Buffett says focus on the forest, forget the trees

"A few of our trees are diseased and unlikely to be around a decade from now," admits Warren Buffett, "Many others, though, are destined to grow in size and beauty."

Susan Dziubinski 26 February, 2019 | 6:00PM
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In his annual letter to shareholders, Berkshire Hathaway Inc's (BRK.A) Warren Buffett explained why investors should focus on the forest rather than the trees and commented on Berkshire's sizable cash stake. Here are a few takeaways from this year's tome.

'Focus on the Forest--Forget the Trees'

Buffett notes that investors too often focus on the details of Berkshire's individual business, which he calls their "economic trees." Given that Berkshire owns a variety of businesses--"ranging from twigs to redwoods"--he argues for looking at the entire "forest."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
American Express Co173.45 USD3.56Rating
Berkshire Hathaway Inc Class A418,931.95 USD1.66Rating
The Kraft Heinz Co36.35 USD0.60Rating

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for Morningstar.com.

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