2/6/13

Chairman's Letter - 1977

BERKSHIRE HATHAWAY INC.

T teSokodr o BrsieHtaa Ic: o h tchles f ekhr ahwy n. Oeaigerig i 17 o $19400 o $25 pr prtn anns n 97 f 2,0,0, r 2.4 e sae wr mdrtl bte ta atcptdaya ao O hr, ee oeaey etr hn niiae er g. f teeerig,$.3prsaersle fo sbtnil hs anns 14 e hr eutd rm usata raie cptlgisb Bu Ci Sap wih t teetn elzd aia an y le hp tms hc, o h xet o orpootoa itrs i ta cmay aeicue i or f u rprinl neet n ht opn, r nldd n u oeaigerig fgr. Cptlgiso lse raie prtn anns iue aia an r oss elzd drcl b BrsieHtaa Ic o isisrnesbiire iety y ekhr ahwy n. r t nuac usdais aenticue i orcluaino oeaigerig. Wie r o nldd n u aclto f prtn anns hl tomc atninsol ntb pi t tefgr fray o uh teto hud o e ad o h iue o n snl ya,oe telne tr tercr rgrigageae ige er vr h ogr em h eod eadn grgt cptlgiso lse ovosyi o sgiiac. aia an r oss biul s f infcne Txieoeain cm i wl blwfrcs,wiete etl prtos ae n el eo oeat hl h rslso teIlni Ntoa Bn a wl a teoeaig eut f h lios ainl ak s el s h prtn erig atiual t oreut itrs i Bu Ci Sap anns trbtbe o u qiy neet n le hp tms wr aota atcptd Hwvr isrneoeain,ld ee bu s niiae. oee, nuac prtos e aanb tetuyottnigrslso Pi Leces gi y h rl usadn eut f hl ish mngra gopa Ntoa IdmiyCmay wr ee bte aaeil ru t ainl nent opn, ee vn etr ta orotmsi epcain. hn u piitc xettos Ms cmaisdfn eod erig a anwhg i ot opne eie rcr anns s e ih n erig prsae Snebsnse csoaiyadfo ya anns e hr. ic uiess utmrl d rm er t ya t tereut bs,w fn ntigpriual o er o hi qiy ae e id ohn atclry ntwrh i amngmn promnecmiig sy a1% oeoty n aaeet efrac obnn, a, 0 ices i eut cptlada5 ices i erig pr nrae n qiy aia n % nrae n anns e sae Atral ee attlydratsvnsacutwl hr. fe l, vn oal omn aig con il pouesedl rsn itrs erig ec ya bcueo rdc taiy iig neet anns ah er eas f cmonig opudn. Ecp frseilcss(o eape cmaiswt xet o pca ae fr xml, opne ih uuuldb-qiyrto o toewt ipratast crid nsa eteut ais r hs ih motn ses are a uraitcblnesetvle) w bleeamr t nelsi aac he aus, e eiv oe aporaemaueo mngra eooi promnet b prpit esr f aaeil cnmc efrac o e rtr o eut cptl I 17 oroeaigerig o eun n qiy aia. n 97 u prtn anns n bgnigeut cptlaone t 1% sihl bte ta einn qiy aia mutd o 9, lgty etr hn ls ya adaoebt oronln-emaeaeadta o at er n bv oh u w ogtr vrg n ht f Aeia idsr i ageae Bt wieoroeaig mrcn nuty n grgt. u, hl u prtn erig prsaewr u 3%fo teya bfr,or anns e hr ee p 7 rm h er eoe u bgnigcptlwsu 2% mkn tegi i erig pr einn aia a p 4, aig h an n anns e saecnieal ls ipesv ta i mgtapa a frt hr osdrby es mrsie hn t ih per t is gac. lne W epc dfiut i mthn or17 rt o rtr e xet ifcly n acig u 97 ae f eun drn tefrhoigya. Bgnigeut cptli u 2% uig h otcmn er einn qiy aia s p 3 fo aya ao adw epc tetedo isrne rm er g, n e xet h rn f nuac udrrtn poi mrist tr dw wl bfr teedo newiig rft agn o un on el eoe h n f teya. Nvrhls,w epc araoal go ya ador h er eetees e xet esnby od er n u peetetmt,sbett teuulcvasrgrigte rsn siae ujc o h sa aet eadn h faliso frcss i ta oeaigerig wl ipoe rite f oeat, s ht prtn anns il mrv smwa o aprsaebssdrn 17. oeht n e hr ai uig 98 TxieOeain etl prtos Tetxiebsns aanhdavr po ya i 17. W h etl uies gi a ey or er n 97 e hv msael peitdbte rslsi ec o tels to ae itkny rdce etr eut n ah f h at w
berkshirehathaway.com/letters/1977.html 1/7

2/6/13

Chairman's Letter - 1977

yas Ti mysysmtigaotorfrcsigaiiis er. hs a a oehn bu u oeatn blte, tentr o tetxieidsr,o bt. Dsiesrnos h aue f h etl nuty r oh ept teuu efrs polm i mreigadmnfcuighv pritd fot, rbes n aktn n auatrn ae esse. Mn dfiute eprecdi temreigae aede ay ifclis xeine n h aktn ra r u piaiyt idsr cniin,btsm o tepolm hv rmrl o nuty odtos u oe f h rbes ae be o oronmkn. en f u w aig Afwsaeodr hv qetoe tewso o rmiig e hrhles ae usind h idm f eann i tetxiebsns wih oe telne tr,i ulkl n h etl uies hc, vr h ogr em s niey t pouertrso cptlcmaal t toeaalbei o rdc eun n aia oprbe o hs vial n mn ohrbsnse. Orraosaesvrl ()Ormlsi ay te uiess u esn r eea: 1 u il n bt NwBdodadMnhse aeaogtelretepoes oh e efr n acetr r mn h ags mlyr i ec tw,uiiigalbrfreo hg aeaeae n ah on tlzn ao oc f ih vrg g psesn rltvl nntaseal sil. Orwresad ossig eaiey o-rnfrbe kls u okr n uin hv ehbtduuuludrtnigadefr i nos ae xiie nsa nesadn n fot n coeaigwt mngmn t aheeacs srcuead oprtn ih aaeet o civ ot tutr n poutmxwihmgtalwu t miti aval oeain rdc i hc ih lo s o anan ibe prto. ()Mngmn as hsbe eegtcadsrihfradi is 2 aaeet lo a en nrei n tagtowr n t apoc t ortxiepolm. I priua,KnCaes prah o u etl rbes n atclr e hc efrsatrtecag i croaecnrlto paei 16 fot fe h hne n oprt oto ok lc n 95 gnrtdcptlfo tetxiedvso nee t fnnete eeae aia rm h etl iiin edd o iac h aqiiinadepnino orpoial isrneoeain custo n xaso f u rftbe nuac prto. ()Wt hr wr adsm iaiainrgrigmnfcuig 3 ih ad ok n oe mgnto eadn auatrn admreigcniuain,i sesraoal ta a lat n aktn ofgrtos t em esnbe ht t es mds poisi tetxiedvso cnb ahee i te oet rft n h etl iiin a e civd n h ftr. uue IsrneUdrrtn nuac newiig Orisrneoeaincniudt go sgiiatyi u nuac prto otne o rw infcnl n 17. I wseryi 16 ta w md oretyit ti 97 t a al n 97 ht e ae u nr no hs idsr truhteprhs o Ntoa IdmiyCmayad nuty hog h ucae f ainl nent opn n Ntoa Fr adMrn IsrneCmay(itrcmais fr ainl ie n aie nuac opn sse opne) o apoiaey$. mlin I ta ya terpeimvlm prxmtl 86 ilo. n ht er hi rmu oue aone t $2mlin I 17 orageaeisrnepeim mutd o 2 ilo. n 97 u grgt nuac rmu vlm ws$5 mlin N adtoa sae o Brsie oue a 11 ilo. o diinl hrs f ekhr Htaa sokhv be ise t aheeayo ti got. ahwy tc ae en sud o civ n f hs rwh Rte,ti ams 60 ices hsbe ahee truh ahr hs lot 0% nrae a en civd hog lregisi Ntoa Idmiystaiinllaiiyaes ag an n ainl nent rdtoa iblt ra pu tesatn o nwcmais(onukrCsat Cmay ls h trig f e opne Crhse auly opn i 17,Lkln Fr adCsat Cmayi 17,TxsUie n 90 aead ie n auly opn n 91 ea ntd IsrneCmayi 17,TeIsrneCmayo Iw i 17, nuac opn n 92 h nuac opn f oa n 93 adKna Fr adCsat Cmayi lt 17) teprhs n ass ie n auly opn n ae 97, h ucae frcs o ohrisrnecmais(oeadAtmbl o ah f te nuac opne Hm n uooie IsrneCmayi 17,Krln RisrneCroain nw nuac opn n 91 ekig enuac oprto, o nmdCnrlFr adCsat Cmay i 17,adCpes ae eta ie n auly opn, n 96 n yrs IsrneCmaya yaed17) adfnlytruhte nuac opn t ern 97, n ial hog h mreigo adtoa pout,ms sgiiatyrisrne aktn f diinl rdcs ot infcnl enuac, wti teNtoa IdmiyCmaycroaesrcue ihn h ainl nent opn oprt tutr. I ageae teisrnebsns hswre otvr n grgt, h nuac uies a okd u ey wl. Bti hs be aoewysre. Sm mjrmsae el u t ant en n-a tet oe ao itks hv be md drn tedcd,bt i pout adpronl ae en ae uig h eae oh n rdcs n esne. W eprecdsgiiatpolm fo ()asrt oeain e xeine infcn rbes rm 1 uey prto iiitdi 16,()te17 epnino Hm ad ntae n 99 2 h 93 xaso f oe n Atmbl ubnat mreigit teMai Foiaae, uooies ra uo aktn no h im, lrd ra ()asilursle aito rnig arneet ad() 3 tl neovd vain fotn ragmn, n 4 orWre Cmesto oeaini Clfri,wihw u okrs opnain prto n aiona hc e bleertisa itrsigptniluo cmlto o a eiv ean n neetn oeta pn opein f rognzto nwi pors. I i cmotn t b i a eraiain o n rges t s ofrig o e n
berkshirehathaway.com/letters/1977.html 2/7

2/6/13

Chairman's Letter - 1977

bsns weesm msae cnb md adytaqie uies hr oe itks a e ae n e ut stsatr oealpromnecnb ahee. I asne aifcoy vrl efrac a e civd n es, ti i teopst cs fo ortxiebsns weeee hs s h poie ae rm u etl uies hr vn vr go mngmn poal cnaeaeol mds rsls ey od aaeet rbby a vrg ny oet eut. Oeo telsosyu mngmn hsland-ad n f h esn or aaeet a ere n, ufruaey smtmsr-ere -i teiprac o big notntl, oeie eland s h motne f en i bsnse weetiwnspealrte ta hawns n uiess hr alid rvi ahr hn edid. I 17 tewnsi isrneudrrtn wr surl n 97 h id n nuac newiig ee qaey bhn u. Vr lrert icesswr efce truhu eid s ey ag ae nrae ee fetd hogot teidsr i 17 t ofe tedssru udrrtn h nuty n 96 o fst h iatos newiig rslso 17 ad17. Bt bcueisrneplce eut f 94 n 95 u, eas nuac oiis tpclyaewitnfroeya pros wt piigmsae yial r rte o n-er eid, ih rcn itks cpbeo creto ol uo rnwl i ws17 bfr te aal f orcin ny pn eea, t a 97 eoe h fl ipc wsfl uo erig o toeerirrt ul mat a et pn anns f hs ale ae icess nrae. Tepnuu nwi bgnigt sigteohrwy W h edlm o s einn o wn h te a. e etmt ta cssivle i teisrneaesi wihw siae ht ot novd n h nuac ra n hc e oeaers a coet 1 prmnh Ti i det cniuu prt ie t ls o % e ot. hs s u o otnos mntr ifainafcigtecs o rpiighmn ad oeay nlto fetn h ot f earn uas n poet,a wl a oilifain,abodnn dfnto rpry s el s sca nlto raeig eiiin b sceyadjre o wa i cvrdb isrneplce. y oit n uis f ht s oee y nuac oiis Uls rtsrs a acmaal 1 prmnh udrrtn nes ae ie t oprbe % e ot, newiig poisms srn. Rcnl tepc o rt icesshs rft ut hik eety h ae f ae nrae a soe daaial,adi i orepcainta udrrtn lwd rmtcly n t s u xetto ht newiig mrisgnrlywl b dciigb tescn hl o te agn eeal il e elnn y h eod af f h ya. er W ms aangv cei t Pi Lece getyasse e ut gi ie rdt o hl ish, ral sitd b Rln Mle i Udrrtn adBl Losi Cam,fra y oad ilr n newiig n il yn n lis o n etariayudrrtn aheeeti Ntoa Idmiys xrodnr newiig civmn n ainl nent taiinlat adgnrllaiiybsns drn 17. rdtoa uo n eea iblt uies uig 97 Lrevlm gishv be acmaidb eclet ag oue an ae en copne y xeln udrrtn mrisfloigcnrcino wtdaa b mn newiig agn olwn otato r ihrwl y ay cmeiosi tewk o te17-5cii pro. Tee opttr n h ae f h 947 rss eid hs cniin wl rvrebfr ln. I tematm,Ntoa odtos il ees eoe og n h enie ainl Idmiysudrrtn poiaiiyhsicesddaaial nent newiig rftblt a nrae rmtcly ad i adto,lresm hv be md aalbefr n, n diin ag us ae en ae vial o ivsmn. A mresloe adrtsbcm iaeut,w netet s akt osn n ae eoe ndqae e aanwl fc tecalneo pioohclyacpig gi il ae h hleg f hlspial cetn rdcdvlm. Uuulmngra dsiln wl b rqie, eue oue nsa aaeil icpie il e eurd a i rn cutrt nra isiuinlbhvo t ltte s t us one o oml ntttoa eair o e h ohrflo tk aa bsns -ee a foihpie. te elw ae wy uies vn t ols rcs Orrisrnedprmn,mngdb Gog Yug u enuac eatet aae y ere on, ipoe isudrrtn promnedrn 17. Atog te mrvd t newiig efrac uig 97 lhuh h cmie rto(e dfnto o pg 1)o 171ws obnd ai se eiiin n ae 2 f 0. a ustsatr,istedwsdwwr truhu teya. I naifcoy t rn a onad hogot h er n adto,risrnegnrtsuuulyhg fnsfr diin enuac eeae nsal ih ud o ivsmn a apretg o peimvlm. netet s ecnae f rmu oue A Hm adAt,Jh Swr cniudt mk pors o t oe n uo on ead otne o ae rges n alfot. Jh wsabtlfedpooinsvrlyasao l rns on a ateil rmto eea er g we Hm adAt udrrtn wsaahi rdikadte hn oe n uos newiig a ws n e n n h cmayfcdpsil etnto. Udrhsmngmn i opn ae osbe xicin ne i aaeet t cretyi sud poial,adgoig urnl s on, rftbe n rwn. Jh Rnwl hmsaeoeainnwcnit o fv on igats oett prto o osss f ie cmais wt Kna Fr adCsat Cmaybcmn opne, ih ass ie n auly opn eoig oeainllt i 17 udrtedrcino FodTyo. prtoa ae n 97 ne h ieto f ly alr
berkshirehathaway.com/letters/1977.html 3/7

2/6/13

Chairman's Letter - 1977

Tehmsaecmaishdntpeimvlm o $3mlin u h oett opne a e rmu oue f 2 ilo, p fo $. mlinjs treyasao Alfu cmaista rm 55 ilo ut he er g. l or opne ht oeae truhu teya ahee cmie rto blw10 prtd hogot h er civd obnd ais eo 0, wt Crhse Csat Cmay a 9.,telae. I ih onukr auly opn, t 38 h edr n adto t atvl spriigteohrfu hmsae diin o ciey uevsn h te or oett oeain,Jh Rnwl mngsteoeain o Crhse prtos on igat aae h prtos f onukr wihhsrcre cmie rto blw10i sxo issvn hc a eodd obnd ais eo 0 n i f t ee fl yaso eitnead fo asadn sati 17,hs ul er f xsec n, rm tnig tr n 90 a gont b oeo telaigisrnecmaisoeaigi rw o e n f h edn nuac opne prtn n Nbak uiiigtecnetoa idpnetaec sse. ersa tlzn h ovninl needn gny ytm Lkln Fr adCsat Cmay mngdb JmSook,ws aead ie n auly opn, aae y i tdla a tewne o teCara Cpi 17 fraheigtelws h inr f h himns u n 97 o civn h oet ls rtoaogtehmsaecmais Ali al te os ai mn h oett opne. l n l, h hmsaeoeaincniust mk ecletpors. oett prto otne o ae xeln rges Tenws adto t orisrnegopi Cpes h eet diin o u nuac ru s yrs IsrneCmayo SuhPsdn,Clfri. Ti Wre nuac opn f ot aaea aiona hs okrs Cmesto isrrwsprhsdfrcs i tefnldy o opnain nue a ucae o ah n h ia as f 17 ad teeoe isapoiae$25mlino vlm fr 97 n, hrfr, t prxmt 1. ilo f oue o ta ya wsnticue i orrsls CpesadNtoa ht er a o nldd n u eut. yrs n ainl IdmiyspeetClfri Wre Cmesto oeain nent rsn aiona okrs opnain prto wl ntb cmie,btwl oeaeidpnetyuiiig il o e obnd u il prt neednl tlzn smwa dfeetmreigsrtge. Ml Tono, oeht ifrn aktn taeis it hrtn Peieto Cpessne16,rn afrtcasoeainfr rsdn f yrs ic 98 us is-ls prto o plchles aet,epoesadonr aie W lo oiyodr, gns mlye n wes lk. e ok fradt wrigwt hm owr o okn ih i. Isrnecmaisofrsadrie plce wihcnb nuac opne fe tnadzd oiis hc a e cpe b ayn. Terol pout aepoie. I i nt oid y noe hi ny rdcs r rmss t s o dfiutt b lcne,adrtsaea oe bo. Teeae ifcl o e iesd n ae r n pn ok hr r n ipratavnae fo taeak,ptns lcto, o motn datgs rm rdmrs aet, oain croaelneiy rwmtra sucs ec,advr ltl oprt ogvt, a aeil ore, t. n ey ite cnue dfeetaint poueislto fo cmeiin osmr ifrnito o rdc nuain rm optto. I i cmopae i croaeana rprs t srs te t s omnlc, n oprt nul eot, o tes h dfeec ta pol mk. Smtmsti i tu ad ifrne ht epe ae oeie hs s re n smtmsi int Btteei n qeto ta tentr o oeie t s. u hr s o usin ht h aue f teisrnebsns mgiisteefc wihidvda h nuac uies anfe h fet hc niiul mngr hv o cmaypromne W aevr fruaet aaes ae n opn efrac. e r ey otnt o hv tegopo mngr ta aeascae wt u. ae h ru f aaes ht r soitd ih s IsrneIvsmns nuac netet Drn teps toyasisrneivsmnsa cs uig h at w er nuac netet t ot (xldn teivsmn i oraflae Bu Ci Sap) ecuig h netet n u fiit, le hp tms hv gonfo $3. mlint $5. mlin Got i ae rw rm 146 ilo o 228 ilo. rwh n isrnersre,poue b orlregi i peimvlm, nuac eevs rdcd y u ag an n rmu oue pu rtie erig,hv acutdfrti ices i ls eand anns ae cone o hs nrae n mreal scrte. I tr,ntivsmn icm o te aktbe euiis n un e netet noe f h IsrneGophsipoe fo $. mlinpetxi 17 t nuac ru a mrvd rm 84 ilo r-a n 95 o $23mlinpetxi 17. 1. ilo r-a n 97 I adto t ti icm fo dvdnsaditrs,w n diin o hs noe rm iied n neet e raie cptlgiso $. mlinbfr tx aotoe elzd aia an f 69 ilo eoe a, bu nqatrfo bnsadteblnefo sok. Oruraie ure rm od n h aac rm tcs u nelzd gi i sok a yaed17 wsapoiaey$4mlinbt an n tcs t ern 97 a prxmtl 7 ilo u ti fgr,lk ayohrfgr o asnl dt (ehda hs iue ie n te iue f ige ae w a n uraie ls o $7mlina teedo 17) sol ntb nelzd os f 1 ilo t h n f 94, hud o e tkntosrosy Ms o orlresokpstosaegig ae o eiul. ot f u ag tc oiin r on t b hl frmn yasadtesoeado orivsmn o e ed o ay er n h crcr n u netet dcsoswl b poie b bsns rslsoe ta pro, eiin il e rvdd y uies eut vr ht eid adntb pie o aygvndy Js a i wudb foih n o y rcs n n ie a. ut s t ol e ols
berkshirehathaway.com/letters/1977.html 4/7

2/6/13

Chairman's Letter - 1977

t fcsudl o sottr popcswe aqiiga etr o ou nuy n hr-em rset hn curn n nie cmay w tiki eulyusudt bcm mseie b opn, e hn t qal non o eoe emrzd y popciena tr erig o rcn ted i erig we rsetv er em anns r eet rns n anns hn prhsn salpee o acmay ie,mreal cmo ucaig ml ics f opn; .. aktbe omn sok. tcs Altl dgeso ilsrtn ti pitmyb ite irsin lutaig hs on a e itrsig BrsieFn Sinn Ascae adHtaa neetn. ekhr ie pnig soits n ahwy Mnfcuigwr mre i 15 t fr BrsieHtaa Ic auatrn ee egd n 95 o om ekhr ahwy n. I 14,o apofracmie bss te hderig atr n 98 n r om obnd ai, hy a anns fe txo ams $8mlinadepoe 1,0 pol a adzn a f lot 1 ilo n mlyd 000 epe t oe lremlstruhu NwEgad I tebsns wrdo ag il hogot e nln. n h uies ol f ta pro te wr a eooi pwros. Freape i ht eid hy ee n cnmc oehue o xml, n ta sm ya erig o IMwr $8mlin(o $. ht ae er anns f B ee 2 ilo nw 27 blin,SfwySoe,$0mlin MneoaMnn,$3 ilo) aea trs 1 ilo, inst iig 1 mlin adTm,Ic,$ mlin Bt i tedcd ilo, n ie n. 9 ilo. u, n h eae floigte15 mre ageaeslso $9 mlin olwn h 95 egr grgt ae f 55 ilo poue a ageaels frBrsieHtaa o $0mlin rdcd n grgt os o ekhr ahwy f 1 ilo. B 16 teoeainhdbe rdcdt tomlsadntwrh y 94 h prto a en eue o w il n e ot hdsrn t $2mlin fo $3mlina tetm o te a huk o 2 ilo, rm 5 ilo t h ie f h mre. S mc frsnl ya sasosa aeut prryl egr o uh o ige er npht s dqae otaas o absns. f uies Eut hlig o orisrnecmaiswt amre qiy odns f u nuac opne ih akt vleo oe $ mlino Dcme 3,17 wr a flos au f vr 5 ilo n eebr 1 97 ee s olw: N.o Sae Cmay o f hrs opn ------- ----------2000 2,0 19693 ,8,5 12438 ,9,0 5260 9,5 3450 2,8 13580 ,0,0 2690 2,0 1080 7,0 9430 3,0 Cs ot Mre akt ------- ------(0 oitd 00s mte) CptlCte Cmuiain,Ic ...$1,0 aia iis omnctos n. .. 099 $1,2 328 Gvrmn EpoesIsrne oenet mlye nuac CmayCnetbePeerd.... opn ovril rfre .... 1,1 947 3,3 303 Gvrmn EpoesIsrne oenet mlye nuac CmayCmo Sok......... opn omn tc ........ 416 ,1 1,1 056 TeItrulcGopo Cmais Ic h nepbi ru f opne, n. 451 ,3 1,8 717 Kie Auiu&Ceia Croain.. 1,1 asr lmnm hmcl oprto . 128 991 ,8 Kie Idsre,Ic ......... asr nutis n. ........ 78 7 609 ,3 Kih-idrNwppr,Ic ..... ngtRde esaes n. ..... 754 ,3 876 ,3 Oiv &Mte Itrainl Ic ... gly ahr nentoa, n. .. 272 ,6 690 ,6 TeWsigo Ps CmayCasB... 1,2 h ahntn ot opn ls .. 068 3,0 341 ------- ------Ttl..................$7,9 oa ................. 183 $3,8 1901 AlOhrHlig ........... l te odns ........... 3,9 496 4,9 192 ------- ------TtlEute ............. $0,8 oa qiis ............. 1689 $8,7 1103 ==== ==== ==== ====

W slc ormreal eut scrte i mc tesm e eet u aktbe qiy euiis n uh h ae wyw wudeaut absns fraqiiini isetrt. a e ol vlae uies o custo n t niey W wn tebsns t b ()oeta w cnudrtn,() e at h uies o e 1 n ht e a nesad 2 wt fvrbeln-empopcs ()oeae b hns ad ih aoal ogtr rset, 3 prtd y oet n cmeetpol,ad()aalbea avr atatv pie optn epe n 4 vial t ey trcie rc. W odnrl mk n atmtt byeute fratcptd e riaiy ae o tep o u qiis o niiae fvrbesokpiebhvo i tesottr. I fc,i aoal tc rc eair n h hr em n at f terbsns eprec cniust stsyu,w wloe hi uies xeine otne o aif s e ecm lwrmre pie o sok w ona a opruiyt aqie oe akt rcs f tcs e w s n potnt o cur ee mr o ago tiga abte pie vn oe f od hn t etr rc. Oreprec hsbe ta port prin o tuy u xeine a en ht r-aa otos f rl ottnigbsnse smtmssl i tescrte mres usadn uiess oeie el n h euiis akt a vr lredsonsfo tepie te wudcmadi t ey ag icut rm h rcs hy ol omn n
berkshirehathaway.com/letters/1977.html 5/7

2/6/13

Chairman's Letter - 1977

ngtae tascin ivligetr cmais eoitd rnatos novn nie opne. Cneunl,bran i bsns onrhp wihsml ae osqety agis n uies wesi, hc ipy r ntaalbedrcl truhcroaeaqiiin cnb o vial iety hog oprt custo, a e otie idrcl truhsokonrhp We pie ae band niety hog tc wesi. hn rcs r aporae w aewligt tk vr lrepstosi prpit, e r iln o ae ey ag oiin n slce cmais ntwt ayitnino tkn cnrlad eetd opne, o ih n neto f aig oto n ntfrsen sl-u o mre,btwt teepcainta o oeeig elot r egr u ih h xetto ht ecletbsns rslsb croain wl tasaeoe xeln uies eut y oprtos il rnlt vr teln tr it crepnigyecletmre vlead h og em no orsodnl xeln akt au n dvdn rslsfronr,mnrt a wl a mjrt. iied eut o wes ioiy s el s aoiy Sc ivsmnsiiilymyhv ngiil ipc o or uh netet ntal a ae elgbe mat n u oeaigerig. Freape w ivse $09mlini prtn anns o xml, e netd 1. ilo n CptlCte Cmuiain drn 17. Erig atiual aia iis omnctos uig 97 anns trbtbe t tesae w prhsdttldaot$. mlinls ya. o h hrs e ucae oae bu 13 ilo at er Btol tecs dvdn,wihcretypoie $000 u ny h ah iied hc urnl rvds 4,0 anal,i rfetdi oroeaigerig fgr. nuly s elce n u prtn anns iue CptlCte psessbt etariaypoete ad aia iis osse oh xrodnr rpris n etariaymngmn. Adteemngmn sil etn xrodnr aaeet n hs aaeet kls xed eulyt oeain adepomn o croaecptl T qal o prtos n mlyet f oprt aia. o prhs,drcl,poete sc a CptlCte on wud ucae iety rpris uh s aia iis ws ol cs i teae o tieorcs o prhs vatesok ot n h ra f wc u ot f ucae i h tc mre,addrc onrhpwudofrn ipratavnae akt n iet wesi ol fe o motn datgs t u. Wiecnrlwudgv u teopruiy-adte o s hl oto ol ie s h potnt n h rsosblt -t mng oeain adcroaersucs w epniiiy o aae prtos n oprt eore, e wudntb al t poiemngmn i ete o toe ol o e be o rvd aaeet n ihr f hs rset eult ta nwi pae I efc,w cnoti a epcs qa o ht o n lc. n fet e a ban bte mngmn rsl truhnncnrlta cnrl Ti etr aaeet eut hog o-oto hn oto. hs i a uotoo ve,btoew bleet b sud s n nrhdx iw u n e eiv o e on. Bnig akn I 17 teIlni Ntoa Bn cniudt aheea n 97 h lios ainl ak otne o civ rt o erig o ast aottretmsta o ms lre ae f anns n ses bu he ie ht f ot ag bns A uul ti rcr wsahee wietebn pi ak. s sa, hs eod a civd hl h ak ad mxmmrtst svr admitie a astpsto aiu ae o aes n anand n se oiin cmiiglwrs adecpinllqiiy Gn Aegfre obnn o ik n xetoa iudt. ee bg omd tebn i 13 wt $5,0. I isfrtfl ya o h ak n 91 ih 2000 n t is ul er f oeain erig aone t $,8. Sneta tm,n nw prto, anns mutd o 872 ic ht ie o e cptlhsbe cnrbtdt tebn;o tecnrr,sne aia a en otiue o h ak n h otay ic orprhs i 16,dvdnso $0mlinhv be pi. u ucae n 99 iied f 2 ilo ae en ad Erig i 17 aone t $. mlin mr ta ahee b anns n 97 mutd o 36 ilo, oe hn civd y mn bnstoo tretmsissz. ay ak w r he ie t ie Lt ls ya Gn,nw8 adsilrnigabnig ae at er ee o 0 n tl unn akn oeainwtotpe,akdta ascesrb bogti. prto ihu er se ht ucso e ruh n Acrigy PtrJfry frel PeietadCif codnl, ee efe, omry rsdn n he EeuieOfcro Aeia Ntoa Bn o Oaa hsjie xctv fie f mrcn ainl ak f mh, a ond teIlni Ntoa Bn efcieMrh1ta Peietad h lios ainl ak fetv ac s s rsdn n CifEeuieOfcr he xctv fie. Gn cniusi go hat a Cara. W epc a ee otne n od elh s himn e xet cniudscesu oeaina Rcfr laigbn. otne ucsfl prto t okods edn ak Bu Ci Sap le hp tms W aanicesdoreut itrs i Bu Ci Sap, e gi nrae u qiy neet n le hp tms adondapoiaey3 12 a teedo 17. Bu Ci n we prxmtl 6 /% t h n f 97 le hp hdafn ya,erigapoiaey$29mlinfo a ie er ann prxmtl 1. ilo rm oeain ad i adto,hdraie scrte giso prtos n, n diin a elzd euiis an f
berkshirehathaway.com/letters/1977.html 6/7

2/6/13

Chairman's Letter - 1977

$. mlin 41 ilo. Bt WsoFnnilCr. a 8%ondsbiir o Bu oh ec iaca op, n 0 we usday f le Ci Sap,mngdb LusVnet,adSesCnis a9% hp tms aae y oi icni n e ade, 9 ondsbiir,mngdb CukHgis md go pors i we usday aae y hc ugn, ae od rges n 17. SneSeswsprhsdb Bu Ci Sap a te 97 ic e a ucae y le hp tms t h bgnigo 17,petxoeaigerig hv gonfo einn f 92 r-a prtn anns ae rw rm $. mlint $26mlinwt ltl adtoa cptl 42 ilo o 1. ilo ih ite diinl aia ivsmn. Sesahee ti rcr wieoeaigi a netet e civd hs eod hl prtn n n idsr eprecn patclyn ui got. Saeodr nuty xeinig rcial o nt rwh hrhles o BrsieHtaa Ic myoti teana rpr o Bu f ekhr ahwy n. a ban h nul eot f le Ci Sap b rqetn i fo M.Rbr H Br,Bu Ci hp tms y eusig t rm r oet . id le hp Sap,50 SuhEsenAeu,LsAgls Clfri 900 tms 81 ot atr vne o nee, aiona 04. Wre E Bfet Cara arn . uft, himn Mrh1,98 ac 417

berkshirehathaway.com/letters/1977.html

7/7