The Chairman's Letter, which leads each year's report, is in my opinion a must-read for every investor. More generally, it seems to me that the mass media devote little or no serious attention to the moral basis of markets and capitalism. The Chairman's Letter is written personally by Mr Warren Buffett not by committees of lawyers, PR and media specialists or other intermediaries. The Chairman's Letter's most refreshing attributes thus include clarity, candour and sheer readability. Mr Buffett did not attempt to obfuscate or distract attention from this result.
Executives are virtually always quick to claim bouquets.
This year's Letter, like its predecessors, emphasises that Berkshire's outstanding long-term results owe much to the people who operate its various businesses. Foremost is Ajit Jain. When he took charge of See's at age 46, the company's pre-tax profit, expressed in millions, was about 10 per cent of his age. Today he's 74, and the ratio has increased to 100 per cent. Cautious Optimism Berkshire's extraordinary long-term results help to explain Mr Buffett's frankness and infectious enthusiasm.