"It's not a very complicated economic equation at Berkshire" · Transcript · BuffettMungerGPT

WarrenIt's not a very complicated economic equation at Berkshire. People didn't, for a long time, they didn't appreciate the value of float. We kept explaining it to them, and I think they probably do now. The big thing, the goal, what Charlie and I think about, we want to add every year something to the normalized, you know, the normalized earning power per share of the company, and we think we can do it because we should be able to do it. We have retained earnings to work with every year to get that job done. Sometimes it doesn't look like we've accomplished much, and we haven't accomplished much. In other years, something big happens, and we don't know ahead of time which year is going to be which. Well, there are very few companies that have ever been similarly advantaged. In the whole history of Berkser Hathaway, we've lived in a torrent of money, and we were constant. deploying it and dispersed assets and we were rising up as we went along. That's a pretty good system. We're not going to change it. It's allowed for a lot of mistakes. I mean, that's the interesting thing. American business has been good enough that you don't have to be, you don't have to really be smart to get a decent result. And if you can bring a little bit of intellect, you know, you should get a pretty good result. What you've got to do is be aversive to the standard stupidities. You just keep those out. You don't have to be smart. Thank God. Yeah. Thank God. Thank God.