Key Quotes from 2003 Shareholder Letter

1. "Between 1964 and 2003, Berkshire morphed from a struggling northern textile business whose intrinsic value was less than book into a widely diversified enterprise worth far more than book."

2. "We've found it hard to find significantly undervalued stocks, a difficulty greatly accentuated by the mushrooming of the funds we must deploy."

3. "At Berkshire, neither history nor the demands of owners impede intelligent decision-making. When Charlie and I make mistakes, they are -- in tennis parlance -- unforced errors."

4. "When valuations are similar, we strongly prefer owning businesses to owning stocks."

5. "Investment managers often profit far more from piling up assets than from handling those assets well. So when one tells you that increased funds won't hurt his investment performance, step back: His nose is about to grow."

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Source: Full Letter