Warren Buffett’s Letter 2015
Similarly, India has a GDP growth rate of 7.20% and population growth of 1.10% which increase to the per capita growth by 6.10%. if we consider average per capita growth rate of around 5% for coming 20 years then it will reach the gain of 100%+. So that per capita will increase to $3927+ from $1963.55 currently, which will enhance the standard of living of our future generation.
Warren Buffett’s Letter 2016
Mr. Buffett has explained mistakes of acquiring businesses –
Mr. Buffett on assets funding through debt-
Mr. Buffett on fear –
When we are fearful with our investment decisions then we focus on the each and every aspects which can result in the erosion of the capital. When I make an investment, I assume that from the next day of my investment; 1929 great depression will hit so whether I survive or not? Survival should be much more important to build a wealth which is not focused if we do not remain fearful with our investment.
Mr. Buffett on the repurchase of shares –
Many companies are coming up with the repurchase of shares, we should consider that whether repurchase did at a discount to the intrinsic value or at a premium. If a company is paying a premium to repurchase shares then it will not benefits much to the shareholders. If any company make a decision to repurchase shares at a discount to the intrinsic value then we should look for the company. Many companies which are into commodity business or into the cyclical nature of the business also make a repurchase share during the worst time.
Examples of Buyback at discount to intrinsic value, cyclical companies buyback, companies which have done a buyback rather repay debt – SIMPLE IS BETTER – ISSUE -13 – BUYBACK
Warren Buffett’s Letter 2017
If our investment does not provide us with protection against the inflation then we should not stay for a long term with a particular investment. Our first motive for making an investment should be protected against inflation and then create wealth for the long-term horizon.