📚 The Essays of Warren Buffett (Chinese version) — Edited by Lawrence A. Cunningham

Hello everyone! Today, I'd like to introduce you to a classic book that will allow you to "step directly into Buffett's head." It's the Chinese edition of "The Essays of Warren Buffett: Lessons for Corporate America," often translated as "Buffett's Letters to Shareholders." This book, meticulously edited and compiled by Lawrence A. Cunningham , organizes and thematically organizes Buffett's letters to shareholders, which he has written in Berkshire Hathaway's annual reports over the years. This book allows readers to quickly understand Buffett's investment philosophy, corporate governance, and life wisdom.

This book is not only a "treasure book" for investors, but is also listed as a recommended reading for courses at top universities such as Harvard Business School, Columbia Business School, and Wharton School.

👤 Editor's Note: Who is Lawrence A. Cunningham?

• 🎓 Professor at George Washington University Law School, specializing in corporate governance, finance, and regulation
• 📖 Published several books related to investment and corporate governance
• ✍️ His most famous contribution is reorganizing Buffett's shareholder letter into "The Essays of Warren Buffett"
• 🌍 His editing style has transformed the wisdom originally scattered across decades of shareholder letters into a logically structured classic.

👉 Editor's Note: Buffett's letters are typically fragmented, with one per year. While valuable, they can be challenging to read. Cunningham's compilation of these letters creates a "knowledge map" for all investors, which is incredibly thoughtful.

👤 Author background: Who is Warren Buffett?

• 📈 Chairman and CEO of Berkshire Hathaway, known as the "Oracle of Omaha"
• 💼 One of the world's most successful value investors
• 📊 Adhere to the value investment philosophy in the long term and create amazing compound interest returns
• 🧠 Investment philosophy influenced by Benjamin Graham and Philip Fisher
• 🌟 Not only an investment guru, but also a model of corporate governance and corporate ethics

👉 Editor's Thoughts: Buffett's shareholder letters are not just an investment guide, but more like a "business philosophy book" full of wisdom and humor.

📖 Core content of the book

"Letters to Shareholders" is not just a book about investment skills, but a masterpiece covering investment philosophy, corporate governance, financial strategies and life philosophy .

🏢 Corporate Governance and Business Philosophy

• Buffett emphasizes shareholder supremacy and that management should act as "trustees" rather than "masters."
• We value integrity and transparency and oppose excessive financial manipulation.
• Promote "simple and effective" business practices rather than complex financial engineering

👉 Editor’s take: This business philosophy has made Berkshire Hathaway one of the most trusted companies in the world.

📊 Investment Philosophy

• Investing is buying a business, not a stock code
• Only invest in companies within your "circle of competence"
• Prefer companies with "moats" (lasting competitive advantages)
• Emphasize "margin of safety" and "long-term holding"

👉 Editor's comment: These concepts actually echo those in "The Warren Buffett Way", but are more authentic.

💵 Financial and accounting perspectives

• Buffett is cautious about accounting figures and reminds investors not to blindly rely on earnings figures.
• Focus on cash flow, not just paper profits
• Emphasizing "economic value" is the true corporate value

👉 Editor's take: This is a shot in the arm for many retail investors, as the market's "surface numbers" can often be misleading.

👨👩👧👦 The relationship between shareholders and operators

• Buffett treats shareholders as "partners"
• Management should align interests with shareholders to avoid "agency problems"
• He is Berkshire's largest shareholder and stands with his shareholders.

👉 Editor's comment: This is why shareholders have full trust in Buffett.

🌍 Life wisdom and humor

• Buffett's letters are full of humor, often using simple metaphors to explain complex concepts.
• He reminded investors: Patience, discipline and rationality are far more important than intelligence.
• He also stressed that "reputation is more important than money"

👉 Editor’s thoughts: Reading Buffett’s letter is like listening to a wise elder telling a story.

📚 Book Structure

Cunningham organizes Buffett's shareholder letters into the following themes:

1. Corporate Governance and Shareholder Relations🏢
2. Investment philosophy and principles 📊
3. Financial and accounting perspectives💵
4. Business operations and management👨💼
5. Market Views and Capital Allocation📈
6. Life wisdom and humor 🌟

👉 Editor's take: This layout is easier to read than the original annual report and is very friendly to beginners.

📌 Important cases in the book

🍦 Coca-Cola Case

• Buffett bought a large amount of Coca-Cola because of its strong brand, global market and stable cash flow.
• This is the best example of "moat" and "long-term holding"

📰 The Washington Post Case

• Buy when undervalued, hold for the long term, and reap huge rewards
• Demonstrating the importance of "margin of safety"

🛡️ GEICO Insurance Case Study

• Buffett continued to invest in GEICO for many years and eventually acquired it outright.
• Demonstrating his preference for a "simple, stable, and sustainable" business model

💡 Inspiration from the book

For investors

• Investing should be simple. Understanding the business is more important than chasing stock prices.
• Patience and discipline are the greatest investment advantages
• Don't follow the market, use your own judgment

For business operators

• Integrity and transparency are a company's most valuable assets
• Management should align interests with those of shareholders
• Simple and effective operations are often better than complex operations

For ordinary people

• Long-term thinking is more important than short-term profits
• There should also be a "safety margin" in life
• Focus on reputation and value rather than immediate interests

👉 Editor's thoughts: This book is not just an investment book, but also a book on the philosophy of life.

🌟 Editor's summary

Warren Buffett's Letter to Shareholders is a classic that combines investment wisdom, corporate governance, and life philosophy:

• It allows us to hear directly from Buffett's mind 🧠
• It tells us that "investing is buying companies, not speculating in stocks" 📊
• It reminds us that "rationality, integrity and patience" are more important than intelligence💡

📌 Editor's summary in one sentence: After reading this book, you will find that Buffett's success does not come from a magical formula, but from the persistence of simple principles and the compound interest of time.