Buffett’s letters to shareholders

Only four things really count when making an investment – “a business you understand, favourable long-term economics, able and trustworthy management, and a sensible price tag”. That’s investment, everything else is speculation.

Businesses are run by people and the best people are not necessarily the ones with the flashiest CVs. Buffett singles out Susan Jacques, chief executive of his jewellery retailer Borsheims. “Susan came to Borsheims 25 years ago as a $4-an-hour saleswoman. She’s smart, she loves the business and she loves her associates. That beats having an MBA degree any time.”