巴菲特1968年致股东的信（英文版）

Here is the full text of Buffett's letter to shareholders in 1968:

Our controlled companies turned in a decent performance during 1968. Diversified Retailing Company Inc. (80% owned) and Berkshire Hathaway Inc. (70% owned) had combined after - tax earnings of over $5 million.

Particularly outstanding performances were turned in by Associated Cotton Shops, a subsidiary of DRC run by Ben Rosner, and National Indemnity Company, a subsidiary of B - H run by Jack Ringwalt. Both of these companies earned about 20% on capital employed in their businesses. Among Fortune's “500” (the largest manufacturing entities in the country, starting with General Motors), only 37 companies achieved this figure in 1967, and our boys outshone such better - known companies as IBM, General Electric, General Motors, Procter & Gamble, DuPont, Control Data, Hewlett - Packard, etc.

I still sometimes get comments from partners like: "Say, Berkshire is up four points - that's great!" or "What's happening to us, Berkshire was down three last week?" Market price is irrelevant to us in the valuation of our controlling interests. We valued B - H at 25 at year - end 1967 when the market was about 20 and 31 at year - end 1968 when the market was about 37. We would have done the same thing if the markets had been 15 and 50 respectively. ("Price is what you pay. Value is what you get.") We will prosper or suffer in controlled investments in relation to the operating performances of our businesses - we will not attempt to profit by playing various games in the securities markets.

Our Box Loom Division continued to present severe operating problems, as it has over many years. Our history in this area shows occasional periods of strong prices, regularly followed by heavy imports of goods, severe price - cutting and curtailed operations. As a result of a careful survey of the future market for box loom greige goods and the investment required to service this market, it was decided to phase out our operation of such greige goods during 1969.

The emphasis continues to be on underwriting at a profit rather than volume simply for the sake of size. National Indemnity Company and National Fire & Marine Insurance Company continue their splendid operating performance under Jack Ringwalt.

Berkshire purchased Sun Newspapers and Blackers Printing Company. This marks its entry into the publishing business.

Finally, enclosed are two copies of the Commitment Letter for 1969. One is to be kept by you and one is to be returned to us. You may amend the commitment letter right up to December 31, so get it back to us early and, if it needs to be changed, just let us know by letter or phone. Commitment letters become absolutely final on December 31 - there can be no exceptions to this rule since we turn them over to Peat, Marwick, Mitchell & Co. at that time.

Once again, I urge you to try for our “Partner of the Year” award (it's honorary - no monetary consideration) by getting your commitment letter back to us promptly.

Cordially,

Warren E. Buffett