[{"data":1,"prerenderedAt":205},["ShallowReactive",2],{"DlFXI4Eibt_Bn9lrEZz1TYbHCWFZj3IvqwHQSEW-Exc":3,"rgSeHGWvsHE9oWNrJ-tyFN0u-p9ixVBsr2pzT222ovk":194},{"code":4,"msg":5,"data":6},0,"",{"category":7,"tag":11,"hot":39,"new":78,"banner":118,"data":143,"cache":193},[8,9,10],"Agent","OpenAI","LLM",[12,14,17,20,23,25,27,30,33,36],{"title":8,"total":13},39,{"title":15,"total":16},"Google",44,{"title":18,"total":19},"Nvidia",13,{"title":21,"total":22},"Claude",11,{"title":9,"total":24},35,{"title":10,"total":26},85,{"title":28,"total":29},"DeepSeek",9,{"title":31,"total":32},"OCR",1,{"title":34,"total":35},"Chat",7,{"title":37,"total":38},"Generator",116,[40,48,55,64,71],{"id":41,"publish_date":42,"is_original":4,"collection":5,"cover_url":43,"cover_url_1_1":44,"title":45,"summary":46,"author":47},557,"2022-04-29","article_res/cover/7a9b1375ed9bb298154981bae42b794d.jpeg","article_res/cover/afa281dd52bc0454e6735daa8e6b0706.jpeg","Translation and summary of Messari Report [2.8 Kristin Smith, Blockchain Association and Katie Haun, a16z]","We need unity and speed right now.","Translation",{"id":49,"publish_date":50,"is_original":4,"collection":5,"cover_url":51,"cover_url_1_1":52,"title":53,"summary":54,"author":47},531,"2022-05-25","article_res/cover/e8362057f8fa189594c60afdfaaeb6e5.jpeg","article_res/cover/8ea08d0d6fa7eee6b57ed4ec61b61ad6.jpeg","Decentralized Society: Finding Web3’s Soul / Decentralized Society: Finding the Soul of Web3 -7","Decentralization through Pluralism When analyzing ecosystems, it's desirable to measure how decentralized it is.",{"id":56,"publish_date":57,"is_original":32,"collection":58,"cover_url":59,"cover_url_1_1":60,"title":61,"summary":62,"author":63},127,"2024-11-14","#Google #AI Game #World Model #AI Story","article_res/cover/0233a875b7ec2debf59779e311547569.jpeg","article_res/cover/6ffddb6ae4914b3c699493311aa9f198.jpeg","Google Launches \"Unbounded\": A Generative Infinite Character Life Simulation Game","Unbounded: A Generative Infinite Game of Character Life Simulation","Renee's Entrepreneurial Journey",{"id":13,"publish_date":65,"is_original":32,"collection":66,"cover_url":67,"cover_url_1_1":68,"title":69,"summary":70,"author":63},"2025-02-14","#Deep Dive into LLMs #Andrej Karpathy #LLM #Tool Use #Hallucination","article_res/cover/11e858ad6b74dfa80f923d549b62855c.jpeg","article_res/cover/615e1b320f1fc163edc1d2d154a6de33.jpeg","Andrej Karpathy's in-depth explanation of LLM (Part 4): Hallucinations","hallucinations, tool use, knowledge/working memory",{"id":72,"publish_date":73,"is_original":4,"collection":5,"cover_url":74,"cover_url_1_1":75,"title":76,"summary":77,"author":47},579,"2022-04-07","article_res/cover/39387376ba28447af1eb40576b9df215.jpeg","article_res/cover/02727ede8551ed49901d0abe6d6305b7.jpeg","Messari Report Translation and Summary 【1-7 Surviving the Winter】","I’d be more cautious here: 10 year and 10 hour thinking only.",[79,87,95,103,111],{"id":80,"publish_date":81,"is_original":32,"collection":82,"cover_url":83,"cover_url_1_1":84,"title":85,"summary":86,"author":63},627,"2025-03-20","#AI Avatar #AI Video Generation","article_res/cover/d95481358f73924989f8c4ee9c75d1c8.jpeg","article_res/cover/b74bc0fab01f8b6a6aa87696c0c3ed8b.jpeg","DisPose: Generating Animated Videos by Driving Video with Reference Images","DisPose is a controllable human image animation method that enhances video generation.",{"id":88,"publish_date":89,"is_original":32,"collection":90,"cover_url":91,"cover_url_1_1":92,"title":93,"summary":94,"author":63},626,"2025-03-21","#Deep Dive into LLMs #LLM #RL #Andrej Karpathy #AlphaGo","article_res/cover/446553a5c8f8f2f07d97b20eaee84e56.jpeg","article_res/cover/e6c2823409c9b34624064b9acbaca6f1.jpeg","AlphaGo and the Power of Reinforcement Learning - Andrej Karpathy's Deep Dive on LLMs (Part 9)","Simply learning from humans will never surpass human capabilities.",{"id":96,"publish_date":97,"is_original":32,"collection":98,"cover_url":99,"cover_url_1_1":100,"title":101,"summary":102,"author":63},625,"2025-03-22","#Deep Dive into LLMs #LLM #RL #RLHF #Andrej Karpathy","article_res/cover/8da81d38b1e5cf558a164710fd8a5389.jpeg","article_res/cover/96f028d76c362a99a0dd56389e8f7a9b.jpeg","Reinforcement Learning from Human Feedback (RLHF) - Andrej Karpathy's Deep Dive on LLMs (Part 10)","Fine-Tuning Language Models from Human Preferences",{"id":104,"publish_date":105,"is_original":32,"collection":106,"cover_url":107,"cover_url_1_1":108,"title":109,"summary":110,"author":63},624,"2025-03-23","#Deep Dive into LLMs #LLM #Andrej Karpathy #AI Agent #MMM","article_res/cover/a5e7c3d48bb09109684d6513287c661d.jpeg","article_res/cover/d3f22b7c0ab8d82fd2da457a299e0773.jpeg","The Future of Large Language Models - Andrej Karpathy's In-Depth Explanation of LLM (Part 11)","preview of things to come",{"id":112,"publish_date":105,"is_original":32,"collection":113,"cover_url":114,"cover_url_1_1":115,"title":116,"summary":117,"author":63},623,"#Google #Voe #AI Video Generation","article_res/cover/c44062fea0f336c2b96b3928292392c2.jpeg","article_res/cover/a041041c69092ad3db191c5bf3ff981b.jpeg","Trial of Google's video generation model VOE2","Our state-of-the-art video generation model",[119,127,135],{"id":120,"publish_date":121,"is_original":32,"collection":122,"cover_url":123,"cover_url_1_1":124,"title":125,"summary":126,"author":63},160,"2024-10-04","#Philosophy","article_res/cover/496990c49211e8b7f996b7d39c18168e.jpeg","article_res/cover/14dbaa1ade9cb4316d5829423a900362.jpeg","Time","The fungus of the morning does not know the waxing and waning of the moon, and the cicada does not know the seasons; this is a short life. To the south of the state of Chu there is a dark spirit which regards five hundred years as spring and five hundred years as autumn. In ancient times there was a great tree called the Ming which regarded eight thousand years as spring and eight thousand years as autumn; this is a long life.",{"id":128,"publish_date":129,"is_original":32,"collection":130,"cover_url":131,"cover_url_1_1":132,"title":133,"summary":134,"author":63},98,"2024-12-17","#AI Video Generator #Sora #Pika","article_res/cover/3b86e85d03fff4f356a3e4cf2bb329c9.jpeg","article_res/cover/5fa5c20ad0b40f8f544d257c0ef02938.jpeg","Pika 2.0 video generation officially released: effect comparison with Sora","今天，我们推出了Pika 2.0模型。卓越的文字对齐效果。惊人的视觉表现。还有✨场景成分✨",{"id":136,"publish_date":137,"is_original":32,"collection":138,"cover_url":139,"cover_url_1_1":140,"title":141,"summary":142,"author":63},71,"2025-01-14","#Nvidia #World Foundation Model #Cosmos #Physical AI #Embodied AI","article_res/cover/feddf8c832dfb45d28804291f6a42a9e.jpeg","article_res/cover/d6bc2f1186d96b78228c2283a17a3645.jpeg","NVIDIA's Cosmos World Model","Cosmos World Foundation Model Platform for Physical AI",[144,163,188],{"title":8,"items":145},[146,147,155],{"id":104,"publish_date":105,"is_original":32,"collection":106,"cover_url":107,"cover_url_1_1":108,"title":109,"summary":110,"author":63},{"id":148,"publish_date":149,"is_original":32,"collection":150,"cover_url":151,"cover_url_1_1":152,"title":153,"summary":154,"author":63},622,"2025-03-24","#OWL #AI Agent #MAS #MCP #CUA","article_res/cover/cb50ca7f2bf4d1ed50202d7406e1c19a.jpeg","article_res/cover/4aa7aa3badfacf3cc84121334f1050dd.jpeg","OWL: Multi-agent collaboration","OWL: Optimized Workforce Learning for General Multi-Agent Assistance in Real-World Task Automation",{"id":156,"publish_date":157,"is_original":32,"collection":158,"cover_url":159,"cover_url_1_1":160,"title":161,"summary":162,"author":63},620,"2025-03-26","#LLM #Google #Gemini #AI Agent","article_res/cover/53751a6dbbe990b1eb0b63f3b062aed4.jpeg","article_res/cover/031344981f0a212ff82d1f3a64aa5756.jpeg","Gemini 2.5 Pro, claimed to be far ahead of the competition, has been released with great fanfare: comprehensively surpassing other LLMs and topping the global rankings","Gemini 2.5: Our most intelligent AI model",{"title":9,"items":164},[165,172,180],{"id":166,"publish_date":157,"is_original":32,"collection":167,"cover_url":168,"cover_url_1_1":169,"title":170,"summary":171,"author":63},619,"#OpenAI #AI Image Generator #4o #MMM #AR Transformer","article_res/cover/2faffc97fcecf3151552cb0fd3206d89.jpeg","article_res/cover/1133cb4948af44cee2e7fbe79efb69e5.jpeg","The native image function of GPT-4o is officially launched","Introducing 4o Image Generation",{"id":173,"publish_date":174,"is_original":4,"collection":175,"cover_url":176,"cover_url_1_1":177,"title":178,"summary":179,"author":63},434,"2023-07-15","#Anthropic #OpenAI #Google #AI Code Generator #Claude","article_res/cover/e1b6f600a2b9f262a4392684e5f2ce25.jpeg","article_res/cover/6e1772e83f78f9a351ab23d3e414adee.jpeg","Latest Updates on Google Bard /Anthropic Claude2 / ChatGPT Code Interpreter","We want our models to use their programming skills to provide more natural interfaces to the basic functions of our computers.  \n - OpenAI",{"id":181,"publish_date":182,"is_original":4,"collection":183,"cover_url":184,"cover_url_1_1":185,"title":186,"summary":187,"author":63},417,"2023-08-24","#OpenAI","article_res/cover/bccf897d50a88b18364e35f7466387e0.jpeg","article_res/cover/2f871085c1073717c1703ae86e18056f.jpeg","The GPT-3.5 Turbo fine-tuning (fine-tuning function) has been released～","Developers can now bring their own data to customize GPT-3.5 Turbo for their use cases.",{"title":10,"items":189},[190,191,192],{"id":88,"publish_date":89,"is_original":32,"collection":90,"cover_url":91,"cover_url_1_1":92,"title":93,"summary":94,"author":63},{"id":96,"publish_date":97,"is_original":32,"collection":98,"cover_url":99,"cover_url_1_1":100,"title":101,"summary":102,"author":63},{"id":104,"publish_date":105,"is_original":32,"collection":106,"cover_url":107,"cover_url_1_1":108,"title":109,"summary":110,"author":63},true,{"code":4,"msg":5,"data":195},{"id":196,"publish_date":197,"is_original":32,"collection":198,"articles_id":199,"cover_url":200,"cover_url_1_1":201,"title":202,"summary":203,"author":63,"content":204},254,"2024-06-06","#Buffett","gV6yQbG7nPQNuvMqfC34Gw","article_res/cover/459b402e1d116ea78a3252fdb6164131.jpeg","article_res/cover/8b031ab33b41b8db8af48d89a14a0afa.jpeg","Buffett Shareholder Letters 1957-1960","Our bread-and-butter business is buying undervalued securities and selling when the undervaluation is corrected.","\u003Cdiv class=\"rich_media_content js_underline_content\n                       autoTypeSetting24psection\n            \" id=\"js_content\">\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Today, while talking with Jing, I mentioned that managing a company is similar to making investments, as it requires allocating resources to people and projects with higher return on investment. Jing suggested that I read the original versions of Buffett's shareholder letters; the unaltered letters might be more helpful than interpretations or processed versions by others. I started reading them on the plane. Although I don't particularly focus on the investment field myself, I took some reading notes 📒 mainly targeting parts that could inspire company management:\u003C/p>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Performance history of the Buffett Fund from 1957-1960\u003C/h1>\u003Cp style=\"text-align: center;\">\u003Cimg class=\"rich_pages wxw-img js_insertlocalimg\" data-imgfileid=\"100005005\" data-ratio=\"0.7203703703703703\" data-s=\"300,640\" data-type=\"png\" data-w=\"1080\" style=\"\" src=\"https://res.cooltool.vip/article_res/assets/17423805068500.13408702723037336.png\">\u003C/p>\u003Csection data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;color: rgb(0, 0, 0);font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;overflow-x: auto;'>\u003Ctable>\u003Cthead>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;word-break: break-all;\">Year\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;word-break: break-all;\">Number of partnerships operating for the entire year\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;word-break: break-all;\">Partnership gains\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;word-break: break-all;\">Dow Jones Returns\u003C/th>\u003C/tr>\u003C/thead>\u003Ctbody style=\"border-width: 0px;border-style: initial;border-color: initial;\">\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;word-break: break-all;\">1957\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">3\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">10.4%\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">-8.4%\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">1958\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">5\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">40.9%\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">38.5%\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">1959\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">6\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">25.9%\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">19.9%\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">1960\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">7\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">22.8%\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">-6.3%\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003C/section>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Learning Notes from the 1957 Shareholder Letter\u003C/h1>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\"Work-out\" Noun Study\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The term \"work-out\" specifically refers to investments that depend on specific corporate actions (such as sales, mergers and acquisitions, liquidations, tender offers, etc.) for profit, rather than relying on a general increase in stock prices. In other words, a \"work-out\" is an investment strategy where the profits primarily stem from the successful completion of anticipated corporate actions.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The specific explanation is as follows:\u003C/p>\u003Cul data-tool=\"mdnice编辑器\" class=\"list-paddingleft-1\" style='margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 557.438px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">(Sales): The company sells part or all of its assets.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">(Mergers): The company merges with another company.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">(Liquidations): The company will convert assets into cash and distribute them to shareholders.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">(Tenders): The company repurchases its shares through a tender offer.\u003C/section>\u003C/li>\u003C/ul>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In this case, the risk of investment lies in the possibility that the anticipated corporate action may be canceled or not proceed as planned, rather than a general decline in the stock market due to a worsening overall economic situation. The operation of Sanborn mentioned below should fall under work-out.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>The performance of Buffett's fund\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The market was not good that year, with the Dow Jones Industrial Average starting at 499 points and ending at 435 points, losing 64 points. With a dividend of 22 points added, the overall loss was 42 points, which is an annual loss of 8.470% (why my calculation is 8.417%). However, all three of Buffett's partnerships in 1956 showed growth, with increases of approximately 6.2%, 7.8%, and 25% respectively in their year-end net worths. The strong performance of the third partnership was mainly due to short-term luck, especially regarding the timing of capital availability. The third partnership was established later in 1956 when the market was at a lower level, and several securities were particularly attractive. Due to the availability of funds, significant positions were taken in these securities. Meanwhile, the earlier two partnerships already had substantial investments and therefore could only take relatively smaller positions in these securities.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Background of the three partnerships\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In 1956, after returning to Omaha from New York, Warren Buffett established his first investment partnership, Buffett Associates Ltd. This partnership started with $105,000 invested by seven family members and friends, along with $100 of Buffett's own money.\u003C/p>\u003Cp style=\"text-align: center;\">\u003Cimg class=\"rich_pages wxw-img js_insertlocalimg\" data-imgfileid=\"100005001\" data-ratio=\"0.5\" data-s=\"300,640\" data-type=\"jpeg\" data-w=\"860\" style=\"\" src=\"https://res.cooltool.vip/article_res/assets/17423805068480.27161359787718475.jpeg\">\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>By the end of 1956, Buffett had established two more partnerships, each with its own group of investors. As of January 1, 1957, the combined net worth amounted to $303,726.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>These partnerships operated under similar terms, which significantly influenced Buffett's early success. The main terms included:\u003C/p>\u003Col data-tool=\"mdnice编辑器\" class=\"list-paddingleft-1\" style='margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 557.438px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Buffett did not charge a management fee, which was very unusual at the time. The profit distribution method was that for profits below 4%, limited partners received all of it; for profits exceeding 4%, they were distributed with 75% going to the partners and 25% going to Buffett.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Limited partners could only withdraw funds on the last day of the year.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Buffett focused on value investing, selecting investments based on intrinsic value rather than market trends.\u003C/section>\u003C/li>\u003C/ol>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The structure of these partnerships was designed to align Buffett's interests with those of the investors. He invested almost his entire net worth in these partnerships, helping to build trust and encourage prudent investment decisions. Over the years, these partnerships achieved significant returns, far surpassing the Dow Jones Index.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Reasons for outperforming the market\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The most essential thing is to have patience and find securities that are significantly undervalued. Maximizing long-term profits: Buffett's primary interest lies in stocks staying still or declining rather than rising. Therefore, a considerable portion of the investment portfolio may be in a dormant phase.\u003C/p>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Learning notes from the 1958 shareholder letter\u003C/h1>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Performance of the Buffett Fund\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The Dow Jones Industrial Average rose from 435 points to 583 points, plus about 20 points in dividends, for an overall increase of 38.5%. Buffett's five investment partnerships had year-end growth ranging from 36.7% to 46.2%.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Explain why the fund performs better in bear markets than in bull markets\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In the 1957 shareholder letter, Buffett mentioned that he believed their investment strategy would show more advantages in a declining or stable market because they focused on undervalued securities. These securities are more likely to be undervalued when the overall market declines. However, during a rising market, due to the overall rise of the market, they could only strive to keep up with the performance of the index.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett's largest holding accounted for 10% to 20% of the assets of each partnership. When a bear market comes, it is advantageous if this stock falls or remains relatively stable, as it allows for an increased proportion of holdings. However, in a bull market, such securities may drag down comparative performance.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Case Analysis: Commonwealth Trust Co.\u003C/h2>\u003Cp style=\"text-align: center;\">\u003Cimg class=\"rich_pages wxw-img js_insertlocalimg\" data-imgfileid=\"100004996\" data-ratio=\"0.6485714285714286\" data-s=\"300,640\" data-type=\"webp\" data-w=\"700\" style=\"\" src=\"https://res.cooltool.vip/article_res/assets/17423805068490.8973610464899913.jpeg\">\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>10, but because the company does not pay cash dividends, this has caused its stock price to be depressed to about $50 per share.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Commonwealth Trust Co. has approximately $50 million in assets (about half the size of the First National Bank of Omaha), with 25.5% owned by a larger bank that has been hoping for a merger for many years. Due to personal reasons, such a merger has not been realized, but there is evidence suggesting that this situation will not last indefinitely.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett believed that this company had several advantages:\u003C/p>\u003Col data-tool=\"mdnice编辑器\" class=\"list-paddingleft-1\" style='margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 557.438px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Very strong defensive characteristics;\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Value steadily growing at a satisfactory rate;\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">There are signs that this value will eventually be released, although it may take a year or even ten years. If it's the latter, then this value could increase to a fairly large number, such as $250 per share.\u003C/section>\u003C/li>\u003C/ol>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Within about a year, Buffett successfully acquired approximately 12% of Commonwealth Trust Co.'s shares at an average price of around $51 per share. The unchanged stock price was very beneficial for investors. As his stake increased, especially when Buffett became the second-largest shareholder with sufficient voting rights, he would have significant say in potential mergers, thereby further unlocking the company's intrinsic value.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Commonwealth had only about 300 shareholders, with an average of roughly two trades per month. Therefore, overall market activity had almost no impact on the price fluctuations of some of these holdings. The broader market would not affect the stock price of Commonwealth Trust Co. Moreover, Buffett quietly bought shares during the acquisition process. Even so, there was some competition during the buying process, which caused the price to rise to about $65. In illiquid stocks, even very small buy orders can cause such significant price movements, explaining why ensuring that investment portfolio information is not leaked is so important.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Later, Buffett sold his shares in Commonwealth at $80 (at that time, Buffett assessed the intrinsic value of the stock to be $135). Because this transaction, relative to Buffett's purchase at $50 when the intrinsic value was $125, involved less discount, Buffett believed that capital could be better utilized for new investments (which accounted for about 25% of each partnership's assets). Although the degree of undervaluation of this new investment was not higher than many other securities held, Buffett became the largest shareholder, thus bringing significant advantages in correcting the undervaluation (work-outs).\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In this particular holding, Buffett was almost certain that its performance would outperform the Dow Jones Index during the holding period. While the newly purchased company was not explicitly mentioned in the report, according to subsequent letters to shareholders, the new company should be Sanborn Map Company. This company engaged in publishing and continuously revising extremely detailed maps of various cities across the United States. These maps were widely used by insurance companies, real estate companies, and local governments, providing detailed layouts of buildings and locations of fire protection facilities, among other things. The company also made substantial investments using its cash flow.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Action Plan\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>As the market level rises, undervalued securities become scarcer, and Buffett finds it difficult to locate a sufficient number of attractive investments. He wishes to increase the proportion of assets in \"work-outs,\" but suitable conditions are hard to find. Therefore, he attempts to create his own \"work-outs\" by heavily purchasing several undervalued securities (becoming the largest shareholder). This strategy is expected to achieve the forecast made in 1957, which is to outperform during a bear market.\u003C/p>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Learning Notes from the 1959 Shareholder Letter\u003C/h1>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Reiterating Principles\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett reiterates his consistent principle: he would rather suffer the penalty of being overly conservative than face the consequences of permanent capital loss that could result from accepting the \"new era\" philosophy (i.e., trees can really grow to the sky). This conservative investment strategy has helped him maintain stable returns in uncertain market environments.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>The performance of the Buffett Fund\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In 1959, the Dow Jones Industrial Average, including dividends, had an overall increase of 19.9%. In contrast, the annual returns of Buffett's six partnerships ranged between 22.3% and 30.0%, averaging approximately 25.9%. The allocation in Sanborn Map Company increased from 25% to 35% of total assets, not only enhancing control over the company but also further securing the potential gains of this undervalued asset.\u003C/p>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Learning notes from the 1960 shareholder letter\u003C/h1>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Investor expectation management\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett continuously emphasizes expectation management and long-termism. He believes that if a fund declines by 15% in a given year while the average index drops by 30%, it is far superior to both the fund and the average index rising by 20%. Over the long term, there will be good years and bad years, and it makes no sense to get excited or frustrated about the sequence of these years. What matters is outperforming the benchmark; scoring four on a three-par hole is worse than scoring five on a five-par hole, and assuming one will never encounter either three-par or five-par holes is unrealistic.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>The performance of Buffett Fund\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The Industrial Average Index dropped from 679 points to 616 points, a decline of 9.3%. Even with the dividends earned from holding these stocks, there was still an overall loss of 6.3%. However, Buffett's seven partnerships achieved an average increase of 22.8%.\u003C/p>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Sanborn Map Case\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>After Buffett sold his shares in Commonwealth Trust Co. in 1958, he purchased Sanborn Map Company. This year's letter provided more details about this.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Sanborn Map Company was engaged in publishing and continuously updating highly detailed maps of cities across the United States. These maps showed information such as the diameter of street drainage pipes, the location of fire hydrants, and the materials used for roofs, primarily for use by fire insurance companies. A large portion of Sanborn’s business was conducted with about thirty insurance companies, but maps were also sold to utility companies, mortgage companies, and tax departments outside the insurance industry.\u003C/p>\u003Cp style=\"text-align: center;\">\u003Cimg class=\"rich_pages wxw-img js_insertlocalimg\" data-imgfileid=\"100004998\" data-ratio=\"1.1761158021712907\" data-s=\"300,640\" data-type=\"jpeg\" data-w=\"829\" style=\"\" src=\"https://res.cooltool.vip/article_res/assets/17423805068510.09439454961225624.jpeg\">\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The business logic of Sanborn Map was very solid in that era. In the first 75 years of the company's existence, it operated in a more or less monopolistic manner, turning a profit every year and being almost completely immune to recessions, requiring no sales effort. In the early days, the insurance industry was concerned that Sanborn's profits might become too high, so they arranged for some well-known insurance executives to join Sanborn's board as supervisory members.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>However, in the early 1950s, a competitive underwriting method known as \"card records\" eroded Sanborn's business, causing the after-tax profits of the map business to decline from an average of over $500,000 per year at the end of the 1930s to less than $100,000 in 1958 and 1959. Considering the upward trend of the economy during this period, this almost entirely eliminated the previously considerable and stable profitability. However, in the early 1930s, Sanborn began accumulating an investment portfolio. Since the business did not require capital, any retained earnings could be used for this investment. Over time, about $2.5 million was invested, with approximately half in bonds and the other half in stocks. Therefore, especially in the past decade, the portfolio flourished while the operating map business gradually declined.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>In 1958, just like in 1938, Sanborn possessed a large amount of information of great value to the insurance industry. To replicate the detailed information they had collected over the years would cost tens of millions of dollars. Despite the rise of \"card records,\" more than $500 million in fire premiums were still underwritten by \"mapping\" companies. However, the way Sanborn sold and packaged its product (information) had not changed over these years, and this \"inaction\" eventually reflected in its earnings.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Sanborn had annual sales of about $2 million and owned approximately $7 million worth of marketable securities. The income from the portfolio was quite substantial, and the company had no potential financial issues. Insurance companies were satisfied with the price of maps, and shareholders were still receiving dividends (although within the last 8 years, these dividends had been cut five times). There were a total of 105,000 shares, with 1,600 shareholders.\u003C/p>\u003Csection data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;color: rgb(0, 0, 0);font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;overflow-x: auto;'>\u003Ctable>\u003Cthead>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Year\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Dow Jones Industrial Average\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Sanborn Stock Price ($/share)\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Sanborn Portfolio Value ($/share)\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Contribution of Map Business to Stock ($/share)\u003C/th>\u003C/tr>\u003C/thead>\u003Ctbody style=\"border-width: 0px;border-style: initial;border-color: initial;\">\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">1938\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">100-120\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">110\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">20\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">110-20=90\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">1958\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">550\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">45\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">7,000,000/ 105,000≈65\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">45–65=-20\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003C/section>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Major Shareholders/Directors after Buffett's Involvement:\u003C/p>\u003Csection data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;color: rgb(0, 0, 0);font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;overflow-x: auto;'>\u003Ctable>\u003Cthead>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Shareholder\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Director status\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Number of shares held\u003C/th>\u003Cth style=\"border-top-width: 1px;border-color: rgb(204, 204, 204);background-color: rgb(240, 240, 240);text-align: left;min-width: 85px;\">Notes\u003C/th>\u003C/tr>\u003C/thead>\u003Ctbody style=\"border-width: 0px;border-style: initial;border-color: initial;\">\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Nine well-known figures in the insurance industry\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">46 shares (in total)\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Held jointly by nine people, totaling 46 shares, with the largest holder owning 10 shares. In the past ten years, the insurance company has only been a seller in any transactions involving Sanborn stock.\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Company lawyer\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">10 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Company lawyer\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Banker\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">10 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Recognizing the company's issues, actively pointing them out and increasing shareholding\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Two Sanborn executives\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">About 300 shares (in total)\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Executives controlled by the board of directors\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Son of the late president of Sanborn\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">0 shares (held before resignation)\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Resigned due to dissatisfaction with the company's business trends\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Widow of the late president of Sanborn\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Non-director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">15,000 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Dissatisfied with the company's business trend\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Indeterminate shareholders (brokerage firm clients)\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Non-director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">About 10,000 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Dissatisfied with the company's situation, expects to separate the investment portfolio from the map business\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: rgb(248, 248, 248);\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Indeterminate shareholders\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Non-director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">About 8,000 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Dissatisfied with the company's situation, there are expectations to separate the investment portfolio from the maps business.\u003C/td>\u003C/tr>\u003Ctr style=\"border-width: 1px 0px 0px;border-right-style: initial;border-bottom-style: initial;border-left-style: initial;border-right-color: initial;border-bottom-color: initial;border-left-color: initial;border-top-style: solid;border-top-color: rgb(204, 204, 204);background-color: white;\">\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Buffett\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Newly added director\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">46,000 shares\u003C/td>\u003Ctd style=\"border-color: rgb(204, 204, 204);min-width: 85px;\">Increased through public market purchases to approximately 24,000 shares, bringing the total holdings of the three groups to 46,000 shares.\u003C/td>\u003C/tr>\u003C/tbody>\u003C/table>\u003C/section>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett wanted to separate the two businesses (maps and investments) to achieve the fair value of the investment portfolio while striving to rebuild the profitability of the map business. By leveraging Sanborn's rich raw materials and combining electronic means to convert this data into the most suitable form for customer use, the map business appears to have a real opportunity to double its profits.\u003C/p>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>The final split was as follows:\u003C/p>\u003Cul data-tool=\"mdnice编辑器\" class=\"list-paddingleft-1\" style='margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 557.438px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Share Repurchase Plan: 72% of the outstanding shares were exchanged at fair value for securities in the investment portfolio, which were distributed to shareholders, involving 50% of the 1,600 shareholders.\u003C/section>\u003C/li>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Map Business: More than $1.25 million in government and municipal bonds were retained as a reserve fund, and over $1 million in potential corporate capital gains taxes were eliminated. The remaining shareholders received slightly improved asset values, significantly increased earnings per share, and higher dividend rates.\u003C/section>\u003C/li>\u003C/ul>\u003Ch2 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 22px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Re-emphasizing the investment philosophy\u003C/h2>\u003Cp data-tool=\"mdnice编辑器\" style='margin-bottom: 0px;padding-top: 8px;padding-bottom: 8px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;line-height: 26px;'>Buffett's main business is to buy undervalued securities and sell them when the undervaluation is corrected, while investing in special situations where profits depend on corporate actions rather than market behavior. As the partnership fund continues to grow, opportunities in \"control situations\" may increase.\u003C/p>\u003Ch1 data-tool=\"mdnice编辑器\" style='margin-top: 30px;margin-bottom: 15px;font-weight: bold;font-size: 24px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;letter-spacing: normal;text-align: left;text-wrap: wrap;'>Takeaways\u003C/h1>\u003Cul data-tool=\"mdnice编辑器\" class=\"list-paddingleft-2\" style='margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 557.438px;color: black;font-family: Optima-Regular, Optima, PingFangSC-light, PingFangTC-light, \"PingFang SC\", Cambria, Cochin, Georgia, Times, \"Times New Roman\", serif;font-size: 16px;letter-spacing: normal;text-align: left;text-wrap: wrap;'>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">\u003Cp style=\"padding-top: 8px;padding-bottom: 8px;line-height: 26px;color: black;\">\u003Cstrong>Set up a clear and correct set of rules, and then consistently follow these rules to do those \"simple\" things.\u003C/strong>\u003C/p>\u003C/section>\u003C/li>\u003Cul class=\"list-paddingleft-1\" style=\"margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 531.898px;list-style-type: square;\">\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Buffett has established strict investment criteria and discipline in his investments, and repeatedly implemented these simple but effective strategies.\u003C/section>\u003C/li>\u003C/ul>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">\u003Cp style=\"padding-top: 8px;padding-bottom: 8px;line-height: 26px;color: black;\">\u003Cstrong>Ensure that you can control the entire situation in order to truly move in the right direction.\u003C/strong>\u003C/p>\u003C/section>\u003C/li>\u003Cul class=\"list-paddingleft-1\" style=\"margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 531.898px;list-style-type: square;\">\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">By holding large stakes, Buffett ensures sufficient influence in the company's decision-making process, thereby being able to steer the company toward developments favorable to shareholders.\u003C/section>\u003C/li>\u003C/ul>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">\u003Cp style=\"padding-top: 8px;padding-bottom: 8px;line-height: 26px;color: black;\">\u003Cstrong>Adjust others' expectations.\u003C/strong>\u003C/p>\u003C/section>\u003C/li>\u003Cul class=\"list-paddingleft-1\" style=\"margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 531.898px;list-style-type: square;\">\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Buffett continuously conveys his investment philosophy and strategies through the shareholder letters, helping investors establish reasonable expectations and avoid unnecessary panic or excessive optimism during short-term market fluctuations.\u003C/section>\u003C/li>\u003C/ul>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">\u003Cp style=\"padding-top: 8px;padding-bottom: 8px;line-height: 26px;color: black;\">\u003Cstrong>Adhere to long-termism and be patient.\u003C/strong>\u003C/p>\u003C/section>\u003C/li>\u003Cul class=\"list-paddingleft-1\" style=\"margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 531.898px;list-style-type: square;\">\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Buffett emphasizes the importance of long-term investment, patiently waiting for the market to correct undervalued assets while ignoring short-term market fluctuations.\u003C/section>\u003C/li>\u003C/ul>\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">\u003Cp style=\"padding-top: 8px;padding-bottom: 8px;line-height: 26px;color: black;\">\u003Cstrong>Companies need to build their own defensive moats.\u003C/strong>\u003C/p>\u003C/section>\u003C/li>\u003Cul class=\"list-paddingleft-1\" style=\"margin-top: 8px;margin-bottom: 8px;padding-left: 25px;width: 531.898px;list-style-type: square;\">\u003Cli>\u003Csection style=\"margin-top: 5px;margin-bottom: 5px;line-height: 26px;color: rgb(1, 1, 1);\">Invest in companies with strong competitive advantages and stable profitability. These companies often have unique business models, brand advantages, or other hard-to-replicate competitive edges.\u003C/section>\u003C/li>\u003C/ul>\u003C/ul>\u003Cp style=\"display: none;\">\u003Cmp-style-type data-value=\"3\">\u003C/mp-style-type>\u003C/p>\u003C/div>",1752585463558]