1977 Shareholder Letter - Summary

In 1977, Berkshire delivered operating earnings of $21.9 million ($22.54 per share), slightly better than expected. The year was marked by exceptional insurance underwriting results led by Phil Liesche's team at National Indemnity, while textile operations continued to disappoint. This letter introduced Buffett's argument that return on equity (ROE) is a better measure of managerial performance than earnings per share, which can be misleading as companies grow their equity base.

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Source: Full Letter