Shareholder Letter: 1983 | Equity Issuance

In the 1983 letter, Warren Buffett delivers a masterclass on when — and when not — to issue shares. At the core is a deceptively simple rule: “We will not issue shares unless we receive as much intrinsic business value as we give.” Buffett explains that stock, like cash, is currency. And using undervalued stock to acquire a fairly priced business is equivalent to trading dollar bills for fifty-cent pieces — a destruction of shareholder value.

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