Buffett's Letter to Shareholders

Why Does Warren Buffett Say "Accounting is the Language of Business"? Warren Buffett has repeatedly emphasized in his shareholder letters that "accounting is the language of business" because accounti...

The Rarity and Implications of Berkshire Hathaway's Consistently Positive Underwriting Profit Margin in Its Insurance Business 1. Rarity Within the Industry Berkshire Hathaway’s insurance operations h...

Warren Buffett's Stance on Complex Financial Derivatives Warren Buffett maintains a highly cautious and critical stance toward complex financial derivatives.

How Does Warren Buffett Assess the Intrinsic Value of Intangible Assets Like Brand Value? As a leading figure in value investing, Warren Buffett has frequently discussed the valuation of intangible as...

Do Retained Earnings Truly Belong to Shareholders? 1. Definition and Accounting Meaning of Retained Earnings Retained Earnings refer to the portion of a company’s profits accumulated internally after ...

Answer to the Question Priority Financial Statement When analyzing a company, Warren Buffett prioritizes reviewing the balance sheet. Reasoning Buffett’s Investment Philosophy: According to his share...

How to Identify Signs of Fraud or Manipulation in Financial Statements? Financial statement fraud often lurks behind the numbers. Warren Buffett has repeatedly emphasized in his shareholder letters th...

Why Is Return on Equity (ROE) Considered a More Important Metric Than Earnings Per Share (EPS) Growth? In investment analysis, particularly based on Warren Buffett's perspective in his letters to shar...

Warren Buffett's View on Leverage (Debt) Warren Buffett has consistently maintained a cautious, even oppositional stance toward using leverage.

Cash Flow vs. Profit: Which Better Reflects a Company's True Health? Introduction In financial analysis, profit and cash flow are two key metrics for assessing a company's health.

Warren Buffett's Critical View on the Accounting Treatment of "Goodwill" Buffett has repeatedly criticized traditional accounting standards for handling goodwill in Berkshire Hathaway's shareholder le...

Warren Buffett's Views on Stock Repurchases Warren Buffett has repeatedly emphasized in his shareholder letters that the wisdom of stock repurchases depends on the relationship between a company’s sto...

What Would Happen to Berkshire Hathaway If Regulators Prohibited Insurance Companies from Investing in Stocks? Background Analysis Berkshire Hathaway's core business model relies on "float" generated ...

What is Float? Float refers to the premiums collected by insurance companies from customers, which are held temporarily before being paid out as claims or expenses.

The Essential Difference Between Warren Buffett's "Owner Earnings" and EBITDA Warren Buffett emphasizes "Owner Earnings" as a metric for evaluating a company's true profitability in value investing, w...

What Buffett Most Wants to Convey: A Life Philosophy After reading all of Buffett’s shareholder letters, I believe what he most wants to impart to the world is not merely an investment formula, but a ...

Selected Investment Warren Buffett's investment in IBM (purchased approximately $10.7 billion worth of IBM stock in 2011, then gradually sold between 2017-2018).

# To What Extent Was Buffett's Success Attributed to the "Golden Age" of Rapid U.S. Economic Growth? Buffett's investment career spans multiple economic cycles.

Analysis of the Relationship Between Buffett's Success and "Sweetheart Deals" Validity of the Criticism Yes, this criticism holds some validity.

Has Berkshire's Massive Size Become Its Greatest Obstacle to Achieving Excess Returns? Yes, Berkshire Hathaway's enormous size has indeed become one of its greatest obstacles to achieving excess retur...