1971年巴菲特致股东的信
2012-04-15 23:29阅读：
致股东： 今天很高兴报告我们1971年的营业利润，扣除资本利得，我们的股东权益比年初增加了14%。这个结果大大高于美国工业平均值，而且是在我们纺织业务对利润贡献不大的情况下，这些都归功于我们五年前开始的业务重组。我们管理层的主要目标仍然是提高资产报酬率和净资产收益率。但是我们应该意识到保持这样高的投资回报率比较困难，因为整个60年代的投资回报都不是很高。
纺织业务
和大多数纺织企业一样，我们71年的业务经营比较困难，利润率也不理想。管理层努力减低成本，生产一些价格不敏感利润低的产品。然而，如果没有这些努力我们可能会陷入亏损的状态。这一年制订计划减少库存起到了比较好的效果，雇佣也比较稳定。
正如去年说的，Ken
Chace和他的管理层在这样一个不景气的行业中苦苦抗争。大环境不好他们付出了更加大的努力。最近我们加强销售力量的努力产生了一些正面作用。随着我们纺织业务的改善，我们期望在明年纺织业务会有更好的利润率（尽管不会太高）。
保险业务
交通事故的降低以及今年没有发生特大灾难，这两个因素加在一起使我们的财产人寿保险业务今年表现异常的好，虽然还存在一些不足，我们还是因此受惠。我们的传统业务（仍然是最大的一部分）是一些处在特殊政策和非标准化下的保险业务。当标准化市场由于利润较低而变得很难经营时，我们的业务增长了很多。这是几年之前的情况，70和71年也是这样。
既然保险业已经变成了高盈利的行业，更多的公司在这一领域寻找机会，在一些地区投保费用也发生了下降。我们继续保持盈利状态主要归功于我们的主要目标，但是这意味着72年国民保险公司的业务将发生重大下降。Jack
Ringwalt 和Phil Liesche 继续指导这些业务的进行。再保险业务（在两年中实现了很快的发展，这都要归功于George
Young）也是相同的状况。我们在69年进入再保险领域，那时利率上升很快，市场容量也变得紧张。再保险业务71年表现的非常好。如今利率下降，又出现了很多强大的竞争对手。为了应对不利的环境，我们希望72年的业务有所缩减。我们不会为我们的保险业务设置目标（再保险业务也是如此），因为如果忽略盈利，任何虚幻的目标都可以实现。当出现大灾难和保险索赔上升时，我们希望我们有能力调集足够的资金来处理这些问题。
我们'home-state'保险业务在1970年开始，这一年我们建立了Cornhusker Casualty
公司。迄今为止，公司在市场或是保费水平上都发展的很好。因此我们又建立了两家公司 Lakeland Fire &
Casualty 公司（明尼苏达州1971） 和 Texas United Insurance
（1972）。这几家公司都会在各自领域努力发展，为投保人提供大公司的水准，和小公司一样的方便、灵活的服务。John Ringwalt
统一管理这几家公司。他工作勤奋又很有天分，把自己的想法付诸实践。这些'home-state'
公司现在仍然比较小，1971年只有150万的保费收入。我们估计72年保费收入会翻倍。我们将建立更好的考核标准，对绩效进行评估。
71年收购Home &
Automobile保险公司（总部芝加哥）是我们的一项重大工作。公司由Victor
Raab创建，公司开始时是由Victor投资的一家汽车保险公司起家，71年赚取了750万的保费。Vic和 Jack Ringwalt
，Gene
Abegg一样很有天赋，而且对工作充满激情。这三个人把公司不断发展壮大，在把公司卖给了伯克希尔之后，他们得到了现金，现在仍然痴迷于自己的工作，并因此感到自豪。Vic创立公司后公司实现了快速发展，但是他的才能受制于资金的缺乏。我们为公司提供了大量的资金，这将使公司建立分支机构拓展业务，向其他人口稠密地区拓展。
总之，把Home and
Auto公司业务增加到我们的业务中，将会抵消我们National Indemnity
Company的再保险业务的下降，这样做是值得商榷的。但是，我们在70年和71年业务的增长所带来的额外收入将会使我们在未来几年受益。这样，尽管保费收入不尽人意，我们保险业务的前景还是相当好的。
银行业
我们的银行子公司（Illinois National Bank & Trust
Company）在利润上继续保持着比较好的发展势头，1971年我们的税后利润超过了平均存款2%（税后2% after tax on
average
deposits），这些都是在我们（1）没有借款（除了偶然性的储备平衡交易），（2）保持高于平均水平的流动性，（3）贷款损失率低于平均水平，（4）利用了超过了50%的定期存款，在一年产生了最大的利率。这些成就都要归功于Gene
Abegg 和Bob Kline卓越的管理。在1971年，贷款和投资产生的利率是很低的。最近几年，Illinois
National的存款大大高于行业平均值。例如，存款所付利息已经从1969年的170万增加到了1971年的270万。但是，银行的盈利仍然保持着。这一年我们付出了很大的努力，也取得了很好的效果。现在的利率比71年还低，银行业72年的获利比较困难。Illinois
National的存款收入主要来自于定期存款，但现在产生的利润比较少。要想使我们72年的利润达到71年的水平，就需要做好成本控制。
金融
因为71年我们保险附属子公司的增长，我们重组了伯克希尔的银行贷款，来为我们的子公司提供额外的资本。这项财务政策效果显得特别正确，尤其是当我们今年购买Home
& Auto
公司时。我们的保险和银行子公司保持着良好的公众信用。我们的基本信条是建立一个强大的金融体系，使我们能够尽到应尽的义务。这样，我们将会继续推进我们的金融布局，最大限度的增强我们的金融力量，使子公司可以达到母公司的水平。
Warren E. Buffett
Chairman of the Board
March 13,1972
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To the Stockholders of Berkshire Hathaway Inc.:
It is a pleasure to report that operating earnings in 1971,
excluding capital gains, amounted to more than 14% of beginning
shareholders' equity.This result--considerably above the average of
American industry--was achieved in the face of inadequate earnings
in our textile operation,making clear the benefits of redeployment
of capital inaugurated five years ago.It will continue to be the
objective of management to improve return on total capitalization
(long term debt plus equity), as well as the return on equity
capital. However, it should be realized that merely maintaining the
present relatively high rate of return may well prove more
difficult than was improvement from the very low levels of return
which prevailed through out most of the 1960's.
Textile Operations
We, in common with most of the textile industry, continued to
struggle throughout 1971 with inadequate gross margins.Strong
efforts to hammer down costs and a continuous search for less
price-sensitive fabrics produced only marginal
profits.
However,without these efforts we would have operated
substantially in the red.Employment was more stable throughout the
year as our program to improve control of inventories achieved
reasonable success.
As mentioned last year,Ken Chace and his management group
have beenswimming against a strong industry tide. This negative
environment has only caused them to intensify their
efforts.Currently we are witnessing a mild industry pick up which
we intend to maximize with our greatly strengthened sales force.
With the improvement now seen in volume and mix of business, we
would expect better profitability--although not of a dramatic
nature--from our textile operation in 1972.
Insurance Operations
An unusual combination of factors--reduced auto accident
frequency, sharply higher effective rates in large volume lines,
and the absenceof major catastrophes--producedan extraordinarily
good year for the property and casualty insurance industry.We
shared in these benefits,although they are not without their
negative connotations. Our traditional business--and still our
largest segment--is in the specialized policy or non- standard
insured.When standard markets become tight because of unprofitable
industry underwriting,we experience substantial volume increases as
producers look to us.This was the condition several years ago,and
largely accounts for the surge of direct volume experienced in 1970
and 1971.
Now that underwriting has turned very profitable on an
industry-wide basis,more companies are seeking the insureds they
were rejecting a short while back and rates are being cut in some
areas.
We continue to have underwriting profitability as our primary
goal and this may well mean a substantial decrease in National
Indemnity's direct volume during 1972.Jack Ringwalt and Phil
Liesche continue to guide this operation in a manner matched by
very few in the business.Our reinsurance business,which has been
developed to a substantial operation in just two years by the out
standing efforts of GeorgeYoung,faces much the same situation.We
entered the reinsurance business late in 1969 at a time when rates
had risen substantially and capacity was tight. The
reinsurance industry was exceptionally profitable in 1971,and we
are now seeing rate-cutting as well as the formation of
well-capitalized aggressive new competitors. These lower rates are
frequently accompanied by greater exposure. Against this background
we expect to see our business curtailed somewhat in 1972. We set no
volume goals in our insurance business generally--and certainly not
in reinsurance--as virtually any volume can be achieved if
profitability standards are ignored.When catastrophes occur and
underwriting experience sours,we plan to have the resources
available to handle the increasing volume which we will then expect
to be available at proper prices.
We inaugurated our 'home-state' insurance operation in 1970
by the formation of Cornhusker Casualty Company. To date, this has
worked well from both a marketing and an underwriting standpoint.We
have the refore further developed this approach by the formation of
Lakeland Fire & Casualty Company in Minnesota during 1971, and
Texas United Insurancein 1972. Each of these companies will devote
its entire efforts to a single state seeking to bring the agents
and insureds of its area a combination of large company capability
and small company accessibility and sensitivity. John Ringwalt has
been in overall charge of this operation since inception.Combining
hard work with imagination and intelligence,he has transformed an
idea into a well organized business.The 'home-state' companies are
still very small,accounting for a little over $1.5 million in
premium volume during 1971. It looks as though this volume will
more than double in 1972 and we will develop a more creditable base
upon which to evaluate underwriting performance.
A highlight of 1971 was the acquisition of Home &
Automobile Insurance Company,located in Chicago.This company was
built by Victor Raab from a small initial investment into a major
auto insurer in Cook County,writing about $7.5 million in premium
volume during 1971.Vic is cut from the same cloth as Jack Ringwalt
and GeneAbegg, with a talent for operating profitably accompanied
by enthusiasm for his business.These three men have built their
companies from scratch and, after selling their ownership position
for cash, retain every bit of the proprietary interest and pride
that they have always had.
While Vic has multiplied the original equity of Home &
Auto many times since its founding,his ideas and talents have
always been circumscribed by his capital base.We have added capital
funds to the company, which will enable it to establish branch
operations extending its highly-concentrated and on-the-spot
marketing and claims approach to other densely populated
areas.
All in all, it is questionable whether volume added by Home
& Auto, plus the 'home-state' business in 1972, will offset
possible declines in direct and reinsurance business of National
Indemnity Company.However,our large volume gains in 1970 and 1971
brought in additional funds for investment at a time of high
interest rates,which will be of continuing benefit in future years.
Thus, despite the unimpressive prospects regarding premium volume,
the outlook for investment income and overall earnings from
insurance in 1972 is reasonably good.
Banking Operations
Our banking subsidiary, The Illinois National Bank &
Trust Company, continued to lead its industry as measuredby
earnings asapercentage of deposits. In 1
