Warren Buffett’s Formula for Success: One Good Decision Every Five Years

View Summary

Raw Text

.css-mbn33i-AuthorLink{color:var(--interactive-text-color);font-style:var(--font-style-italic);}.css-mbn33i-AuthorLink:hover{-webkit-text-decoration:none;text-decoration:none;} Ben Cohen .css-kx7fw8-FollowButton{display:inline;margin:0 8px;}.css-kx7fw8-FollowButton ufc-follow-author-widget:not(.hydrated){display:inline-block;width:60px;}

Share

Resize

Listen

(2 min)

Warren Buffett, chairman and chief executive officer of Berkshire Hathaway in 1984, left. At right, Mr. Buffett at the company’s annual shareholders meeting in Omaha, Neb. in 2016.

Photo: Bonnie Schiffman/Getty Images; Daniel Acker/Bloomberg News

One of the most successful people in the history of capitalism recently did something out of character: He proposed a theory for his own success.

Warren Buffett ’s annual letter to the shareholders of Berkshire Hathaway is a chance for him to reflect on the past year. .css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;} This year , he also ruminated on the past 58 years, and he managed to summarize his career in two numbers. The first was Berkshire’s returns over that period: 3,787,464%. The second number was smaller and less precise but no less astonishing.

What's News

.css-1ssco59-Link{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;gap:16px;-webkit-text-decoration:none;text-decoration:none;gap:8px;min-width:219px;} .css-1c8janm-ImgWrapper{position:relative;height:100%;}.css-1c8janm-ImgWrapper img{border-radius:2px;object-fit:cover;}.css-1c8janm-ImgWrapper svg{position:absolute;bottom:0.6em;left:0.3em;}.css-1c8janm-ImgWrapper svg use{fill:rgba(0, 0, 0, 0.7);} .css-qd7b40-Headline{font-size:18px;font-weight:var(--font-weight-bold);line-height:20px;color:var(--primary-text-color);font-family:var(--article-subhed-font-family);margin:0;display:-webkit-box;overflow:hidden;-webkit-box-orient:vertical;-webkit-line-clamp:3;font-size:16px;font-weight:var(--font-weight-medium);line-height:24px;font-family:var(--font-font-stack-retina);font-style:var(--font-style-normal);} Four Proud Boys Found Guilty of Seditious Conspiracy .css-l3mxou-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-l3mxou-TimeTag:after{content:'\00a0';} .css-72im62-StyledTimestamp-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-72im62-StyledTimestamp-TimeTag{font-size:13px;font-weight:350;line-height:16px;font-family:var(--font-font-stack-retina);margin-top:8px;font-size:12px;font-style:var(--font-style-normal);}.css-72im62-StyledTimestamp-TimeTag:after{content:'\00a0';} 11 mins ago

Regional-Bank Shares Dive as Investors Fret About Contagion 1 hour ago

Toronto-Dominion Bank, First Horizon Call Off Merger 12 mins ago

What's News

.css-vhrje3-Link{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;gap:16px;-webkit-text-decoration:none;text-decoration:none;gap:8px;min-width:219px;-webkit-flex-direction:row-reverse;-ms-flex-direction:row-reverse;flex-direction:row-reverse;-webkit-align-items:flex-start;-webkit-box-align:flex-start;-ms-flex-align:flex-start;align-items:flex-start;-webkit-box-pack:end;-ms-flex-pack:end;-webkit-justify-content:flex-end;justify-content:flex-end;height:auto;gap:16px;border-bottom:1px solid #CCCCCC;padding-bottom:16px;} .css-1wxap3u-ContentWrapper{width:272px;} .css-195x1aj-Headline{font-size:18px;font-weight:var(--font-weight-bold);line-height:20px;color:var(--primary-text-color);font-family:var(--article-subhed-font-family);margin:0;font-size:16px;font-weight:var(--font-weight-medium);line-height:24px;font-family:var(--font-font-stack-retina);font-style:var(--font-style-normal);} Four Proud Boys Found Guilty of Seditious Conspiracy 11 mins ago

Regional-Bank Shares Dive as Investors Fret About Contagion 1 hour ago

Toronto-Dominion Bank, First Horizon Call Off Merger 12 mins ago

Paramount Posts Loss on $1.7 Billion Charge, Cuts Dividend 1 hour ago

Bill Gates, Leon Black, Thomas Pritzker: ​One​ Day in the Life of Jeffrey Epstein .css-d19tje-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-d19tje-TimeTag:after{content:'';} .css-1tq2rt6-StyledTimestamp-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-1tq2rt6-StyledTimestamp-TimeTag{font-size:13px;font-weight:350;line-height:16px;font-family:var(--font-font-stack-retina);margin-top:8px;color:var(--secondary-text-color);font-size:12px;font-style:var(--font-style-normal);}.css-1tq2rt6-StyledTimestamp-TimeTag:after{content:'';} 3 hours ago

Warren Buffett Has Been Betting Big on Oil. It’s Time to Find Out Why. 6 hours ago

Scrambling to Avoid Default, White House Weighs Debt-Limit Fallback Options 6 hours ago

The ‘Bad Boy’ of Shipping Cashes In on Russian Oil 1 hour ago

Nordstrom Is Closing San Francisco Stores as Cities’ Retail Pain Grows 17 hours ago

Copyright © 2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Continue reading your article with a WSJ subscription

Subscribe Now

Already a subscriber? .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;} Sign In

TurboTax : Save up to $15 with TurboTax coupon May 2023

H&R Block Tax : 15% Off DIY Online Tax Filing Services | H&R Block Coupon Code

The Motley Fool : Epic Bundle - 3x Expert Stock Recommendations

eBay : 30% off eBay coupon

AliExpress : AliExpress promo code: $25 Off

Booking.com : 30% off Booking.com promo code with flash sale deals

Single Line Text

.css-mbn33i-AuthorLink{color:var(--interactive-text-color);font-style:var(--font-style-italic);}.css-mbn33i-AuthorLink:hover{-webkit-text-decoration:none;text-decoration:none;} Ben Cohen .css-kx7fw8-FollowButton{display:inline;margin:0 8px;}.css-kx7fw8-FollowButton ufc-follow-author-widget:not(.hydrated){display:inline-block;width:60px;} Share. Resize. Listen. (2 min) Warren Buffett, chairman and chief executive officer of Berkshire Hathaway in 1984, left. At right, Mr. Buffett at the company’s annual shareholders meeting in Omaha, Neb. in 2016. Photo: Bonnie Schiffman/Getty Images; Daniel Acker/Bloomberg News. One of the most successful people in the history of capitalism recently did something out of character: He proposed a theory for his own success. Warren Buffett ’s annual letter to the shareholders of Berkshire Hathaway is a chance for him to reflect on the past year. .css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;} This year , he also ruminated on the past 58 years, and he managed to summarize his career in two numbers. The first was Berkshire’s returns over that period: 3,787,464%. The second number was smaller and less precise but no less astonishing. What's News. .css-1ssco59-Link{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;gap:16px;-webkit-text-decoration:none;text-decoration:none;gap:8px;min-width:219px;} .css-1c8janm-ImgWrapper{position:relative;height:100%;}.css-1c8janm-ImgWrapper img{border-radius:2px;object-fit:cover;}.css-1c8janm-ImgWrapper svg{position:absolute;bottom:0.6em;left:0.3em;}.css-1c8janm-ImgWrapper svg use{fill:rgba(0, 0, 0, 0.7);} .css-qd7b40-Headline{font-size:18px;font-weight:var(--font-weight-bold);line-height:20px;color:var(--primary-text-color);font-family:var(--article-subhed-font-family);margin:0;display:-webkit-box;overflow:hidden;-webkit-box-orient:vertical;-webkit-line-clamp:3;font-size:16px;font-weight:var(--font-weight-medium);line-height:24px;font-family:var(--font-font-stack-retina);font-style:var(--font-style-normal);} Four Proud Boys Found Guilty of Seditious Conspiracy .css-l3mxou-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-l3mxou-TimeTag:after{content:'\00a0';} .css-72im62-StyledTimestamp-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-72im62-StyledTimestamp-TimeTag{font-size:13px;font-weight:350;line-height:16px;font-family:var(--font-font-stack-retina);margin-top:8px;font-size:12px;font-style:var(--font-style-normal);}.css-72im62-StyledTimestamp-TimeTag:after{content:'\00a0';} 11 mins ago. Regional-Bank Shares Dive as Investors Fret About Contagion 1 hour ago. Toronto-Dominion Bank, First Horizon Call Off Merger 12 mins ago. What's News. .css-vhrje3-Link{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;gap:16px;-webkit-text-decoration:none;text-decoration:none;gap:8px;min-width:219px;-webkit-flex-direction:row-reverse;-ms-flex-direction:row-reverse;flex-direction:row-reverse;-webkit-align-items:flex-start;-webkit-box-align:flex-start;-ms-flex-align:flex-start;align-items:flex-start;-webkit-box-pack:end;-ms-flex-pack:end;-webkit-justify-content:flex-end;justify-content:flex-end;height:auto;gap:16px;border-bottom:1px solid #CCCCCC;padding-bottom:16px;} .css-1wxap3u-ContentWrapper{width:272px;} .css-195x1aj-Headline{font-size:18px;font-weight:var(--font-weight-bold);line-height:20px;color:var(--primary-text-color);font-family:var(--article-subhed-font-family);margin:0;font-size:16px;font-weight:var(--font-weight-medium);line-height:24px;font-family:var(--font-font-stack-retina);font-style:var(--font-style-normal);} Four Proud Boys Found Guilty of Seditious Conspiracy 11 mins ago. Regional-Bank Shares Dive as Investors Fret About Contagion 1 hour ago. Toronto-Dominion Bank, First Horizon Call Off Merger 12 mins ago. Paramount Posts Loss on $1.7 Billion Charge, Cuts Dividend 1 hour ago. Bill Gates, Leon Black, Thomas Pritzker: ​One​ Day in the Life of Jeffrey Epstein .css-d19tje-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-d19tje-TimeTag:after{content:'';} .css-1tq2rt6-StyledTimestamp-TimeTag{font-family:var(--font-font-stack-retina);font-size:12px;line-height:15px;padding:0px;margin:0px;display:inline-block;font-weight:300;color:var(--secondary-text-color);font-size:14px;line-height:20px;color:var(--color-red);font-size:14px;line-height:20px;}.css-1tq2rt6-StyledTimestamp-TimeTag{font-size:13px;font-weight:350;line-height:16px;font-family:var(--font-font-stack-retina);margin-top:8px;color:var(--secondary-text-color);font-size:12px;font-style:var(--font-style-normal);}.css-1tq2rt6-StyledTimestamp-TimeTag:after{content:'';} 3 hours ago. Warren Buffett Has Been Betting Big on Oil. It’s Time to Find Out Why. 6 hours ago. Scrambling to Avoid Default, White House Weighs Debt-Limit Fallback Options 6 hours ago. The ‘Bad Boy’ of Shipping Cashes In on Russian Oil 1 hour ago. Nordstrom Is Closing San Francisco Stores as Cities’ Retail Pain Grows 17 hours ago. Copyright © 2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8. Continue reading your article with a WSJ subscription. Subscribe Now. Already a subscriber? .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;} Sign In. TurboTax : Save up to $15 with TurboTax coupon May 2023. H&R Block Tax : 15% Off DIY Online Tax Filing Services | H&R Block Coupon Code. The Motley Fool : Epic Bundle - 3x Expert Stock Recommendations. eBay : 30% off eBay coupon. AliExpress : AliExpress promo code: $25 Off. Booking.com : 30% off Booking.com promo code with flash sale deals.