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In this context, Warren Buffett’s annual letter in 1996 made an interesting point.

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Warren Buffett’s annual letter in 1983 notes that: “I was taught to favour tangible assets and to shun businesses whose value depended largely upon economic goodwill.

This bias caused me to make many important business mistakes of omission, although relatively few of commission.”

Warren Buffett’s annual letter of 2017 noted: “Though markets are generally rational, they occasionally do crazy things.

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Warren Buffett’s annual letter in 1986 noted: “if there’s a lot of technology, we won’t understand it”.

On the contrary, this doesn’t mean Buffett was inflexible concerning technology.

In Warren Buffett’s annual letter, 2014, he noted: “At Berkshire, we prefer owning a non-controlling but substantial portion of a wonderful company to owning 100% of a so-so business.

It’s better to have a partial interest in the Hope Diamond than to own all of a rhinestone”.

Warren Buffett’s annual letter in 2005 noted, “Long ago Sir Isaac Newton gave us three laws of motion.

It’s a genius work but Sir Isaac’s talents didn’t extend to investing.

Warren Buffett’s annual letter, in 2017, illustrated this point as well.

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The dips witnessed price falling by 37% or more in a span of just a few weeks.

The compounding nature of time and returns are best described in Warren Buffett’s annual letter of 1989.

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“Our aversion to leverage has dampened our returns over the years.

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