Key Quotes from 1988 Shareholder Letter

1. "Four years ago I told you that we needed profits of $3.9 billion to achieve a 15% annual return over the decade then ahead. Today, for the next decade, a 15% return demands profits of $10.3 billion."

2. "That seems like a very big number to me and to Charlie Munger."

3. "Without financial leverage, this group earned about 67% on average equity capital."

4. "The major problem we face, however, is a growing capital base... And also, just as with age, it's better to have this problem continue to grow rather than to have it 'solved.'"

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Source: Full Letter