Berkshire Hathaway Letters to Shareholders: 1965-2024

by Warren Buffett

Good records of any type usually have attracted massive money flows—whether the record was based on unusual skill, luck, or even, occasionally, semi-fraudulent activity which has “manufactured” the record. Even those records, which I believe to have been based at least partially on skill have wilted when subjected to torrents of money. A further problem is that in no case were the superior records I have observed based upon institutional skills, which could be maintained despite changes in the faces. Rather, the good results have been accomplished by a single individual or, at most, a few, working in fairly specialized areas in which the great bulk of investment money simply had no interest. It has been very difficult to out-think the pack on General Motors, IBM, Sears, etc. Rather, the unusual records—and there have been few that have been maintained—have been achieved by those who have worked relatively neglected fields in,which competition was light.[§]