Key Quotes from Berkshire Hathaway Letter 2019

1. "In 2018... our net unrealized gains decreased by $20.6 billion, and we therefore reported GAAP earnings of only $4 billion. In 2019... GAAP earnings to the $81.4 billion... a crazy 1,900% increase in GAAP earnings!"

2. "Well-managed industrial companies do not, as a rule, distribute to the shareholders the whole of their earned profits... Thus there is an element of compound interest operating in favour of a sound industrial investment."

3. "The retained earnings of our investees are certain to be of major importance in the growth of Berkshire's value."

4. "If our premiums exceed the total of our expenses and eventual losses, our insurance operation registers an underwriting profit that adds to the investment income the float produces. When such a profit is earned, we enjoy the use of free money - and, better yet, get paid for holding it."

5. "Charlie and I do not view the $248 billion... as a collection of stock market wagers."

6. "The pundits who opine on these subjects reveal, by that very behavior, far more about themselves than they reveal about the future."

---

Source: Full Letter