Buffett’s shareholder letter reveals four key insights for investors

Every year, the big bosses of public companies write letters to their shareholders. Think of it like a school report card, but for businesses. They talk about how the company did, what went right, what went wrong, and what they expect in the future.

But there’s one letter everyone REALLY waits for: Warren Buffett’s. He’s the head honcho at Berkshire Hathaway. People hang on his every word, looking for clues about the economy and smart ways to invest.

But it’s not just about money stuff. Buffett often shares some really important life lessons, too. What did he say this year?

Oops! Everyone Makes Mistakes

Buffett admits he’s messed up plenty of times. Sometimes he didn’t understand a company he bought. Other times, he hired the wrong people.

He even said “mistake” or “error” 16 times in his letters between 2019 and 2023. The point? Mistakes happen.

But here’s the real kicker: The worst thing you can do is wait to fix them!

One Big Win Can Change Everything

You mess up. It happens. But Buffett says the opposite is also true: one HUGE win can make a massive difference.

Think about it. What if you made one great decision that paid off for years? Buffett points to some of Berkshire Hathaway’s big wins:

• Buying GEICO
• Bringing in Ajit Jain
• Partnering with Charlie Munger

Mistakes fade. But winners? They can keep on winning.

Forget Fancy Schools

When Buffett picks a CEO, he doesn’t care where they went to college. Seriously. He never even looks!

He talks about Pete Liegl, who ran Forest River (an RV company Berkshire bought). Pete did amazing, even though he might not have gone to a super-fancy school.

Buffett’s takeaway? A lot of talent is just natural. You either have it, or you don’t.

Keep Saving, Keep Investing

Buffett believes saving and reinvesting are super important. It’s what helped America become so successful.

If we just spent everything we made, we’d be stuck in the mud. Berkshire Hathaway’s shareholders helped by reinvesting their dividends.

And for the folks in charge of the money? Buffett has one piece of advice: Keep our currency stable. It takes smarts and hard work.