One-liners from Warren Buffett’s 2017 letter to Berkshire Hathaway shareholders: As is the case in marriage, business acquisitions often deliver surprises after the "I do’s". Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do. My suggestion: Before even discussing repurchases, a CEO and his or her board should stand, join hands and in unison declare, "What is smart at one price is stupid at another." That old line, "The other guy is doing it, so we must as well," spells trouble in any business. As Charlie says, it’s great to have a manager with a 160 IQ — unless he thinks it’s 180. I’m not aware of any enticing project that in recent years has died for lack of capital. We like to make hay while the sun sets, knowing that it will surely rise again. In a couple of instances, I stumbled in assessing either the fidelit...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.