Today arrived in a brown box my business reading for 2016 and beyond. Yes I will read other books but this is one book with a lot to offer and one that will continue to give for many years ahead. I have read some of the letters in the past but never all in one place from start to finish.
This book has been bought at a huge discount to book value and a massive discount to intrinsic value as this book is worth many times the price I paid.
"Price is what you pay value is what you get."
Value is what I got!
In 1965 Warren Buffett sent a letter to the shareholders of the Buffett Investment Fund and one of the companies they owned at the time was Berkshire Hathaway. And the rest is history....
In the 1960's Berkshire Hathaway was a leading New England based textile company. Warren Buffett took control of Berkshire Hathaway on May 10th 1965 the company had a market cap of $18m with shareholder equity of $22m. This was a net net investment for Buffett where the company was trading below liquidation value of the company. Today Berkshire has a market value of over $300 Billion dollars.
Stocks trading below their NCAV (Net current asset value) and the Net Net investment was a favourite of Buffett's mentor Benjamin Graham. Taking the Cash the company is holding + Accounts receivable + Inventory - Debt giving the NCAV - Graham then liked a nice discount to NCAV just to make it even sweeter.
A little video below from the movie "Other People's Money" starring Danny Devito.
So just wanted to share my new investment for 2016 - Berkshire Hathaway Letters - All 50 years together in one place.
Please feel free to leave comments below with any hidden gems you have found inside Buffett's letters to shareholders. Happy investing