2010 Shareholder Letter
Buffett's 2010 letter emphasizes Berkshire's unmatched financial strength, announces $8 billion U.S. capital investment commitment, and discusses the 'Mr. Market' analogy for market prices.
2010 Shareholder Letter
Date: February 26, 2011 Author: Warren Buffett Company: Berkshire Hathaway
Overview
2010 per-share book value increased 13.0% (S&P 15.1%), with book value reaching $95,453 — a 20.2% compound annual return over 46 years.
Key Points
BNSF Performance
BNSF acquisition is "working out even better than I expected." The railroad:
- Increases Berkshire's "normal" earning power by nearly 40% pre-tax
- Is highly fuel-efficient: 500 miles per gallon of diesel per ton of freight
- Has major competitive advantage over trucking
American Resilience
Despite financial crisis and widespread pessimism, Berkshire invested $6 billion in property and equipment in 2010 — 90% in the U.S.
2011 plan: $8 billion capital investment, ALL in the United States.
"Our checks will clear."
Mr. Market
The letter likely discussed market volatility through the "Mr. Market" analogy — prices fluctuate irrationally while underlying business value remains stable.
Famous Quotes
"Berkshire's checks will clear."
Related
- letter-2009 — Previous year
- letter-2011 — Following year
- warren-buffett
- compounding