Warren Buffett's 1988 letter demonstrates the power of combining exceptional businesses with exceptional management through his "Sainted Seven" companies that achieved an extraordinary 67% return on equity capital. This letter marks Buffett's famous Coca-Cola investment and articulates his "forever investing" philosophy - holding great businesses indefinitely rather than trading them.

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Warren Buffett's 1989 letter marks 25 years of Berkshire Hathaway under his leadership with a remarkable section on "Mistakes of the First Twenty-five Years." This candid self-reflection reveals Buffett's evolution from "cigar butt" investing - buying cheap, mediocre businesses for quick profits - to his mature philosophy of buying wonderful companies at fair prices.

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Warren Buffett's 1987 letter, written after Black Monday's historic crash, transforms market chaos into investment wisdom through his famous Mr. Market allegory. Instead of viewing volatility as threatening, Buffett teaches us to see it as opportunities created by other investors' emotional swings.

The letter's centerpiece is Ben Graham's Mr. Market concept - imagining market prices as daily offers from an emotionally unstable partner. This reframes market volatility from something to fear into something to exploit, emphasizing that Mr. Market is "there to serve you, not guide you."

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Warren Buffett's 1986 letter introduces two of investing's most enduring concepts: economic moats and contrarian market psychology. Despite Berkshire's 26.1% gain, Buffett focuses on the growing challenge of deploying capital in an expensive market.

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Warren Buffett's 1985 letter delivers brutal honesty about business realities alongside timeless investment wisdom. Despite Berkshire's spectacular 48.2% gain, Buffett warns that size will inevitably dampen future returns - a mathematical inevitability he calls the "iron law of business."

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Goodwill and Its Amortization (1984 Berkshire Hathaway Letter, Appendix) In this powerful appendix, Warren Buffett breaks down the difference between accounting Goodwill and economic Goodwill. Accounting Goodwill is created when a company pays more for a business than its tangible assets are worth — and then amortizes that difference over time, even though the real economic value may be growing.

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In the 1984 shareholder letter, Warren Buffett dismantles several common corporate practices — like stock splits, excessive trading, and overvalued acquisitions — arguing they often harm long-term shareholders.

He stresses that issuing undervalued stock is equivalent to selling the business too cheap, diluting long-term value. Similarly, stock splits attract short-term traders, not thoughtful owners, distorting shareholder quality and market behavior.

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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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In the 1982 letter, Warren Buffett emphasizes the power of owning small stakes in high-quality businesses rather than overpaying for full control. He critiques the flawed logic behind high-premium acquisitions, likening them to “kissing toads,” and praises managers who resist empire-building in favor of shareholder returns.

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