1986 Berkshire Hathaway Letter to Shareholders Audio Version

1986 Berkshire Hathaway Letter to Shareholders Audio Version #BerkshireHathaway #WarrenBuffett #CharlieMunger #Audiobook #investing Chapters: 0:00 1986 BERKSHIRE HATHAWAY INC. Letter To the Shareholders 7:51 Sources of Reported Earnings 20:08 The Fechheimer Bros. Co. 26:01 Insurance Operations 39:16 Marketable Securities 47:08 NHP, Inc. 50:51 Taxation 1:03:43 Miscellaneous 1:06:42 Appendix: Purchase-Price Accounting Adjustments and the "Cash Flow" Fallacy The 1986 Berkshire Hathaway Letter to Shareholders Highlights: • Berkshire’s net worth increased by $492.5 million in 1986, raising per-share book value by 26.1%. • Insurance float grew to $1.7 billion, with underwriting improvements reducing the combined ratio from 111 in 1985 to 103 in 1986. • GEICO achieved a combined ratio of 96.9, reflecting industry-leading cost efficiencies and a 16% growth in premium volume. • Major acquisitions included Scott Fetzer Company, with its two primary businesses, World Book and Kirby, performing exceptionally well under Ralph Schey’s leadership. • Fechheimer Bros. Co., a uniform manufacturer, was acquired, meeting Berkshire’s standards for long-term business potential and strong management. • Non-insurance businesses like Nebraska Furniture Mart, See’s Candies, and the Buffalo News delivered strong performance, driven by exceptional managers. • Nebraska Furniture Mart achieved $132 million in sales, benefiting customers with an estimated $30 million in savings compared to competitors. • See’s Candies recorded stable same-store sales volume for the first time in six years and maintained excellent profit margins under Chuck Huggins’ leadership. • Berkshire’s equity holdings included Capital Cities/ABC, GEICO, and The Washington Post, which were considered permanent investments regardless of market fluctuations. • The annual meeting attracted nearly 450 attendees, highlighting shareholder engagement and providing access to subsidiary products like Nebraska Furniture Mart’s offerings. • Shareholder-designated charitable contributions totaled $4 million, supporting 1,934 charities. • Warren Buffett emphasized the importance of capital allocation, expressing concerns about high market valuations limiting opportunities for productive investments. This is the 1986 Berkshire Hathaway Letter to Shareholders Audio Version written by Warren Buffett. The Berkshire Shareholder Letter may contain the following topics about Charlie Munger, Ajit Jain, Greg Abel, Todd Combs, Ted Weschler, Shareholder Letter, Audiobook, Investing, Value Investing, Intrinsic Value, Earnings, Berkshire Hathaway, Annual Report, Berkshire Hathaway Annual Meeting, Berkshire Hathaway Explained, Berkshire Hathaway Stock Analysis, Berkshire Hathaway Subsidiaries, How To Invest Like Warren Buffett, Warren Buffett Documentary, Warren Buffett Investment Mistakes, Warren Buffett Investment Strategies, Warren Buffett Quotes, Mungerisms, What Makes Warren Buffett A Great Investor, Top Lessons From Warren Buffett