Doug DavidoffI'm still catching up on my reading. Today, on a train to New York City, I finally had an opportunity to read Warren Buffet's letter to shareholders. Here are some of my favorite insights:
- A lesson on the dangers of commoditization and how prevalent it is -- Here's a telling fact: Of the ten non-oil companies having the largest marketing capitalization in 1965 (titans such as General Motors, Sears, DuPont and Eastman Kodak), only one made the 2006 list.
- An insight virtually any CEO could learn from -- So I've taken the easy route, just sitting back and working through great managers who run their own shows. My only tasks are to cheer them on, sculpt and harden our corporate culture, and make major capital-allocation decisions.
- An insight on a purchase Berkshire made, and instructive of what value creation really is -- It's a business without magic except for that imparted by the people who run it...The result: ISCAR makes money because it enables its customers to make more money. There is no better recipe for continued success.
- Don't miss the section where he talks about the trends impacting newspapers, it's instructional for an executive or salesperson in any industry.
Check it out, it's worth the time to read.