Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky of Satovsky Asset Management. And on today’s episode of “Seeking Wisdom, Wealth, and Wellness,” I want to talk about a different WWW.
Today was the annual report from Berkshire Hathaway, and we generally own shares for most investors as a reminder of a mindset: What would Warren do? All right, there’s a “D” in there. WWWD – What would Warren do?
As he described it, he’s made maybe 12 great decisions in 58 years that have contributed to the vast majority of his success—which would be one great decision every five years. He doesn’t have to make a decision every day.
He also points out the great difference between gap accounting and operating earnings, showing operating earnings that have been tremendous quarter after quarter. Between $6 and $9 billion. Yet, gap reporting, which reports the fluctuation in marketable securities, people’s emotional perception of the value of securities, has been massively positive and massively negative. And of course, most investors react to that emotional perception of other investors, rather than focusing on the core operating business and seeing operating earnings grow quarter after quarter for decades upon decades. So, when you get jarred by the volatility of financial markets, get back to your mindset of WWWD. What would Warren do? On your path to Wisdom, Wealth, and Wellness.
Have a great day.