On Saturday morning, Berkshire Hathaway released CEO and legendary investor Warren Buffett’s annual letter to shareholders. In it he admitted some blunders, and also said his successor has been picked. Buffett followers read the letters closely for the investing wisdom he dispenses in his annual missives. But over the years, along with his market knowledge, Buffett has also come to be known for his folksy one-liners. For example, in 2001, on being lucky versus being good at investing, he wrote in his annual letter, “After all, you only find out who is swimming naked when the tide goes out.” In last year’s letter he wrote, “A bull market is like sex. It feels best just before it ends.”
This year’s letter doesn’t disappoint. Here are the best Buffett one-liners in this year’s essay.
Why managers have to be objective when investing
“If horses had controlled investment decisions, there would have been no auto industry.”
On how experience in business can make you a better investor, and vice versa
“‘There are certain things that cannot be adequately explained to a virgin either by words or pictures.'” (Buffett quoting a Peter Arno cartoon.)
On whether he's run out of places to invest
“Berkshire now owns 9 1/2 companies that would be listed on the Fortune 500 were they independent (Heinz is the 1/2). That leaves 490 1/2 fish in the sea. Our lines are out.”