped at 3% though.

Re: Warren Buffett's Annual Letter to Berkshire Hathaway Shareholders [pdf]

#160

Post by [deleted] »

jdavis703 wrote: post #29
dsacco wrote: post #17

There's one particular passage I'd like to point out, on page 5: Our efforts to materially increase the normalized earnings of Berkshire will be aided – as they have been throughout our managerial tenure – by America’s economic dynamism. One word sums up our country’s achievements: miraculous. From a standing start 240 years ago – a span of time less than triple my days on earth – Americans have combined human ingenu…

they all represent a net gain for Americans from the barren lands, primitive structures and meager output of 1776. Starting from scratch, America has amassed wealth totaling $90 trillion. This was a gain that was achieved not by starting from scratch but by stealing lands from indigenous people and forcing Africans to work that land. I'm not sure if you can describe the kidnapping, murder, rape and ultimately genocid…

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