THE LETTER

I have read Buffett’s books as well as several books about/with/sponsored by Buffet, including The Intelligent Investor. Which I have in my personal business and consulting library.

I do not consider Buffett either that brilliant, or that great of a man, except when it comes to investing. When it comes to investing and how to maximize the inherent capacities of any given business he supports he can be, and is indeed, far more often than not, quite incredibly brilliant.

Therefore I found the letter Bill Gates spoke about in the article quite interesting. I downloaded a .pdf copy to study.

Bill Gates recommends you read this specific part of Warren Buffett’s letter

warren buffett bill gates ping pongREUTERS/Rick Wilking Buffett and Gates.

Bill Gates is a big Warren Buffett fan.

Gates’ charity, the Bill & Melinda Gates Foundation, was gifted shares of Buffett’s Berkshire Hathaway, worth almost $30 billion back in 2006, and Buffett serves as a trustee of the foundation.

In a tweet on Tuesday morning, Gates highlighted what he thought was the most important section of Buffett’s latest letter to shareholders, the 50th edition of the widely circulated missive.

Gates links to page 23 of the letter, where Buffett walks through the earliest days of Berkshire (as well as the “monumentally stupid” decision Buffett made over $0.125 back in 1964).

In a YouTube video posted Sunday, Gates talked a bit about why he liked this passage from the letter so much — it’s about the history of Buffett the investor and Berkshire the company.

In the video, Gates says what works about what he calls the “Berkshire system” is that it maximizes the potential of businesses by giving them autonomy as well as the explicit support of the whole Berkshire organization, even if mistakes are made.

Gates added: “What really struck me this time about the letter was the value of experience. [Buffett] is better today than ever because he’s seen so many businesses and he understands business profitability so incredibly well.” Gates says this is the most important annual letter Buffett has ever written.

Read Buffett’s full letter here »

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