跳至主要内容

巴菲特致股东信-1975年

 笔记:

  • 华盛顿邮报已成为伯克希尔第一重仓股

翻译:

  • 雪球:https://xueqiu.com/6217262310/131409324
  • 备份:https://archive.ph/4hgK3

原文:

To the Stockholders of Berkshire Hathaway Inc.:

Last year, when discussing the prospects for 1975, we stated “the outlook for 1975 is not encouraging.” This forecast proved to be distressingly accurate. Our operating earnings for 1975 were $6,713,592, or $6.85 per share, producing a return on beginning shareholders ’ equity of 7.6%. This is the lowest return on equity experienced since 1967. Furthermore, as explained later in this letter, a large segment of these earnings resulted from Federal income tax refunds which will not be available to assist performance in 1976.

On balance, however, current trends indicate a somewhat brighter 1976. Operations and prospects will be discussed in greater detail below, under specific industry titles. Our expectation is that significantly better results in textiles, earnings added from recent acquisitions, an increase in equity in earnings of Blue Chip Stamps resulting from an enlarged ownership interest, and at least a moderate improvement in insurance underwriting results will more than offset other possible negatives to produce greater earnings in 1976. The major variable—and by far the most difficult to predict with any feeling of confidence—is the insurance underwriting result. Present very tentative indications are that underwriting improvement is in prospect. If such improvement is moderate, our overall gain in earnings in 1976 likewise will prove moderate. More significant underwriting improvement could give us a major gain in earnings.

Textile Operations

During the first half of 1975 sales of textile products were extremely depressed, resulting in major production curtailments. Operations ran at a significant loss, with employment down as much as 53% from a year earlier.

In contrast with previous cyclical slumps, however, most textile producers quickly reduced production to match incoming orders, thus preventing massive industry-wide accumulation of inventories. Such cutbacks caused quite prompt reflection at the mill operating level when demand revived at retail. As a result, beginning about midyear business rebounded at a fairly rapid rate. This “V” shaped textile depression, while one of the sharpest on record, also became one of the shortest ones in our experience. The fourth quarter produced an excellent profit for our textile division, bringing results for the year into the black.

On April 28, 1975 we acquired Waumbec Mills Incorporated and Waumbec Dyeing and Finishing Co., Inc. located in Manchester, New Hampshire. These companies have long sold woven goods into the drapery and apparel trade. Such drapery materials complement and extend the line already marketed through the Home Fabrics Division of Berkshire Hathaway. In the period prior to our acquisition, the company had run at a very substantial loss, with only about 55% of looms in operation and the finishing plant operating at about 50% of capacity. Losses continued on a reduced basis for a few months after acquisition. Outstanding efforts by our manufacturing, administrative and sales people now have produced major improvements, which, coupled with the

general revival in textiles, have moved Waumbecinto a significant profit position.

We expect a good level of profits from textiles in 1976. Continued progress is being made in the movement of Waumbec goods into areas of traditional marketing strength of Berkshire Hathaway, productivity should improve in both the weaving and finishing areas at Manchester, and textile demand continues to firm at decent prices.

We have great confidence in the ability of Ken Chace and his team to maximize our strengths in textiles. Therefore, we continue to look for ways to increase further our scale of operations while avoiding major capital investment in new fixed assets which we consider unwise, considering the relatively low returns historically earned on large scale investment in new textile equipment.

Insurance Underwriting

The property and casualty insurance industry had its worst year in history during 1975. Wedid our share—unfortunately, even somewhat more. Really disastrous results were concentrated in auto and long-tail (contracts where settlement of loss usually occurs long after the loss event) lines.

Economic inflation, with the increase in cost of repairing humans and property far outstripping the general rate of inflation, produced ultimate loss costs which soared beyond premium levels established in a different cost environment. “Social” inflation caused the liability concept to be expanded continuously, far beyond limits contemplated when rates were established—in effect, adding coverage beyond what was paid for. Such social inflation increased significantly both the propensity to sue and the possibility of collecting mammoth jury awards for events not previously considered statistically significant in the establishment of rates. Furthermore, losses to policyholders which otherwise would result from mushrooming insolvencies of companies inadequately reacting to these problems are divided through Guaranty Funds among remaining solvent insurers. These trends will continue, and should moderate any optimism which otherwise might be justified by the sharply increased rates now taking effect.

Berkshire Hathaway’s insurance subsidiaries have a disproportionate concentration of business in precisely the lines which produced the worst underwriting results in 1975. Such lines produce unusually high investment income and, therefore, have been particularly attractive to us under previous underwriting conditions. However, our “mix” has been very disadvantageous during the past two years and it well may be that we will remain positioned in the more difficult part of the insurance spectrum during the inflationary years ahead.

The only segment to show improved results for us during 1975 was the “home state” operation, which has made continuous progress under the leadership of John Ringwalt. Although still operating at a significant underwriting loss, the combined ratio improved from 1974. Adjusted for excess costs attributable to operations still in the start-up phase, underwriting results are satisfactory. Texas United Insurance Company, a major problem a few years ago, has made outstanding progress since George Billing has assumed command. With an almost totally new agency force, Texas United was the winner of the “Chairman’s Cup” for achievement of the

lowest loss ratio among the home state companies. Cornhusker Casualty Company, oldest and largest of the home state companies, continues its outstanding operation with major gains in premium volume and a combined ratio slightly under 100. Substantial premium growth is expected at the home state operation during 1976; the measurement of success, however, will continue to be the achievement of a low combined ratio.

Our traditional business at National Indemnity Company, representing well over half of our insurance volume, had an extraordinarily bad underwriting year in 1975. Although rates were increased frequently and significantly, they continually lagged loss experience throughout the year. Several special programs instituted in the early 1970s have caused significant losses, as well as a heavy drain on managerial time and energies. Present indications are that premium volume will show a major increase in 1976, and we hope that underwriting results will improve.

Reinsurance suffered the same problems as our direct business during 1975. The same remedial efforts were attempted. Because reinsurance contract settlements lag those of direct business, it well may be that any upturn in results from our direct insurance business will precede those of the reinsurance segment.

At our Home and Automobile Insurance Company subsidiary, now writing auto business only in the Cook County area of Illinois, experience continued very bad in 1975 resulting in a management change in October. John Seward was made President at that time, and has energetically and imaginatively implemented a completely revamped underwriting approach. Overall, our insurance operation will produce a substantial gain in premium volume during 1976. Much of this will reflect increased rates rather than more policies. Under normal circumstances such a gain in volume would be welcome, but our emotions are mixed at present. Underwriting experience should improve—and we expect it to—but our confidence level is not high. While our efforts will be devoted to obtaining a combined ratio below 100, it is unlikely to be attained during 1976.

Insurance Investments

Gains in investment income were moderate during 1975 because premium volume remained flat and underwriting losses reduced funds available for investment. Invested assets, measured at cost at yearend, were close to identical with the level at the beginning of the year.

At the end of 1974 the net unrealized loss in the stock section of our portfolio amounted to about $17 million, but we expressed the opinion, nevertheless, that this portfolio overall represented good value at its carrying value of cost. During 1975 a net capital loss of $2,888,000 before tax credits was realized, but our present expectation is that 1976 will be a year of realized capital gain. On March 31, 1976 our net unrealized gains applicable to equities amounted to about $15 million. Our equity investments are heavily concentrated in a few companies which are selected based on favorable economic characteristics, competent and honest management, and a purchase price attractive when measured against the yardstick of value to a private owner.

When such criteria are maintained, our intention is to hold for a long time; indeed, our largest equity investment is 467,150 shares of Washington Post “B” stock with a cost of $10.6 million, which we expect to hold permanently.

With this approach, stock market fluctuations are of little importance to us—except as they may provide buying opportunities—but business performance is of major importance. On this score we have been delighted with progress made by practically all of the companies in which we now have significant investments.

We have continued to maintain a strong liquid position in our insurance companies. In last year’s annual report we explained how variations of 1/10 of 1% in interest rates result in million dollar swings in market value of our bonds. Weconsider such market fluctuation of minor importance as our liquidity and general financial strength make it highly improbable that bonds will have to be sold at times other than those of our choice.

Banking

It is difficult to find adjectives to describe the performance of Eugene Abegg, Chief Executive of Illinois National Bank and Trust of Rockford, Illinois, our banking subsidiary.

In a year when many banking operations experienced major troubles, Illinois National continued its outstanding record. Against average loans of about $65 million, net loan losses were $24,000, or .04%. Unusually high liquidity is maintained with obligations of the U. S. Government and its agencies, all due within one year, at yearend amounting to about 75% of demand deposits.

Maximum rates of interest are paid on all consumer savings instruments which make up more than $2 million, it consistently has generated favorable earnings. Positioned as we now are with respect to income taxes, the addition of a solid source of taxable income is particularly welcome.

General Review

Yourpresent management assumed responsibility at Berkshire Hathaway in May, 1965. At the end of the prior fiscal year (September, 1964) the net worth of the Company was $22.1 million, and 1,137,778 common shares were outstanding, with a resulting book value of $19.46 per share. Ten years earlier, Berkshire Hathaway’s net worth had been $53.4 million. Dividends and stock repurchases accounted for over $21 million of the decline in company net worth, but aggregate net losses of $9.8 million had been incurred on sales of $595 million during the decade.

In 1965, two New England textile mills were the company’s only sources of earning power and, before Ken Chace assumed responsibility for the operation, textile earnings had been erratic and, cumulatively, something less than zero subsequent to the merger of Berkshire Fine Spinning and Hathaway Manufacturing. Since 1964, net worth has been built to $92.9 million, or $94.92 per share. We have acquired total, or virtually total ownership of six businesses through negotiated purchases for cash (or cash and notes) from private owners, started four others, purchased a 31.5%

interest in a large affiliate enterprise and reduced the number of outstanding shares of Berkshire Hathaway to 979,569. Overall, equity per share has compounded at an annual rate of slightly over 15%.

While 1975 was a major disappointment, efforts will continue to develop growing and diversified sources of earnings. Our objective is a conservatively financed and highly liquid business—possessing extra margins of balance sheet strength consistent with the fiduciary obligations inherent in the banking and insurance industries—which will produce a long term rate of return on equity capital exceeding that of American industry as a whole.

Warren E. Buffett, Chairman


Popular posts from 产品随想的博客

BIM江湖演义——ArchiCAD vs Revit

原文 地址 江湖中历来不缺乏传奇。在建筑软件的这片江湖中,风云变幻,豪杰辈出,有两大世家始终屹立不倒——一个来自欧罗巴,名字低调:“图形软件”(Graphisoft),却继承了一身的艺术家气质,手握长剑白衣胜雪;一个来自美利坚,人称“自动桌子”(Autodesk),性格豪放不羁,七种武器样样精通。本文所说的,就是这两大世家的代表人物:ArchiCAD与Revit之间的较量。 这个论题本是老生常谈了,谈到BIM绕不过的就是Revit与ArchiCAD。两者的对比许多帖子都讨论过,但往往大而化之,原则性的东西多,细节的东西少,因此我想再作一次比较,希望能深入一点,具体一点,力争较为全面地反映两者的真实面貌。但这种对比往往两面都不讨好,你懂的,因此本文也多用戏说的语气,我姑妄说之,列位看官也就姑妄听之吧,有不当之处还请多多包涵! 先介绍一下本人对这两个软件的熟悉程度。我用ArchiCAD有4年了,出过几套施工图,都已竣工,编过一系列向日葵图库,颇受好评,对ArchiCAD的认识偏重于施工图;用Revit一年半,出过四个工程的土建及MEP模型,也用其API编了若干插件,对Revit的认识偏重于建模(包括结构及MEP建模)。应该说对ArchiCAD与Revit的认识都算深入了。 当然两者的深度比较是一个庞大的工程,而且个人看法难免有偏见,技术上也多有误解之处,因此希望各位能指正与补充。 1 软件的思想、架构对比 从软件的历史来说,无疑是ArchiCAD悠久得多,Revit是Autodesk在2002年才收购回来的,但Revit有一个强有力的东家,马上推出“BIM”这个很炫的口号,一下把ArchiCAD沿用多年的“虚拟建筑”这个老老实实的口号给打败了,于是ArchiCAD也只好宣称自己是个BIM软件,搞得在外人看来,倒像是Revit占了先机。 从软件设计的角度来看,两者也是差别巨大的。ArchiCAD从20多年前就致力于三维建筑设计,在这方面积累了足够多的经验,多年来也是沿用其架构做一些小更新、小完善、小整合。从我接触的7.0到最新的14.0,感觉比较大的变动就是10.0版整合PlotMaker、12版支持多核计算提升速度、12版新增幕墙工具、13版团队工作大幅改进。在界面上、使用习惯上一直差别不大,这也在一个侧面反映了ArchiCAD软件设计的一个“精英思路”——我本来就...

产品随想 | 周刊 第128期:将时间转化为知识和体验

自行车棚效应:我们为什么在小事上纠结,却对大事视而不见?   https://limboy.me/posts/bike-shedding Benz-Patent   https://www.mercedes-benz.com/en/innovation/milestones/benz-patent-motor-car/ 豐田博物館   https://toyota-automobile-museum.jp/tw/ 值得一去的汽车博物馆 一人公司   https://github.com/cyfyifanchen/one-person-company one-person-company, 一人公司 AI 工具系列 wujiaxian   https://wujiaxian.com/ 可能吧创始人的个人Blog,介绍自己的方式,很值得学习 日本京都10大設計熱點!「建築大師貝聿銘操刀美術館,皆川明設計旅館、選物店,還有全球最美的藍瓶咖啡店舖!」   https://www.elle.com/tw/life/style/g33846398/2020-kyoto-10-hotspots/ 京都真是非常美 Henry L. Stimson   https://en.wikipedia.org/wiki/Henry_L._Stimson?useskin=vector While Kyoto may have satisfied the military criteria for a useful target, Stimson objected, declaring in a meeting if the Interim Committee on June 1, 1945, "...there was one city that they must not bomb without my permission and that was Kyoto." 人性的努力保护了京都 Brooke Astor, 105, Aristocrat of the People, Dies   https://www.nytimes.com/2007/08/14/obituaries/14astor.html 值得尊敬...

产品随想 | 周刊 第52期:HP家的Linux笔记本

Products 腾讯柠檬清理   https://github.com/Tencent/lemon-cleaner 腾讯开源,那基本意味着不再维护了...... (据专业人士看,代码写的烂) Teclis   https://teclis.com/ 一个比较窄,但质量非常高的搜索引擎 Ina La Revue Des Médias   https://larevuedesmedias.ina.fr/ 挺小众的法语网站,对于媒体,对于新闻热点的解读,还挺好 Dashy   https://github.com/Lissy93/dashy A self-hostable personal dashboard built for you. Includes status-checking, widgets, themes, icon packs, a UI editor and tons more! 全定制化的看板,非常酷 OpenSnitch   https://github.com/evilsocket/opensnitch OpenSnitch is a GNU/Linux port of the Little Snitch application firewall 好用的Linux网络状态监控软件,帮助盯住不老实的App 这个工具的创作者,Simone Margaritelli,evilsocket,非常高产 emoji-supply   https://github.com/alcor/emoji-supply 把 Emoji 组合成漂亮的壁纸、封面图 Vue Color Avatar   https://github.com/Codennnn/vue-color-avatar 一个纯前端实现的头像生成网站 itty.bitty   https://github.com/alcor/itty-bitty Itty.bitty is a tool to create links that contain small sites Administrative-divisions-of-China   https://github.com/modood/Administrativ...

内网域名访问内网服务器

部门ftp服务器和远程服务器内网域名无法访问问题困扰我好久,钻研了几天,终于明白了一些,和大家做一个分享, 原帖子在这里 ,表示感谢

路由器与交换机区别

交换机和路由器的区别: 1.路由器可以给局域网自动分配IP,虚拟拨号,交换机只是用来分配网络数据的。 2.路由器在网络层,根据IP地址寻址,可以处理TCP/IP协议,交换机不可以。

分布式系统领域的经典论文【转载】

作者:严林  编辑于 2015-05-08 链接:https://www.zhihu.com/question/30026369/answer/46476717 来源:知乎 著作权归作者所有。商业转载请联系作者获得授权,非商业转载请注明出处。 分布式系统在互联网时代,尤其是大数据时代到来之后,成为了每个程序员的必备技能之一。分布式系统从上个世纪80年代就开始有了不少出色的研究和论文,我在这里只列举最近15年范围以内我觉得有重大影响意义的15篇论文(15 within 15)。 1. The Google File System: 这是分布式文件系统领域划时代意义的论文,文中的多副本机制、控制流与数据流隔离和追加写模式等概念几乎成为了分布式文件系统领域的标准,其影响之深远通过其5000+的引用就可见一斑了,Apache Hadoop鼎鼎大名的HDFS就是GFS的模仿之作; 2. MapReduce: Simplified Data Processing on Large Clusters: 这篇也是Google的大作,通过Map和Reduce两个操作,大大简化了分布式计算的复杂度,使得任何需要的程序员都可以编写分布式计算程序,其中使用到的技术值得我们好好学习:简约而不简单!Hadoop也根据这篇论文做了一个开源的MapReduce; 3. Bigtable: A Distributed Storage System for Structured Data: Google在NoSQL领域的分布式表格系统,LSM树的最好使用范例,广泛使用到了网页索引存储、YouTube数据管理等业务,Hadoop对应的开源系统叫HBase(我在前公司任职时也开发过一个相应的系统叫BladeCube,性能较HBase有数倍提升); 4. The Chubby lock service for loosely-coupled distributed systems: Google的分布式锁服务,基于Paxos协议,这篇文章相比于前三篇可能知道的人就少了,但是其对应的开源系统zookeeper几乎是每个后端同学都接触过,其影响力其实不亚于前三篇; 5. Finding a Needle in Haystack: Facebook's Photo Storage: ...

李录推荐阅读书单

李录推荐阅读书单 李录在《文明、现代化、价值投资和中国》的最后,列出了他推荐阅读的一些书目。这个书目的含金量非常之高,是培养一个多层次有深度思维很好的参考,特整理如下。 一. 科学、哲学、进化、人类文明史、人类历史 1. 《枪炮、病菌与钢铁:人类社会的命运》,贾雷德·戴蒙德 2. 《西方将主宰多久》,伊恩·莫里斯 3. 《文明的度量:社会发展如何决定国家命运》,伊恩·莫里斯 4. 《群的征服》,爱德华·奥斯本·威尔森 5. 《无穷的开始:世界进步的本源》,戴维·多伊奇 6. 《真实世界的脉络:平行宇宙及其寓意》,戴维·多伊奇 7. 《理性乐观派:一部人类经济进步史》,马特·里德利 8. 《科学发现的逻辑》,卡尔·波普尔 9. 《开放社会及其敌人》,卡尔·波普尔 10. 《自私的基因》,理查德·道金斯 11. 《人类简史:从动物到上帝》,尤瓦尔·赫拉利 12. 《文明》,尼尔·弗格森 13. 《当下的启蒙》,史蒂芬·平克 14. 《心智探奇:人类心智的起源与进化》,史蒂芬·平克 15. A history of knowledge, Charles Van Doren 16. 《神的历史》,凯伦·阿姆斯特朗 17. 《为什么佛学是真实的》,罗伯特·赖特 18. 《思考,快与慢》,丹尼尔·卡尼曼 19. Creating the Twentieth Century, Vaclav Smil 20. Transforming the Twentieth Century, Vaclav Smil 二. 中国文明、历史、文化 1. 《先秦诸子系年》,钱穆 2. 《中华文化十二讲》,钱穆 3. 《史记(白话本)》,司马迁 4. 《白话二十五史精选》,李解民等 5. 《四书章句集注》,朱熹 6. Waiting for the Dawn, William Theodore de Bary 7. 《中国的自由传统》,狄百瑞 8. 《万古江河——中国历史文化的转折和开展》,许倬云 9. 《黄宗羲全集》 10. 《余英时文集》 11. 《思想和人物》,林毓生 12. 《曾国藩全集》 13. 《万历十五年》,黄仁宇 14. 《天安门:知识分子与中国革命》,史景迁 15. The Search for Modern China, 史景迁 16. 《中国官僚政治研究》,王亚南 17. 《中...

产品随想 | 周刊 第130期:集结信徒,而非官僚

On Dyson, techno-centric design and social consumption   https://2earth.github.io/website/20250707.html 如何創造偉大的事物   https://ryolu.notion.site/1610a94b9c108079a95be4362afd4a26 集結信徒,而非官僚 Reflections on OpenAI   https://calv.info/openai-reflections 创业架构 Shui   https://github.com/rock-zhang/Shui 好好喝水 https://www.ghibli.jp/works/ 吉卜力作品的高清图 From Skeuomorphic to Liquid Glass: Apple's Strategic Bet on the Post-Touch Future   https://omc345.substack.com/p/from-skeuomorphic-to-liquid-glass 迄今为止关于苹果Liquid Glass变革的解读,最好的一篇 The Nueva School   https://en.wikipedia.org/wiki/The_Nueva_School?useskin=vector 看起来是很酷的一个学校 The Barbican   https://arslan.io/2025/05/12/barbican-estate/ 史蒂夫·乔布斯希望你阅读的 9 本书   https://www.douban.com/doulist/147158849/ 《禅者的初心》里有句话:“做任何事,其实都是在展示内心的天性,这是我们存在的唯一理由。” Chuck Feeney was one of the greatest philanthropists ever   https://www.gatesnotes.com/Remembering-Chuck-Feeney 慈善家 My new deadline: 20 years to give away virtually all my wealt...

《Becoming Steve Jobs》Chapter 13 Stanford

Steve was a natural performer who elevated business presentations to something close to high art. But what made him fidgety this day was the prospect of addressing the Stanford University graduating class of 2005. University president John Hennessy had broached the idea several months earlier, and after taking just a little time to think it over, Steve had said yes. He was offered speaking engagements constantly, and he always said no. In fact, he was asked to do so many commencement addresses that it became a running joke with Laurene and other friends who had college or graduate degrees: Steve said he’d accept one just to make an end run around them and get his PhD in a day, versus the years and years it had taken them. But in the end, saying no was simply a question of return on investment—conferences and public speaking seemed to offer a meager payoff compared to other things, like a dazzling MacWorld presentation, working on a great product, or being around his family. “If you loo...

写给大家看的中文排版指南

作者:Hindy 原文地址: http:// zhuanlan.zhihu.com/uici rcle/20506092 前言:很遗憾,我们的周围充斥着大量排版丑陋的文章。我国的字体排印与日本、美国等设计强国差距实在太大。我希望能够做些力所能及的小事,让更多人意识到“设计”的价值和其必要性,创造更美好的视觉环境。本文旨在帮助普及、提升大家对文字排版的认识,让大家在平时的学习工作中能有更专业的文字排版素养。 必看人群: 设计师、编辑、作家、撰稿人、教师、学生 目录: 1. 中文排版 1.1 引号 1.2 省略号与破折号 1.3 行首行尾禁则 2. 西文排版基础 2.1 西文撰写基础 2.2 西文标点相关 2.3 斜体的用法 2.4 大小写的区别 3. 中西文混排 3.1 基础原则 3.2 标点相关 1. 中文排版 1.1 引号 我国国家标准要求弯引号,个人建议使用直角引号。 示例:你竟然喜欢“苹果表”? 引号中再用引号使用双直角引号。 示例:我问他,“你竟然喜欢‘苹果表’?” 当引号表示讽刺、反语暗示时,使用弯引号(用法参考“西文排版”部分)。 示例:说真的,我也很 “喜欢”“苹果表”哦。 1.2 省略号(删节号)与破折号 省略号占两个汉字空间,包含六个点。 正确示例:中国设计还有太长路要走…… 错误示例:中国设计还有太长路要走… 破折号占两个汉字空间。 示例:中国设计还有太长路要走──加油罢。 1.3 行首行尾禁则 点号(顿号、逗号、句号等)、结束引号、结束括号等,不能出现在一行的开头。 错误示例: 排版时注意某些 符号不能在行首 ,别弄错了。 正确示例: 排版时注意某些 符号不能在行首, 别弄错了。 开始引号、开始括号、开始双书名号等,不能出现在一行的结尾。 错误示例: 她对我们说:“ 这书太赞了。” 正确示例: 她对我们说: “这书太赞了。” 2. 西文排版基础 2.1 西文撰写基础 句首字母大写。 单词间留空格。 示例:Have a question? 2.2 西文标点相关 点号后加一个空格(如逗号、句号等)。 示例:Hello everyone! Welcome to my blog....