University of Berkshire Hathaway: 30 Years of Lessons Learned from Warren Buffett & Charlie Munger at the Annual Shareholders Meeting

by Daniel Pecaut

Executive Compensation With many executives making tens of millions in compensation in 1991, this has been a hot topic in the press. Buffett’s response: There should be no cap (you simply cannot overpay for truly great performance). Longevity is irrelevant. Relate compensation directly to the performance of the business. (Yardsticks will vary depending on the business and the amount of capital employed). What he finds objectionable is the large sums being paid for mediocre performance.

Book value simply records what was put into the business. The key to calculating value is determining what will come out of the business.

Check out this quote.

it is helpful to list the qualities you would want in a friend and then seek to instill those qualities in yourself.

that when things go bad, all kinds of things correlate that you wouldn’t think of.

you have an unrecognized concentration of risk.

you are successful if the people you hope love you, do love you.

making money is no replacement for friendship and happiness.

when you fall from the 42nd floor to the 20th floor and you’re doing fine, it does not mean that you don’t have a serious problem.

“It’s a good habit to trumpet your failures and be quiet about your successes.”