1980 Shareholder Letter - Summary
Key highlights from Buffett's 1980 letter to shareholders.
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1980 Shareholder Letter - Summary
Operating earnings improved to $41.9 million in 1980 from $36.0 million in 1979, but return on beginning equity capital fell to 17.8% from 18.6%. This letter introduced Buffett's famous "iceberg theory" of earnings — the concept that conventional accounting only shows a portion of Berkshire's true earnings power, while retained earnings at non-controlled companies often exceed reported operating earnings.
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Source: Full Letter