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

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."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
American Express Co101.23 USD7.33
Berkshire Hathaway Inc A278,495.00 USD3.02
The Kraft Heinz Co31.03 USD2.70

About Author

Susan Dziubinski

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

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Member User Agreement        Cookies