Our gain in net worth during 2009 was $21.8 billion, which increased the per-share book value of both our Class A and Class B stock by 19.8%. Over the last 45 years (that is, since present management took over) book value has grown from $19 to $84,487, a rate of 20.3% compounded annually.*
Berkshire’s recent acquisition of Burlington Northern Santa Fe has added at least 65,000 shareholders to the 500,000 or so already on our books. It’s important to Charlie Munger, my long-time partner, and me that all of our owners understand Berkshire’s operations, goals, limitations and culture. In each annual report, consequently, we restate the economic principles that guide us. This year these principles appear on pages 89-94 and I urge all of you – but particularly our new shareholders – to read them. Berkshire has adhered to these principles for decades and will continue to do so long after I’m gone.
In this letter we will also review some of the basics of our business, hoping to provide both a freshman orientation session for our BNSF newcomers and a refresher course for Berkshire veterans.
Read Buffett’s full letter to shareholders here.
These were the last words of Buddha ,in the Theravada tradition.The title Buddha means ‘Enlightened one ‘ or ‘Awakened One’.In Buddhism ,the Buddha refers to Siddhartha Gautama,born in Lumbini in modern Nepal.According to most traditions ,he lived many lives before coming to our present world era.Born a prince ,at the age of 13 he was escorted out of the palace.Buddha came across the ‘four sights ‘ :an old crippled man ,a diseased man ,a decaying corpse and finally an ascetic.Gautama realized that age ,disease ,death and pain were inescapable ,and that the poor would always outnumber the rich.However ,even if one was wealthy ,everyone shared age ,disease ,death and pain.Neither money nor peace can relieve people from fear and anxiety ,or lead them to ultimate happiness.