From Berkshire Hathaway’s 50th annual shareholder letter:

If you’ve attended our annual meetings, you know Charlie has a wide-ranging brilliance, a prodigious memory, and some firm opinions. I’m not exactly wishy-washy myself, and we sometimes don’t agree. In 56 years, however, we’ve never had an argument. When we differ, Charlie usually ends the conversation by saying: “Warren, think it over and you’ll agree with me because you’re smart and I’m right.


From my perspective, though, Charlie’s most important architectural feat was the design of today’s Berkshire. The blueprint he gave me was simple: Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.

Buffett also offers “Advice on the Choice of a Partner” in the preface to the outstanding Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger:

Look first for someone both smarter and wiser than you are. After locating him (or her), ask him not to flaunt his superiority so that you may enjoy acclaim for the many accomplishments that sprang from his thoughts and advice. Seek a partner who will never second-guess you nor sulk when you make expensive mistakes.

Look also for a generous soul who will put up his own money and work for peanuts. Finally, join with someone who will constantly add to the fun as you travel a long road together. All of the above is splendid advice. (I’ve never scored less than an A in self-graded exams.) In fact, it’s so splendid that I set out in 1959 to follow it slavishly. And there was only one partner who fit my bill of particulars in every way-Charlie.

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