Insights From Warren Buffett

Billionaire Warren Buffett publishes letters to shareholders annually that are always full of business and investing insights — and some about life. You’ll find dozens of years’ worth at BerkshireHathaway.com. Here are a few nuggets:

• 1992: “... the only value of stock forecasters is to make fortunetellers look good. Even now, (my partner) Charlie (Munger) and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children. However, it is clear that stocks cannot forever overperform their underlying businesses, as they have so dramatically done for some time ...”

• 1994: “... it is not necessary to do extraordinary things to get extraordinary results.”

• 1997: “If a CEO is enthused about a particularly foolish acquisition, both his internal staff and his outside advisers will come up with whatever projections are needed to justify his stance. Only in fairy tales are emperors told that they are naked.”

• 2002: “Charlie and I not only don’t know today what our businesses will earn next year — we don’t even know what they will earn next quarter . ... Managers that always promise to ‘make the numbers’ will at some point be tempted to make up the numbers.”

• 2010: “... look around you and see a world beyond the dreams of any colonial citizen. Now, as in 1776, 1861, 1932 and 1941, America’s best days lie ahead.”

• 2017: “Our aversion to leverage has dampened our returns over the years. But Charlie and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need.”

• 2017: “There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small ... your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions.”