It’s Sunday,

Before we start getting the scaries, let’s talk about a guy from Omaha who thinks he knows EverYthIng.

We've got key points from Berkshire Hathaway's annual letter.

The full letter is worth a read. Check it out after you finish reading our text.

Warren Buffet’s Letter: 4 Takeaways

Berkshire Hathaway's yearly letter to investors is quite different. It's not like the usual sales pitches you might expect.

Instead, it's a straightforward account of what they're doing and how they're doing it. They're open about their wins and losses, which is incredibly refreshing in the world of “community adjusted EBITDA”. This letter is a clear example of how having a clear vision and sticking to it can lead to pummeling broader markets since 1980.

Keep it Simple with Financials

Buffet outlines a difference between two types of earnings: the official net income figures and Berkshire's preferred operating earnings. The official financial statements show net earnings, but Berkshire likes to focus on operating earnings because they give a better picture of how well the company is doing.

Operating earnings don't include unrealized gains or losses from investments, which means they focus more on how the business is actually performing, without getting distracted by short-term changes in the market. Warren Buffett also talks about how capital gains are important for Berkshire's long-term growth and mentions his own investment strategy, showing his confidence in the American market.sdflkjsfj

Find Predictable Profits

Berkshire Hathaway has a singular objective: to invest in businesses with strong and lasting economics. He admits that predicting which businesses will succeed in the long run is tough in a capitalist system, so Berkshire looks for companies that can reinvest money effectively. Buffett values businesses led by competent and honest managers, even though assessing character can be hard.

Despite Berkshire's huge size and wealth, Buffett acknowledges that there are limits to its growth due to its size and competition. However, he remains hopeful that Berkshire can perform better than typical American companies while avoiding major losses in capital.

Selection is Everything

Berkshire Hathaway is prepared for financial crises and market ups and downs. He points out that market disruptions, like the 2008 financial crisis, are inevitable and unpredictable. Even though today's markets are bigger and more complicated, Buffett notes that investor behavior sometimes seems more like gambling than careful decision-making. 

Despite these challenges, Buffett stresses Berkshire's dedication to avoiding permanent losses of money by being careful with finances and managing risks wisely.

What AI Made This Week

Sick Fits by Ahmed

Despite many..many questionable fits, Barry Keoghan is by far a top 10 young Hollywood style king.

His taste is, well, unconventional—like, really unconventional. It doesn't align with my typical "30+ year old male" mindset, but that shouldn't exclude him from the list. He fully dons the outfit in every sense; it's never wearing him.

“ooh wasn’t he in that Yorgos movie?”

-My wife

Have a great week!

Ahmed and Peter