Category: Investing

Warren Buffett’s Annual Letter (2017) Takeaways

Warren Buffett’s Annual Letter (2017) Takeaways

The Oracle of Omaha has recently shared his 2017 annual letter and just like recent years, it is filled with wisdom. Here are some of our favorite lines from his letter, you can read the entire letter on Berkshire Hathaway’s site found here.

Our Favorites From Buffett’s 2017 Annual Letter

  • “Don’t ask the barber whether you need a haircut.”
  • “It is insane to risk what you have and need in order to obtain what you don’t need”
  • “In America, equity investors have the wind at their back.”
  • “In the short run, the market is a voting machine, in the long run, however, it becomes a weighing machine.”
  • “Investing is an activity in which consumption today is foregone in an attempt to allow greater consumption at a later date. “Risk” is the probability that this objective won’t be attained.”
  • Kipling’s if –
    • If you can keep your head when all about you are losing theirs
    • If you can wait and not be tired by waiting
    • If you can think – and not make thought your aim
    • If you can trust yourself when all men doubt you
    • Yours is the Earth and everything that’s in it

Our Takeaways

Buffett’s letter always serves as a good reminder to come back to the underlying value despite all the market noise. It also helps us to stay grounded, with all the leverage and derivative products we find too many people are chasing things they don’t need. Lastly, it is important to have conviction in the positions we hold and understand our risk tolerance. If you enjoyed this, you might like¬†Berkshire Hathaway Letters to Shareholders¬†which is a compilation of Warren’s unedited annual letters.