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ID:40385415
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页数:3页
时间:2019-08-01
《Berkshire Hathaway Letter 1971》由会员上传分享,免费在线阅读,更多相关内容在学术论文-天天文库。
1、BerkshireHathawayLetter1971TotheStockholdersofBerkshireHathawayInc.:Itisapleasuretoreportthatoperatingearningsin1971,excludingcapitalgains,amountedtomorethan14%ofbeginningshareholders’equity.Thisresult—considerablyabovetheaverageofAmericanindustry—wasachievedinthefaceofin
2、adequateearningsinourtextileoperation,makingclearthebenefitsofredeploymentofcapitalinauguratedfiveyearsago.Itwillcontinuetobetheobjectiveofmanagementtoimprovereturnontotalcapitalization(longtermdebtplusequity),aswellasthereturnonequitycapital.However,itshouldberealizedtha
3、tmerelymaintainingthepresentrelativelyhighrateofreturnmaywellprovemoredifficultthanwasimprovementfromtheverylowlevelsofreturnwhichprevailedthroughoutmostofthe1960’s.TextileOperationsWe,incommonwithmostofthetextileindustry,continuedtostrugglethroughout1971withinadequategro
4、ssmargins.Strongeffortstohammerdowncostsandacontinuoussearchforlessprice-sensitivefabricsproducedonlymarginalprofits.However,withouttheseeffortswewouldhaveoperatedsubstantiallyinthered.Employmentwasmorestablethroughouttheyearasourprogramtoimprovecontrolofinventoriesachiev
5、edreasonablesuccess.Asmentionedlastyear,KenChaceandhismanagementgrouphavebeenswimmingagainstastrongindustrytide.Thisnegativeenvironmenthasonlycausedthemtointensifytheirefforts.Currentlywearewitnessingamildindustrypickupwhichweintendtomaximizewithourgreatlystrengthenedsale
6、sforce.Withtheimprovementnowseeninvolumeandmixofbusiness,wewouldexpectbetterprofitability—althoughnotofadramaticnature—fromourtextileoperationin1972.InsuranceOperationsAnunusualcombinationoffactors—reducedautoaccidentfrequency,sharplyhighereffectiveratesinlargevolumelines
7、,andtheabsenceofmajorcatastrophes—producedanextraordinarilygoodyearforthepropertyandcasualtyinsuranceindustry.Wesharedinthesebenefits,althoughtheyarenotwithouttheirnegativeconnotations.Ourtraditionalbusiness—andstillourlargestsegment—isinthespecializedpolicyornon-standard
8、insured.Whenstandardmarketsbecometightbecauseofunprofitableindustryunderwriting,weexperiencesubs
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