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Berkshire Hathaway Letter 1968

1968 annual report on entry into publishing business

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Berkshire Hathaway Letter 1968

Author: Kenneth V. Chace Date: March 12, 1969

Overview

The 1968 letter reports improved results in both textile and insurance operations, and announces Berkshire's entry into the publishing business through acquisition of Sun Newspapers and Blacker Printing Company.

Key Points

Textile Operations

  • 14% sales volume increase
  • Home Fabrics and Menswear Linings showed good gains
  • Decision to phase out Box Loom greige goods operation in 1969

Insurance Operations

"National Indemnity Company and National Fire & Marine Insurance Company continue their splendid operating performance under Jack Ringwalt."

  • Good underwriting profit despite industry-wide losses
  • Investment income increased substantially
  • Capital gains realized from common stock investments

Publishing Acquisition

"Immediately after year end, we purchased all of the stock of Sun Newspapers, Inc. and Blacker Printing Company, Inc., which represents an initial entry into the publishing business."

  • Five weekly newspapers in Omaha, Nebraska area
  • Paid circulation: approximately 50,000
  • Operations under Stanford Lipsey

Capital Management

$6.4 million in unrealized market appreciation in marketable securities portfolio at year-end 1968.

Source

Kenneth V. Chace, March 12, 1969.