1996 by fdjerue7eeu

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									1996
Berkshire Corporation - Chairman 1996 letter to shareholders "
- Warren Buffett
To all shareholders:
1996, the Company's net worth grew by 36.1%, about 62 million, but net
earnings per share grew by 31.8% only because of last year, the way we issue new
shares acquired FlightSafety International Inc., while also issued a number of
additional B Class A common stock *, total over the past 32 years, that is, since
present management took over, the net earnings per share growth from the original 19
yuan to the current 19,011 dollars, the annual compound growth rate of about 23.8%.
Based on technical reasons, we need to be financial statements for 1995 renumbering,
this allows me to show once again shocked by the accounting camera cheat codes,
believe me, I will try to be brief.
Re-edited because the original is listed as being of investment GEICO Insurance in
January 2, 1996 became a Berkshire 100% owned subsidiary, from an economic point
of view, considering significant tax incentives and other advantages, our original the
end of 1995 held 51% of GEICO shares and their value in two days after we get the
remaining 49% interest in a substantial increase, however, this kind of gradual
acquisition, but with generally accepted accounting principles requires us to obtain
100% equity interest in, the 51% off on the reasons for the cost of the reverse to be
reduced, making the book value was reduced to 478.4 million U.S. dollars, this result
makes 51% of the original book value of equity was not only well below the market
price to acquire 49% stake, is also lower than We hold 49% stake later this book
value.
But in addition to reducing the net just mentioned, we twice in 1996, shares issued at
a premium, the first cash injection in the May issue of Class B common stock, the
second is in the December issue of A-and B-class ordinary shares, the company
acquired international flight safety, in general, more than three non-Business for the
last year, 31.8% of the company's net worth per share growth rate of the
net effect of less than 1%.
The reason why this year I have repeatedly stressed that the net per share because it is
about the same as last year, substantial progress, but like Charlie and I again remind
you of, Berkshire, book value is not really important, but real value, most recently
with you that in June this year, the Company issued Class B common stock, a
shareholder in the manual were sent to you, we will not only be defined for some
terms, such as real value, but also expose us corporate purposes.
Over the years, we are ahead of the annual report to show that the purpose here we
have occasionally referred to shareholders manual, so that we can not repeat the
explanation of some commonly used terms, for example if you want to know what is
the real value, suggest that you It can then flick through the pages of this manual
section 64,65.
From the chart we can see, we share investment in 1996 increased by 29%, rather than
the investment earnings of this sector increased by 63.2%, our goal is to make the two
columns of numbers at a reasonable speed and stability grow, of course, if
occasionally able to unreasonable rate surge is not bad.
But looking 的 expectations could be both realistic interference factors, first of all,
we Hennan then Da Dao Huo Jie Jin Guoqunayang Gao's Chengzhangsudu
because of Berkshire's capital Guimoshizai now is Taipangdaliao,
Shishishangyi we are the capitalization U.S. companies already ranked in the top ten,
too much candy and money will affect the overall rate of return, the second point, no
matter how the speed of growth, would definitely be difficult to smooth the speed
increase, the first column figures will easily fluctuate with the stock market
environment, the second column of numbers will follow a super disaster reinsurance
business change change in earnings instability.
In this table, the shareholders are classified as designated funds donated by the second
column items, although we w

								
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