Warren Buffett’s Letters – How to use your extra cash – 1969-1970
This is the third post in a series that will explore the successes, failures, and teachings of Warren Buffett through his annual Berkshire Hathaway letters to shareholders. To start at the beginning, click here. What you will learn How do businesses use their extra cash?How did Warren Buffett choose to use his extra cash in the early years?Warren's personable approach with his managers and workers. What to do with your extra cash Readers of Warren Buffett's early shareholder letters will be aware that Mr. Buffett was frustrated at the prospects of Berkshire's primary business, textiles. It seemed like no matter how much money you throw into increasing efficiency, you could never count on increasing your returns. He notes in the 1970 letter: "Four years ago your management committed itself to the development of…
