1978 Shareholder Letter - Summary

1978 was a good year with operating earnings of 19.4% of beginning shareholders' investment, close to the 1972 record. The merger with Diversified Retailing Company added complexity to financial reporting but expanded Berkshire's reach. Buffett continued to emphasize the importance of return on equity and discussed his growing optimism about insurance equity investments, particularly the holdings in Washington Post, SAFECO, and Government Employees Insurance (GEICO).

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Source: Full Letter