This morning, Berkshire Hathaway released its 2014 shareholder letter . Warren Buffett's letter, always closely followed, was particularly anticipated this year. Indeed, as this year will mark a half-century of Berkshire Hathaway under "current management," Buffett had promised two "looking back/looking forward" analyses, one from his pen and one from that of his partner, Berkshire Vice Chairman Charlie Munger.
Here are some of the key quotes from this year's letter. (I've identified those that come from Munger.)
Buffett's successor: one of two men?
With Buffett now 84, Berkshire's succession plan is a matter of intense speculation. His latest comments on the matter (my emphasis):
Who might the successor be? Munger offers a clue that appears to narrow it down to two individuals (my emphasis):
Berkshire Hathaway Reinsurance head Ajit Jain is 63, and Berkshire Hathaway Energy CEO Greg Abel is 52. In terms of age and expected tenure, Abel has the advantage .
The timing of the elusive Berkshire dividend
Another recurring debate in the financial media is the value and timing of a potential Berkshire dividend -- although, as we shall see, it's not much of a debate among shareholders. Buffett provides his first time-bound guidelines:
That doesn't appear to be a problem for current shareholders:
Munger's contribution to Berkshire
Although he has remained in Buffett's shadow over the past 50 years, it's almost impossible to overstate Munger's contribution to Berkshire Hathaway. Buffett pays tribute to it:
The 4 keys to Berkshire's success
Munger returns Buffett's compliment:
The Berkshire system: 15 rules for building a world-leading conglomerate
What is this "Berkshire system" Munger refers to, which has been at the core of Berkshire's unparalleled success? He codifies it in 15 points:
The continued success of Berkshire after Buffett
Will the "Berkshire system" ensure continued success, despite its size, and after Buffett? Buffett says yes:
Munger concurs:
These quotes provide some of the important lessons from this year's letter, but the document is extraordinarily rich in business and investing lessons and will be analyzed and debated for years to come -- including here on Fool.com. Be sure to check back in the next few days for more coverage of the 2014 Berkshire Hathaway shareholder letter.
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The article 6 Quotes From Berkshire Hathaway's Greatest Ever Shareholder Letter originally appeared on Fool.com.
Alex Dumortier, CFA , has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
