巴菲特致股东信2

又难以驾驭的经理人打交道，而除非那些有意见的董事能够获得董事会多数的支持，这是一件很困难的协调沟通任务，尤其是经营阶层的表现虽然可恨但却罪不至死的时候，基本上他们的手脚是被绑的死死的，实务上，面临这种现象的董事通常会说服自己留在董事会，至少还能有所图，但在此同时，经营阶层却还是同样可以为所欲为。

In the third case, the owner is neither judging himself nor burdened with the problem of garnering a majority. He can also insure that outside directors are selected who will bring useful qualities to the board. These directors, in turn, will know that the good advice they give will reach the right ears, rather than being stifled by a recalcitrant management. If the controlling owner is intelligent and self-confident, he will make decisions in respect to management that are meritocratic and pro-shareholder. Moreover - and this is critically important - he can readily correct any mistake he makes.

在第三种情况下，老板本身不必衡量自己的表现也不必费心去取得多数人的支持，同时他也可以确保所遴选出来的外部董事将可对董事会的素质有所提升，而这些被选中的董事，也可以确定所提出的建议会真正被听进去，而不是被消极抵制的经营阶层当作是耳边风，而若是大股东本身够聪明且有自信，那么他就能够找到以股东利益为优先的菁英经理人，还有一点更重要的是，他能够随时准备改正本身所犯的错误。

At Berkshire we operate in the second mode now and will for as long as I remain functional. My health, let me add, is excellent. For better or worse, you are likely to have me as an owner/manager for some time.

在Berkshire，我们现在是以第二种情况在做营运，而且在我有生之年都会是如此，至于我个人的健康状况，我必须要强调，实在是好极了，不管是好或坏，大家都必须继续接受我担任大股东兼经营者。

After my death, all of my stock will go to my wife, Susie, should she survive me, or to a foundation if she dies before I do. In neither case will taxes and bequests require the sale of consequential amounts of stock.

直到我死后，我拥有的所有股份将会归我内人Susie拥有，要是她比我长寿的话，不过要是她比我早死，所有的股份将会捐给一个基金会，且不论如何都不会因为遗产或赠与税而必须被迫出售相当的股份。

When my stock is transferred to either my wife or the foundation, Berkshire will enter the third governance mode, going forward with a vitally interested, but non-management, owner and with a management that must perform for that owner. In preparation for that time, Susie was elected to the board a few years ago, and in 1993 our son, Howard, joined the board. These family members will not be managers of the company in the future, but they will represent the controlling interest should anything happen to me. Most of our other directors are also significant owners of Berkshire stock, and each has a strong owner-orientation. All in all, we're prepared for "the truck."

而当我的股份移转到我内人或是基金会之后，Berkshire将会进入第三种公司治理情况，变成一个关心公司但却不参与经营的大股东搭配完全为股东设想的经理人，为了预先做准备，Susie在几年前已经被选为公司的董事，而1993年我的儿子豪尔也紧接着加入董事会，这些家族成员以后将不会担任公司的经理人，但要是万一我不在时，他们将继承控制公司的权力，当然公司其它的董事本身也都是主要的股东，且皆有很强的股东利益导向，总而言之，对于那辆卡车可能到来，我们已经作好了准备。

Shareholder-Designated Contributions股东指定捐赠计画

About 97% of all eligible shares participated in Berkshire's 1993 shareholder-designated contributions program. Contributions made through the program were $9.4 million and 3,110 charities were

recipients.

大约有97%的有效股权参与1993年的股东指定捐赠计划，总计约940万美元捐出的款项分配给3,110家慈善机构。

Berkshire's practice in respect to discretionary philanthropy - as contrasted to its policies regarding contributions that are clearly related to the company's business activities - differs significantly from that of other publicly-held corporations. There, most corporate contributions are made pursuant to the wishes of the CEO (who often will be responding to social pressures), employees (through matching gifts), or directors (through matching gifts or requests they make of the CEO).

Berkshire在自由乐捐方面的做法，(不同于具有特定商业目的的捐赠)，与其它公开上市公司的做法有很大的不同，因为大部分的公司所作的捐赠大多是依照CEO的意愿(他们通常背负许多社会压力)，员工(透过相对赠与)或董事(透过相对赠与或是对于CEO的要求)。

At Berkshire, we believe that the company's money is the owners' money, just as it would be in a closely-held corporation, partnership, or sole proprietorship. Therefore, if funds are to be given to causes unrelated to Berkshire's business activities, it is the charities favored by our owners that should receive them. We've yet to find a CEO who believes he should personally fund the charities favored by his shareholders. Why, then, should they foot the bill for his picks?

不过在Berkshire我们相信公司所有的钱都是属于股东的，就像是在私人家族合伙企业一样，因此只要这些捐赠资金与公司本身商业活动无关的话，那么就应该要由股东们所想要赠与的慈善机构收到这些款项，就像是我们还没看到过有CEO愿意拿自己的钱，依照股东们的意愿进行乐捐，那么又有什么理由，让股东为公司的CEO买单呢?

Let me add that our program is easy to administer. Last fall, for two months, we borrowed one person from National Indemnity to help us implement the instructions that came from our 7,500 registered shareholders. I'd guess that the average corporate program in which employee gifts are matched incurs far greater administrative costs. Indeed, our entire corporate overhead is less than half the size of our charitable contributions. (Charlie, however, insists that I tell you that $1.4 million of our $4.9 million overhead is attributable to our corporate jet, The Indefensible.)

而我必须说明的是我们这项计画执行起来并不困难，去年秋天，我们从国家产险公司借调一个人为期两个月，帮我们处理来自7,500位股东的捐款指示，而我也相信其它公司花在处理相同捐赠规模所发生的成本铁定比我们高出许多，事实上，我们公司每年所有的行政费用甚至不到我们每年捐赠金额的一半，(查理坚持我必须向大家报告，总计490万美元的营业费用当中，有140万是发生在公司的企业专机-无可辩解号之上)。
Below is a list showing the largest categories to which our shareholders have steered their contributions.

(a) 347 churches and synagogues received 569 gifts

(b) 283 colleges and universities received 670 gifts

(c) 244 K-12 schools (about two-thirds secular, one-third religious) received 525 gifts

(d) 288 institutions dedicated to art, culture or the humanities received 447 gifts

(e) 180 religious social-service organizations (split about equally between Christian and Jewish) received 411 gifts

(f) 445 secular social-service organizations (about 40% youth-related) received 759 gifts

(g) 153 hospitals received 261 gifts

(h) 186 health-related organizations (American Heart Association, American Cancer Society, etc.) received 320 gifts

下表显示股东指定捐赠的前十大慈善机构
(a)347个教堂与犹太教堂收到569笔善款
(b)283所大专院校收到670笔善款
(c)244所K-12学校收到525笔善款(三分之二是普通学校，另外三分之一属教会学校)
(d)288所艺术、文化或人类学研究机构收到447笔善款
(e)180所宗教性社福机构(犹太教与基督教各半)收到411笔善款
(f)445所民间社福机构(其中四成与青少年相关)收到759笔善款
(g)153所医疗机构收到261笔善款
(h)186所与医疗相关的机构(如美国心脏学会，美国癌症协会等) 收到320笔善款
Three things about this list seem particularly interesting to me. First, to some degree it indicates what people choose to give money to when they are acting of their own accord, free of pressure from solicitors or emotional appeals from charities. Second, the contributions programs of publicly-held companies almost never allow gifts to churches and synagogues, yet clearly these institutions are what many shareholders would like to support. Third, the gifts made by our shareholders display conflicting philosophies: 130 gifts were directed to organizations that believe in making abortions readily available for women and 30 gifts were directed to organizations (other than churches) that discourage or are opposed to abortion.

在这之中，有三点我认为特别有趣，首先，某种程度可以显示出当人们系依个人意志而非迫于募款人的压力或募款机构感性的诉求时，所可能做出的选择，第二，一般大公司的捐赠计画从未将教堂或犹太教堂列入考虑，但这却是股东心目中最佳的选择之一，第三，股东们所做出的决定有时有明显的冲突，有130笔捐款给支持堕胎的机构团体，而另外有30笔的捐款指定要给反堕胎的机构团体 (扣除宗教机构不算)。

Last year I told you that I was thinking of raising the amount that Berkshire shareholders can give under our designated-contributions program and asked for your comments. We received a few well-written letters opposing the entire idea, on the grounds that it was our job to run the business and not our job to force shareholders into making charitable gifts. Most of the shareholders responding, however, noted the tax efficiency of the plan and urged us to increase the designated amount. Several shareholders who have given stock to their children or grandchildren told me that they consider the program a particularly good way to get youngsters thinking at an early age about the subject of giving. These people, in other words, perceive the program to be an educational, as well as philanthropic, tool. The bottom line is that we did raise the amount in 1993, from $8 per share to $10.

去年我曾经告诉大家我考虑提高Berkshire股东指定捐赠计画的额度，并询问大家的意见，不过我们却收到一些股东来信反对整个计画，他们认为我们的责任是将公司经营好而不是去强迫股东做一些慈善捐赠，当然大部分的股东还是支持这项计画，认为这种做法可以享受租税优惠，并敦促我们提高捐赠的额度，有好几位把部份股份移转给子女或孙子女的股东告诉我，他们认为这是让下一代了解施比受有福最好的教育方法，因此最后我们还是决定将下限从每股8美元提高到每股10元。

In addition to the shareholder-designated contributions that Berkshire distributes, our operating businesses make contributions, including merchandise, averaging about $2.5 million annually. These contributions support local charities, such as The United Way, and produce roughly commensurate benefits for our businesses.

Berkshire除了透过股东指定捐赠计画对外捐赠之外，我们旗下事业的经理人每年也会透过公司对外捐赠，包含商品在内每年平均金额约在250万美元左右。这些捐赠主要是赞助当地像是联合劝募等慈善团体，所得的效益应该与我们所捐出的相当。

We suggest that new shareholders read the description of our shareholder-designated contributions program that appears on pages 50-51. To participate in future programs, you must make sure your shares are registered in the name of the actual owner, not in the nominee name of a broker, bank or depository. Shares not so registered on August 31, 1994 will be ineligible for the 1994 program.

我们敦促新加入的股东，仔细阅读年报上有关股东捐赠计画的详细内容，如果在未来年度内，你想要参加这类的计画，我们强烈建议你将股份登记在自己而不是受托人的名下，必须在1994年8月31日之前完成登记，才有权利参与1994年的捐赠计画。

A Few Personal Items几件私人事务

Mrs. B - Rose Blumkin - had her 100th birthday on December 3, 1993. (The candles cost more than the cake.) That was a day on which the store was scheduled to be open in the evening. Mrs. B, who works seven days a week, for however many hours the store operates, found the proper decision quite obvious: She simply postponed her party until an evening when the store was closed.

B太太在12月3日渡过她100岁的生日，(光是蜡烛钱就比蛋糕还贵)，本来当天家具店预计营业到晚上，对于每周工作七天的B太太来说，二话不说，等到晚上店关门之后，才开始她的生日宴会。

Mrs. B's story is well-known but worth telling again. She came to the United States 77 years ago, unable to speak English and devoid of formal schooling. In 1937, she founded the Nebraska Furniture Mart with $500. Last year the store had sales of $200 million, a larger amount by far than that recorded by any other home furnishings store in the United States. Our part in all of this began ten years ago when Mrs. B sold control of the business to Berkshire Hathaway, a deal we completed without obtaining audited financial statements, checking real estate records, or getting any warranties. In short, her word was good enough for us.

虽然B太太的传奇故事已广为人知，但我还是不厌其烦地再说一次，77年前她逃到美国来，不会说英文也没有受过正式的教育，1937年她以500美元创立内布拉斯加家具店，截至去年该店的年营业额达到2亿美元，远远超过全美其他单一家具店的业绩，我们与她的关系肇始于十年前，B太太将大部分的股权卖给Berkshire，当然双方既没有看会计师的财务报表、也没有对房地产权状或是提供任何保证，简而言之，B太太的一诺值千金。

Naturally, I was delighted to attend Mrs. B's birthday party. After all, she's promised to attend my 100th.

当然我很高兴能受邀参加她100岁的生日宴会，另外她还答应以后要来参加我100岁的生日宴会。

Katharine Graham retired last year as the chairman of The Washington Post Company, having relinquished the CEO title three years ago. In 1973, we purchased our stock in her company for about $10 million. Our holding now garners $7 million a year in dividends and is worth over $400 million. At the time of our purchase, we knew that the economic prospects of the company were good. But equally important, Charlie and I concluded that Kay would prove to be an outstanding manager and would treat all shareholders honorably. That latter consideration was particularly important because The Washington Post Company has two classes of stock, a structure that we've seen some managers abuse.

华盛顿邮报的发行人-凯萨琳葛兰姆女士在去年决定正式退休，1973年我们斥资1,000万美元买进她公司的股份，时至今日我们每年从该公司取得700万美元的股利，而持有股票的市值已超过4亿美元，当初在决定买进该公司的股份时，我们便看好该公司的前景，但另外一点同样重要的是，查理跟我都认为凯萨琳将会证明自己是位杰出的经理人，同时能够诚实地对待所有的股东，后面那一点尤其重要，因为该公司股份分成两种，而这种架构常常遭到许多经理人滥用。

All of our judgments about this investment have been validated by events. Kay's skills as a manager were underscored this past year when she was elected by Fortune's Board of Editors to the Business Hall of Fame. On behalf of our shareholders, Charlie and I had long ago put her in Berkshire's Hall of Fame.

而我们做这项投资的正确判断可由许多事件获得证明，凯萨琳杰出的表现使得她获得财富杂志编辑群选为商业名人堂，而对于身为股东的我们来说，查理跟我早就把她列入Berkshire的名人堂之中。

Another of last year's retirees was Don Keough of Coca-Cola, although, as he puts it, his retirement lasted "about 14 hours." Don is one of the most extraordinary human beings I've ever known - a man of enormous business talent, but, even more important, a man who brings out the absolute best in everyone lucky enough to associate with him. Coca-Cola wants its product to be present at the happy times of a person's life. Don Keough, as an individual, invariably increases the happiness of those around him. It's impossible to think about Don without feeling good.

另外一位在去年退休的人是可口可乐的Don Keough，虽然如同他本人所说的他的退休只维持了14个小时，Don是我认识最优秀的人类之一，他不但拥有绝佳的商业天分，同时更重要的是使得每个幸运能够与他共事的人发挥其潜能，可口可乐希望其产品能够伴随每个人一生最快乐的时光，而Don这个人却带给周围的人无限的欢乐，每当想起Don时，没有不让人会心一笑的。

I will edge up to how I met Don by slipping in a plug for my neighborhood in Omaha: Though Charlie has lived in California for 45 years, his home as a boy was about 200 feet away from the house where I now live; my wife, Susie, grew up 1 1/2 blocks away; and we have about 125 Berkshire shareholders in the zip code. As for Don, in 1958 he bought the house directly across the street from mine. He was then a coffee salesman with a big family and a small income.

在介绍我如何结识Don时，顺便介绍一下我在奥玛哈的街坊邻居，虽然查理住在加州长达45年，但他儿时的老家距离我现在住的地方不到100公尺，而我的内人苏珊从小就住在对街，Berkshire有125个股东住在同一个邮政编码，而Don在1958买的房子就在我家的正对面，当年他还是一个收入微薄，却必须养一大家子的咖啡销售员。

The impressions I formed in those days about Don were a factor in my decision to have Berkshire make a record $1 billion investment in Coca-Cola in 1988-89. Roberto Goizueta had become CEO of Coke in 1981, with Don alongside as his partner. The two of them took hold of a company that had stagnated during the previous decade and moved it from $4.4 billion of market value to $58 billion in less than 13 years. What a difference a pair of managers like this makes, even when their product has been around for 100 years.

当年我对Don的印象是我在1988到1989年间，决定替Berkshire买下10亿美元可口可乐股票的因素之一，Roberto Goizueta在1981年当上可口可乐总裁时，Don是他的副手，两人联手接掌这家业务已停滞成长10多年的公司，短短13年期间将这家原本44亿市值的公司变成为580亿美元，虽然所贩卖的产品已经问世100年，这两个人却还能让这家公司产生如此大的变化。

Frank Rooney did double duty last year. In addition to leading H. H. Brown to record profits - 35% above the 1992 high - he also was key to our merger with Dexter.

Frank Rooney从去年开始做了双份的工作，除了领导的HH布朗鞋业在去年创下获利历史新高，较去年同期增加35%之外，他也是购并Dexter鞋业的主要灵魂人物。

Frank has known Harold Alfond and Peter Lunder for decades, and shortly after our purchase of H. H. Brown, told me what a wonderful operation they managed. He encouraged us to get together and in due course we made a deal. Frank told Harold and Peter that Berkshire would provide an ideal corporate "home" for Dexter, and that assurance undoubtedly contributed to their decision to join with us.

Frank认识Harold与Peter有好几十年了，在买下布朗鞋业不久之后，他向我提到这家由他们管理良善的公司，他积极地把我们凑在一起，过了不久之后，我们便达成协议，Frank告诉Harold与Peter说，Berkshire将会是Dexter企业最理想的归宿，而这种安全感无疑的是他们最后决定加入我们最关键的因素。

I've told you in the past of Frank's extraordinary record in building Melville Corp. during his 23 year tenure as CEO. Now, at 72, he's setting an even faster pace at Berkshire. Frank has a low-key, relaxed style, but don't let that fool you. When he swings, the ball disappears far over the fence.

过去我曾向各位提过Frank在Melville企业23年总裁期间的杰出表现，如今高龄72岁的他在Berkshire的速度甚至比以前还快，虽然Frank有个低调又闲散的Style，但千万不要被他的外表所骗，当他大棒一挥时，球儿可是会一飞冲天、消失在围墙之外呢！

The Annual Meeting年度股东会

This year the Annual Meeting will be held at the Orpheum Theater in downtown Omaha at 9:30 a.m. on Monday, April 25, 1994. A record 2,200 people turned up for the meeting last year, but the theater can handle many more. We will have a display in the lobby featuring many of our consumer products - candy, spray guns, shoes, cutlery, encyclopedias, and the like. Among my favorites slated to be there is a See's candy assortment that commemorates Mrs. B's 100th birthday and that features her picture, rather than Mrs. See's, on the package.

今年的股东会预计在1994年4月25日，星期一早上9点30分在位于奥玛哈市中心的Orpheum中心召开，去年股东会参加人数又创新高突破2,200人，不过这个会场还可以容纳更多的人，会场中将展示我们所销售的许多产品，包含糖果、水枪、鞋子、刀叉、百科全书等，其中喜斯糖果为了庆祝B太太100年生日所推出的纪念礼盒是我的最爱，不同于原本喜斯太太的画像，礼盒上所附的是B太太的画像。

We recommend that you promptly get hotel reservations at one of these hotels: (1) The Radisson-Redick Tower, a small (88 rooms) but nice hotel across the street from the Orpheum; (2) the much larger Red Lion Hotel, located about a five-minute walk from the Orpheum; or (3) the Marriott, located in West Omaha about 100 yards from Borsheim's, which is a twenty-minute drive from downtown. We will have buses at the Marriott that will leave at 8:30 and 8:45 for the meeting and return after it ends.

我们建议大家最好先向以下旅馆预订房间(1)Radisson-Redick旅馆-就位在Orpheum中心对街拥有88个房间的一家小旅馆(2)较大一点的Red Lion旅馆-离Orpheum中心约五分钟路程，或是(3)Marriott位在奥玛哈西区，离波仙珠宝店约100公尺，开车到市中心约需20分钟，届时将会有巴士接送大家往返股东会会场。

An attachment to our proxy material explains how you can obtain the card you will need for admission to the meeting. With the admission card, we will enclose information about parking facilities located near the Orpheum. If you are driving, come a little early. Nearby lots fill up quickly and you may have to walk a few blocks.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，由于开会当天会场不好停车，如果你开车过来，记得早一点到，否则附近的车位很快就会停满，你可能就必须要停远一点，再走路过来。

As usual, we will have buses to take you to Nebraska Furniture Mart and Borsheim's after the meeting and to take you from there to downtown hotels or the airport later. Those of you arriving early can visit the Furniture Mart any day of the week; it is open from 10 a.m. to 5:30 p.m. on Saturdays and from noon to 5:30 p.m. on Sundays. Borsheim's normally is closed on Sunday but will be open for shareholders and their guests from noon to 6 p.m. on Sunday, April 24.

一如往年，会后我们备有巴士带大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，我希望大家能有多一点的时间好好探索这两家店的奥妙，当然早几天到的股东也可利用假日逛逛家具店，星期六从早上10点到下午5点30分，星期日则从中午开到下午5点30分，平时礼拜天不营业的波仙珠宝，在4月24号当天会特别为股东与来宾开放。

In past trips to Borsheim's, many of you have met Susan Jacques. Early in 1994, Susan was made President and CEO of the company, having risen in 11 years from a $4-an-hour job that she took at the store when she was 23. Susan will be joined at Borsheim's on Sunday by many of the managers of our other businesses, and Charlie and I will be there as well.

过去几年若你去过波仙，应该都碰到过Susan Jacques， 23岁那年她进入公司从4美元时薪的小妹做起，经过11年的工作生涯，在1994年初Susan成为波仙珠宝公司的总裁，星期天Susan连同Berkshire旗下许多经理人以及查理和我都会出席。

On the previous evening, Saturday, April 23, there will be a baseball game at Rosenblatt Stadium between the Omaha Royals and the Nashville Sounds (which could turn out to be Michael Jordan's team). As you may know, a few years ago I bought 25% of the Royals (a capital-allocation decision for which I will not become famous) and this year the league has cooperatively scheduled a home stand at Annual Meeting time.

在前一天4月23日，星期六晚上，在Rosenblatt体育馆将会有一场奥玛哈皇家队对Nashville (就是麦可乔登后来加入的那只棒球队)，或许大家知道，几年前我个人买下皇家队25%的股权(一个我自己不太好意思让大家知道的资金分配决策)，今年联盟特地将主场安排在Berkshire股东年会期间。

I will throw the first pitch on the 23rd, and it's a certainty that I will improve on last year's humiliating performance. On that occasion, the catcher inexplicably called for my "sinker" and I dutifully delivered a pitch that barely missed my foot. This year, I will go with my high hard one regardless of what the catcher signals, so bring your speed-timing devices. The proxy statement will include information about obtaining tickets to the game. I regret to report that you won't have to buy them from scalpers.

我将会担任开场的先发投手，而我绝对保证将一雪去年差劲的表现，记得当时捕手突然向我做出投出下沉球的指示，我遵照指示投出却差点砸到我自己的脚，今年不管捕手做出什么暗号，我都将祭出个人最拿手的上飘速球，所以大家最好把测速器都带来，股东会资料将告诉大家如何取得入场的门票，大家千万不要向黄牛买门票。

一九九四

Our gain in net worth during 1994 was $1.45 billion or 13.9%. Over the last 30 years (that is, since present management took over) our per-share book value has grown from $19 to $10,083, or at a rate of 23% compounded annually.

1994年本公司的净值成长了14.5亿美元或是14.3%，总计过去30年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的10,083美元，年复合成长率约为23%。

Charlie Munger, Berkshire's Vice Chairman and my partner, and I make few predictions. One we will confidently offer, however, is that the future performance of Berkshire won't come close to matching the performance of the past.

查理．孟格-Berkshire的主要合伙人跟我本身很少做预测，不过有一点我们倒是很确定，那就是Berkshire未来的表现将很难再像过去那样的辉煌。

The problem is not that what has worked in the past will cease to work in the future. To the contrary, we believe that our formula - the purchase at sensible prices of businesses that have good underlying economics and are run by honest and able people - is certain to produce reasonable success. We expect, therefore, to keep on doing well.

问题不在于过去的方法在以后会不管用，相反的，我们认为我们的成功方程式-那就是以合理的价格买进具有产业竞争优势同时由诚实有才干的人经营的做法，在往后同样能够获致令人满意的结果，我们预估应该可以继续保持这种好成绩。

A fat wallet, however, is the enemy of superior investment results. And Berkshire now has a net worth of $11.9 billion compared to about $22 million when Charlie and I began to manage the company. Though there are as many good businesses as ever, it is useless for us to make purchases that are inconsequential in relation to Berkshire's capital. (As Charlie regularly reminds me, "If something is not worth doing at all, it's not worth doing well.") We now consider a security for purchase only if we believe we can deploy at least $100 million in it. Given that minimum, Berkshire's investment universe has shrunk dramatically.

然而皮夹子太厚，却是投资成果的大敌，目前Berkshire的净值已高达119亿美元，还记得当初查理跟我开始经营这家公司时，公司的净值只有2,200万美元，虽然还是一样有许多好的公司，但却很难在找到规模够大的对象，(就像是查理常常说的，如果一件事情不值得去做，那么就算是你把它做的再好也没有用)现在我们只考虑买进至少一亿美元以上的投资，在这样的高门槛下，Berkshire的投资世界，一下子缩小了许多。

Nevertheless, we will stick with the approach that got us here and try not to relax our standards. Ted Williams, in The Story of My Life, explains why: "My argument is, to be a good hitter, you've got to get a good ball to hit. It's the first rule in the book. If I have to bite at stuff that is out of my happy zone, I'm not a .344 hitter. I might only be a .250 hitter." Charlie and I agree and will try to wait for opportunities that are well within our own "happy zone."

尽管如此，我们才是会坚持让我们成功的方法，绝对不会放宽原有的标准，Ted Williams在我妻子的故事中写到，我个人的看法是如果你想成为一个优秀的打击者的话，首先你得先相中一颗好球来打，这是教科书里的第一课，如果强迫自己在不中意的好球带挥棒，我绝对无法成为打击率3成44的强打者，而可能变成2成5的普通球员，查理跟我都很同意这样的看法，所以我们宁愿静静的等待球儿滑进我们喜欢的好球带。

We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.

对于坊间一般投资人与商业人士相当迷信的政治与经济的预测，我们仍将保持视而不见的态度，三十年来，没有人能够正确地预测到越战会持续扩大、工资与价格管制、两次的石油危机、总统的辞职下台以及苏联的解体、道琼在一天之内大跌508点或者是国库券殖利率在2.8%与17.4%之间巨幅波动。

But, surprise - none of these blockbuster events made the slightest dent in Ben Graham's investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, then, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.

不过令人惊讶的是，这些曾经轰动一时的重大事件却从未让班哲明．葛拉罕的投资哲学造成丝毫的损伤，也从没有让以合理的价格买进优良的企业看起来有任何的不妥，想象一下，若是我们因为这些莫名的恐惧而延迟或改变我们运用资金的态度，将会使我们付出多少的代价，事实上，我们通常都是利用某些历史事件发生，悲观气氛到达顶点时，找到最好的进场机会，恐惧虽然是盲从者的敌人，但却是基本面信徒的好朋友。

A different set of major shocks is sure to occur in the next 30 years. We will neither try to predict these nor to profit from them. If we can identify businesses similar to those we have purchased in the past, external surprises will have little effect on our long-term results.

在往后的三十年间，一定还会有一连串令人震惊的事件发生，我们不会妄想要去预测它或是从中获利，如果我们还能够像过去那样找到优良的企业，那么长期而言，外在的意外对我们的影响实属有限。

What we promise you - along with more modest gains - is that during your ownership of Berkshire, you will fare just as Charlie and I do. If you suffer, we will suffer; if we prosper, so will you. And we will not break this bond by introducing compensation arrangements that give us a greater participation in the upside than the downside.

而就像我曾经承诺过的，除了获利没办法像以前那么好之外，你们在Berkshire股权所得到的待遇将会与查理和我一完全致，如果你遭受损失，我们也不好过，如果我们吃香的，那么你们也就跟着喝辣的，而且我们绝对不会靠任何奖金报酬制度让我们多占点便宜而破坏这样美好的关系。

We further promise you that our personal fortunes will remain overwhelmingly concentrated in Berkshire shares: We will not ask you to invest with us and then put our own money elsewhere. In addition, Berkshire dominates both the investment portfolios of most members of our families and of a great many friends who belonged to partnerships that Charlie and I ran in the 1960's. We could not be more motivated to do our best.

此外我们也向大家保证我个人绝大部份的身家都将继续摆在Berkshire的股份之上，我们不会在央求各位参与我们投资的同时，还把自己的钱摆在别的地方，甚至于巴菲特家族以及查理跟我在1960年代经营合伙企业时期的老朋友，所拥有的投资绝大部份也都是以Berkshire股份为主。

Luckily, we have a good base from which to work. Ten years ago, in 1984, Berkshire's insurance companies held securities having a value of $1.7 billion, or about $1,500 per Berkshire share. Leaving aside all income and capital gains from those securities, Berkshire's pre-tax earnings that year were only about $6 million. We had earnings, yes, from our various manufacturing, retailing and service businesses, but they were almost entirely offset by the combination of underwriting losses in our insurance business, corporate overhead and interest expense.

值得庆幸的是，我们可以在一个很好的基础上努力打拼，十年前，也就是在1984年，Berkshire的保险子公司持有价值17亿美元的股票投资组合，每股约当有1,500美元的投资，扣除这部份的收益与资本利得不算，Berkshire当年的税前盈余只有区区的600万美元，没错，虽然我们在制造、零售以及服务事业方面依然有不错的利润，但是大部分的盈余都被保险事业的承保损失、营业费用以及利息支出所抵消掉。

Now we hold securities worth $18 billion, or over $15,000 per Berkshire share. If you again exclude all income from these securities, our pre-tax earnings in 1994 were about $384 million. During the decade, employment has grown from 5,000 to 22,000 (including eleven people at World Headquarters).

时至今日，我们持有的股票投资组合价值超过180亿美元，每股约当有15,000美元，若是再一次我们将这些股票投资所产生的收益扣除的话，我们在1994年的税前盈余是3.84亿美元，十年来，雇用的员工人数从原先的5,000人增加到22,000人，(包含企业总部的11人在内)。

We achieved our gains through the efforts of a superb corps of operating managers who get extraordinary results from some a baseball team as "getting paid for home runs other fellows hit." That's my formula at Berkshire, also.

之所以能有这样的成果，要归功于旗下这群特别的经理人，是他们让那些看起来很普通平凡的事业能有不凡的结果，Casey曾经把他带领一支棒球队的工作，形容为靠着别人击出全垒打赚钱过活，这也是我在Berkshire维生的方式。

The businesses in which we have partial interests are equally important to Berkshire's success. A few statistics will illustrate their significance: In 1994, Coca-Cola sold about 280 billion 8-ounce servings and earned a little less than a penny on each. But pennies add up. Through Berkshire's 7.8% ownership of Coke, we have an economic interest in 21 billion of its servings, which produce "soft-drink earnings" for us of nearly $200 million. Similarly, by way of its Gillette stock, Berkshire has a 7% share of the world's razor and blade market (measured by revenues, not by units), a proportion according us about $250 million of sales in 1994. And, at Wells Fargo, a $53 billion bank, our 13% ownership translates into a $7 billion "Berkshire Bank" that earned about $100 million during 1994.

我们持有少数股权企业的贡献，对Berkshire来说也功不可没，从一些统计数字中，可以看出他们的重要性，1994年可口可乐总计卖出2,800亿罐八盎斯饮料，每罐大概能赚一美分，不过积沙成塔，若按Berkshire拥有7.8%可口可乐的股权比例，我们大概可以分配到210亿罐，总计光是饮料贡献给我们的盈余就有二亿美元；同样的，透过对于吉列的持股，Berkshire大概可以分得全世界刮胡刀7%的市场占有率(以营收而非销量计算)，约为2.5亿美元的销售额；另外在拥有530亿美元资产的富国银行，我们持有13%的股权大概就等于是一家拥有70亿美元资产同时每年获利一亿美元的银行。

It's far better to own a significant portion of the Hope diamond than 100% of a rhinestone, and the companies just mentioned easily qualify as rare gems. Best of all, we aren't limited to simply a few of this breed, but instead possess a growing collection.

我们宁愿拥有天然钻石的一小部份，也不要有100%的人工钻石，而刚刚提到的那些公司堪称为天然的稀有宝石，更难得的是我们不是只拥有现在这一些，以后还会得到更多更多。

Stock prices will continue to fluctuate - sometimes sharply - and the economy will have its ups and down. Over time, however, we believe it highly probable that the sort of businesses we own will continue to increase in value at a satisfactory rate.

股票价格仍会持续波动，有时幅度会很大，同时经济景气的循环也会上上下下，然而就长期而言，我们相信所拥有的这类优良企业的价值很有可能还会继续以稳定的速度成长。

Book Value and Intrinsic Value帐面价值与实质价值

We regularly report our per-share book value, an easily calculable number, though one of limited use. Just as regularly, we tell you that what counts is intrinsic value, a number that is impossible to pinpoint but essential to estimate.

我们会固定公布每股的帐面价值，虽然它的用处不大，但这总算是一个比较容易计算的数字，就像是我们一再提醒各位真正重要的是实质价值，虽然这个数字没有办法准确计算但却有必要将以估算。

For example, in 1964, we could state with certitude that Berkshire's per-share book value was $19.46. However, that figure considerably overstated the stock's intrinsic value since all of the company's resources were tied up in a sub-profitable textile business. Our textile assets had neither going-concern nor liquidation values equal to their carrying values. In 1964, then, anyone inquiring into the soundness of Berkshire's balance sheet might well have deserved the answer once offered up by a Hollywood mogul of dubious reputation: "Don't worry, the liabilities are solid."

例如我们可以很确定的告诉大家1964年每股的帐面价值是19.46美元，不过这个数字很明显的高于其实质的价值，因为公司的资产主要集中于获利不怎么理想的纺织事业，我们纺织资产的继续经营或清算价值都远比不上帐面价值，所以任何想要了解1964年Berkshire资产负债表健全性的人士，得到的答案跟恶名昭彰的好莱坞大亨可能给你的答案一样，「放心好了，所有的负债都如假包换！」。

Today, Berkshire's situation has reversed: Many of the businesses we control are worth far more than their carrying value. (Those we don't control, such as Coca-Cola or Gillette, are carried at current market values.) We continue to give you book value figures, however, because they serve as a rough, albeit significantly understated, tracking measure for Berkshire's intrinsic value. Last year, in fact, the two measures moved in concert: Book value gained 13.9%, and that was the approximate gain in intrinsic value also.

如今Berkshire的情况已完全倒转，我们掌控的许多企业其实际的价值远高于帐面价值，(至于无法掌控的公司，如可口可乐或吉列刮胡刀则是以目前市价列示)，不过我们还是照旧提供各位帐面价值的数字，因为虽然这项数字被严重低估，但仍然可以被当作为追踪Berkshire实质价值的一项指针，事实上，以去年来说，这两项数字以颇为一致的速度变动，帐面价值增加了13.9%，而实质价值大概也是以这个速度成长。

We define intrinsic value as the discounted value of the cash that can be taken out of a business during its remaining life. Anyone calculating intrinsic value necessarily comes up with a highly subjective figure that will change both as estimates of future cash flows are revised and as interest rates move. Despite its fuzziness, however, intrinsic value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

我们将实质价值定义为一家企业在其生涯中所能产生现金流量的折现值，任何人在计算实质价值都必须特别注意未来现金流量的修正与利率的变动都会影响到最后计算出来的结果，虽然模糊难辨，但实质价值却是最重要的，也是唯一能够作为评估投资标的与企业的合理方法。

To see how historical input (book value) and future output (intrinsic value) can diverge, let's look at another form of investment, a college education. Think of the education's cost as its "book value." If it is to be accurate, the cost should include the earnings that were foregone by the student because he chose college rather than a job.

为了了解历史投入的帐面价值与未来产出的实质价值会有怎样不同的演变，让我看看另外一种不同形式的投资-大学教育，假设把教育成本当作是帐面价值，再算的仔细一点，还要包含学生因为读书而放弃工作收入的机会成本。

For this exercise, we will ignore the important non-economic benefits of an education and focus strictly on its economic value. First, we must estimate the earnings that the graduate will receive over his lifetime and subtract from that figure an estimate of what he would have earned had he lacked his education. That gives us an excess earnings figure, which must then be discounted, at an appropriate interest rate, back to graduation day. The dollar result equals the intrinsic economic value of the education.

在这里，我们姑且先不论非经济的效益而只专注于经济效益，首先，我们必须先估计这位毕业生在毕业后终其一生的职场生涯所能得到的收入，然后再扣除要是他没有接受这项教育，原本可以得到的收入，从而我们可以得到因为这项投资，他可以获得的额外收入，当然之后还要利用一个适当的利率加以折现，得到截至毕业日止的折现值，所得到的数字也就等于这场教育所能够带来的实质经济价值。

Some graduates will find that the book value of their education exceeds its intrinsic value, which means that whoever paid for the education didn't get his money's worth. In other cases, the intrinsic value of an education will far exceed its book value, a result that proves capital was wisely deployed. In all cases, what is clear is that book value is meaningless as an indicator of intrinsic value.

有些毕业生可能会发现其帐面成本可能远高于计算出来的实质价值，这就代表着不值得他去接受这样的教育，相对地，要是接受教育所产生的实质价值远高于投入的成本，那么就表示这样的投资是明智的抉择，不过不管怎样，有一点很明确的，那就是实质价值的多寡跟帐面投入成本一点关系都没有。

Now let's get less academic and look at Scott Fetzer, an example from Berkshire's own experience. This account will not only illustrate how the relationship of book value and intrinsic value can change but also will provide an accounting lesson that I know you have been breathlessly awaiting. Naturally, I've chosen here to talk about an acquisition that has turned out to be a huge winner.

若各位觉得这种说法学究气太重，就让我们以Berkshire本身实际投资史考特飞兹的经验当做具体的例证，在这里我们不但可以解释帐面价值与实质价值之间的关系会有多大的变化，同时可以藉此替大家上一课期待已久的会计学，当然这次我选择说明的对象是一个相当成功的购并投资案。

Berkshire purchased Scott Fetzer at the beginning of 1986. At the time, the company was a collection of 22 businesses, and today we have exactly the same line-up - no additions and no disposals. Scott Fetzer's main operations are World Book, Kirby, and Campbell Hausfeld, but many other units are important contributors to earnings as well.

Berkshire是在1986年初买下史考特飞兹的，在当时这家公司拥有22项不同的事业，时至今日我们没有新增，也没有处分其中任何一项，史考特飞兹主要的营运集中在世界百科全书、寇比吸尘器与Campbell空压机，当然其余的事业对盈余的贡献也相当重要。

We paid $315.2 million for Scott Fetzer, which at the time had $172.6 million of book value. The $142.6 million premium we handed over indicated our belief that the company's intrinsic value was close to double its book value.

当时我们斥资3.152亿美元买下帐面价值1.726亿美元的史考特飞兹，超过的1.426亿美元溢价，代表着我们认为这家公司的实质价值大概是其帐面价值的两倍。

In the table below we trace the book value of Scott Fetzer, as well as its earnings and dividends, since our purchase.

下表显示的是自我们买下史考特飞兹后，历年来的帐面价值以及它的获利与股利收入。

(1) (4) Beginning (2) (3) Ending

Year Book Value Earnings Dividends Book Value (In $ Millions) (1)+(2)-(3)

1986
 
1987
 
1988
 
1989
 
1990
 
1991
 
1992
 
1993
 
1994
 

$172.6
 
87.9
 
95.5  
 
118.
 
105.5 
 
133.3
 
120.7  
 
111.2 
 
90.7
 

$ 40.3
 
48.6
 
58.0
 
58.5
 
61.3
 
61.4
 
70.5
 
77.5
 
79.3
 

$125.0
 
41.0
 
35.0
 
671.5
 
33.5
 
74.0
 
80.0
 
98.0
 
76.0
 

$ 87.9
 
95.5
 
118.6
 
105.5
 
133.3
 
120.7
 
111.2
 
90.7
 
94.0
 

Because it had excess cash when our deal was made, Scott Fetzer was able to pay Berkshire dividends of $125 million in 1986, though it earned only $40.3 million. I should mention that we have not introduced leverage into Scott Fetzer's balance sheet. In fact, the company has gone from very modest debt when we purchased it to virtually no debt at all (except for debt used by its finance subsidiary). Similarly, we have not sold plants and leased them back, nor sold receivables, nor the like. Throughout our years of ownership, Scott Fetzer has operated as a conservatively-financed and liquid enterprise.

因为在购并交易完成当年，公司帐上有多余的现金，所以虽然史考特飞兹1986年的获利只有4,030万美元，但却能够支付Berkshire 1.25亿美元的股利，另外还有一点我必须强调的是，在史考特飞兹我们并没有运用任何的财务杠杆，事实上，该公司在我们购并之初的负债便相当有限，之后甚至还掉了所有的债务(除了财务子公司的借款)，同时我们也没有把工厂卖掉再租回来或是出售应收帐款之类的举动，在我们拥有的这几年，史考特飞兹一直以相当保守的财务杠杆经营并且维持相当高的流动性。

As you can see, Scott Fetzer's earnings have increased steadily since we bought it, but book value has not grown commensurately. Consequently, return on equity, which was exceptional at the time of our purchase, has now become truly extraordinary. Just how extraordinary is illustrated by comparing Scott Fetzer's performance to that of the Fortune 500, a group it would qualify for if it were a stand-alone company.

大家可以看到，史考特飞兹的盈余在我们买下之后持续稳定的增加，不过在此同时净值却未呈等比例的增加，也因此在我们买下该公司时，就已经相当不错的股东权益报酬率，到现在又变得更加优异，我们甚至可以拿它与财星五百大作比较，事实上以史考特飞兹的规模，若单独计便得以列入五百大之林。

Had Scott Fetzer been on the 1993 500 list - the latest available for inspection - the company's return on equity would have ranked 4th. But that is far from the whole story. The top three companies in return on equity were Insilco, LTV and Gaylord Container, each of which emerged from bankruptcy in 1993 and none of which achieved meaningful earnings that year except for those they realized when they were accorded debt forgiveness in bankruptcy proceedings. Leaving aside such non-operating windfalls, Scott Fetzer's return on equity would have ranked it first on the Fortune 500, well ahead of number two. Indeed, Scott Fetzer's return on equity was double that of the company ranking tenth.

以所能得到最新的1993年五百大名单来说，该公司的股东权益报酬率可以名列第四，故事还没结束，前三名分别是Insilco、LTV与Gaylord，全部都是因为当年度脱离破产边缘，除了当年因为债务获得免除致使盈余暴增之外，其它年度的获利皆乏善可陈，因此若扣除这些没什么营运的烂果子的话，史考特飞兹的股东权益报酬率足以名列财星五百大首位，远远比其它对手拋在脑后，甚至是第十名的两倍之多。

You might expect that Scott Fetzer's success could only be explained by a cyclical peak in earnings, a monopolistic position, or leverage. But no such circumstances apply. Rather, the company's success comes from the managerial expertise of CEO Ralph Schey, of whom I'll tell you more later.

或许你会认为史考特飞兹的成功不过是盈余循环的高峰、独占垄断或是靠财务杠杆，不过全都不对，这家公司真正成功的原因在于总裁Ralph Schey优异的管理技能，这点在后面我们还会详加报告。

First, however, the promised accounting lesson: When we paid a $142.6 million premium over book value for Scott Fetzer, that figure had to be recorded on Berkshire's balance sheet. I'll spare you the details of how this worked (these were laid out in an appendix to our 1986 Annual Report) and get to the bottom line: After a premium is initially recorded, it must in almost all cases be written off over time through annual charges that are shown as costs in the acquiring company's earnings statement.

接下来是之前说过的会计课，我们支付超过史考特飞兹帐面价值1.426亿美元的溢价，将会被记录在Berkshire的资产负债表上，详细的细节我就予以省略(这些在我们1986年年报的附录都有)，而溢价在登录之后，不管怎样都必须按年摊销当作成本，并显现在每年的盈余报表之上。

The following table shows, first, the annual charges Berkshire has made to gradually extinguish the Scott Fetzer acquisition premium and, second, the premium that remains on our books. These charges have no effect on cash or the taxes we pay, and are not, in our view, an economic cost (though many accountants would disagree with us). They are merely a way for us to reduce the carrying value of Scott Fetzer on our books so that the figure will eventually match the net worth that Scott Fetzer actually employs in its business.

下表显示，第一栏是Berkshire每年必须慢慢地摊销购买史考特飞兹所产生的溢价的余额，第二栏是每年必须摊销的金额，这些费用对现金部位或税负支出都不会有影响，同时就我们的观点而言，也没有任何实质的经济意义(虽然很多会计师可能不同意我们的看法)，这不过是让我们的帐列投资成本能够慢慢减少，到最后终与史考特飞兹本身帐列净值一致的方法而已。

Beginning Purchase-Premium EndingPurchase Charge to PurchaseYear Premium Berkshire Earnings Premium (In $ Millions)

1986
 
1987
 
1988
 
1989
 
1990
 
1991
 
1992
 
1993
 
1994
 

$142.6
 
131.0
 
123.9
 
115.9
 
108.9
 
101.9
 
95.0
 
87.2
 
59.1
 

$ 11.6
 
7.1
 
7.9
 
7.0
 
7.1
 
6.9
 
7.7
 
28.1
 
4.9
 

$131.0
 
123.9
 
115.9
 
108.9
 
101.9
 
95.0
 
87.2
 
59.1
 
54.2
 

Note that by the end of 1994 the premium was reduced to $54.2 million. When this figure is added to Scott Fetzer's year-end book value of $94 million, the total is $148.2 million, which is the current carrying value of Scott Fetzer on Berkshire's books. That amount is less than half of our carrying value for the company when it was acquired. Yet Scott Fetzer is now earning about twice what it then did. Clearly, the intrinsic value of the business has consistently grown, even though we have just as consistently marked down its carrying value through purchase-premium charges that reduced Berkshire's earnings and net worth.

大家可能注意到截至1994年底为止，帐列的溢价还剩下5,420万美元，这个数字若再加上史考特飞兹当年底的净值9,400万美元的话，就等于Berkshire帐上持有该公司的投资成本1.482亿美元，这个数字甚至不到当初我们买下它时的一半不到，然而史考特飞兹现在每年所赚的钱，却是当时的二倍，很明显的，其实质价值一直都在成长，然而透过溢价摊销，Berkshire帐上持有的投资成本却一再向下调整。

The difference between Scott Fetzer's intrinsic value and its carrying value on Berkshire's books is now huge. As I mentioned earlier - but am delighted to mention again - credit for this agreeable mismatch goes to Ralph Schey, a focused, smart and high-grade manager.

史考特飞兹实质价值与其在Berkshire帐上的帐面价值差距越来越大，如同先前我曾经提到而现在也很高兴在重申一次，这种不对称的现象完全都要归功于Ralph Schey-这位专注、聪明且高格调的经理人。

The reasons for Ralph's success are not complicated. Ben Graham taught me 45 years ago that in investing it is not necessary to do extraordinary things to get extraordinary results. In later life, I have been surprised to find that this statement holds true in business management as well. What a manager must do is handle the basics well and not get diverted. That's precisely Ralph's formula. He establishes the right goals and never forgets what he set out to do. On the personal side, Ralph is a joy to work with. He's forthright about problems and is self-confident without being self-important.

Ralph之所以能够成功的原因并不复杂，我的老师葛拉汉四十五年前就告诉我，画蛇不必添足，尔后在我个人的投资生涯，我相当惊讶地发现，这道理也适用在企业管理之上，经理人真正应该做的是把基本工夫做好而不分心，这正是Ralph的做事方法，在设立好正确的目标后，并毫不犹豫放手去做，至于在私底下， Ralph也是很好共事的人，对于问题他坦率直言，自信却不自大。

He is also experienced. Though I don't know Ralph's age, I do know that, like many of our managers, he is over 65. At Berkshire, we look to performance, not to the calendar. Charlie and I, at 71 and 64 respectively, now keep George Foreman's picture on our desks. You can make book that our scorn for a mandatory retirement age will grow stronger every year.

我忘了经验丰富的Ralph今年真正的岁数? 但我确信他跟我们旗下其它许多经理人一样，老早就过了65岁，在Berkshire，我们注重的是绩效，而不是年资，查理今年71岁，而我64岁，两人都把拳王George Foreman的照片摆在桌上，你可以记下，我们对于强制退休年龄的反感将会与日俱增。

Intrinsic Value and Capital Allocation实质价值与资金分配

Understanding intrinsic value is as important for managers as it is for investors. When managers are making capital allocation decisions - including decisions to repurchase shares - it's vital that they act in ways that increase per-share intrinsic value and avoid moves that decrease it. This principle may seem obvious but we constantly see it violated. And, when misallocations occur, shareholders are hurt.

了解实质价值，对经理人来说，其重要性与投资人一般，当经理人本身在做资金分配的决策时-也包含决定买回股份，必须确定这些举动能够增加公司的实质价值，并尽量避免损害实质价值的举动，这原则看来理所当然，但是违反的情况却屡见不鲜，而只要不当的决策形成，股东的权益立即就会受到伤害。

For example, in contemplating business mergers and acquisitions, many managers tend to focus on whether the transaction is immediately dilutive or anti-dilutive to earnings per share (or, at financial institutions, to per-share book value). An emphasis of this sort carries great dangers. Going back to our college-education example, imagine that a 25-year-old first-year MBA student is considering merging his future economic interests with those of a 25-year-old day laborer. The MBA student, a non-earner, would find that a "share-for-share" merger of his equity interest in himself with that of the day laborer would enhance his near-term earnings (in a big way!). But what could be sillier for the student than a deal of this kind?

举例来说，在思考企业合并与购并活动时，许多经理人都会专注于每股盈余是会被稀释或是反稀释(或是在金融机构，则是每股帐面价值)，过分强调这点是相当危险的，回到我们先前所举大学教育的例子，假设一位25岁MBA一年级的学生，考虑将他个人未来的经济利益与另一位25岁的工人做结合，他会发现如果现在尚无谋生能力的他，要是现在与工人做一比一的合并的话，他往后几年的赚钱能力将会立即大幅提升，但是你想这位MBA会笨到接受这样的提议吗?

In corporate transactions, it's equally silly for the would-be purchaser to focus on current earnings when the prospective acquiree has either different prospects, different amounts of non-operating assets, or a different capital structure. At Berkshire, we have rejected many merger and purchase opportunities that would have boosted current and near-term earnings but that would have reduced per-share intrinsic value. Our approach, rather, has been to follow Wayne Gretzky's advice: "Go to where the puck is going to be, not to where it is." As a result, our shareholders are now many billions of dollars richer than they would have been if we had used the standard catechism.

谈到企业购并，对于可能的买主来说，只专注于现在的获利情况却不管潜在的卖方拥有不同的前景、不一样的非营业资产或不同的资本结构，是一件很愚蠢的事，在Berkshire我们不知拒绝了多少那种虽然会让短期盈余美观但却可能损及每股实质价值的合并案或投资机会；总之我们的方式乃效法Wayne Gretzky的建议，要紧盯小精灵的去向而不是它现在的位置，结果长期下来比起运用一般的投资标准方法，我们的股东因此多赚了好几十亿美元。

The sad fact is that most major acquisitions display an egregious imbalance: They are a bonanza for the shareholders of the acquiree; they increase the income and status of the acquirer's management; and they are a honey pot for the investment bankers and other professionals on both sides. But, alas, they usually reduce the wealth of the acquirer's shareholders, often to a substantial extent. That happens because the acquirer typically gives up more intrinsic value than it receives. Do that enough, says John Medlin, the retired head of Wachovia Corp., and "you are running a chain letter in reverse."

很遗憾的是，大部分的购并交易案都充满了不公平性，对于被购并方来说，算是得到解脱，购并一方的管理阶层则名利双收，旁边的投资银行家与专业顾问也都能跟着大捞一笔，只不过真正受害的却是购并方背后全体的股东，他们损失惨重，原因在于购并公司最后所得到的实质价值通常远比得到的低，就像是Wachovia公司已退休的领导人John Medlin说，这种事做太多，就好象是在倒写连锁信一样。

Over time, the skill with which a company's managers allocate capital has an enormous impact on the enterprise's value. Almost by definition, a really good business generates far more money (at least after its early years) than it can use internally. The company could, of course, distribute the money to shareholders by way of dividends or share repurchases. But often the CEO asks a strategic planning staff, consultants or investment bankers whether an acquisition or two might make sense. That's like asking your interior decorator whether you need a $50,000 rug.

就长期而言，公司经理然滥用公司资金将会对企业的价值有很大的影响，我们认为一家好公司所能贡献出的现金(至少是在早期)，一定会超过其本身内部所需，而公司当然可以透过分配股利或买回股份的方式回馈给股东，但是通常企业的CEO会要求公司策略企划部门、顾问或是投资银行，做出购并一、两家公司的必要性报告，这样的做法就好象是问你的室内设计师，你是否应该增添一条五万美元的地毯。

The acquisition problem is often compounded by a biological bias: Many CEO's attain their positions in part because they possess an abundance of animal spirits and ego. If an executive is heavily endowed with these qualities - which, it should be acknowledged, sometimes have their advantages - they won't disappear when he reaches the top. When such a CEO is encouraged by his advisors to make deals, he responds much as would a teenage boy who is encouraged by his father to have a normal sex life. It's not a push he needs.

这类购并问题又因为隐藏在背后的生物原始本能而变得更复杂，许多CEO之所以能够做到这个位置，部份的原因在于他们先天拥有相当丰富的动物本能与自尊，当然我们必须承认一位主管拥有这样的特质，有时对他们有极大的优势，然而这种本能在他们爬上顶峰之后并不会消失，而当CEO被其顾问们鼓励去进行购并交易时，我想他的反应跟一位青少年被父亲鼓励可以拥有正常的性生活一样，这样的做法未免有点揠苗助长。

Some years back, a CEO friend of mine - in jest, it must be said - unintentionally described the pathology of many big deals. This friend, who ran a property-casualty insurer, was explaining to his directors why he wanted to acquire a certain life insurance company. After droning rather unpersuasively through the economics and strategic rationale for the acquisition, he abruptly abandoned the script. With an impish look, he simply said: "Aw, fellas, all the other kids have one."

几年前，我的一位CEO朋友半开玩笑地在无意间透露出许多大交易的病态心理，我这位朋友经营的是一家产物意外险公司，当时他在董事会上向所有的成员解释为何公司必须要取得一家人寿保险公司，在就经济与策略面解释了半天理由之后，突然间他停止了演说，同时露出顽皮的眼神说道：「好吧！我承认，谁叫其它人也都有一家。」

At Berkshire, our managers will continue to earn extraordinary returns from what appear to be ordinary businesses. As a first step, these managers will look for ways to deploy their earnings advantageously in their businesses. What's left, they will send to Charlie and me. We then will try to use those funds in ways that build per-share intrinsic value. Our goal will be to acquire either part or all of businesses that we believe we understand, that have good, sustainable underlying economics, and that are run by managers whom we like, admire and trust.

在Berkshire，我们的经理人不断地透过看似平凡普通的事业，赚取惊人的报酬，这些经理人的第一步是先寻找可以充分利用其盈余的最佳方法，之后再把剩余的资金交回给查理跟我，然后我们会试着为这些资金寻找更好的出路以创造出更多的实质价值，我们的目标是取得我们熟悉了解、有持续竞争力且由我们喜爱、崇拜与信任的经理人所经营的公司的部份或全部所有权。

Compensation薪资报酬

At Berkshire, we try to be as logical about compensation as about capital allocation. For example, we compensate Ralph Schey based upon the results of Scott Fetzer rather than those of Berkshire. What could make more sense, since he's responsible for one operation but not the other? A cash bonus or a stock option tied to the fortunes of Berkshire would provide totally capricious rewards to Ralph. He could, for example, be hitting home runs at Scott Fetzer while Charlie and I rang up mistakes at Berkshire, thereby negating his efforts many times over. Conversely, why should option profits or bonuses be heaped upon Ralph if good things are occurring in other parts of Berkshire but Scott Fetzer is lagging?

在Berkshire，有关薪资报酬这方面，我们试着采取与处理资金分配时一样合理的做法，举例来说，我们给付给Ralph Schey的报酬是根据他在史考特飞兹而非Berkshire的成绩而定，这样的方式再合理不过了，因为他负责的是单一部门而非全Berkshire的营运，若是将他的报酬全部锁在Berkshire的荣枯身上，对Ralph Schey来说，其报酬将会显得不公平，比如说有可能他在史考特飞兹击出全垒打但查理跟我却在Berkshire把事情给搞砸了，最后使得他的功劳与我们的过错相抵销，而万一要是Berkshire别的部门大放异彩的同时，史考特飞兹的表现却平平，那么Ralph Schey又有什么理由跟其它人一样分享Berkshire的获利与奖金呢?
In setting compensation, we like to hold out the promise of large carrots, but make sure their delivery is tied directly to results in the area that a manager controls. When capital invested in an operation is significant, we also both charge managers a high rate for incremental capital they employ and credit them at an equally high rate for capital they release.

在设定薪资报酬标准时，我们不会吝啬提出重赏的承诺，但绝对必须是在各个经理人的职权范围内论功行赏，当我们决定对某项营运投入大笔资金时，我们会将高额的资金利息成本算在其经理人的头上，相对地，当他们将多余的资金释回给我们时，我们也会对等的利息收入记在其经理人的功劳簿上。

The product of this money's-not-free approach is definitely visible at Scott Fetzer. If Ralph can employ incremental funds at good returns, it pays him to do so: His bonus increases when earnings on additional capital exceed a meaningful hurdle charge. But our bonus calculation is symmetrical: If incremental investment yields sub-standard returns, the shortfall is costly to Ralph as well as to Berkshire. The consequence of this two-way arrangement is that it pays Ralph - and pays him well - to send to Omaha any cash he can't advantageously use in his business.

这种资金有价的游戏规则，在史考特飞兹决策上再清楚也不过了，如果Ralph可以运用额外的资金创造出高额的报酬，那么他就绝对有理由这么做，因为当公司的投资报酬超过一定的门槛后，他本身所获得的奖金也会跟着水涨船高，不过我们的奖励方式可是赏罚分明，相对地，要是额外的投入的资金没有办法贡献足够的报酬，Ralph本身连同Berkshire都将一体受害，另一方面，要是Ralph能将多余用不到的资金送回奥玛哈给我们的话，他将可以因而获得丰厚的奖金报酬。

It has become fashionable at public companies to describe almost every compensation plan as aligning the interests of management with those of shareholders. In our book, alignment means being a partner in both directions, not just on the upside. Many "alignment" plans flunk this basic test, being artful forms of "heads I win, tails you lose."

最近上市公司很流行强调管理阶层的利益与公司的股东是一致的，不过在我们的赏罚簿上，所谓的"一致"是对等的，而不是只有当公司营运顺利时才如此，许多公司的一致性就不符合我们的标准，因为表面上虽是如此，但其实骨子里玩的却是"正面我赢，反面你输"的游戏。

A common form of misalignment occurs in the typical stock option arrangement, which does not periodically increase the option price to compensate for the fact that retained earnings are building up the wealth of the company. Indeed, the combination of a ten-year option, a low dividend payout, and compound interest can provide lush gains to a manager who has done no more than tread water in his job. A cynic might even note that when payments to owners are held down, the profit to the option-holding manager increases. I have yet to see this vital point spelled out in a proxy statement asking shareholders to approve an option plan.

这种不一致的情况最明显的莫过于员工认股权了，因为认股权的认购价格并没有定期予以检视调整，这等于是漠视公司本身随着盈余的累积自动可增加的获利能力，假设一家公司给予员工十年的认股权，又该公司股利发放的比例很低，则经理人就很有可能会得到超过其本身应得的报酬，计较一点的人甚至会发现，每年支付给股东的盈余越来越少，但经理人透过认股权行使所得到的利益却越来越多，到目前为止，我还没有在一般公司股东会的投票议案里，看到有要求股东表决是否核准认股权计画案的。

I can't resist mentioning that our compensation arrangement with Ralph Schey was worked out in about five minutes, immediately upon our purchase of Scott Fetzer and without the "help" of lawyers or compensation consultants. This arrangement embodies a few very simple ideas - not the kind of terms favored by consultants who cannot easily send a large bill unless they have established that you have a large problem (and one, of course, that requires an annual review). Our agreement with Ralph has never been changed. It made sense to him and to me in 1986, and it makes sense now. Our compensation arrangements with the managers of all our other units are similarly simple, though the terms of each agreement vary to fit the economic characteristics of the business at issue, the existence in some cases of partial ownership of the unit by managers, etc.

我忍不住要提到我们与史考特飞兹总裁Ralph Schey所做的薪资协议，在我们正式买下史考特飞兹之后，只花了五分钟就达成这项协议，这中间没有律师或人力资源顾问的"协助"，这些条件仅仅包含了几个简单的概念，与那些不得不提出复杂的条款否则就无法附上高昂的帐单的人力资源顾问有很大的不同(而且这些条款每年还须定期检视以决定是否有修正的必要)，反观我们与Ralph的协议到目前为止从未更动过，当初在1986年我们双方认为公平合理的，至今仍然是如此，同样的我们与旗下事业其它经理人的协议也都相当简单，当然依照产业特性的不同以及部份经理人同时拥有部份所有权等情形，而有所变化。

In all instances, we pursue rationality. Arrangements that pay off in capricious ways, unrelated to a manager's personal accomplishments, may well be welcomed by certain managers. Who, after all, refuses a free lottery ticket? But such arrangements are wasteful to the company and cause the manager to lose focus on what should be his real areas of concern. Additionally, irrational behavior at the parent may well encourage imitative behavior at subsidiaries.

在所有的个案中，我们强调的是公平合理，当然经理人对于高的不合理，或是名不符实的报酬通常都来者不拒，必竟没有人会拒绝免费的热透彩，但是这类的安排，对于公司的资源来说是一种浪费，同时也会导致经理人忘记他真正应该关心的事，此外，母公司脱序的行为等于是间接鼓励旗下子公司起而效尤。

At Berkshire, only Charlie and I have the managerial responsibility for the entire business. Therefore, we are the only parties who should logically be compensated on the basis of what the enterprise does as a whole. Even so, that is not a compensation arrangement we desire. We have carefully designed both the company and our jobs so that we do things we enjoy with people we like. Equally important, we are forced to do very few boring or unpleasant tasks. We are the beneficiaries as well of the abundant array of material and psychic perks that flow to the heads of corporations. Under such idyllic conditions, we don't expect shareholders to ante up loads of compensation for which we have no possible need.

在Berkshire，只有查理跟我对公司整体的经营负全责，因此我们两人是唯一应该以公司整体的表现作为薪资报酬的依据，即便如此，那也不是我们两人真正想要的方式，我们花了相当的时间塑造我们的公司与工作模式，好让我们可以与我们欣赏的人一起做我们想做的事，同时也让我们可以不会被迫去做一些无聊或是不想做的工作，当这些物质与精神的报酬流向企业总部时，我们是最大的受惠者，在这种田园诗歌般的工作环境下，我们不期望股东们还需要额外给予一些我们不太需要的多余报酬。

Indeed, if we were not paid at all, Charlie and I would be delighted with the cushy jobs we hold. At bottom, we subscribe to Ronald Reagan's creed: "It's probably true that hard work never killed anyone, but I figure why take the chance."

事实上，就算不领薪水，查理跟我还是会乐在我们现在这种舒适的工作，最起码，我们效法里根总统的信条，辛勤的工作不太可能要一个人的命，但我在想为何要冒这个险呢。

Sources of Reported Earnings帐列盈余的来源

The table on the next page shows the main sources of Berkshire's reported earnings. In this presentation, purchase-premium charges of the type we discussed in our earlier analysis of Scott Fetzer are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. This form of presentation seems to us to be more useful to investors and managers than one utilizing GAAP, which requires purchase premiums to be charged off, business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

Berkshire's Share of Net Earnings (after taxes and Pre-Tax Earnings minority interests) (000s omitted)

Operating Earnings: Insurance Group:

 
 
Underwriting
 
Net Investment Income
 
Buffalo News
 
Fechheimer
 
Finance Businesses
 
Kirby
 
Nebraska Furniture Mart
 
See's Candies
 

1994
 
$129,926
 
419,422
 
54,238
 
14,260
 
21,568
 
42,349
 
17,356
 
47,539
 

1993
 
$ 30,876
 
375,946
 
50,962
 
13,442
 
22,695
 
39,147
 
21,540
 
41,150
 

1994
 
$ 80,860
 
350,453
 
31,685
 
7,107
 
14,293
 
27,719
 
8,652
 
28,247
 

1993
 
$ 20,156
 
321,321
 
29,696
 
6,931
 
14,161
 
25,056
 
10,398
 
24,367
 

 
 
Scott Fetzer Manufacturing Group
 
Shoe Group
 
World Book
 
Purchase-Price Premium Charges
 
Interest Expense**
 
Shareholder-Designated Contributions
 
Other
 

1994
 
39,435
 
85,503
 
24,662
 
(22,595)
 
(60,111)
 
(10,419)
 
36,232
 

1993
 
38,196
 
44,025*
 
19,915
 
(17,033)
 
(56,545)
 
(9,448)
 
28,428
 

1994
 
24,909
 
55,750
 
17,275
 
(19,355)
 
(37,264)
 
(6,668)
 
22,576
 

1993
 
23,809
 
28,829
 
13,537
 
(13,996)
 
(35,614)
 
(5,994)
 
15,094
 

.............

 
 
Operating Earnings
 
Sales of Securities
 
Decline in Value of USAir Preferred Stock
 
Tax Accruals Caused by New Accounting Rules
 
Total Earnings - All Entities
 

1994
 
839,365
 
91,332
 
(268,500)
 
---
 
$662,197
 

1993
 
643,296
 
546,422
 
---
 
---
 
$1,189,718
 

1994
 
606,239
 
61,138
 
(172,579)
 
---
 
$494,798
 

1993
 
477,751
 
356,702
 
---
 
(146,332)
 
$688,121
 

* Includes Dexter's earnings only from the date it was acquired, November 7, 1993. *Dexter的盈余仅含购并日1993年11月7日以后的盈余

**Excludes interest expense of Finance Businesses. **不含商业与消费金融公司的利息费用。

A large amount of information about these businesses is given on pages 37-48, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 53-59, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company. Our intent is to supply you with the financial information that we would wish you to give us if our positions were reversed.

在年报中你可以找到依照一般公认会计原则编制，详细的部门别信息，至于我们的目的是希望给你所有查理跟我认为在评估Berkshire价值时，应该必要的资讯。

"Look-Through" Earnings透视盈余

In past reports, we've discussed look-through earnings, which we believe more accurately portray the earnings of Berkshire than does our GAAP result. As we calculate them, look-through earnings consist of: (1) the operating earnings reported in the previous section, plus; (2) the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. The "operating earnings" of which we speak here exclude capital gains, special accounting items and major restructuring charges.

之前我们曾经讨论过透视盈余，比起一般公认会计原则的数字，这是我们认为它更能反应Berkshire本身实际的获利状况，其主要的组成份子有(1)前段所提到的帐列盈余，加上(2)主要被投资公司的保留盈余，按一般公认会计原则未反应在我们公司帐上的盈余，扣除(3)若这些未反应的盈余分配给我们时，估计可能要缴的所得税。在这里我们所谓的营业盈余系扣除资本利得、特别会计调整与企业调整的主要支出。

If our intrinsic value is to grow at our target rate of 15%, our look-through earnings, over time, must also increase at about that pace. When I first explained this concept a few years back, I told you that meeting this 15% goal would require us to generate look-through earnings of about $1.8 billion by 2000. Because we've since issued about 3% more shares, that figure has grown to $1.85 billion.

长期而言，如果我们的实质价值想要以每年15%的幅度来成长的话，那么透视盈余每年也必须增加以这个幅度来成长，几年前我第一次提到这个观念时曾表示，到公元2000年为止，Berkshire若要以15%的目标，透视盈余必须成长18亿美元以上，而由于1993年我们又发行了一些新股，所以现在的门槛提高到18.5亿美元。

We are now modestly ahead of schedule in meeting our goal, but to a significant degree that is because our super-cat insurance business has recently delivered earnings far above trend-line expectancy (an outcome I will discuss in the next section). Giving due weight to that abnormality, we still expect to hit our target but that, of course, is no sure thing.

到目前为止，我们稍微超越目标进度，但其中有一项很重要的原因是我们的霹雳猫保险近年来的表现超乎预期的好 (有关这部份在下一段我还会详加叙述)，虽然即使扣除这项不正常部份，我们还是符合当初预期，但还是不能保证一定达的到。

The following table shows how we calculate look-through earnings, though I warn you that the figures are necessarily very rough. (The dividends paid to us by these investees have been included in the operating earnings itemized on page 12, mostly under "Insurance Group: Net Investment Income.")

各位可以从下表看出我们是如何计算透视盈余的，不过我还是要提醒各位这些数字有点粗糙，(被投资公司所分配的股利收入已经包含在保险事业的净投资收益项下)。

Berkshire's Shareof UndistributedBerkshire's Approximate Operating Earnings Berkshire's Major Investees Ownership at Yearend (in millions)

1994 1993 1994 1993

 
 
American Express Company
 
Capital Cities/ABC, Inc
 
The Coca-Cola Company
 
Federal Home Loan Mortgage Corp.
 
Gannett Co., Inc.
 
GEICO Corp
 
The Gillette Company
 
PNC Bank Corp.
 
The Washington Post Company
 
Wells Fargo & Company
 

1994
 
5.5%  
 
13.0%
 
7.8% 
 
6.3%(1)
 
4.9%  
 
50.2%
 
10.8%  
 
8.3% 
 
15.2%  
 
13.3%
 

1993
 
2.4%
 
13.0%
 
7.2%
 
6.8%(1)
 
---
 
48.4%
 
10.9%
 
---
 
14.8%
 
12.2%
 

1994
 
$ 25(2)
 
85
 
116(2)
 
47(2)
 
4(2)
 
63(3)
 
51
 
10(2)
 
18
 
73
 

1993
 
$ 16
 
83(2)
 
94
 
41(2)
 
---
 
76(3)
 
44
 
---
 
15
 
53(2)
 

Berkshire's share of undistributed earnings of major investees $ 492 $422

Hypothetical tax on these undistributed investee earnings(4) (68) (59)

Reported operating earnings of Berkshire 606 478

Total look-through earnings of Berkshire $1,030 $ 841

(1) Does not include shares allocable to the minority interest at Wesco不包含Wesco的少数股权

(2) Calculated on average ownership for the year以年平均持有股权比例计算

(3) Excludes realized capital gains, which have been both recurring and significant扣除重复发生且金额大的已实现资本利得，

(4) The tax rate used is 14%, which is the rate Berkshire pays on the dividends it receives适用的税率为14%，这是Berkshire收到现金股利时的平均税率。

Insurance Operations保险事业营运

As we've explained in past reports, what counts in our insurance business is, first, the amount of "float" we develop and, second, its cost to us. Float is money we hold but don't own. In an insurance operation, float arises because most policies require that premiums be prepaid and, more importantly, because it usually takes time for an insurer to hear about and resolve loss claims.

就像我们在过去年报跟各位解释过的，保险事业最重要的关键，第一是保险浮存金的数量，第二是它的成本，浮存金是我们持有并非我们所有，保险事业营运之所以能有浮存金的原因在于大部分的保单都要求保户必须预付保险费，另外更重要的是保险公司在被知会并真正理赔之前，通常都要经过好长的一段时间。

Typically, the premiums that an insurer takes in do not cover the losses and expenses it must pay. That leaves it running an "underwriting loss" - and that loss is the cost of float.

通常保险公司实际上收到的保费并不足以支应发生的损失与费用，所以大多会产生承保的损失，而这就是浮存金的成本。

An insurance business is profitable over time if its cost of float is less than the cost the company would otherwise incur to obtain funds. But the business has a negative value if the cost of its float is higher than market rates for money.

长期而言，保险公司的浮存金成本若能低于其它资金管道所需的成本就能获利，但是要是其浮存金成本高于货币市场利率的话，其是否有存在的价值就有疑问。

As the numbers in the following table show, Berkshire's insurance business has been an enormous winner. For the table, we have compiled our float - which we generate in exceptional amounts relative to our premium volume - by adding loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves and then subtracting agents' balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. Our cost of float is determined by our underwriting loss or profit. In those years when we have had an underwriting profit, such as the last two, our cost of float has been negative, and we have determined our insurance earnings by adding underwriting profit to float income.

如同下表中的数字所显示的，Berkshire的保险事业大获全胜，表中的浮存金，系将所有的损失准备、损失费用调整准备与未赚取保费加总后，再扣除应付佣金、预付购并成本及相关再保递延费用，相对于我们的保费收入总额，我们的浮存金部位算是相当大的，至于浮存金的成本则决定于所发生的承保损失或利益而定，在某些年度由于我们有承保利益，所以换句话说，我们的资金成本甚至是负的，此时我们的保险事业盈余等于是由原先从浮存金获取的利益再加上承保利益。

(1) (2) Yearend Yield

Underwriting Approximate on Long-TermLoss Average Float Cost of Funds Govt. Bonds  (In $ Millions) (Ratio of 1 to 2)

1967
 
profit $ 17.3 less than zero 5.50%
 
1982
 
21.56 220.6 9.77% 10.64%
 

1968
 
profit 19.9 less than zero 5.90%
 
1983
 
33.87 231.3 14.64% 11.84%
 

1969
 
profit 23.4 less than zero 6.79%
 
1984
 
48.06 253.2 18.98% 11.58%
 

1970
 
$ 0.37 32.4 1.14% 6.25%
 
1985
 
44.23 390.2 11.34% 9.34%
 

1971
 
profit 52.5 less than zero 5.81%
 
1986
 
55.84 797.5 7.00% 7.60%
 

1972
 
profit 69.5 less than zero 5.82%
 
1987
 
55.43 1,266.7 4.38% 8.95%
 

1973
 
profit 73.3 less than zero 7.27%
 
1988
 
11.08 1,497.7 0.74% 9.00%
 

1974
 
7.36 79.1 9.30% 8.13%
 
1989
 
24.40 1,541.3 1.58% 7.97%
 

1975
 
11.35 87.6 12.96% 8.03%
 
1990
 
26.65 1,637.3 1.63% 8.24%
 

1976
 
profit 102.6 less than zero 7.30%
 
1991
 
119.59 1,895.0 6.31% 7.40%
 

1977
 
profit 139.0 less than zero 7.97%
 
1992
 
108.96 2,290.4 4.76% 7.39%
 

1978
 
profit 190.4 less than zero 8.93%
 
1993
 
profit 2,624.7 less than zero 6.35%
 

1979
 
profit 227.3 less than zero 10.08%
 
1994
 
profit 3,056.6 less than zero 7.88%
 

Charlie and I are delighted that our float grew in 1994 and are even more pleased that it proved to be cost-free. But our message this year echoes the one we delivered in 1993: Though we have a fine insurance business, it is not as good as it currently looks.

查理跟我对于1994年的浮存金能够继续成长都感到相当高兴，更有甚者，这些资金都是完全免费的，但是我们还是要像去年那样再强调一次，虽然我们的保险事业经营得不错，但实际上并没有外界想象中的好。

The reason we must repeat this caution is that our "super-cat" business (which sells policies that insurance and reinsurance companies buy to protect themselves from the effects of mega-catastrophes) was again highly profitable. Since truly major catastrophes occur infrequently, our super-cat business can be expected to show large profits in most years but occasionally to record a huge loss. In other words, the attractiveness of our super-cat business will take many years to measure. Certainly 1994 should be regarded as close to a best-case. Our only significant losses arose from the California earthquake in January. I will add that we do not expect to suffer a major loss from the early-1995 Kobe earthquake.

我们之所以一再强调这一点的原因在于我们的霹雳猫业务(也就是专门提供保险公司与再保公司规避重大天然灾害风险的保单)今年再度赚大钱，由于真正重大的灾害并不常发生，所以我们的霹雳猫业务有可能在连续几年赚大钱后，突然发生重大的损失，换句话说，我们这项霹雳猫业务到底有多吸引人可能要花上好几年才有办法看清，当然1994年绝对是相当好的一年，唯一的重大灾害要算是一月所发生的加州大地震，另外在这里我要特别声明1995年初发生的神户大地震对我们造成的损失并不大。

Super-cat policies are small in number, large in size and non-standardized. Therefore, the underwriting of this business requires far more judgment than, say, the underwriting of auto policies, for which a mass of data is available. Here Berkshire has a major advantage: Ajit Jain, our super-cat manager, whose underwriting skills are the finest. His value to us is simply enormous.

霹雳猫保单有数量少、金额高且非制式化的特性，因此，要承接这类业务必须仰赖相当专业的判断，而不像一般的汽车保险有庞大的数据库可供参考，就这点而言，Berkshire拥有一张王牌-Ajit Jain，他是我们霹雳猫业务的经理人，拥有最精细的承保技巧，他可以说是我们的无价之宝。

In addition, Berkshire has a special advantage in the super-cat business because of our towering financial strength, which helps us in two ways. First, a prudent insurer will want its protection against true mega-catastrophes - such as a $50 billion windstorm loss on Long Island or an earthquake of similar cost in California - to be absolutely certain. But that same insurer knows that the disaster making it dependent on a large super-cat recovery is also the disaster that could cause many reinsurers to default. There's not much sense in paying premiums for coverage that will evaporate precisely when it is needed. So the certainty that Berkshire will be both solvent and liquid after a catastrophe of unthinkable proportions is a major competitive advantage for us.

此外，在霹雳猫业务，Berkshire还拥有一项特殊的优势，那就是我们雄厚的财务实力，这对我们有相当大的帮助。首先，谨慎小心的保险公司都会希望对于真正天大的灾害-比如说像是纽约长岛发生飓风或加州大地震这类可能造成五百亿美元损失发生时，可以得到相当确切的依靠，但是保险公司也相当清楚，这类会造成本身财务需要支持的灾害，同样也有可能导致许多再保公司自顾不暇而破产，所以它们不太可能笨到将保费付出后，却换得无法兑现的承诺，也因此Berkshire可以确保在不可预期的天灾发生时，仍然有办法拿得出钱来理赔的稳当保证，就成为我们最佳的竞争优势。

The second benefit of our capital strength is that we can write policies for amounts that no one else can even consider. For example, during 1994, a primary insurer wished to buy a short-term policy for $400 million of California earthquake coverage and we wrote the policy immediately. We know of no one else in the world who would take a $400 million risk, or anything close to it, for their own account.

再者雄厚的财务实力让我们可以签下别人想都不敢想的大额保单，举例来说， 1994年，有一家保险业者临时想要买一张金额高达4亿美元的加州地震险保单，我们二话不说立刻接下来，我们敢说全世界除了我们以外，可能没有人敢独立接下这样的保单。

Generally, brokers attempt to place coverage for large amounts by spreading the burden over a number of small policies. But, at best, coverage of that sort takes considerable time to arrange. In the meantime, the company desiring reinsurance is left holding a risk it doesn't want and that may seriously threaten its well-being. At Berkshire, on the other hand, we will quote prices for coverage as great as $500 million on the same day that we are asked to bid. No one else in the industry will do the same.

一般来说，保险经纪人通常倾向将大额的保单拆成数张小额的保单以分散负担，但是这样的作业安排却颇耗费时间，同时也使得本来想要寻求再保分散风险的保险公司并须被迫面对它本来不愿意承担的风险，进而危及保险公司本身的利益，相对地在Berkshire，我们对单一保单的投保上限最高可以到达5亿美元，这是其它同业所做不到的。

By writing coverages in large lumps, we obviously expose Berkshire to lumpy financial results. That's totally acceptable to us: Too often, insurers (as well as other businesses) follow sub-optimum strategies in order to "smooth" their reported earnings. By accepting the prospect of volatility, we expect to earn higher long-term returns than we would by pursuing predictability.

虽然接下这类大额的保单，会使得Berkshire的经营成果变得很不稳定，但我们完全可以接受这样的结果，通常保险同业(其实其它的行业也一样)总是倾向采取比较保守的做法，使得营运数字可以平滑稳定一点，但是就这点而言，我们的做法比较不一样，选择接受变动较大的前景，我们可以获致比前景确定的方式更高的长期投资报酬。

Given the risks we accept, Ajit and I constantly focus on our "worst case," knowing, of course, that it is difficult to judge what this is, since you could conceivably have a Long Island hurricane, a California earthquake, and Super Cat X all in the same year. Additionally, insurance losses could be accompanied by non-insurance troubles. For example, were we to have super-cat losses from a large Southern California earthquake, they might well be accompanied by a major drop in the value of our holdings in See's, Wells Fargo and Freddie Mac.

在承受这类风险时，Ajit跟我总是会将焦点摆在最坏的状况下，虽然我们知道实在是很难去衡量，大家可以想象如果同一年发生长岛飓风、加州地震以及霹雳猫X时，会是怎样的一个光景，此外，保险损失通常会伴随非保险的问题，例如假设我们因为加州大地震而承受大量的霹雳猫损失，在此同时股市的大跌很有可能也会伴随而来，此举将会使得我们在喜斯糖果、富国银行与弗迪麦的持股价值大减。

All things considered, we believe our worst-case insurance loss from a super-cat is now about $600 million after-tax, an amount that would slightly exceed Berkshire's annual earnings from other sources. If you are not comfortable with this level of exposure, the time to sell your Berkshire stock is now, not after the inevitable mega-catastrophe.

在考虑过所有的状况之后，我们认为在最坏的情况下，我们在霹雳猫保险所可能产生的损失大约在6亿美元的上下，稍稍超过Berkshire每年从其它事业的盈余，如果你对于这样的风险感到不自在，那么现在是你卖出Berkshire股份的最佳时机，而不是等到这种无可避免的大灾难发生。

Our super-cat volume will probably be down in 1995. Prices for garden-variety policies have fallen somewhat, and the torrent of capital that was committed to the reinsurance business a few years ago will be inclined to chase premiums, irrespective of their adequacy. Nevertheless, we have strong relations with an important group of clients who will provide us with a substantial amount of business in 1995.

我们霹雳猫的业务量在1995年很有可能会下滑，因为保险的价格略微下滑，原因在于几年前新加入再保市场的资金，正以不合理的价格竞逐保单，尽管如此，我们还是拥有一些重要的客户群，可以稳定的贡献我们1995年业绩。

Berkshire's other insurance operations had excellent results in 1994. Our homestate operation, led by Rod Eldred; our workers' compensation business, headed by Brad Kinstler; our credit card operation, managed by the Kizer family; National Indemnity's traditional auto and general liability business, led by Don Wurster - all of these generated significant underwriting profits accompanied by substantial float.

Berkshire其它保险事业1994年的营运表现皆相当杰出，由Rod领导的住宅保险、Brad带领的员工退休保险以及由Kizer家族经营的信用卡保险业务，以及由Don所领导的国家产险所从事的传统汽车保险与一般责任险方面，总的来说，这四类业务都表现的相当不错，不但有承保获利，还贡献了相当大金额的保险浮存金。。

We can conclude this section as we did last year: All in all, we have a first-class insurance business. Though its results will be highly volatile, this operation possesses an intrinsic value that exceeds its book value by a large amount - larger, in fact, than is the case at any other Berkshire business.

总而言之，我们可以做出与去年同样的结论，我们拥有第一流的保险事业，虽然他们的经营成果变化相当的大，但是其实质价值却远超过其帐面的价值，而事实上，在Berkshire其它事业的身上也有类似的情况。

Common Stock Investments股票投资

Below we list our common stockholdings having a value of over $300 million. A small portion of these investments belongs to subsidiaries of which Berkshire owns less than 100%.

下表是我们超过三亿美元以上的普通股投资，一部份的投资系属于Berkshire关系企业所持有。

12/31/94 Shares Company Cost Market (000s omitted)

27,759,941
 
20,000,000
 
100,000,000
 
12,761,200
 
6,854,500
 

American Express Company
 
Capital Cities/ABC, Inc.
 
The Coca-Cola Company
 
Federal Home Loan Mortgage Corp. ("Freddie Mac")
 
Gannett Co., Inc.
 

$ 723,919
 
345,000
 
1,298,888
 
270,468
 
335,216
 

$ 818,918
 
1,705,000
 
5,150,000
 
644,441
 
365,002
 

34,250,000
 
24,000,000
 
19,453,300
 
1,727,765
 
6,791,218
 

GEICO Corp
 
The Gillette Company
 
PNC Bank Corporation
 
The Washington Post Company
 
Wells Fargo & Company
 

45,713
 
600,000
 
503,046
 
9,731
 
423,680
 

1,678,250
 
1,797,000
 
410,951
 
418,983
 
984,727
 

Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).

我们的投资组合持续保持集中、简单的风格，真正重要的投资概念通常可以用简单的话语来作说明，我们偏爱具有持续竞争力并且由才能兼具、以股东利益为导向的经理人所经营的优良企业，只要它们确实拥有这些特质，而且我们能够以合理的价格买进，则要出错的机率可说是微乎其微(这正是我们一直不断要克服的挑战)。

Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whose value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables.

投资人必须谨记，你的投资成绩并非像奥运跳水比赛的方式评分，难度高低并不重要，你正确地投资一家简单易懂而竞争力持续的公司所得到的回报，与你辛苦地分析一家变量不断、复杂难懂的公司可以说是不相上下。

We try to price, rather than time, purchases. In our view, it is folly to forego buying shares in an outstanding business whose long-term future is predictable, because of short-term worries about an economy or a stock market that we know to be unpredictable. Why scrap an informed decision because of an uninformed guess?

对于买进股份我们注意的只是价格而非时间，我们认为因为忧虑短期不可控制的经济或是股市变量而放弃买进一家长期前景可合理的预期的好公司是一件很愚蠢的事，为什么仅是因为短期不可知的猜测就放弃一个很明显的投资决策呢?

We purchased National Indemnity in 1967, See's in 1972, Buffalo News in 1977, Nebraska Furniture Mart in 1983, and Scott Fetzer in 1986 because those are the years they became available and because we thought the prices they carried were acceptable. In each case, we pondered what the business was likely to do, not what the Dow, the Fed, or the economy might do. If we see this approach as making sense in the purchase of businesses in their entirety, why should we change tack when we are purchasing small pieces of wonderful businesses in the stock market?

我们分别在1967年买进国家产险公司、1972年买下喜斯糖果、1977年买下水牛城日报、1983年买下内布拉斯加家具店、1986年买下史考特飞兹，而我们都是趁它们难得求售时才得以买进，当然也因为它们的开价我们认为可以接受，当初在评估每个案子时，我们关心的不是道琼指数的走势、联准会的动向或是总体经济的发展，而是这些公司本身未来的前景；而如果我们觉得这样的方式适用于买下整家公司的话，那么每当我们决定要透过股市买进一些好公司部份的股权时，为什么就必须采取不一样的做法呢?

Before looking at new investments, we consider adding to old ones. If a business is attractive enough to buy once, it may well pay to repeat the process. We would love to increase our economic interest in See's or Scott Fetzer, but we haven't found a way to add to a 100% holding. In the stock market, however, an investor frequently gets the chance to increase his economic interest in businesses he knows and likes. Last year we went that direction by enlarging our holdings in Coca-Cola and American Express.

在寻找新的投资标的之前，我们选择先增加旧有投资的部位，如果一家企业曾经好到让我们愿意买进，我想再重复一次这样的程序应该也是相当不错的，若是能够我们很愿意再增加在喜斯糖果或是史考特飞兹的持股，但要增加到100%的比例实在是有困难，不过在股票市场中，投资人常常有很多的机会可以增加他有兴趣的公司持股，像是去年我们就扩大了我们在可口可乐与美国运通的持股数。

Our history with American Express goes way back and, in fact, fits the pattern of my pulling current investment decisions out of past associations. In 1951, for example, GEICO shares comprised 70% of my personal portfolio and GEICO was also the first stock I sold - I was then 20 - as a security salesman (the sale was 100 shares to my Aunt Alice who, bless her, would have bought anything I suggested). Twenty-five years later, Berkshire purchased a major stake in GEICO at the time it was threatened with insolvency. In another instance, that of the Washington Post, about half of my initial investment funds came from delivering the paper in the 1940's. Three decades later Berkshire purchased a large position in the company two years after it went public. As for Coca-Cola, my first business venture - this was in the 1930's - was buying a six-pack of Coke for 25 cents and selling each bottle for 5 cents. It took only fifty years before I finally got it: The real money was in the syrup.

我们投资美国运通的历史可以追溯到相当早的时期，而事实上也符合个人过去的经验，举个例子在1951年，当时我还是年仅二十岁的股票业务员，GEICO保险占我个人投资组合的70%，同时它也是我第一次卖掉的股票，我将100股的GEICO股份卖给我的阿姨Alice，基本上只要是我建议的她都照单全收，二十五年后，趁着该公司面临倒闭的危机，Berkshire买下GEICO一大部分的股份，另一个例子就是华盛顿邮报，1940年代，我的第一笔投资资金有一半是来自发送该报的收入，三十年后，Berkshire趁该公司上市两年后的股价低档买下一大部分的股权，至于可口可乐，可以算得上是我生平从事的第一笔商业交易，1930年当我还是个小孩子的时候，我花了25美元买了半打的可乐，然后再以每罐5美分分售出去，而直到五十年后，我才终于搞懂真正有赚头的还是那糖水。

My American Express history includes a couple of episodes: In the mid-1960's, just after the stock was battered by the company's infamous salad-oil scandal, we put about 40% of Buffett Partnership Ltd.'s capital into the stock - the largest investment the partnership had ever made. I should add that this commitment gave us over 5% ownership in Amex at a cost of $13 million. As I write this, we own just under 10%, which has cost us $1.36 billion. (Amex earned $12.5 million in 1964 and $1.4 billion in 1994.)

我个人在美国运通的投资历史包含好几段插曲，在1960年代中期，趁着该公司为色拉油丑闻所苦时，我们将巴菲特合伙企业40%的资金压在这只股票上，这是合伙企业有史以来最大的一笔投资，总计花了1,300万美元买进该公司5%的股份，时至今日，我们在美国运通的持股将近10%，但帐列成本却高达13.6亿美元，(美国运通1964年的获利为1,250万美元，1994年则增加至14亿美元)。

My history with Amex's IDS unit, which today contributes about a third of the earnings of the company, goes back even further. I first purchased stock in IDS in 1953 when it was growing rapidly and selling at a price-earnings ratio of only 3. (There was a lot of low-hanging fruit in those days.) I even produced a long report - do I ever write a short one? - on the company that I sold for $1 through an ad in the Wall Street Journal.

我对美国运通IDS部门的投资可以追溯更早，该部门目前占公司整体获利来源的三分之一，我在1953年第一次买进成长快速的IDS股份，当时的本益比只有三倍(在那个年代，结实累累的果子垂手可得)，为此我甚至还特别写了一篇长篇报告(不过印象中我好象没有写过短的)，并在华尔街日报刊登广告，以一美元对外公开销售。

Obviously American Express and IDS (recently renamed American Express Financial Advisors) are far different operations today from what they were then. Nevertheless, I find that a long-term familiarity with a company and its products is often helpful in evaluating it.

当然很显然的美国运通与IDS(最近已更名为美国运通财务顾问)今日的营运模式与过去已有很大的不同，但是我还是发现对于该公司与其提供的产品内容长久以来的熟悉度，仍然有助于我们的评估。

Mistake Du Jour新鲜出炉的错误

Mistakes occur at the time of decision. We can only make our mistake-du-jour award, however, when the foolishness of the decision become obvious. By this measure, 1994 was a vintage year with keen competition for the gold medal. Here, I would like to tell you that the mistakes I will describe originated with Charlie. But whenever I try to explain things that way, my nose begins to grow.

错误通常在做决策时就已经造成，不过我们只能将新鲜错误奖颁给那些很明显的愚蠢决策，照这种标准，1994年可算是竞争相当激烈的一年，在这里我必须特别指出以下大部分的错误都是查理造成的，不过每当我这样说时，我的鼻子就会跟着开始变长。

And the nominees are . . .获得提名的有. . .

Late in 1993 I sold 10 million shares of Cap Cities at $63; at year-end 1994, the price was $85.25. (The difference is $222.5 million for those of you who wish to avoid the pain of calculating the damage yourself.) When we purchased the stock at $17.25 in 1986, I told you that I had previously sold our Cap Cities holdings at $4.30 per share during 1978-80, and added that I was at a loss to explain my earlier behavior. Now I've become a repeat offender. Maybe it's time to get a guardian appointed.

1993年底，我将1,000万股资本城股份以每股63美元卖出，不幸的是到了1994年底，该公司股价变成85.25美元，(我可以直接告诉各位我们损失了2.225亿美元的差价，如果你心痛到不愿去算的话)；而当我们在1986年以每股17.25美元买进该公司股份时，就曾经向各位报告，在更早之前，也就是在1978年到1980年间，我就曾经以每股4.3美元卖掉该公司股份，并强调对于个人这样的行为感到心痛，没想到现在我却又明知故犯，看起来我似乎应该要找个监护人来好好监管一下。

Egregious as it is, the Cap Cities decision earns only a silver medal. Top honors go to a mistake I made five years ago that fully ripened in 1994: Our $358 million purchase of USAir preferred stock, on which the dividend was suspended in September. In the 1990 Annual Report I correctly described this deal as an "unforced error," meaning that I was neither pushed into the investment nor misled by anyone when making it. Rather, this was a case of sloppy analysis, a lapse that may have been caused by the fact that we were buying a senior security or by hubris. Whatever the reason, the mistake was large.

更不幸的是，资本城一案只能得到银牌，金牌的得主要算是我在五年前就犯下的一项错误，但直到1994年才爆发出来，那就是我们在美国航空3.58亿美元的特别股投资，去年九月，该公司宣布停止发放特别股股息，早在1990年，我就很准确地形容这项交易属于非受迫性的失误，意思是说，没有人强迫我投资，同时也没有人误导我，完全要归咎于我个人草率的分析，这项挫败导因于我们过于自大的心态，不论如何，这是一项重大的错误。

Before this purchase, I simply failed to focus on the problems that would inevitably beset a carrier whose costs were both high and extremely difficult to lower. In earlier years, these life-threatening costs posed few problems. Airlines were then protected from competition by regulation, and carriers could absorb high costs because they could pass them along by way of fares that were also high.

在做这项投资之前，我竟然没有把注意力摆在一直为航空深深所苦、居高不下的成本问题之上，在早年，高成本还不致构成重大的威胁，因为当时航空业受到法令的管制，航空业者可以将成本反映在票价之上转嫁给消费者。

When deregulation came along, it did not immediately change the picture: The capacity of low-cost carriers was so small that the high-cost lines could, in large part, maintain their existing fare structures. During this period, with the longer-term problems largely invisible but slowly metastasizing, the costs that were non-sustainable became further embedded.

在法令松绑的初期，产业界并未立即反应此状况，主要是由于低成本的业者规模尚小，所以大部分高成本的主要业者仍然勉力维持现行的票价结构，不过随着时间慢慢地发酵，在长久以来隐而未见的问题逐渐浮现的同时，旧有业者完全无竞争力的高成本结构却早已积重难返。

As the seat capacity of the low-cost operators expanded, their fares began to force the old-line, high-cost airlines to cut their own. The day of reckoning for these airlines could be delayed by infusions of capital (such as ours into USAir), but eventually a fundamental rule of economics prevailed: In an unregulated commodity business, a company must lower its costs to competitive levels or face extinction. This principle should have been obvious to your Chairman, but I missed it.

随着低成本营运业者座位容量的大幅扩增，超低的票价迫使那些高成本的老牌航空公司也不得不跟进，然而额外资金的挹注(也包含我们在美国航空的那笔投资)，延迟这些老牌航空公司发现这项问题的时机，然而终究到最后，基本的经济法则还是战胜一切，在一个没有管制的商品制式化产业，一家公司不是降低成本增加竞争力，就是被迫倒闭关门，这道理对于身为公司负责人的我，可说是再清楚也不过了，但是我竟然疏忽了。

Seth Schofield, CEO of USAir, has worked diligently to correct the company's historical cost problems but, to date, has not managed to do so. In part, this is because he has had to deal with a moving target, the result of certain major carriers having obtained labor concessions and other carriers having benefitted from "fresh-start" costs that came out of bankruptcy proceedings. (As Herb Kelleher, CEO of Southwest Airlines, has said: "Bankruptcy court for airlines has become a health spa.") Additionally, it should be no surprise to anyone that those airline employees who contractually receive above-market salaries will resist any reduction in these as long as their checks continue to clear.

美国航空的总裁-Seth Schofield一直致力于改正该公司长久以来的成本结构问题，不过到目前为止，仍然力有未殆，一部份的原因在于，他所面对的是一个不断变动的目标，因为部份航空业者幸运地取得劳资双方的协议，另一些业者则受惠于破产法令的保护，可以有一个全新出发的成本，(就像是西南航空的总裁-Herb Kelleher所说的破产法对于航空业者来说，就好象是得到了一次健康的spa)，此外，对于哪些在合约上受到保护得以获得高于市场水准薪资的劳工来说，只要他们发现自己的薪资支票仍能按时兑现，就会全力地抵制减薪的提议。

Despite this difficult situation, USAir may yet achieve the cost reductions it needs to maintain its viability long-term. But it is far from sure that will happen.

尽管面临目前的困境，美国航空还是有可能完成降低成本的任务，以维持长期继续生存的能力，不过到目前为止，还很难确定一定能够成功。

Accordingly, we wrote our USAir investment down to $89.5 million, 25 cents on the dollar at yearend 1994. This valuation reflects both a possibility that our preferred will have its value fully or largely restored and an opposite possibility that the stock will eventually become worthless. Whatever the outcome, we will heed a prime rule of investing: You don't have to make it back the way that you lost it.

因此，在1994年底，我们将美国航空帐面的投资金额调降为8,950万美元，当初一美元的投资等于仅剩下25美分的价值，这样的举动反应出将来我们的特别股有可能完全或大部分地恢复其价值，但同时也有可能到后来变得一文不值，不论最后的结果为何，我们必须谨记一项投资的基本原则，那就是你不一定要靠那些已失去的赚回来。

The accounting effects of our USAir writedown are complicated. Under GAAP accounting, insurance companies are required to carry all stocks on their balance sheets at estimated market value. Therefore, at the end of last year's third quarter, we were carrying our USAir preferred at $89.5 million, or 25% of cost. In other words, our net worth was at that time reflecting a value for USAir that was far below our $358 million cost.

本次打销美国航空投资价值的会计影响有点复杂，根据一般公认会计原则的规定，保险公司在资产负债表上必须将它们的投资以市价列示，因此截至去年第三季止，我们在美国航空投资的帐面价值是8,950万美元，大概只有原始成本3.58亿美元的25%，换句话说，在当时我们的净值就已反应了这项调整。

But in the fourth quarter, we concluded that the decline in value was, in accounting terms, "other than temporary," and that judgment required us to send the writedown of $269 million through our income statement. The amount will have no other fourth-quarter effect. That is, it will not reduce our net worth, because the diminution of value had already been reflected.

不过到了第四季，我们认为这种下跌的情况，套句会计的专有名词，并非属于暂时性的，所以我们必须将这笔向下调整的金额反应在损益表之上，然而这个动作对于本公司的净值并不会再造成任何的影响，因为早在第三季我们便已反应过
了。

Charlie and I will not stand for reelection to USAir's board at the upcoming annual meeting. Should Seth wish to consult with us, however, we will be pleased to be of any help that we can.

在即将召开的美国航空年度股东会中，查理跟我决定不再续任董事，当然要是Seth总裁觉得有任何需要我们帮忙的地方，我们愿意提供任何咨询服务。

Miscellaneous其它事项

Two CEO's who have done great things for Berkshire shareholders retired last year: Dan Burke of Capital Cities/ABC and Carl Reichardt of Wells Fargo. Dan and Carl encountered very tough industry conditions in recent years. But their skill as managers allowed the businesses they ran to emerge from these periods with record earnings, added luster, and bright prospects. Additionally, Dan and Carl prepared well for their departure and left their companies in outstanding hands. We owe them our gratitude.

去年有两位对Berkshire贡献卓著的经理人决定退休，分别是资本城/ABC的Dan Burke与富国银行的Carl Reichardt，Dan与Carl近年来在各自的产业都面临到相当大的挑战，但他们杰出的管理能力使得他们经营的事业在这段期间内仍能保有出色的盈余，并赋予公司光明与璀璨的前景，此外，对于他们的离开， Dan与Carl都已作好准备，将公司交由能干的人才接手，我们对他们报以深深的敬意。

About 95.7% of all eligible shares participated in Berkshire's 1994 shareholder-designated contributions program. Contributions made through the program were $10.4 million and 3,300 charities were recipients.

大约有95.7%的有效股权参与1994年的股东指定捐赠计划，总计约1,040万美元捐出的款项分配给3,300家慈善机构。

Every year a few shareholders miss participating in the program because they either do not have their shares registered in their own names on the prescribed record date or because they fail to get the designation form back to us within the 60-day period allowed for its return. Since we don't make exceptions when requirements aren't met, we urge that both new shareholders and old read the description of our shareholder-designated contributions program that appears on pages 50-51.

每年都有一小部份的股东由于没有将股份登记在本人的名下，或是没能在60天的期限内，将指定捐赠的表格送回给我们，而没办法参加我们的指定捐赠计画，凡是不符合规定者，都不能参加这项计画，也因此我们敦促不管是原有或新加入的股东，仔细阅读年报上有关股东捐赠计画的详细内容，

To participate in future programs, you must make sure your shares are registered in the name of the actual owner, not in the nominee name of a broker, bank or depository. Shares not so registered on August 31, 1995 will be ineligible for the 1995 program.

想要参加这项计画者，请确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在1995年8月31日之前完成登记，才有权利参与1995年的捐赠计画。

We made only one minor acquisition during 1994 - a small retail shoe chain - but our interest in finding good candidates remains as keen as ever. The criteria we employ for purchases or mergers is detailed in the appendix on page 21.

1994年我们只进行了一项小型的购并案-那是一家鞋业的连锁店，然而对于寻找好的候选对象，我们的兴致与过去一样热烈，对于买进与购并标准请参阅附录。

Last spring, we offered to merge with a large, family-controlled business on terms that included a Berkshire convertible preferred stock. Though we failed to reach an agreement, this episode made me realize that we needed to ask our shareholders to authorize preferred shares in case we wanted in the future to move quickly if a similar acquisition opportunity were to appear. Accordingly, our proxy presents a proposal that you authorize a large amount of preferred stock, which will be issuable on terms set by the Board of Directors. You can be sure that Charlie and I will not use these shares without being completely satisfied that we are receiving as much in intrinsic value as we are giving.

去年春天，我们曾经对一家大型的家族企业提出购并的提议，交易的内容包含发行Berkshire可转换的特别股，虽然后来双方未能达成协议，但这次的经验提醒我们必须先取得Berkshire股东们的同意，授权董事会发行特别股，好让我们在合适的购并机会出现时，可以做出快速的响应，因此，在今年的股东会议案中，包含了一项授权董事会在适当的时机发行特别股的提案，当然大家可以百分之百地相信，除非我们认为所得到的实质价值跟我们所付出的相当，否则查理跟我绝对不会轻易地发行这些股份。

Charlie and I hope you can come to the Annual Meeting - at a new site. Last year, we slightly overran the Orpheum Theater's seating capacity of 2,750, and therefore we will assemble at 9:30 a.m. on Monday, May 1, 1995, at the Holiday Convention Centre. The main ballroom at the Centre can handle 3,300, and if need be, we will have audio and video equipment in an adjacent room capable of handling another 1,000 people.

查理跟我很希望各位都能够来参加今年的股东会，由于去年参加的人数稍微超过了Orpheum中心2,750的座位容量，因此今年股东会我们决定于1995年5月1日，星期一早上9点30分在新的场地-Holiday会议中心召开，新场地的大厅可以容纳3,300人，若有必要，藉由视听器材的辅助，旁边还有一个可以容纳1,000人的会议室。

Last year we displayed some of Berkshire's products at the meeting, and as a result sold about 800 pounds of candy, 507 pairs of shoes, and over $12,000 of World Books and related publications. All these goods will be available again this year. Though we like to think of the meeting as a spiritual experience, we must remember that even the least secular of religions includes the ritual of the collection plate.

去年我们在会场上展示了一些Berkshire的产品，结果总计卖出了800磅的糖果、507双的鞋子以及价值超过12,000美元的世界百科全书与相关出版品，今年这些商品会再度与会，虽然我们认为这次会议的意义主要在于精神层面，但我们不要忘记，即使是最神圣的宗教典礼，也包含的奉献捐献的仪式。

Of course, what you really should be purchasing is a video tape of the 1995 Orange Bowl. Your Chairman views this classic nightly, switching to slow motion for the fourth quarter. Our cover color this year is a salute to Nebraska's football coach, Tom Osborne, and his Cornhuskers, the country's top college team. I urge you to wear Husker red to the annual meeting and promise you that at least 50% of your managerial duo will be in appropriate attire.

当然大家绝对不能错过的是1995年橘子杯的录像带，本人利用晚上的时间观看这场经典的赛事，甚至还用慢动作播放精彩的第四节，我们以今年封面的颜色表示对内布拉斯加美式足球队教练-Tom Osborne以及其所带领的全美最佳队伍-Cornhuskers队的敬意，我敦促大家一定要穿Huskers队的红色出席今年的股东会，而我也可以向各位保证Berkshire的经营双人组会有50%以上穿著正确的服色出席。

We recommend that you promptly get hotel reservations for the meeting, as we expect a large crowd. Those of you who like to be downtown (about six miles from the Centre) may wish to stay at the Radisson Redick Tower, a small (88 rooms) but nice hotel or at the much larger Red Lion Hotel a few blocks away. In the vicinity of the Centre are the Holiday Inn (403 rooms), Homewood Suites (118 rooms) and Hampton Inn (136 rooms). Another recommended spot is the Marriott, whose west Omaha location is about 100 yards from Borsheim's and a ten-minute drive from the Centre. There will be buses at the Marriott that will leave at 8:45 and 9:00 for the meeting and return after it ends.

由于预期会有相当多的人与会，我们建议大家最好先预订房间，想要住在市中心的人(距离会场约6英哩)可以选择拥有88个房间的一家小旅馆-Radisson-Redick旅馆或是旁边较大一点的Red Lion旅馆，至于会场附近则有Holiday Inn (403个房间)、Homewood Suites (118个房间)或Hampton Inn (136个房间)，另一个推荐的旅馆是位在奥玛哈西区的Marriott，离波仙珠宝店约100公尺，距离会场约10分钟的车程，届时在哪里将会有巴士接送大家往返股东会会场。

An attachment to our proxy material explains how you can obtain the card you will need for admission to the meeting. A good-sized parking area is available at the Centre, while those who stay at the Holiday Inn, Homewood Suites and Hampton Inn will be able to walk to the meeting.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，当天会场有相当大的停车场，住在Holiday Inn 、Homewood Suites或Hampton Inn的人可以直接走路过来开会。

As usual, we will have buses to take you to the Nebraska Furniture Mart and Borsheim's after the meeting and to take you from there to hotels or the airport later. I hope you make a special effort to visit the Nebraska Furniture Mart because it has opened the Mega Mart, a true retailing marvel that sells electronics, appliances, computers, CD's, cameras and audio equipment. Sales have been sensational since the opening, and you will be amazed by both the variety of products available and their display on the floor.

一如往年，会后我们备有巴士带大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，我希望大家特别能到内布拉斯加家具店参观，因为今年新开幕的超大卖场，贩卖各式家电、电子信息、CD唱片、摄影机与视听产品，自开幕以来，销售业绩惊人，到了现场之后，你绝对会对产品的多样与展示方式印象深刻。

The Mega Mart, adjacent to NFM's main store, is on our 64-acre site about two miles north of the Centre. The stores are open from 10 a.m. to 9 p.m. on Fridays, 10 a.m. to 6 p.m. on Saturdays and noon to 6 p.m. on Sundays. When you're there be sure to say hello to Mrs. B, who, at 101, will be hard at work in our Mrs. B's Warehouse. She never misses a day at the store - or, for that matter, an hour.

位于NFM主馆旁边的超级大卖场距离会场约2英哩远，营业时间平日从早上10点到下午9点，星期六从早上10点到下午6点，星期日则从中午开到下午6点，到了那里记得向高龄101岁的B太太Say hello，她每天都会到B太太仓库工作，或者应该说是每个小时。

Borsheim's normally is closed on Sunday but will be open for shareholders and their guests from noon to 6 p.m. on Sunday. This is always a special day, and we will try to have a few surprises. Usually this is the biggest sales day of the year, so for more reasons than one Charlie and I hope to see you there.

平时礼拜天不营业的波仙珠宝，在股东会当天会特别为股东与来宾开放，从中午开到下午6点，这天总是相当的特别，我们会试着让大家得到一些意外的惊喜，而通常那天也是该店全年营业额最高的一天，这也是查理跟我希望能在那里看到各位的主要原因之一。

On Saturday evening, April 29, there will be a baseball game at Rosenblatt Stadium between the Omaha Royals and the Buffalo Bisons. The Buffalo team is owned by my friends, Mindy and Bob Rich, Jr., and I'm hoping they will attend. If so, I will try to entice Bob into a one-pitch duel on the mound. Bob is a capitalist's Randy Johnson - young, strong and athletic - and not the sort of fellow you want to face early in the season. So I will need plenty of vocal support.

在前一天4月29日，星期六晚上，Rosenblatt体育馆将会有一场奥玛哈皇家队对水牛城水牛队的比赛，水牛队的老板是我的好朋友-Mindy跟Bob，我希望他们也能参加，若他们真的来了，我会引诱Bob与我在投手丘上来一场对决， Bob可以称得上是资本家的强森巨投，年轻、健壮且精力充沛，绝对是你在球季中不会想要遇到的对手，所以届时我希望大家都能到场给予我声援。

The proxy statement will include information about obtaining tickets to the game. About 1,400 shareholders attended the event last year. Opening the game that night, I had my stuff and threw a strike that the scoreboard reported at eight miles per hour. What many fans missed was that I shook off the catcher's call for my fast ball and instead delivered my change-up. This year it will be all smoke.

股东会资料将告诉大家如何取得入场的门票，去年大约有1,400位股东出席这项盛会，当晚开赛前，我投出一只时速高达8英哩的好球，只是许多球迷在当场并没有看到我不顾的捕手要求投出快速球的指示反而祭出我的上飘球，至于今年我要投出的球路至今仍然是个谜。

一九九五

Our gain in net worth during 1995 was $5.3 billion, or 45.0%. Per-share book value grew by a little less, 43.1%, because we paid stock for two acquisitions, increasing our shares outstanding by 1.3%. Over the last 31 years (that is, since present management took over) per-share book value has grown from $19 to $14,426, or at a rate of 23.6% compounded annually.

1995年本公司的净值成长了45 %约53亿美元，但由于去年以发行股份的方式并购了两家公司，使得发行在外股份增加了1.3%，所以每股净值仅成长了43.1%，而总计过去31年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的14,426美元，年复合成长率约为23.6%。

There's no reason to do handsprings over 1995's gains. This was a year in which any fool could make a bundle in the stock market. And we did. To paraphrase President Kennedy, a rising tide lifts all yachts.

对于1995年能够有这样的成果并没有什么值得好高兴的，因为在去年那样的股票市场状况，任何一个笨蛋都可以很轻易在市场上有所斩获，我们当然也不例外，套句甘乃迪总统说过的一句话，只要一波大浪来就可以撑起所有的船只。

Putting aside the financial results, there was plenty of good news at Berkshire last year: We negotiated three acquisitions of exactly the type we desire. Two of these, Helzberg's Diamond Shops and R.C. Willey Home Furnishings, are included in our 1995 financial statements, while our largest transaction, the purchase of GEICO, closed immediately after the end of the year. (I'll tell you more about all three acquisitions later in the report.)

先不管亮丽的财务数字，去年对Berkshire来说，有许多令人振奋的好消息，我们总共谈成了三件我们渴望已久的公司购并交易，其中两家-Helzberg钻石店与R.C. Willey家具店，将可列入Berkshire 1995年的财务报表之中，而另外一项更大的交易-买进GEICO剩余全部的股权，则在年度结束后不久正式敲定 (在年报后面会再详加叙述这三件并购交易)。

These new subsidiaries roughly double our revenues. Even so, the acquisitions neither materially increased our shares outstanding nor our debt. And, though these three operations employ over 11,000 people, our headquarters staff grew only from 11 to 12. (No sense going crazy.)

这些新加入的子公司将使我们的营收增加一倍，然而购并之后公司流通在外的股份或是负债并没有增加多少；另外，虽然这三家公司旗下员工人数合计高达11,000人，但集团总部的人员却仅由11人增加为12人，(我们还没有到走火入魔的地步)。

Charlie Munger, Berkshire's Vice Chairman and my partner, and I want to build a collection of companies - both wholly- and partly-owned - that have excellent economic characteristics and that are run by outstanding managers. Our favorite acquisition is the negotiated transaction that allows us to purchase 100% of such a business at a fair price. But we are almost as happy when the stock market offers us the chance to buy a modest percentage of an outstanding business at a pro-rata price well below what it would take to buy 100%. This double-barrelled approach - purchases of entire businesses through negotiation or purchases of part-interests through the stock market - gives us an important advantage over capital-allocators who stick to a single course. Woody Allen once explained why eclecticism works: "The real advantage of being bisexual is that it doubles your chances for a date on Saturday night."

Berkshire的副主席，同时也是我的主要合伙人-查理．曼格以及我本人一直致力于建立起一个拥有绝佳竞争优势，且由杰出经理人领导的企业所组成的集团，其中一部份是100%持有，一部份则是持有部份股权，当然我们最希望的方式还是透过协商以公平合理的价格取得全部的股权，不过如果我们在股票市场中有机会能够找到以低于购并整家公司所需的平均价格，取得一家好公司相当程度的股份的话，我们也很乐于尝试，事实上这种双管齐下的做法，(也就是经由协议买下整家公司或是透过股市买进部份股权)，使得我们比起其它坚持单一做法的资金分配者来说，拥有绝佳的优势。伍迪．艾伦曾经用以下的方式来形容为什么会有折衷派出现，他说：双性恋者最大的好处就是可以让他们在周末时，比一般人整整多出一倍的约会机会。

Over the years, we've been Woody-like in our thinking, attempting to increase our marketable investments in wonderful businesses, while simultaneously trying to buy similar businesses in their entirety. The following table illustrates our progress on both fronts. In the tabulation, we show the marketable securities owned per share of Berkshire at ten-year intervals. A second column lists our per-share operating earnings (before taxes and purchase-price adjustments but after interest and corporate overhead) from all other activities. In other words, the second column shows what we earned excluding the dividends, interest and capital gains that we realized from investments. Purchase-price accounting adjustments are ignored for reasons we have explained at length in previous reports and which, as an act of mercy, we won't repeat. (We'll be glad to send masochists the earlier explanations, however.)

多年来，我们的看法一直与伍迪一致，在努力增加我们非凡企业的投资部位的同时，也试着买下一些同样优秀企业的全部所有权，下表充分显示了我们在这两方面的进展，表中列示出在十年间Berkshire每股所拥有的股票价值以及每股在扣除利息与营业费用之后来自其它活动的营业利益(但未扣除所得税与购买法会计调整数)，换言之，后者所代表的是在扣除我们从股票投资所得的股利、利息收入与资本利得之后的盈余收益，至于购买法会计调整数不列入的原因，在以前的年报中，我们已经花了相当的篇幅解释过了，在这个地方我们就不再重复了，当然如果你有被虐待的倾向的话，我们也不介意再复述一次。

Pre-tax Earnings Per Share Marketable Securities Excluding All Income from Year Per Share Investments

1965
 
1975
 
1985
 
1995
 

$ 4
 
159
 
2,443
 
22,088
 

$ 4.08
 
(6.48)
 
18.86
 
258.20
 

Yearly Growth Rate: 1965-95 33.4% 14.7%

These results have not sprung from some master plan that we concocted in 1965. In a general way, we knew then what we hoped to accomplish but had no idea what specific opportunities might make it possible. Today we remain similarly unstructured: Over time, we expect to improve the figures in both columns but have no road map to tell us how that will come about.

当初在1965年时，我们并未刻意规划什么伟大的计画，来达成以上的成果，我们只知道我们应该朝这个方向做，但却不晓得到底会有什么样的机会会出现，时至今日，我们同样是漫无目标，只能够预期这两栏的数字都能够持续地精进，至于应该要如何达成，并没有一个明确的概念。

We proceed with two advantages: First, our operating managers are outstanding and, in most cases, have an unusually strong attachment to Berkshire. Second, Charlie and I have had considerable experience in allocating capital and try to go at that job rationally and objectively. The giant disadvantage we face is size: In the early years, we needed only good ideas, but now we need good big ideas. Unfortunately, the difficulty of finding these grows in direct proportion to our financial success, a problem that increasingly erodes our strengths.

我们拥有两项优势，首先，我们旗下事业的经理人都相当优秀，且大部分的经理人都与Berkshire保持紧密的关系，第二，查理跟我本人在资金分配方面拥有相当丰富的经验，可以理性客观地执行这项工作，我们所面临最大的劣势是规模太大，在早年，我们只需要好的投资方案，但是现在我们需要的却是又"大"又好的投资方案，然而不幸的是，要找到能够与Berkshire发展速度相匹配的公司的难度日益升高，这个问题持续地侵蚀我们的竞争优势。

I will have more to say about Berkshire's prospects later in this report, when I discuss our proposed recapitalization.

在报告的后段讨论有关公司所提的股权重组提案，我会再详加说明Berkshire未来的前景。

Acquisitions并购活动

It may seem strange that we exult over a year in which we made three acquisitions, given that we have regularly used these pages to question the acquisition activities of most managers. Rest assured, Charlie and I haven't lost our skepticism: We believe most deals do damage to the shareholders of the acquiring company. Too often, the words from HMS Pinafore apply: "Things are seldom what they seem, skim milk masquerades as cream." Specifically, sellers and their representatives invariably present financial projections having more entertainment value than educational value. In the production of rosy scenarios, Wall Street can hold its own against Washington.

以往到了这里，通常是我们质疑其它公司从事的并购活动的时间，然而大家对于我们在去年突然发神经地进行了三件并购案可能会感到相当奇怪，不过大家倒是可以放心，查理跟我本人从来就没有失去我们原来保持的怀疑态度，我们坚信大部分的并购活动会大大损及发起并购公司背后所代表的股东利益，HMS 围裙说得没有错︰事情通常不是他们外表所看到得的那样，去脂牛奶会被冒充成奶油，犹有甚者，卖方与其代表人总是会提出一些娱乐性质高于教育性质的财务预估数字，在规划出美丽的大饼这招方面，华尔街的能力可是不会输给华府的。

In any case, why potential buyers even look at projections prepared by sellers baffles me. Charlie and I never give them a glance, but instead keep in mind the story of the man with an ailing horse. Visiting the vet, he said: "Can you help me? Sometimes my horse walks just fine and sometimes he limps." The vet's reply was pointed: "No problem - when he's walking fine, sell him." In the world of mergers and acquisitions, that horse would be peddled as Secretariat.

我实在不了解为什么有些可能的买主会相信卖方提出的预估数字，查理跟我连看都懒得看他们一眼，我们一再谨记一位拥有跛脚马主人的故事，他牵着病马去给兽医看说到︰「你可以帮帮我吗? 我实在是搞不懂为什么这匹马的表现时好时坏。」，兽医的回答正中要害，「没问题，趁它表现正常的时候，赶快把它卖掉」，在并购的世界中，这样的跛脚马往往被装饰成圣物到处行骗。

At Berkshire, we have all the difficulties in perceiving the future that other acquisition-minded companies do. Like they also, we face the inherent problem that the seller of a business practically always knows far more about it than the buyer and also picks the time of sale - a time when the business is likely to be walking "just fine."

在Berkshire，我们无从了解这些有意从事并购的公司到底怎么会做出这样的举动，与他们一样，我们也面临一个先天上的问题，那就是卖方永远比买方了解内情，所以很自然地，他们一定会挑选卖出的最佳时机，也就是当跛脚马表现的都很正常的时候。

Even so, we do have a few advantages, perhaps the greatest being that we don't have a strategic plan. Thus we feel no need to proceed in an ordained direction (a course leading almost invariably to silly purchase prices) but can instead simply decide what makes sense for our owners. In doing that, we always mentally compare any move we are contemplating with dozens of other opportunities open to us, including the purchase of small pieces of the best businesses in the world via the stock market. Our practice of making this comparison - acquisitions against passive investments - is a discipline that managers focused simply on expansion seldom use.

尽管如此，我们还是拥有几项优势，其中最有利的大概就是我们并没有一套策略计画，所以我们就没有必要依照固定的模式(一种几乎注定会以离谱的价钱成交的模式)，而是完全以股东本身的利益为优先，在这样的心态之下，我们随时可以客观地将购并案与其它潜在的几十种投资机会做比较，其中也包含经由股票市场买进部份股权，我们习惯性地做比较，购并vs被动的投资，是一昧地想要扩张经营版图的经理人绝对做不出来的。

Talking to Time Magazine a few years back, Peter Drucker got to the heart of things: "I will tell you a secret: Dealmaking beats working. Dealmaking is exciting and fun, and working is grubby. Running anything is primarily an enormous amount of grubby detail work . . . dealmaking is romantic, sexy. That's why you have deals that make no sense."

管理大师彼得．杜拉克几年前在对时代杂志的一次专访中，切中要点的提到︰让我告诉你一个秘密，促成交易比辛勤工作好，促成交易刺激有趣，而工作却尽是一些骯脏污龊的事，经营任何事业无可避免的是一大堆繁杂的工作，而促成交易相对的就很性感浪漫，而这也是为什么通常交易的发生都没什么道理可循。

In making acquisitions, we have a further advantage: As payment, we can offer sellers a stock backed by an extraordinary collection of outstanding businesses. An individual or a family wishing to dispose of a single fine business, but also wishing to defer personal taxes indefinitely, is apt to find Berkshire stock a particularly comfortable holding. I believe, in fact, that this calculus played an important part in the two acquisitions for which we paid shares in 1995.

在从事并购案时，我们还有一项优势，那就是我们可以提供给卖方，一种背后由众多优秀企业所组成的股份当作对价，当一家公司的老板或家族想要处分绩优的家族产业，同时希望相关的税负能够继续递延下去时，应该会发现Berkshire的股票是一种相当好的选择，事实上，我相信这样的盘算在我们1985年促成以股份交换的两项购并案中扮演极关键的角色。

Beyond that, sellers sometimes care about placing their companies in a corporate home that will both endure and provide pleasant, productive working conditions for their managers. Here again, Berkshire offers something special. Our managers operate with extraordinary autonomy. Additionally, our ownership structure enables sellers to know that when I say we are buying to keep, the promise means something. For our part, we like dealing with owners who care what happens to their companies and people. A buyer is likely to find fewer unpleasant surprises dealing with that type of seller than with one simply auctioning off his business.

此外，有些卖方也会关心他们的公司是否能够找到一个稳定可靠的美满归宿，可以让其旗下员工有一个良好的工作环境，而就这点而言，Berkshire绝对与众不同，我们旗下事业的经理人拥有绝对的自主权，此外我们的股权结构使得卖方可以相信当我们在购并时，所做出的每一个承诺将会被信守，对我们而言，我们也希望能与真正关心购并后其公司与员工会有怎样结局的老板打交道，就我们的经验而言，这类的卖主通常会较那些一心要把所拥有的公司拍卖掉的人，要让我们少发现许多令人不愉快的意外。

In addition to the foregoing being an explanation of our acquisition style, it is, of course, a not-so-subtle sales pitch. If you own or represent a business earning $25 million or more before tax, and it fits the criteria listed on page 23, just give me a call. Our discussion will be confidential. And if you aren't interested now, file our proposition in the back of your mind: We are never going to lose our appetite for buying companies with good economics and excellent management.

以上算是对于我们购并模式的一些解释，当然在这里我也要打一点小广告，如果你拥有或代表一家每年税前获利超过2,500万美元的公司，同时也符合我们表列的各项标准的话，记得打个电话给我，我们谈话的内容将会完全保密，当然若是你现在没有兴趣，也请你把我们的这些条件记在脑海，因为我们从来就不会放弃买下拥有优良的竞争优势与杰出经理人的公司的意愿。

Concluding this little dissertation on acquisitions, I can't resist repeating a tale told me last year by a corporate executive. The business he grew up in was a fine one, with a long-time record of leadership in its industry. Its main product, however, was distressingly glamorless. So several decades ago, the company hired a management consultant who - naturally - advised diversification, the then-current fad. ("Focus" was not yet in style.) Before long, the company acquired a number of businesses, each after the consulting firm had gone through a long - and expensive - acquisition study. And the outcome? Said the executive sadly, "When we started, we were getting 100% of our earnings from the original business. After ten years, we were getting 150%."

为了将以上购并论点做一个总结，我忍不住再重复一遍，去年一位企业经理人告诉我的一则小故事︰他提到他原来经营一家由他一手扶持的好公司，在其所处的产业拥有长期的领导地位，只是其前景显得有些黯淡，所以几十年前，这家公司特别聘请了一家管理顾问公司，很自然的管理顾问建议他们应该要多角化经营，这在当时还是股风潮(专注本业的论调还未成形)，不久之后，这家公司在经过顾问公司一连串冗长且收费昂贵的购并调查之后，陆续买进了好几家公司，你一定会想要问，最后结果如何? 这位主管很难过的说，一开始我们的盈余百分之百是来自于我们原来的本业，但是过了十年后，这个比例变成百分之一百五十!

Helzberg's Diamond ShopsHelzberg 钻石店

A few years back, management consultants popularized a technique called "management by walking around" (MBWA). At Berkshire, we've instituted ABWA (acquisitions by walking around).

几年前，管理顾问专家有一句相当流行的术语-走动式管理，在Berkshire我们运用的则是走动式并购。

In May 1994, a week or so after the Annual Meeting, I was crossing the street at 58th and Fifth Avenue in New York, when a woman called out my name. I listened as she told me she'd been to, and had enjoyed, the Annual Meeting. A few seconds later, a man who'd heard the woman stop me did so as well. He turned out to be Barnett Helzberg, Jr., who owned four shares of Berkshire and had also been at our meeting.

1994年五月，在年度股东会过后不久，正当我在纽约第五大道与58街交叉路口准备过马路时，突然有一位妇人叫我的名字，我停下驻足，她提到自己很喜欢参加Berkshire的股东会，过了一会儿，旁边一位先生听到这位妇人的谈话，也如法炮制的把我给拦下来，没想到他竟是Barnett Helzberg二世，他持有Berkshire四股的股份，同时也曾参加过我们的股东会。

In our few minutes of conversation, Barnett said he had a business we might be interested in. When people say that, it usually turns out they have a lemonade stand - with potential, of course, to quickly grow into the next Microsoft. So I simply asked Barnett to send me particulars. That, I thought to myself. will be the end of that.

在我们短暂的交谈之中，Barnett表示他拥有一家我们可能会有兴趣的公司，普通当人们这样说的时候，一般都是指一些茶水摊，当然搞不好，也有可能会变成微软第二，所以我只是简单地请Barnett将他的资料送给我，然后我想一切将就此结束。

Not long after, Barnett sent me the financial statements of Helzberg's Diamond Shops. The company had been started by his grandfather in 1915 from a single store in Kansas City and had developed by the time we met into a group with 134 stores in 23 states. Sales had grown from $10 million in 1974 to $53 million in 1984 and $282 million in 1994. We weren't talking lemonade stands.

过了不久，Barnett果然把Helzberg钻石店的财务报表送给我，这家公司是在1915年由其祖父创立，当初只不过是在堪萨斯市的一家单店，然而直到我们碰面时，该公司已发展成在全美23个州拥有134家分店的集团，营业额也从1974年的1,000万美元成长到1984年的5,300万美元，乃至于1994年的二亿8,200万美元，这显然不是一间茶水摊。

Barnett, then 60, loved the business but also wanted to feel free of it. In 1988, as a step in that direction, he had brought in Jeff Comment, formerly President of Wanamaker's, to help him run things. The hiring of Jeff turned out to be a homerun, but Barnett still found that he couldn't shake a feeling of ultimate responsibility. Additionally, he owned a valuable asset that was subject to the vagaries of a single, very competitive industry, and he thought it prudent to diversify his family's holdings.

Barnett现年六十岁，很热爱这项事业，但也很希望能够减轻负担，在1988年他跨出第一步，找到Wanamaker前任总裁-Jeff Comment来协助他经营事业，这个决定事后证明相当正确，但Barnett还是觉得他的压力相当沉重，而且，他虽然拥有价值不菲的事业，但却面临单一且竞争相当激烈的产业，因此他认为有必要要分散家族持股的风险。

Berkshire was made to order for him. It took us awhile to get together on price, but there was never any question in my mind that, first, Helzberg's was the kind of business that we wanted to own and, second, Jeff was our kind of manager. In fact, we would not have bought the business if Jeff had not been there to run it. Buying a retailer without good management is like buying the Eiffel Tower without an elevator.

Berkshire被要求提出一个报价，我们花了一段时间才在价格上达成协议，然而此外从头到尾我都没有太多的疑问，首先，Helzberg是那种我们想要拥有的事业，第二Jeff，是属于我们这喜欢的经理人类型，事实上，要是这项事业不是由Jeff所经营的话，我们可能就不会考虑买下它，买下一家没有优良管理的零售业，就好象是买下一座没有电梯的艾菲尔铁塔。

We completed the Helzberg purchase in 1995 by means of a tax-free exchange of stock, the only kind of transaction that interested Barnett. Though he was certainly under no obligation to do so, Barnett shared a meaningful part of his proceeds from the sale with a large number of his associates. When someone behaves that generously, you know you are going to be treated right as a buyer.

我们在1995年完成对Helzberg的并购案，以免税的股权交换方式进行，这也是Barnett唯一愿意接受的方式，虽然没有法令规定，但是他还是将并购后的所得与其众多的员工一起分享，就这点而言，你可以确信对员工如此慷慨的人，相信也会公平合理地对待新加入的买主。

The average Helzberg's store has annual sales of about $2 million, far more than competitors operating similarly-sized stores achieve. This superior per-store productivity is the key to Helzberg's excellent profits. If the company continues its first-rate performance - and we believe it will - it could grow rather quickly to several times its present size.

Helzberg单店年平均营业额大约是二百万美元，这个数字远比其它相同规模的竞争对手多得多，这种高生产力正是Helzberg拥有高获利的关键因素，如果这家公司能够继续这种一流的表现，(我们相信绝对没问题)，则在不久的将来它将可以发展为数倍于现在的规模。

Helzberg's, it should be added, is an entirely different sort of operation from Borsheim's, our Omaha jewelry business, and the two companies will operate independently of each other. Borsheim's had an excellent year in 1995, with sales up 11.7%. Susan Jacques, its 36-year-old CEO, had an even better year, giving birth to her second son at the start of the Christmas season. Susan has proved to be a terrific leader in the two years since her promotion.

有一点必须强调的是，Helzberg经营的形态与我们原有在奥玛哈的珠宝事业-波仙珠宝店完全不同，两家公司仍然会维持各自独立的营运，波仙1995年的业绩相当理想，营收较去年又增加了11.7%，该公司总裁-Susan Jacques的表现更是优异，去年圣诞节前夕她产下第二个儿子，在接任二年后，Susan证明自己是位相当杰出的领导者。

R.C. Willey Home FurnishingsR.C. Willey家具店

It was Nebraska Furniture Mart's Irv Blumkin who did the walking around in the case of R.C. Willey, long the leading home furnishings business in Utah. Over the years, Irv had told me about the strengths of that company. And he had also told Bill Child, CEO of R.C. Willey, how pleased the Blumkin family had been with its Berkshire relationship. So in early 1995, Bill mentioned to Irv that for estate tax and diversification reasons, he and the other owners of R.C. Willey might be interested in selling.

关于R.C. Willey家具店-这家犹他州最大家具店的并购案，这次换做是内布拉斯加家具店的Irv Blumkin做走动式并购，多年以来，Irv一直向我提及这家公司所拥有的竞争力，而他也不断地告诉R.C. Willey总裁-Bill Child，Blumkin家族与Berkshire的合作关系是多么地令人愉快，终于到了1995年，Bill向Irv提及基于资产税负与分散风险考量，他自己本身与R.C. Willey其它股东有意出售该公司股份。

From that point forward, things could not have been simpler. Bill sent me some figures, and I wrote him a letter indicating my idea of value. We quickly agreed on a number, and found our personal chemistry to be perfect. By mid-year, the merger was completed.

从那一刻开始，事情就变得再简单也不过了，Bill给了我一些数字，而我则回信表达我对价值的看法，我们很快地就达成价格上的协议，而后续所产生的化学变化可说是再完美不过了，一直到年中，整个合并案大功告成。

R.C. Willey is an amazing story. Bill took over the business from his father-in-law in 1954 when sales were about $250,000. From this tiny base, Bill employed Mae West's philosophy: "It's not what you've got - it's what you do with what you've got." Aided by his brother, Sheldon, Bill has built the company to its 1995 sales volume of $257 million, and it now accounts for over 50% of the furniture business in Utah. Like Nebraska Furniture Mart, R.C. Willey sells appliances, electronics, computers and carpets in addition to furniture. Both companies have about the same sales volume, but NFM gets all of its business from one complex in Omaha, whereas R.C. Willey will open its sixth major store in the next few months.

R.C. Willey有一段相当精彩的故事，1954年当Bill从其岳父手中接下这项事业时，该公司的年营业额只有25万美元，从那个基础开始，Bill运用Mae West的哲学，重点不在于你得到的是什么，重点在于你将得到的如何运用，在其兄弟Sheldon的协助之下，Bill将公司的营业额一举提升到1995年的2亿5,700万美元，目前拥有犹他州超过50%以上的市场占有率，就像是NFM一样，除了家具以外，R.C. Willey也贩卖小家电、电子信息与地毯等商品，两家公司的营业额相当，只是NFM的营收全部来自在奥玛哈惟一的一家总店，而R.C. Willey却即将在几个月后成立第六家分店。

Retailing is a tough business. During my investment career, I have watched a large number of retailers enjoy terrific growth and superb returns on equity for a period, and then suddenly nosedive, often all the way into bankruptcy. This shooting-star phenomenon is far more common in retailing than it is in manufacturing or service businesses. In part, this is because a retailer must stay smart, day after day. Your competitor is always copying and then topping whatever you do. Shoppers are meanwhile beckoned in every conceivable way to try a stream of new merchants. In retailing, to coast is to fail.

零售业的经营相当不易，在我个人的投资生涯中，我看过许多零售业曾经拥有极高的成长率与股东权益报酬率，但是到最后，突然间表现急速下滑，很多甚至被迫以倒闭关门收场，比起一般制造业或服务业，这种剎那间的永恒在零售业履见不鲜，部份的原因是这些零售业者必须时时保持聪明警戒，因为你的竞争对手随时准备复制你的做法，然后超越你，同时消费者绝对不会吝于给予新加入业者尝试的机会，在零售业一但业绩下滑，注定就会失败。

In contrast to this have-to-be-smart-every-day business, there is what I call the have-to-be-smart-once business. For example, if you were smart enough to buy a network TV station very early in the game, you could put in a shiftless and backward nephew to run things, and the business would still do well for decades. You'd do far better, of course, if you put in Tom Murphy, but you could stay comfortably in the black without him. For a retailer, hiring that nephew would be an express ticket to bankruptcy.

相对于这种必须时时保持警戒的产业，还有一种我称之为只要聪明一时的产业，举个例子来说，如果你在很早以前就懂得睿智地买下一家地方电视台，你甚至可以把它交给懒惰又差劲的亲人来经营，而这项事业却仍然可以好好地经营个几十年，当然若是你懂得将Tom Murphy摆在正确的位置之上，你所获得的将会更惊人，但是对零售业来说，要是用人不当的话，就等于买了一张准备倒闭关门的门票。

The two retailing businesses we purchased this year are blessed with terrific managers who love to compete and have done so successfully for decades. Like the CEOs of our other operating units, they will operate autonomously: We want them to feel that the businesses they run are theirs. This means no second-guessing by Charlie and me. We avoid the attitude of the alumnus whose message to the football coach is "I'm 100% with you - win or tie." Our basic goal as an owner is to behave with our managers as we like our owners to behave with us.

不过今年我们买下的这两家零售业，却很幸运的拥有喜欢面对竞争挑战的经理人，同时过去几十年来也表现的相当优异，就像是我们旗下其它事业的经理人，他们将可以独立自主地经营事业，我们希望他们觉得就好象是在经营自己的事业一样，没错就是这样，查理跟我绝没有其它的意思，我们尽量避免像校友会常常对足球校队教练所说的那样︰不论赢或是打平，我们永远与你站在同一阵线，身为所有权人，我们的基本原则是期望我们自己的行为与我们要求旗下的经理人的表现一样。

As we add more operations, I'm sometimes asked how many people I can handle reporting to me. My answer to that is simple: If I have one person reporting to me and he is a lemon, that's one too many, and if I have managers like those we now have, the number can be almost unlimited. We are lucky to have Bill and Sheldon associated with us, and we hope that we can acquire other businesses that bring with them managers of similar caliber.

而在我们又新增旗下事业的同时，我被问及我一个人到底可以应付多少个经理人同时向我报告，我的回答相当简单，要是我只管一个经理人，而他是一颗酸柠檬，那么管一个人对我来说，实在是太多了，相反的，要是我所面对的是像我们现在所拥有的经理人的话，那么这个数目将没有任何限制，很幸运的是，这回新加入的是Bill跟Sheldon，而我们也很希望在不久的未来，还能有更多相同水准的经理人加入我们的行列。

GEICO Corporation盖可保险营运

Right after yearend, we completed the purchase of 100% of GEICO, the seventh largest auto insurer in the United States, with about 3.7 million cars insured. I've had a 45-year association with GEICO, and though the story has been told before, it's worth a short recap here.

就在去年底，我们完成买进盖可保险100%股权的动作，盖可是全美第七大的汽车保险公司，约有370万辆汽车加保，我个人与盖可保险的关系长达45年以上，虽然这段故事已经说过很多遍，我认为还是有必要在这里稍微复述一次。

I attended Columbia University's business school in 1950-51, not because I cared about the degree it offered, but because I wanted to study under Ben Graham, then teaching there. The time I spent in Ben's classes was a personal high, and quickly induced me to learn all I could about my hero. I turned first to Who's Who in America, finding there, among other things, that Ben was Chairman of Government Employees Insurance Company, to me an unknown company in an unfamiliar industry.

我是在1950年-1951年间就读于哥伦比亚商学院，当时的目的倒不在于取得学位，重点还在于我可以受教于当时在该校任教的班哲明．葛拉汉门下，上葛拉汉的课实在是一种享受，很快的就让我从偶像哪里学习到许多东西，有一回我翻开全美名人录，发现我的恩师葛拉汉是公务人员保险公司-GEICO的董事会主席，对于当时的我而言，那完全是一家陌生产业的不知名公司。

A librarian next referred me to Best's Fire and Casualty insurance manual, where I learned that GEICO was based in Washington, DC. So on a Saturday in January, 1951, I took the train to Washington and headed for GEICO's downtown headquarters. To my dismay, the building was closed, but I pounded on the door until a custodian appeared. I asked this puzzled fellow if there was anyone in the office I could talk to, and he said he'd seen one man working on the sixth floor.

一位好心的图书馆员，介绍我看看全美最佳火险与意外险公司手册，我发现GEICO的总部位于华盛顿特区，所以在1951年一月的某个星期六，我搭乘火车前往位于华盛顿的GEICO总部，一到当地，令人失望的是总部大门深锁，朝着大门敲了半天，终于有位守卫前来应门，我向这位一脸疑惑的警卫先生问到，公司是否有人可以跟我谈一谈，他老兄说六楼有人在加班，你可以去找他试一试。

And thus I met Lorimer Davidson, Assistant to the President, who was later to become CEO. Though my only credentials were that I was a student of Graham's, "Davy" graciously spent four hours or so showering me with both kindness and instruction. No one has ever received a better half-day course in how the insurance industry functions nor in the factors that enable one company to excel over others. As Davy made clear, GEICO's method of selling - direct marketing - gave it an enormous cost advantage over competitors that sold through agents, a form of distribution so ingrained in the business of these insurers that it was impossible for them to give it up. After my session with Davy, I was more excited about GEICO than I have ever been about a stock.

就这样我遇到了当时还是副总裁的Lorimer Davidson，后来他成为GEICO的总裁，虽然我唯一的经历背景只是葛拉汉的一名学生，大卫还是很好心的花了四个小时左右的时间，好好地给我上了一课，我想大概没有人能够像我这样，可以幸运地接受如何经营保险业的半天课程，大卫很坦白地告诉我，GEICO的竞争优势在于-直接行销，这使得该公司相较于一般竞争同业必须透过传统的业务仲介的经营方式所负担的成本要低得许多，后者受限传统无法摆脱行之有年的行销网络，而在上过大卫的课之后，GEICO也成为我有生以来觉得最心动的一支股票。

When I finished at Columbia some months later and returned to Omaha to sell securities, I naturally focused almost exclusively on GEICO. My first sales call - on my Aunt Alice, who always supported me 100% - was successful. But I was then a skinny, unpolished 20-year-old who looked about 17, and my pitch usually failed. Undaunted, I wrote a short report late in 1951 about GEICO for "The Security I Like Best" column in The Commercial and Financial Chronicle, a leading financial publication of the time. More important, I bought stock for my own account.

在我从哥伦比亚大学毕业的几个月后，我回到奥玛哈担任股票业务员，自然而然的，我把重心全部摆在GEICO这只股票之上，我作成的第一笔生意就是把它介绍给总是最支持我的阿姨Alice，不过当时的我只是个20岁初出茅庐的小伙子，所以我的话总是没有人愿意相信，即便如此，我还是在1951年写了一篇最佳推荐个股-GEICO并刊登在当时最大的金融时报专栏之上，当然最重要的是我自己也买了这家公司的股票。

You may think this odd, but I have kept copies of every tax return I filed, starting with the return for 1944. Checking back, I find that I purchased GEICO shares on four occasions during 1951, the last purchase being made on September 26. This pattern of persistence suggests to me that my tendency toward self-intoxication was developed early. I probably came back on that September day from unsuccessfully trying to sell some prospect and decided - despite my already having more than 50% of my net worth in GEICO - to load up further. In any event, I accumulated 350 shares of GEICO during the year, at a cost of $10,282. At yearend, this holding was worth $13,125, more than 65% of my net worth.

你可能会觉得很奇怪，不过打从1944年开始报税到现在，我都保留每年个人报税的资料，在将这些资料拿出来比对之后，我发现在1951年我总共分四次买进GEICO股份，最后一次是在9月26日，这样的做法让我觉得自己很早就有自我沉醉的倾向，印象中我那时是在向别人推销这批股票不成之后，决定自己吃下这批股票，尽管在当时我已将个人50%以上的身家全都押在这支股票之上，而在加码之后，我总共持有350股的GEICO股份，成本为10,282美元，到了年底，这些股票的市值成为13,125美元，超过个人净值的65%。

You can see why GEICO was my first business love. Furthermore, just to complete this stroll down memory lane, I should add that I earned most of the funds I used to buy GEICO shares by delivering The Washington Post, the chief product of a company that much later made it possible for Berkshire to turn $10 million into $500 million.

所以大家可以看出GEICO公司可以说是我投资生涯的初恋，还有一点也相当具有纪念价值的，我买下GEICO大部分的资金是来自于派送华盛顿邮报的收入，而后来经由Berkshire我靠着华盛顿邮报，将1,000万美元变成五亿美元。

Alas, I sold my entire GEICO position in 1952 for $15,259, primarily to switch into Western Insurance Securities. This act of infidelity can partially be excused by the fact that Western was selling for slightly more than one times its current earnings, a p/e ratio that for some reason caught my eye. But in the next 20 years, the GEICO stock I sold grew in value to about $1.3 million, which taught me a lesson about the inadvisability of selling a stake in an identifiably-wonderful company.

可惜的是，在1952年我以15,259美元的价钱将全部的GEICO股份出清，然后将所得资金投入到西方保险证券公司之上，这项变心的举动，一部份的原因是因为西方保险证券当时的股价相当吸引人，本益比只有一倍左右，然而在往后的二十年间，当时被我卖的的GEICO股份的价值却成长到1,300万美元，这样的结局让我体会到绝对不能卖掉一家明显的好公司的原则。

In the early 1970's, after Davy retired, the executives running GEICO made some serious errors in estimating their claims costs, a mistake that led the company to underprice its policies - and that almost caused it to go bankrupt. The company was saved only because Jack Byrne came in as CEO in 1976 and took drastic remedial measures.

1970年代初期，在大卫退休后不久，继任的管理阶层犯了一连串严重的错误，他们低估了保险理赔的成本，使得公司对外销售保单的订价过低，此举导致公司几乎面临倒闭的命运，所幸后来由Jack Byrne在1976年接掌公司，并采取紧急的补救措施后，才使得公司幸免于难。

Because I believed both in Jack and in GEICO's fundamental competitive strength, Berkshire purchased a large interest in the company during the second half of 1976, and also made smaller purchases later. By yearend 1980, we had put $45.7 million into GEICO and owned 33.3% of its shares. During the next 15 years, we did not make further purchases. Our interest in the company, nonetheless, grew to about 50% because it was a big repurchaser of its own shares.

由于我相信Jack以及该公司原本拥有的竞争优势，Berkshire在1976年下半年买进大量的GEICO股份，之后又小幅加码，到了1980年底，我们总共投入4,570万美元取得该公司33.3%的股权，然而在往后的15年内，我们并没有再增加持股，不过由于该公司不断地购回自家公司的股份，使得我们在GEICO的持股比例逐渐增加到50%左右。

Then, in 1995, we agreed to pay $2.3 billion for the half of the company we didn't own. That is a steep price. But it gives us full ownership of a growing enterprise whose business remains exceptional for precisely the same reasons that prevailed in 1951. In addition, GEICO has two extraordinary managers: Tony Nicely, who runs the insurance side of the operation, and Lou Simpson, who runs investments.

然后到了1995年，我们同意以23亿美元买下另一半原来不属于我们的股份，这是实在是天价，不过它让我们可以百分之百拥有一家深具成长潜力的企业，且其竞争优势从1951年到现在一直都维持不变，更重要的是，GEICO拥有两位相当优秀的经理人，一位是专门负责保险部门营运的Tony Nicely，一位是专门负责投资部门营运的Lou Simpson。

Tony, 52, has been with GEICO for 34 years. There's no one I would rather have managing GEICO's insurance operation. He has brains, energy, integrity and focus. If we're lucky, he'll stay another 34 years.

52岁的Tony在GEICO任职已有34年了，兼具智能、精力、品格与专注力，他是我心目中经营GEICO保险部门的不二人选，如果我们够幸运的话，Tony应该还能再为我们经营GEICO 34年以上。

Lou runs investments just as ably. Between 1980 and 1995, the equities under Lou's management returned an average of 22.8% annually vs. 15.7% for the S&P. Lou takes the same conservative, concentrated approach to investments that we do at Berkshire, and it is an enormous plus for us to have him on board. One point that goes beyond Lou's GEICO work: His presence on the scene assures us that Berkshire would have an extraordinary professional immediately available to handle its investments if something were to happen to Charlie and me.

另一方面，Lou在管理投资同样出色，从1980年到1995年的这段期间，GEICO的投资在Lou的管理之下，年度平均投资报酬率高达22.8%，同期间S&P只有15.7%，Lou在GEICO所采取谨慎保守、专注集中的投资方式与Berkshire一致，有他在，对Berkshire来说绝对有相当大的帮助，而他的存在同时也使得Berkshire可以确保查理跟我本人万一要是有任何突发状况时，能够有一位杰出的专业人士可以立即接手我们的工作。

GEICO, of course, must continue both to attract good policyholders and keep them happy. It must also reserve and price properly. But the ultimate key to the company's success is its rock-bottom operating costs, which virtually no competitor can match. In 1995, moreover, Tony and his management team pushed underwriting and loss adjustment expenses down further to 23.6% of premiums, nearly one percentage point below 1994's ratio. In business, I look for economic castles protected by unbreachable "moats." Thanks to Tony and his management team, GEICO's moat widened in 1995.

GEICO如同过往一般，持续地吸引优良的保户前来，而GEICO的服务也确实令他们满意，当然订价与提列准备必须适当，但是该公司能够成功的最重要关键，还在于超低的成本结构，这实在是其它竞争同业远远比不上的，1995年在Tony与其领导的经营阶层的努力之下，该公司的承保损失与营业费用比率进一步压低到保费收入的23.6%，比起1994年又低了一个百分点，在商业的世界，我致力于寻找拥有无可侵犯护城河所保护的企业堡垒，感谢Tony跟他的经营团队， GEICO周围的护城河又更加宽了许多。

Finally, let me bring you up to date on Davy. He's now 93 and remains my friend and teacher. He continues to pay close attention to GEICO and has always been there when the company's CEOs - Jack Byrne, Bill Snyder and Tony - have needed him. Our acquisition of 100% of GEICO caused Davy to incur a large tax. Characteristically, he still warmly supported the transaction.

最后让我向各位报告一下大卫的近况，高龄93岁的他，对我而言亦师亦友，到现在他还是一样关心GEICO的情况，而当公司现任的主管-Jack Byrne、Bill Snnder与Tony有任何需要他的地方，他都会随时挺身相助，虽然这次的并购案将使得大卫必须承担大笔的税负，但他还是一样支持这项交易。

Davy has been one of my heroes for the 45 years I've known him, and he's never let me down. You should understand that Berkshire would not be where it is today if Davy had not been so generous with his time on a cold Saturday in 1951. I've often thanked him privately, but it is fitting that I use this report to thank him on behalf of Berkshire's shareholders.

自从我认识大卫后，45年以来他一直就是我崇拜的偶像之一，而他确实也从未让我失望过，大家必须了解如果没有大卫在1951年那个寒冷的星期六慷慨解说，Berkshire就绝对不可能会有今天的成就，多年来私底下，我已不知感谢他多少次了，但是今天在这里我觉得应该借着今年的年报代替Berkshire所有的股东向他致上深深的感谢之意。

Insurance Operations保险事业营运

In addition to acquiring GEICO, we enjoyed other favorable developments in insurance during 1995.

除了取得GEICO保险公司全部的股权，1995年我们其它保险事业也都有相当不错的发展。

As we've explained in past reports, what counts in our insurance business is, first, the amount of "float" we generate and, second, its cost to us. Float is money we hold but don't own. In an insurance operation, float arises because most policies require that premiums be prepaid and, more importantly, because it usually takes time for an insurer to hear about and resolve loss claims.

就像我们在过去年报跟各位解释过的，保险事业最重要的关键，第一是保险浮存金的数量，第二是它的成本，浮存金是我们持有并非我们所有，保险事业营运之所以能有浮存金的原因在于大部分的保单都会要求保户必须预付保险费，另外更重要的是保险公司在被知会并真正理赔之前，通常都要经过好长的一段时间。

Typically, the premiums that an insurer takes in do not cover the losses and expenses it must pay. That leaves it running an "underwriting loss" - and that loss is the cost of float. An insurance business is profitable over time if its cost of float is less than the cost the company would otherwise incur to obtain funds. But the business has a negative value if the cost of its float is higher than market rates for money.

通常保险公司实际上收到的保费并不足以支应实际发生的损失与费用，所以大多会产生承保的损失，而这就是浮存金的成本，长期而言，保险公司的浮存金成本若能低于其它资金管道所需的成本就算是获利，但是要是其浮存金成本高于货币市场利率的话，其是否有存在的价值就有疑问。

As the numbers in the following table show, Berkshire's insurance business has been a huge winner. For the table, we have calculated our float - which we generate in exceptional amounts relative to our premium volume - by adding loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents' balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. Our cost of float is determined by our underwriting loss or profit. In those years when we have had an underwriting profit, such as the last three, our cost of float has been negative, which means we have calculated our insurance earnings by adding underwriting profit to float income.

如同下表中的数字所显示的，Berkshire的保险事业大获全胜，表中的浮存金，系将所有的损失准备、损失费用调整准备与未赚取保费加总后，再扣除应付佣金、预付购并成本及相关再保递延费用，相对于我们的保费收入总额，我们的浮存金部位算是相当大的，至于浮存金的成本则决定于所发生的承保损失或利益而定，在某些年度由于我们有承保利益，所以换句话说，我们的资金成本甚至是负的，此时我们的保险事业盈余等于是由原先从浮存金获取的利益再加上承保利益。

1.(2) Yearend YieldUnderwriting Approximate on Long-TerLoss Average Float Cost of Funds Govt. Bonds  (In $ Millions) (Ratio of 1 to 2)

1967
 
profit 17.3 less than zero 5.50%
 
1982
 
21.56 220.6 9.77% 10.64%
 

1968
 
profit 19.9 less than zero 5.90%
 
1983 .
 
33.87 231.3 14.64% 11.84%
 

1969
 
profit 23.4 less than zero 6.79%
 
1984
 
48.06 253.2 18.98% 11.58%
 

1970
 
0.37 32.4 1.14% 6.25%
 
1985
 
44.23 390.2 11.34% 9.34%
 

1971
 
profit 52.5 less than zero 5.81%
 
1986
 
55.84 797.5 7.00% 7.60%
 

1972
 
profit 69.5 less than zero 5.82%
 
1987
 
55.43 1,266.7 4.38% 8.95%
 

1973
 
profit 73.3 less than zero 7.27%
 
1988
 
11.08 1,497.7 0.74% 9.00%
 

1974
 
7.36 79.1 9.30% 8.13%
 
1989
 
24.40 1,541.3 1.58% 7.97%
 

1975
 
11.35 87.6 12.96% 8.03%
 
1990
 
26.65 1,637.3 1.63% 8.24%
 

1976
 
profit 102.6 less than zero 7.30%
 
1991
 
119.59 1,895.0 6.31% 7.40%
 

1977
 
profit 139.0 less than zero 7.97%
 
1992
 
108.96 2,290.4 4.76% 7.39%
 

1978
 
profit 190.4 less than zero 8.93%
 
1993
 
profit 2,624.7 less than zero 6.35%
 

1979
 
profit 227.3 less than zero 10.08%
 
1994
 
profit 3,056.6 less than zero 7.88%
 

1980
 
profit 237.0 less than zero 11.94%
 
1995
 
profit 3,607.2 less than zero 5.95%
 

1981
 
profit 228.4 less than zero 13.61%
 
 
 
 
 

Since 1967, when we entered the insurance business, our float has grown at an annual compounded rate of 20.7%. In more years than not, our cost of funds has been less than nothing. This access to "free" money has boosted Berkshire's performance in a major way.

自从1967年我们进军保险业以来，我们的浮存金每年以20.7%复合成长率增加，大部分的年度，我们的资金成本都低于零以下，受惠于这些免费的资金，大大地帮助Berkshire的绩效提升。

Any company's level of profitability is determined by three items: (1) what its assets earn; (2) what its liabilities cost; and (3) its utilization of "leverage" - that is, the degree to which its assets are funded by liabilities rather than by equity. Over the years, we have done well on Point 1, having produced high returns on our assets. But we have also benefitted greatly - to a degree that is not generally well-understood - because our liabilities have cost us very little. An important reason for this low cost is that we have obtained float on very advantageous terms. The same cannot be said by many other property and casualty insurers, who may generate plenty of float, but at a cost that exceeds what the funds are worth to them. In those circumstances, leverage becomes a disadvantage.

任何一家公司的获利能力决定于(1)资产报酬率(2)负债的成本(3)财务杠杆的运用-也就是其运用负债而非股东权益来支应资产取得的程度。多年以来，我们在第一项表现的相当不错，运用资产所产生的报酬很高，然而在另外一方面由于资金成本极低，也使得我们受惠不少，这点就比较不为人所知，资金成本之所以可以压得很低，主要是由于我们可以用很有利的条件取得保险浮存金，关于这点在其它同业身上就不敢说了，通常他们也能取得大量的保险浮存金，但是取得的成本可能远超过应该付的代价，在这种状况下，运用财务杠杆反而变得相当不利。

Since our float has cost us virtually nothing over the years, it has in effect served as equity. Of course, it differs from true equity in that it doesn't belong to us. Nevertheless, let's assume that instead of our having $3.4 billion of float at the end of 1994, we had replaced it with $3.4 billion of equity. Under this scenario, we would have owned no more assets than we did during 1995. We would, however, have had somewhat lower earnings because the cost of float was negative last year. That is, our float threw off profits. And, of course, to obtain the replacement equity, we would have needed to sell many new shares of Berkshire. The net result - more shares, equal assets and lower earnings - would have materially reduced the value of our stock. So you can understand why float wonderfully benefits a business - if it is obtained at a low cost.

由于多年来这些保险浮存金几乎没有让我们增加任何额外的成本，所以它们实际上等同于股本，当然不同于真正的股本，这些资金并不真正属于我们，不过假设在1994年我们持有的不是34亿美元的浮存金，而是34亿美元的股本的话，在这种情况下，我们拥有的总资产一点都不会增加，而且我们的盈余却可能还会不增反减，因为去年浮存金的成本是负的，也就是说浮存金的存在对于我们的获利还有额外的贡献，而资本的增加却代表着Berkshire必须额外再发行许多新股，所以想当然尔，更多的股份代表着更低的每股盈余，等于大大地减损了每股股份的价值，所以大家应该能够了解，为什么浮存金对于一个企业来说如此的重要，尤其是当它们取得的成本极低之时。

Our acquisition of GEICO will immediately increase our float by nearly $3 billion, with additional growth almost certain. We also expect GEICO to operate at a decent underwriting profit in most years, a fact that will increase the probability that our total float will cost us nothing. Of course, we paid a very substantial price for the GEICO float, whereas virtually all of the gains in float depicted in the table were developed internally.

在购并GEICO之后，我们的保险浮存金马上增加近30亿美元，而且展望未来这数字还会继续成长，此外我们也预期GEICO每年还能够继续拥有相当的承保获利，这等于保证这些浮存金不但不须负担资金成本还能额外贡献给我们获利，当然就内部转拨而言，我们还是必须支付GEICO一笔相当的对价以取得浮存金。

Our enthusiasm over 1995's insurance results must be tempered once again because we had our third straight year of good fortune in the super-cat business. In this operation, we sell policies that insurance and reinsurance companies buy to protect themselves from the effects of mega-catastrophes. Since truly major catastrophes occur infrequently, our super-cat business can be expected to show large profits in most years but occasionally to record a huge loss. In other words, the attractiveness of our super-cat business will take many years to measure. We know that the results of years like the past three will be at least partially offset by some truly terrible year in the future. We just hope that "partially" turns out to be the proper adverb.

对于1995年我们的保险营运绩效的兴奋程度可能要再度稍微降温一下，原因在于我们的霹雳猫再保业务连续第三年大放异彩，我们出售保单给保险公司与再保公司以分散其面临超大型意外灾害所可能承担的风险，由于真正重大的灾害并不常发生，所以我们的霹雳猫业务有可能在连续几年赚大钱后，才突然发生重大的损失，换句话说，我们这项霹雳猫业务到底有多吸引人可能要花上好几年才有办法看得清，我们很清楚的了解过去三年来优异的成果一定会被未来某些悲惨的年度给抵消掉部份的效果，当然我们希望所谓的"部份"是个适当的形容词。

There were plenty of catastrophes last year, but no super-cats of the insured variety. The Southeast had a close call when Opal, sporting winds of 150 miles per hour, hovered off Florida. However, the storm abated before hitting land, and so a second Andrew was dodged. For insurers, the Kobe earthquake was another close call: The economic damage was huge - perhaps even a record - but only a tiny portion of it was insured. The insurance industry won't always be that lucky.

去年天灾不断，但没有一个逾越霹雳猫的界限，曾有一个强风Opal在美国东南部以每小时150英哩的速度徘徊在佛罗里达附近，所幸它在登陆前及时转弱，而避免成为第二个Andrew飓风，另外对保险公司来说，阪神大地震同样令人印象深刻，不可讳言，那次造成的总体经济损失可算是空前，不过由于其中仅有一小部份有保险，所以最后真正保险理赔的金额有限，当然保险业不可能永远都那么幸运。

Ajit Jain is the guiding genius of our super-cat business and writes important non-cat business as well. In insurance, the term "catastrophe" is applied to an event, such as a hurricane or earthquake, that causes a great many insured losses. The other deals Ajit enters into usually cover only a single large loss. A simplified description of three transactions from last year will illustrate both what I mean and Ajit's versatility. We insured: (1) The life of Mike Tyson for a sum that is large initially and that, fight-by-fight, gradually declines to zero over the next few years; (2) Lloyd's against more than 225 of its "names" dying during the year; and (3) The launch, and a year of orbit, of two Chinese satellites. Happily, both satellites are orbiting, the Lloyd's folk avoided abnormal mortality, and if Mike Tyson looked any healthier, no one would get in the ring with him.

Ajit Jain可说是我们霹雳猫业务的天纵英才，当然他同时也负责许多重要的非霹雳猫业务，在保险业所谓的灾害，系指可能导致许多理赔损失的事件，诸如飓风或地震等，另外Ajit也负责受理一些单一重大事件的投保，以下三件个案应该可充分以说明我所说的意思，同时展现Ajit的多才多艺，我们受理(1)拳王泰森的生命险，当然一开始金额相当的高，但随着一场场的比赛在几年后逐渐递减到最后变成零(2)英国最大保险劳埃氏总计225人的生命险以及(3)保证两颗中国卫星的发射及在轨道上周转一年；结果所幸中国卫星发射顺利，并在轨道上正常运转，同时劳埃氏的死亡率还算正常，而拳王泰森看起来再健康不过，看不出有谁可以从他手上抢下冠军戒指。

Berkshire is sought out for many kinds of insurance, both super-cat and large single-risk, because: (1) our financial strength is unmatched, and insureds know we can and will pay our losses under the most adverse of circumstances; (2) we can supply a quote faster than anyone in the business; and (3) we will issue policies with limits larger than anyone else is prepared to write. Most of our competitors have extensive reinsurance treaties and lay off much of their business. While this helps them avoid shock losses, it also hurts their flexibility and reaction time. As you know, Berkshire moves quickly to seize investment and acquisition opportunities; in insurance we respond with the same exceptional speed. In another important point, large coverages don't frighten us but, on the contrary, intensify our interest. We have offered a policy under which we could have lost $1 billion; the largest coverage that a client accepted was $400 million.

Berkshire目前积极寻求各类保险业务，包含霹雳猫与大型单一风险，因为(1)我们无与伦比的财务实力，使得投保客户可以确定不论在多糟的状况下，他们都可以顺利获得理赔(2)我们可以最快的速度向客户完成报价(3)我们可以签下比其他保险公司金额更高的保单，其它竞争同业大多都有范围广阔的再保条款，并将大部分的业务分保出去，虽然这样的做法可以让他们避免重大的损失意外，但却也破坏掉他们的弹性与反应时间，大家都知道，Berkshire抓住投资与购并的动作向来相当的快，在保险业务方面我们的反应速度也是如此，另外还有很重要的一点，高额的保险上限吓唬不了我们，相反地更能引起我们的兴趣，我们可以接受的最高理赔上限是10亿美元，相较之下，其它同业所能容忍的最高限度仅为4亿美元。

We will get hit from time to time with large losses. Charlie and I, however, are quite willing to accept relatively volatile results in exchange for better long-term earnings than we would otherwise have had. In other words, we prefer a lumpy 15% to a smooth 12%. Since most managers opt for smoothness, we are left with a competitive advantage that we try to maximize. We do, though, monitor our aggregate exposure in order to keep our "worst case" at a level that leaves us comfortable.

总有一天我们会碰上大麻烦，但是查理跟我本人却相当可以接受这种变动剧烈的结局，只要长期来说我们的报酬可以令人满意，讲的再白一点，我们比较喜欢上下变动的15%，更甚于平淡无奇的12%，而正因为大部分的经理人倾向平淡，这使得我们长期报酬极大化的目标享有绝对的竞争优势，当然我们会密切注意避免让最坏的状况超越我们可以容忍的范围。

Indeed, our worst case from a "once-in-a-century" super-cat is far less severe - relative to net worth - than that faced by many well-known primary companies writing great numbers of property policies. These insurers don't issue single huge-limit policies as we do, but their small policies, in aggregate, can create a risk of staggering size. The "big one" would blow right through the reinsurance covers of some of these insurers, exposing them to uncapped losses that could threaten their survival. In our case, losses would be large, but capped at levels we could easily handle.

事实上，即使是发生百年一次的超级大灾难的最坏情况下，我们净值所可能受到的损害程度可以远比其它签下一大堆产物意外险保单的知名保险业者要来的轻微许多，虽然这些同业没有像我们一样签下单一极高上限的保单，但是所谓积沙成塔，他们累积的小额保单却可能造成无以弥补的后果，因为后者可能会直接穿越再保险的防护罩，使他们必须承担没有上限的损失与生存的危机，至于我们，损失数字虽然很大，但却是在我们可以轻易化解的范围之内。

Prices are weakening in the super-cat field. That is understandable considering the influx of capital into the reinsurance business a few years ago and the natural desire of those holding the capital to employ it. No matter what others may do, we will not knowingly write business at inadequate rates. We unwittingly did this in the early 1970's and, after more than 20 years, regularly receive significant bills stemming from the mistakes of that era. My guess is that we will still be getting surprises from that business 20 years from now. A bad reinsurance contract is like hell: easy to enter and impossible to exit.

近年来霹雳猫保单的价格一直萎糜不振，这点可以理解的原因在于几年前大量的资金流进再保业界竞逐有限的保单生意，然而不管别人怎么做，我们是绝对不会以不合理的价格赔钱做生意的，早在1970年代初期，我们就一直在不知情的情况下，犯下类似的错误，结果在往后的二十年内，因为那个年代错误所付出的代价，化成理赔损失的帐单不断地涌进本公司，而我有预感我们将会为20年前所犯的错误继续付出代价，一张糟糕的再保合约就像是地狱一样，进去容易，但想要出来可就难了。

I actively participated in those early reinsurance decisions, and Berkshire paid a heavy tuition for my education in the business. Unfortunately, reinsurance students can't attend school on scholarship. GEICO, incidentally, suffered a similar, disastrous experience in the early 1980's, when it plunged enthusiastically into the writing of reinsurance and large risks. GEICO's folly was brief, but it will be cleaning things up for at least another decade. The well-publicized problems at Lloyd's further illustrate the perils of reinsurance and also underscore how vital it is that the interests of the people who write insurance business be aligned - on the downside as well as the upside - with those of the people putting up the capital. When that kind of symmetry is missing, insurers almost invariably run into trouble, though its existence may remain hidden for some time.

早年我积极参与再保业务，结果使得Berkshire必须为我这一堂课付出昂贵的学费，更不幸的是，修再保课程的学生根本没有办法拿到奖学金，碰巧的是GEICO在1980年代初期，也面临过类似悲惨的命运，当时该公司一头热地栽进再保与大型灾害保险的业务，虽然GEICO愚昧的举动为期不久，但是它却必须花费十年以上的工夫收拾残局，著名的英国劳埃氏保险的困境进一步说明了不当再保可能造成的灾难以及共同投入资金参与保险业务出资人的利益，基本上就是一个生命共同体，不管是在顺境与逆境皆然，一旦人们失去对于这点观念的聚焦，保险业者就注定会发生问题，而且通常必须经历一段时间后，问题才会逐渐地浮上台面。

A small, apocryphal story about an insurance CEO who was visited by an analyst tells a lot about this industry. To the analyst's questions about his business, the CEO had nothing but gloomy answers: Rates were ridiculously low; the reserves on his balance sheet weren't adequate for ordinary claims, much less those likely to arise from asbestos and environmental problems; most of his reinsurers had long since gone broke, leaving him holding the sack. But then the CEO brightened: "Still, things could be a lot worse," he said. "It could be my money." At Berkshire, it's our money.

有一段小故事是有关一位保险公司总裁接受一位分析师访问谈到保险业的经营，面对分析师询问关于其公司的情况时，得到的答案显得相当无奈，费率低得离谱、财务报表上所提的准备连一般理赔都不够，更不要说其它那些因为石绵与环保问题所引发的重大损害赔偿，想到许多以往依靠的再保公司都已倒闭，只剩他一个人独撑大局，突然间这位总裁略微释怀的说到，当然情况有可能会更糟，再来可能就会轮到我的荷包，天啊!在Berkshire，这可是我们的荷包呢!

Berkshire's other insurance operations, though relatively small, performed magnificently in 1995. National Indemnity's traditional business had a combined ratio of 84.2 and developed, as usual, a large amount of float compared to premium volume. Over the last three years, this segment of our business, run by Don Wurster, has had an average combined ratio of 85.6. Our homestate operation, managed by Rod Eldred, grew at a good rate in 1995 and achieved a combined ratio of 81.4. Its three-year combined ratio is an amazing 82.4. Berkshire's California workers' compensation business, run by Brad Kinstler, faced fierce price-cutting in 1995 and lost a great many renewals when we refused to accept inadequate rates. Though this operation's volume dropped materially, it produced an excellent underwriting profit. Finally, John Kizer, at Central States Indemnity, continues to do an extraordinary job. His premium volume was up 23% in 1995, and underwriting profit grew by 59%. Ajit, Don, Rod, Brad and John are all under 45, an embarrassing fact demolishing my theory that managers only hit their stride after they reach 70.

Berkshire其它的保险营运，虽然规模相对较小，但在1995年的表现却同样极为出色，国家产物保险传统业务的综合比率只有84.2，同时以其保费收入来看，还贡献了大量的浮存金，过去三年以来，这个由Don Wurster负责的部门平均的综合比率只有85.6；另外由Rod Eldred负责的Homestate业务也有相当幅度的成长，去年的综合比率更只有81.4，过去三年平均为82.4；由Brad负责的加州劳工退休基金在1995年面对激烈的价格竞争，同时还因为拒绝不合理的降价要求而失去续约的机会，虽然此举使得业务量大幅缩减，但整体的承保利益仍然相当可观；最后负责中央州立产险公司营运的John则依然表现出色，1995年的保费收入成长23%，承保利益更大幅增加59%，Ajit、Don、Rod、Brad与John的年纪都在45岁以下，这种情况也让我以往认为经理人要到70之后才能随心所欲的论点破功。

To sum up, we entered 1995 with an exceptional insurance operation of moderate size. By adding GEICO, we entered 1996 with a business still better in quality, much improved in its growth prospects, and doubled in size. More than ever, insurance is our core strength.总的来说，1995年我们规模适中的保险事业缴出漂亮的成绩单，而展望1996年，在GEICO加入之后，在维持保险事业原有的品质之下，规模与成长皆可期，较之以往，保险事业已成为我们核心竞争事业。

Sources of Reported Earnings帐列盈余的来源

The table below shows the main sources of Berkshire's reported earnings. In this presentation, purchase-premium charges are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. This form of presentation seems to us to be more useful to investors and managers than one utilizing GAAP, which requires purchase-premiums to be charged off, business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

(in millions) Berkshire's Share of Net Earnings (after taxes and Pre-Tax Earnings minority interests)

Operating Earnings: Insurance Group

 
 
Underwriting
 
Net Investment Income
 
Buffalo News
 
Fechheimer
 
Finance Businesses
 
Home Furnishings
 
Jewelry
 
Kirby
 

1995
 
$ 20.5  
 
501.6  
 
46.8
 
16.9
 
20.8 
 
29.7(1)
 
33.9(2)
 
50.2 
 

1994
 
$129.9
 
419.4
 
54.2
 
14.3
 
22.1
 
17.4
 
---(3)
 
42.3
 

1995
 
$ 11.3
 
417.7
 
27.3
 
8.8
 
12.6
 
16.7(1)
 
19.1(2)
 
32.1
 

1994
 
$ 80.9
 
350.5
 
31.7
 
7.1
 
14.6
 
8.7
 
---(3)
 
27.7
 

Scott Fetzer Manufacturing Group 34.1 39.5 21.2 24.9

 
 
See's Candies
 
Shoe Group
 
World Book
 
Purchase-Price Premium Charges
 
Interest Expense(4)
 
Shareholder-Designated Contributions
 
Other
 

1995
 
50.2 
 
58.4
 
8.8
 
(27.0)
 
(56.0)
 
(11.6)
 
37.4  
 

1994
 
47.5
 
85.5
 
24.7
 
(22.6)
 
(60.1)
 
(10.4)
 
35.7
 

1995
 
29.8
 
37.5
 
7.0
 
(23.4)
 
(34.9)
 
(7.0)
 
24.4
 

1994
 
28.2
 
55.8
 
17.3
 
(19.4)
 
(37.3)
 
(6.7)
 
22.3
 

Operating Earnings ............. 814.7 839.4 600.2 606.2

 
 
Sales of Securities
 
Decline in Value of USAir Preferred Stock
 
Total Earnings - All Entities
 

1995
 
194.1 
 
--- 
 
$1,008.8 
 

1994
 
91.3
 
(268.5)
 
$662.2
 

1995
 
125.0
 
---
 
$725.2
 

1994
 
61.1
 
(172.6)
 
$494.8
 

(1) Includes R.C. Willey from June 29, 1995. (1)包含R.C. Willey 1995年6月29日以后的盈余

(2) Includes Helzberg's from April 30, 1995. (2)包含Helzberg 1995年4月30日以后的盈余

(3) Jewelry earnings were included in "Other" in 1994. (3)珠宝事业1994年的盈余包含在其它项目之下

(4) Excludes interest expense of Finance Businesses. (4)扣除金融事业的利息支出

A large amount of information about these businesses is given on pages 41-52, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 57-63, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company. Our intent is to supply you with the financial information that we would wish you to give us if our positions were reversed.

在年报中你可以找到依照一般公认会计原则编制，详细的部门别信息，至于我们的目的是希望能够给大家，所有查理跟我认为在评估Berkshire价值时，应该必要的信息。

At Berkshire, we believe in Charlie's dictum - "Just tell me the bad news; the good news will take care of itself" - and that is the behavior we expect of our managers when they are reporting to us. Consequently, I also owe you - Berkshire's owners - a report on three operations that, though they continued to earn decent (or better) returns on invested capital, experienced a decline in earnings last year. Each encountered a different type of problem.

在Berkshire，我们相信查理的格言，只管告诉我坏消息，因为好消息绝对会不胫而走，而这也是我们希望旗下事业经理人向我们报告时所采取的态度，也因此身为Berkshire负责人的我有义务向大家报告，去年总共有三个事业营运发生问题，虽然投资在他们身上的资金所取得的报酬率仍然相当的不错(或甚至是更好)，但每个事业都面临了不同的问题。

Our shoe business operated in an industry that suffered depressed earnings throughout last year, and many of our competitors made only marginal profits or worse. That means we at least maintained, and in some instances widened, our competitive superiority. So I have no doubt that our shoe operations will climb back to top-grade earnings in the future. In other words, though the turn has not yet occurred, we believe you should view last year's figures as reflecting a cyclical problem, not a secular one.

去年一整年我们的鞋类事业一直面临产业困境，有些同业只能勉强赚取蝇头小利，甚至是亏钱，当然这也代表在某个层面来说，至少我们与同业间仍维持着甚至是扩大了竞争差距，所以我依然坚信在未来，我们的鞋类事业一定能够回复以往的高获利，换句话说，虽然目前尚未看到反转的迹象，但我认为大家可以将去年的数字视为景气即将反转的底部，而不是永远的谷底。

The Buffalo News, though still doing very well in comparison to other newspapers, is another story. In this case, industry trends are not good. In the 1991 Annual Report, I explained that newspapers had lost a notch in their economic attractiveness from the days when they appeared to have a bullet-proof franchise. Today, the industry retains its excellent economics, but has lost still another notch. Over time, we expect the competitive strength of newspapers to gradually erode, though the industry should nevertheless remain a fine business for many years to come.

至于水牛城新闻报的表现，较之同业虽然还是相当不错，却也面临另外的问题，那就是报业前景不佳，在1991年的年报中，我就曾说过报业早已失去以往金刚不摧的特许事业所享有的竞争优势，虽然时至今日，报业经营还算稳定，但却逐渐失去另一项竞争优势，我们预期报业的竞争力将与日剧减，虽然这产业在未来可见的年度内还是一项不错的投资。

Berkshire's most difficult problem is World Book, which operates in an industry beset by increasingly tough competition from CD-ROM and on-line offerings. True, we are still profitable, a claim that perhaps no other print encyclopedia can make. But our sales and earnings trends have gone in the wrong direction. At the end of 1995, World Book made major changes in the way it distributes its product, stepped up its efforts with electronic products and sharply reduced its overhead costs. It will take time for us to evaluate the effects of these initiatives, but we are confident they will significantly improve our viability.

在Berkshire目前状况最多的就属世界百科全书，面临来自CD与网络激烈的竞争，虽然我们仍能勉强维持获利，(大概没有其它百科全书业者敢这样说)，不过业绩与获利却直线下滑，因此在1995年底，世界百科全书决定大幅改变行销方式，加强电子产品内容并大幅降低营运成本，当然这些做法的成效还有待观察，不过我个人相信此举绝对有助于我们继续维持生存。

All of our operations, including those whose earnings fell last year, benefit from exceptionally talented and dedicated managers. Were we to have the choice of any other executives now working in their industries, there is not one of our managers we would replace.

我们旗下所有的事业，也包含几个获利大幅衰退的公司，一直都由杰出专注的经理人所经营，就算我们有机会能够挖到业界最好的经理人，但我们还是不会考虑将给他们取代掉。

Many of our managers don't have to work for a living, but simply go out and perform every day for the same reason that wealthy golfers stay on the tour: They love both doing what they do and doing it well. To describe them as working may be a misnomer - they simply prefer spending much of their time on a productive activity at which they excel to spending it on leisure activities. Our job is to provide an environment that will keep them feeling this way, and so far we seem to have succeeded: Thinking back over the 1965-95 period, I can't recall that a single key manager has left Berkshire to join another employer.

我们有许多经理人根本就不必靠这份工作过活，但每天还是一样全力以赴，就像是口袋麦克麦克的职业高尔夫球选手还是继续打巡回赛一样，他们喜欢现在从事的工作，而且把它做的很好，把他们形容是在工作或许是个错误的名词，他们只不过是把他们大部分的时间花在他们所擅长的生产活动而非休闲活动之上而已，而我的工作则是努力维持一个让他们有这样感觉的环境，截至目前为止，我们做的还算是相当成功，回顾过去1965年到1995年这三十年间，Berkshire没有任何一位主要经理人发生琵琶别抱的情况。

Common Stock Investments股票投资

Below we present our common stock investments. Those with a market value of more than $600 million are itemized.

下表是我们超过六亿美元以上的普通股投资。

12/31/95Shares Company Cost Market  (dollars in millions)

49,456,900
 
20,000,000
 
100,000,000
 
12,502,500
 
34,250,000
 
48,000,000
 
6,791,218
 
 
 
 
 

American Express Company
 
Capital Cities/ABC, Inc
 
The Coca-Cola Company
 
Federal Home Loan Mortgage Corp("Freddie Mac")
 
GEICO Corp.
 
The Gillette Company
 
Wells Fargo & Company
 
Others
 
Total Common Stocks
 

$1,392.7
 
345.0
 
1,298.9
 
260.1
 
45.7
 
600.0
 
423.7
 
1,379.0
 
$5,745
 

$2,046.3
 
2,467.5
 
7,425.0
 
1,044.0
 
2,393.2
 
2,502.0
 
1,466.9
 
2,655.4
 
$22,000
 

We continue in our Rip Van Winkle mode: Five of our six top positions at yearend 1994 were left untouched during 1995. The sixth was American Express, in which we increased our ownership to about 10%.

我们继续做着我们的李伯大梦，在1994年持有的前六大持股中，有五支在1995年维持不动，唯一有变动的是美国运通，我们将持有股权比例提高到10%左右。

In early 1996, two major events affected our holdings: First, our purchase of the GEICO stock we did not already own caused that company to be converted into a wholly-owned subsidiary. Second, we exchanged our Cap Cities shares for a combination of cash and Disney stock.

在1996年初期，有两个重大事件影响到我们的持股，首先在买下GEICO剩余一半的股份之后，GEICO变成我们百分之百持有的子公司，第二，我们将资本城股份转换成现金与迪士尼股票。

In the Disney merger, Cap Cities shareholders had a choice of actions. If they chose, they could exchange each of their Cap Cities shares for one share of Disney stock plus $65. Or they could ask for - though not necessarily get - all cash or all stock, with their ultimate allotment of each depending on the choices made by other shareholders and certain decisions made by Disney. For our 20 million shares, we sought stock, but do not know, as this report goes to press, how much we were allocated. We are certain, however, to receive something over 20 million Disney shares. We have also recently bought Disney stock in the market.

在迪士尼的并购案中，原来资本城的股东可以有好几种选择，他们可以选择将原有一股转换成迪士尼的一股外加65美元现金，或者他们可以要求全部换成现金或是股票，但是最终可获得的分配结果还要视其它股东的选择以及迪士尼本身的态度而定，以我们持有2,000万股来说，我们选择全部转换成股票，不过到年报截止日为止，我们还不确定到底可以分配到多少股份，当然可以确定的是最后收到的股数一定会超过2,000万股，除此之外，我们还透过公开市场继续收购迪士尼的股份。

One more bit of history: I first became interested in Disney in 1966, when its market valuation was less than $90 million, even though the company had earned around $21 million pre-tax in 1965 and was sitting with more cash than debt. At Disneyland, the $17 million Pirates of the Caribbean ride would soon open. Imagine my excitement - a company selling at only five times rides!

再透露一点历史，我第一次对迪士尼发生兴趣是在1966年，当时它的股票市值还不到9,000万美元，虽然该公司在前一年度-1965年的税前净利是2,100万美元，而且所拥有的现金甚至多过于负债，当时迪斯奈乐园斥资1,700万美元的加勒比海海盗船才刚要开幕，而这家公司的卖价只不过是这艄海盗船的五倍!

Duly impressed, Buffett Partnership Ltd. bought a significant amount of Disney stock at a split-adjusted price of 31?per share. That decision may appear brilliant, given that the stock now sells for $66. But your Chairman was up to the task of nullifying it: In 1967 I sold out at 48?per share.

印象深刻的我，利用巴菲特合伙企业的资金，买进一大笔的股份，照分割调整后的平均成本约31美元一股，这样的决定显然很正确，因为现在的股价大概是66美元一股，各位的董事长却在1967年以每股48美元将这批股票卖出，使得其效果大打折扣。

Oh well - we're happy to be once again a large owner of a business with both unique assets and outstanding management.

不过还好，绕了半天，我们很高兴能够再度成为这家拥有独特资产与杰出管理阶层公司的大股东。

Convertible Preferred Stocks可转换特别股

As many of you will remember, Berkshire made five private purchases of convertible preferred stocks during the 1987-91 period and the time seems right to discuss their status. Here are the particulars:

大家可能都还记得，Berkshire在1987年到1991年透过与公司私下协议的方式，取得五种可转换特别股，现在的时机很适合来谈谈它们现在的状况，以下是一些重点摘要。

Dividend Year of MarketCompany Rate Purchase Cost Value  (dollars in millions)

Champion International Corp.
 
9 1/4% 1989 $300 $388(1)
 
 
 
Salomon Inc
 
9% 1987 700 728(3)
 

First Empire State Corp.
 
9% 1991 40 110
 
USAir Group, Inc.
 
9 1/4% 1989 358 215
 

The Gillette Company
 
8 3/4% 1989 600 2,502(2)
 
 
 
 
 

(1) Proceeds from sale of common we received through conversion in 1995. (1)系1995年转换为普通股后，出售股票的收入。

(2) 12/31/95 value of common we received through conversion in 1991. (2)系1991年转换为普通股后的股票市值。

(3) Includes $140 we received in 1995 from partial redemption. (3)包含1995年收到部份赎回的1.4亿美元收入。

In each case we had the option of sticking with these preferreds as fixed-income securities or converting them into common stock. Initially, their value to us came primarily from their fixed-income characteristics. The option we had to convert was a kicker.

每一个案子我们都有权选择维持原来以固定收益证券为主的特别股形式或是将它们转换成普通股，刚开始它们的价值主要来自于固定收益证券的特质，至于其所附带的转换权利只不过具有加分的作用而已。

Our $300 million private purchase of American Express "Percs" - described in the 1991 Annual Report - is not included in the table because that security was a modified form of common stock whose fixed-income characteristics contributed only a minor portion of its initial value. Three years after we bought them, the Percs automatically were converted to common stock. In contrast, the five securities in the table were set to become common stocks only if we wished them to - a crucial difference.

另外在1991年的年报中已经介绍过，我们透过私募所取得的美国运通Percs，并未包含在本表之中，其原因主要是因为Percs事实上是一种普通股的修订版，其固定收益的特性只占其原始价值的一小部份，在我们买下它们的三年后已经自动转为美国运通的普通股，相对的，本表所提到的五种有价证券只有在我们有意愿的状况下，才会转变成一般的普通股，基本上这之间有相当大的差异。

When we purchased our convertible securities, I told you that we expected to earn after-tax returns from them that "moderately" exceeded what we could earn from the medium-term fixed-income securities they replaced. We beat this expectation - but only because of the performance of a single issue. I also told you that these securities, as a group, would "not produce the returns we can achieve when we find a business with wonderful economic prospects." Unfortunately, that prediction was fulfilled. Finally, I said that "under almost any conditions, we expect these preferreds to return us our money plus dividends." That's one I would like to have back. Winston Churchill once said that "eating my words has never given me indigestion." My assertion, however, that it was almost impossible for us to lose money on our preferreds has caused me some well-deserved heartburn.

当我们买进这些可转换证券时，我曾经跟各位提到我们预期这些投资的税后报酬率应该可以略高于其所取代的中期固定收益证券，幸运的是结果超乎预期，原因是因为其中有一个案子发了，同时我也提醒过各位，这些投资可能无法与真正找到具有竞争优势好公司的投资相比，不幸的就这点而言，我一语中的，最后我还说过，不论在任何状况下，我们完全可以预期这些投资一定能够回收本金再加上股息，这句话我想要收回来，虽然英国前首相丘吉尔曾说过︰把说过的话吞回去，并不会让人消化不良，但是关于我说过"特别股一定不会让我们赔钱的这句话"确实让我感到心痛。

Our best holding has been Gillette, which we told you from the start was a superior business. Ironically, though, this is also the purchase in which I made my biggest mistake - of a kind, however, never recognized on financial statements.

其中表现最佳的是吉列特别股，从一开始我就跟各位说过这是一家相当好的公司，不过讽刺的是，这也是我犯过的一个大错之一，虽然这项错误从未反应在财务报表之上。

We paid $600 million in 1989 for Gillette preferred shares that were convertible into 48 million (split-adjusted) common shares. Taking an alternative route with the $600 million, I probably could have purchased 60 million shares of common from the company. The market on the common was then about $10.50, and given that this would have been a huge private placement carrying important restrictions, I probably could have bought the stock at a discount of at least 5%. I can't be sure about this, but it's likely that Gillette's management would have been just as happy to have Berkshire opt for common.

我们在1989年以六亿美元取得吉列可转换特别股，之后并转换为4,800万股吉列的普通股(分割调整后)，然而要是当初我们选择直接投资该公司的普通股，这笔钱将可以买到6,000万股，因为吉列当时每股的市价为10.5美元，而由于那次的私募对于我们有诸多的限制条款，所以拿到5%左右的折扣应该不成问题，我不知道这样说对不对，我认为当时要是我们选择直接以取得普通股的方式投资，该公司的管理阶层可能会更高兴。

But I was far too clever to do that. Instead, for less than two years, we received some extra dividend income (the difference between the preferred's yield and that of the common), at which point the company - quite properly - called the issue, moving to do that as quickly as was possible. If I had negotiated for common rather than preferred, we would have been better off at yearend 1995 by $625 million, minus the "excess" dividends of about $70 million.

可惜人算不如天算，虽然在这两年内我们另外还收到额外的特别股股息(这是普通股所没有的)，如果当初我选择普通股而非特别股的话，截至1995年止我们将可多获得6.25亿美元的利益，当然还要再扣除7,000万美元的特别股股息。

In the case of Champion, the ability of the company to call our preferred at 115% of cost forced a move out of us last August that we would rather have delayed. In this instance, we converted our shares just prior to the pending call and offered them to the company at a modest discount.

另外在Champion这个案子，由于公司可以以115%的价位赎回我们持有的特别股，使得我们被迫于去年八月有所动作，这个案子就在公司即将有权动用赎回权的前夕，以略微打折的价格申请转换为普通股。

Charlie and I have never had a conviction about the paper industry - actually, I can't remember ever owning the common stock of a paper producer in my 54 years of investing - so our choice in August was whether to sell in the market or to the company. Champion's management had always been candid and honorable in dealing with us and wished to repurchase common shares, so we offered our stock to the company. Our Champion capital gain was moderate - about 19% after tax from a six-year investment - but the preferred delivered us a good after-tax dividend yield throughout our holding period. (That said, many press accounts have overstated the after-tax yields earned by property-casualty insurance companies on dividends paid to them. What the press has failed to take into account is a change in the tax law that took effect in 1987 and that significantly reduced the dividends received credit applicable to insurers. For details, see our 1986 Annual Report.)

查理跟我对造纸业从来没有涉猎，事实上在我长达54年的投资生涯中，印象中从来就没有持有过纸类股的股票，所以去年八月我们可以做的选择大概就是将这笔投资在市场上卖掉或是任由公司赎回，在我们投资Champion的过程中，该公司经营阶层对我们的态度一向坦白自重，而他们也希望将这批股票买回，所以到最后我们决定顺应公司的要求，这项举动让我们有19%的税后资本利得，当然还要再加上持有六年期间所收到的特别股股息，(附带一提，许多新闻报导都过度高估一般产物意外险业者所收到股利收入的税后报酬率，原因在于媒体记者忘了将1987年通过的新税法列入考虑，这项税法大大减少了保险业者最后可以得到的利益，相关的细节请参阅1986年的年报)。

Our First Empire preferred will be called on March 31, 1996, the earliest date allowable. We are comfortable owning stock in well-run banks, and we will convert and keep our First Empire common shares. Bob Wilmers, CEO of the company, is an outstanding banker, and we love being associated with him.

我们在第一帝国银行的特别股在1996年3月1日进行转换，这是可以转换的最早日期，我们对于能够继续持有这家经营良好银行的股份感到相当安心，该公司的总裁Bob Wilmers是位相当优秀的银行家，我们很高兴能够与他一起合作。

Our other two preferreds have been disappointing, though the Salomon preferred has modestly outperformed the fixed-income securities for which it was a substitute. However, the amount of management time Charlie and I have devoted to this holding has been vastly greater than its economic significance to Berkshire. Certainly I never dreamed I would take a new job at age 60 - Salomon interim chairman, that is - because of an earlier purchase of a fixed-income security.

另外两个特别股投资个案的结果就让人相当失望，虽然所罗门特别股最后的投资报酬率仍高于其替代的固定收益证券投资，不过若考量查理跟我本人在这项投资上所花费的心思，其所得与付出实在是不成正比，当然我根本就没有料到到了60岁的这把年纪，会因为一笔固定收益证券的投资，还能够接下这项担任所罗门临时董事会主席的新工作。

Soon after our purchase of the Salomon preferred in 1987, I wrote that I had "no special insights regarding the direction or future profitability of investment banking." Even the most charitable commentator would conclude that I have since proved my point.

1987年就在我们刚刚买下所罗门特别股不久之后，我就曾经说过我们对于投资银行业的发展前景与获利能力并没有特殊的见地，我想事后看来就算是最好心的评论家，也会觉得我当时说的那段话很有道理。

To date, our option to convert into Salomon common has not proven of value. Furthermore, the Dow Industrials have doubled since I committed to buy the preferred, and the brokerage group has performed equally as well. That means my decision to go with Salomon because I saw value in the conversion option must be graded as very poor. Even so, the preferred has continued under some trying conditions to deliver as a fixed-income security, and the 9% dividend is currently quite attractive.

到目前为止，我们拥有将这笔投资转换为所罗门普通股的权利，其价值尚未浮现，另外自从买进这笔投资后，道琼指数已经涨了一倍，而券商的表现也相当不错，这代表我因为判断转换权利相当有价值而决定继续与所罗门交往的决策品质相当的差，不过即便如此，这笔特别股投资还是相当勉力地继续当作我们的固定收益证券投资，毕竟每年9%的股息收入还是相当诱人的。

Unless the preferred is converted, its terms require redemption of 20% of the issue on October 31 of each year, 1995-99, and $140 million of our original $700 million was taken on schedule last year. (Some press reports labeled this a sale, but a senior security that matures is not "sold.") Though we did not elect to convert the preferred that matured last year, we have four more bites at the conversion apple, and I believe it quite likely that we will yet find value in our right to convert.

除非我们选择转换，否则这项投资有一条款约定从1995年10月31日开始的五年，该公司每年都可赎回20%的投资，所以去年我们总计7亿的投资中，1.4亿已按计画由公司赎回，(有些新闻报导将这笔交易称呼为出售，事实上债券到期后应该称之为"赎回")，虽然去年我们放弃转换选择而被赎回，不过我们还有四次机会，而我也相信未来我们应该很有可能在这些转换的权利中找到一些价值存在。

I discussed the USAir investment at length in last year's report. The company's results improved in 1995, but it still faces significant problems. On the plus side for us is the fact that our preferred is structurally well-designed: For example, though we have not been paid dividends since June 1994, the amounts owed us are compounding at 5% over the prime rate. On the minus side is the fact that we are dealing with a weak credit.

去年我花了相当大的篇幅讨论美国航空，这家公司今年的表现略微好转，不过还是着面临许多的问题，幸运的是我们的特别股投资条款当初订的对我们较有利，比如说，虽然从1994年起本来应该付给我们的特别股股息就已跳票，但是欠我们的股息每年还是必须以5%的基放利率加计利息，不过不幸的是跟我们打交道的是一家债信不良的公司。

We feel much better about our USAir preferred than we did a year ago, but your guess is as good as mine as to its ultimate value. (Indeed, considering my record with this investment, it's fair to say that your guess may be better than mine.) At yearend we carried our preferred (in which there is no public market) at 60% of par, though USAir also has outstanding a junior preferred that is significantly inferior to ours in all respects except conversion price and that was then trading at 82% of par. As I write this, the junior issue has advanced to 97% of par. Let's hope the market is right.

关于美国航空特别股的情况，比起一年前，我们现在乐观许多，不过这家公司最后到底会变成怎样，我跟各位一样还是没有任何头绪，(事实上，观诸过去本人在这项投资上的经验，或许各位的看法要比起我个人来得具参考价值)，截至去年底，我们帐列的特别股投资金额是票面金额的60%(此特别股并没有公开明确的市价)，虽然在此同时，美国航空还有另一项发行在外，除了转换价格之外，其余的条件包含抵押顺位都不如我们的特别股，系以票面金额的82%左右的价位进行交易，而就在我写这份年报的同时，其交易的价格已上涨为票面金额的97%，衷心期盼市场的看法是对的。

Overall, our preferreds have performed well, but that is true only because of one huge winner, Gillette. Leaving aside Gillette, our preferreds as a group have delivered us after-tax returns no more than equal to those we could have earned from the medium-term fixed-income issues that they replaced.

总的来说，我们的特别股投资绩效算是相当不错的了，不过主要的原因还在于压对了吉列特别股这个宝，若扣除吉列不记，我们其它的特别股投资带给我们的税后盈余，大概仅与原先他们所取代的中期固定收益债券的投资报酬率差不了多少。

A Proposed Recapitalization股权重组提案

At the Annual Meeting you will be asked to approve a recapitalization of Berkshire, creating two classes of stock. If the plan is adopted, our existing common stock will be designated as Class A Common Stock and a new Class B Common Stock will be authorized.

今年的股东会将会有一项股权重组提案需要各位进行投票表决，一旦获得通过， Berkshire原来发行的股份，将会被分拆为两种普通股，一种为A级普通股，一种为B级普通股。

Each share of the "B" will have the rights of 1/30th of an "A" share with these exceptions: First, a B share will have 1/200th of the vote of an A share (rather than 1/30th of the vote). Second, the B will not be eligible to participate in Berkshire's shareholder-designated charitable contributions program.

B级普通股拥有A级普通股三十分之一的权利，除了以下两点，第一，B级普通股的投票权只有A级普通股的二百分之一(而不是三十分之一)，第二，B级普通股不能参加Berkshire股东指定捐赠计画。

When the recapitalization is complete, each share of A will become convertible, at the holder's option and at any time, into 30 shares of B. This conversion privilege will not extend in the opposite direction. That is, holders of B shares will not be able to convert them into A shares.

当股权重组完成之后，每一股A级普通股可以依持有人的自由意志在任何时候，选择转换成30股的B级普通股，但反之则不行，也就是说30股的B级普通股不能要求转换成一股的A级普通股。

We expect to list the B shares on the New York Stock Exchange, where they will trade alongside the A stock. To create the shareholder base necessary for a listing - and to ensure a liquid market in the B stock - Berkshire expects to make a public offering for cash of at least $100 million of new B shares. The offering will be made only by means of a prospectus.

跟A级普通股一样，B级普通股也将在纽约证券交易所中挂牌交易，而为了维持挂牌之后的流通性，Berkshire预计将会发行总金额1亿美元以上的B级普通股，整个释股的过程将以透过公开说明书的方式进行。

The market will ultimately determine the price of the B shares. Their price, though, should be in the neighborhood of 1/30th of the price of the A shares.

市场最终将会决定B级普通股的合理价格，当然若无特殊情况，B级普通股将会以A级普通股三十分之一左右的价位进行交易。

Class A shareholders who wish to give gifts may find it convenient to convert a share or two of their stock into Class B shares. Additionally, arbitrage-related conversions will occur if demand for the B is strong enough to push its price to slightly above 1/30th of the price of A.

持有A级普通股的股东若有赠与的计画，将可以很轻易地先将持有的股份转为B级普通股，当然可能也会有一些转换套利方面的交易可能使得B级普通股股价略高于A级普通股股价的三十分之一。

However, because the Class A stock will entitle its holders to full voting rights and access to Berkshire's contributions program, these shares will be superior to the Class B shares and we would expect most shareholders to remain holders of the Class A - which is precisely what the Buffett and Munger families plan to do, except in those instances when we ourselves might convert a few shares to facilitate gifts. The prospect that most shareholders will stick to the A stock suggests that it will enjoy a somewhat more liquid market than the B.

然而，由于A级普通股还是享有完整的投票权以及参与Berkshire股东指定捐赠计画的权利，所以就这方面而言，A级普通股还是比B级普通股来得好，所以我们预期大部分的股东，就像巴菲特与曼格家族一样，还是会选择继续持有A级普通股，除非有股东有赠与的考量时，可能会将少部份的股份进行转换，而由于我们预期大部分会选择维持不变，所以A级普通股的流通性应该会比B级普通股来得高。

There are tradeoffs for Berkshire in this recapitalization. But they do not arise from the proceeds of the offering - we will find constructive uses for the money - nor in any degree from the price at which we will sell the B shares. As I write this - with Berkshire stock at $36,000 - Charlie and I do not believe it undervalued. Therefore, the offering we propose will not diminish the per-share intrinsic value of our existing stock. Let me also put our thoughts about valuation more baldly: Berkshire is selling at a price at which Charlie and I would not consider buying it.

这次的股权重组对Berkshire来说有利有弊，原因不在于发行新股所带来的资金，我们一定可以找到合理的用途，也不在于发行新股的价格，就在我撰写年报的时刻，Berkshire的股价约为每股36,000美元，查理跟我本人都不认为这样的价位过于低估，因此此次发行新股并不会使得公司原本的每股实质价值受到损害，讲的再白一点，以现在的价位而言，查理跟我都不会考虑再加码买进Berkshire的股份。

What Berkshire will incur by way of the B stock are certain added costs, including those involving the mechanics of handling a larger number of shareholders. On the other hand, the stock should be a convenience for people wishing to make gifts. And those of you who have hoped for a split have gained a do-it-yourself method of bringing one about.

当然因为B级普通股的发行，Berkshire公司本身必须承担处理更多股东所带来的股务作业，不过对于那些有赠与计画的股东来说，却变得方便许多，而对于喜欢股票分割的投资人来说，也多了一个自助式分割的管道。

We are making this move, though, for other reasons - having to do with the appearance of expense-laden unit trusts purporting to be low-priced "clones" of Berkshire and sure to be aggressively marketed. The idea behind these vehicles is not new: In recent years, a number of people have told me about their wish to create an "all-Berkshire" investment fund to be sold at a low dollar price. But until recently, the promoters of these investments heard out my objections and backed off.

当然，之所以会有这样的举动还有其它理由，主要是由于目前坊间出现一种模仿Berkshire的信托基金，号称价位低，只要收取部份费用，人人都投资得起，这样的主意并不是首次出现，近几年来，有一些人向我传达想要设立一种所谓的仿Berkshire投资基金，以较低的价位对外发行，不过由于我个人并不赞同这样的做法，所以这些人才没有进一步的举动。

I did not discourage these people because I prefer large investors over small. Were it possible, Charlie and I would love to turn $1,000 into $3,000 for multitudes of people who would find that gain an important answer to their immediate problems.

对于这些人我不会一昧地打压，因为毕竟我们的目标锁定在大额投资人，如果可能，查理跟我当然希望公司的净值可以直接由1,000美元翻个两、三翻立刻变成3,000美元，如此一来大家因为这样的资本利得肯定不会再有其它的意见。

In order to quickly triple small stakes, however, we would have to just as quickly turn our present market capitalization of $43 billion into $129 billion (roughly the market cap of General Electric, America's most highly valued company). We can't come close to doing that. The very best we hope for is - on average - to double Berkshire's per-share intrinsic value every five years, and we may well fall far short of that goal.

为了将这些小筹码成长三倍，我们可能必须让Berkshire的市值从原本的430亿美元，一下子暴增为1,290亿美元(这相当于通用电气-目前股票市场上市值最高的公司)，这根本就不可能办得到，所以我们比较希望的是，平均而言， Berkshire的每股价值每五年能够翻一番，当然要达到这样的目标并不容易。

In the end, Charlie and I do not care whether our shareholders own Berkshire in large or small amounts. What we wish for are shareholders of any size who are knowledgeable about our operations, share our objectives and long-term perspective, and are aware of our limitations, most particularly those imposed by our large capital base.

总而言之，查理跟我不太在乎我们的股东们拥有公司股份的多寡，我们衷心期盼的是不论是大、小股东，都能了解我们的营运模式、与我们拥有共同的目标与长期投资理念，同时也能够明暸我们受到的限制，尤其是股本过大本身加诸予我们的负荷。

The unit trusts that have recently surfaced fly in the face of these goals. They would be sold by brokers working for big commissions, would impose other burdensome costs on their shareholders, and would be marketed en masse to unsophisticated buyers, apt to be seduced by our past record and beguiled by the publicity Berkshire and I have received in recent years. The sure outcome: a multitude of investors destined to be disappointed.

这些基金最近纷纷以这样的号召浮上台面，通常它们都是透过经纪人以高额佣金销售，所以加入的投资人必须背负相当沉重的成本，而一些不知情的投资人，可能冲着Berkshire过去的成绩以及查理与我本人近年来的高知名度而受骗上当，最后的结果肯定是︰投资大众注定会大失所望。

Through our creation of the B stock - a low-denomination product far superior to Berkshire-only trusts - we hope to make the clones unmerchandisable.

所以透过B级普通股的诞生-一种低面额但远优于仿Berkshire基金的产物，我们希望可以让那些模仿的假货无法在市场上生存。

But both present and prospective Berkshire shareholders should pay special attention to one point: Though the per-share intrinsic value of our stock has grown at an excellent rate during the past five years, its market price has grown still faster. The stock, in other words, has outperformed the business.

不过我们还是必须再次提醒Berkshire现有以及未来可能的股东，虽然在过去五年间本公司的实质价值以相当快速的速度成长，不过公司本身的股价涨升速度却有过之而无不及，换句话说，在这期间股票的市价表现远过于公司本业的表现。

That kind of market overperformance cannot persist indefinitely, neither for Berkshire nor any other stock. Inevitably, there will be periods of underperformance as well. The price volatility that results, though endemic to public markets, is not to our liking. What we would prefer instead is to have the market price of Berkshire precisely track its intrinsic value. Were the stock to do that, every shareholder would benefit during his period of ownership in exact proportion to the progress Berkshire itself made in the period.

这样的情况不太可能无止尽的持续下去，不管是Berkshire或是其它股票都一样，无可避免的，总有一天股价的表现会逊于本业的表现，我们不太愿意见到公司的股价受到股票市场影响而剧烈波动，我们比较喜欢的模式是Berkshire的股价能够与其所代表的实质价值一致，如此一来我们就可以确保每位股东在持有本公司股份的期间所获得的报酬皆能与Berkshire本身事业的发展状况一致。

Obviously, the market behavior of Berkshire's stock will never conform to this ideal. But we will come closer to this goal than we would otherwise if our present and prospective shareholders are informed, business-oriented and not exposed to high-commission salesmanship when making their investment decisions. To that end, we are better off if we can blunt the merchandising efforts of the unit trusts - and that is the reason we are creating the B stock.

很显然的Berkshire的股价不可能以这样理想的方式演变，不过若是我们能够确定现有与未来的股东在做投资决策时，能得到充分的信息、以公司发展为导向且不会受到高佣金的营业员所引诱，我们就越有可能达到这样的目标，基于这样的前提，我们必须降低那些想要推销仿Berkshire基金的动机，这也是我们决定推出B级普通股的主要原因。

We look forward to answering your questions about the recapitalization at the Annual Meeting.

当然若大家对于本次股权重组还有任何问题，欢迎在股东年会上提出讨论。

Miscellaneous其它事项

Berkshire isn't the only American corporation utilizing the new, exciting ABWA strategy. At about 1:15 p.m. on July 14, 1995, Michael Eisner, CEO of The Walt Disney Company, was walking up Wildflower Lane in Sun Valley. At the same time, I was leaving a lunch at Herbert Allen's home on that street to meet Tom Murphy, CEO of Cap Cities/ABC, for a golf game.

Berkshire并不是第一家采用新颖有趣的ABWA走动式并购策略的美国企业， 1995年7月14日下午1点15分，当时华德迪士尼的总裁Michael Eisner正在Sun Valley的野花大道上行走，在此同时，我刚好从同一条街上Herber Allen家中一场午宴离开，赶赴与资本城/ABC总裁Tom Murphy的一场高尔夫球会。

That morning, speaking to a large group of executives and money managers assembled by Allen's investment bank, Michael had made a brilliant presentation about Disney, and upon seeing him, I offered my congratulations. We chatted briefly - and the subject of a possible combination of Disney and Cap Cities came up. This wasn't the first time a merger had been discussed, but progress had never before been made, in part because Disney wanted to buy with cash and Cap Cities desired stock.

就在当天早上，面对由Allen的投资银行召集一大群企业总裁与基金经理人， Michael做了一场有关迪士尼相当精彩的演讲，会后在街上遇到他，于是我上前向他致意，我们做了短暂的交谈，聊到迪士尼与资本城进行合并的可能性，这并不是第一次讨论有关合并的可能，先前之所以一直没有进展，一部份的原因是由于迪士尼希望用现金进行交易，而资本城想要拿股票。

Michael and I waited a few minutes for Murph to arrive, and in the short conversation that ensued, both Michael and Murph indicated they might bend on the stock/cash question. Within a few weeks, they both did, at which point a contract was put together in three very busy days.

Michael跟我花了几分钟等候Murph的到来，在接下来短暂的会谈后，双方同意在现金/股票的问题上互做让步，几个星期后，双方达成协议，而经过连续三天马不停蹄的谈判后，终于拟订了合并契约。

The Disney/Cap Cities deal makes so much sense that I'm sure it would have occurred without that chance encounter in Sun Valley. But when I ran into Michael that day on Wildflower Lane, he was heading for his plane, so without that accidental meeting the deal certainly wouldn't have happened in the time frame it did. I believe both Disney and Cap Cities will benefit from the fact that we all serendipitously met that day.

我认为迪士尼与资本城的合并案是天造地设的一对，即使没有那天在Sun Valley的巧遇，双方终究还是会结合，不过要不是那天刚好我在野花大道碰到正要赶飞机的Michael，整个合并案可能不会那么快地顺利完成，不可讳言的，迪士尼与资本城都将因为我们那天的巧遇而受惠良多。

It's appropriate that I say a few words here about Murph. To put it simply, he is as fine an executive as I have ever seen in my long exposure to business. Equally important, he possesses human qualities every bit the equal of his managerial qualities. He's an extraordinary friend, parent, husband and citizen. In those rare instances in which Murph's personal interests diverged from those of shareholders, he unfailingly favored the owners. When I say that I like to be associated with managers whom I would love to have as a sibling, in-law, or trustee of my will, Murph is the exemplar of what I mean.

在这里我特别要提一下Murph，简单的说，他是我在投资生涯中，遇到最好的经理人之一，同时除了优秀的管理特质之外，他也拥有同等的人格特质，他是一位杰出的朋友、父亲、丈夫与公民，许多时候当其个人利益与股东利益相冲突时，他毫不犹豫地会选择后者，每当我提到我喜欢与那种我希望他们能够成为我的子孙、女婿或遗嘱执行人的经理人共事时，Murph就是我所能引用的最佳典范。

If Murph should elect to run another business, don't bother to study its value - just buy the stock. And don't later be as dumb as I was two years ago when I sold one-third of our holdings in Cap Cities for $635 million (versus the $1.27 billion those shares would bring in the Disney merger).

如果Murph决定另创事业，不必费心去研究其可行性，闭着眼睛投资就对了，而且绝对不要笨到像我前年一样把资本城三分之一的持股以6.35亿美元卖掉，这批股票在与迪士尼合并后，价值超过12.7亿美元。

About 96.3% of all eligible shares participated in Berkshire's 1995 shareholder-designated contributions program. Contributions made were $11.6 million and 3,600 charities were recipients. A full description of the shareholder-designated contributions program appears on pages 54-55.

大约有96.3%的有效股权参与1995年的股东指定捐赠计划，总计约1,160万美元捐出的款项分配给3,600家慈善机构，详细的名单参阅附录。

Every year a few shareholders miss out on the program because they don't have their shares registered in their own names on the prescribed record date or because they fail to get their designation form back to us within the 60-day period allowed. That second problem pained me especially this year because two good friends with substantial holdings missed the deadline. We had to deny their requests to be included because we can't make exceptions for some shareholders while refusing to make them for others.

每年都有一小部份的股东由于没有将股份登记在本人的名下，或是没能在60天的期限内，将指定捐赠的表格送回给我们，而没办法参加我们的指定捐赠计画，尤其是第二个原因让我感到特别头痛，因为今年有二位Berkshire大股东同时也是我个人的好朋友，未能在截止日以前将表格送达，我们必须忍痛将他们的指定捐赠剔除，因为我们不可能在拒绝其它不符合规定股东的同时，还破例让他们参与。

To participate in future programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 1996, will be ineligible for the 1996 program. When you get the form, return it promptly so that it does not get put aside or forgotten.

想要参加这项计画者，请必须拥有A级普通股，同时确定您的股份是登记在自
己而非股票经纪人或保管银行的名下，同时必须在1996年8月31日之前完成
登记，才有权利参与1996年的捐赠计画，当你收到表格后，请立即填写后寄回，
以免被丢在一旁给忘记了。

When it comes to our Annual Meetings, Charlie and I are managerial oddballs: We thoroughly enjoy the event. So come join us on Monday, May 6. At Berkshire, we have no investor relations department and don't use financial analysts as a channel for disseminating information, earnings "guidance," or the like. Instead, we prefer direct manager-to-owner communication and believe that the Annual Meeting is the ideal place for this interchange of ideas. Talking to you there is efficient for us and also democratic in that all present simultaneously hear what we have to say.

每次提到年度股东会，查理跟我就变成啰唆的老头，我们实在是很喜欢这场盛会，所以请大家务必在五月六日星期一大驾光临，在Berkshire我们没有投资人公关部门，也从不依赖股票分析师当作信息沟通的桥梁，盈余的预估解说等等，相反地，我们比较喜欢股东与经理人直接面对面的沟通，而且相信年度股东会正是观念沟通的最佳场所，与各位一谈对我们来说一点也不会浪费时间，同时也让各位以相当民主的方式听到我们想要跟各位传达的理念。

Last year, for the first time, we had the Annual Meeting at the Holiday Convention Centre and the logistics seemed to work. The ballroom there was filled with about 3,200 people, and we had a video feed into a second room holding another 800 people. Seating in the main room was a little tight, so this year we will probably configure it to hold 3,000. This year we will also have two rooms for the overflow.

去年我们首度在Holiday会议中心召开年度股东会，当初预定的准备动作事后看起来相当正确，中央大厅坐满了3,200个人，同时藉由视听器材的辅助，旁边的会议室还有800人得以参与，大厅显得有点拥挤，所以今年我们打算只排3,000个座位，同时另外会再准备二间会议室以容纳更多的人参与。

All in all, we will be able to handle 5,000 shareholders. The meeting will start at 9:30 a.m., but be warned that last year the main ballroom was filled shortly after 8:00 a.m.

会场总共可以容纳5,000人，会议预定在9点30分开始，不过大家可能要早一点到，因为去年中央大厅在8点过后不久便已座无虚席。

Shareholders from 49 states attended our 1995 meeting - where were you, Vermont? - and a number of foreign countries, including Australia, Sweden and Germany, were represented. As always, the meeting attracted shareholders who were interested in Berkshire's business - as contrasted to shareholders who are primarily interested in themselves - and the questions were all good. Charlie and I ate lunch on stage and answered questions for about five hours.

来自49个州的股东参与1995年的年度股东会，你从哪里来，是佛蒙特州吗? 另外还有一些股东来自海外地区，包含澳洲、瑞典与德国等国家，一如往常，年会吸引了许多真正关心公司发展的股东参加，与其它只关心自己利益别的公司的股东相较有很大的不同，所提出的问题也相当好，查理跟我花了五个多小时回答问题，连午餐都直接在台上解决。

We feel that if owners come from all over the world, we should try to make sure they have an opportunity to ask their questions. Most shareholders leave about noon, but a thousand or so hardcore types usually stay to see whether we will drop. Charlie and I are in training to last at least five hours again this year.

因为我们认为股东们从世界各地远道而来，所以总是希望让他们都有机会可以发问，大部分的股东在中午过后就纷纷离席，但还是有一千多名比较死忠的股东想要瞧瞧我们到底能够撑多久，今年查理跟我希望尽量努力能够像去年那样至少撑五个小时以上。

We will have our usual array of Berkshire products at the meeting and this year will add a sales representative from GEICO. At the 1995 meeting, we sold 747 pounds of candy, 759 pairs of shoes, and over $17,500 of World Books and related publications. In a move that might have been dangerous had our stock been weak, we added knives last year from our Quikut subsidiary and sold 400 sets of these. (We draw the line at soft fruit, however.) All of these goods will again be available this year. We don't consider a cultural event complete unless a little business is mixed in.

依照惯例，我们在会场上展示了一些Berkshire的产品，今天将会新增一位GEICO保险公司的业务代表，去年股东会总计卖出了747磅的糖果、759双的鞋子以及价值超过17,500美元的世界百科全书与相关出版品，另外我们临时还增加了旗下子公司Quikut所生产的小刀，总计卖出400把(幸好去年公司股价表现不错，否则这可能是相当危险的一项举动)，今年这些商品将再度与会，我觉得这项盛会总要带点商业气息才算完整圆满。

Because we expect a large crowd for the meeting, we recommend that you promptly get both plane and hotel reservations. Those of you who like to be downtown (about six miles from the Centre) may wish to stay at the Radisson Redick Tower, a small (88 rooms) but nice hotel, or at the much larger Red Lion Hotel a few blocks away. In the vicinity of the Centre are the Holiday Inn (403 rooms), Homewood Suites (118 rooms) and Hampton Inn (136 rooms). Another recommended spot is the Marriott, whose west Omaha location is about 100 yards from Borsheim's and a ten-minute drive from the Centre. There will be buses at the Marriott that will leave at 7:30, 8:00 and 8:30 for the meeting and return after it ends.

由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，想要住在市中心的人(距离会场约6英哩)可以选择拥有88个房间的一家小旅馆-Radisson-Redick旅馆或是旁边较大一点的Red Lion旅馆，至于会场附近则有Holiday Inn (403个房间)、Homewood Suites (118个房间)或Hampton Inn (136个房间)，另一个推荐的旅馆是位在奥玛哈西区的Marriott，离波仙珠宝店约100公尺，距离会场约10分钟的车程，届时在哪里将会有巴士分7:30、8:00跟8:30三班，接送大家往返股东会会场。

An attachment to our proxy material explains how you can obtain the card you will need for admission to the meeting. A good-sized parking area is available at the Centre, while those who stay at the Holiday Inn, Homewood Suites and Hampton Inn will be able to walk to the meeting. As usual, we will have buses to take you to the Nebraska Furniture Mart and Borsheim's after the meeting and to take you from there to hotels or the airport later.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，当天会场有相当大的停车场，住在Holiday Inn 、Homewood Suites或Hampton Inn的人可以直接走路过来开会，一如往年，会后我们备有巴士带大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场。

NFM's main store, on its 64-acre site about two miles north of the Centre, is open from 10 a.m. to 9 p.m. on weekdays, 10 a.m. to 6 p.m. on Saturdays, and noon to 6 p.m. on Sundays. Rose Blumkin - "Mrs. B" - is now 102, but will be hard at work in Mrs. B's Warehouse. She was honored in November at the opening of The Rose, a classic downtown theater of the 20's that has been magnificently restored, but that would have been demolished had she not saved it. Ask her to tell you the story.

占地60英亩的NFM主馆距离会场约2英哩远，营业时间平日从早上10点到下午9点，星期六从早上10点到下午6点，星期日则从中午开到下午6点， Rose Blumkin-B太太今年高龄102岁，不过每天还是会到B太太仓库工作，去年十一月她应邀到Rose表演中心担任开幕剪彩嘉宾，原本是20年代老旧的戏院在B太太大力的支持下得以重新修复，记得问她有关这一段的故事。

Borsheim's normally is closed on Sunday but will be open for shareholders and their guests from 10 a.m. to 6 p.m. on May 5th. Additionally, we will have a special opening for shareholders on Saturday, the 4th, from 6 p.m. to 9 p.m. Last year, on Shareholders Day, we wrote 1,733 tickets in the six hours we were open - which is a sale every 13 seconds. Remember, though, that records are made to be broken.

平时礼拜天不营业的波仙珠宝，特地在五月五日股东会当天会为股东与来宾开放，从中午开到下午6点，此外今年在五月四日星期六股东会的前一晚从下午6点到晚上9点，还将特地为股东开放，去年股东会当天，在短短六个小时的营业时间内，我们总共收到1,733张订单，等于每13秒就有一笔生意成交，各位请记得记录本来就是用来打破的。

At Borsheim's, we will also have the world's largest faceted diamond on display. Two years in the cutting, this inconspicuous bauble is 545 carats in size. Please inspect this stone and let it guide you in determining what size gem is appropriate for the one you love.

在波仙珠宝店，将会展出一颗全世界最大的平面钻石，花费两年的时间切割，这颗不甚起眼的玩意儿总共有545克拉重，请大家好好看看这一颗石头，然后再决定你应该为你心爱的人买一颗多大的宝石。

On Saturday evening, May 4, there will be a baseball game at Rosenblatt Stadium between the Omaha Royals and the Louisville Redbirds. I expect to make the opening pitch - owning a quarter of the team assures me of one start per year - but our manager, Mike Jirschele, will probably make his usual mistake and yank me immediately after. About 1,700 shareholders attended last year's game. Unfortunately, we had a rain-out, which greatly disappointed the many scouts in the stands. But the smart ones will be back this year, and I plan to show them my best stuff.

在前一天5月4日，星期六晚上，Rosenblatt体育馆将会有一场奥玛哈皇家队对路易维里红鸟队的比赛，我准备在开幕时担任开球工作，拥有该队四分之一的所有权确保我可以每年担任一次先发，不过一如往常我们的球队经理-Mike大概都会做出错误的决定，很快地就把我拉下场，去年大约有1,700位股东出席这项盛会，可惜的是当晚因雨停赛，使得旁边的球僮失望不已，今年好戏将会重新上演，而我也准备将拿手绝活展现出来。

Our proxy statement will include information about obtaining tickets to the game. We will also offer an information packet this year listing restaurants that will be open on Sunday night and describing various things that you can do in Omaha on the weekend.

股东会资料将告诉大家如何取得入场的门票，同时我们也会提供星期天晚上会开张的餐厅信息，同时列出假日期间在奥玛哈你可以从事的活动介绍。

For years, I've unsuccessfully tried to get my grade school classmate, "Pal" Gorat, to open his steakhouse for business on the Sunday evening preceding the meeting. But this year he's relented. Gorat's is a family-owned enterprise that has thrived for 52 years, and if you like steaks, you'll love this place. I've told Pal he will get a good crowd, so call Gorat's at 402-551-3733 for a reservation. You'll spot me there - I'll be the one eating the rare T-bone with a double order of hash browns.

多年来我一直无法成功说服我的小学同学-Gorat所开的餐厅在年会当天晚上开门营业，不过今年他终于屈服，Gorat's是一家有52年历史的老牌餐厅，如果你爱吃牛排，包准你会爱上这个地方，我已向Gorat拍胸脯保证一定会有很多顾客上门，所以记得打电话(402-551-3733)去预订，我保证大家一定可以在那里看到我，通常我会点一大份丁骨牛排加上双份的肉丸。

一九九六

Our gain in net worth during 1996 was $6.2 billion, or 36.1%. Per-share book value, however, grew by less, 31.8%, because the number of Berkshire shares increased: We issued stock in acquiring FlightSafety International and also sold new Class B shares.* Over the last 32 years (that is, since present management took over) per-share book value has grown from $19 to $19,011, or at a rate of 23.8% compounded annually.　

1996年本公司的净值成长了36.1%，约62亿美元，不过每股净值仅成长了31.8%，原因在于去年我们以发行新股的方式并购了国际飞安公司，同时另外还追加发行了一些B级普通股*，总计过去32年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的19,011美元，年复合成长率约为23.8%。

* Each Class B share has an economic interest equal to 1/30th of that possessed by a Class A share, which is the new designation for the only stock that Berkshire had outstanding before May 1996. Throughout this report, we state all per-share figures in terms of"Class A equivalents," which are the sum of the Class A shares outstanding and 1/30th of the Class B shares outstanding.

* B级普通股拥有A级普通股三十分之一的权利，这是从1996年五月开始Berkshire新增的股份类型，在年报中所谓的每股数字系以A级普通股约当数为基础，亦即全部流通在外的A级普通股数加上流通在外的B级普通股数的三十分之一。

For technical reasons, we have restated our 1995 financial statements, a matter that requires me to present one of my less-than-thrilling explanations of accounting arcana. I'll make it brief.

基于技术性原因，我们必须将1995年的财务报表予以重编，这使我能够再度展现令人震摄的会计密技，相信我，我会试着长话短说。

The restatement was required because GEICO became a wholly-owned subsidiary of Berkshire on January 2, 1996, whereas it was previously classified as an investment. From an economic viewpoint - taking into account major tax efficiencies and other benefits we gained - the value of the 51% of GEICO we owned at year-end 1995 increased significantly when we acquired the remaining 49% of the company two days later. Accounting rules applicable to this type of "step acquisition," however, required us to write down the value of our 51% at the time we moved to 100%. That writedown - which also, of course, reduced book value - amounted to $478.4 million. As a result, we now carry our original 51% of GEICO at a value that is both lower than its market value at the time we purchased the remaining 49% of the company and lower than the value at which we carry that 49% itself.

重编的原因是因为原先被列为被投资的GEICO保险在1996年1月2日正式成为Berkshire 100%持有的子公司，从经济观点来看，考量可观的租税优惠与其它优点，我们原先在1995年底持有的51%的GEICO股权，其价值在二天后我们取得剩余49%股权之后大幅增加，然而对于这种渐进式购并，一般公认会计原则却要求我们必须在取得100%股权时，将原因帐上51%的成本反向予以调减，使得帐面价值减少为4.784亿美元，这结果使得原来51%股权的帐面价值不但远低于后来49%股权的取得市价，也低于我们持有后来这49%股权的帐面价值。

There is an offset, however, to the reduction in book value I have just described: Twice during 1996 we issued Berkshire shares at a premium to book value, first in May when we sold the B shares for cash and again in December when we used both A and B shares as part-payment for FlightSafety. In total, the three non-operational items affecting book value contributed less than one percentage point to our 31.8% per-share gain last year.

不过除了刚刚提到净值的减少之外，我们在1996年两度溢价发行股份，第一次是在五月办理现金增资发行B级普通股，第二次是在十二月发行A级与B级普通股，以购并国际飞安公司，总的来说，以上三项非营业项目对于去年本公司31.8%的每股净值成长率的净影响还不到1%。

I dwell on this rise in per-share book value because it roughly indicates our economic progress during the year. But, as Charlie Munger, Berkshire's Vice Chairman, and I have repeatedly told you, what counts at Berkshire is intrinsic value, not book value. The last time you got that message from us was in the Owner's Manual, sent to you in June after we issued the Class B shares. In that manual, we not only defined certain key terms - such as intrinsic value - but also set forth our economic principles.

今年我之所以一再强调每股净值，原因在于它大约就等于我们在去年的实质进展，不过就像是查理跟我一再提醒各位的，对Berkshire来说，真正重要的不是帐面价值，而是实质价值，最近一次跟各位提到是在今年六月本公司发行B级普通股时，在送给各位的股东手册当中，我们不但对于一些名词予以定义，诸如实质价值等，同时也揭露了我们的企业宗旨。

For many years, we have listed these principles in the front of our annual report, but in this report, on pages 58 to 67, we reproduce the entire Owner's Manual. In this letter, we will occasionally refer to the manual so that we can avoid repeating certain definitions and explanations. For example, if you wish to brush up on "intrinsic value," see pages 64 and 65.

多年来，我们在年报前头揭示这些宗旨，在这里我们偶尔也会提到股东手册，这样我们就可以不必再重复解释一些常用的名词，比如说如果你想要了解一下什么叫实质价值，建议大家可以再翻翻那本手册的第64、65页。

Last year, for the first time, we supplied you with a table that Charlie and I believe will help anyone trying to estimate Berkshire's intrinsic value. In the updated version of that table, which follows, we trace two key indices of value. The first column lists our per-share ownership of investments (including cash and equivalents) and the second column shows our per-share earnings from Berkshire's operating businesses before taxes and purchase-accounting adjustments but after all interest and corporate overhead expenses. The operating-earnings column excludesall dividends, interest and capital gains that we realized from the investments presented in the first column. In effect, the two columns show what Berkshire would have reported had it been broken into two parts.

从去年开始我们首度提供给各位一张查理跟我本人认为可以帮助大家估计Berkshire公司实质价值的表格，在下面这张经过更新资料的表上，我们可以发现到两项与价值相关的重要指针，第一栏是我们平均每股持有的投资金额(包含现金与约当现金)，第二栏则是每股在扣除利息与营业费用之后，来自本业的营业利益(但未扣除所得税与购买法会计调整数)，当然后者已经扣除了所有来自第一栏投资所贡献的股利收入、利息收入与资本利得，事实上，若是把Berkshire拆成两部份的话，这两栏数字将分别代表这两个部门的损益绩效。

Pre-tax Earnings Per Share Investments Excluding All Income from Year Per Share Investments

1965
 
1975
 
1985
 
1995
 
1996
 
Annual Growth Rate, 1965-95
 
One-Year Growth Rate, 1995-96
 

$ 4
 
159
 
2,443
 
22,088
 
28,500
 
33.4%
 
29.0%
 

$ 4.08
 
(6.48)
 
18.86
 
258.20
 
421.39
 
14.7%
 
63.2%
 

As the table tells you, our investments per share increased in 1996 by 29.0% and our non-investment earnings grew by 63.2%. Our goal is to keep the numbers in both columns moving ahead at a reasonable (or, better yet, unreasonable) pace.

从这张表大家可以看出，我们1996年的每股投资金额增加了29%，而非投资的本业盈余则增加了63.2%，我们的目标是让这两栏的数字以合理的速度稳定地成长，当然若是偶尔能以不合理的速度暴增也不错。

Our expectations, however, are tempered by two realities. First, our past rates of growth cannot be matched nor even approached: Berkshire's equity capital is now large - in fact, fewer than ten businesses in America have capital larger - and an abundance of funds tends to dampen returns. Second, whatever our rate of progress, it will not be smooth: Year-to-year moves in the first column of the table above will be influenced in a major way by fluctuations in securities markets; the figures in the second column will be affected by wide swings in the profitability of our catastrophe-reinsurance business.

不过这样的预期可能会受到两项现实的因素所干扰，首先，我们很难再达到或接近过去那样高的成长速度，原因在于Berkshire现在的资本规模实在是太庞大了，事实上以我们现在的资本规模已经可以排在全美企业的前十名，过多的浮滥资金一定会影响到整体的报酬率，第二点，不管成长的速度如何，铁定很难以平稳的速度增加，第一栏的数字将很容易随着股市大环境上下波动，第二栏的数字则会跟着超级灾害再保业务获利的不稳定变动而变化。

In the table, the donations made pursuant to our shareholder-designated contributions program are charged against the second column, though we view them as a shareholder benefit rather than as an expense. All other corporate expenses are also charged against the second column. These costs may be lower than those of any other large American corporation: Our after-tax headquarters expense amounts to less than two basis points (1/50th of 1%) measured against net worth. Even so, Charlie used to think this expense percentage outrageously high, blaming it on my use of Berkshire's corporate jet, The Indefensible. But Charlie has recently experienced a "counter-revelation": With our purchase of FlightSafety, whose major activity is the training of corporate pilots, he now rhapsodizes at the mere mention of jets.

在这张表中，股东指定捐赠的款项被列为第二栏的减项，虽然我们将之视为股东的福利而非支出，企业其它的支出同样也被放在第二栏当作减项，这些开支远低于其它美国大企业的平均水准，每年我们企业总部的费用占净值的比率大约不到万分之五，即便如此查理还是认为这样的比率高得离谱，我想主要要怪罪于我个人所使用的Berkshire企业专机-无可辩解号，不过最近在我们买下国际飞安-这家专门负责训练飞行的公司之后，查理的态度有了180度的转变，现在只要一提到飞机他就狂乐不已。

Seriously, costs matter. For example, equity mutual funds incur corporate expenses - largely payments to the funds' managers - that average about 100 basis points, a levy likely to cut the returns their investors earn by 10% or more over time. Charlie and I make no promises about Berkshire's results. We do promise you, however, that virtually all of the gains Berkshire makes will end up with shareholders. We are here to make money with you, not off you.

认真的说，控制成本开支绝对重要，举例来说很多共同基金每年的营业费用大多在2%上下，这等于间接剥削了投资人将近10%的投资报酬，虽然查理跟我不敢向各位保证我们的投资绩效，但我们却可以向各位打包票，Berkshire所赚的每一分钱一定会分文不差地落入股东的口袋里，我们是来帮各位赚钱，而不是帮各位花钱的。

The Relationship of Intrinsic Value to Market Price实质价值与股票市价的关系

In last year's letter, with Berkshire shares selling at $36,000, I told you: (1) Berkshire's gain in market value in recent years had outstripped its gain in intrinsic value, even though the latter gain had been highly satisfactory; (2) that kind of overperformance could not continue indefinitely; (3) Charlie and I did not at that moment consider Berkshire to be undervalued.

去年当Berkshire的股价约在36,000美元时，我曾向各位报告过(1)Berkshire这几年的股价表现远超越实质价值，虽然后者的成长幅度也相当令人满意，(2)这样的情况不可能无限制地持续下去，(3)查理跟我不认为当时Berkshire的价值有被低估的可能性。

Since I set down those cautions, Berkshire's intrinsic value has increased very significantly - aided in a major way by a stunning performance at GEICO that I will tell you more about later - while the market price of our shares has changed little. This, of course, means that in 1996 Berkshire's stock underperformed the business. Consequently, today's price/value relationship is both much different from what it was a year ago and, as Charlie and I see it, more appropriate.

自从我下了这些批注之后，Berkshire的实质价值又大幅地增加了，主要的原因在于GEICO惊人的表现，(关于这点在后面还会向大家详细报告)，而在此同时Berkshire的股价却维持不动，这代表在1996年Berkshire的实质价值表现优于股价，也就是说，在今日Berkshire的价格/价值比比起一年以前而言，又有很大的不同，这同时也是查理跟我认为比较合理的情况。

Over time, the aggregate gains made by Berkshire shareholders must of necessity match the business gains of the company. When the stock temporarily overperforms or underperforms the business, a limited number of shareholders - either sellers or buyers - receive outsized benefits at the expense of those they trade with. Generally, the sophisticated have an edge over the innocents in this game.

就长期而言，Berkshire股东的整体利得一定会与企业经营的获利一致，当公司股价的表现暂时优于或劣于企业经营时，少部份的股东-不管是买进的人或是卖出的人，将会因为做出这样的举动而从交易的对方身上占到一些便宜，通常来说，都是老经验的一方在这场游戏中占上风。

Though our primary goal is to maximize the amount that our shareholders, in total, reap from their ownership of Berkshire, we wish also to minimize the benefits going to some shareholders at the expense of others. These are goals we would have were we managing a family partnership, and we believe they make equal sense for the manager of a public company. In a partnership, fairness requires that partnership interests be valued equitably when partners enter or exit; in a public company, fairness prevails when market price and intrinsic value are in sync. Obviously, they won't always meet that ideal, but a manager - by his policies and communications - can do much to foster equity.

虽然我们主要的目标是希望让Berkshire的股东经由持有公司所有权所获得的利益极大化，但在此同时我们也期望能让一些股东从其它股东身上所占到的便宜能够极小化，我想这是一般人在经营家族企业时相当重视的，不过我们相信这也适用在上市公司的经营之上，对合伙企业来说，合伙权益在合伙人加入或退出时必须能够以合理的方式评量，才能维持公平，同样地，对于上市公司来说，惟有让公司的股价与实质价值一致，公司股东的公平性才得以维持，当然很明显，这样理想的情况很难一直维持，不过身为公司经理人可以透过其政策与沟通的方式来大力维持这样的公平性。

Of course, the longer a shareholder holds his shares, the more bearing Berkshire's business results will have on his financial experience - and the less it will matter what premium or discount to intrinsic value prevails when he buys and sells his stock. That's one reason we hope to attract owners with long-term horizons. Overall, I think we have succeeded in that pursuit. Berkshire probably ranks number one among large American corporations in the percentage of its shares held by owners with a long-term view.

当然股东持有股份的时间越长，那么Berkshire本身的表现与他的投资经验就会越接近，而他买进或卖出股份时的价格相较于实质价值是折价或溢价的影响程度也就越小，这也是为什么我们希望能够吸引具有长期投资意愿的股东加入的原因之一，总的来说，我认为就这点而言，我们算是做的相当成功，Berkshire大概是所有美国大企业中拥有最多具长期投资观点股东的公司。

Acquisitions of 19961996年的并购案

We made two acquisitions in 1996, both possessing exactly the qualities we seek - excellent business economics and an outstanding manager.

我们在1996年进行了两件并购案，两者皆拥有我们想要的特质-那就是绝佳的竞争优势与优秀的经理人。

The first acquisition was Kansas Bankers Surety (KBS), an insurance company whose name describes its specialty. The company, which does business in 22 states, has an extraordinary underwriting record, achieved through the efforts of Don Towle, an extraordinary manager. Don has developed first-hand relationships with hundreds of bankers and knows every detail of his operation. He thinks of himself as running a company that is "his," an attitude we treasure at Berkshire. Because of its relatively small size, we placed KBS with Wesco, our 80%-owned subsidiary, which has wanted to expand its insurance operations.

第一桩购并案是堪萨斯银行家保险-从字面上可知，这是一家专门提供银行业者保险的保险公司，在全美22个州从事相关业务，拥有相当不错的承保记录，全仰赖Don Towle这位杰出的经理人的努力，Don与上百位银行家皆保持良好的关系，而且也了解他所从事业务的每一项细节，那种感觉就好象是在经营"自己"的事业一样，这种精神是Berkshire最欣赏的，由于它的规模不太大，同时正好Berkshire 持有80%股权的Wesco有意拓展保险事业，所以我们决定把它摆在Wesco之下成为其子公司。

You might be interested in the carefully-crafted and sophisticated acquisition strategy that allowed Berkshire to nab this deal. Early in 1996 I was invited to the 40th birthday party of my nephew's wife, Jane Rogers. My taste for social events being low, I immediately, and in my standard, gracious way, began to invent reasons for skipping the event. The party planners then countered brilliantly by offering me a seat next to a man I always enjoy, Jane's dad, Roy Dinsdale - so I went.

大家或许会对我们这次精心设计的购并计画感到兴趣，在1996年初我受邀参加侄媳妇Jane 40岁的生日宴会，由于我个人对于社交活动通常不太感兴趣，所以很自然地我按照惯例想出许多理由以婉拒这项邀请，不过对方显然有备而来，特别将我安排在另外一位我极有兴趣打交道的对象-Roy Dinsdale也就是Jane的父亲，此举使得我无法拒绝而欣然赴会。

The party took place on January 26. Though the music was loud - Why must bands play as if they will be paid by the decibel? - I just managed to hear Roy say he'd come from a directors meeting at Kansas Bankers Surety, a company I'd always admired. I shouted back that he should let me know if it ever became available for purchase.

生日宴会在1月26日举行，虽然当时现场音乐震耳欲聋(我实在搞不懂为何乐队总是要弹得那么大声，难道他们的出场费是按照分贝数计算的吗?)，不过我还是听到Roy说他刚参加完堪萨斯银行家保险的董事会，这是我一直相当欣赏的一家公司，我大声地响应他说，如果这家公司有意出售的话，记得一定要通知我。

On February 12, I got the following letter from Roy: "Dear Warren: Enclosed is the annual financial information on Kansas Bankers Surety. This is the company that we talked about at Janie's party. If I can be of any further help, please let me know." On February 13, I told Roy we would pay $75 million for the company - and before long we had a deal. I'm now scheming to get invited to Jane's next party.

2月12日我收到一封Roy的来函，上面写到：亲爱的华伦，随函附送一份堪萨斯银行家保险的年度财务报表，就是上次在Janie的生日宴会上提到的那一家公司，如果你有任何需要，请务必让我知道。2月13日，我告诉Roy愿意出7,500万美元买下这家公司，不久之后，整个交易就搞定，现在的我正盘算明年还要再参加Jane的生日宴会。

Our other acquisition in 1996 - FlightSafety International, the world's leader in the training of pilots - was far larger, at about $1.5 billion, but had an equally serendipitous origin. The heroes of this story are first, Richard Sercer, a Tucson aviation consultant, and second, his wife, Alma Murphy, an ophthalmology graduate of Harvard Medical School, who in 1990 wore down her husband's reluctance and got him to buy Berkshire stock. Since then, the two have attended all our Annual Meetings, but I didn't get to know them personally.

1996年发生的另一件购并案，全世界最大的飞行员训练公司-国际飞安公司，其规模比起前一个案子要大得多了，总金额高达15亿美元，不过这个案子发生的过程一样充满戏剧性，本案的功臣首推Richard Sercer-他是塔克森市的飞行顾问，当然还要归功于他的妻子-Alma Murphy，哈佛医学院眼科学系毕业的她好不容易在1990年说服她的丈夫买进Berkshire的股份，而且在那之后每年都到奥玛哈参加我们的股东会，只是我一直没有机会与他们认识。

Fortunately, Richard had also been a long-time shareholder of FlightSafety, and it occurred to him last year that the two companies would make a good fit. He knew our acquisition criteria, and he thought that Al Ueltschi, FlightSafety's 79-year-old CEO, might want to make a deal that would both give him a home for his company and a security in payment that he would feel comfortable owning throughout his lifetime. So in July, Richard wrote Bob Denham, CEO of Salomon Inc, suggesting that he explore the possibility of a merger.

碰巧的是，Richard同时也是国际飞安公司长期投资的股东，刚好在去年他认为这两家公司应该有机会可以做一个结合，他相当了解Berkshire购并公司的标准，同时也知道国际飞安79岁的总裁-Al Ueltschi想要为自己的公司找一个理想的归宿，以为自己的股权找到一层保障，所以就在七月份，Richard写信给所罗门公司的总裁-Bob Denham请他研究这项合并交易的可能性。

Bob took it from there, and on September 18, Al and I met in New York. I had long been familiar with FlightSafety's business, and in about 60 seconds I knew that Al was exactly our kind of manager. A month later, we had a contract. Because Charlie and I wished to minimize the issuance of Berkshire shares, the transaction we structured gave FlightSafety shareholders a choice of cash or stock but carried terms that encouraged those who were tax-indifferent to take cash. This nudge led to about 51% of FlightSafety's shares being exchanged for cash, 41% for Berkshire A and 8% for Berkshire B.

Bob于是接手进行这个案子，在9月18日我和Al正式在纽约碰面，我对国际飞安这家公司的经营状况本来就相当熟悉，而在60秒内我马上就知道Al正是符合我们类型的经理人，一个月后，合约正式敲定，由于查理跟我希望能够尽量避免再发行Berkshire的新股份，所以在这项交易中，虽然我们提供国际飞安原股东换取股票或现金两种选择，但是交易条件等于间接鼓励这些税负没有太大差异的股东选择领取现金，结果总计最后有51%的股份领取现金，41%换得Berkshire A级普通股，另外8%换得Berkshire B级普通股。

Al has had a lifelong love affair with aviation and actually piloted Charles Lindbergh. After a barnstorming career in the 1930s, he began working for Juan Trippe, Pan Am's legendary chief. In 1951, while still at Pan Am, Al founded FlightSafety, subsequently building it into a simulator manufacturer and a worldwide trainer of pilots (single-engine, helicopter, jet and marine). The company operates in 41 locations, outfitted with 175 simulators of planes ranging from the very small, such as Cessna 210s, to Boeing 747s. Simulators are not cheap - they can cost as much as $19 million - so this business, unlike many of our operations, is capital intensive. About half of the company's revenues are derived from the training of corporate pilots, with most of the balance coming from airlines and the military.

Al 一生热爱飞行，曾经驾驶过查理林登号，在经过1930年代轰轰烈烈的飞行事业之后，他开始担任泛美航空的机长，之后并在1951年创立国际飞安公司，将这家公司塑造成飞行仿真器制造与飞行员训练的世界级领导公司(单引擎、直升机、客机与水上飞机)，营业据点遍布41个地方，拥有175座的飞行仿真器，大至波音747客机，小到Cessna 210型小飞机，大家要知道飞行仿真器的造价可不便宜，有的要价甚至高达1,900万美金，所以这一行不像我们原来拥有的其它事业，算是相当资本密集的，该公司大约有一半的营业收入来自于训练飞行员的收入，其余则来自于航空公司与军事单位。

Al may be 79, but he looks and acts about 55. He will run operations just as he has in the past: We never fool with success. I have told him that though we don't believe in splitting Berkshire stock, we will split his age 2-for-1 when he hits 100.

Al 今年虽然已经79岁，不过外表举止看起来像55岁，他将一如往常继续经营这家公司，我们从来不会把成功搞混，我甚至跟他开玩笑说，虽然我们从没想过将Berkshire的股份予以分割，不过等他满100岁时，我们倒是可以考虑把他的年纪一分为二。

An observer might conclude from our hiring practices that Charlie and I were traumatized early in life by an EEOC bulletin on age discrimination. The real explanation, however, is self-interest: It's difficult to teach a new dog old tricks. The many Berkshire managers who are past 70 hit home runs today at the same pace that long ago gave them reputations as young slugging sensations. Therefore, to get a job with us, just employ the tactic of the 76-year-old who persuaded a dazzling beauty of 25 to marry him. "How did you ever get her to accept?" asked his envious contemporaries. The comeback: "I told her I was 86."

有人可能会怀疑我们现在雇用人的政策，可能是缘于早期年龄歧视政策所受到的创伤，其实真正的原因乃是出于自私的观点，因为我们认为实在是很难教新狗老把戏！在Berkshire，许多经理人虽然已经年过70，但是他们还是像年轻时一样活跃，频频击出全垒打，所以如果各位有意到本公司谋得一职，请记得运用一位高龄76岁老翁如何追到25岁年轻辣妹的技巧，当同年龄的同伴很钦羡地问他：你到底是如何说服对方同意的呢?? 他回答到：很简单，我告诉她我今年86岁!

And now we pause for our usual commercial: If you own a large business with good economic characteristics and wish to become associated with an exceptional collection of businesses having similar characteristics, Berkshire may well be the home you seek. Our requirements are set forth on page 21. If your company meets them - and if I fail to make the next birthday party you attend - give me a call.

接下来休息一下，顺便做点广告，如果你拥有具极佳竞争优势的大企业同时想要与拥有同样特质的企业群为伍的话，Berkshire可以提供你绝佳的归宿，我们的要求条件详如附件，若是你的公司符合这些条件，而我又没能来得及参加你的生日派对，记得打电话给我。

Insurance Operations - Overview保险事业盈余-总检讨

Our insurance business was terrific in 1996. In both primary insurance, where GEICO is our main unit, and in our "super-cat" reinsurance business, results were outstanding.

在1996年，我们保险事业的营运大放异彩，不管是初级保险-其中以GEICO车险为主，或者是霹雳猫再保业务的表现都很杰出。

As we've explained in past reports, what counts in our insurance business is, first, the amount of "float" we generate and, second, its cost to us. These are matters that are important for you to understand because float is a major component of Berkshire's intrinsic value that is not reflected in book value.

就像是在过去年报中一再跟各位解释的，对于我们的保险事业来说，真正重要的，第一是我们因此取得的保险浮存金，第二就是取得它的成本，这两点相当的重要，大家必须了解浮存金虽然不会反应在公司净值之上，但却是Berkshire实质价值构成的关键因素之一。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid. Secondly, the premiums that an insurer takes in typically do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is an albatross if the cost of its float is higher than market rates for money.

更进一步说，浮存金是一项我们持有但不属于我们的资金，在保险公司的营运中，浮存金的产生原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，而通常保险业者收取的保费不足以因应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当浮存金成本长期而言低于从其它管道取得资金的成本时，保险公司就有存在的价值，不过保险事业取得浮存金的成本若远高于资金市场利率时，它就像是一只在陆地上笨重的信天翁。

As the numbers in the following table show, Berkshire's insurance business has been a huge winner. For the table, we have calculated our float - which we generate in large amounts relative to our premium volume - by adding loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents' balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. Our cost of float is determined by our underwriting loss or profit. In those years when we have had an underwriting profit, such as the last four, our cost of float has been negative. In effect, we have been paid for holding money.

不过如同下表中的数字所显示的，Berkshire的保险事业可说是大获全胜，表中的浮存金，系将所有的损失准备、损失费用调整准备与未赚取保费加总后，再扣除应付佣金、预付购并成本及相关再保递延费用，相对于我们的保费收入总额，我们的浮存金部位算是相当大的，至于浮存金的成本则决定于所发生的承保损失或利益而定，在某些年度，就像是最近四年，由于我们有承保利益，所以换句话说，我们的资金成本甚至是负的，光是持有这些资金我们就已经开始赚钱了。

(1) (2) Yearend YieldUnderwriting Approximat on Long-TermLoss Average Float Cost of Funds Govt. Bonds  (In $ Millions) (Ratio of 1 to 2)

1967
 
profit 17.3 less than zero 5.50%
 
1983
 
33.87 231.3 14.64% 11.84%
 

1968
 
profit 19.9 less than zero 5.90%
 
1984
 
48.06 253.2 18.98% 11.58%
 

1969
 
profit 23.4 less than zero 6.79%
 
1985
 
44.23 390.2 11.34% 9.34%
 

1970
 
0.37 32.4 1.14% 6.25%
 
1986
 
55.84 797.5 7.00% 7.60%
 

1971
 
profit 52.5 less than zero 5.81%
 
1987
 
55.43 1,266.7 4.38% 8.95%
 

1972
 
profit 69.5 less than zero 5.82%
 
1988
 
11.08 1,497.7 0.74% 9.00%
 

1973
 
profit 73.3 less than zero 7.27%
 
1989
 
24.40 1,541.3 1.58% 7.97%
 

1974
 
7.36 79.1 9.30% 8.13%
 
1990
 
26.65 1,637.3 1.63% 8.24%
 

1975
 
11.35 87.6 12.96% 8.03%
 
1991
 
119.59 1,895.0 6.31% 7.40%
 

1976
 
profit 102.6 less than zero 7.30%
 
1992
 
108.96 2,290.4 4.76% 7.39%
 

1977
 
profit 139.0 less than zero 7.97%
 
1993
 
profit 2,624.7 less than zero 6.35%
 

1978
 
profit 190.4 less than zero 8.93%
 
1994
 
profit 3,056.6 less than zero 7.88%
 

1979
 
profit 227.3 less than zero 10.08%
 
1995
 
profit 3,607.2 less than zero 5.95%
 

1980
 
profit 237.0 less than zero 11.94%
 
1996
 
profit 6,702.0 less than zero 6.64%
 

Since 1967, when we entered the insurance business, our float has grown at an annual compounded rate of 22.3%. In more years than not, our cost of funds has been less than nothing. This access to "free" money has boosted Berkshire's performance in a major way. Moreover, our acquisition of GEICO materially increases the probability that we can continue to obtain "free" funds in increasing amounts.

自从1967年我们进军保险业以来，我们的浮存金每年以22.3%复合成长率增加，大部分的年度，我们的资金成本都在零以下，受惠于这些免费的资金，大大地帮助Berkshire的绩效提升。更甚者，在完成对GEICO的并购之后，我们取得免费资金的成长速度又加快了许多。

Super-Cat Insurance霹雳猫保险业务

As in the past three years, we once again stress that the good results we are reporting for Berkshire stem in part from our super-cat business having a lucky year. In this operation, we sell policies that insurance and reinsurance companies buy to protect themselves from the effects of mega-catastrophes. Since truly major catastrophes are rare occurrences, our super-cat business can be expected to show large profits in most years - and to record a huge loss occasionally. In other words, the attractiveness of our super-cat business will take a great many years to measure. What you must understand, however, is that a truly terrible year in the super-cat business is not a possibility - it's a certainty. The only question is when it will come.

与过去三年一样，我们再次强调今年Berkshire保险事业之所以能够有这么好的成绩，部份的原因要归功于霹雳猫业务又渡过幸运的一年，从事这类业务，我们出售保单给保险公司与再保公司以分散其面临超大型意外灾害所可能承担的风险，由于真正重大的灾害并不常发生，所以我们的霹雳猫业务有可能在连续几年赚大钱后，才突然发生重大的损失，换句话说，我们这项霹雳猫业务到底有多吸引人可能要花上好几年才有办法看得清，不过大家必须明了，所谓的重大损失的年头不是可能会发生，而是肯定会发生，唯一的问题是它什么时候会降临。

I emphasize this lugubrious point because I would not want you to panic and sell your Berkshire stock upon hearing that some large catastrophe had cost us a significant amount. If you would tend to react that way, you should not own Berkshire shares now, just as you should entirely avoid owning stocks if a crashing market would lead you to panic and sell. Selling fine businesses on "scary" news is usually a bad decision. (Robert Woodruff, the business genius who built Coca-Cola over many decades and who owned a huge position in the company, was onceasked when it might be a good time to sell Coke stock. Woodruff had a simple answer: "I don't know. I've never sold any.")

我之所以会把丑话说在前头，是因为我不希望大家那天突然听到Berkshire因为某某大型意外灾害须理赔一大笔钱时，恐慌地拋售手中的持股，而如果届时你真的会有这种反应，那么你根本就不应该拥有本公司的股份，就像是如果你是那种碰到股市崩盘，会恐慌性的拋售手中股票的人，我建议你最好不要投资股票，听到坏消息而把手中的好股票卖掉通常不会是一个明智的决定，(数十年前创办可口可乐的天才企业家-Robert Woodruff曾经被问到，什么情况下是出售可口可乐股票的好时机， Woodruff简短的回答到，我不知，我从来就没有卖过!)。

In our super-cat operation, our customers are insurers that are exposed to major earnings volatility and that wish to reduce it. The product we sell - for what we hope is an appropriate price - is our willingness to shift that volatility to our own books. Gyrations in Berkshire's earnings don't bother us in the least: Charlie and I would much rather earn a lumpy 15% over time than a smooth 12%. (After all, our earnings swing wildly on a daily and weekly basis - why should we demand that smoothness accompany each orbit that the earth makes of the sun?) We are most comfortable with that thinking, however, when we have shareholder/partners who can also accept volatility, and that's why we regularly repeat our cautions.

谈到霹雳猫保险业务，我们的客户主要是一些想要降低本身必须承担盈余变动剧烈风险的保险公司，而我们贩卖的产品-当然一定要以合理的价格，将这些盈余变动的风险转移到本公司的帐上，因为我们对于Berkshire公司盈余剧烈的变动一点都不会介意，查理跟我宁可接受上下变动但平均可达15%的结果，也不要平稳的12%，(就像是我们知道公司的盈余每天、每周都会变动，那么我们又何必强求公司的盈余变化一定要跟地球环绕太阳轨道的时间一致呢?) 我想如果Berkshire的股东合伙人也能有这样的看法，那么我们执行业务时便能更得心应手，而这也是为什么我们要一再提出相同警告的原因。

We took on some major super-cat exposures during 1996. At mid-year we wrote a contract with Allstate that covers Florida hurricanes, and though there are no definitive records that would allow us to prove this point, we believe that to have then been the largest single catastrophe risk ever assumed by one company for its own account. Later in the year, however, we wrote a policy for the California Earthquake Authority that goes into effect on April 1, 1997, and that exposes us to a loss more than twice that possible under the Florida contract. Again we retained all the risk for our own account. Large as these coverages are, Berkshire's after-tax "worst-case" loss from a true mega-catastrophe is probably no more than $600 million, which is less than 3% of our book value and 1.5% of our market value. To gain some perspective on this exposure, look at the table on page 2 and note the much greater volatility that security markets have delivered us.

我们在1996年陆续接了好几件大业务，在年中我们与全美保险签约承保佛罗里达飓风险，虽然没有确切的资料可供左证，但我们相信这应该是单一公司独力承受单一风险的最高记录，接着到年底，我们又与加州地震局签约承保比佛罗里达飓风高出一倍的理赔上限，保单预计从1997年4月1日开始生效，再一次我们独立承揽所有的风险，虽然承保的金额相当庞大，但是即使在最坏的状况下，任何一件大型灾害的税后损失也不会超过六亿美元，大约不到Berkshire净值的3%或市值的1.5%，大家要了解这类风险的影响性，比起年报第二页所示的股票市场变动对我们的影响性来说，前者可谓是小巫见大巫。

In the super-cat business, we have three major competitive advantages. First, the parties buying reinsurance from us know that we both can and will pay under the most adverse of circumstances. Were a truly cataclysmic disaster to occur, it is not impossible that a financial panic would quickly follow. If that happened, there could well be respected reinsurers that would have difficulty paying at just the moment that their clients faced extraordinary needs. Indeed, one reason we never "lay off" part of the risks we insure is that we have reservations about our ability to collect from others when disaster strikes. When it's Berkshire promising, insureds know with certainty that they can collect promptly.

在霹雳猫保险业务，我们主要有三项竞争优势，首先向我们投保再保险的客户都知道我们有能力，也会在最糟糕的情况下履约付款，因为万一真的发生什么样的大灾难，很难保证金融恐慌就不会接踵而至，届时在其客户最需要援助时，可能连一些原本享有盛誉的再保公司都拿不出钱来，而事实上我们之所以从来不将风险再转嫁出去的一个原因也是因为我们对于灾难发生时，其它保险公司能否顺利支付赔款的能力有所保留，反之只要是Berkshire做出的保证，所有的保户都可以百分之百确定一定可以立即得到理赔。

Our second advantage - somewhat related - is subtle but important. After a mega-catastrophe, insurers might well find it difficult to obtain reinsurance even though their need for coverage would then be particularly great. At such a time, Berkshire would without question have very substantial capacity available - but it will naturally be our long-standing clients that have first call on it. That business reality has made major insurers and reinsurers throughout the world realize the desirability of doing business with us. Indeed, we are currently getting sizable "stand-by" fees from reinsurers that are simply nailing down their ability to get coverage from us should the market tighten.

我们的第二项优势，跟第一项有点关联，虽然不显著但却相当重要，当一件大灾害发生后，保险公司最迫切需要重新办理投保时，可能会发现很难再找到新保单，在这个时候，Berkshire保证绝对可以提供任何服务，当然我们会优先受理原来与我们有长期往来的客户，这个经验已经使得全世界的保险公司与再保公司了解与我们维持往来的必要性，事实上，我们现在正从许多再保公司那里收取预备准备费，以防万一市场情况紧绷时，他们可以确保取得再保的优先机会。

Our final competitive advantage is that we can provide dollar coverages of a size neither matched nor approached elsewhere in the industry. Insurers looking for huge covers know that a single call to Berkshire will produce a firm and immediate offering.

我们拥有的最后一项优势是我们能够提供别处得不到单一最高的投保上限，保险业者都知道只要打一通电话到Berkshire，就可以立即得到确定满意的答复。

A few facts about our exposure to California earthquakes - our largest risk - seem in order. The Northridge quake of 1994 laid homeowners' losses on insurers that greatly exceeded what computer models had told them to expect. Yet the intensity of that quake was mild compared to the "worst-case" possibility for California. Understandably, insurers became - ahem - shaken and started contemplating a retreat from writing earthquake coverage into their homeowners' policies.

有关加州大地震方面有几点需要在这里做说明，因为这是我们最大的风险部位所在， 1994年发生的北岭大地震使得保险业的住宅保险损失远超过计算机所估算的预期范围，不过这次地震的震度比起预估可能的最坏情况，最还算是相对轻微的，所以可想而知某些保险业者肯定都吓坏了，因此开始考虑将地震险从他们的住宅险保单条款中撤掉。

In a thoughtful response, Chuck Quackenbush, California's insurance commissioner, designed a new residential earthquake policy to be written by a state-sponsored insurer, The California Earthquake Authority. This entity, which went into operation on December 1, 1996, needed large layers of reinsurance - and that's where we came in. Berkshire's layer of approximately $1 billion will be called upon if the Authority's aggregate losses in the period ending March 31, 2001 exceed about $5 billion. (The press originally reported larger figures, but these would have applied only if all California insurers had entered into the arrangement; instead only 72% signed up.)

深富远见的加州保险委员会委员Chuch Quackenbush立即规划出一张由加州地震局背后支持新的住宅地震保单，然而这项预计从1996年12月1日开始正式生效的措施极需要再保险的庇护，这时候就轮到我们上场了，Berkshire总共提供10亿美元的再保险防护，当地震局在2001年3月31日之前因地震发生的损失超过50亿美元时，(媒体原先报导的数字比这更高，不过那是在所有保险业者都一同加入时的情况，总计最后只有72%的业者参与签约)。

So what are the true odds of our having to make a payout during the policy's term? We don't know - nor do we think computer models will help us, since we believe the precision they project is a chimera. In fact, such models can lull decision-makers into a false sense of security and thereby increase their chances of making a really huge mistake. We've already seen such debacles in both insurance and investments. Witness "portfolio insurance," whose destructive effects in the 1987 market crash led one wag to observe that it was the computers that should have been jumping out of windows.

大家一定会问在保单有效期间我们最后真正必须支付理赔的机率到底有多大?? 老实说我们实在是不知道，而我们也不认为用计算机运算出来的程序可以帮我们什么忙，基本上计算机做出的预测根本就是垃圾，它们反而会让做决策的人误以为得到某种确定的假象，从而使得他们犯下大错的机会大增，过去不管是在保险或投资业者，这种离谱的情况屡见不鲜，看看投资组合保险在1987年股市大崩盘时所造成的惨况，有人开玩笑说，当时应该要跳楼是计算机而不是那些被它所愚弄的人。

Even if perfection in assessing risks is unattainable, insurers can underwrite sensibly. After all, you need not know a man's precise age to know that he is old enough to vote nor know his exact weight to recognize his need to diet. In insurance, it is essential to remember that virtually all surprises are unpleasant, and with that in mind we try to price our super-cat exposures so that about 90% of total premiums end up being eventually paid out in losses and expenses. Over time, we will find out how smart our pricing has been, but that will not be quickly. The super-cat business is just like the investment business in that it often takes a long time to find out whether you knew what you were doing.

虽然保险业者无法准确地评估风险到底有多大，不过我们却还是可以合理的接下保单，就像是你并不一定要真的知道一个人的实际年龄，才能判断他是否可以去投票或是一定要知道一个人几公斤重才认为他该不该减肥，同样的，从事保险这一行，大家必须谨记的是，基本上所有的意外都不会让人感到愉快，所以在接下保单时，我们心里早有预备，准备把90%的保费收入花在损失理赔与相关费用之上，慢慢的一段时间下来，我们就会发现，这样的订价是否合理，这绝对需要时间来证明，霹雳猫保险这一行就像是投资事业一样，绝对需要一段很长的时间，你才能确定知道自己到底在干什么。

What I can state with certainty, however, is that we have the best person in the world to run our super-cat business: Ajit Jain, whose value to Berkshire is simply enormous. In the reinsurance field, disastrous propositions abound. I know that because I personally embraced all too many of these in the 1970s and also because GEICO has a large runoff portfolio made up of foolish contracts written in the early-1980s, able though its then-management was. Ajit, I can assure you, won't make mistakes of this type.

不过有一点我绝对可以向各位保证的是，我们拥有全世界最优秀的霹雳猫保险保险专家，那就是Ajit Jain，他在Berkshire的价值大到难以想象，在再保险这一行，恐怖的灾难时常发生，我很清楚的原因是我个人在1970年代就抱了不少个地雷，而GEICO在1980年代初期，即使当时拥有最能干的经理人，也同样签了一堆愚蠢的保险合约，不过提到Ajit，我可以向各位保证，绝对不会再犯同样的错误。

I have mentioned that a mega-catastrophe might cause a catastrophe in the financial markets, a possibility that is unlikely but not far-fetched. Were the catastrophe a quake in California of sufficient magnitude to tap our coverage, we would almost certainly be damaged in other ways as well. For example, See's, Wells Fargo and Freddie Mac could be hit hard. All in all, though, we can handle this aggregation of exposures.

另一方面我也说过，自然灾害的发生同样也会间接导致金融风暴的发生，这样的可能性不大，但也不是不可能，要是加州真的发生规模大到我们理赔下限的大地震，我们旗下其它事业也可能会受到严重的打击，比如说喜斯糖果、富国银行或Freddie Mac等，不过总的来说，我们应该可以妥善处理发生的状况。

In this respect, as in others, we try to "reverse engineer" our future at Berkshire, bearing in mind Charlie's dictum: "All I want to know is where I'm going to die so I'll never go there." (Inverting really works: Try singing country western songs backwards and you will quickly regain your house, your car and your wife.) If we can't tolerate a possible consequence, remote though it may be, we steer clear of planting its seeds. That is why we don't borrow big amounts and why we make sure that our super-cat business losses, large though the maximums may sound, will not put a major dent in Berkshire's intrinsic value.

就这方面而言，我们试着事先规划Berkshire的未来，时时谨记查理常说的一句格言，「希望能够知道自己最后会死在哪里，然后打死都不去那里！」(事先回想真的有效，大家可以试着多唱唱以前流行的乡村歌曲，很快的你就会发现重新找回你的房子、车子跟老婆)，如果我们没办法承担可能的后果，不管其可能性有多小，那么我们就必须避免播下罪恶的种子，这也是为什么我们不大幅举债的原因，同时虽然霹雳猫损失理赔的上限金额看起来很大，但对Berkshire本身价值的影响却极其有限。

Insurance - GEICO and Other Primary Operations保险事业营运-GEICO以及其它主要保险

When we moved to total ownership of GEICO early last year, our expectations were high - and they are all being exceeded. That is true from both a business and personal perspective: GEICO's operating chief, Tony Nicely, is a superb business manager and a delight to work with. Under almost any conditions, GEICO would be an exceptionally valuable asset. With Tony at the helm, it is reaching levels of performance that the organization would only a few years ago have thought impossible.

去年当我们完全取得GEICO的所有权之后，我们曾对它抱以深切的期望，如今这些期望不但全部实现，甚至是有过之而无不及，不论是从企业或个人的观点来看皆是如此，GEICO的领导者Tony Nicely不但是一个杰出的经理人同时也是令人感到愉快的工作伙伴，不论在任何的情况下，GEICO永远都是我们价值不菲的珍贵资产，有Tony负责掌舵，GEICO甚至迈入几年前根本就想象不到的营运高峰。

There's nothing esoteric about GEICO's success: The company's competitive strength flows directly from its position as a low-cost operator. Low costs permit low prices, and low prices attract and retain good policyholders. The final segment of a virtuous circle is drawn when policyholders recommend us to their friends. GEICO gets more than one million referrals annually and these produce more than half of our new business, an advantage that gives us enormous savings in acquisition expenses - and that makes our costs still lower.

GEICO的成功没有任何深奥的道理，该公司的竞争优势完全拜其超低成本的经营模式所赐，低成本代表低售价，低售价自然能够吸引并留住优良的保险客户，而整个营业流程在满意的客户向他们的朋友推荐GEICO时划下完美的句点，靠着客户的推荐， GEICO每年至少因此增加100万张保单，占新接业务量的半数以上，也使得我们新接业务成本大幅下降，从而又进一步降低我们的成本。

This formula worked in spades for GEICO in 1996: Its voluntary auto policy count grew 10%. During the previous 20 years, the company's best-ever growth for a year had been 8%, a rate achieved only once. Better yet, the growth in voluntary policies accelerated during the year, led by major gains in the nonstandard market, which has been an underdeveloped area at GEICO. I focus here on voluntary policies because the involuntary business we get from assigned risk pools and the like is unprofitable. Growth in that sector is most unwelcome.

这种模式在1996年大放异彩，自动上门的保险量成长了10%，过去二十年来，该公司最高也不过是在有一年达到8%而已，更好的是，这些自愿保单的增加主要源自于非制式的保单市场，这个市场对GEICO来说算是亟待开发的一块，我之所以一再强调自愿保单的原因在于，从别处分配到的集体性非自愿的保单根本就没什么利润，那方面的成长就可有可无。

GEICO's growth would mean nothing if it did not produce reasonable underwriting profits. Here, too, the news is good: Last year we hit our underwriting targets and then some. Our goal, however, is not to widen our profit margin but rather to enlarge the price advantage we offer customers. Given that strategy, we believe that 1997's growth will easily top that of last year.

如果不能产生合理的承保获利，GEICO保费收入的成长就没有任何意义，不过再一次我们得到的答案是正面的肯定，去年我们顺利达到原先设定的承保目标，甚至还超越，不过我们真正的目标不是要扩大承保的利差，而是将利润透过价格的调整回馈给客户，在这样的策略之下，我们相信1997年的成长一定还会超越1996年的表现。

We expect new competitors to enter the direct-response market, and some of our existing competitors are likely to expand geographically. Nonetheless, the economies of scale we enjoy should allow us to maintain or even widen the protective moat surrounding our economic castle. We do best on costs in geographical areas in which we enjoy high market penetration. As our policy count grows, concurrently delivering gains in penetration, we expect to drive costs materially lower. GEICO's sustainable cost advantage is what attracted me to the company way back in 1951, when the entire business was valued at $7 million. It is also why I felt Berkshire should pay $2.3 billion last year for the 49% of the company that we didn't then own.

同时我们也预期会有新的竞争者加入直效行销的市场，而现有的一些竞争同业也有可能会扩大他们的营业区域，不过不管怎样，我们目前所建立的规模经济，绝对可以确保甚至是扩大我们现在占有的经济堡垒，我们在拥有最高市占率的地区尽量降低成本，预期还会将成本进一步地降低，GEICO永续性的成本优势是当初在1951年吸引我投资该公司的主要原因，当时整家公司的市值不过只有700万美元，而那也是为什么我在去年愿意花23亿美元买下另外一半不属于Berkshire的股权的原因。

Maximizing the results of a wonderful business requires management and focus. Lucky for us, we have in Tony a superb manager whose business focus never wavers. Wanting also to get the entire GEICO organization concentrating as he does, we needed a compensation plan that was itself sharply focused - and immediately after our purchase, we put one in.

想要让一家好公司的表现发挥到极致，必须依赖优秀的管理人员与明确的目标方向，值得庆幸的是我们已经有像Tony这样优秀的专业经理人以及绝对不会动摇的目标，而为了确保GEICO所有的组织成员都能像Tony一样专注一致，我们需要一套能够搭配的薪资酬劳计画，所以在整个购并案完成之后，我们立刻落实执行。

Today, the bonuses received by dozens of top executives, starting with Tony, are based upon only two key variables: (1) growth in voluntary auto policies and (2) underwriting profitability on "seasoned" auto business (meaning policies that have been on the books for more than one year). In addition, we use the same yardsticks to calculate the annual contribution to the company's profit-sharing plan. Everyone at GEICO knows what counts.

现在，以Tony为首的几个主要高阶经理人所领取的薪资奖励主要就看两个指数︰(1)自愿性保单的成长，以及(2)常态性保单承保的获利(指留在公司超过一年的保单)，此外，我们也将同样的标准运用于公司每年员工盈余分配的计画，所以基本上在GEICO每个人都知道真正重要的是什么。

The GEICO plan exemplifies Berkshire's incentive compensation principles: Goals should be (1) tailored to the economics of the specific operating business; (2) simple in character so that the degree to which they are being realized can be easily measured; and (3) directly related to the daily activities of plan participants. As a corollary, we shun "lottery ticket" arrangements, such as options on Berkshire shares, whose ultimate value - which could range from zero to huge - is totally out of the control of the person whose behavior we would like to affect. In our view, a system that produces quixotic payoffs will not only be wasteful for owners but may actually discourage the focused behavior we value in managers.

GEICO这项计画充分说明的Berkshire薪资奖励的原则，那就是必须要能够达到以下目标(1)适用于个别公司经营状况(2)简单明了的规则，如此可以很清楚的加以衡量(3)与每个参与的员工直接相关；所以很自然的，我们避免给予员工不劳而获的乐透彩，比如说Berkshire的认股权，其最终的价值可能由极少到极大，但这却不是那些我们想要影响其行为的人员所能够直接控制影响的，在我们的观念中，不合理的薪资奖励办法，不但是浪费股东的钱，同时也会让旗下的经理人分心而产生不当的行为。

Every quarter, all 9,000 GEICO associates can see the results that determine our profit-sharing plan contribution. In 1996, they enjoyed the experience because the plan literally went off the chart that had been constructed at the start of the year. Even I knew the answer to that problem: Enlarge the chart. Ultimately, the results called for a record contribution of 16.9% ($40 million), compared to a five-year average of less than 10% for the comparable plans previously in effect. Furthermore, at Berkshire, we never greet good work by raising the bar. If GEICO's performance continues to improve, we will happily keep on making larger charts.

每一季，GEICO公司总共9,000名的员工都可以看到根据盈余分配计画所计算出来的结果，1996年他们确实享受到这项成果，因为根据这项计画所计算出来的数字早已打破当初规划时的最高上限，连我也知道要如何解决这个问题，那就是把上限再扩大，到最后，员工总共分配到年度获利的16.9%，金额将近有4,000万美元，远高于过去五年平均不到10%的比率，同时在Berkshire对于员工辛勤工作的表现，我们绝对不会回以更高的门槛，如果GEICO的员工继续保持如此优异的表现，我们还会继续提高奖励的上限。

Lou Simpson continues to manage GEICO's money in an outstanding manner: Last year, the equities in his portfolio outdid the S&P 500 by 6.2 percentage points. In Lou's part of GEICO's operation, we again tie compensation to performance - but to investment performance over a four-year period, not to underwriting results nor to the performance of GEICO as a whole. We think it foolish for an insurance company to pay bonuses that are tied to overall corporate results when great work on one side of the business - underwriting or investment - could conceivably be completely neutralized by bad work on the other. If you bat .350 at Berkshire, you can be sure you will get paid commensurately even if the rest of the team bats .200. In Lou and Tony, however, we are lucky to have Hall-of-Famers in both key positions.

负责管理GEICO资金的Lou Simpson同样继续其优异的表现，去年他的投资组合超越S&P 500指数整整6.2个百分点，关于Lou在GEICO的表现，再一次我们将其奖励计画跟其投资绩效绑在一起，不看GEICO的承保绩效或整体的成绩，而是以过去四年平均的投资绩效为准，对于有些保险公司不分承保部门或投资部门，完全不顾一方优异的表现可能被另一方糟糕的表现所抵消掉的情况，而将其薪资奖励计画完全绑在一起，一视同仁的做法感到愚不可及，在Berkshire如果你的打击率高达三成五，我可以向你保证绝对不会亏待你，即使其它同队的球员平均打击率只有二成而已，不过很庆幸在GEICO，不论是在保险或投资部门，我们都拥有像Lou与Tony这类足以列入名人堂的优秀球员。

Though they are, of course, smaller than GEICO, our other primary insurance operations turned in equally stunning results last year. National Indemnity's traditional business had a combined ratio of 74.2 and, as usual, developed a large amount of float compared to premium volume. Over the last three years, this segment of our business, run by Don Wurster, has had an average combined ratio of 83.0. Our homestate operation, managed by Rod Eldred, recorded a combined ratio of 87.1 even though it absorbed the expenses of expanding to new states. Rod's three-year combined ratio is an amazing 83.2. Berkshire's workers' compensation business, run out of California by Brad Kinstler, has now moved into six other states and, despite the costs of that expansion, again achieved an excellent underwriting profit. Finally, John Kizer, at Central States Indemnity, set new records for premium volume while generating good earnings from underwriting. In aggregate, our smaller insurance operations (now including Kansas Bankers Surety) have an underwriting record virtually unmatched in the industry. Don, Rod, Brad and John have all created significant value for Berkshire, and we believe there is more to come.

虽然比起GEICO，我们其它主要保险事业规模要小得多，但他们在去年同样缴出惊人的成绩单，国家赔偿公司的传统业务综合比率只有74.2，同时以其保费收入来看，还贡献了大量的浮存金，过去三年以来，这个由Don Wurster负责的部门平均的综合比率只有83.0；另外由Rod Eldred负责的Homestate业务也有相当幅度的成长，去年虽然必须负担开拓新州业务的费用，但综合比率仍只有87.1，过去三年平均为83.2；另外原先由Brad负责的加州劳工退休基金现在已将业务重心移到其它六个州，虽然初期须负担沉重的开办费用，但是仍然能维持可观的承保获利；最后负责中央州立产险公司营运的John Kizer则依然表现出色，保费收入不但大幅成长，同时承保利益更大幅增加，总的来说，我们几个小型保险事业(包含堪萨斯银行家保险在内)的表现是其它同业所比不上的，Don、Rod、Brad与John全都替Berkshire创造了可观的价值，而我们也相信他们未来的潜力仍然可期。

Taxes租税问题

In 1961, President Kennedy said that we should ask not what our country can do for us, but rather ask what we can do for our country. Last year we decided to give his suggestion a try - and who says it never hurts to ask? We were told to mail $860 million in income taxes to the U.S. Treasury.

1961年，甘乃迪总统曾经说过一句名言︰不要问国家能为你做些什么，问问你能为国家做些什么! 去年我们决定照他的建议试一试，不过不知道是谁说问问没有关系的?? 我们最后得到的答案是总共要缴8.6亿美元的所得税给美国国库。

Here's a little perspective on that figure: If an equal amount had been paid by only 2,000 other taxpayers, the government would have had a balanced budget in 1996 without needing a dime of taxes - income or Social Security or what have you - from any other American. Berkshire shareholders can truly say, "I gave at the office."

这个数字到底有多大呢? 如果全美能够有2,000名跟Berkshire一样的纳税义务人的话，则美国国库不需要再征收其它任何的所得税、社会安全捐或任何你想得到名目的税捐，1996年的预算收支就能够打平，所以Berkshire的股东可以大声地说自己，功在国库。

Charlie and I believe that large tax payments by Berkshire are entirely fitting. The contribution we thus make to society's well-being is at most only proportional to its contribution to ours. Berkshire prospers in America as it would nowhere else.

查理跟我本人对于Berkshire必须支付如此高额的税负感到完全接受，我们对于整个社会的贡献远远比不上社会对我们所作的贡献，要不是身在美国，Berkshire不可能有这样的荣景。

Sources of Reported Earnings帐列盈余的来源

The table that follows shows the main sources of Berkshire's reported earnings. In this presentation, purchase-accounting adjustments are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. For the reasons discussed on pages 65 and 66, this form of presentation seems to us to be more useful to investors and managers than one utilizing generally-accepted accounting principles (GAAP), which require purchase-premiums to be charged off business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

(in millions) Berkshire's Shareof Net Earnings (after taxes and Pre-tax Earnings minority interests)

Operating Earnings: Insurance Group

 
 
Underwriting
 
Net Investment Income
 
Buffalo News
 
Fechheimer
 
Finance Businesses
 
Home Furnishings
 
Jewelry
 
Kirby
 
See's Candies
 

1996
 
$ 222.1
 
726.2
 
50.4
 
17.3 
 
23.1 
 
43.8 
 
27.8 
 
58.5
 
51.9
 

1995(1)
 
$ 20.5
 
501.6
 
46.8
 
16.9
 
20.8
 
29.7(2)
 
33.9(3)
 
50.2
 
50.2
 

1996
 
$ 142.8
 
593.1
 
29.5
 
9.3
 
14.9
 
24.8
 
16.1
 
39.9
 
30.8
 

1995(1)
 
$ 11.3
 
417.7
 
27.3
 
8.8
 
12.6
 
16.7(2)
 
19.1(3)
 
32.1
 
29.8
 

 
 
Scott Fetzer Manufacturing Group
 
Shoe Group
 
World Book.
 
Purchase-Accounting Adjustments
 
Interest Expense(4)
 
Shareholder-Designated Contributions
 
Other
 

1996
 
50.6 
 
61.6
 
12.6 
 
(75.7)
 
(94.3)
 
(13.3)
 
58.8 
 

1995(1)
 
34.1
 
58.4
 
8.8
 
(27.0)
 
(56.0)
 
(11.6)
 
37.4
 

1996
 
32.2
 
41.0
 
9.5
 
(70.5)
 
(56.6)
 
(8.5)
 
34.8
 

1995(1)
 
21.2
 
37.5
 
7.0
 
(23.4)
 
(34.9)
 
(7.0)
 
24.4
 

 
 
Operating Earnings
 
Sales of Securities
 
Total Earnings - All Entities
 

1996
 
1,221.4
 
2,484.5
 
$3,705.9
 

1995(1)
 
814.7
 
194.1
 
$1,008.8
 

1996
 
883.1
 
1,605.5
 
$2,488.6
 

1995(1)
 
600.2
 
125.0
 
$ 725.2
 

(1)Before the GEICO-related restatement. (1)不包含GEICO重编部份。

(2) Includes R.C. Willey from June 29, 1995. (2)包含R.C. Willey 1995年6月29日以后的盈余
(3) Includes Helzberg's from April 30, 1995 (3)包含Helzberg 1995年4月30日以后的盈余

(4) Excludes interest expenseof Finance Businesses. (4)扣除金融事业的利息支出

In this section last year, I discussed three businesses that reported a decline in earnings - Buffalo News, Shoe Group and World Book. All, I'm

去年到这段时，我曾提到有三个事业盈余大幅下滑-水牛城新闻报、鞋子事业与世界百科全书，今年我们高兴向大家报告，这几个事业都大有进步。

World Book, however, did not find it easy: Despite the operation's new status as the only direct-seller of encyclopedias in the country (Encyclopedia Britannica exited the field last year), its unit volume fell. Additionally, World Book spent heavily on a new CD-ROM product that began to take in revenues only in early 1997, when it was launched in association with IBM. In the face of these factors, earnings would have evaporated had World Book not revamped distribution methods and cut overhead at headquarters, thereby dramatically reducing its fixed costs. Overall, the company has gone a long way toward assuring its long-term viability in both the print and electronic marketplaces.

不过对于世界百科全书来说，这可不是一件简单的事，尽管如今它们是全美仅存以直销的方式销售百科全书的业者(大英百科全书在去年退出了这个市场)，不过它的销售数量还是呈现下滑的状态，另外世界百科全书还投入大笔的经费在CD版的新产品之上，但其效益至少要等到1997年初与IBM的合作正式展开后才有可能显现，在种种不利的状况下，世界百科全书如果不能大力改革通路方式并降低总部营运开销，以彻底降低固定成本的话，盈余可能会消失殆尽，不过总的来说，该公司已想尽各种方法以确保自身能够在竞争激烈的印刷与电子出版市场上继续存活下去。

Our only disappointment last year was in jewelry: Borsheim's did fine, but Helzberg's suffered a material decline in earnings. Its expense levels had been geared to a sizable increase in same-store sales, consistent with the gains achieved in recent years. When sales were instead flat, profit margins fell. Jeff Comment, CEO of Helzberg's, is addressing the expense problem in a decisive manner, and the company's earnings should improve in 1997.

去年唯一让我们感到失望的反而是珠宝事业，波仙还不错，不过Helzberg的盈余却大幅下滑，单店平均费用持续大幅增加，但是当营收表现平平时，获利自然缩减，针对这个问题该公司总裁-Jeff Comment已经采取必要的措施，我想它们1997年的盈余表现应该能够有所改善。

Overall, our operating businesses continue to perform exceptionally, far outdoing their industry norms. For this, Charlie and I thank our managers. If you should see any of them at the Annual Meeting, add your thanks as well.

不过总的来说，我们旗下所有的营利事业的表现，比起其同业来说仍然相当杰出，对此查理跟我本身向所有经理人致上深深的敬意，而如果各位在年会上遇到他们，也请大家不吝给予掌声。

More information about our various businesses is given on pages 36-46, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 51-57, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company. Our intent is to supply you with the financial information that we would wish you to give us if our positions were reversed.

在年报中你可以找到依照一般公认会计原则编制，详细的部门别信息，另外你还可以找到经过重编，依照Berkshire四大部门的信息，这是查理跟我能够完整呈现Berkshire现况的模式，我们的目的是希望能够换个角度设想，提供大家所有必要的信息。

"Look-Through" Earnings完整透视盈余

Reported earnings are a poor measure of economic progress at Berkshire, in part because the numbers shown in the table presented earlier include only the dividends we receive from investees - though these dividends typically represent only a small fraction of the earnings attributable to our ownership. Not that we mind this division of money, since on balance we regard the undistributed earnings of investees as more valuable to us than the portion paid out. The reason is simple: Our investees often have the opportunity to reinvest earnings at high rates of return. So why should we want them paid out?

我们认为帐列盈余很难表现Berkshire实际的营运状况，部份原因在于列示在本公司帐上的股利收入，事实上仅占被投资公司收益的一小部份，其实对我们而言，我们更重视未分配的那一部份，因为他们可以为我们创造出更高的价值，原因很简单，因为我们的被投资公司往往比母公司更有机会把资金投入到高投资报酬的用途之上，既然如此又何必一定要强迫他们把盈余分配回来呢?

To depict something closer to economic reality at Berkshire than reported earnings, though, we employ the concept of "look-through" earnings. As we calculate these, they consist of: (1) the operating earnings reported in the previous section, plus; (2) our share of the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. When tabulating "operating earnings" here, we exclude purchase-accounting adjustments as well as capital gains and other major non-recurring items.

为了要能更真实的反应Berkshire实际的经营状况，于是乎我们运用了完整透视盈余的观念，这个数字总共包含(1)前段所提到的帐列盈余，加上(2)主要被投资公司的保留盈余，按一般公认会计原则未反应在我们公司帐上的盈余，扣除(3)若这些未反应的盈余分配给我们时，估计可能要缴的所得税。在这里我们所谓的营业盈余系已扣除资本利得、特别会计调整与企业其它非常态的项目。

The following table sets forth our 1996 look-through earnings, though I warn you that the figures can be no more than approximate, since they are based on a number of judgment calls. (The dividends paid to us by these investees have been included in the operating earnings itemized on page 12, mostly under "Insurance Group: Net Investment Income.")

各位可以从下表看出我们是如何计算出1996年透视盈余的，不过我还是要提醒各位这些数字只不过是估计数，很多都是基于简单的判断，(被投资公司所分配的股利收入已经包含在保险事业的净投资收益项下)。

Berkshire's Shareof UndistributedBerkshire's Approximate Operating Earnings Berkshire's Major Investees Ownership at Yearend(1) (in millions)(2)

American Express Company
 
The Coca-Cola Company
 
The Walt Disney Company
 
Federal Home Loan Mortgage Corp
 
The Gillette Company
 
McDonald's Corporation
 
The Washington Post Company
 
Wells Fargo & Company.
 

10.5%
 
8.1%
 
3.6%
 
8.4%
 
8.6%
 
4.3%
 
15.8%
 
8.0%
 

$ 132
 
180
 
50
 
77
 
73
 
38
 
27
 
84
 

Berkshire's share of undistributed earnings of major investees.. 661

Hypothetical tax on these undistributed investee earnings(3).... (93)

Reported operating earnings of Berkshire........................ 954

Total look-through earnings of Berkshire.................. $1,522

(1) Does not include shares allocable to minority interests

(2) Calculated on average ownership for the year

(3) The tax rate used is 14%, which is the rate Berkshire pays on the dividends it receives

Common Stock Investments股票投资

Below we present our common stock investments. Those with a market value of more than $500 million are itemized.

下表是我们市价超过五亿美元以上的普通股投资。

12/31/96 Shares Company Cost* Market (dollars in millions)

49,456,900
 
200,000,000
 
24,614,214
 
64,246,000
 
48,000,000
 
30,156,600
 
1,727,765
 
7,291,418
 
 
 
 
 

American Express Company
 
The Coca-Cola Company
 
The Walt Disney Company.
 
Federal Home Loan Mortgage Corp
 
The Gillette Company
 
McDonald's Corporation
 
The Washington Post Company.
 
Wells Fargo & Company.
 
Others
 
Total Common Stocks
 

$1,392.7
 
1,298.9
 
577.0
 
333.4
 
600.0
 
1,265.3
 
10.6
 
497.8
 
1,934
 
$7,910.2
 

$ 2,794.3
 
10,525.0
 
1,716.8
 
1,772.8
 
3,732.0
 
1,368.4
 
579.0
 
1,966.9
 
3,295
 
$27,750.6
 

* Represents tax-basis cost which, in aggregate, is $1.2 billion less than GAAP cost.

*系以税务为基础的成本，比一般公认会计原则的帐面成本少12亿美元。

Our portfolio shows little change: We continue to make more money when snoring than when active.

我们的投资组合还是没有多大变动，我们打盹时赚的钱比起醒着时多很多。

Inactivity strikes us as intelligent behavior. Neither we nor most business managers would dream of feverishly trading highly-profitable subsidiaries because a small move in the Federal Reserve's discount rate was predicted or because some Wall Street pundit had reversed his views on the market. Why, then, should we behave differently with our minority positions in wonderful businesses? The art of investing in public companies successfully is little different from the art of successfully acquiring subsidiaries. In each case you simply want to acquire, at a sensible price, a business with excellent economics and able, honest management. Thereafter, you need only monitor whether these qualities are being preserved.

按兵不动对我们来说是一项明智的行为，就像是我们或其它经理人不可能因为谣传联准会可能调整贴放利率或是华尔街那帮土匪大幅改变他们对股市前景的看法，就决定把旗下高获利的金鸡母卖来卖去一样，我们也不会对拥有部份所有权的好公司股票任意出脱，投资上市公司股票的秘诀与取得百分之百的子公司的方法没有什么两样，都是希望能够以合理的价格取得拥有绝佳竞争优势与才德兼备的经理人，也因此大家真正应该关心注意的是这些特质是否有任何改变。

When carried out capably, an investment strategy of that type will often result in its practitioner owning a few securities that will come to represent a very large portion of his portfolio. This investor would get a similar result if he followed a policy of purchasing an interest in, say, 20% of the future earnings of a number of outstanding college basketball stars. A handful of these would go on to achieve NBA stardom, and the investor's take from them would soon dominate his royalty stream. To suggest that this investor should sell off portions of his most successful investments simply because they have come to dominate his portfolio is akin to suggesting that the Bulls trade Michael Jordan because he has become so important to the team.

只要执行得当，运用这样投资策略的投资人到最后会发现，少数几家公司的股份将会占他投资组合的一大部分，这样的方式就好象一个人买下假设一群极具潜力的大学明星篮球队员20%的未来权益，其中有一小部份的球员可能可以进到NBA殿堂打球，那么投资人会发现其因此从中收取的权利金将会占其收入的绝大部分，要是有人建议把这部份的权益转让掉就好象是要公牛队把麦可乔登交易出去一样，只因为他对球队来说实在是太重要了。

In studying the investments we have made in both subsidiary companies and common stocks, you will see that we favor businesses and industries unlikely to experience major change. The reason for that is simple: Making either type of purchase, we are searching for operations that we believe are virtually certain to possess enormous competitive strength ten or twenty years from now. A fast-changing industry environment may offer the chance for huge wins, but it precludes the certainty we seek.

不管是研究买下整家公司或股票投资时，大家会发现我们偏爱变化不大的公司与产业，原因很简单，我们希望买到的公司是能够持续拥有竞争优势达十年或二十年以上者，变迁快速的产业环境或许可能让人一夕之间大发利市，但却无法提供我们想要的稳定性。

I should emphasize that, as citizens, Charlie and I welcome change: Fresh ideas, new products, innovative processes and the like cause our country's standard of living to rise, and that's clearly good. As investors, however, our reaction to a fermenting industry is much like our attitude toward space exploration: We applaud the endeavor but prefer to skip the ride.

另一方面我必须强调的是，身为公民的一份子，查理跟我相当欢迎改变，因为新的观念、新的产品或创新的方法可以提升我们的生活水准，这点很明显的对我们有好处，不过身为投资人对于热门流行产业的态度就好象在太空探险一样，对于这种勇猛的行为我们给予喝采，但是若要我们自己上场，那就再说吧!

Obviously all businesses change to some extent. Today, See's is different in many ways from what it was in 1972 when we bought it: It offers a different assortment of candy, employs different machinery and sells through different distribution channels. But the reasons why people today buy boxed chocolates, and why they buy them from us rather than from someone else, are virtually unchanged from what they were in the 1920s when the See family was building the business. Moreover, these motivations are not likely to change over the next 20 years, or even 50.

当然所有的产业都会变化，在今日喜斯糖果的经营形态与我们当初在1972年买下这家公司时又有很大的不同，喜斯提供了更多样的糖果、生产设备与销售通路也大不相同，不过人们为什么要购买盒装巧克力的动机，与购买盒装巧克力又为什么一定要选择喜斯的原因，自从喜斯在1920年代由喜太太家族创立以来就从来没有变过，而我想这原因在往后20年，乃至于50年都不会有所改变。

We look for similar predictability in marketable securities. Take Coca-Cola: The zeal and imagination with which Coke products are sold has burgeoned under Roberto Goizueta, who has done an absolutely incredible job in creating value for his shareholders. Aided by Don Keough and Doug Ivester, Roberto has rethought and improved every aspect of the company. But the fundamentals of the business - the qualities that underlie Coke's competitive dominance and stunning economics - have remained constant through the years.

在买进股票时我们同样的也追求可预测的未来，以可口可乐来说，可口可乐产品所代表的热情与想象在总裁古崔塔的带领下升华到极点，此举为公司股东创造出可观的价值，在Don Keough与Doug Ivester的协助之下，古崔塔从头到尾重新塑造公司的每一部份，不过这家公司的本质-可口可乐强力的竞争优势与主导性，多年来却从未改变。

I was recently studying the 1896 report of Coke (and you think that you are behind in your reading!). At that time Coke, though it was already the leading soft drink, had been around for only a decade. But its blueprint for the next 100 years was already drawn. Reporting sales of $148,000 that year, Asa Candler, the company's president, said: "We have not lagged in our efforts to go into all the world teaching that Coca-Cola is the article, par excellence, for the health and good feeling of all people." Though "health" may have been a reach, I love the fact that Coke still relies on Candler's basic theme today - a century later. Candler went on to say, just as Roberto could now, "No article of like character has ever so firmly entrenched itself in public favor." Sales of syrup that year, incidentally, were 116,492 gallons versus about 3.2 billion in 1996.

最近我正在研读可口可乐1896年的年报(所以大家现在看我们的年报应该还不嫌太晚)，虽然当时可口可乐已经成为冷饮市场的领导者，但那也不过只有十年的光景，然而在当时该公司却早已规划好未来的百年大计，面对年仅14.8万美元的销售额，公司总裁Asa Candler表示：「我们从没有放弃告诉全世界，可口可乐是能够提升人类健康与快乐、最卓越超凡的一件东西。」虽然我认为健康这档子事还有待努力，但我很高兴可口可乐在一百年后的今天，始终还是遵循Candler当初立下的愿景，Candler又继续谈到：「没有其它东西的味道能够像可乐一样深植人心。」当年的可乐糖浆销售量不过只有11.6万加仑，时至今日，销售量已达到32亿加仑。

I can't resist one more Candler quote: "Beginning this year about March 1st . . . we employed ten traveling salesmen by means of which, with systematic correspondence from the office, we covered almost the territory of the Union." That's my kind of sales force.

我实在忍不住想要在引用Candler的另一段话：「从今年三月开始，我们雇用了十位业务员，在与总公司保持密切联系下巡回各地推销产品，基本上我们的业务范围已涵盖整个美联共和国。」这才是我心目中的销售力量。

Companies such as Coca-Cola and Gillette might well be labeled "The Inevitables." Forecasters may differ a bit in their predictions of exactly how much soft drink or shaving-equipment business these companies will be doing in ten or twenty years. Nor is our talk of inevitability meant to play down the vital work that these companies must continue to carry out, in such areas as manufacturing, distribution, packaging and product innovation. In the end, however, no sensible observer - not even these companies' most vigorous competitors, assuming they are assessing the matter honestly - questions that Coke and Gillette will dominate their fields worldwide for an investment lifetime. Indeed, their dominance will probably strengthen. Both companies have significantly expanded their already huge shares of market during the past ten years, and all signs point to their repeating that performance in the next decade.

像可口可乐与吉列这类的公司应该可以被归类为"永恒的持股"，分析师对于这些公司在未来一、二十年饮料或刮胡刀市场的预测可能会有些许的不同，而我们所说的永恒并不意味这些公司可以不必继续贯彻在制造、配销、包装与产品创新上的努力，只是就算是最没有概念的观察家或甚至是其最主要的竞争对手，也不得不承认可口可乐与吉列，在终其一生的投资生涯，仍将在其各自的领域中独领风骚，甚至于他们的优势还有可能会继续增强，过去十年来，两家公司在原有极大的市占率又扩大许多，而所有的迹象显示，在往后的十年间，他们还会继续以此态势扩大版图。

Obviously many companies in high-tech businesses or embryonic industries will grow much faster in percentage terms than will The Inevitables. But I would rather be certain of a good result than hopeful of a great one.

当然比起一些具爆发性高科技或新创的事业来说，这些被永恒持股公司的成长力略显不足，但与其两鸟在林，还不如一鸟在手。

Of course, Charlie and I can identify only a few Inevitables, even after a lifetime of looking for them. Leadership alone provides no certainties: Witness the shocks some years back at General Motors, IBM and Sears, all of which had enjoyed long periods of seeming invincibility. Though some industries or lines of business exhibit characteristics that endow leaders with virtually insurmountable advantages, and that tend to establish Survival of the Fattest as almost a natural law, most do not. Thus, for every Inevitable, there are dozens of Impostors, companies now riding high but vulnerable to competitive attacks. Considering what it takes to be an Inevitable, Charlie and I recognize that we will never be able to come up with a Nifty Fifty or even a Twinkling Twenty. To the Inevitables in our portfolio, therefore, we add a few "Highly Probables."

虽然查理跟我本人终其一生追求永恒的持股，但能够真正让我们找到的却属鳞毛凤角，光是取得市场领导地位并不足以保证成功，看看过去几年来通用汽车、IBM与西尔斯这些公司，都曾是领导一方的产业霸主，在所属的产业都被赋予其无可取代的优势地位，大者恒存的自然定律似乎牢不可破，但实际结果却不然，也因此在找到真正的真命天子之前，旁边可能还有好几打假冒者，这些公司虽然曾经红极一时，但却完全经不起竞争的考验，换个角度来看，既然能够被称为永恒的持股，查理跟我早就有心理准备，其数量绝对不可能超过五十家或甚至是不到二十家，所以就我们的投资组合来说，除了几家真正够格的公司之外，还有另外几家则是属于极有可能的潜在候选人。

You can, of course, pay too much for even the best of businesses. The overpayment risk surfaces periodically and, in our opinion, may now be quite high for the purchasers of virtually all stocks, The Inevitables included. Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.

当然有时你也很有可能以过高的价格买下一家好的公司，这种风险并不是没有，而以我个人的看法，像现在的时机买任何股票就都有可能必须承担这样的风险，当然也包含永恒的持股在内，在过热的股市进场买股票的投资人必须要先做好心理准备，那就是对于付出高价买进的优良企业来说，必须要有更长的一段时间才有办法让他们的价值得以彰显。

A far more serious problem occurs when the management of a great company gets sidetracked and neglects its wonderful base business while purchasing other businesses that are so-so or worse. When that happens, the suffering of investors is often prolonged. Unfortunately, that is precisely what transpired years ago at both Coke and Gillette. (Would you believe that a few decades back they were growing shrimp at Coke and exploring for oil at Gillette?) Loss of focus is what most worries Charlie and me when we contemplate investing in businesses that in general look outstanding. All too often, we've seen value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander. That's not going to happen again at Coke and Gillette, however - not given their current and prospective managements.

有一个问题倒是很值得注意，那就是有一些体质原本不错的公司，由于经营阶层规划的方向产生偏差，将原本良好的本业基础弃之不顾，反而跑去购并一堆平凡普通的公司，当这种状况发生时，其投资人所须承受的煎熬便会加重加长，而不幸的这正是几年前发生在可口可乐与吉列身上的惨事，(大家可以想象十几年前，可口可乐大举投入养虾事业，而吉列竟热衷于石油探勘吗?)，失去聚焦是查理跟我在思考是否投资一些外表看起来很不错的公司时最关心的重点，我想傲慢或不甘寂寞的出现，使得这些经理人胡思乱想进而导致企业的价值停滞不前，这种情形屡见不鲜，不过还好这种情况应该不会再在可口可乐与吉列现在与未来储备的管理阶层身上发生。

Let me add a few thoughts about your own investments. Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.

对于各位个人的投资方式，让我提供一点心得给各位参考，大部分的投资人，不管法人或是散户，可能会认为投资股票最好的方式是直接去买手续费低廉的指数型基金，当然这样的做法所得到的结果(在扣除相关手续费用之后)，应该可以很轻易地击败市场上大部分的投资专家。

Should you choose, however, to construct your own portfolio, there are a few thoughts worth remembering. Intelligent investing is not complex, though that is far from saying that it is easy. What an investor needs is the ability to correctly evaluate selected businesses. Note that word "selected": You don't have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.

其实你也可以选择建立自己的投资组合，但有几点是大家必须特别注意的，智能型投资并不复杂，当然它也不是一件容易的事，投资人真正需要具备的是给予所选择的企业正确评价的能力，请特别注意"所选择"这个字，你不必像很多专家一样同时研究许多家公司，相反的你要做的只是选择少数几家在你能力范围之内的公司就好，能力范围的大小并不重要，要紧的是你要很清楚自己的能力范围。

To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices.

投资要成功，你不需要研究什么是Beta值、效率市场、现代投资组合理论、选择权定价或是新兴市场，事实上大家最好不要懂得这一些理论，当然我这种看法与目前以这些课程为主流的学术界有明显不同，就我个人认为，有志从事投资的学生只要修好两门课程-亦即"如何给予企业正确的评价"以及"思考其与市场价格的关系"即可。

Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards - so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.

身为一位投资人，大家其实只要以合理的价格买进一些很容易了解且其盈余在未来五到十年内会大幅成长的企业的部份股权，当然一段时间下来，你会发现只有少数几家公司符合这样的标准，所以要是你真的找到这样的公司，那就一定要买进足够份量的股权，在这期间，你必须尽量避免自己受到外界诱惑而偏离这个准则，如果你不打算持有一家公司股份十年以上，那最好连十分钟你都不要拥有它，在慢慢找到这样盈余加总能持续累积的投资组合后，你就会发现其市值也会跟着稳定增加。

Though it's seldom recognized, this is the exact approach that has produced gains for Berkshire shareholders: Our look-through earnings have grown at a good clip over the years, and our stock price has risen correspondingly. Had those gains in earnings not materialized, there would have been little increase in Berkshire's value.

虽然我们很少承认，但这正是Berkshire股东累积财富的唯一方式，我们的透视盈余在过去几年间大幅跃进，而同期间我们的股票价格也跟着大涨，要不是我们的盈余大幅增加，Berkshire所代表的价值就不可能大幅成长。

The greatly enlarged earnings base we now enjoy will inevitably cause our future gains to lag those of the past. We will continue, however, to push in the directions we always have. We will try to build earnings by running our present businesses well - a job made easy because of the extraordinary talents of our operating managers - and by purchasing other businesses, in whole or in part, that are not likely to be roiled by change and that possess important competitive advantages.

当然我们现在背负庞大的资金基础将无可避免地会影响到我们未来盈余成长的能力，但我们还是会按照和过去一致的方向，在现有的基础之上，这部份的难度较低，因为我们拥有一群杰出的经理人，同时继续买进全部或部份一些不会受外界环境影响且拥有竞争优势的新事业。

USAir美国航空

When Richard Branson, the wealthy owner of Virgin Atlantic Airways, was asked how to become a millionaire, he had a quick answer: "There's really nothing to it. Start as a billionaire and then buy an airline." Unwilling to accept Branson's proposition on faith, your Chairman decided in 1989 to test it by investing $358 million in a 9.25% preferred stock of USAir.

当Richard Branson-维京亚特兰大航空公司的老板被问到要如才能够变成一个百万富翁，他的回答很简单：其实也没有什么! 首先你要先成为一个亿万富翁，然后再去买一家航空公司就成了! 但由于各位的董事长-也就是我本人不信邪，所以我在1989年决定以3.58亿美元投资取得美国航空年利率9.25%的特别股。

I liked and admired Ed Colodny, the company's then-CEO, and I still do. But my analysis of USAir's business was both superficial and wrong. I was so beguiled by the company's long history of profitable operations, and by the protection that ownership of a senior security seemingly offered me, that I overlooked the crucial point: USAir's revenues would increasingly feel the effects of an unregulated, fiercely-competitive market whereas its cost structure was a holdover from the days when regulation protected profits. These costs, if left unchecked, portended disaster, however reassuring the airline's past record might be. (If history supplied all of the answers, the Forbes 400 would

consist of librarians.)

那时我相当喜爱同时也崇拜美国航空当时的总裁-Ed Colodny，直到现在仍是如此，不过我对于美国航空业的分析研究实在是过于肤浅且错误百出，我被该公司过去历年来的获利能力所蒙骗，同时过分相信特别股可以提供给我们在债权上的保护，以致于忽略了最关键的一点︰那就是美国航空的营收受到毫无节制的激烈价格竞争而大幅下滑的同时，其成本结构却仍旧停留在从前管制时代的高档，这样的高成本结构若不能找到有效解决的办法，将成为灾难的前兆，不管以前航空业曾经享有多么辉煌的历史(如果历史可以给人们所有的答案，那么富比士四百大富翁不就应该都是图书馆员了吗?)。

To rationalize its costs, however, USAir needed major improvements in its labor contracts - and that's something most airlines have found it extraordinarily difficult to get, short of credibly threatening, or actually entering, bankruptcy. USAir was to be no exception. Immediately after we purchased our preferred stock, the imbalance between the company's costs and revenues began to grow explosively. In the 1990-1994 period, USAir lost an aggregate of $2.4 billion, a performance that totally wiped out the book equity of its common stock.

要让成本结构合理化，美国航空必须大幅修改其劳资契约，不过这偏偏又是航空公司难以达成的罩门，除了公司真正面临倒闭的威胁或甚至是真的倒闭，而美国航空也不例外，就在我们投资该公司特别股不久之后，公司营收与支出的缺口突然开始大幅扩大，在1990年至1994年间，美国航空累计亏损了24亿美元，此举让公司普通股的股东权益几乎耗损殆尽。

For much of this period, the company paid us our preferred dividends, but in 1994 payment was suspended. A bit later, with the situation looking particularly gloomy, we wrote down our investment by 75%, to $89.5 million. Thereafter, during much of 1995, I offered to sell our shares at 50% of face value. Fortunately, I was unsuccessful.

在这段期间内，美国航空还是继续支付特别股股利给我们，直到1994年才停止，也因此在不久后，由于该公司前景展望不太乐观，我们决定将美国航空特别股投资的帐面价值调减75%，只剩下8,950万美元，从而到了1995年，我甚至对外提出以面额50%的折价，打算出售这笔投资，所幸最后并没有成功出脱。

Mixed in with my many mistakes at USAir was one thing I got right: Making our investment, we wrote into the preferred contract a somewhat unusual provision stipulating that "penalty dividends" - to run five percentage points over the prime rate - would be accrued on any arrearages. This meant that when our 9.25% dividend was omitted for two years, the unpaid amounts compounded at rates ranging between 13.25% and 14%.

幸运的是在投资美国航空所犯的一连串错误当中，我总算做对了一件事，那就是当初在投资时，我们在特别股投资合约当中，特地加了一项"惩罚股息"条款，也就是说万一该公司延迟支付股息的话，除原有欠款外，还必须外加依基本利率5%的利息，也就是说因为这两年我们没有收到9.25%的股息，所以以后美国航空必须就未支付的款项加计13.25%与14%的利息。

Facing this penalty provision, USAir had every incentive to pay arrearages just as promptly as it could. And in the second half of 1996, when USAir turned profitable, it indeed began to pay, giving us $47.9 million. We owe Stephen Wolf, the company's CEO, a huge thank-you for extracting a performance from the airline that permitted this payment. Even so, USAir's performance has recently been helped significantly by an industry tailwind that may be cyclical in nature. The company still has basic cost problems that must be solved.

面对这样的惩罚条款将督促美国航空尽快清偿对我们的欠款，而等到1996年下半年美国航空开始转亏为盈时，他们果真开始清偿这笔合计4,790万美元的欠款，为此我们特别要感谢美国航空现任总裁-Stephen Wolf，是他让这家落难的航空公司得以付出这笔钱，同时美国航空的表现也归因于航空业景气复苏，当然该公司还是有成本结构的问题有待解决。

In any event, the prices of USAir's publicly-traded securities tell us that our preferred stock is now probably worth its par value of $358 million, give or take a little. In addition, we have over the years collected an aggregate of $240.5 million in dividends (including $30 million received in 1997).

不过不论如何，目前美国航空普通股的市价显示我们所持有特别股的价值应该回复到3.58亿美元的面额左右，另外不要忘了，这几年来我们还陆陆续续从该公司收到2.4亿美元的股息(包含1997年的3,000万美元在内)。

Early in 1996, before any accrued dividends had been paid, I tried once more to unload our holdings - this time for about $335 million. You're lucky: I again failed in my attempt to snatch defeat from the jaws of victory.

在稍早1996年初，我们还尚未收到积欠的股息之前，我再度尝试以3.35亿美元把这笔投资卖掉，所幸这次的举动又没有成功，使得我们得以从胜利之神口中逃过失败的命运。

In another context, a friend once asked me: "If you're so rich, why aren't you smart?" After reviewing my sorry performance with USAir, you may conclude he had a point.

在另外一个场合，有一位朋友问我：「你很有钱，可是为什么还这么笨? 」在进一步检讨本人在美国航空这个案子上的表现后，你可能会觉得他说得很有道理。

Financings财务融资

We wrote four checks to Salomon Brothers last year and in each case were delighted with the work for which we were paying. I've already described one transaction: the FlightSafety purchase in which Salomon was the initiating investment banker. In a second deal, the firm placed a small debt offering for our finance subsidiary.

去年我们总共付了四次钱给所罗门兄弟公司，而很高兴每一张支票都代表着该公司为我们提供了不错的服务，先前我已经说明过其中的一项交易-那就是买进国际飞安公司的交易，所罗门担任这项交易的投资银行顾问，第二个案子是所罗门帮我们旗下的财务子公司安排了一项融资案。

Additionally, we made two good-sized offerings through Salomon, bothwith interesting aspects. The first was our sale in May of 517,500 shares of Class B Common, which generated net proceeds of $565 million. As I have told you before, we made this sale in response to the threatened creation of unit trusts that would have marketed themselves as Berkshire look-alikes. In the process, they would have used our past, and definitely nonrepeatable, record to entice naive small investors and would have charged these innocents high fees and commissions.

此外，透过所罗门我们完成另外两件案子，两者也都有相当有趣的特点，一件是在五月我们发行了517,500股的B级股，总共募得5.65亿美元的资金，关于这件案子，先前我就已经做过相关的说明，主要是因应坊间有些模仿Berkshire的基金，避免他们以Berkshire过去傲人的绩效记录对外吸引一些不知情的小额投资人，在收取高昂的手续费与佣金之后，却无法提供给投资人一个令人满意的投资结果。

I think it would have been quite easy for such trusts to have sold many billions of dollars worth of units, and I also believe that early marketing successes by these trusts would have led to the formation of others. (In the securities business, whatever can be sold will be sold.) The trusts would have meanwhile indiscriminately poured the proceeds of their offerings into a supply of Berkshire shares that is fixed and limited. The likely result: a speculative bubble in our stock. For at least a time, the price jump would have been self-validating, in that it would have pulled new waves of naive and impressionable investors into the trusts and set off still more buying of Berkshire shares.

我相信这些仿Berkshire基金可以很容易募得大笔的资金，而我也认为在这些基金成功募集到资金之后，一定还会有更多的基金跟进打着我们的旗号对外吸收资金，在证券业，没有什么是卖不掉的东西，而这些基金无可避免的会将所募得的资金大举投入到Berkshire现有少数的股票投资组合，最后的结果很可能是Berkshire本身以及其概念股股价暴涨而泡沫化，然后股价的上涨很可能又会吸引新一波的无知且敏感的投资人蜂拥投入这些基金，造成进一步的恶性循环。

Some Berkshire shareholders choosing to exit might have found that outcome ideal, since they could have profited at the expense of the buyers entering with false hopes. Continuing shareholders, however, e been burdened with both hundreds of thousands of unhappy, indirect owners (trustholders, that is) and a stained reputation.

有些Berkshire的股东可能会发现这是一个大好的机会，因为可以利用新加入者不当的预期而想要趁机出脱持股赚取额外的利益，但在此同时选择继续留下来的股东却必须承担后来的苦果，因为等到回归现实后，我们会发现Berkshire会有一群成千上万高档套牢的间接股东(亦即基金投资人)，以及受到毁损的企业清誉。

Our issuance of the B shares not only arrested the sale of the trusts, but provided a low-cost way for people to invest in Berkshire if they still wished to after hearing the warnings we issued. To blunt the enthusiasm that brokers normally have for pushing new issues - because that's where the money is - we arranged for our offering to carry a commission of only 1.5%, the lowest payoff that we have ever seen in a common stock underwriting. Additionally, we made the amount of the offering open-ended, thereby repelling the typical IPO buyer who looks for a short-term price spurt arising from a combination of hype and scarcity.

B级普通股的发行正可以抑止这些仿Berkshire基金的销售，同时提供小额投资人投资Berkshire的低成本管道，如果在他们听过我之前所提出的警告后仍执意要投资的话，而为了降低经纪人一般喜欢推销新股发行的习惯(因为这是真正有赚头的所在)，我们刻意将承销佣金降到1.5%，这是所有发行新股承销佣金最低的比率，此外我们对发行新股的数量不设上限，以避免一些专门投资初次上市股票抢帽子的投机客，利用新股数量稀少而刻意炒作赚取短期股价飙涨的差价。

Overall, we tried to make sure that the B stock would be purchased only by investors with a long-term perspective. Those efforts were generally successful: Trading volume in the B shares immediately following the offering - a rough index of "flipping" - was far below the norm for a new issue. In the end we added about 40,000 shareholders, most of whom we believe both understand what they own and share our time horizons.

总而言之，我们希望买进B级普通股的投资人是真正希望长期投资的，事实证明我们的做法相当成功，在公开发行后的B级普通股成交量(亦即代表换手的情形)远低于一般初次上市的股票，结果总计我们因此新增了40,000名的股东，我相信他们大部分都了解他们到底在投资什么，同时与我们拥有相同的经营理念。

Salomon could not have performed better in the handling of this unusual transaction. Its investment bankers understood perfectly what we were trying to achieve and tailored every aspect of the offering to meet these objectives. The firm would have made far more money - perhaps ten times as much - if our offering had been standard in its make-up. But the investment bankers involved made no attempt to tweak the specifics in that direction. Instead they came up with ideas that were counter to Salomon's financial interest but that made it much more certain Berkshire's goals would be reached. Terry Fitzgerald captained this effort, and we thank him for the job that he did.

在这次不常见的交易中，所罗门的表现好得不能再好了，身为我们的投资银行，他们充分了解我们想要达成的目标，从而量身订做，提供符合我们需要的服务，事实上若是按照一般的标准模式，所罗门应该可以赚进更多钱，有可能比现在多十倍以上，不过他们并没有刻意引导我们这样子去做，相反地有时他们还是提出一些对自己本身利益冲突，但却有助于Berkshire达成目的的一些建议，感谢Terry这次为我们操刀所做的努力与贡献。

Given that background, it won't surprise you to learn that we again went to Terry when we decided late in the year to sell an issue of Berkshire notes that can be exchanged for a portion of the Salomon shares that we hold. In this instance, once again, Salomon did an absolutely first-class job, selling $500 million principal amount of five-year notes for $447.1 million. Each $1,000 note is exchangeable into 17.65 shares and is callable in three years at accreted value. Counting the original issue discount and a 1% coupon, the securities will provide a yield of 3% to maturity for holders who do not exchange them for Salomon stock. But it seems quite likely that the notes will be exchanged before their maturity. If that happens, our interest cost will be about 1.1% for the period prior to exchange.

基于这样的背景，大家不难想象当Berkshire决定发行以所持有的所罗门股份做为转换标的的可转换票券时，我们又再度找上Terry，再一次所罗门的表现一流，卖出以五年为期、总面额五亿美元的票券，共取得4.471亿美元的资金，每张面额1,000美元的票券可以转换成17.65股的所罗门股份，同时有权在三年后要求以帐面价值卖回，总计原先票面折价加上1%的票面利息，此证券可以给予到期不选择转换成所罗门股份的投资人3%的报酬率，不过我想投资人在到期前选择不转换的机率微乎其微，若果真如此，在转换前我们实际负担的利率成本大约在1.1%左右。

In recent years, it has been written that Charlie and I are unhappy about all investment-banking fees. That's dead wrong. We have paid a great many fees over the last 30 years - beginning with the check we wrote to Charlie Heider upon our purchase of National Indemnity in 1967 - and we are delighted to make payments that are commensurate with performance. In the case of the 1996 transactions at Salomon Brothers, we more than got our money's worth.

近年来，媒体不断报导查理跟我对于支付投资银行所有的费用都很感冒，这样的报导完全不对，事实上做过去三十年来，从1967年我们请Charlie Heider协助我们买下国家赔偿保险公司开始，我们就很乐于签支票给他们，只要他们所提供的服务与表现值得的话，而以1996年所罗门这次的案子来说，我们就觉得物超所值。

Miscellaneous其它事项

Though it was a close decision, Charlie and I have decided to enter the 20th Century. Accordingly, we are going to put future quarterly and annual reports of Berkshire on the Internet, where they can be accessed via http://www.berkshirehathaway.com. We will always "post" these reports on a Saturday so that anyone interested will have ample time to digest the information before trading begins. Our publishing schedule for the next 12 months is May 17, 1997, August 16, 1997, November 15, 1997, and March 14, 1998. We will also post any press releases that we issue.

虽然这个决定有点赶，查理跟我本人已决定正式跨入二十世纪，我们决定从现在开始将在公司网络上公布每季与每年最新的Berkshire年报，大家可以透过以下这个网址http://www.berkshirehathaway.com.找到相关的讯息，我们会固定选在星期六把报告摆上去，主要的目的是希望大家能够有充足的时间在股市开盘做出进出的决定，预计未来一年内公布报告的时间为1997年5月17日、8月16日、11月15日以及1998年3月14日，同时网站上也会有我们对外发布的其它公开讯息。

At some point, we may stop mailing our quarterly reports and simply post these on the Internet. This move would eliminate significant costs. Also, we have a large number of "street name" holders and have found that the distribution of our quarterlies to them is highly erratic: Some holders receive their mailings weeks later than others.

在此同时，我们也将停止过去邮寄每季季报的习惯，而直接将它们公布在公司网站上，此举不但可以大幅减少邮寄的成本，同时也因为我们有一些股东的股份是登记在别人的名下，这使得季报最后送到真正股东手上的时间很不一定，有的股东收到报告的时间整整比其它股东晚了好几个礼拜。

The drawback to Internet-only distribution is that many of our shareholders lack computers. Most of these holders, however, could easily obtain printouts at work or through friends. Please let me know if you prefer that we continue mailing quarterlies. We want your input - starting with whether you even read these reports - and at a minimum will make no change in 1997. Also, we will definitely keep delivering the annual report in its present form in addition to publishing it on the Internet.

当然透过网络公布也有一个很大的缺点，那就是许多我们的股东从来不使用计算机，当然大家还是可以透过同事或朋友的帮助把它们给打印下来，如果大家觉得还是用寄得比较好的话可以向我反应，我们很想听听大家的意见，至少在1997年还是会持续原来的做法，另外必须强调的是，每年的年报除了在网络上公布之外，依然还是会用邮寄的方式送到各位的手上。

About 97.2% of all eligible shares participated in Berkshire's 1996 shareholder-designated contributions program. Contributions made were $13.3 million, and 3,910 charities were recipients. A full description of the shareholder-designated contributions program appears on pages 48-49.

大约有97.2%的有效股权参与1996年的股东指定捐赠计划，总计约1,330万美元捐出的款项分配给3,910家慈善机构，详细的名单参阅附录。

Every year a few shareholders miss out on the program because they don't have their shares registered in their own names on the prescribed record date or because they fail to get the designation form back to us within the 60-day period allowed. This is distressing to Charlie and me. But if replies are received late, we have to reject them because we can't make exceptions for some shareholders while refusing to make them for others.

每年都有一小部份的股东由于没有将股份登记在本人的名下，或是没能在60天的期限内，将指定捐赠的表格送回给我们，而没办法参加我们的指定捐赠计画，对此查理跟我感到相当头痛，不过我们必须忍痛将这些指定捐赠剔除，因为我们不可能在拒绝其它不符合规定股东的同时，还破例让这些人参与。

To participate in future programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 1997, will be ineligible for the 1997 program. When you get the form, return it promptly so that it does not get put aside or forgotten.

想要参加这项计画者，请必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在1997年8月31日之前完成登记，才有权利参与1997年的捐赠计画，当你收到表格后，请立即填写后寄回，以免被丢在一旁给忘记了。

The Annual Meeting股东年会

Our capitalist's version of Woodstock -the Berkshire Annual Meeting-will be held on Monday, May 5. Charlie and I thoroughly enjoy this event, and we hope that you come. We will start at 9:30 a.m., break for about 15 minutes at noon (food will be available - but at a price, of course), and then continue talking to hard-core attendees until at least 3:30. Last year we had representatives from all 50 states, as well as Australia, Greece, Israel, Portugal, Singapore, Sweden, Switzerland, and the United Kingdom. The annual meeting is a time for owners to get their business-related questions answered, and therefore Charlie and I will stay on stage until we start getting punchy. (When that happens, I hope you notice a change.)

资本家版的伍斯达克音乐会-Berkshire股东年会将在五月五日星期一举行，查理跟我实在是很喜欢这场盛会，所以我们很希望大家都能来，会议预计从早上9点半正式开始，中午休息15分钟(现场备有餐点，不过必须付费)，然后会继续与许多死忠的股东谈到下午三点半，去年全美50州都有股东代表出席，另外还有来自海外地区，如澳洲、希腊、以色列、葡萄牙、新加坡、瑞典、瑞士以及英国等国家，股东年会是公司股东可以得到有关公司经营所有问题解答的场合，所以查理跟我一定会竭尽所能地回答各位提出的问题，直到我们头昏脑胀为止(如果查理跟我有异状时，希望各位能及时发现)。

Last year we had attendance of 5,000 and strained the capacity of the Holiday Convention Centre, even though we spread out over three rooms. This year, our new Class B shares have caused a doubling of our stockholder count, and we are therefore moving the meeting to the Aksarben Coliseum, which holds about 10,000 and also has a huge parking lot. The doors will open for the meeting at 7:00 a.m., and at 8:30 we will - upon popular demand - show a new Berkshire movie produced by Marc Hamburg, our CFO. (In this company, no one gets by with doing only a single job.)

去年总共有5,000名股东与会，虽然我们预先另外准备了三间小会议室，不过还是把当时的会场- Holiday会议中心给挤爆了，今年由于发行B级普通股的关系使得我们的股东人数又增加了整整一倍，因此我们决定把开会的场地移到可以容纳10,000人同时备有宽广停车场的阿肯萨本体育馆，大门会在当天早上七点开放，同时在八点半，我们会播放由财务长Marc Hamburg制作的全新Berkshire电影短片供大家欣赏(在Berkshire所有人都必须身兼数职)。

Overcoming our legendary repugnance for activities even faintly commercial, we will also have an abundant array of Berkshire products for sale in the halls outside the meeting room. Last year we broke all records, selling 1,270 pounds of See's candy, 1,143 pairs of Dexter shoes, $29,000 of World Books and related publications, and 700 sets of knives manufactured by our Quikut subsidiary. Additionally, many shareholders made inquiries about GEICO auto policies. If you would like to investigate possible insurance savings, bring your present policy to the meeting. We estimate that about 40% of our shareholders can save money by insuring with us. (We'd like to say 100%, but the insurance business doesn't work that way: Because insurers differ in their underwriting judgments, some of our shareholders are currently paying rates that are lower than GEICO's.)

为了克服大家对于商业气息的厌恶，我们在会场外大厅备有Berkshire各式各样的产品供大家选购，去年我们打破记录，总共卖出1,270磅的糖果、1,143双的鞋子以及价值超过29,000美元的世界百科全书与相关出版品，外加700只由旗下子公司Quikut所生产的小刀，另外在现场许多股东询问有关GEICO汽车保险的信息，如果你想在汽车保险费上省一笔钱，记得把你现在的保单带到现场，我们估计至少有40%的股东可以因此而节省不少保费(我很想说100%，不过保险业实务的经营并非如此，因为每家保险业者对于风险的估计都不同，事实上，我们有些股东支付的保费就比跟GEICO投保要来得低)。

An attachment to the proxy material enclosed with this report explains how you can obtain the card you will need for admission to the meeting. We expect a large crowd, so get both plane and hotel reservations promptly. American Express (800-799-6634) will be happy to help you with arrangements. As usual, we will have buses servicing the larger hotels to take you to and from the meeting, and also to take you to Nebraska Furniture Mart, Borsheim's and the airport after it is over.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，美国运通(电话800-799-6634)将会很高兴为您提供相关安排服务，如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场。

NFM's main store, located on a 75-acre site about a mile from Aksarben, is open from 10 a.m. to 9 p.m. on weekdays, 10 a.m. to 6 p.m. on Saturdays, and noon to 6 p.m. on Sundays. Come by and say hello to "Mrs. B" (Rose Blumkin). She's 103 now and sometimes operates with an oxygen mask that is attached to a tank on her cart. But if you try to keep pace with her, it will be you who needs oxygen. NFM did about $265 million of business last year - a record for a single-location home furnishings operation - and you'll see why once you check out its merchandise and prices.

占地75英亩的NFM主馆距离会场约1英哩远，营业时间平日从早上10点到下午9点，星期六从早上10点到下午6点，星期日则从中午开到下午6点，记得去向Rose Blumkin-B太太问好，她今年高龄103岁，有时还会戴上氧气罩在轮椅上工作，不过如果你想要跟得上她的脚步，需要氧气的可能是你，NFM去年的营业额高达2.65亿美元，这是全美单一家具店营业的新高记录，记得去现场查一查商品的种类与标价，你就会知道原因了。

Borsheim's normally is closed on Sunday but will be open for shareholders from 10 a.m. to 6 p.m. on May 4th. Last year on "Shareholder Sunday" we broke every Borsheim's record in terms of tickets, dollar volume and, no doubt, attendees per square inch. Because we expect a capacity crowd this year as well, all shareholders attending on Sunday must bring their admission cards. Shareholders who prefer a somewhat less frenzied experience will get the same special treatment on Saturday, when the store is open from 10 a.m. to 5:30 p.m., or on Monday between 10 a.m. and 8 p.m. Come by at any time this year and let Susan Jacques, Borsheim's CEO, and her skilled associates perform a painless walletectomy on you.

平时礼拜天不营业的波仙珠宝，特地在五月四日股东会当天会为股东与来宾开放，从中午开到下午6点，去年在星期六股东会前一天，我们打破了波仙单日的订单量与营业额记录，当然还包括每平方英吋的参观人数记录，今年我们考量到参观人数还会再增加，所以大家在当天一定要准备好入场证，当然不想人挤人的股东可以选择在前一天或后一天前往参观，星期六从早上10点开到下午5点半，星期一则从早上10点开到晚上8点，无论如何今年大家一定要来看看波仙的总裁Susan是如何施展她的技巧将你的荷包给掏空。

My favorite steakhouse, Gorat's, was sold out last year on the weekend of the annual meeting, even though it added an additional seating at 4 p.m. on Sunday. You can make reservations beginning on April 1st (but not earlier) by calling 402-551-3733. I will be at Gorat's on Sunday after Borsheim's, having my usual rare T-bone and double order of hashbrowns. I can also recommend - this is the standard fare when Debbie Bosanek, my invaluable assistant, and I go to lunch - the hot roast beef sandwich with mashed potatoes and gravy. Mention Debbie's name and you will be given an extra boat of gravy.

我个人最爱的牛排馆-Gorat's去年在股东年会的那个周末完全客满，虽然临时还在星期天下午四点多排出的一个空档，今年该餐厅从四月一号开始接受预订(电话402-551-3733)，我会在星期天参加完波仙珠宝的活动后到Gorat's享用我最常点的丁骨牛排加上双份的肉丸，当然我也推荐我的宝贝助理Debbie标准的菜单-生烤牛肉三明治外加马铃薯泥与肉汤，记得报上Debbie的名号，你就可以多得到一碗肉汤。

The Omaha Royals and Indianapolis Indians will play baseball on Saturday evening, May 3rd, at Rosenblatt Stadium. Pitching in my normal rotation - one throw a year - I will start.

在前一天5月3日，星期六晚上，Rosenblatt体育馆将会有一场奥玛哈皇家队对印第安纳拿波里市印第安人队的比赛，一如往年轮到由我先发，每一年就投那么一球。

Though Rosenblatt is normal in appearance, it is anything but: The field sits on a unique geological structure that occasionally emits short gravitational waves causing even the most smoothly-delivered pitch to sink violently. I have been the victim of this weird phenomenon several times in the past but am hoping for benign conditions this year. There will be lots of opportunities for photos at the ball game, but you will need incredibly fast reflexes to snap my fast ball en route to the plate.

虽然Rosenblatt球场的外观看起来与其它球场没有多大的不同，不过它的投手丘地形却相当特殊，有时会发出特殊的重力短波，导致本来很平稳投出的球突然急速往下坠，过去有好几次我都成为这种怪异自然现象的受害者，不过我还是希望今年的情况会好一点，虽然当天会场有许多拍照的机会，不过我还是奉劝大家的快门要抓准一点，才能完整捕捉由我投出向本垒板急速奔去的快速球。

Our proxy statement includes information about obtaining tickets to the game. We will also provide an information packet listing restaurants that will be open on Sunday night and describing various things that you can do in Omaha on the weekend. The entire gang at Berkshire looks

forward to seeing you.

股东会资料将告诉大家如何取得球赛入场的门票，同时我们也会提供星期天晚上会开张的餐厅信息，同时列出假日期间在奥玛哈你可以从事的活动介绍，Berkshire总部所有成员都期待能够见到大家。

一九九七

Our gain in net worth during 1997 was $8.0 billion, which increased the per-share book value of both our Class A and Class Bstock by 34.1%. Over the last 33 years (that is, since present management took over) per-share book value has grown from $19 to $25,488, a rate of 24.1% compounded annually.(1)

1997年本公司的净值增加了80亿美元，每股帐面净值不管是A级股或B级股皆成长了34.1%，总计过去33年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的25,488美元，年复合成长率约为24.1%*。

1. All figures used in this report apply to Berkshire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30ththat of the A.

*1在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股拥有A级普通股三十分之一的权利。

Given our gain of 34.1%, it is tempting to declare victory and move on. But last year's performance was no great triumph: Any investor can chalk up large returns when stocks soar, as they did in 1997. In a bull market, one must avoid the error of the preening duck that quacks boastfully after a torrential rainstorm, thinking that its paddling skills have caused it to rise in the world. A right-thinking duck would instead compare its position after the downpour to that of the other ducks on the pond.

看到我们高达34.1%的超高报酬率，大家可能忍不住要高呼胜利口号，并勇往前进，不过若是考量去年股市的状况，任何一个投资人都能靠着股票的飙涨而大赚一票，面对多头的行情，大家一定要避免成为一只呱呱大叫的骄傲鸭子，以为是自己高超的泳技让他冲上了天，殊不知面对狂风巨浪，小心的鸭子反而会谨慎地看看大浪过后，其它池塘里的鸭子都到哪里去了。

So what's our duck rating for 1997? The table on the facing page shows that though we paddled furiously last year, passive ducks that simply invested in the S&P Index rose almost as fast as we did. Our appraisal of 1997's performance, then: Quack.

那么我们这只鸭子在1997年的表现又如何呢? 报表显示虽然去年我们拼命的向前划，不过到最后我们发现其它被动投资S&P 500指数的鸭子的表现一点也不比我们差，所以总结我们在1997年的表现是︰呱呱!

When the market booms, we tend to suffer in comparison with the S&P Index. The Index bears no tax costs, nor do mutual funds, since they pass through all tax liabilities to their owners. Last year, on the other hand, Berkshire paid or accrued $4.2 billion for federal incometax, or about 18% of our beginning net worth.

当股市正热时，相较于S&P 500指数，我们比较吃亏，因为指数或共同基金不必负担租税成本，他们可以直接将税负转嫁到投资人的身上，相对地在另一方面Berkshire光是去年就必须认为高达42亿美元的联邦所得税，这相当于我们年初净值的18%。

Berkshire will always have corporate taxes to pay, which means it needs to overcome their drag in order to justify its existence. Obviously, Charlie Munger, Berkshire's Vice Chairman and my partner, and I won't be able to lick that handicap every year. But we expect over time to maintain a modest advantage over the Index, and that is the yardstick against which you should measure us. We will not ask you to adopt the philosophy of the Chicago Cubs fan who reacted to a string of lackluster seasons by saying, "Why get upset? Everyone has a bad century now and then."

由于Berkshire必须要负担企业所得税，所以为了要证明其存在的意义，它就一定要能够克服这先天的障碍，不过很显然的Berkshire的主要合伙人查理曼格跟我很难每年都打败这样的差杆，当然就长期而言，我们还是预期Berkshire能够打败大盘指数，这也是大家可以评断我们表现的最低标准，我想我们应该不会让大家像芝加哥小熊队球迷在面对连续几个战绩不佳球季时，自我调侃所说的︰有什么好沮丧的?? 谁都可能有不好过的一世纪。

Gains in book value are, of course, not the bottom line at Berkshire. What truly counts are gains in per-share intrinsic business value. Ordinarily, though, the two measures tend to move roughly in tandem, and in 1997 that was the case: Led by a blow-out performance at GEICO, Berkshire's intrinsic value (which far exceeds book value) grew at nearly the same pace as book value.

帐面净值的增加当然不是经营Berkshire的最终目标，因为真正重要的是每股实质价值，虽然在Berkshire通常两者会以相当接近的频率波动，就像是1997年便是如此，受惠于GEICO爆炸性的成长，Berkshire的实质价值(远高于帐面价值)以接近帐面价值成长的幅度增加。

For more explanation of the term, intrinsic value, you may wish to refer to our Owner's Manual, reprinted on pages 62 to 71. This manual sets forth our owner-related business principles, information that is important to all of Berkshire's shareholders.

有关"实质价值"等名词的解释，请大家参阅股东手册，手册中揭示了本公司经营的宗旨，也包含了许多对Berkshire股东相当重要的信息。

In our last two annual reports, we furnished you a table that Charlie and I believe is central to estimating Berkshire's intrinsic value. In the updated version of that table, which follows, we trace our two key components of value. The first column lists our per-share ownership of investments (including cash and equivalents) and the second column shows our per-share earnings from Berkshire's operating businesses before taxes and purchase-accounting adjustments (discussed on pages 69 and 70), but after all interest and corporate expenses. The second column excludes all dividends, interest and capital gains that we realized from the investments presented in the first column. In effect, the columns show what Berkshire would look like were it split into two parts, with one entity holding our investments and the other operating all of our businesses and bearing all corporate costs.

在过去两年的年报中，我们提供给各位一张查理跟我认为最能够估计Berkshire实质价值的表，在下面这张更新过数字的表中，主要有两项跟价值息息相关的指标，第一栏是我们平均每股持有的投资金额(包含现金与约当现金)，第二栏则是每股在扣除利息与营业费用之后，来自本业的营业利益(但未扣除所得税与购买法会计调整数)，当然后者已经扣除了所有来自第一栏投资所贡献的股利收入、利息收入与资本利得，事实上，若是把Berkshire拆成两部份的话，就等于是一家持有我们投资部位的控股公司，以及另一家经营旗下所有事业负担全部成本盈亏的营利事业。

Pre-tax Earnings Per Share Investments Excluding All Income from Year Per Share Investments

1967
 
1977
 
1987
 
1997
 

$ 41
 
372
 
3,910
 
38,043
 

$ 1.09
 
12.44
 
108.14
 
717.82
 

Pundits who ignore what our 38,000 employees contribute to the company, and instead simply view Berkshire as a de facto investment company, should study the figures in the second column. We made our first business acquisition in 1967, and since then our pre-tax operating earnings have grown from $1 million to $888 million. Furthermore, as noted, in this exercise we have assigned all of Berkshire's corporate expenses -- overhead of $6.6 million, interest of $66.9 million and shareholder contributions of $15.4 million -- to our business operations, even though a portion of these could just as well have been assigned to the investment side.

对于那些无视于我们38,000名辛勤奉献员工的存在，而武断地将Berkshire当做是一家投资公司的乡野匹夫，应该要请他们看看第二栏的数字，打从1967年我们进行第一次的并购开始，本公司的税前营业盈余已从当时的100万美元成长到现在的8.88亿美元，这还是吸收了Berkshire全部的开销，包含660万美元的企业营运费用、6,690万美元的利息支出与1,540万美元的股东指定捐赠款后的结余，虽然这其中有一部份是与投资活动相关的支出。

Here are the growth rates of the two segments by decade:下表是这两个部门每十年的成长率︰

Pre-tax Earnings Per Share Investments Excluding All Income from Decade Ending Per Share Investments

1977 24.6% 27.6%             1987 26.5% 24.1%            1997 25.5% 20.8%

Annual Growth Rate, 1967-1997 25.6% 24.2%

During 1997, both parts of our business grew at a satisfactory rate, with investments increasing by $9,543 per share, or 33.5%, and operating earnings growing by $296.43 per share, or 70.3%. One important caveat: Because we were lucky in our super-cat insurance business (to be discussed later) and because GEICO's underwriting gain was well above what we can expect in most years, our 1997 operating earnings were much better than we anticipated and also more than we expect for 1998.

回顾1997年Berkshire两个部份都缴出漂亮的成绩单，每股投资金额增加了9,543美元，约33.5%；而每股营业盈余则增加了296.43美元，约70.3%，当然其中有一个很重要的关键，那就是我们的霹雳猫保险业务(后面还会在详加说明)的运气不错，同时GEICO保险的表现甚至优于以往，这使得1997年的营业表现超乎当初的预期，甚至超过未来1998年可能的表现。

Our rate of progress in both investments and operations is certain to fall in the future. For anyone deploying capital, nothing recedes like success. My own history makes the point: Back in 1951, when I was attending Ben Graham's class at Columbia, an idea giving me a $10,000 gain improved my investment performance for the year by a full 100 percentage points. Today, an idea producing a $500 million pre-tax profit for Berkshire adds one percentage point to our performance. It's no wonder that my annual results in the 1950s were better by nearly thirty percentage points than my annual gains in any subsequent decade. Charlie's experience was similar. We weren't smarter then, just smaller. At our present size, any performance superiority we achieve will be minor.

我相信未来不管是投资或营业盈余的成长速度一定会向下滑落，对于任何负责资金运用的人而言，成功必然导致衰退，就拿我个人的投资历史来说，回想当初我在1951年进入哥伦大学拜在葛拉汉名下时，只要抓住能够赚到1万美元的投资机会就能让我的投资绩效超过百分之百，不过时至今日，一笔能赚5亿美元的成功投资个案，也不过只能让Berkshire增加区区一个百分点的投资绩效，也难怪个人在1950年代早期的投资绩效会比接下来几十年的年度绩效差距达30个百分点以上，而查理本身的经历也很相似，不是我们变笨了，而是因为我们目前的规模实在是太大了，现在任何一项重大进展都会因为规模庞大的关系而显得微不足道。

We will be helped, however, by the fact that the businesses to which we have already allocated capital -- both operating subsidiaries and companies in which we are passive investors -- have splendid long-term prospects. We are also blessed with a managerial corps that is unsurpassed in ability and focus. Most of these executives are wealthy and do not need the pay they receive from Berkshire to maintain their way of life. They are motivated by the joy of accomplishment, not by fame or fortune.

当然只要我们投资的子公司以及股票具有远景，我们绝对能够因此受益，同时也要感谢旗下这群卓越的能力与专注力的经营管理团队，大家要知道这些经理人本身大多都已经很有钱了，根本就不需要靠Berkshire这份薪水过活，他们不为名，也不为利，纯粹是冲着那份成就感。

Though we are delighted with what we own, we are not pleased with our prospects for committing incoming funds. Prices are high for both businesses and stocks. That does not mean that the prices of either will fall -- we have absolutely no view on that matter -- but it does mean that we get relatively little in prospective earnings when we commit fresh money.

虽然对于现有的投资部位感到相当满意，但是我们也对于陆续进来的资金找不到理想的去路而感到忧心，目前不管是整家公司或是单一股票的市场价格都过高，但我并不是要预言股价将会下跌，我们从来就不对股市发表任何看法，这样说的意思只是要提醒大家未来新投入资金的预期报酬将会大大减少。

Under these circumstances, we try to exert a Ted Williams kind of discipline. In his book The Science of Hitting, Ted explains that he carved the strike zone into 77 cells, each the size of a baseball. Swinging only at balls in his "best" cell, he knew, would allow him to bat .400; reaching for balls in his "worst" spot, the low outside corner of the strike zone, would reduce him to .230. In other words, waiting for the fat pitch would mean a trip to the Hall of Fame; swinging indiscriminately would mean a ticket to the minors.

在这种情况下，我们试着学习职棒传奇明星Ted Williams的作法，在他的"打击的科学"一书中解释到，他把打击区域划分为77个框框，每个框框就约当一个棒球的大小，只有当球进入最理想的框框时，他才挥棒打击，因为他深深知道只有这样做，他才能维持四成的超高打击率，反之要是勉强去挥击较差的框框，将会使得他的打击率骤降到二成三以下，换句话说，只有耐心等待超甜的好球，才是通往名人堂的大道，好坏球照单全收的人，迟早会面临被降到小联盟的命运。

If they are in the strike zone at all, the business "pitches" we now see are just catching the lower outside corner. If we swing, we will be locked into low returns. But if we let all of today's balls go by, there can be no assurance that the next ones we see will be more to our liking. Perhaps the attractive prices of the past were the aberrations, not the full prices of today. Unlike Ted, we can't be called out if we resist three pitches that are barely in the strike zone; nevertheless, just standing there, day after day, with my bat on my shoulder is not my idea of fun.

目前迎面朝我们而来的"投"资机会大多只在好球带边缘，如果我们选择挥棒，则得到的成绩可能会不太理想，但要是我们选择放弃不打，则没有人敢跟你保证下一球会更好，或许过去那种吸引人的超低价格已不复存在，所幸我们不必像Ted Williams一样，可能因为连续三次不挥棒而遭三振出局，只是光是扛着棒子站在那里，日复一日，也不是一件令人感到愉快的事。

Unconventional Commitments非常态性投资

When we can't find our favorite commitment -- a well-run and sensibly-priced business with fine economics -- we usually opt to put new money into very short-term instruments of the highest quality. Sometimes, however, we venture elsewhere. Obviously we believe that the alternative commitments we make are more likely to result in profit than loss. But we also realize that they do not offer the certainty of profit that exists in a wonderful business secured at an attractive price. Finding that kind of opportunity, we know that we are going to make money -- the only question being when. With alternative investments, we think that we are going to make money. But we also recognize that we will sometimes realize losses, occasionally of substantial size.

有时我们的资金不一定能够找到最理想的去处-也就是经营良好、价码合理的企业，这时我们就会将资金投入到一些期间较短但品质不错的投资工具上，虽然我们很明白这样的做法可能无法像我们买进好公司那样稳健的获利，甚至在少数的状况下有可能赔大钱，不过总得来说我们相信赚钱的机率还是远高于赔钱，唯一的关键在于其获利何时能够实现。

We had three non-traditional positions at yearend. The first was derivative contracts for 14.0 million barrels of oil, that being what was then left of a 45.7 million barrel position we established in 1994-95. Contracts for 31.7 million barrels were settled in 1995-97, and these supplied us with a pre-tax gain of about $61.9 million. Our remaining contracts expire during 1998 and 1999. In these, we had an unrealized gain of $11.6 million at yearend. Accounting rules require that commodity positions be carried at market value. Therefore, both our annual and quarterly financial statements reflect any unrealized gain or loss in these contracts. When we established our contracts, oil for future delivery seemed modestly underpriced. Today, though, we have no opinion as to its attractiveness.

截至年底，我们总共有三项异于往常的投资，首先是1,400万桶的原油期货合约，这是我们在1994-1995年间所建立4,570万桶原油的剩余部位，预计在1998-1999年陆续到期，目前未实现获利约有1,160万美元，而已经结仓的3,170万桶原油合约总共贡献我们6,190万美元的获利，会计原则规定期货合约必须依市场价格评价，因此这些合约所有未实现的损益皆已反应在我们年度或每季的财务报表上，当初我们之所以会建立这些部位，主要考量当时的石油期货价位有些低估，至于现在的市场状况我们则没有任何意见。

Our second non-traditional commitment is in silver. Last year, we purchased 111.2 million ounces. Marked to market, that position produced a pre-tax gain of $97.4 million for us in 1997. In a way, this is a return to the past for me: Thirty years ago, I bought silver because I anticipated its demonetization by the U.S. Government. Ever since, I have followed the metal's fundamentals but not owned it. In recent years, bullion inventories have fallen materially, and last summer Charlie and I concluded that a higher price would be needed to establish equilibrium between supply and demand. Inflation expectations, it should be noted, play no part in our calculation of silver's value.

至于第二项则是白银，去年我们一口气买进总共1.112亿盎斯的白银，以目前的市价计算，总共贡献1997年9,740万美元的税前利益，某个角度来说，这仿佛又让我回到过去，记得在三十年前，我因为预期美国政府货币将自由化而买进白银，自此之后，我便一直追踪贵金属的基本面，只是并没有其它的买进动作，直到最近这几年，银条的存货突然大幅下滑，查理跟我得到一个结论，那就是白银的价格应该要稍微向上调整以维持供给与需求的平衡，至于一般人较注意的通膨预期则不在我们计算价值的范围之内。

Finally, our largest non-traditional position at yearend was $4.6 billion, at amortized cost, of long-term zero-coupon obligations of the U.S. Treasury. These securities pay no interest. Instead, they provide their holders a return by way of the discount at which they are purchased, a characteristic that makes their market prices move rapidly when interest rates change. If rates rise, you lose heavily with zeros, and if rates fall, you make outsized gains. Since rates fell in 1997, we ended the year with an unrealized pre-tax gain of $598.8 million in our zeros. Because we carry the securities at market value, that gain is reflected in yearend book value.

最后一项是46亿美元以帐面摊销长期的美国零息债券，这些债券不支付利息，相反的是以透过折价发行的方式回馈给债券持有人，也因此这类债券的价格会因市场利率变动而大幅波动，如果利率上升，持有零息债券的人可能损失惨重，反之若利率下跌，投资人就可能因此大赚一笔，而因为1997年的利率大幅下滑，所以光是1997年我们的未实现利益就高达5.98亿美元，这些利益已全数反应在公司年底的帐上。

In purchasing zeros, rather than staying with cash-equivalents, we risk looking very foolish: A macro-based commitment such as this never has anything close to a 100% probability of being successful. However, you pay Charlie and me to use our best judgment -- not to avoid embarrassment -- and we will occasionally make an unconventional move when we believe the odds favor it. Try to think kindly of us when we blow one. Along with President Clinton, we will be feeling your pain: The Munger family has more than 90% of its net worth in Berkshire and the Buffetts more than 99%.

当然不把现金好好的摆着而拿去投资零息债券不是没有风险的，这种基于总体经济分析的投资绝对不敢保证百分之百能够成功，不过查理跟我绝对会运用我们最佳的判断能力，大家可不是请我们来闲闲没事干，当我们认为胜算颇大时，我们就会大胆地去做一些异于往常的举动，当然万一不小心突锤时，还请大家多多包含，就如同柯林顿总统一样，我们绝对与各位感同身受，因为曼格家族有90%的资产系于Berkshire，而巴菲特家族更高达99%。

How We Think About Market Fluctuations我们对于股市波动的看法

A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? These questions, of course, answer themselves.

一则小谜语︰如果你打算一辈子吃汉堡维生，自己又没有养牛，那么你是希望牛肉价格上涨或是下跌呢? 同样的要是你三不五时会换车，自己又不是卖车的，你会希望车子的价格上涨或是下跌呢? 这些问题的答案很显然显而易见。

But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

最后我再问各位一个问题︰假设你预估未来五年内可以存一笔钱，那么你希望这期间的股票市场是涨还是跌? 这时许多投资人对于这个问题的答案就可能是错的，虽然他们在未来的期间内会陆续买进股票，不过当股价涨时他们会感到高兴，股价跌时反而觉得沮丧，这种感觉不等于是当你去买汉堡吃时，看到汉堡涨价却欣喜若狂，这样的反应实在是没有什么道理，只有在短期间准备卖股票的人才应该感到高兴，准备买股票的人应该期待的是股价的下滑。

For shareholders of Berkshire who do not expect to sell, the choice is even clearer. To begin with, our owners are automatically saving even if they spend every dime they personally earn: Berkshire "saves" for them by retaining all earnings, thereafter using these savings to purchase businesses and securities. Clearly, the more cheaply we make these buys, the more profitable our owners' indirect savings program will be.

对于不准备卖股票的Berkshire股东来说，这样的选择再明显也不过了，首先就算他们将赚来的每一分钱都花掉，Berkshire也会自动帮他们存钱，因为Berkshire会透过将所赚得的盈余再投资其它事业与股票，所以只要我们买进这些投资标的的成本越低，他们将来间接所获得的报酬自然而然就越高。

Furthermore, through Berkshire you own major positions in companies that consistently repurchase their shares. The benefits that
these programs supply us grow as prices fall: When stock prices are low, the funds that an investee spends on repurchases increase our ownership of that company by a greater amount than is the case when prices are higher. For example, the repurchases that Coca-Cola, The Washington Post and Wells Fargo made in past years at very low prices benefitted Berkshire far more than do today's repurchases, made at loftier prices.

此外，Berkshire许多重要的投资部位都持续不断地买回自家公司的股份，在这种情况下，股票价格越低对我们越有利，因为这代表同样的一笔钱可以买进更多的股份，从而间接提高我们持股的比例，举例来说，过去几年可口可乐、华盛顿邮报与富国银行皆以非常低的价格大量买回自家股票，其所带来的效益要比在现在的高价再进行要来得有利的多。

At the end of every year, about 97% of Berkshire's shares are held by the same investors who owned them at the start of the year. That makes them savers. They should therefore rejoice when markets decline and allow both us and our investees to deploy funds more advantageously.

每年度结束，大约有97%的Berkshire股东会选择继续持有本公司的股份，这些人都是储蓄爱好者，所以每当股市下跌时，他们都会感到高兴，因为这代表我们以及被投资公司的资金可以作更好的运用。

So smile when you read a headline that says "Investors lose as market falls." Edit it in your mind to "Disinvestors lose as market falls -- but investors gain." Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other. (As they say in golf matches: "Every putt makes someone happy.")

所以下次当你看到"股市爆跌-投资人损失不贷"的新闻头条时，就知道应该要改成"股市爆跌-不投资的人损失不贷而投资的人赚翻了"，虽然记者常常忘记这样的真理，不过只要有卖方就代表会有买方，一方损失就代表有另一方会得利，就像是高尔夫球场上常讲的，每当一个柏忌出现时，就会有人在旁边暗爽。

We gained enormously from the low prices placed on many equities and businesses in the 1970s and 1980s. Markets that then were hostile to investment transients were friendly to those taking up permanent residence. In recent years, the actions we took in those decades have been validated, but we have found few new opportunities. In its role as a corporate "saver," Berkshire continually looks for ways to sensibly deploy capital, but it may be some time before we find opportunities that get us truly excited.
当初我们靠着在1970与1980年代股价低迷时所做的一些投资，确实让我们赚了不少，这是一个对股市短暂过客不利却对股市长期住户有利的市场，近几年来，我们在那个年代所做的一些投资决策陆续获得了验证，不过现在我们却找不到类似的机会，身为企业资金的积蓄者，Berkshire致力于寻找资金合理运用的方法，不过以现在的状况来看，我们可能还需要一段时间才能再找到真正让我们感到兴奋的投资机会。

Insurance Operations -- Overview保险事业营运-总检讨

What does excite us, however, is our insurance business. GEICO is flying, and we expect that it will continue to do so. Before we expound on that, though, let's discuss "float" and how to measure its cost. Unless you understand this subject, it will be impossible for you to make an informed judgment about Berkshire's intrinsic value.

真正令我们感到兴奋的是保险事业的营运，GEICO正处于爆炸性的成长阶段，而且这种情况预期还会继续维持下去，在进一步说明之前，让我们先解释一下何谓浮存金，以及如何来衡量它的取得成本，因为除非你对于这个课题有所了解，否则你根本就不可能有办法对Berkshire实际的价值做合理的判断。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. Typically, this pleasant activity carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.

首先浮存金是一项我们持有但不属于我们的资金，在保险公司的营运中，浮存金的产生原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以因应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本若远高于货币市场利率时，它就像是一颗酸柠檬。

A caution is appropriate here: Because loss costs must be estimated, insurers have enormous latitude in figuring their underwriting results, and that makes it very difficult for investors to calculate a company's true cost of float. Estimating errors, usually innocent but sometimes not, can be huge. The consequences of these miscalculations flow directly into earnings. An experienced observer can usually detect large-scale errors in reserving, but the general public can typically do no more than accept what's presented, and at times I have been amazed by the numbers that big-name auditors have implicitly blessed. As for Berkshire, Charlie and I attempt to be conservative in presenting its underwriting results to you, because we have found that virtually all surprises in insurance are unpleasant ones.

有一点必须特别注意的是，因为损失成本必须仰赖估算，所以保险业者对于承保结算的成绩有相当大伸缩的空间，连带使得投资人很难正确地衡量一家保险公司真正的浮存金成本，估计错误，通常是无心，但有时却是故意，与真实的结果往往会有很大的差距，而这种结果直接反映在公司的损益表上，有经验的行家通常可以经由公司的准备提列情形发现重大的错误，但对于一般投资大众来说，除了被迫接受财务报表的数字之外，别无他法，而我个人常常被这些经过各大会计师事务所背书的财务报告所吓到，至于就Berkshire本身而言，查理跟我在编列财务报表时，都尽量采取最保守的做法，因为就我们个人的经验而言，保险业所发生的意外，通常都不是什么好消息。

As the numbers in the following table show, Berkshire's insurance business has been a huge winner. For the table, we have calculated our float -- which we generate in large amounts relative to our premium volume -- by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents' balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. Our cost of float is determined by our underwriting loss or profit. In those years when we have had an underwriting profit, such as the last five, our cost of float has been negative. In effect, we have been paid for holding money.

不过如同下表中的数字所显示的，Berkshire的保险事业可说是大获全胜，表中的浮存金，系将所有的损失准备、损失费用调整准备与未赚取保费加总后，再扣除应付佣金、预付购并成本及相关再保递延费用，相对于我们的保费收入总额，我们的浮存金部位算是相当大的，至于浮存金的成本则决定于所发生的承保损失或利益而定，在某些年度，就像是最近五年，由于我们有承保利益，所以换句话说，我们的资金成本甚至是负的，光是持有这些资金我们就已经开始让我们赚钱了。

1.(2) Yearend YieldUnderwriting Approximate on Long-TermLoss Average Float Cost of Funds Govt. Bonds (In $ Millions) (Ratio of 1 to 2)

1967
 
profit 17.3 less than zero 5.50%
 
1982
 
21.56 220.6 9.77%10.64%
 

1968
 
profit 19.9 less than zero 5.90%
 
1983
 
33.87 231.3 14.64%11.84%
 

1969
 
profit 23.4 less than zero 6.79%
 
1984
 
48.06 253.2 18.98%11.58%
 

1970
 
0.37 32.4 1.14% 6.25%
 
1985
 
44.23 390.2 11.34% 9.34%
 

1971
 
profit 52.5 less than zero 5.81%
 
1986
 
55.84 797.5 7.00% 7.60%
 

1972
 
profit 69.5 less than zero 5.82%
 
1987
 
55.43 1,266.7 4.38% 8.95%
 

1973
 
profit 73.3 less than zero 7.27%
 
1988
 
11.08 1,497.7 0.74% 9.00%
 

1974
 
7.36 79.1 9.30% 8.13%
 
1989
 
24.40 1,541.3 1.58% 7.97%
 

1975
 
11.35 87.6 12.96% 8.03%
 
1990
 
26.65 1,637.3 1.63% 8.24%
 

1976
 
profit 102.6 less than zero 7.30%
 
1991
 
119.59 1,895.0 6.31% 7.40%
 

1977
 
profit 139.0 less than zero 7.97%
 
1992
 
108.96 2,290.4 4.76% 7.39%
 

1978
 
profit 190.4 less than zero 8.93%
 
1993
 
profit2,624.7 less than zero 6.35%
 

1979
 
profit 227.3 less than zero10.08%
 
1994
 
profit3,056.6 less than zero 7.88%
 

1980
 
profit 237.0 less than zero11.94%
 
1995
 
profit3,607.2 less than zero 5.95%
 

1981
 
profit 228.4 less than zero13.61%
 
1996
 
profit6,702.0 less than zero 6.64%
 

 
 
 
 
1997
 
profit7,093.1 less than zero 5.92%
 

Since 1967, when we entered the insurance business, our float has grown at an annual compounded rate of 21.7%. Better yet, it has cost us nothing, and in fact has made us money. Therein lies an accounting irony: Though our float is shown on our balance sheet as a liability, it has had a value to Berkshire greater than an equal amount of net worth would have had.

自从1967年我们进军保险业以来，我们的浮存金每年就以21.7%复合成长率增加，更棒的是，这些资金完全不用成本，事实上它还能帮我们赚钱，可惜讽刺的是，就会计原则而言，浮存金在会计报表系属于负债，但实际上，这些负债对于Berkshire而言，其价值远高于列在帐上的其它股东权益。

The expiration of several large contracts will cause our float to decline during the first quarter of 1998, but we expect it to grow substantially over the long term. We also believe that our cost of float will continue to be highly favorable.
虽然在1998第一季几项重大合约到期后，我们拥有的浮存金会略微减少，但就长期而言，我们还是预期浮存金会大幅成长，同时我们也相信取得浮存金的成本仍然会继续维持这种令人满意的态势。

Super-Cat Insurance巨灾保险

Occasionally, however, the cost of our float will spike severely. That will occur because of our heavy involvement in the super-cat business, which by its nature is the most volatile of all insurance lines. In this operation, we sell policies that insurance and reinsurance companies purchase in order to limit their losses when mega-catastrophes strike. Berkshire is the preferred market for sophisticated buyers: When the "big one" hits, the financial strength of super-cat writers will be tested, and Berkshire has no peer in this respect.

然而有时候我们浮存金的成本也会突然大幅上扬，主要的原因在于我们从事的巨灾保险业务，本身属于保险业中变动最大的一种险种，从事这类业务，我们将保单卖给其它保险公司与再保公司以分散其面临超大型意外灾害所可能承担的风险，事实上，Berkshire是有经验的业者最喜爱往来的对象，因为他们深深知道当有"大事"真正发生时，所有巨灾保险的承保业者都会面临财务实力的严峻挑战，而Berkshire无疑的是同业之最。

Since truly major catastrophes are rare occurrences, our super-cat business can be expected to show large profits in most years -- and to record a huge loss occasionally. In other words, the attractiveness of our super-cat business will take a great many years to measure. What you must understand, however, is that a truly terrible year in the super-cat business is not a possibility -- it's a certainty. The only question is when it will come.

而由于真正重大的灾害并不是每年都发生，所以我们的巨灾业务极有可能在连续几年赚大钱后，突然又发生重大的损失，换句话说，我们这项巨灾保险业务到底有多吸引人可能要花上好几年才有办法看得清，不过大家必须明了，所谓的重大损失的年头不是可能会发生，而是肯定会发生，唯一的问题是它什么时候会降临。

Last year, we were very lucky in our super-cat operation. The world suffered no catastrophes that caused huge amounts of insured damage, so virtually all premiums that we received dropped to the bottom line. This pleasant result has a dark side, however. Many investors who are "innocents" -- meaning that they rely on representations of salespeople rather than on underwriting knowledge of their own -- have come into the reinsurance business by means of purchasing pieces of paper that are called "catastrophe bonds." The second word in this term, though, is an Orwellian misnomer: A true bond obliges the issuer to pay; these bonds, in effect, are contracts that lay a provisional promise to pay on the purchaser.

去年我们在巨灾业务的表现还算不错，全世界一整年到头都没有发生足以造成重大损失的大型灾害，也就是说基本上一整年收到的所有保费都自动落到我们的口袋里，只是事情并不如想象中完美，有许多不知情的投资人，并非基于本身对于保险承保的认识而是在业务人员的怂恿推销之下，进场买进一种叫做"巨灾债券"的有价证券，事实上这根本就是一个错误的名词，真正的债券意指到期后发行人有义务支付债款，然而这种债券，本质上其实是一种给予买方一种附条件承诺限制的合约。

This convoluted arrangement came into being because the promoters of the contracts wished to circumvent laws that prohibit the writing of insurance by entities that haven't been licensed by the state. A side benefit for the promoters is that calling the insurance contract a "bond" may also cause unsophisticated buyers to assume that these instruments involve far less risk than is actually the case.

这种拐弯抹角的做法主要是推销业者为了要规避政府禁止非保险业从事相关业务而衍生出来的商品，而业者之所以将它取名叫做债券的原因在于这样的做法可以吸引不知情的投资人，承担远比其表面上还高的许多的风险。

Truly outsized risks will exist in these contracts if they are not properly priced. A pernicious aspect of catastrophe insurance, however, makes it likely that mispricing, even of a severe variety, will not be discovered for a very long time. Consider, for example, the odds of throwing a 12 with a pair of dice -- 1 out of 36. Now assume that the dice will be thrown once a year; that you, the "bond-buyer," agree to pay $50 million if a 12 appears; and that for "insuring" this risk you take in an annual "premium" of $1 million. That would mean you had significantly underpriced the risk. Nevertheless, you could go along for years thinking you were making money -- indeed, easy money. There is actually a 75.4% probability that you would go for a decade without paying out a dime. Eventually, however, you would go broke.

这些商品若未经过仔细的核算价格的话，很可能会形成极高的风险，更严重的是灾害保险通常还有一种特色，那就是问题要经过许久之后才会慢慢地浮现，举个例来说明，二颗骰子要掷出十二点的机率约为36分之一，现在假设我们一年只掷一次，每次可以收取100万的赌注，但一旦掷出十二点时庄家的你必须支付五千万美元，或许刚开始你会以为这100万美元得来全不费工夫，甚至有75.4%的机率保证你在前十年都不必付出一毛钱，但最后你会发现就长期而言，接受这样的赌注对庄家来说实际上是亏大了，甚至有可能让你倾家荡产。

In this dice example, the odds are easy to figure. Calculations involving monster hurricanes and earthquakes are necessarily much fuzzier, and the best we can do at Berkshire is to estimate a range of probabilities for such events. The lack of precise data, coupled with the rarity of such catastrophes, plays into the hands of promoters, who typically employ an "expert" to advise the potential bond-buyer about the probability of losses. The expert puts no money on the table. Instead, he receives an up-front payment that is forever his no matter how inaccurate his predictions. Surprise: When the stakes are high, an expert can invariably be found who will affirm -- to return to our example -- that the chance of rolling a 12 is not 1 in 36, but more like 1 in 100. (In fairness, we should add that the expert will probably believe that his odds are correct, a fact that makes him less reprehensible -- but more dangerous.)

在玩这种骰子游戏时，其机率还很容易计算，但是要说到估算大型飓风与地震的发生机率的难度就高的多了，我们自认能做的最多只有大约估计一个范围，然而缺乏详细的信息，加上大型的灾害本来就很少发生，正好让一些有心人士有机可乘，通常他们会雇用一些"专家"对有意投资这类债券的客户解说发生损失的可能性，而这些所谓的专家玩得根本就是一种无本生意，因为不论他估算的到底准不准，事先都可以拿到一笔订金，更令人讶异的是，回到前面的主题，你会发现无论赌注有多高，专家永远会告诉你掷出12点的机率不是36分之一，而是100分之一，(平心而论，我们必须强调这些专家可能真的认为自己的看法是对的，这虽然让人不忍予以苛责但却更加凸显他们的危险性)。

The influx of "investor" money into catastrophe bonds -- which may well live up to their name -- has caused super-cat prices to deteriorate materially. Therefore, we will write less business in 1998. We have some large multi-year contracts in force, however, that will mitigate the drop. The largest of these are two policies that we described in last year's report -- one covering hurricanes in Florida and the other, signed with the California Earthquake Authority, covering on after-tax, the maximum we could lose under the CEA policy. Though this loss potential may sound large, it is only about 1% of Berkshire's market value. Indeed, if we could get appropriate prices, we would be willing to significantly increase our "worst-case" exposure.

越来越多的资金涌入投资这类巨灾债券，使得巨灾的投保费率大幅下滑，其结果
可能真如其名，终将导致巨大的灾害，为此我们大幅减少1998年在这方面的业务量，还好我们先前已签了好几件长期的合约使得冲击相对减小，其中最大的两件在去年的年报中已向各位报告过，一件是佛罗里达的飓风险，另一个是与加州地震局CEA签订的加州地震险，在最坏的状况下，我们必须承受的损失是税后六亿美元，这也是CEA保单规定的上限，虽然这个数字看起来很大，但占Berkshire市值的比例也不过只有1%，当然我必须再强调的是，只要保费合理，我们很愿意大幅提高最坏状况的风险上限。

Our super-cat business was developed from scratch by Ajit Jain, who has contributed to Berkshire's success in a variety of other ways as well. Ajit possesses both the discipline to walk away from business that is inadequately priced and the imagination to then find other opportunities. Quite simply, he is one of Berkshire's major assets. Ajit would have been a star in whatever career he chose; fortunately for us, he enjoys insurance.
Berkshire的巨灾保险业务在Ajit Jain的努力下，从无到有，对Berkshire可谓贡献良多，Ajit一方面有拒绝订价不合理保单的勇气，一方面又发挥创造力，开创新的业务，他可以称得上是Berkshire最珍贵的资产之一，我觉得他不论从事什么行业都可以成为那一行的明星，还好他对于保险业还算是相当有兴趣。

Insurance -- GEICO (1-800-555-2756) and Other Primary Operations保险-盖可及其它主要保险事业

Last year I wrote about GEICO's Tony Nicely and his terrific management skills. If I had known then what he had in store for us in 1997, I would have searched for still greater superlatives. Tony, now 54, has been with GEICO for 36 years and last year was his best. As CEO, he has transmitted vision, energy and enthusiasm to all members of the GEICO family -- raising their sights from what has been achieved to what can be achieved.

去年我提到盖可的Tony Nicely以及他优异的管理技能，不过我要是早知道他在1997年的表现，我可能会试着去用更好的形容词，现年54岁的Tony在盖可服务已有36年之久，在去年更达到个人事业的巅峰，身为公司的总裁，他的识见、能量与热情感染到公司上上下下的每一个人，激励他们不断地超越巅峰。

We measure GEICO's performance by first, the net increase in its voluntary auto policies (that is, not including policies assigned us by the state) and, second, the profitability of "seasoned" auto business, meaning policies that have been with us for more than a year and are thus past the period in which acquisition costs cause them to be money-losers. In 1996, in-force business grew 10%, and I told you how pleased I was, since that rate was well above anything we had seen in two decades. Then, in 1997, growth jumped to 16%.

我们运用好几种方法来衡量盖可的表现，首先是自愿加入汽车保单数量的净增加数(也就是不包含州政府分配给我们的保单数)，第二长期汽车保单业务的获利状况，系指那些持续一年以上，已经过了初次取得成本而开始赚钱的保单，1996年有效保单的数量成长了10%，当时我曾告诉大家这是相当令人兴奋的一件事，因为这是20年来的新高，不过到了1997年，保单数量的成长率又大幅跃升为16%!

Below are the new business and in-force figures for the last five years:下表是新加入自愿保单以及有效保单数量的统计:

New Voluntary Voluntary Auto  Years Auto Policies Policies in Force

1993
 
1994
 
1995
 
1996
 
1997
 

354,882
 
396,217
 
461,608
 
617,669
 
913,176
 

2,011,055
 
2,147,549
 
2,310,037
 
2,543,699
 
2,949,439
 

Of course, any insurer can grow rapidly if it gets careless about underwriting. GEICO's underwriting profit for the year, though, was 8.1% of premiums, far above its average. Indeed, that percentage was higher than we wish it to be: Our goal is to pass on most of the benefits of our low-cost operation to our customers, holding ourselves to about 4% in underwriting profit. With that in mind, we reduced our average rates a bit during 1997 and may well cut them again this year. Our rate changes varied, of course, depending on the policyholder and where he lives; we strive to charge a rate that properly reflects the loss expectancy of each driver.

当然任何一家保险公司都可以不顾承保品质而快速的成长，然而盖可本年度的承保获利却是保费收入的8.1%，这数字远优于一般同业水准，确实这数字也远高于我们本身的预期，我们原先的目标是将低成本营运所贡献的获利回馈给我们的客户，仅保留4%的获利比例，基于这样的信念，我们将1997年的保险费率再度略微调降，同时在明年有可能也会采取相同的做法，当然最后的费率还须参酌保户本身状况以及居住的地区，我们最终还是希望费率的改变可以合理地反映每位驾驶人发生损失的预期机率。

GEICO is not the only auto insurer obtaining favorable results these days. Last year, the industry recorded profits that were far better than it anticipated or can sustain. Intensified competition will soon squeeze margins very significantly. But this is a development we welcome: Long term, a tough market helps the low-cost operator, which is what we are and intend to remain.

盖可并不是近年来唯一取得好成绩汽车保险业者，去年整个产业获得高于原先预期的获利成果，但这种好光景很难维持下去，因为来自同业激烈的竞争很快地就会压缩获利的空间，然而面对可能的发展，我们胸有成竹，就长期而言，艰困的市场环境有利于低成本营运的业者生存，这也是一直以来我们努力维持的竞争优势。

Last year I told you about the record 16.9% profit-sharing contribution that GEICO's associates had earned and explained that two simple variables set the amount: policy growth and profitability of seasoned business. I further explained that 1996's performance was so extraordinary that we had to enlarge the chart delineating the possible payouts. The new configuration didn't make it through 1997: We enlarged the chart's boundaries again and awarded our 10,500 associates a profit-sharing contribution amounting to 26.9% of their base compensation, or $71 million. In addition, the same two variables -- policy growth and profitability of seasoned business -- determined the cash bonuses that we paid to dozens of top executives, starting with Tony.
去年我也曾跟各位报告过盖可员工为自己挣得高达16.9%的盈余分红比例，同时也解释只有两项简单的参数计算出这个比例，那就是保单的成长率与长期业务的获利状况，我还说由于1996年的表现实在是超乎预期以致于原先预估支付奖金的图表，因不敷使用而必须加大，不过到了今年新的图表竟然又不够用，为此我们再度提高上限，总计全公司上上下下的10,500名员工，一共可以领到相当于底薪的26.9%，总金额高达7,100万美元，当然这两项参数，同时也适用于包含Tony在内，数十位高阶经理人的奖金红利。

At GEICO, we are paying in a way that makes sense for both our owners and our managers. We distribute merit badges, not lottery tickets: In none of Berkshire's subsidiaries do we relate compensation to our stock price, which our associates cannot affect in any meaningful way. Instead, we tie bonuses to each unit's business performance, which is the direct product of the unit's people. When that performance is terrific -- as it has been at GEICO -- there is nothing Charlie and I enjoy more than writing a big check.

在盖可，我们支付薪资红利的方式很能够获得劳资双方的认同，我们颁发的是红利奖章而不是乐透彩券，Berkshire旗下的子公司员工的薪资报酬与母公司的股价一点关系都没有，因为前者并没有能力直接影响后者，相反地，我们将子公司的薪资与各单位的各自表现完全绑在一起，因为后者的成败必须由前者负全部的责任，当某事业单位的表现杰出时，就像盖可去年的情况一样，查理跟我乐于签发大笔大笔的支票。

GEICO's underwriting profitability will probably fall in 1998, but the company's growth could accelerate. We're planning to step on the gas: GEICO's marketing expenditures this year will top $100 million, up 50% from 1997. Our market share today is only 3%, a level of penetration that should increase dramatically in the next decade. The auto insurance industry is huge -- it does about $115 billion of volume annually -- and there are tens of millions of drivers who would save substantial money by switching to us.

不过盖可1998年的承保获利很可能会下滑，但是保单数量应该还会继续成长，我们已准备好加紧油门，盖可保险今年预计的行销费用将突破一亿美元的大关，这数字比起1997年要增加50%以上，截至目前为止，我们的市场占有率约为3%，预计在未来的十年内还会大幅增加，整个汽车保险市场的大饼相当可观，每年约有1,150亿美元的市场胃纳量，预估将有上千万的驾驶人因为将保单转移到我们这边而节省相当可观的保费。

In the 1995 report, I described the enormous debt that you and I owe to Lorimer Davidson. On a Saturday early in 1951, he patiently explained the ins and outs of both GEICO and its industry to me -- a 20-year-old stranger who'd arrived at GEICO's headquarters uninvited and unannounced. Davy later became the company's CEO and has remained my friend and teacher for 47 years. The huge rewards that GEICO has heaped on Berkshire would not have materialized had it not been for his generosity and wisdom. Indeed, had I not met Davy, I might never have grown to understand the whole field of insurance, which over the years has played such a key part in Berkshire's success.

在1995年的年报中，我曾经提到我们欠Lorimer Davidson一个大人情，因为要不是当年他很有耐心地跟一个素未谋面却冒冒失失闯入GEICO公司总部的二十岁小毛头深入浅出地介绍GEICO以及其所属产业种种的话，也不会有今天的Berkshire跟我本人，Davy后来也成为该公司的总裁，并与我维持长达47年亦师亦友的情谊，没有他的宽容与智能，Berkshire也没有办法靠着GEICO的成功而发扬光大。

Davy turned 95 last year, and it's difficult for him to travel. Nevertheless, Tony and I hope that we can persuade him to attend our annual meeting, so that our shareholders can properly thank him for his important contributions to Berkshire. Wish us luck.

Davy去年已高龄95岁，旅途奔波对他来说是一件很辛苦的事，不过Tony跟我还是会尽量说服他参与今年的股东会，好让大家能够藉这个机会好好地感谢他对Berkshire所做的贡献，希望我们能够如愿。

Though they are, of course, far smaller than GEICO, our other primary insurance operations turned in results last year that, in aggregate, were fully as stunning. National Indemnity's traditional business had an underwriting profit of 32.9% and, as usual, developed a large amount of float compared to premium volume. Over the last three years, this segment of our business, run by Don Wurster, has had a profit of 24.3%. Our homestate operation, managed by Rod Eldred, recorded an underwriting profit of 14.1% even though it continued to absorb the expenses of geographical expansion. Rod's three-year record is an amazing 15.1%. Berkshire's workers' compensation business, run out of California by Brad Kinstler, had a modest underwriting loss in a difficult environment; its three-year underwriting record is a positive 1.5%. John Kizer, at Central States Indemnity, set a new volume record while generating good underwriting earnings. At Kansas Bankers Surety, Don Towle more than lived up to the high expectations we had when we purchased the company in 1996.

当然除了GEICO保险以外，我们其它主要的保险事业，虽然规模较小，但所缴出来的成绩单总的来说，同样令人激赏，国家产险传统业务的承保获利率高达32.9%，同时也贡献出相较于保费收入高比例的浮存金，累计过去三年，这个由Don Wurster领导的部门平均获利率为24.3%，另外在由Rod Eldred 领导的Homestate业务部份，在必须吸收地区业务扩展的费用下，仍然缴出14.1%的承保获利，累计最近三年的获利率为15.1%，此外Berkshire的劳工退休金业务部份，在加州的Brad Kinstler主持下，虽然面临困难的环境，但产生承保损失的程度相对轻微，平均三年的承保成绩是正的1.5%，还有由John Kizer领导的Central States保险在保费收入缔造新高的同时，也贡献相当不错的承保获利，最后是我们在1996年买进的Kansas银行家保险，Don Towle的表现甚至超过我们当初设立的高标准。

In aggregate, these five operations recorded an underwriting profit of 15.0%. The two Dons, along with Rod, Brad and John, have created significant value for Berkshire, and we believe there is more to come.

总计下来，这五家保险子公司平均的承保获利率是15.0%，两位Dons加上Rod、Brad及John，为Berkshire创造了可观的利益，而且我们也相信后势可期。

Sources of Reported Earnings帐列盈余的来源

The table that follows shows the main sources of Berkshire's reported earnings. In this presentation, purchase-accounting adjustments are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. For the reasons discussed on pages 69 and 70, this form of presentation seems to us to be more useful to investors and managers than one utilizing generally-accepted accounting principles (GAAP), which require purchase-premiums to be charged off business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

(in millions) Berkshire's Share of Net Earnings (after taxes and Pre-Tax Earnings minority interests)

1997 19961997 1996

Operating Earnings: Insurance Group

 
 
Underwriting
 
Net Investment Income
 
Buffalo News
 
Finance Businesses
 
FlightSafety
 

Super-Cat
 
Other Reinsurance
 
GEICO.
 
Other Primary
 

1997
 
$ 283.0
 
(155.2)
 
280.7
 
52.9
 
882.3
 
55.9
 
28.1
 
139.5
 

1996
 
$ 167.0
 
(174.8)
 
171.4
 
58.5
 
726.2
 
50.4
 
23.1
 
3.1(1)
 

1997
 
$ 182.7
 
(100.1)
 
181.1
 
34.1
 
703.6
 
32.7
 
18.0
 
84.4
 

1996
 
$ 107.4
 
(112.4)
 
110.2
 
37.6
 
593.1
 
29.5
 
14.9
 
1.9(1)
 

 
 
Home Furnishings
 
Jewelry
 
Scott Fetzer(excluding finance operation)
 
See's Candies.
 
Shoe Group
 
Purchase-Accounting Adjustments
 
Interest Expense(3)
 
 
 
 
 

1997
 
56.8(2)
 
31.6
 
118.9
 
58.6
 
48.8
 
(104.9)
 
(106.6)
 
 
 
 
 

1996
 
43.8
 
27.8
 
121.7
 
51.9
 
61.6
 
(75.7)
 
(94.3)
 
 
 
 
 

1997
 
32.2(2)
 
18.3
 
77.3
 
35.0
 
32.2
 
(97.0)
 
(67.1)
 
 
 
 
 

1996
 
24.8
 
16.1
 
81.6
 
30.8
 
41.0
 
(70.5)
 
(56.6)
 
 
 
 
 

 
 
Shareholder-Designated Contributions
 
Other
 
Operating Earnings
 
Capital Gains from Investments
 
Total Earnings - All Entities
 

1997
 
(15.4)
 
60.7
 
1,715.7
 
1,111.9
 
$2,827.6
 

1996
 
(13.3)
 
73.0
 
1,221.4
 
2,484.5
 
$3,705.9
 

1997
 
(9.9)
 
37.0
 
1,194.5
 
707.1
 
$1,901.6
 

1996
 
(8.5)
 
42.2
 
883.1
 
1,605.5
 
$2,488.6
 

(1) From date of acquisition, December 23, 1996.　 From date of acquisition, December 23, 1996.
(2) Includes Star Furniture from July 1, 1997.　y 1, 1997.
(3) Excludes interest expense of Finance Businesses.

Overall, our operating businesses continue to perform exceptionally well, far outdoing their industry norms. We are particularly pleased that profits improved at Helzberg's after a disappointing 1996. Jeff Comment, Helzberg's CEO, took decisive steps early in 1997 that enabled the company to gain real momentum by the crucial Christmas season. In the early part of this year, as well, sales remained strong.

总的来说，我们旗下的营利事业的表现远优于一般的同业，尤其是Helzberg钻石在渡过令人失望的1996年之后，获利状况大幅提升，Helzberg公司的总裁Jeff Comment在1997年初断然地采取各项措施，带领整个公司在重要的圣诞旺季大有斩获，而截至今年上半年为止，销售状况依旧强劲。

Casual observers may not appreciate just how extraordinary the performance of many of our businesses has been: If the earnings history of, say, Buffalo News or Scott Fetzer is compared to the records of their publicly-owned peers, their performance might seem to have been unexceptional. But most public companies retain two-thirds or more of their earnings to fund their corporate growth. In contrast, those Berkshire subsidiaries have paid 100% of their earnings to us, their parent company, to fund our growth.

一般的人可能无法体会，我们众多旗下事业的表现到底有多杰出，虽然相较于其他已上市的同业，水牛城新闻报或是史考特飞兹的获利表现看起来并不突出，不过大家要了解，大部分的上市公司通常会将三分之二以上的盈余保留不分配以支应内部的成长，但是Berkshire大部分的子公司却将所赚取的盈余分毫不差的缴回母公司，是他们贡献的资金促成母公司Berkshire进一步的成长。

In effect, the records of the public companies reflect the cumulative benefits of the earnings they have retained, while the records of our operating subsidiaries get no such boost. Over time, however, the earnings these subsidiaries have distributed have created truly huge amounts of earning power elsewhere in Berkshire. The News, See's and Scott Fetzer have alone paid us $1.8 billion, which we have gainfully employed elsewhere. We owe their managements our gratitude for much more than the earnings that are detailed in the table.

事实上这些上市公司的盈余对于其获利表现有累积效果，相较之下，我们的子公司却没有这方面的支助，然而就长期而言，这些子公司上缴的资金对于Berkshire在其它地方的获利能力却有极大的贡献，总计水牛城新闻、喜斯糖果与史考特飞兹，这三家公司这几年来贡献的盈余就高达18亿美元，而我们也得以好好地运用这些资金，所以我们对于这些经理人的感谢绝不仅止于帐面上所看到的那些盈余数字而已。

Additional information about our various businesses is given on pages 36 - 50, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 55 - 61, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company. Our intent is to supply you with the financial information that we would wish you to give us if our positions were reversed.

在年报中你可以找到依照一般公认会计原则编制，详细的部门别信息，另外你还可以找到经过重编，依照Berkshire四大部门的信息，这是查理跟我能够完整呈现Berkshire现况的模式，我们的目的是希望能够换个角度设想，提供大家所有必要的信息。

Look-Through Earnings完整透视盈余

Reported earnings are a poor measure of economic progress at Berkshire, in part because the numbers shown in the table presented earlier include only the dividends we receive from investees -- though these dividends typically represent only a small fraction of the earnings attributable to our ownership. Not that we mind this division of money, since on balance we regard the undistributed earnings of investees as more valuable to us than the portion paid out. The reason is simple: Our investees often have the opportunity to reinvest earnings at high rates of return. So why should we want them paid out?

我们认为帐列盈余很难表现Berkshire实际的营运状况，部份原因在于列示在本公司帐上的股利收入，事实上仅占被投资公司收益的一小部份，其实我们并不要求盈余一定要分配，事实上对我们而言，我们更重视未分配的那一部份，因为他们极可能为我们创造出更高的价值，原因很简单，因为我们的被投资公司往往比母公司更有机会把资金投入到高投资报酬的用途之上，既然如此又何必一定要强迫他们把盈余分配回来呢?

To depict something closer to economic reality at Berkshire than reported earnings, though, we employ the concept of "look-through" earnings. As we calculate these, they consist of: (1) the operating earnings reported in the previous section, plus; (2) our share of the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. When tabulating "operating earnings" here, we exclude purchase-accounting adjustments as well as capital gains and other major non-recurring
items.

为了要更真实的反应Berkshire实际的经营状况，于是乎我们运用了完整透视盈余的观念，这个数字总共包含(1)前段所提到的帐列盈余，加上(2)主要被投资公司的保留盈余，按一般公认会计原则未反应在我们公司帐上的盈余，扣除(3)若这些未反应的盈余分配给我们时，估计可能要缴的所得税。在这里我们所谓的营业盈余系已扣除资本利得、特别会计调整与企业其它非常态的项目。

The following table sets forth our 1997 look-through earnings, though I warn you that the figures can be no more than approximate, since they are based on a number of judgment calls. (The dividends paid to us by these investees have been included in the operating earnings itemized on page 11, mostly under "Insurance Group: Net Investment Income.")
各位可以从下表看出我们是如何计算出1997年透视盈余的，不过我还是要提醒各位这些数字只不过是估计数，很多都是基于简单的判断，(被投资公司所分配的股利收入已经包含在保险事业的净投资收益项下)。

Berkshire's Shareof Undistributed Berkshire's Approximate Operating Earnings Berkshire's Major Investees Ownership at Yearend(1) (in millions)(2)

American Express Compa
 
The Coca-Cola Company
 
The Walt Disney Company
 
Freddie Mac
 
The Gillette Company
 
The Washington Post Company
 
Wells Fargo & Company
 

10.7%
 
8.1%
 
3.2%
 
8.6%
 
8.6%
 
16.5%
 
7.8%
 

$161
 
216
 
65
 
86
 
82
 
30
 
103
 

Berkshire's share of undistributed earnings of major investees 743 Hypothetical tax on these undistributed investee earnings(3) (105) Reported operating earnings of Berkshire 1,292

Total look-through earnings of Berkshire $1,930

(1) Does not include shares allocable to minority interests

(2) Calculated on average ownership for the year

(3) The tax rate used is 14%, which is the rate Berkshirepays on the dividends it receives

Acquisitions of 1997 1997年的购并活动

In 1997, we agreed to acquire Star Furniture and International Dairy Queen (a deal that closed early in 1998). Both businesses fully meet our criteria: They are understandable; possess excellent economics; and are run by outstanding people.

1997年我们同意买下星辰家具与国际乳品皇后(后者在1998年初正式敲定)，两家公司都完全符合我们的标准，产业性质单纯、拥有绝佳的竞争优势且由杰出的人才所经营。

The Star transaction has an interesting history. Whenever we buy into an industry whose leading participants aren't known to me, I always ask our new partners, "Are there any more at home like you?" Upon our purchase of Nebraska Furniture Mart in 1983, therefore, the Blumkin family told me about three outstanding furniture retailers in other parts of the country. At the time, however, none was for sale.

星辰家具的交易有个相当有趣的故事，每当我们跨足一个原本我们不熟悉的产业，我都会习惯性地问一问新加入的合作伙伴，"除了你们以外，还有没有像你们一样的企业?"，早在1983年我们买下内布拉斯加家具店时，我就问过B太太家族这个问题，当时她告诉我全美其它地方还有三家不错的家具零售商可以考虑，不过很可惜在当时没有任何一家有出售的意愿。

Many years later, Irv Blumkin learned that Bill Child, CEO of R.C. Willey -- one of the recommended three -- might be interested in merging, and we promptly made the deal described in the 1995 report. We have been delighted with that association -- Bill is the perfect partner. Furthermore, when we asked Bill about industry standouts, he came up with the remaining two names given me by the Blumkins, one of these being Star Furniture of Houston. But time went by without there being any indication that either of the two was available.

多年后，B太太家族的Irv得知当初获得推荐的三家公司之一-R.C. Willey家具总裁Bill Child有意与人合并，我们立刻把握良机促成交易，这项交易也在1995年的年报向各位报告过，事后我们也很满意这次的结合，Bill是再理想不过的合作伙伴，当然我也不忘问问Bill相同的问题，请他推荐其它杰出的同业，结果得到的答案与B太太所说的一致，其中一家就是位于修士顿的星辰家具，只是随着时光的流逝没有一家有意愿出售。

On the Thursday before last year's annual meeting, however, Bob Denham of Salomon told me that Melvyn Wolff, the long-time controlling shareholder and CEO of Star, wanted to talk. At our invitation, Melvyn came to the meeting and spent his time in Omaha confirming his positive feelings about Berkshire. I, meanwhile, looked at Star's financials, and liked what I saw.

而就在去年年度股东会的前一个星期四，所罗门公司的董事长丹汉告诉我星辰家具的大股东兼总裁-Melvyn Wolff，有意愿跟我谈谈，于是在我们的邀约下， Melvyn光临奥玛哈与我们会谈，进一步确认对于Berkshire的正面观感，而在此同时我也看了星辰家具的财务报表，一切正如我所预期。

A few days later, Melvyn and I met in New York and made a deal in a single, two-hour session. As was the case with the Blumkins and Bill Child, I had no need to check leases, work out employment contracts, etc. I knew I was dealing with a man of integrity and that's what counted.

几天后，Melvyn与我再度在纽约碰面，前后只花了两个钟头的会谈就把整个交易敲定，而如同先前与B太太家族及Bill Child的经验一样，我不需要再去查核租约、员工雇用合约等，我知道我正在和一位具有正直人格的人打交道，这样就足够了。

Though the Wolff family's association with Star dates back to 1924, the business struggled until Melvyn and his sister Shirley Toomin took over in 1962. Today Star operates 12 stores -- ten in Houston and one each in Austin and Bryan -- and will soon move into San Antonio as well. We won't be surprised if Star is many times its present size a decade from now.

虽然Wolff家族与星辰家具的关系可以追溯到1924年以前，但是该公司直到Melvyn跟他姐姐Shirly在1962年接手经营后才有起色，时至今日，星辰总共有12家分店，其中十家在修士顿、另外两家在奥斯丁与拜伦，还有一家新店即将在圣安东尼奥开张，我想星辰要是在未来十年内以倍数的方式扩张，我一点都不会感到意外。

Here's a story illustrating what Melvyn and Shirley are like: When they told their associates of the sale, they also announced that Star would make large, special payments to those who had helped them succeed -- and then defined that group as everyone in the business. Under the terms of our deal, it was Melvyn and Shirley's money, not ours, that funded this distribution. Charlie and I love it when we become partners with people who behave like that.

下面的一则故事充分说明Melvyn与Shirley是怎么样的人︰当星辰家具正式宣布出售公司时，他们同时也公布将支付一笔大额的红利给所有帮助公司成功的人士，范围包含公司上上下下所有的员工，而根据交易的合约内容，这笔钱将由Melvyn与Shirley自掏腰包，查理跟我相当赞赏即将与我们共事的合伙人能有这样的举动。

The Star transaction closed on July 1. In the months since, we've watched Star's already-excellent sales and earnings growth accelerate further. Melvyn and Shirley will be at the annual meeting, and I hope you get a chance to meet them.

星辰家具的交易案在七月一日正式定案，而在之后的几个月，星辰家具本来已经表现相当不错的营收又继续大幅成长，Melvyn与Shirley将会出席今年的股东年会，届时希望大家能够前来与他们见见面。

Next acquisition: International Dairy Queen. There are 5,792 Dairy Queen stores operating in 23 countries -- all but a handful run by franchisees -- and in addition IDQ franchises 409 Orange Julius operations and 43 Karmelkorn operations. In 190 locations, "treat centers" provide some combination of the three products.

另一个购并案：国际乳品皇后，简称乳品皇后IDQ，总共有5,792个营业据点，分布在全球的23个国家，除了少数系加盟店外，其余皆为自营，此外还有409家Orange Julius加盟店与43家Karmelkorn，其中有190个据点同时提供三种选择。

For many years IDQ had a bumpy history. Then, in 1970, a Minneapolis group led by John Mooty and Rudy Luther took control. The new managers inherited a jumble of different franchising agreements, along with some unwise financing arrangements that had left the company in a precarious condition. In the years that followed, management rationalized the operation, extended food service to many more locations, and, in general, built a strong organization.

早期乳品皇后的命运多舛，在1970年代当时，由来自明尼拿波里斯的John Mooty与Rudy Luther接手经营，新的经营阶层面对的是由前手遗留下来混乱的加盟合约以及不合理的融资计画所造成岌岌可危的窘况，所幸在接下来的几年内，新经营阶层导正这种乱象，并且对外扩张新增了许多营业据点，让公司经营逐渐步入坦途。

Last summer Mr. Luther died, which meant his estate needed to sell stock. A year earlier, Dick Kiphart of William Blair & Co., had introduced me to John Mooty and Mike Sullivan, IDQ's CEO, and I had been impressed with both men. So, when we got the chance to merge with IDQ, we offered a proposition patterned on our FlightSafety acquisition, extending selling shareholders the option of choosing either cash or Berkshire shares having a slightly lower immediate value. By tilting the consideration as we did, we encouraged holders to opt for cash, the type of payment we by far prefer. Even then, only 45% of IDQ shares elected cash.

去年夏天Luther先生过世，他的股份因而必须对外出售，而在这之前经由William Blair公司的总裁Dick Kiphart的介绍，使我得以结识John Mooty与乳品皇后的总裁Mike Sullivan，且这两人让我印象相当深刻，也因此Berkshire可以趁此机会与乳品皇后合并，而我们也提出与之前购并国际飞安公司时相同的条件，提供乳品皇后股东换成现金或股票两种不同的选择，其中换成Berkshire股份的条件略低于现金，主要是因为大家尽量选择换成现金，不过即便如此，总共也只有45%的股东决定领取现金。

Charlie and I bring a modicum of product expertise to this transaction: He has been patronizing the Dairy Queens in Cass Lake and Bemidji, Minnesota, for decades, and I have been a regular in Omaha. We have put our money where our mouth is.

在这次的交易中，查理跟我稍微发挥了一下对于产品的知识，查理他几十年来固定光顾位于明尼苏达州凯斯湖与Bemidji的乳品皇后，而我则是奥玛哈地区乳品皇后的常客，我们等于是"把钱花在嘴巴上"。

A Confession自我检讨

I've mentioned that we strongly prefer to use cash rather than Berkshire stock in acquisitions. A study of the record will tell you why: If you aggregate all of our stock-only mergers (excluding those we did with two affiliated companies, Diversified Retailing and Blue Chip Stamps), you will find that our shareholders are slightly worse off than they would have been had I not done the transactions. Though it hurts me to say it, when I've issued stock, I've cost you money.

我之所以会一再强调倾向利用现金而非Berkshire股票进行购并的原因在于，记录显示我们所有利用股票并购的合并案(扣除早期的多元零售与蓝筹邮票两个案子不算)，大家会发现所得的结果可能比不购并还差，虽然这样子讲对我很伤，不过我还是必须承认，每当我发行股票，就等于是让股东们亏钱。

Be clear about one thing: This cost has not occurred because we were misled in any way by sellers or because they thereafter failed to manage with diligence and skill. On the contrary, the sellers were completely candid when we were negotiating our deals and have been energetic and effective ever since.

不过有一点要澄清的是，之所以会如此绝对不是因为我们遭到卖方的误导或是在被买下后不用心经营，相反的，这些卖方在交易谈判当时皆坦诚布公，同时也很努力经营事业。

Instead, our problem has been that we own a truly marvelous collection of businesses, which means that trading away a portion of them for something new almost never makes sense. When we issue shares in a merger, we reduce your ownership in all of our businesses -- partly-owned companies such as Coca-Cola, Gillette and American Express, and all of our terrific operating companies as well. An example from sports will illustrate the difficulty we face: For a baseball team, acquiring a player who can be expected to bat .350 is almost always a wonderful event -- except when the team must trade a .380 hitter to make the deal.

主要的问题在于，我们原本就已经拥有的绝佳企业组合，因此不论拿什么新的东西来换都不划算，也就是说每当我们发行新股用来购并新的企业时，就等于是间接减少我们原本拥有的绝佳企业的股权比例，不论是只有部份股权的可口可乐、吉列刮胡刀及美国运通，或者是旗下所有营利事业皆是如此，在运动场上有一个例子可以充分说明我们所面临的难题，对一只棒球队来说，挖到一位打击率高达三成五的选手肯定是件令人欣喜的事，除非是你必须被迫用一个打击率高达三成八的球员去交换。

Because our roster is filled with .380 hitters, we have tried to pay cash for acquisitions, and here our record has been far better. Starting with National Indemnity in 1967, and continuing with, among others, See's, Buffalo News, Scott Fetzer and GEICO, we have acquired -- for cash -- a number of large businesses that have performed incredibly well since we bought them. These acquisitions have delivered Berkshire tremendous value -- indeed, far more than I anticipated when we made our purchases.

正因为目前我们的球员名单已布满了打击率三成八的高手，所以我们总是希望尽量用现金来进行购并，而事实证明我们的成绩远高于预期，从1967年的国家产险开始，接着是喜斯糖果、水牛城新闻报、史考特飞兹以及盖可保险等等，这些企业在我们用现金买下之后的表现再再令人激赏，它们也为Berkshire增添了无数的价值，这实在是远高于我们当初的预期。

We believe that it is almost impossible for us to "trade up" from our present businesses and managements. Our situation is the opposite of Camelot's Mordred, of whom Guenevere commented, "The one thing I can say for him is that he is bound to marry well. Everybody is above him." Marrying well is extremely difficult for Berkshire.

我们相信实在是很难将我们现在拥有的事业与其经营阶层交换出去，我们现在的处境与Camelot Mordred刚好相反，Guenevere说他一定可以找到理想的伴侣，因为世上所有人的条件都比他还要好，但是对Berkshire来说，要找到足以匹配的伴侣实在是难上加难。

So you can be sure that Charlie and I will be very reluctant to issue shares in the future. In those cases when we simply must do so -- when certain shareholders of a desirable acquiree insist on getting stock -- we will include an attractive cash option in order to tempt as many of the sellers to take cash as is possible.

所以大家可以预见的是在未来查理跟我将会越来越不愿意以发行新股的方式进行购并，要是遇到非如此不可的情况时，也就是被购并者坚持要拿股票的时候，我们也会附带提供一个比较优渥的现金价格，以促使更多的股东选择领取现金。

Merging with public companies presents a special problem for us. If we are to offer any premium to the acquiree, one of two conditions must be present: Either our own stock must be overvalued relative to the acquiree's, or the two companies together must be expected to earn more than they would if operated separately. Historically, Berkshire has seldom been overvalued. In this market, moreover, undervalued acquirees are almost impossible to find. That other possibility -- synergy gains -- is usually unrealistic, since we expect acquirees to operate after we've bought them just as they did before. Joining with Berkshire does not normally raise their revenues nor cut their costs.

此外当我们购并已公开发行的公司还会遇到另一项问题，那就是如果我们提供被购并者任何溢价的话，必须要能够符合以下两项条件其中之一，要嘛就是相对于对方，Berkshire的股价被高估；要嘛就是两家公司合并后所赚得的利益高于两家独立营运时的利益。关于这个问题，就过去的经验，Berkshire的股价很少被高估，相对地以目前的市场状况，实在很难再找到其它股价相对被低估的公司，至于另外一个可能性，也就是所谓的合并综效，通常都很不切实际，我们顶多能期望被购并的事业在被买下之后的表现跟之前一样好就不错了，因为加入Berkshire不代表营收就能够自动增加或成本就能够自动地减少。

Indeed, their reported costs (but not their true ones) will rise after they are bought by Berkshire if the acquiree has been granting options as part of its compensation packages. In these cases, "earnings" of the acquiree have been overstated because they have followed the standard -- but, in our view, dead wrong -- accounting practice of ignoring the cost to a business of issuing options. When Berkshire acquires an option-issuing company, we promptly substitute a cash compensation plan having an economic value equivalent to that of the previous option plan. The acquiree's true compensation cost is thereby brought out of the closet and charged, as it should be, against earnings.

而其中还有一些以选择权充当薪资酬劳配套措施的公司，在我们买下之后，其帐列成本往往会暴增(但并不会影响实际真实的成本)，事实上应该说是这些公司过去的获利状况被高估，因为他们所采取的是在我们看来典型的，完全忽略发行选择权潜藏企业成本的不当会计手法，也因此当Berkshire买下一家有发行选择权的公司时，我们会立刻将之更换成以现金报酬为主，但却与原来认股权同样优惠的奖励计画，如此一来，被购并的这家公司其实际的薪资酬劳成本方能摊开在阳光底下，具体反应公司的获利状况。

The reasoning that Berkshire applies to the merger of public companies should be the calculus for all buyers. Paying a takeover premium does not make sense for any acquirer unless a) its stock is overvalued relative to the acquiree's or b) the two enterprises will earn more combined than they would separately. Predictably, acquirers normally hew to the second argument because very few are willing to acknowledge that their stock is overvalued. However, voracious buyers -- the ones that issue shares as fast as they can print them -- are tacitly conceding that point. (Often, also, they are running Wall Street's version of a chain-letter scheme.)

Berkshire在购并公开公司所采用的原则也是所有买家必修的学分，买方没有理由以溢价进行购并，除非在以下特殊的情况下，a)相对于被购并者，其股价被高估，或者是b)两家原本独立的企业在合并之后所赚取的利润高于原先的总和，而显而易见的买方通常会采取第一个理由，因为很少有公司会公开承认自己的股价被高估，然而贪得无厌的买家，以比印钞票还快的速度印股票的这群人，最后却不得不默认自己的股价确实被高估，通常他们玩的宛如华尔街版的连锁信游戏。

In some mergers there truly are major synergies -- though oftentimes the acquirer pays too much to obtain them -- but at other times the cost and revenue benefits that are projected prove illusory. Of one thing, however, be certain: If a CEO is enthused about a particularly foolish acquisition, both his internal staff and his outside advisors will come up with whatever projections are needed to justify his stance. Only in fairy tales are emperors told that they are naked.

虽然有些合并案确实可以发挥综合效益，但通常买家所付出的代价过高，且通常成本节省与营收增加的预期效益最后都会成一场空，不过有一点可以确定的是，不管这个购并案多么的不合理，只要老板有强烈的意愿，其内部的同僚与外部的专家顾问都能够提出一份看似合理的评估报告来支持其立场，只要在童话中才有人敢大胆地告诉国王他没有穿衣服。

Common Stock Investments股票投资

Below we present our common stock investments. Those with a market value of more than $750 million are itemized.

下表是Berkshire市价超过七亿五千万美元以上的股票投资。12/31/97Shares Company Cost* Market (dollars in millions)

49,456,900
 
200,000,000
 
21,563,414
 
63,977,600
 
48,000,000
 
23,733,198
 
1,727,765
 
6,690,218
 
 
 
 
 

American Express Company
 
The Coca-Cola Company
 
The Walt Disney Company
 
Freddie Mac
 
The Gillette Company
 
Travelers Group Inc.
 
The Washington Post Company
 
Wells Fargo & Company
 
Others
 
Total Common Stocks
 

$1,392.7
 
1,298.9
 
381.2
 
329.4
 
600.0
 
604.4
 
10.6
 
412.6
 
2,177
 
$7,206.9
 

$ 4,414.0
 
13,337.5
 
2,134.8
 
2,683.1
 
4,821.0
 
1,278.6
 
840.6
 
2,270.9
 
4,467
 
$ 36,247
 

* Represents tax-basis cost which, in aggregate, is $1.8 billion less than GAAP cost.
*系以税务为基础的成本，比一般公认会计原则的帐面成本少18亿美元。

We made net sales during the year that amounted to about 5% of our beginning portfolio. In these, we significantly reduced a few of our holdings that are below the $750 million threshold for itemization, and we also modestly trimmed a few of the larger positions that we detail. Some of the sales we made during 1997 were aimed at changing our bond-stock ratio moderately in response to the relative values that we saw in each market, a realignment we have continued in 1998.

今年我们大概处分了5%左右的投资部位，其中包含一些市价未达七亿五千万表列门槛的股票被大幅地处分掉，此外也有一部份超过七亿五千万的股票被小幅的调整，主要是为了调整债券与股票投资部位间的比例，以因应我们认为市场相对价值的认知，这个动作一直到1998年仍在持续进行。

Our reported positions, we should add, sometimes reflect the investment decisions of GEICO's Lou Simpson. Lou independently runs an equity portfolio of nearly $2 billion that may at times overlap the portfolio that I manage, and occasionally he makes moves that differ from mine.

不过有一点必须强调的是，报表上显示的投资部位，有时反应的是GEICO保险公司Lou Simpson所做的决策，Lou独自管理将近20亿美元的股票投资组合，当然其中有些部位与我重叠，但通常他的投资动作与我有别。

Though we don't attempt to predict the movements of the stock market, we do try, in a very rough way, to value it. At the annual meeting last year, with the Dow at 7,071 and long-term Treasury yields at 6.89%, Charlie and I stated that we did not consider the market overvalued if 1) interest rates remained where they were or fell, and 2) American business continued to earn the remarkable returns on equity that it had recently recorded. So far, interest rates have fallen -- that's one requisite satisfied -- and returns on equity still remain exceptionally high. If they stay there -- and if interest rates hold near recent levels -- there is no reason to think of stocks as generally overvalued. On the other hand, returns on equity are not a sure thing to remain at, or even near, their present levels.

虽然我们从来不愿尝试去预测股市的动向，不过我们却试着大约评估其合理价位，记得在去年的股东会时，道琼指数约为7,071点，长期公债的殖利率为6.89%，查理跟我就曾公开表示，如果符合以下两点条件，则股市并未高估，1)利率维持不变或继续下滑，以及2)美国企业继续维持现有的高股东权益报酬率。现在看起来，利率确实又继续下滑，这一点算是符合条件，另一方面，股东权益报酬率仍旧维持在高档，换句话说，若这种情况继续维持下去，同时利率也能够维持现状，则一般来说没有理由认为现在的股市过于高估，不过从保守角度来看，股东权益报酬率实在很能永远维持在现有的这种荣景。

In the summer of 1979, when equities looked cheap to me, I wrote a Forbes article entitled "You pay a very high price in the stock market for a cheery consensus." At that time skepticism and disappointment prevailed, and my point was that investors should be glad of the fact, since pessimism drives down prices to truly attractive levels. Now, however, we have a very cheery consensus. That does not necessarily mean this is the wrong time to buy stocks: Corporate America is now earning far more money than it was just a few years ago, and in the presence of lower interest rates, every dollar of earnings becomes more valuable. Today's price levels, though, have materially eroded the "margin of safety" that Ben Graham identified as the cornerstone of intelligent investing.

记得1979年的夏天，在当时的股票市场当中，便宜的股票垂手可得，为此我特地在富比士写了一篇文章，名为"在股票市场中，想让大家有乐观的共识是要付出相当大的代价的"，当时市场弥漫着怀疑与悲观的情绪，不过当时我力排众议认为对于这种现象投资人应该要感到高兴，因为悲观的情绪使得许多公司的股价跌到相当吸引人的价位，不过现在看来我们似乎已经快要达到乐观的共识了，当然这不代表现在就不能买股票，近年来美国企业的获利大增，搭配现在的利率水准，企业赚取的每一块盈余比起过去来说要珍贵的许多，虽然以现在的股票价位，已经严重地脱离的葛拉汉一再强调的安全边际，这是智能型投资哲学的基石。

In last year's annual report, I discussed Coca-Cola, our largest holding. Coke continues to increase its market dominance throughout the world, but, tragically, it has lost the leader responsible for its outstanding performance. Roberto Goizueta, Coke's CEO since 1981, died in October. After his death, I read every one of the more than 100 letters and notes he had written me during the past nine years. Those messages could well serve as a guidebook for success in both business and life.

去年年报我花了相当多的篇幅谈到我们现有最大的投资部位-可口可乐，虽然目前可口可乐仍然继续扩大其在全世界饮料市场的霸主地位，不过很不幸的是，该公司总裁Roberto Goizueta却在去年十月过世，在他死后，我再一度阅读过去九年来，我与Goizueta超过上百篇的往来书信，这些讯息确实可以做为如何成功经营企业与人生的最佳教材。

In these communications, Roberto displayed a brilliant and clear strategic vision that was always aimed at advancing the well-being of Coke shareholders. Roberto knew where he was leading the company, how he was going to get there, and why this path made the most sense for his owners -- and, equally important, he had a burning sense of urgency about reaching his goals. An excerpt from one handwritten note he sent to me illustrates his mind-set: "By the way, I have told Olguita that what she refers to as an obsession, you call focus. I like your term much better." Like all who knew Roberto, I will miss him enormously.

在这些书信中，Roberto展现出高瞻远瞩的识见，总是将重点摆在如何增进可口可乐股东的权益，Roberto很清楚他要将公司带往何处，以及要如何才能到达目的地，同时了解为何这样的方法最适合所有的股东，当然更重要的是他对于达成这样目标抱持着强烈的渴望，有一张他手写给我的字条最能充分说明当时他的心境，"对了，我跟Olguita提到有关于她常常讲的"着魔"，我个人比较喜欢巴菲特的说法"专注"，就像是所有认识Roberto的人一样，我会永远怀念他!

Consistent with his concern for the company, Roberto prepared for a seamless succession long before it seemed necessary. Roberto knew that Doug Ivester was the right man to take over and worked with Doug over the years to ensure that no momentum would be lost when the time for change arrived. The Coca-Cola Company will be the same steamroller under Doug as it was under Roberto.

一如他对于公司的关心，Roberto早就安排好接班的问题，他认为Doug Ivester正是最佳的人选，与他共事多年的经验足以确保在公司领导高层更迭的同时，公司的运作不致受到任何的影响，相信在Doug的领导之下，可口可乐仍能一本初衷勇往直前。

Convertible Preferreds可转换特别股

Two years ago, I gave you an update on the five convertible preferreds that we purchased through private placements in the 1987-1991 period. At the time of that earlier report, we had realized a small profit on the sale of our Champion International holding. The four remaining preferred commitments included two, Gillette and First Empire State, that we had converted into common stock in which we had large unrealized gains, and two others, USAir and Salomon, that had been trouble-prone. At times, the last two had me mouthing a line from a country song: "How can I miss you if you won't go away?"

两年前，我曾经就1987到1991年间进行的五项可转换特别股投资做了一番现况报告，在报告出具的当时，我们出脱了冠军国际部份的持股实现小部份的获利，剩下的四项投资中，吉列与第一帝国早已转换成普通股，并享有高额的未实现获利，而美国航空与所罗门兄弟则发生严重的经营问题，这两项投资让我不得不哼起一首乡村歌曲的歌词，"要是你不离开，我又怎么会想念你呢?"

Since I delivered that report, all four holdings have grown significantly in value. The common stocks of both Gillette and First Empire have risen substantially, in line with the companies' excellent performance. At yearend, the $600 million we put into Gillette in 1989 had appreciated to $4.8 billion, and the $40 million we committed to First Empire in 1991 had risen to $236 million.

而就在报告发布之后，所有四项投资的价值皆大幅增加，吉列与第一帝国的普通股股价飙涨，与公司的经营基本面一致，截至年底，当初我们在1989年投入吉列的6亿美元已经增值为48亿美元，而在1991年投入第一帝国的4,000万美元，则已增值至2.36亿美元。

Our two laggards, meanwhile, have come to life in a very major way. In a transaction that finally rewarded its long-suffering shareholders, Salomon recently merged into Travelers Group. All of Berkshire's shareholders -- including me, very personally -- owe a huge debt to Deryck Maughan and Bob Denham for, first, playing key roles in saving Salomon from extinction following its 1991 scandal and, second, restoring the vitality of the company to a level that made it an attractive acquisition for Travelers. I have often said that I wish to work with executives that I like, trust and admire. No two fit that description better than Deryck and Bob.
在此同时另外两个后段班，也已起死回生，其中所罗门最近决定并入旅行家集团的举动，终于让长久以来饱受苦难的股东获得的回报，Berkshire所有的股东，包含我个人在内，实在是亏欠Deryck Maughan跟Bob Denham太多了，首先要感谢他们在1991年所罗门爆发丑闻时，拯救公司免于倒闭，之后更让公司恢复以往的活力，使得公司得以风光地嫁给旅行家集团，我常常说，我渴望与我喜爱、信任与崇拜的经理人共事，Deryck与Bob正是这样绝佳的组合。

Berkshire's final results from its Salomon investment won't be tallied for some time, but it is safe to say that they will be far better than I anticipated two years ago. Looking back, I think of my Salomon experience as having been both fascinating and instructional, though for a time in 1991-92 I felt like the drama critic who wrote: "I would have enjoyed the play except that I had an unfortunate seat. It faced the stage."

虽然Berkshire投资所罗门的最终成果到目前仍未定案，所幸目前的情况要比我两年前预期要好得多，回顾过去，我觉得投资所罗门的经验令人感到刺激有趣同时又具教化意义，虽然我在1991到1992年间的感觉就好象是一个戏迷曾这样写到"要是因为坐到一个不幸的位子，我可能就能够好好地欣赏表演，因为它正对着台上"。

The resuscitation of US Airways borders on the miraculous. Those who have watched my moves in this investment know that I have compiled a record that is unblemished by success. I was wrong in originally purchasing the stock, and I was wrong later, in repeatedly trying to unload our holdings at 50 cents on the dollar.

另一方面美国航空的重生过程近乎奇迹，熟悉整个投资过程的朋友都知道，个人在这项投资上获得了前所未有的胜利，一开始买进这家公司的股票就是一项错误，后来又反悔打算以半价出售再度犯了第二次的错误。

Two changes at the company coincided with its remarkable rebound: 1) Charlie and I left the board of directors and 2) Stephen Wolf became CEO. Fortunately for our egos, the second event was the key: Stephen Wolf's accomplishments at the airline have been phenomenal.

两项改变促使该公司得以东山再起，1)查理跟我辞去该公司董事的职位，2) Stephen Wolf接任成为该公司总裁，还好后者才是公司真正能够重生的主因，否则我们的脸可就丢大了，Stephen Wolf的表现对整个航空业而言，可说是意义非凡。

There still is much to do at US Airways, but survival is no longer an issue. Consequently, the company made up the dividend arrearages on our preferred during 1997, adding extra payments to compensate us for the delay we suffered. The company's common stock, furthermore, has risen from a low of $4 to a recent high of $73.

当然美国航空还有很长的一段路要走，不过存活下来应该不是问题，也因此该公司在1997年顺利地偿还积欠我们的特别股股息，还包含延迟支付的赔偿损失，该公司的普通股股价更从原来的4块钱，一举涨到目前73块钱的新高。

Our preferred has been called for redemption on March 15. But the rise in the company's stock has given our conversion rights, which we thought worthless not long ago, great value. It is now almost certain that our US Airways shares will produce a decent profit -- that is, if my cost for Maalox is excluded -- and the gain could even prove indecent.

我们持有的特别股已在三月15日被赎回，不过受惠于该公司股价大涨，原本一文不值的转换权现在却变得价值不菲，可以肯定的是我们现在持有的美国航空普通股将为我们创造极高的获利，当然还要先把我买胃药的钱给算进去。

Next time I make a big, dumb decision, Berkshire shareholders will know what to do: Phone Mr. Wolf.

我想哪天要是我再度干下什么愚蠢的投资决策，Berkshire的股东肯定知道该怎么做了，没错，记得打电话给Wolf先生。

In addition to the convertible preferreds, we purchased one other private placement in 1991, $300 million of American Express Percs. This security was essentially a common stock that featured a tradeoff in its first three years: We received extra dividend payments during that period, but we were also capped in the price appreciation we could realize. Despite the cap, this holding has proved extraordinarily profitable thanks to a move by your Chairman that combined luck and skill -- 110% luck, the balance skill.

除了可转换特别股，我们在1991年还透过私募的方式投资了三亿美元的美国运通俗称"Percs"的股票，这种证券基本上算是一种普通股，只不过在投资的前三年我们可以领取一笔特别的股利，条件是在同时间我们因为股价上涨所带来的资本利得将受到限制，然而即便如此，这笔投资还是因为本人的英明决策而获利不菲，当然其中也包含一些运气的成份，比例约是110%(剩下的才是本人的能力)。

Our Percs were due to convert into common stock in August 1994, and in the month before I was mulling whether to sell upon conversion. One reason to hold was Amex's outstanding CEO, Harvey Golub, who seemed likely to maximize whatever potential the company had (a supposition that has since been proved -- in spades). But the size of that potential was in question: Amex faced relentless competition from a multitude of card-issuers, led by Visa. Weighing the arguments, I leaned toward sale.

根据约定我们的Percs必须在1994年八月以前转换成普通股，而就在前一个月我还一直在考虑是否应该在转换期限到期以前把这项投资给处分掉，当时考量的是虽然美国运通总裁Harvey Golub表现相当优异，他总是有办法将公司的潜力发挥到极致(这点从一开始便不断地获得证明)，只是这种潜能还是面临严重的挑战，那就是美国运通来自于以Visa为首的其它发卡单位激烈的竞争，在衡量各种利弊得失之后，我还是倾向于把这笔投资提前给处分掉。

Here's where I got lucky. During that month of decision, I played golf at Prouts Neck, Maine with Frank Olson, CEO of Hertz. Frank is a brilliant manager, with intimate knowledge of the card business. So from the first tee on I was quizzing him about the industry. By the time we reached the second green, Frank had convinced me that Amex's corporate card was a terrific franchise, and I had decided not to sell. On the back nine I turned buyer, and in a few months Berkshire owned 10% of the company.

还好我走狗运，就在要做决定的那个月，我正好到缅因州和Hertz租车公司总裁Frank Olson一起打高尔夫球，Frank是一位相当优秀的经理人，因为业务的关系相当熟悉信用卡的行业，所以打从第一洞开始我就一直追问他有关这行业的种种问题，到了第二洞的果岭时，Frank已经让我完全相信美国运通的企业卡是一项绝佳的生意，所以当下我就决定不卖了，等到后九洞时，我更决定加码投资，于是在回来的几个月后，Berkshire已经拥有该公司10%的股权。

We now have a $3 billion gain in our Amex shares, and I naturally feel very grateful to Frank. But George Gillespie, our mutual friend, says that I am confused about where my gratitude should go. After all, he points out, it was he who arranged the game and assigned me to Frank's foursome.

现在我们光是在美国运通的投资潜在利益就有30亿美元，当然这一切都要感谢Frank，不过我们俩人共同的好友-George Gillspie却直说我搞错应该要感恩的对象了，他强调要不是因为他安排这次的球会，并且把我跟Frank摆在同一组的话，也不会有今天这样的成果。

Quarterly Reports to Shareholders给股东的季报

In last year's letter, I described the growing costs we incur in mailing quarterly reports and the problems we have encountered in delivering them to "street-name" shareholders. I asked for your opinion about the desirability of our continuing to print reports, given that we now publish our quarterly and annual communications on the Internet, at our site, www.berkshirehathaway.com. Relatively few shareholders responded, but it is clear that at least a small number who want the quarterly information have no interest in getting it off the Internet. Being a life-long sufferer from technophobia, I can empathize with this group.

在去年的年报中，我曾经向各位透露由于邮寄季报的费用大幅增加，同时要将季报寄给那些不是用本名登记的股东有其困难性，所以征询大家是否可以接受直接将季报与年报公布在公司网站上，取代原先印制与邮寄报告的做法，虽然只有少数的股东响应，但长期以来具有科技恐惧症的我很明白还是有少数想要年报信息的股东，不习惯透过网络取得相关的信息，我完全能够体会他们的想法。

The cost of publishing quarterlies, however, continues to balloon, and we have therefore decided to send printed versions only to shareholders who request them. If you wish the quarterlies, please complete the reply card that is bound into this report. In the meantime, be assured that all shareholders will continue to receive the annual report in printed form.

惟考量大幅增加的印刷费用，最后我们还是决定除非股东有特别要求，我们才邮寄印好的季报，所以若你也有意要一份书面的季报，请填妥年报上所附的申请表格，同时在此也提醒所有的股东，我们还是会继续邮寄年报给所有的股东。

Those of you who enjoy the computer should check out our home page. It contains a large amount of current information about Berkshire and also all of our annual letters since 1977. In addition, our website includes links to the home pages of many Berkshire subsidiaries. On these sites you can learn more about our subsidiaries' products and -- yes -- even place orders for them.

至于喜欢利用计算机上网的股东们，一定要到我们公司网站的首页看看，里面包含大量有关Berkshire现况的信息，同时还有1977年到现在为止的公司年报，此外网站上还有对旗下其它子公司的网站连结，经由这些网站大家可以更了解子公司的产品信息，有的甚至可以透过网络直接下单购买。

We are required to file our quarterly information with the SEC no later than 45 days after the end of each quarter. One of our goals in posting communications on the Internet is to make this material information -- in full detail and in a form unfiltered by the media -- simultaneously available to all interested parties at a time when markets are closed. Accordingly, we plan to send our 1998 quarterly information to the SEC on three Fridays, May 15, August 14, and November 13, and on those nights to post the same information on the Internet. This procedure will put all of our shareholders, whether they be direct or "street-name," on an equal footing. Similarly, we will post our 1998 annual report on the Internet on Saturday, March 13, 1999, and mail it at about the same time.

根据证管会法令的规定，我们必须在每季结束后45天内申报季报，而透过网络公开信息的主要原因之一是我们希望如此重大的讯息可以以完整而不经过媒体消化过滤的方式，在股市收盘后实时地传达给所有关心本公司状况的人士，因此我们决定在往后每季的最后一个星期五，今年分别是5/15、8/14及11/13将季报对证管会做申报的动作，并在当天晚上将相同的信息同步公布在公司的网站上，此举将能够使得Berkshire所有股东，不管是以本人或挂名的方式持有，皆站在同等的地位之上，另外，我们也预计在1999年3月13日星期六将年报公布在网站上，并在同一时间将年报邮寄出去给所有的股东。

Shareholder-Designated Contributions股东指定捐赠计划

About 97.7% of all eligible shares participated in Berkshire's 1997 shareholder-designated contributions program. Contributions made were $15.4 million, and 3,830 charities were recipients. A full description of the program appears on pages 52 - 53.

大约有97.7%的有效股权参与1997年的股东指定捐赠计划，总计约1,540万美元捐出的款项分配给3,830家慈善机构，详细的名单参阅附录。

Cumulatively, over the 17 years of the program, Berkshire has made contributions of $113.1 million pursuant to the instructions of our shareholders. The rest of Berkshire's giving is done by our subsidiaries, which stick to the philanthropic patterns that prevailed before they were acquired (except that their former owners themselves take on the responsibility for their personal charities). In aggregate, our subsidiaries made contributions of $8.1 million in 1997, including in-kind donations of $4.4 million.

累计过去17年以来，Berkshire总计已按照股东意愿捐赠高达1.131亿美元的款项，除了之外，Berkshire还透过旗下的子公司进行捐赠，而这些慈善活动都是早在他们被我们购并以前就行之有年的(除了先前的老板自行本身负责的个人捐赠计画之外)，总的来说，我们旗下的关系企业在1997年总计捐出810万美元，其中包含440万美元等值的物品。

Every year a few shareholders miss out on our contributions program because they don't have their shares registered in their own names on the prescribed record date or because they fail to get the designation form back to us within the 60-day period allowed. Charlie and I regret this. But if replies are received late, we have to reject them because we can't make exceptions for some shareholders while refusing to make them for others.

每年都有一小部份的股东由于没有将股份登记在本人的名下，或是没能在60天的期限内，将指定捐赠的表格送回给我们，而没办法参加我们的指定捐赠计画，对此查理跟我感到相当头痛，不过我们必须忍痛将这些指定捐赠剔除，因为我不可能在拒绝其它不符合规定股东的同时，还破例让这些人参与。

To participate in future programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 1998, will be ineligible for the 1998 program. When you get the contributions form from us, return it promptly so that it does not get put aside or forgotten.

想要参加这项计画者，必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在1998年8月31日之前完成登记，才有权利参与1998年的捐赠计画，当你收到表格后，请立即填写后寄回，以免被丢在一旁给忘记了。

The Annual Meeting年度股东会

Woodstock Weekend at Berkshire will be May 2-4 this year. The finale will be the annual meeting, which will begin at 9:30 a.m. on Monday, May 4. Last year we met at Aksarben Coliseum, and both our staff and the crowd were delighted with the venue. There was only one crisis: The night before the meeting, I lost my voice, thereby fulfilling Charlie's wildest fantasy. He was crushed when I showed up the next morning with my speech restored.

今年Berkshire的伍斯达克将在五月2号到4号举行，整个大会将在五月4号星期一的年度会议召开后落幕，去年的年会在Aksarben体育馆召开，所有的工作人员及参与的来宾对于当天的会场都相当满意，唯一美中不足的是，在年会的前一天，我的嗓子沙哑了，当时几乎要如了查理的愿，只不过隔天当我恢复原本的声音时，在一旁的查理几乎要崩溃。

Last year about 7,500 attended the meeting. They represented all 50 states, as well as 16 countries, including Australia, Brazil, Israel, Saudi Arabia, Singapore and Greece. Taking into account several overflow rooms, we believe that we can handle more than 11,000 people, and that should put us in good shape this year even though our shareholder count has risen significantly. Parking is ample at Aksarben; acoustics are excellent; and seats are comfortable.

去年的股东会总共有7,500位股东出席，分别来自全美50州以及包含澳洲、巴西、以色列、沙特阿拉伯、新加坡与希腊等在内的16个国家，我想即使今年我们的股东人数又大幅增加，加上其它几个备用的房间，应该可以容纳超过11,000名以上的人员参加，会场备有足够的停车位，音效也不错，就连座椅坐起来也很舒服。

The doors will open at 7 a.m. on Monday and at 8:30 we will again feature the world premiere of a movie epic produced by Marc Hamburg, our CFO. The meeting will last until 3:30, with a short break at noon. This interval will permit the exhausted to leave unnoticed and allow time for the hardcore to lunch at Aksarben's concession stands. Charlie and I enjoy questions from owners, so bring up whatever is on your mind.

大门会在星期一早上七点开放，同时照例在八点半会播放由我们财务长Marc Hamburg精心制作具世界级水准的Berkshire电影短片供大家欣赏，扣除中午短暂的休息时间，让精疲力尽的人可以偷偷离开到阿肯萨本中心的小吃摊吃点东西，整个会议将一直进行到下午三点半，查理跟我很喜欢老板们提出的各种问题，所以记得准备好你要问什么。

Berkshire products will again be for sale in the halls outside the meeting room. Last year -- not that I pay attention to this sort of thing -- we again set sales records, moving 2,500 pounds of See's candy, 1,350 pairs of Dexter shoes, $75,000 of World Books and related publications, and 888 sets of Quikut knives. We also took orders for a new line of apparel, featuring our Berkshire logo, and sold about 1,000 polo, sweat, and T-shirts. At this year's meeting, we will unveil our 1998 collection.

再一次我们在会场外大厅备有Berkshire各式各样的产品供大家选购，虽然我不是特别的用心，去年我们再度打破记录，总共搬走了2,500磅的糖果、1,350双的鞋子以及价值超过75,000美元的世界百科全书与相关出版品，外加888组由旗下子公司Quikut所生产的小刀，同时我们也接受预订一种新款的服装，上面印有Berkshire的Logo，结果总计卖出1,000件各式polo衫、毛衣与T恤，在今年的股东会，我们还将推出1998年全新系列产品。

GEICO will again be on hand with a booth staffed by star associates from its regional offices. Find out whether you can save money by shifting your auto insurance to GEICO. About 40% of those who check us out learn that savings are possible. The proportion is not 100% because insurers differ in their underwriting judgments, with some favoring drivers who live in certain geographical areas and work at certain occupations more than we do. We believe, however, that we more frequently offer the low price than does any other national carrier selling insurance to all comers. In the GEICO informational material that accompanies this report, you will see that in 38 states we now offer a special discount of as much as 8% to our shareholders. We also have applications pending that would extend this discount to drivers in other states.

GEICO公司再度会派出地区最优秀的业务员，在会场设立摊位，接受股东询问有关汽车保险的信息，记得去看看你是否能在汽车保险费上省一笔钱，我们估计至少有40%的股东可以因此而节省不少保费(我只所以没说100%的原因在于，每家保险业者对于风险的估计都不同，有些保险公司对于居住于某些特定地区的居民与从事某些特定职业的客户有偏好，不过我仍然坚信我们提供给一般民众的费率通常都低于其它全国性的业者，在随年报附赠的GEICO资料中，大家将可以看到我们提供给来自全美38州股东最高8%的折扣费率，至于其它州的股东也接受开放申请取得不等的折扣。

An attachment to the proxy material that is enclosed with this report explains how you can obtain the card you will need for admission to the meeting. We expect a large crowd, so get plane, hotel and car reservations promptly. American Express (800-799-6634) will be happy to help you with arrangements. As usual, we will have buses at the larger hotels that will take you to and from the meeting and also deliver you to Nebraska Furniture Mart, Borsheim's and the airport after its conclusion. You are likely, however, to find a car handy.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，美国运通 (电话800-799-6634)将会很高兴为您提供相关安排服务，如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，当然你可能会觉得如何有一辆车就更方便了。

NFM's main store, located on a 75-acre site about a mile from Aksarben, is open from 10 a.m. to 9 p.m. on weekdays, 10 a.m. to 6 p.m. on Saturdays, and noon to 6 p.m. on Sundays. During the period from May 1 to May 5, shareholders who present NFM with the coupon that will accompany their meeting ticket will be entitled to a discount that is otherwise restricted to its employees.

占地75英亩的NFM主馆距离会场约1英哩远，营业时间平日从早上10点到下午9点，星期六从早上10点到下午6点，星期日则从中午开到下午6点，在五月1日到5日期间，股东持随股东开会通知单附赠的点券到NFM购买各类商品，将可获得员工价的优惠。

Borsheim's normally is closed on Sunday but will be open for shareholders from 10 a.m. to 6 p.m. on May 3rd. Last year was our second-best shareholder's day, exceeded only by 1996's. I regard this slippage as an anomaly and hope that you will prove me right this year. Charlie will be available for autographs. He smiles, however, only if the paper he signs is a Borsheim's sales ticket. Shareholders who wish to visit on Saturday (10 a.m. to 5:30 p.m.) or on Monday (10 a.m.-8 p.m.) should be sure to identify themselves as Berkshire owners so that Susan Jacques, Borsheim's CEO, can make you especially welcome. Susan, I should add, had a fabulous year in 1997. As a manager, she is
everything that an owner hopes for.

平时礼拜天不营业的波仙珠宝，特地在五月三日股东会当天会为股东与来宾开放，从中午开到下午6点，去年在星期六股东会前一天，我们缔造了历史次佳的记录，仅次于1996年，我认为去年的下滑有点反常，所以希望大家都能前来共襄盛举，证明我的看法的对的，查理会在现场接受大家的签名，当然大家如果拿波仙的发票给他签，他会更高兴，另外选择在前一天或后一天前往参观的人，记得表明Berkshire股东的身分，相信波仙的总裁-Susan Jacques会给各位最热情的接待，有一点我必须特别说明的是，Susan在1997年表现相当优异，她实在是所有老板心目中最理想的专业经理人。

On Sunday afternoon we will also have a special treat for bridge players in the mall outside of Borsheim's. There, Bob Hamman -- a legend of the game for more than three decades -- will take on all comers. Join in and dazzle Bob with your skill.

另外在星期天下午我们也会在波仙珠宝店外面的大厅举办一场桥牌大赛，现场Bob Hamman 桥牌界的传奇性人物也将出席，接受各路英雄好汉的挑战，记得来参加，秀秀你的牌技给Bob看看。

My favorite steakhouse, Gorat's, opens one Sunday a year -- for Berkshire shareholders on the night before the annual meeting. Last year the restaurant started serving at 4 p.m. and finished about 1:30 a.m, an endurance trial that was the result of taking 1,100 reservations vs. a seating capacity of 235. If you make a reservation and then can't attend, be sure to let Gorat's know promptly, since it goes to great effort to help us and we want to reciprocate. You can make reservations beginning on April 1st (but not before) by calling 402-551-3733. Last year I had to leave Gorat's a little early because of my voice problem, but this year I plan to leisurely savor every bite of my rare T-bone and double order of hash browns.

我个人最爱的牛排馆-Gorat's为了Berkshire股东年会破例在星期天开门营业，去年为了消化1,100位预订的席次，只有235个座位的Gorat's牛排馆从下午四点开始营业，一直到半夜一点半，所以已经预订座位的人，要是临时无法光临，请记得一定要打电话取消订位，因为Gorat's如此尽心尽力的为我们服务，这是我们可以给他们最起码的回报，今年该餐厅从四月一号开始接受预订(电话402-551-3733)，去年由于我的喉咙有问题，所以必须提早离开，但今年我一定会到Gorat's好好享用我最喜爱的丁骨牛排加上双份的牛肉丸。

After this warmup, Charlie and I will head for the Dairy Queen on 114th, just south of Dodge. There are 12 great Dairy Queens in metropolitan Omaha, but the 114th Street location is the best suited to handle the large crowd that we expect. South of the property, there are hundreds of parking spaces on both sides of the street. Also, this Dairy Queen will extend its Sunday hours to 11 p.m. in order to accommodate our shareholders.

吃完牛排后，查理跟我还会赶到位于道奇街114号的乳品皇后冰淇淋摊，在整个奥玛哈地区总计有12家乳品皇后，但是114街却是最适合接待大量群众的地点，在店的两旁有好几百个停车场供大家使用，同时该店也会延长假日营业时间到晚上11点，以接待所有前往光顾的Berkshire股东。

The 114th Street operation is now run by two sisters, Coni Birge and Deb Novotny, whose grandfather put up the building in 1962 at what was then the outer edge of the city. Their mother, Jan Noble, took over in 1972, and Coni and Deb continue as third generation owner-managers. Jan, Coni and Deb will all be on hand Sunday evening, and I hope that you meet them. Enjoy one of their hamburgers if you can't get into Gorat's. And then, around eight o'clock, join me in having a Dusty Sundae for dessert. This item is a personal specialty -- the Dairy Queen will furnish you a copy of my recipe -- and will be offered only on Shareholder Sunday.

114街的分店目前由Coni Birge与Deb Novotny两姊妹所经营，系由她们的祖父于1962年在当时还是市中心外围的现址创立，在1972年由她们的母亲接手经营，Coni与Deb则是第三代的经营者，Jan、Coni及Deb在星期天晚上将会在现场为大家服务，希望大家可以去和她们见见面，若是大家挤不进Gorat's的话，也可以尝尝两姊妹亲手做的汉堡，八点整我将会出现享用我的喜欢的冰风暴圣代，这是个人特调的秘方，当然你也可以要求乳品皇后照我的配方给你来一份，这可是只有在股东会当天才对外提供独家秘方。

The Omaha Royals and Albuquerque Dukes will play baseball on Saturday evening, May 2nd, at Rosenblatt Stadium. As usual, your Chairman, shamelessly exploiting his 25% ownership of the team, will take the mound. But this year you will see something new.

在前一天5月2日，星期六晚上，Rosenblatt体育馆将会有一场奥玛哈皇家队对Albuquerque Dukes队的比赛，一如往年厚颜无耻的我会利用拥有该球队25%的特权，站上投手丘担任先发，不过今年我保证各位一定会有新的感受。

In past games, much to the bafflement of the crowd, I have shaken off the catcher's first call. He has consistently asked for my sweeping curve, and I have just as regularly resisted. Instead, I have served up a pathetic fast ball, which on my best day was clocked at eight miles per hour (with a following wind).

过去几年，可能是受到现场观众喧闹声所影响，我总是不顾捕手对我所做出的暗号，虽然他一直要求我投出拿手的变化曲球，但我总是极力反抗，结果总是投出软趴趴的快速球，最快的球速也不过是每小时8英哩(这还是在顺风的情况下)。

There's a story behind my unwillingness to throw the curve ball. As some of you may know, Candy Cummings invented the curve in 1867 and used it to great effect in the National Association, where he never won less than 28 games in a season. The pitch, however, drew immediate criticism from the very highest of authorities, namely Charles Elliott, then president of Harvard University, who declared, "I have heard that this year we at Harvard won the baseball championship because we have a pitcher who has a fine curve ball. I am further instructed that the purpose of the curve ball is to deliberately deceive the batter. Harvard is not in the business of teaching deception." (I'm not making this up.)

其实我之所以不愿意投曲球背后有极大的隐情，大家或许知道，Candy Cummings在1867年发明曲球的时候，曾在国家联盟引起极大的效应，这种球路使得他每个球季至少可以赢得28场胜投，但是这样的投球方式也立刻引起最高当局的严厉批评，当时的哈佛校长Charles Elliott对外宣称，我听说今年哈佛棒球队靠着一位专门投曲球的投手赢得冠军，有人还告诉我，这种曲球基本上是一种欺骗打者的行为，我必须说的是，哈佛从来不教人这种骗人的勾当。

Ever since I learned of President Elliott's moral teachings on this subject, I have scrupulously refrained from using my curve, however devastating its effect might have been on hapless batters. Now, however, it is time for my karma to run over Elliott's dogma and for me to quit holding back. Visit the park on Saturday night and marvel at the majestic arc of my breaking ball.

而自从我知道Elliott校长的教诲之后，我就一直小心翼翼地避免使用到我这种杀人无数拿手的曲球，不过现在已经到了忍无可忍的地步了，我决定再度使出我的杀手戬，星期六晚上大家记得光临球场，让你们见识一下我这魔球的威力。

Our proxy statement includes information about obtaining tickets to the game. We will also provide an information packet describing the local hot spots, including, of course, those 12 Dairy Queens.

股东会资料将告诉大家如何取得球赛入场的门票，里面同时包含一本旅行小手册，介绍本地热门的旅游景点，当然也包括12家乳品皇后在内。

Come to Omaha -- the cradle of capitalism -- in May and enjoy yourself.

欢迎大家在五月莅临奥玛哈-资本主义的摇篮，也预祝大家玩得愉快。

一九九八

Our gain in net worth during 1998 was $25.9 billion, whicincreased the per-share book value of both our Class A and Class B stock by 48.3%. Over the last 34 years (that is, since present management took over) per-share book value has grown from $19 to $37,801, a rate of 24.7% compounded annually.*

1998年本公司的净值增加了259亿美元，每股帐面净值不管是A级股或B级股皆成长了48.3%，总计过去34年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的37,801美元，年复合成长率约为24.7%*。

* All figures used in this report apply to Berkshire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30th that of the A.

*1在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股则拥有A级普通股三十分之一的权利。

Normally, a gain of 48.3% would call for handsprings -- but nothis year. Remember Wagner, whose music has been described as better than it sounds? Well, Berkshire's progress in 1998 -- though more than satisfactory -- was not as good as it looks. That's because most of that 48.3% gain came from our issuing shares in acquisitions.

通常当公司的净值一年能够成长48.3%时，大家应该要高兴的手舞足蹈，不过今年却不行，还记得德国音乐天才华格纳吗? 他的音乐曾被形容为没有想象中好听，嗯! 我想Berkshire在1998年的进展，虽然已经相当令人满意了，但还是没有表面上看起来那么好，主要的原因在于在增加的48.3%净值当中，有绝大部份系来自于因购并交易所发行的新股。

To explain: Our stock sells at a large premium over book valuewhich means that any issuing of shares we do -- whether for cash or as consideration in a merger -- instantly increases our per-share book-value figure, even though we've earned not a dime. What happens is that we get more per-share book value in such transactions than we give up. These transactions, however, do not deliver us any immediate gain in per-share intrinsic value, because in this respect what we give and what we get are roughly equal. And, as Charlie Munger, Berkshire's Vice Chairman and my partner, and I can't tell you too often (though you may feel that we try), it's the per-share gain in intrinsic value that counts rather than the per-share gain in book value. Though Berkshire's intrinsic value grew very substantially in 1998, the gain fell well short of the 48.3% recorded for book value. Nevertheless, intrinsic value still far exceeds book value. (For a more extensive discussion of these terms, and other investment and accounting concepts, please refer to our Owner's Manual, on pages 56-64, in which we set forth our owner-related business principles. Intrinsic value is discussed on pages 61 and 62.)

再进一步说明，由于我们公司目前的股价远高于帐面价值，这意思代表每当我们发行新股，不管是现金增资或者是合并发行新股，都会立即大幅拉高我们每股的帐面净值，但实际上我们没有因此多赚进半毛钱，而真实的情况是，这类交易对我们每股实质价值并不会产生立即的效果，主要是由于我们所得到的跟我们所付出的只能算是相当，而就像我与合伙人查理孟格不厌其烦，但却一再强调的真正重要的是实质的价值的增加而非帐面净值的增加，虽然Berkshire 1998年的实质价值大幅成长，但绝不到帐面净值增加48.3%的那种幅度，不过尽管如此，我还是必须强调，目前的实质价值仍远高于帐面净值，(有关这些名词的说明，请大家参阅股东手册，在里头我们揭示了与股东相关的经营原则)。

We entered 1999 with the best collection of businesses an managers in our history. The two companies we acquired in 1998, General Re and Executive Jet, are first-class in every way -- more about both later -- and the performance of our operating businesses last year exceeded my hopes. GEICO, once again, simply shot the lights out. On the minus side, several of the public companies in which we have major investments experienced significant operating shortfalls that neither they nor I anticipated early in the year. Consequently, our equity portfolio did not perform nearly as well as did the S&P 500. The problems of these companies are almost certainly temporary, and Charlie and I believe that their long-term prospects are excellent.

展望1999年，我们拥有有史以来最佳企业与经理人的黄金组合，我们在1998年买下的两家公司，分别是通用再保与Executive Jet在各方面的条件皆是一时之选(后面还会详加说明)，而原有拥有的企业表现更是超乎我个人的预期， GEICO保险再一次令人瞠目结舌，当然也有不好的消息，几家我们拥有大笔投资的大型上市公司经营纷传缺失，这也是当初我们没有预期到的，也因此使得我们股票投资组合的绩效表现低于同期S&P 500指数，还好这些公司所发生的问题都只是暂时的，查理跟我都相信他们长期发展的远景还是相当的乐观。

In our last three annual reports, we furnished you a tablehat we regard as central to estimating Berkshire's intrinsic value. In the updated version of that table, which follows, we trace our two key components of value, including General Re on a pro-forma basis as if we had owned it throughout the year. The first column lists our per-share ownership of investments (including cash and equivalents but excluding securities held in our financial products operation) and the second column shows our per-share earnings from Berkshire's operating businesses before taxes and purchase-accounting adjustments (discussed on pages 62 and 63), but after all interest and corporate expenses. The second column excludes all dividends, interest and capital gains that we realized from the investments presented in the first column. In effect, the columns show how Berkshire would look if it were split into two parts, with one entity holding our investments and the other operating all of our businesses and bearing all corporate costs.

在最近三年的年报中，我们提供了我们认为可以最能够估计Berkshire实质价值的一张表，在今年刚刚更新资料的表中，我们以拟制的方式将通用再保的数字加入其中，也就是假设该公司自年度一开始就为我们所拥有，第一栏的数字代表我们拥有每股的投资金额(包括现金与约当现金，但扣除财务金融单位持有的证券)，第二栏则是每股在扣除利息与营业费用之后，Berkshire来自本业的营业利益(但未扣除所得税与购买法会计调整数)，当然后者已经扣除了所有来自第一栏投资所贡献的股利收入、利息收入与资本利得，事实上，从这张表可以看出若是把Berkshire分拆成两部份的话会变成怎样，其结果就等于是一家持有我们投资部位的控股公司，以及另一家经营旗下所有事业负担全部成本盈亏的营利事业。

Year
 
1968
 
1978
 
1988
 
1998
 

Investments Per Share
 
$ 53
 
465
 
4,876
 
47,647
 

Pre-tax Earnings Per Share With All Income from Investments Excluded
 
$ 2.87
 
12.85
 
145.77
 
474.45
 

Here are the growth rates of the two segments by decade:

Decade Ending
 
1978
 
1988
 
1998
 
Annual Growth Rate, 1968-1998
 

Investments Per Share
 
24.2%
 
26.5%
 
25.6%
 
25.4%
 

Pre-tax Earnings Per Share With All Income from Investments Excluded
 
16.2%
 
27.5%
 
12.5%
 
18.6%
 

During 1998, our investments increased by $9,604 per share, 25.2%, but per-share operating earnings fell by 33.9%. General Re (included, as noted, on a pro-forma basis) explains both facts. This company has very large investments, and these greatly increased our per-share investment figure. But General Re also had an underwriting loss in 1998, and that hurt operating earnings. Had we not acquired General Re, per-share operating earnings would have shown a modest gain.

回顾1998年，我们每股的投资金额增加了9,604美元，约25.2%，不过每股营业盈余却减少33.9%，主要的原因缘自于通用再保(如先前所说，在今年以拟制的方式并入Berkshire)，这家公司拥有相当大的投资部位，这使得我们每股的投资金额大幅增加，不过另一方面，该公司在1998年也产生承保损失，这又拖累了我们的每股营业盈余表现，事实上，要是我们没有买下通用再保，我们当年的每股营业盈余可能还能维持小幅增加。

Though certain of our acquisitionand operating strategies may from time to time affect one column more than the other, we continually work to increase the figures in both. But one thing is certain: Our future rates of gain will fall far short of those achieved in the past. Berkshire's capital base is now simply too large to allow us to earn truly outsized returns. If you believe otherwise, you should consider a career in sales but avoid one in mathematics (bearing in mind that there are really only three kinds of people in the world: those who can count and those who can't).

虽然某些特定的购并案与经营策略会影响到其中某一栏数字，但我们还是尽量让两栏数字能够均衡发展，不过有一点可以确定的是，我们未来的成长率将远不及过去所创造的水准，Berkshire现在的规模实在是大到我们很难再做出任何重大的突破，若是你不这样认为，你应该去从事业务员的工作，而不是去教数学(请永远记住，世界上只有三种人，一种会算术，另一种不会算术)。

Currently we are woing to compound a net worth of $57.4 billion, the largest of any American corporation (though our figure will be eclipsed if the merger of Exxon and Mobil takes place). Of course, our lead in net worth does not mean that Berkshire outranks all other businesses in value: Market value is what counts for owners and General Electric and Microsoft, for example, have valuations more than three times Berkshire's. Net worth, though, measures the capital that managers must deploy, and at Berkshire that figure has indeed become huge.

净值代表着一家公司经理人可以运用的资金，就这方面而言，Berkshire的规模无疑是相当可观的，现在我们可以掌控的净值高达574亿美元，这数字居所有美国公司之冠，(虽然如果艾克森和Mobil石油合并案成功的话，我们必须让出宝座)，当然这并不代表Berkshire实际的价值，对于股东来说，公司总市值才是最重要的，就这点而言，通用电气与微软的市值就是Berkshire的三倍以上。

Nonetheless, Charlie a I will do our best to increase intrinsic value in the future at an average rate of 15%, a result we consider to be at the very peak of possible outcomes. We may have years when we exceed 15%, but we will most certainly have other years when we fall far short of that -- including years showing negative returns -- and those will bring our average down. In the meantime, you should understand just what an average gain of 15% over the next five years implies: It means we will need to increase net worth by $58 billion. Earning this daunting 15% will require us to come up with big ideas: Popcorn stands just won't do. Today's markets are not friendly to our search for "elephants," but you can be sure that we will stay focused on the hunt.

不过说归说，查理跟我还是希望能够尽力让公司的价值在未来以每年15%的平均速度成长，这是我们认为可能达到的极限，在往后的日子，有时我们可能可以超过15%，但也很有可能远不如这个标准，甚至可能会变成负的，而使得我们平均成长率往下拉，另外大家要知道，所谓每年平均15%的成长率代表在往后的五年之内，我们的净值必须要成长580亿美元，如果没有几个轰轰烈烈的大案子的话，是绝对不可能办的到的，像爆米花摊这种小玩意可不行，而现在的市场环境也不利于我们寻找合适的大象猎物，不过我们可以向大家保证一定会全神贯注。

Whever the future holds, I make you one promise: I'll keep at least 99% of my net worth in Berkshire for as long as I am around. How long will that be? My model is the loyal Democrat in Fort Wayne who asked to be buried in Chicago so that he could stay active in the party. To that end, I've already selected a "power spot" at the office for my urn.

不管未来会如何，有一点我可以向各位保证的是，只要我还在，我都会将我个人99%以上的身家摆在Berkshire，至于能够维持多久? 我则是希望能够效法Fort Wayne忠诚的民主党员，临终时还表示希望死后能够葬在芝加哥，好就近参加党的活动，所以我也在办公室事先选好的一个好位置，以后可以用来摆我的骨灰坛。

Our financial growth has been matched by employment growth We now have 47,566 on our payroll, with the acquisitions of 1998 bringing 7,074 employees to us and internal growth adding another 2,500. To balance this gain of 9,500 in hands-on employees, we have enlarged the staff at world headquarters from 12 to 12.8. (The .8 doesn't refer to me or Charlie: We have a new person in accounting, working four days a week.) Despite this alarming trend toward corporate bloat, our after-tax overhead last year was about $3.5 million, or well under one basis point (.01 of 1%) of the value of the assets we manage.

随着经济实力的增长，我们雇用员工的人数也同步增加，我们现在拥有47,566位员工，其中包含1998年购并通用再保后并进来的7,074人，以及内部增聘的2,500人，而未了服务新增加的9,500个人手，我们的总部人员也从原来的12人扩编为12.8人(0.8指的不是查理或是我本人，而是我们新请的一位会计人员，一个礼拜工作四天)，尽管这是组织浮滥的警讯，但是我们去年税后总部开支却只有区区350万美元，大概占我们管理总资产的一个基本点(万分之一)还不到。

Taxes租税

One beneficiary of our increased size has been the U.S. TreasuryThe federal income taxes that Berkshire and General Re have paid, or will soon pay, in respect to 1998 earnings total $2.7 billion. That means we shouldered all of the U.S. Government's expenses for more than a half-day.

我们规模扩大最直接的受惠者之一就是美国国库，今年光是Berkshire与通用再保已经支付或即将支付的联邦所得税就有27亿美元之谱，这笔钱足够供美国政府支应半天以上的开销。

Follow that thought a little further: If only 625 other U.S taxpayers had paid the Treasury as much as we and General Re did last year, no one else -- neither corporations nor 270 million citizens -- would have had to pay federal income taxes or any other kind of federal tax (for example, social security or estate taxes). Our shareholders can truly say that they "gave at the office."

也就是说，全美国只要有625个像Berkshire及通用再保这样的纳税人的话，其它所有的美国公司或二亿七千万的美国公民都可以不必再支付任何的联邦所得税或其它任何形式的联邦税(包含社会福利或房地产税)，所以Berkshire的股东可以说是"功在国家"。

Writing checks to the IRS that include strings of zeros does nobother Charlie or me. Berkshire as a corporation, and we as individuals, have prospered in America as we would have in no other country. Indeed, if we lived in some other part of the world and completely escaped taxes, I'm sure we would be worse off financially (and in many other ways as well). Overall, we feel extraordinarily lucky to have been dealt a hand in life that enables us to write large checks to the government rather than one requiring the government to regularly write checks to us -- say, because we are disabled or unemployed.

对于查理跟我来说，签发后面有一长串"零"的大额支票一点都不会感到困扰， Berkshire身为一家美国企业，以及我们身为美国公民，得以在美国这个伟大的国家繁荣发展，这是在其它国家所不可能达到的，我想要是我们生在世界上的别的角落，那么就算是我们再怎么努力的逃避税负，我们也不可能像现在这么富有 (也包含生活上其它层面)，从另一个角度来说，我们感到很幸运能够支付一大笔钱给政府，而非因为我们残障或失业，要靠政府三不五时来救济我们。

Berkshire's tax situation isometimes misunderstood. First, capital gains have no special attraction for us: A corporation pays a 35% rate on taxable income, whether it comes from capital gains or from ordinary operations. This means that Berkshire's tax on a long-term capital gain is fully 75% higher than what an individual would pay on an identical gain.

Berkshire的租税负担常常引起外界的误解，首先资本利得对我们并不太有利，企业不论是资本利得或是其它正常的营利都必须支付35%的所得税，这也就是说面对相同的长期资本利得，Berkshire的租税负担要比一般个人要高出75%以上。

Some people harbor another misconception, believing that we can exclude 70% of all dividends we receive from our taxable income. Indeed, the 70% rate applies to most corporations and also applies to Berkshire in cases where we hold stocks in non-insurance subsidiaries. However, almost all of our equity investments are owned by our insurance companies, and in that case the exclusion is 59.5%. That still means a dollar of dividends is considerably more valuable to us than a dollar of ordinary income, but not to the degree often assumed.

另外有些人还抱有一个不正确的观念，以为我们可以将70%以上的股利收入列为免税收入，事实上这种适用于大部分美国企业的优惠，仅适用于Berkshire旗下非保险事业所持有的股票，可惜我们大部分的股份都是由保险事业所持有，这部份的免税比例就只有59.5%，当然这仍然代表每一块钱的股利收入比起其它一般的应税收入来得有价值。

Berkshire truly went all out for the Treasury last year. connection with the General Re merger, we wrote a $30 million check to the government to pay an SEC fee tied to the new shares created by the deal. We understand that this payment set an SEC record. Charlie and I are enormous admirers of what the Commission has accomplished for American investors. We would rather, however, have found another way to show our admiration.

Berkshire去年真的是卯起来贡献国库，像是去年的通用再保合并案，我们就付了3,000万美元给美国证管会作为发行新股的手续费，这金额创下了证管会有史以来的新纪录，查理跟我对于证管会为所有投资人所做的努力感到崇敬，只是如果能用其它方法来表示敬意就更好了。

GEICO (1-800-847-7536) GEICO保险

Combine a great idea with a great manager and you're certain to obtain a great result. That mix is alive and well at GEICO. The idea is low-cost auto insurance, made possible by direct-to-customer marketing, and the manager is Tony Nicely. Quite simply, there is no one in the business world who could run GEICO better than Tony does. His instincts are unerring, his energy is boundless, and his execution is flawless. While maintaining underwriting discipline, Tony is building an organization that is gaining market share at an accelerating rate.

好的理念加上好的经理人，最后一定可以获得好的成果，这样的完美组合在GEICO身上获得最佳的印证，透过直效行销大幅降低成本的汽车保险搭配像Tony Nicely这样优秀的经理人，很显然的全世界再没有其它人可以像Tony可以把GEICO经营的这样好，他的直觉毫无偏差、他的能量没有上限，而他的行动完美无暇，在严守承保纪律的同时，Tony所带领的团队正以超高的速度攻占市场占有率。

This pace has been encouraged by our compensation picies. The direct writing of insurance -- that is, without there being an agent or broker between the insurer and its policyholder -- involves a substantial front-end investment. First-year business is therefore unprofitable in a major way. At GEICO, we do not wish this cost to deter our associates from the aggressive pursuit of new business -- which, as it renews, will deliver significant profits -- so we leave it out of our compensation formulas. What's included then? We base 50% of our associates' bonuses and profit sharing on the earnings of our "seasoned" book, meaning policies that have been with us for more than a year. The other 50% is tied to growth in policyholders -- and here we have stepped on the gas.

这样的速度更因为受到我们特殊的奖励计画激励而加快，通常保单直接销售-也就是不透过代理或中介，直接由保险公司与客户接洽的业务，需要一笔相当大的前置投资，也因此第一年刚接到的保单通常都没有什么利润，不过要是客户在接下来年度能够继续续约的话，公司将享有极高的获利，在GEICO我们为了不希望公司的同仁因而降低争取新业务的企图心，所以我们特别将第一年的数字排除在关乎员工奖金与分红的奖金计算公式之外，其中有50%是基于每季的帐上获利-代表投保期间超过一年以上的保单，另外的50%则是视公司保单数量的成长情况，这也是我们正加紧油门全力冲刺的。

In 1995, the year prior to its acquisition by Berkshire, GEICO spent $33 million on marketing and had 652 telephone counselors. Last year the company spent $143 million, and the counselor count grew to 2,162. The effects that these efforts had at the company are shown by the new business and in-force figures below:

1995年当Berkshire还没有完全买下GEICO时，该公司每年的行销预算是3,300万美元，并有652位电话咨询员，到了去年，公司的行销预算增加为1.43亿美元，电话咨询员的人数也增加至2,162位，这些努力所得到的成果可以从下表该公司新接保单与有效保单数字中看出端倪。

Years
 
1992
 
1994
 
1995
 
1996
 
1997
 
1998
 

New Auto Policies*
 
354,882
 
396,217
 
461,608
 
617,669
 
913,176
 
1,317,761
 

Auto Policies In-Force*
 
2,011,055
 
2,147,549
 
2,310,037
 
2,543,699
 
2,949,439
 
3,562,644
 

* "Voluntary" only; excludes assigned risks and the like.

In 1999, we will again increase our marketing budget, spendinat least $190 million. In fact, there is no limit to what Berkshire is willing to invest in GEICO's new-business activity, as long as we can concurrently build the infrastructure the company needs to properly serve its policyholders.

展望1999年我们将继续增加行销预算到至少1.9亿美元，事实上Berkshire对于GEICO在新业务取得上的投资是没有上限的，只要我们可以帮公司建立起能够客户更好服务的各种措施。

Because of the first-year costs, companies that are concerneabout quarterly or annual earnings would shy from similar investments, no matter how intelligent these might be in terms of building long-term value. Our calculus is different: We simply measure whether we are creating more than a dollar of value per dollar spent -- and if that calculation is favorable, the more dollars we spend the happier I am.

而也由于第一年的成本负担，许多关心短期利益的公司都吝啬于从事相同的投资，不管这些动作对公司长期的利益而言，是如何的有助益，但是我们的盘算就不一样了，我们只是很简单的去评量现在所投入的每一块钱在未来是否能产生高于一块钱的效益，如果估算出来确实有利，那么就算是花再多的钱我也开心。

There is far more to GEICO's success, of course, than low priceand a torrent of advertising. The handling of claims must also be fair, fast and friendly -- and ours is. Here's an impartial scorecard on how we shape up: In New York, our largest-volume state, the Insurance Department recently reported that GEICO's complaint ratio in 1997 was not only the lowest of the five largest auto insurers but was also less than half the average of the other four.

当然GEICO成功的原因决不仅于低价与强势的行销，申诉的处理也要合理、快速、亲切，这里有一个客观的数据可说明这点，在业务量居我们首位的纽约地区，保险主管机关最近公布GEICO在1997年前五大汽车保险公司当中，其申诉比率是最低的，其比例甚至远低于其它四家同业平均数的一半。

GEICO's 1998 profit margin of 6.7% was better than we have anticipated -- and, indeed, better than we wished. Our results reflect an industry-wide phenomenon: In recent years, both the frequency of auto accidents and their severity have unexpectedly declined. We responded by reducing rates 3.3% in 1998, and we will reduce them still more in 1999. These moves will soon bring profit margins down -- at the least to 4%, which is our target, and perhaps considerably lower. Whatever the case, we believe that our margins will continue to be much better than those of the industry.

GEICO 1998年的获利率达到6.7%，超过我们当初的预期，事实上是远高于我们所能想象的程度，我们的成绩反映出产业间普遍存在的一种现象，近几年来，汽车意外发生的频率与程度都比以往减轻许多，也因此我们立刻反应调降3.3%的费率，预计在1999年还会降得更多，虽然这个举动马上使得我们的获利率下降，但我们的目标至少是4%或甚至更低，不过不论如何，我们相信GEICO的获利率还是远比同业的数字来得好的许多。

With GEICO's growth and profitability both outanding in 1998, so also were its profit-sharing and bonus payments. Indeed, the profit-sharing payment of $103 million or 32.3% of salary -- which went to all 9,313 associates who had been with us for more than a year -- may well have been the highest percentage payment at any large company in the country. (In addition, associates benefit from a company-funded pension plan.)

由于GEICO 1998年优异的绩效与获利能力，该公司的分红数字亦跟着水涨船高，总计1.03亿美元，约占薪资的32.3%，由公司全体年资超过一年以上的9,313位同仁共同来分享，这个数字在全美所有公司当中比例可以说是最高的， (此外同仁还可经由公司提拨的退休金持股计画间接受惠)。

The 32.3% may turn out to be a high-water mark, given that the profitability component in our profit-sharing calculation is almost certain to come down in the future. The growth component, though, may well increase. Overall, we expect the two benchmarks together to dictate very significant profit-sharing payments for decades to come. For our associates, growth pays off in other ways as well: Last year we promoted 4,612 people.

虽然公司分红计画中的成长因子应该还会继续维持，但考量到获利因子在未来几乎可以肯定会逐渐下降，所以32.3%的比例可以说是破天荒的新高，当然我们预期这两项因子在未来的十年内仍然会是分红计画中扮演极为重要的角色，不过对于我们的同仁来说，成长还代表着另一个意义，去年总计有4,612位同仁获得升迁。

Impressive as the GEICO figures are, we have far more to do. Our market share improved significantly in 1998 -- but only from 3% to 3.5 %. For every policyholder we now have, there are another ten who should be giving us their business.

虽然GEICO的绩效数字是如此的令人印象深刻，但是我们仍然还有相当大的成长空间，没错! GEICO1998年的市场占有率确实大幅提升，但也只不过从3%增加为3.5%而已，换句话说相较于我们现在服务的每一个保单客户，等于还有十个在外面等待我们去给他们提供服务。

Some of you who are reading this may be in that category. About 40% of those who check our rates find that they can save money by doing business with us. The proportion is not 100% because insurers differ in their underwriting judgements, with some giving more credit than we do to drivers who live in certain geographical areas or work at certain occupations. We believe, however, that we more frequently offer the low price than does any other national carrier selling insurance to all comers. Furthermore, in 40 states we can offer a special discount -- usually 8% -- to our shareholders. So give us a call and check us out.

有些正在读我们年报的人很可能就属于这类的人，在每个来征询GEICO保单费率的人当中，平均有40%的人会发现向我们投保能为他们省下一笔钱，而之所以不是百分之百的原因在于每家保险业者对于风险的判断估计都有所不同，有些保险公司对于居住于某些特定地区的居民或从事某些特定职业的客户有偏好，不过我仍然坚信我们提供给一般民众的费率通常都低于其它全国性的业者，在随年报附赠的GEICO资料中，大家将可以看到我们提供给来自全美40州股东最高8%的折扣费率，所以记得打电话给我们试一试。

You may think that one commercial in this section is enough. But I have another to present, this one directed at managers of publicly-owned companies.

在这段我还有一个广告要打，这广告主要是要写给上市公司的经理人看的。

At Berkshire we feel that telling outanding CEOs, such as Tony, how to run their companies would be the height of foolishness. Most of our managers wouldn't work for us if they got a lot of backseat driving. (Generally, they don't have to work for anyone, since 75% or so are independently wealthy.) Besides, they are the Mark McGwires of the business world and need no advice from us as to how to hold the bat or when to swing.

在Berkshire我们一直认为要教像Tony这样杰出的经理人如何经营公司是一件相当愚蠢的事，事实上要是我们一直在背后指指点点的话，大部份的经理人可能早就干不下去了，(坦白说他们大多根本就可以不必要再靠工作过活，75%以上的人都已经相当有钱)，他们可以说是商场上的强打麦奎尔，根本就不需要我们去指导他如何拿棒子或何时挥棒。

Nevertheless, Berkshire's ownership may make even the best managers more effective. First, we eliminate all of the ritualistic and nonproductive activities that normally go with the job of CEO. Our managers are totally in charge of their personal schedules. Second, we give each a simple mission: Just run your business as if: 1) you own 100% of it; 2) it is the only asset in the world that you and your family have or will ever have; and 3) you can't sell or merge it for at least a century. As a corollary, we tell them they should not let any of their decisions be affected even slightly by accounting considerations. We want our managers to think about what counts, not how it will be counted.

但是由Berkshire掌控企业所有权，却能够让这些经理人有更好的发挥，首先我们去除掉所有一般总裁必须面对所有的繁文缛节与没有生产力的活动，我们的经理人可以全心全意的安排自己个人的行程，第二，我们给予相当明确简单的任务指示，那就是一、像自己拥有公司一样的心态来经营，二、把它当作是你跟你家人在全世界仅有的资产来看待，第三、在有生之年内，你没办法将它卖掉或是让别人给并走，我们告诉他们完全不要被会计帐面方面的考量来影响到其实际经营上的决策，我们希望经理人了解什么才是最关键紧要的事。

Very few CEOs of public companies operate under a similar mandate, mainly because they have owners who focus on short-term prospects and reported earnings. Berkshire, however, has a shareholder base -- which it will have for decades to come -- that has the longest investment horizon to be found in the public-company universe. Indeed, a majority of our shares are held by investors who expect to die still holding them. We can therefore ask our CEOs to manage for maximum long-term value, rather than for next quarter's earnings. We certainly don't ignore the current results of our businesses -- in most cases, they are of great importance -- but we never want them to be achieved at the expense of our building ever-greater competitive strengths.

很少有上市公司的经理人可以如此自在的经营公司，这是因为大部分公司背后的股东往往只着重短期的利益，相较之下，Berkshire背后有几十年来一直相当稳定的股东群，拥有其它上市公司少见的长期投资眼光，事实上，这些股东打算一直持有Berkshire至死方休，也因此旗下的经理人可以用一辈子的时间来经营公司，而不用为了下一季的获利情况来烦恼，当然这绝不代表我们就不关心公司经营的现况，事实上，这点也相当的重要，只是我们不希望只因为一昧追求短期的获利而被迫牺牲掉公司长远发展的竞争优势。

I believe the GEICO story demonstrates the benefits of Berkshire'approach. Charlie and I haven't taught Tony a thing -- and never will -- but we have created an environment that allows him to apply all of his talents to what's important. He does not have to devote his time or energy to board meetings, press interviews, presentations by investment bankers or talks with financial analysts. Furthermore, he need never spend a moment thinking about financing, credit ratings or "Street" expectations for earnings per share. Because of our ownership structure, he also knows that this operational framework will endure for decades to come. In this environment of freedom, both Tony and his company can convert their almost limitless potential into matching achievements.

我想GEICO成功的经验再再显示出Berkshire经营模式的优越性，查理跟我从来就没有指示Tony该怎么做事，我想以后也不会，我们的工作就是提供他一个绝佳的环境，让他能够彻底发挥才能去做该做的事，他不需要把时间耗费在无意义的董事会、记者会或分析师与投资银行业者的演示文稿上，此外他也不必担心公司的资金问题、信用评等或坊间对于公司获利的预期，而更因为我们特殊的股权结构，他更了解这样的营运模式至少可以继续维持长达数十年以上，在这样自由的环境之下，Tony跟他所带领的团队就可以将百分百的心思花在应付外在多变的环境。

If you are running a large, profitable business that will thrive in GEICO-like environment, check our acquisition criteria on page 21 and give me a call. I promise a fast answer and will mention your inquiry to no one except Charlie.

所以如果你同样也在管理一家获利稳定的大型企业，并且向往在像GEICO一样的经营环境下大展鸿图的话，建议你先看看我们报告后段的购并标准，然后打个电话给我，我保证一定会很快可以回复，而且除了查理之外，我不会把这件事告诉其它任何人。

Executive Jet Aviation (1-800-848-6436)企业主管飞行计画

To understand the huge potential at Executive Jet Aviation (EJA) you need some understanding of its business, which is selling fractional shares of jets and operating the fleet for its many owners. Rich Santulli, CEO of EJA, created the fractional ownership industry in 1986, by visualizing an important new way of using planes. Then he combined guts and talent to turn his idea into a major business.

想要了解企业主管飞行计画(EJA)的无限潜力，你必须要先了解这个产业的特性，它专门出售专机部份所有权给客户并且帮所有权人维护保养机队，EJA的总裁-Rich Stantulli预视到飞机使用的革命新方法，于是在1986年发挥其个人绝佳的胆识与才能让其创意成真，开创了专机部份所有权这个新兴行业。

In a fractional ownership plan, you purchase a portion – say 1/8th -- of any of a wide variety of jets that EJA offers. That purchase entitles you to 100 hours of flying time annually. ("Dead-head" hours don't count against your allotment, and you are also allowed to average your hours over five years.) In addition, you pay both a monthly management fee and a fee for hours actually flown.

按照部份所有权计画，你可以买下，由EJA提供各种系列的飞机，比如说八分之一的部份所有权，如此你便可获得该架飞机每年100个小时的飞行时数，(不包含飞机停机的时间，而且你还有权利将这些时数自由分配到五年内)，不过每个月你还必须支付一些管理费以及真正搭乘时的钟点费。

Then, on a few hours notice, EJA makes your plane, or another as least as good, available to you at your choice of the 5500 airports in the U.S. In effect, calling up your plane is like phoning for a taxi.

然后，你只要在几个小时前通知我们，EJA就可以在全美指定的5,500座机场安排好飞机，换言之，这种便利性跟你打电话叫出租车一样的方便。

I first heard about the NetJetsR program, as it is called, about four years ago from Frank Rooney, our manager at H.H. Brown. Frank had used and been delighted with the service and suggested that I meet Rich to investigate signing up for my family's use. It took Rich about 15 minutes to sell me a quarter (200 hours annually) of a Hawker 1000. Since then, my family has learned firsthand -- through flying 900 hours on 300 trips -- what a friendly, efficient, and safe operation EJA runs. Quite simply, they love this service. In fact, they quickly grew so enthusiastic that I did a testimonial ad for EJA long before I knew there was any possibility of our purchasing the business. I did, however, ask Rich to give me a call if he ever got interested in selling. Luckily, he phoned me last May, and we quickly made a $725 million deal, paying equal amounts of cash and stock.

我是在四年前头一次知道它的存在，当时它叫做Netjets计画，经由我们旗下H.H. Brown鞋业的经理人Frank Roony的介绍，Frank本身就常利用该公司所提供的服务，而且觉得相当满意，于是他建议我可以和Rich碰个面研究看看是否可以让我的家族加入，结果Rich前后只花了15分钟的时间就说服我买下四分之一的(也就是每年200小时)的霍克1000型飞机的所有权，从此之后，我的家族在经过900个飞行小时，300次旅程的亲身体验之后，渐渐了解这种服务为客人所带来的亲切、方便与安全性，毫无疑问地就爱上它，而我本人也在家族成员热心的督促下，为该公司的服务在广告中做了见证，而事实上，在当时我还没有想到有可能能够买下这家公司，不过我还是跟Rich提到，如果他有意愿记得随时打电话给我，而幸运的是，Rich真的在去年五月份打电话给我，我们很快就达成这笔7.25亿美元的交易，其中现金与股票各半。

EJA, which is by far the largest operator in its industry, has more than 1,000 customers and 163 aircraft (including 23 "core" aircraft that are owned or leased by EJA itself, so that it can make sure that service is first-class even during the times when demand is heaviest). Safety, of course, is the paramount issue in any flight operation, and Rich's pilots -- now numbering about 650 -- receive extensive training at least twice a year from FlightSafety International, another Berkshire subsidiary and the world leader in pilot training. The bottom line on our pilots: I've sold the Berkshire plane and will now do all of my business flying, as well as my personal flying, with NetJets' crews.

EJA目前已是这个产业规模最大的业者，拥有超过1,000位的客户以及163架的飞机，(其中包含23架由EJA本身拥有或出租的核心飞机，用来确保在订位需求最强劲时还能保持最高品质的服务)，安全性当然是任何飞行单位最重要的考量，而Rich旗下650位的飞行驾驶每年都要到国际飞安公司(另一家由我们转投资全世界最大的飞行员训练公司)接受至少两次广泛的训练课程，对我来说我能做的都做了，我已经把Berkshire原来的专机给卖掉，并把我的事业与家庭连同Netjets的同僚一起飞上天际。

Being the leader in this industry is a major advantage for all concerned. Our customers gain because we have an armada of planes positioned throughout the country at all times, a blanketing that allows us to provide unmatched service. Meanwhile, we gain from the blanketing because it reduces dead-head costs. Another compelling attraction for our clients is that we offer products from Boeing, Gulfstream, Falcon, Cessna, and Raytheon, whereas our two competitors are owned by manufacturers that offer only their own planes. In effect, NetJets is like a physician who can recommend whatever medicine best fits the needs of each patient; our competitors, in contrast, are producers of a "house" brand that they must prescribe for one and all.

在这个产业成为领导品牌是最重要的一件事，我们的客户因为我们遍布全美各地的机队而受惠，因为我们可以提供别家公司比不上的服务，所以我们也可大幅降低飞机停在地面的时间，另一个令客户无法抵挡的致命吸引力是我们提供了各式各样的飞机，从波音、湾流、Falcon、Cessna到雷神，相较之下我们其它两个由飞机制造商经营的竞争对手就只能提供自家生产的飞机，事实上，Netjets就好象是一位医生一样，可以为个别的病人量身订做，依其所需提供不同的配方，不像另外两家业者，都是千篇一律的开出家传的狗皮膏药。

In many cases our clients, both corporate and individual, own fractions of several different planes and can therefore match specific planes to specific missions. For example, a client might own 1/16th of three different jets (each giving it 50 hours of flying time), which in total give it a virtual fleet, obtained for a small fraction of the cost of a single plane.

实际上我们有许多客户，包含企业与一般个人，同时拥有不同种类的飞机部份所有权，以应付不同场合所需不同的机型，举列来说，一个客户可以拥有三种飞机各16分之一的所有权(也就是每年各50小时的飞行时数)，这等于只要花一笔为数不多的钱，就拥有一群机队一般。

Significantly, it is not only small businesses that can benefit from fractional ownership. Already, some of America's largest companies use NetJets as a supplement to their own fleet. This saves them big money in both meeting peak requirements and in flying missions that would require their wholly-owned planes to log a disproportionate amount of dead-head hours.

更重要的是，并不是中小企业才可以利用到这种服务，目前已经有一些大企业利用Netjets来补充本身机队调度的不足，这让他们可以不必因为应付尖峰时间与避免必须长期间停留地面的任务而省下一大笔开支。

When a plane is slated for personal use, the clinching argument is that either the client signs up now or his children likely will later. That's an equation I explained to my wonderful Aunt Alice 40 years ago when she asked me whether she could afford a fur coat. My reply settled the issue: "Alice, you aren't buying it; your heirs are."

当一架飞机被用来当作私人使用，有一个很大的争议那就是不是由现在的客户买单，就是由后辈的子孙来买单，这也是我最敬爱的阿姨Alice在40年前，问我是否应该买一件貂皮大衣时，我回答她的话:"阿姨，你花的不是自己的钱，而是你的继承人的"。

EJA's growth has been explosive: In 1997, it accounted for 31% all corporate jets ordered in the world. Nonetheless, Rich and I believe that the potential of fractional ownership has barely been scratched. If many thousands of owners find it sensible to own 100% of a plane -- which must be used 350-400 hours annually if it's to make economic sense -- there must be a large multiple of that number for whom fractional ownership works.

EJA正以爆炸性的速度成长，1997年31%以上的企业专机订单是由它所下，不过Rice与我都认为飞机部份所有权的潜力根本还未充分的被挖掘，如果目前有成千上万的人认为值得花一整架飞机的钱(也就是每年花350-400个小时飞行)，那么我们认为就应该有更多人需要拥有部份飞机的所有权。

In addition to being a terrific executive, Rich is fun. Like most our managers, he has no economic need whatsoever to work. Rich spends his time at EJA because it's his baby -- and he wants to see how far he can take it. We both already know the answer, both literally and figuratively: to the ends of the earth.

Rich除了身为一位杰出的经理人之外，本人也非常风趣幽默，就像是我们旗下大多数的经理人一样，Rich根本就不需要靠工作来过活，Rich之所以愿意全心全力地投入在EJA，完全因为这是他一手催生带大的孩子，他只想要看自己能够做到怎样的地步，当然我们都已经知道最后的答案，不论是从文字上或是从数字上皆是如此。

And now a small hint to Berkshire directors: Last year I spend more than nine times my salary at Borsheim's and EJA. Just think how Berkshire's business would boom if you'd only spring for a raise.

另外给Berkshire董事会们一个小暗示，去年我光是在波仙珠宝与EJA的花费就是我个人薪水收入的九倍以上，所以大家可以想象到只有给我一点小小的加薪，保证会对Berkshire集团企业的生意有大大的提升。

General Re通用再保

On December 21, we completed our $22 billion acquisition General Re Corp. In addition to owning 100% of General Reinsurance Corporation, the largest U.S. property-casualty reinsurer, the company also owns (including stock it has an arrangement to buy) 82% of the oldest reinsurance company in the world, Cologne Re. The two companies together reinsure all lines of insurance and operate in 124 countries.

12月21号我们完成对通用再保公司220亿美金的购并案，除了拥有这家全美国最大的产物险再保险公司之外，这家公司亦拥有世界上历史最悠久的再保公司-科隆再保82%的股权(包含预计准备要买进的股份)，两家公司合起来将可接受所有保险险种的再保险，并在全世界124个国家设有营业据点。

For many decades, General Re's name has stood for qualityintegrity and professionalism in reinsurance -- and under Ron Ferguson's leadership, this reputation has been burnished still more. Berkshire can add absolutely nothing to the skills of General Re's and Cologne Re's managers. On the contrary, there is a lot that they can teach us.

几十年来，通用再保代表的是再保业界品质、正直与专业的保证，而在Ron Ferguson的领导之下，这个招牌更加获得肯定，关于通用再保的专业， Berkshire实在没有太多的东西可以给他们，反倒是他们应该有很多的东西可以教我们。

Nevertheless, we believe that Berkshire's ownership will benefit General Re in important ways and that its earnings a decade from now will materially exceed those that would have been attainable absent the merger. We base this optimism on the fact that we can offer General Re's management a freedom to operate in whatever manner will best allow the company to exploit its strengths.

不过我们仍然相信Berkshire的所有权可以让通用再保在许多方面受益，而在往后的十年内，通用再保的获利情况应该可以比合并之前要好的许多，而我们的自信心完全建立在我们能够提供通用再保一个可以完全自由发挥的经营环境。

Let's look for a moment at the reinsurance business to understand why General Re could not on its own do what it can under Berkshire. Most of the demand for reinsurance comes from primary insurers who want to escape the wide swings in earnings that result from large and unusual losses. In effect, a reinsurer gets paid for absorbing the volatility that the client insurer wants to shed.

让我们花一点时间来了解为何通用再保自己在再保险业没有办法像在Berkshire之下那样的发挥，再保险的需求大部分来自于第一线保险公司想要规避大型的意外损失所造成获利状况大幅波动的风险，事实上，再保险业者就是因为吸收保险业客户想要规避的变动性而存在。

Ironically, though, a publicly-held reinsurer gets graded by both its owners and those who evaluate its credit on the smoothness of its own results. Wide swings in earnings hurt both credit ratings and p/e ratios, even when the business that produces such swings has an expectancy of satisfactory profits over time. This market reality sometimes causes a reinsurer to make costly moves, among them laying off a significant portion of the business it writes (in transactions that are called "retrocessions") or rejecting good business simply because it threatens to bring on too much volatility.

讽刺的是一家上市的再保险公司必须要同时接受股东以及外界评估其获利稳定的检验，因此盈余变动过大将会影响其债信评等与本益比，就算就长期而言，这家公司或许可以获得更有利的平均报酬，市场的现实有时却可能导致再保公司因此犯下重大的错误，包含被迫放弃原先接下的一大部分业务(业界一般称之为倒退)或放弃上门的好生意，只因为要避免带来获利的不稳定性。

Berkshire, in contrast, happily accepts volatility, just as long as it carries with it the expectation of increased profits over time. Furthermore, we are a Fort Knox of capital, and that means volatile earnings can't impair our premier credit ratings. Thus we have the perfect structure for writing -- and retaining -- reinsurance in virtually any amount. In fact, we've used this strength over the past decade to build a powerful super-cat business.

不过Berkshire却很能够接受这样的不确定性，只要就长期而言，它的预期报酬能够有好的表现，更重要的是，Berkshire可以说是资金的诺克斯金库，也就是说任何盈余的剧烈变动一点也不会影响到我们的债信评等，也因此我们有能力也有意愿签下并自留没有任何上限的再保金额，事实上，过去十年来，我们早已运用这个优势建立起强大的巨灾保险业务。

What General Re gives us, however, is the distribution force technical facilities and management that will allow us to employ our structural strength in every facet of the industry. In particular, General Re and Cologne Re can now accelerate their push into international markets, where the preponderance of industry growth will almost certainly occur. As the merger proxy statement spelled out, Berkshire also brings tax and investment benefits to General Re. But the most compelling reason for the merger is simply that General Re's outstanding management can now do what it does best, unfettered by the constraints that have limited its growth.

而通用再保可以给我们的是行销通路、技术背景与管理技能，让我们得以将原本拥有的财务优势更充分运用到保险业的每一个层面，尤其是通用再保与科隆再保现在可以加速投入国际市场，这块大家看好将呈现高成长的处女地，而就像合并案的公开说明书中所强调的，Berkshire将为通用再保带来租税与投资上的优势，但是更重要的原因还在于通用再保的优秀经营阶层将可以在既有的基础上，摆脱原有的种种束缚，尽情地发挥其潜能。

Berkshire is assuming responsibility for General Re's investment portfolio, though not for Cologne Re's. We will not, however, be involved in General Re's underwriting. We will simply ask the company to exercise the discipline of the past while increasing the proportion of its business that is retained, expanding its product line, and widening its geographical coverage -- making these moves in recognition of Berkshire's financial strength and tolerance for wide swings in earnings. As we've long said, we prefer a lumpy 15% return to a smooth 12%.

Berkshire将会承担管理通用再保投资组合的工作(但科隆再保部份不包含在内)，除此之外我们并不会干涉通用再保的承保业务，我们只算很简单地要求他们继续维持原有的原则，同时利用Berkshire强大的财务实力以及盈余变动的超强忍受力，增加自留业务的比例、扩大现有产品线、增加业务区域，就像是我们一再强调的，我们宁可接受变动剧烈的15%，也不要稳健平顺的12%。

Over time, Ron and his team will maximize General Re's ne potential. He and I have known each other for many years, and each of our companies has initiated significant business that it has reinsured with the other. Indeed, General Re played a key role in the resuscitation of GEICO from its near-death status in 1976.

相信只要给他们一点时间，Ron跟他的团队一定能够将通用再保的潜力发挥到极致，我跟他已经结识好几年了，彼此之间也一直维持有再保业务上的往来，事实上，通用再保在1976年GEICO当初东山再起的过程中，扮演极为重要的角色。

Both Ron and Rich Santulli plan to be at the annual meeting, and I hope you get a chance to say hello to them.

Ron跟Rich两人都将出席今年的股东会，希望届时大家可以过来跟他们两位打声招呼。

The Economics of Property-Casualty Insurance产物意外险的经营

With the acquisition of General Re -- and with GEICO's business mushrooming -- it becomes more important than ever that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most important of all, the long-term outlook for both of these factors.

随着通用再保的加入以及GEICO业务的突飞猛进，大家越来越有必要对如何评估保险业有更多的了解，其中主要的关键因素有(1)这个行业所能产生的浮存金数量(2)以及它的成本(3)最重要的是这些因素长期的展望。

To begin with, float is money we hold but don't own. In a insurance operation, float arises because premiums are received beforelosses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. Typically, this pleasant activity carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.

首先浮存金是一项我们持有但却不属于我们的资金，在保险公司的营运中，浮存金产生的原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以因应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本若远高于货币市场利率时，它就像是一颗极酸的柠檬。

A cautions appropriate here: Because loss costs must be estimated, insurers have enormous latitude in figuring their underwriting results, and that makes it very difficult for investors to calculate a company's true cost of float. Errors of estimation, usually innocent but sometimes not, can be huge. The consequences of these miscalculations flow directly into earnings. An experienced observer can usually detect large-scale errors in reserving, but the general public can typically do no more than accept what's presented, and at times I have been amazed by the numbers that big-name auditors have implicitly blessed. As for Berkshire, Charlie and I attempt to be conservative in presenting its underwriting results to you, because we have found that virtually all surprises in insurance are unpleasant ones.

有一点必须特别注意的是，因为损失成本必须仰赖估算，所以保险业者对于承保结算的成绩有相当大伸缩的空间，连带使得投资人很难正确地衡量一家保险公司真正的浮存金成本，估计错误，通常是无心，但有时却是故意，与真实的结果往往会有很大的差距，而这种结果直接反映在公司的损益表上，有经验的行家通常可以经由公司的准备提列情形发现重大的错误，但对于一般投资大众来说，除了被迫接受财务报表的数字之外，别无他法，而我个人常常被这些经过各大会计师事务所背书的财务报告所吓到，至于就Berkshire本身而言，查理跟我在编列财务报表时，都尽量采取最保守的做法，因为就我们个人的经验而言，保险业所发生的意外，通常都不会是什么好消息。

The table that follows shows the float generated by Berkshire'insurance operations since we entered the business 32 years ago. The data are for every fifth year and also the last, which includes General Re's huge float. For the table we have calculated our float -- which we generate in large amounts relative to our premium volume -- by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Got that?)

下表中所显示的数字是，Berkshire进入保险事业32年以来所贡献的浮存金，资料以每五年计，而最近的五年还包含通用再保大量的浮存金在内，可说是大获全胜，在这张计算浮存金的表中，我们将所有的损失准备、损失费用调整准备、再保预先收取的资金与未赚取保费加总后，再扣除应付佣金、预付购并成本、预付税负以及取得再保业务的相关递延费用，得出浮存金的数额，弄清楚了吗?? 相对于我们的保费收入总额，我们的浮存金部位算是相当大的。

Year
 
1967
 
1972
 
1977
 
1982
 
1987
 
1992
 
1997
 
1998
 

Average Float(in $ millions)
 
17
 
70
 
139
 
221
 
1267
 
2290
 
7093
 
22,762 (yearend)
 

Impressive as the growth in our float has been -- 25.4compounded annually -- what really counts is the cost of this item. If that becomes too high, growth in float becomes a curse rather than a blessing.

每年25.4%的成长确实令人印象深刻，不过真正重要的是取得浮存金的成本，如果成本过高，那么浮存金的成长就可能变成一项诅咒而非幸福。

At Berkshire, the news is all good: Our average cost over the 3years has been well under zero. In aggregate, we have posted a substantial underwriting profit, which means that we have been paid for holding a large and growing amount of money. This is the best of all worlds. Indeed, though our net float is recorded on our balance sheet as a liability, it has had more economic value to us than an equal amount of net worth would have had. As long as we can continue to achieve an underwriting profit, float will continue to outrank net worth in value.

在Berkshire 我们的记录算是不错的了，32年来我们的平均成本远低于零，总的来说，我们享有相当多的承保利益，也就是说我们在持有一笔大额且不断成长的资金的同时，还能获得额外的利益，这是全世界之最，虽然就会计原则而言，浮存金在会计报表系属于负债，但实际上，这些负债对于Berkshire而言，其价值远甚至高于列在帐上的其它股东权益，而只要我们在承保上能够持续维持利益的话，这些浮存金的价值就远胜于帐上的净值。

During the next few years, Berkshe's growth in float may well be modest. The reinsurance market is soft, and in this business, relationships change slowly. Therefore, General Re's float -- 2/3rds of our total -- is unlikely to increase significantly in the near term. We do expect, however, that our cost of float will remain very attractive compared to that of other insurers.

在往后的几年内，Berkshire浮存金的成长速度可能会略微减缓，再保险的市场相当低迷，在这行商业关系的变动相当缓慢，也因此占我们总浮存金将近三分之二的通用再保浮存金在可见的未来很难有重大的进展，不过我们仍然预期Berkshire浮存金的成本相较于其它同业能够维持相当低的水准。

Sources of Reported Earnings帐列盈余的来源

The table that follows shows the main sources of Berkshire'reported earnings. In this presentation, purchase-accounting adjustments are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. For the reasons discussed on pages 62 and 63, this form of presentation seems to us to be more useful to investors and managers than one utilizing generally-accepted accounting principles (GAAP), which require purchase-premiums to be charged off business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

Berkshire's Share of Net Earnings(after taxes and minority interests) (in millions)

　
 
Pre-Tax Earnings
 
　
 
 
 

　
 
1998
 
　
 
1997
 
　
 
1998
 
　
 
1997
 

Operating Earnings: Insurance Group:
 
　
 
　
 
　
 
　
 
　
 
　
 
　
 

Underwriting -- Super-Cat .
 
$154
 
　
 
$283
 
　
 
$100
 
　
 
$183
 

Underwriting -- Other Reinsurance
 
(175)
 
　
 
(155)
 
　
 
(114)
 
　
 
(100)
 

Underwriting -- GEICO
 
269
 
　
 
281
 
　
 
175
 
　
 
181
 

Underwriting -- Other Primary
 
17
 
　
 
53
 
　
 
10
 
　
 
34
 

Net Investment Income
 
974
 
　
 
882
 
　
 
731
 
　
 
704
 

Buffalo News
 
53
 
　
 
56
 
　
 
32
 
　
 
33
 

Finance and Financial Products Businesses
 
205
 
　
 
28
 
　
 
133
 
　
 
18
 

Flight Services
 
181
 
(1)
 
140
 
　
 
110
 
(1)
 
84
 

Home Furnishings
 
72
 
　
 
57
 
(2)
 
41
 
　
 
32
 

International Dairy Queen
 
58
 
　
 
--
 
　
 
35
 
　
 
--
 

Jewelry.
 
39
 
　
 
32
 
　
 
23
 
　
 
18
 

Scott Fetzer (excluding finance operation)
 
137
 
　
 
119
 
　
 
85
 
　
 
77
 

See's Candies
 
62
 
　
 
59
 
　
 
40
 
　
 
35
 

Shoe Group
 
33
 
　
 
49
 
　
 
23
 
　
 
32
 

General Re
 
26
 
(3)
 
--
 
　
 
16
 
(3)
 
--
 

Purchase-Accounting Adjustments
 
(123)
 
　
 
(101)
 
　
 
(118)
 
　
 
(94)
 

Interest Expense (4)
 
(100)
 
　
 
(107)
 
　
 
(63)
 
　
 
(67)
 

Shareholder-Designated Contributions
 
(17)
 
　
 
(15)
 
　
 
(11)
 
　
 
(10)
 

Other.
 
34
 
　
 
60
 
　
 
29
 
　
 
37
 

Operating Earnings.
 
1,899
 
　
 
1,721
 
　
 
1,277
 
　
 
1,197
 

Capital Gains from Investments.
 
2,415
 
　
 
1,106
 
　
 
1,553
 
　
 
704
 

Total Earnings - All Entities.
 
$4,314
 
　
 
$2,827
 
　
 
$ 2,830
 
　
 
$1,901
 

(1) Includes Executive Jet from August 7, 1998.
(2) Includes Star Furniture from July 1, 1997.
 
(3) From date of acquisition, December 21, 1998.
(4) Excludes interest expense of Finance Businesses.
 

Yocan be proud of our operating managers. They almost invariably deliver earnings that are at the very top of what conditions in their industries allow, meanwhile fortifying their businesses' long-term competitive strengths. In aggregate, they have created many billions of dollars of value for you.

大家绝对可以我们旗下优秀的经理人为荣，他们几乎都能够在各自产业所能允许的情况下创造出最好的获利，同时还能继续强化企业长期的竞争优势，总的来说，他们已为所有的股东创造出数十亿美元的价值。

An example: In my 1994 letter, I reported on Ralph Schey'extraordinary performance at Scott Fetzer. Little did I realize that he was just warming up. Last year Scott Fetzer, operating with no leverage (except for a conservative level of debt in its finance subsidiary), earned a record $96.5 million after-tax on its $112 million net worth.

举例来说，在1994年的年报中，我曾经向各位提到Ralph在史考特飞兹的杰出表现，只是我万万没想到的是那时还只能算是他的热身阶段，去年在没有任何借款的情况下(除了其财务子公司的一点借款之外)，靠着1.12亿美元的净值，竟缔造出9,650万美元的惊人税后净利。

Today, Berkshire has an unusually large number of individuals such as Ralph, who are truly legends in their industries. Many of these joined us when we purchased their companies, but in recent years we have also identified a number of strong managers internally. We further expanded our corps of all-stars in an important way when we acquired General Re and EJA.

时至今日，Berkshire 有一大群杰出的明星份子，就像Ralph等在各自的产业都是一方之霸，其中很多人是在我们买下公司时，就已经加入了我们的行列，不过近来年我们也从内部发掘了不少的人才，而最近在购并通用再保与EJA之后，更让我们的梦幻队伍声势大振。

Charlie and I have the easy jobs at Berkshire: We do very little except allocate capital. And, even then, we are not all that energetic. We have one excuse, though: In allocating capital, activity does not correlate with achievement. Indeed, in the fields of investments and acquisitions, frenetic behavior is often counterproductive. Therefore, Charlie and I mainly just wait for the phone to ring.

查理跟我在Berkshire的工作其实很简单，主要的任务就是资金分配，即便是如此我们的态度也不是那么的积极，其中有一个原因在于做的多，不代表就拿得多，事实上，在投资与购并的世界中，疯狂的行为往往会造成反效果，也因此查理跟我通常都只是静静地等待电话铃响。

Our managers, however, work very hard -- and it shows Naturally, they want to be paid fairly for their efforts, but pay alone can't explain their extraordinary accomplishments. Instead, each is primarily motivated by a vision of just how far his or her business can go -- and by a desire to be the one who gets it there. Charlie and I thank them on your behalf and ours.

当然我们的经理人也非常的努力，且成效显著，而很自然的，他们也希望自己的努力可以得到公平的对待，只是金钱的报酬并不足以解释他们为何能有这样杰出的成就，主要的动力还在于每个经理人都想要了解自己所带领的企业到底能够发挥到怎样的境界，为此，查理跟我谨代表大家向他们致上十二万分的谢意。

Additional information about our various businesses is given pages 39-53, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 65-71, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company.

在年报中你可以找到依照一般公认会计原则编制，详细的部门别信息，另外你还可以找到经过重编，依照Berkshire四大部门编排的信息，这是查理跟我认为最能够完整呈现Berkshire现况的模式。

Normally, we follow this section with one on "Look-Through Earnings. Because the General Re acquisition occurred near yearend, though, neither a historical nor a pro-forma calculation of a 1998 number seems relevant. We will resume the look-through calculation in next year's report.

通常接下来这一段应该是报告完整透视盈余，但是由于通用再保的购并案发生的时点接近年底，所以不管是历史性或拟制性的1998年的获利数字都已无关紧要，在明年的报告中，我们会再恢复完整透视盈余的计算式。

Investments投资

Below we present our common stock investments. Those with market value of more than $750 million are itemized.

下表是Berkshire市价超过七亿五千万美元以上的股票投资。12/31/98(dollars in millions)

Shares
 
Company
 
Cost*
 
Market
 

50,536,900
 
American Express Company .. . . . .
 
$1,470
 
$ 5,180
 

200,000,000
 
The Coca-Cola Company . . . . . . .. .
 
1,299
 
13,400
 

51,202,242
 
The Walt Disney Company . . . . . .
 
281
 
1,536
 

60,298,000
 
Freddie Mac ..
 
308
 
3,885
 

96,000,000
 
The Gillette Company . . . . . . . .
 
600
 
4,590
 

1,727,765
 
The Washington Post Company . . . . . .
 
11
 
999
 

63,595,180
 
Wells Fargo & Company . . . .. . . .
 
392
 
2,540
 

　
 
Others . . . . . . .. . . .
 
2,683
 
5,135
 

　
 
Total Common Stocks . . . . . . . .
 
$ 7,044
 
$ 37,265
 

Represents tax-basis cost which, in aggregate, is $1.5 billion less than GAAP cost. *系以税务为基础的成本，比一般公认会计原则的帐面成本少15亿美元。

During the year, we slightly increased our holdings in America Express, one of our three largest commitments, and left the other two unchanged. However, we trimmed or substantially cut many of our smaller positions. Here, I need to make a confession (ugh): The portfolio actions I took in 1998 actually decreased our gain for the year. In particular, my decision to sell McDonald's was a very big mistake. Overall, you would have been better off last year if I had regularly snuck off to the movies during market hours.

今年我们稍微提高了在美国运通的持股，至于其余另外两项重大的股票投资则维持不变，不过在此同时我们也大幅出脱其余一些较小的投资部位，在这里我也必须承认，嗯! 我在1998年做的一些举动事实上导致我们的利得不增反减，尤其是决定卖出麦当劳使得我们损失惨重，也就是说如果去年我在股票交易时间一动也不动的话，大家可能会更好过一点。

At yearend, we held more than $15 billion in cash equivalent (including high-grade securities due in less than one year). Cash never makes us happy. But it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's. Charlie and I will continue our search for large equity investments or, better yet, a really major business acquisition that would absorb our liquid assets. Currently, however, we see nothing on the horizon.

到年底，我们手上持有超过150亿美元的约当现金(包含一年内到期的优质债券)，抱着这么多现金让我们感到相当不自在，但是我们宁愿让这150亿美元放在我们的手里发痒，也不要让他们轻轻松松落入他人的口袋里，当然查理跟我还是会继续去寻找合适的大型股票投资，当然要是能来一个真正的企业购并案会更好，以消化我们手上过剩的流动资金，不过到目前为止，我们还没有发现任何潜在的目标。

Once we knew that the General Re merger would definitely ke place, we asked the company to dispose of the equities that it held. (As mentioned earlier, we do not manage the Cologne Re portfolio, which includes many equities.) General Re subsequently eliminated its positions in about 250 common stocks, incurring $935 million of taxes in the process. This "clean sweep" approach reflects a basic principle that Charlie and I employ in business and investing: We don't back into decisions.

当整个合并案正式敲定之后，我们立刻要求公司处分掉手头上所有的股票投资 (就像之前提到过的，这不包含科隆再保手上持有的各类有价证券)，而通用再保也立刻将手上超过250种以上的股票出脱，为此还缴了9.35亿美元的税，这个清仓的动作充分反应查理跟我在经营与投资上的基本原则，我们不替过去决策背书。

Last year I deviated from my standard practice of not disclosure our investments (other than those we are legally required to report) and told you about three unconventional investments we had made. There were several reasons behind that disclosure. First, questions about our silver position that we had received from regulatory authorities led us to believe that they wished us to publicly acknowledge this investment. Second, our holdings of zero-coupon bonds were so large that we wanted our owners to know of this investment's potential impact on Berkshire's net worth. Third, we simply wanted to alert you to the fact that we sometimes do make unconventional commitments.

去年我打破从来不主动公开投资组合的惯例(除非法令有特别要求)，告诉大家我们最近参与的三项不同于以往的投资，之所以会这样做主要有几个原因，第一关于投资银币，主管机关提出的一些问题，让我们感觉他们希望我们能够公开承认这项投资的存在，第二由于零息债券的投资部位大到让我们觉得还是让我们的股东知道这项投资对公司净值的影响性会比较好，第三我们只是要让大家知道，三不五时我们还是会做出一些与以往大不相同的投资动作。

Normally, however, as discussed in the Owner's Manual on page 61, we see no advantage in talking about specific investment actions. Therefore -- unless we again take a position that is particularly large -- we will not post you as to what we are doing in respect to any specific holding of an unconventional sort. We can report, however, that we have eliminated certain of the positions discussed last year and added certain others.

不过就像是我们在股东手册一再提到的，我们不认为主动揭露特定的投资动作会给公司带来任何的好处，也因此除非我们再度在某些特别的项目有非常大笔投资，我们将不会再向各位报告我们在某些非传统投资的有关事项，当然我们还是会定期向大家报告去年我们出脱的某些部位或是新增了某些投资部位。

Our never-comment-even-if-untrue policy in regard to investments may disappoint "piggybackers" but will benefit owners: Your Berkshire shares would be worth less if we discussed what we are doing. Incidentally, we should warn you that media speculation about our investment moves continues in most cases to be incorrect. People who rely on such commentary do so at their own peril.

我们这种对投资"就算不对也不评论"的做法，虽然让一些有意搭顺风车的人无法得逞，但却也能达到保护股东权益的目的，因为如果我们不断地公开讨论所有的投资细节，将会严重损及各位所持有的Berkshire股份的价值，同时我也要提醒大家通常媒体报导有关我们的投资动向往往都是错误的，相信他们话的人可能会自食恶果。

Accounting -- Part 1会计问题-第一部份

Our General Re acquisition put a spotlight on an egregious flaw in accounting procedure. Sharp-eyed shareholders reading our proxy statement probably noticed an unusual item on page 60. In the pro-forma statement of income -- which detailed how the combined 1997 earnings of the two entities would have been affected by the merger -- there was an item stating that compensation expense would have been increased by $63 million.

我们与通用再保之间的购并案反映出会计原则一直以来存在的一个重大瑕疵，眼尖的股东在阅读合并相关的股东会文件时，应该都会发现其中有一项不寻常的项目，在拟制性的损益表中，清楚仿真出如果两者1997年的盈余如果在合并后会是怎么的结果，其中有一项薪资酬劳费用因为合并而增加了6,300万美元。

This item, we hasten to add, does not signal that either Charlie I have experienced a major personality change. (He still travels coach and quotes Ben Franklin.) Nor does it indicate any shortcoming in General Re's accounting practices, which have followed GAAP to the letter. Instead, the pro-forma adjustment came about because we are replacing General Re's longstanding stock option plan with a cash plan that ties the incentive compensation of General Re managers to their operating achievements. Formerly what counted for these managers was General Re's stock price; now their payoff will come from the business performance they deliver.

这个项目我必须特别强调的是并不代表查理跟我的个性有任何重大的改变(他还是一样搭乘长途巴士出差，并以富兰克林的名字订位)，同时也不表示通用再保本身的会计政策有何疏失之处，该公司业已完全依照一般公认会计原则运作，实际的情形是我们特别要求通用再保将原先发给员工的认股权全部以等值的现金奖励取代，在此之前与这些经理人本身权益息息相关的是公司的股价，在此之后，他们可以领到的报酬完全要看他们各自负责单位的绩效表现。

The new plan and the terminated option arrangement have matching economics, which means that the rewards they deliver to employees should, for a given level of performance, be the same. But what these people could have formerly anticipated earning from new option grants will now be paid in cash. (Options granted in past years remain outstanding.)

新的计画与先前的认股权计画对公司员工来说具有相同的效益，也就是说在相同的表现之下，公司给予员工同样的报酬奖励，只不过原先大家预期可以获得的股票将会改以现金取代，(至于先前已经发放的选择权则继续保持流通在外)。

Though the two plans are an economic wash, the cash plan we are putting in will produce a vastly different accounting result. This Alice-in-Wonderland outcome occurs because existing accounting principles ignore the cost of stock options when earnings are being calculated, even though options are a huge and increasing expense at a great many corporations. In effect, accounting principles offer management a choice: Pay employees in one form and count the cost, or pay them in another form and ignore the cost. Small wonder then that the use of options has mushroomed. This lop-sided choice has a big downside for owners, however: Though options, if properly structured, can be an appropriate, and even ideal, way to compensate and motivate top managers, they are more often wildly capricious in their distribution of rewards, inefficient as motivators, and inordinately expensive for shareholders.

虽然两项计画在经济实质上相当，但我们改采的现金奖励计画在会计帐面上却相当不利，这种爱莉丝梦游仙境的结果主要起源于会计原则在计算公司获利时，根本上忽略认股权的成本，虽然在许多大企业员工认股权早已成为公司庞大的成本负担，事实上，会计原则给予公司经理人一个相当弹性的空间，若你以这种形式给予员工报酬，就必须计入成本，但若你以另一种形式给予员工报酬，就不必计入成本，也难怪员工认股权已经到了过度泛滥的地步，一面倒地采用这种方式使得公司的股东权益大大受损，虽然我承认选择权若能够好好的规划，有时候是可以成为一种补偿同时激励高阶经理人的好方法，只是大部分的时候，他们通常过于慷慨，严重损及原有股东的利益，并不适合作为一项好的激励工具。

Whatever the merits of options may be, their accounting treatment is outrageous. Think for a moment of that $190 million we are going to spend for advertising at GEICO this year. Suppose that instead of paying cash for our ads, we paid the media in ten-year, at-the-market Berkshire options. Would anyone then care to argue that Berkshire had not borne a cost for advertising, or should not be charged this cost on its books?

不过不管选择权到底有怎样的优点，有关它们的会计处理原则实在是太离谱，试想今年我们预计投入1.9亿美元在GEICO汽车保险的广告之上，假若我们不支付现金而改以同等价值的Berkshire股票选择权作为给予厂商的对价，那么有没有人会跳出来说Berkshire的广告怎么就可以不花一毛钱，难道它不应该反应在公司的会计帐簿之上吗?

Perhaps Bishop Berkeley -- you may remember him as the philosopher who mused about trees falling in a forest when no one was around -- would believe that an expense unseen by an accountant does not exist. Charlie and I, however, have trouble being philosophical about unrecorded costs. When we consider investing in an option-issuing company, we make an appropriate downward adjustment to reported earnings, simply subtracting an amount equal to what the company could have realized by publicly selling options of like quantity and structure. Similarly, if we contemplate an acquisition, we include in our evaluation the cost of replacing any option plan. Then, if we make a deal, we promptly take that cost out of hiding.

或许Berkeley主教，(大家或许还记得他曾经提到一棵倒在无人迹深山中的大树的笑话)，会真的相信会计师没有发现的成本就代表它不存在，不过要查理跟我接受这样的概念实在是有点困难，当我们考虑要投资一家有发行选择权的公司，我们会先将这家公司的获利能力向下修正，直接扣除若对外公开发行这些选择权所能得到的对价，同样的，要是我们准备要购并一家公司时，我们也会将更换原有选择权的成本列入考量，然后等到合并案正式通过后，我们会立即将相关成本反应在会计帐上。

Readers who disagree with me about options will by this time be mentally quarreling with my equating the cost of options issued to employees with those that might theoretically be sold and traded publicly. It is true, to state one of these arguments, that employee options are sometimes forfeited -- that lessens the damage done to shareholders -- whereas publicly-offered options would not be. It is true, also, that companies receive a tax deduction when employee options are exercised; publicly-traded options deliver no such benefit. But there's an offset to these points: Options issued to employees are often repriced, a transformation that makes them much more costly than the public variety.

不同意我对选择权看法的读者这时可能会抗议我将发给员工认股权的成本跟对外公开发行的股票选择权划上等号，没有错，在这些争辩中，员工的认股权有时会被没收，使得股东权益受损的程度有可能会减小，公开发行的选择权就没有这项优点，而员工在行使认股权时，公司也可因而获得抵税权，公开发行的选择权也没有这项好处，但是在另外一方面，员工选择权的转换价格常常会做修正，比起公开发行的选择权来说，所付出的代价更为高昂。

It's sometimes argued that a non-transferable option given to an employee is less valuable to him than would be a publicly-traded option that he could freely sell. That fact, however, does not reduce the cost of the non-transferable option Giving an employee a company car that can only be used for certain purposes diminishes its value to the employee, but does not in the least diminish its cost to the employer.

也有人认为限制移转的员工认股权其价值对于员工来说，比没有可以公开交易的选择权来得低，但这种讲法并没有办法淡化公司发行认股权给员工所需付出的代价，就像是公司配给员工的配车，虽然限制员工只能作为公务使用，但是这并不代表公司就可以不必花钱买车。

The earning revisions that Charlie and I have made for options in recent years have frequently cut the reported per-share figures by 5%, with 10% not all that uncommon. On occasion, the downward adjustment has been so great that it has affected our portfolio decisions, causing us either to make a sale or to pass on a stock purchase we might otherwise have made.

而查理跟我在对这类选择权所作的盈余修正通常会在5%以上，而就算是10%以上的幅度也不会令人感到意外，有时调整的幅度甚至大到影响我们的投资决策，有时更因此被迫要将持股卖出或是放弃买进原先看上的投资标的。

A few years ago we asked three questions in these pages to which we have not yet received an answer: "If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?"

几年前，我们就曾提出至今还没有得到解答的三个问题，"如果选择权不算是一种报酬的话，那它又算是什么? 而如果给予员工的报酬不算是一种费用的话? 那它又算是什么? 而如果费用不必列入损益表计算盈余的话，那么又应该把它们摆到哪里去呢??"

Accounting -- Part 2会计问题-第二部份

The role that managements have played in stock-option accounting has hardly been benign: A distressing number of both CEOs and auditors have in recent years bitterly fought FASB's attempts to replace option fiction with truth and virtually none have spoken out in support of FASB. Its opponents even enlisted Congress in the fight, pushing the case that inflated figures were in the national interest.

管理阶层在员工认股选择权会计问题上所扮演的角色绝对不能马虎，最近有一群公司主管与会计师极力反对美国财务会计准则委员会打算将原先不实的选择权予以更正，但结果却没有人公开表示支持，反对者甚至动员国会议员参与游说，将这种虚增盈余的议题提升到国家利益的层次。

Still, I believe that the behavior of managements has been even worse when it comes to restructurings and merger accounting. Here, many managements purposefully work at manipulating numbers and deceiving investors. And, as Michael Kinsley has said about Washington: "The scandal isn't in what's done that's illegal but rather in what's legal."

此外，我认为有些管理当局在公司再造与合并的会计处理上的心态更为可议，很多管理当局刻意操纵损益，欺骗投资人，而就像Michael Kinsley曾经批评华府的"真正的丑闻不是那些违反法律的，而是那些完全合法的行为"。

It was once relatively easy to tell the good guys in accounting from the bad: The late 1960's, for example, brought on an orgy of what one charlatan dubbed "bold, imaginative accounting" (the practice of which, incidentally, made him loved for a time by Wall Street because he never missed expectations). But most investors of that period knew who was playing games. And, to their credit, virtually all of America's most-admired companies then shunned deception.

在以前透过财务报表，很容易可以分辨一家公司的好坏，但时至1960年代后期，却掀起一波骗徒称之为"大胆且富想象力的会计"的热潮，(这种做法在当时受到华尔街人士的热烈欢迎，因为他们从来都不会让人失望)，不过在当时大家都知道谁是老千，至于一般受到崇敬的美国大公司基本上都洁身自好，相当爱惜自己的羽毛。

In recent years, probity has eroded. Many major corporations still play things straight, but a significant and growing number of otherwise high-grade managers -- CEOs you would be happy to have as spouses for your children or as trustees under your will -- have come to the view that it's okay to manipulate earnings to satisfy what they believe are Wall Street's desires. Indeed, many CEOs think this kind of manipulation is not only okay, but actually their duty.

只是近年来，道德逐渐沦丧，虽然许多大企业还是开大门走大路，不过却有越来越多所谓高格调的经理人，(就是那种你想要把女儿许配给他或请他担任遗嘱执行人的人)，渐渐认为玩弄数字以符合华尔街预期的做法没有什么大不了的，没错，有许多经理人不但觉得这类操纵数字的行为很正常，甚至是他们的工作责任之一。

These managers start with the assumption, all too common, that their job at all times is to encourage the highest stock price possible (a premise with which we adamantly disagree). To pump the price, they strive, admirably, for operational excellence. But when operations don't produce the result hoped for, these CEOs resort to unadmirable accounting stratagems. These either manufacture the desired "earnings" or set the stage for them in the future.

这些经理人一开始往往就认定他们的主要工作之一是让公司的股价越高越好， (关于这点我们实在不敢苟同)，而为了撑高股价，他们可以说是无所不用其极地在公司营运上冲刺，只是当公司营运结果不若预期时，他们自然而然地会想到运用不当的会计手法，不是"制造"出想要的盈余数字，就是预埋伏笔，在未来的盈余做手脚。

Rationalizing this behavior, these managers often say that their shareholders will be hurt if their currency for doing deals -- that is, their stock -- is not fully-priced, and they also argue that in using accounting shenanigans to get the figures they want, they are only doing what everybody else does. Once such an everybody's-doing-it attitude takes hold, ethical misgivings vanish. Call this behavior Son of Gresham: Bad accounting drives out good.

而为了让这样的行为合理化，这些经理人常常表示如果公司股票的价格不能合理反应其价值，则公司股东的权益将会受损，同时他们也声称运用会计骗术以得到想要的数字的做法很普遍，而一旦这种"别人都这样，为何我不行"的想法生根后，道德方面的顾虑早已消失殆尽，Gresham之子称这样的行为叫做:邪恶的会计创造出伪装的善良。

The distortion du jour is the "restructuring charge," an accounting entry that can, of course, be legitimate but that too often is a device for manipulating earnings. In this bit of legerdemain, a large chunk of costs that should properly be attributed to a number of years is dumped into a single quarter, typically one already fated to disappoint investors. In some cases, the purpose of the charge is to clean up earnings misrepresentations of the past, and in others it is to prepare the ground for future misrepresentations. In either case, the size and timing of these charges is dictated by the cynical proposition that Wall Street will not mind if earnings fall short by $5 per share in a given quarter, just as long as this deficiency ensures that quarterly earnings in the future will consistently exceed expectations by five cents per share.

有一种会计科目叫做"重整损失"，在法理上虽然属于合法但却通常被当作操纵损益的工具，通常公司会将多年来累积的开支在单一个季节一次提列损失，这是一种典型让投资人大失所望的骗术，有时候，公司则是为了将过去塑造不实在的盈余所累积的垃圾一次出清或是为虚增未来年度的盈余预先做铺路，不管怎样，这些做法的主要前提都是抓住华尔街只关心未来年度的盈余高于预期五分钱，却一点也不在乎公司当季的盈余少了五块钱的心理。

This dump-everything-into-one-quarter behavior suggests a corresponding "bold, imaginative" approach to -- golf scores. In his first round of the season, a golfer should ignore his actual performance and simply fill his card with atrocious numbers -- double, triple, quadruple bogeys -- and then turn in a score of, say, 140. Having established this "reserve," he should go to the golf shop and tell his pro that he wishes to "restructure" his imperfect swing. Next, as he takes his new swing onto the course, he should count his good holes, but not the bad ones. These remnants from his old swing should be charged instead to the reserve established earlier. At the end of five rounds, then, his record will be 140, 80, 80, 80, 80 rather than 91, 94, 89, 94, 92. On Wall Street, they will ignore the 140 -- which, after all, came from a "discontinued" swing -- and will classify our hero as an 80 shooter (and one who never disappoints).

这种将所有的垃圾在当季一次出清的做法跟高尔夫球场上一种大胆偷机的方法类似，在球季一开始，取巧的高尔夫球员不管本身实际的实力，先在计分卡上填上最离谱的成绩-柏忌、双柏忌、三柏忌，结果一算下来可能有140杆之多，接着他再跑到高尔夫球店给教练表示他想要调整一下不理想的挥杆，然后等到他再度回到球场上时，他就专挑好的洞的成绩，而不好的部份则全部归到先前所预留的准备，结果五回合下来，他的成绩就变成140杆、80杆、80杆、80杆、80杆，而不是本来的91杆、94杆、89杆、94杆、92杆，不过对华尔街的哪些人来说，他们根本就不管最前面的140杆，因为那不是正常情况下的表现，然后直接把这位选手归类为平均80杆的高手(而且成绩还相当稳定)。

For those who prefer to cheat up front, there would be a variance of this strategy. The golfer, playing alone with a cooperative caddy-auditor, should defer the recording of bad holes, take four 80s, accept the plaudits he gets for such athleticism and consistency, and then turn in a fifth card carrying a 140 score. After rectifying his earlier scorekeeping sins with this "big bath," he may mumble a few apologies but will refrain from returning the sums he has previously collected from comparing scorecards in the clubhouse. (The caddy, need we add, will have acquired a loyal patron.)

而对于这种喜欢偷鸡摸狗的球员来说，有几个变量是他们要注意的，首先球员要找到能够配合的杆弟-也就是会计师，好让他可以将不好的洞数往后递延，顺利地先拿下四局80杆，使得这位球员可以得到表现杰出且稳定的运动家称号后，然后再偷偷地把第五局的140杆球卡交出，结果只见到他随便应付几句抱歉的话语便间接承认先前计算成绩时候的罪行，而且他还会不断地拿着自己的成绩跟其它好手相比，(而这位杆弟，不用我们说，当然是深得其老板的心，不怕下次得不到主人的惠顾)。

Unfortunately, CE who use variations of these scoring schemes in real life tend to become addicted to the games they're playing -- after all, it's easier to fiddle with the scorecard than to spend hours on the practice tee -- and never muster the will to give them up. Their behavior brings to mind Voltaire's comment on sexual experimentation: "Once a philosopher, twice a pervert."

不幸的是，这些惯用作弊技俩的总裁在回到现实世界后，还是习惯玩这种把戏，毕竟与其花费时间在辛苦练习上，还不如轻轻松松在计分卡上动手脚，要说服他们放弃不玩可能比登天还难，他们这种行为不禁让我想到法国文豪伏尔泰Voltaire对于性实验的评论：「一回生，二回熟。」(编按伏尔泰头一次到妓院去体验那里的情境，事后有人问他感觉如何，他回答说，第一次去还算是哲学家，但要是再去的话，可能便会成为堕落者)。

In the acquisition arena, restructuring habeen raised to an art form: Managements now frequently use mergers to dishonestly rearrange the value of assets and liabilities in ways that will allow them to both smooth and swell future earnings. Indeed, at deal time, major auditing firms sometimes point out the possibilities for a little accounting magic (or for a lot). Getting this push from the pulpit, first-class people will frequently stoop to third-class tactics. CEOs understandably do not find it easy to reject auditor-blessed strategies that lead to increased future "earnings."

在购并的世界里，组织重整早已被提升至艺术的层次，经理人现在越来越习惯透过合并来操控公司资产与负债的价值，以使得公司未来的盈余能够平稳地虚增，事实上，在交易的时候，大型的会计师事务所偶尔也会建议公司来点小小会计戏法(当然有时也可能会搞的很大)，而在得到领路者的引诱，一流的人格往往会屈服于三流的伎俩，CEO实在是很难拒绝会计师所提出让公司未来盈余好看一点的美意。

An example from e property-casualty insurance industry will illuminate the possibilities. When a p-c company is acquired, the buyer sometimes simultaneously increases its loss reserves, often substantially. This boost may merely reflect the previous inadequacy of reserves -- though it is uncanny how often an actuarial "revelation" of this kind coincides with the inking of a deal. In any case, the move sets up the possibility of 'earnings" flowing into income at some later date, as reserves are released.

产物意外险业有一个很好的例子可以作为说明，当一家公司取得另一家产险公司时，买方通常会顺势大幅补提拨大量的损失准备，这项举动只会凸显以前损失准备提拨不足的问题，虽然你会发现这种精算调整的时机与整个交易签字的时点是如此令人惊异的吻合，更重要的是，这样的举动等于是为以后损失准备回冲，以增加公司未来获利数字所预埋的伏笔。

Berkshire has kept entirely clear of these practices: If we are tdisappoint you, we would rather it be with our earnings than with our accounting. In all of our acquisitions, we have left the loss reserve figures exactly as we found them. After all, we have consistently joined with insurance managers knowledgeable about their business and honest in their financial reporting. When deals occur in which liabilities are increased immediately and substantially, simple logic says that at least one of those virtues must have been lacking -- or, alternatively, that the acquirer is laying the groundwork for future infusions of "earnings."

不过Berkshire从来都不会干这类的勾当，如果我们真要让你们失望，那么决定会是真实的获利情况而不是会计手法，在我们所有的购并案当中，我们皆让损失准备的数字保持在当初我们发觉时的水准，因为一直以来与我们共事的保险事业经理人都很了解自己本业的状况，同时在财务报表的编制上也都坦诚布公，所以要是在这些购并案进行的同时，还发生负债大幅增加的状况的话，那么就代表这些美德其中之一出现了问题，或者说购并者为虚增未来盈余预留的后路。

Here's a true story that illustrates an all-too-common view in corporate America. The CEOs of two large banks, one of them a man who'd made many acquisitions, were involved not long ago in a friendly merger discussion (which in the end didn't produce a deal). The veteran acquirer was expounding on the merits of the possible combination, only to be skeptically interrupted by the other CEO: "But won't that mean a huge charge," he asked, "perhaps as much as $1 billion?" The "sophisticate" wasted no words: "We'll make it bigger than that -- that's why we're doing the deal."

这里有一件真实的故事充分说明美国企业普遍存在的一种观点，有两家大型银行的CEO，其中有一位主导了很多购并案，在不久前参与了一项友善购并的讨论(虽然后来并没有成功)，正当这位经验丰富的购并老手侃侃而谈合并后可能的种种好处时，突然被另一位CEO的问题给打断：「那不是要耗费相当高的成本吗? 我想可能不下十亿美元吧!」这位老练的银行家毫不迟疑的回答到：「这正是我们要搞这个案子的原因，而且我们可以把它搞的更大。」

A preliminary tally by R. G. Associates, of Baltimore, of special charges taken or announced during 1998 -- that is, charges for restructuring, in-process R&D, merger-related items, and write-downs -- identified no less than 1,369 of these, totaling $72.1 billion. That is a staggering amount as evidenced by this bit of perspective: The 1997 earnings of the 500 companies in Fortune's famous list totaled $324 billion.

根据巴尔的摩R.G.协会初步的统计，光是1998年宣布或认列的特别开支，也就是包含组织重整开支、R&D、购并费用以及相关科目打销等1,369种各项名义，加总的金额就超过721亿美元，相较之下1997年财星500大企业的总获利也不过是3,240亿美元而已。

Clearly the attitude of disrespect that many executives have today for accurate reporting is a business disgrace. And auditors, as we have already suggested, have done little on the positive side. Though auditors should regard the investing public as their client, they tend to kowtow instead to the managers who choose them and dole out their pay. ("Whose bread I eat, his song I sing.")

很显然的，现今许多经理人对于编制正确报表的藐视态度可说是商业界的一大耻辱，而另一方面如我们先前所提到的，会计师却未能够导正这样的偏差，尽管理论上会计师应该要把投资大众当作是他们的老板，但他们却宁可向那些有权决定会计师人选的经理人弯腰磕头以求分一杯羹，(唉! 正所谓拿人手短)。

A big piece of news, however, is that the SEC, led by its chairman Arthur Levitt, seems determined to get corporate America to clean up its act. In a landmark speech last September, Levitt called for an end to "earnings management." He correctly observed, "Too many corporate managers, auditors and analysts are participants in a game of nods and winks." And then he laid on a real indictment: "Managing may be giving way to manipulating; integrity may be losing out to illusion."

不过告诉各位一个大消息，在现任主席Arthur Levitt的带领下，主管机关证管会似乎有意要好好地整顿美国企业的种种不当行为，在去年九月的一次历史性演说中，Levitt呼吁大家停止"盈余管理"，他一针见血地指出太多的企业经理人、会计师与分析师参与这种大家心知肚明的戏局，接着他又开门见山地提出一项指控，当经理人得到太多的机会来操纵盈余的同时，其人格也随着消失殆尽化成幻影。

I urge you to read the Chairman's speech (you can fd it on the Internet at www.sec.gov) and to support him in his efforts to get corporate America to deliver a straight story to its owners. Levitt's job will be Herculean, but it is hard to think of another more important for him to take on.

我强烈建议大家读一读Levitt主席的演说内容(你可以在证管会的官方网站www.sec.gov上找到)，同时共同声援他致力于导正美国企业向股东们提供真实财务报告所作的努力，Levitt这项工作或许相当艰巨，但也很难再找到其它任何比这个更重要的任务了。

Reports to Shareholders给股东的报告

Berkshire's Internet site, www.berkshirehathaway.com, has become a prime source for information about the company. While we continue to send an annual report to all shareholders, we now send quarterlies only to those who request them, letting others read these at our site. In this report, we again enclose a card that can be returned by those wanting to get printed quarterlies in 1999.

Berkshire的官方网站www.berkshirehathaway.com成为取得本公司信息的最重要来源，除非事先要求，否则我们每季的季报都只透过网站对外公布，当然我们还是一如往来将每年的年报邮寄给股东们，里头也包含了申请寄发1999年季报的申请表格。

Charlie and I have two simple goals in reporting: 1) We want to give you the information that we would wish you to give us if our positions were reversed; and 2) We want to make Berkshire's information accessible to all of you simultaneously. Our ability to reach that second goal is greatly helped by the Internet.

在编写报告时，查理跟我禀持两个简单的原则：1)我们希望能够提供各位所有换个立场我们希望各位能够提供给我们的所有信息；2)我们希望这些信息能够在同一个时间到达所有人的手上，而透过网络使得我们第二个目标得以更容易地达成。

In another portion of his September speech, Arthur Levitt deplored what he called "selective disclosure." His remarks were timely: Today, many companies matter-of-factly favor Wall Street analysts and institutional investors in a variety of ways that often skirt or cross the line of unfairness. These practices leave the great bulk of shareholders at a distinct disadvantage to a favored class.

在演说的另一段内容中，Levitt主席对于他称之为"选择性揭露"的行为感到遗憾，他的这项评论正中时弊，如今许多公司明显偏袒华尔街的分析师与机构投资人，其种种行径早已逾越公平合理的界限，这种行为让其它广大的股东与投资大众处于不利前者的劣势地位。

At Berkshire, we regard the holder of one share of B stock as the equal of our large institutional investors. We, of course, warmly welcome institutions as owners and have gained a number of them through the General Re merger. We hope also that these new holders find that our owner's manual and annual reports offer them more insights and information about Berkshire than they garner about other companies from the investor relations departments that these corporations typically maintain. But if it is "earnings guidance" or the like that shareholders or analysts seek, we will simply guide them to our public documents.

在Berkshire即使是持有一股B股的小股东其所得到的待遇，也与其它大型投资机构投资人并无二致，当然我们也很欢迎大型的投资机构法人成为我们的股东，事实上经由通用再保的购并，确实也带进许多投资机构法人，同时我们也希望这些新加入的股东能够发现由我们所提供的股东手册与公司年报，较之其它公司一般公关部门所提供的讯息更为有用，给他们更多的启发，不过要是股东或分析师想要的是公司的盈余预估，那么我们就只能请他们直接参考我们已对外公布的公开文件。

This year we plan to post our quarterly reports on the Internet after the close of the market on May 14, August 13, and November 12. We also expect to put the 1999 annual report on our website on Saturday, March 11, 2000, and to mail the print version at roughly the same time.

今年我们预计分别在5/14、8/13及11/12将季报公布在公司的网站上，另外也预计在2000年3月11日星期六将年报公布在网站上，并在同一时间将年报邮寄出去给所有的股东。

We promptly post press releases on our website. This means that you do not need to rely on the versions of these reported by the media but can instead read the full text on your computer.

同时我们也会立即将相关的新闻公布在我们的网站上，也就是说你不需要依赖经过报章媒体消化过的二手消息，而可以轻轻松松在家透过计算机直接读到最原始的内容。

Despite the pathetic technical skills of your Chairman, I'm delighted to report that GEICO, Borsheim's, See's, and The Buffalo News are now doing substantial business via the Internet. We've also recently begun to offer annuity products on our website. This business was developed by Ajit Jain, who over the last decade has personally accounted for a significant portion of Berkshire's operating earnings. While Charlie and I sleep, Ajit keeps thinking of new ways to add value to Berkshire.

虽然本人的计算机技能相当的低落，但是我还是很高兴地向各位报告，我们旗下的事业，包含GEICO、波仙珠宝、喜斯糖果以及水牛城新闻在内现在皆已透过网路从事大量的商务活动，同时我们也开始在网站上贩卖相关的年金产品，这项业务主要是由Ajit Jain所负责开发，他个人在过去十年来为Berkshire贡献了大量的盈余，每当查理跟我休息时，Ajit还是无时无刻不在为Berkshire想出增进价值的方法。

Shareholder-Designated Contributions股东指定捐赠计划

About 97.5% of all eligible shares participated in Berkshire'1998 shareholder-designated contributions program, with contributions totaling $16.9 million. A full description of the program appears on pages 54-55.

大约有97.5%的有效股权参与1998年的股东指定捐赠计划，捐出的款项总计约1,690万美元，详细的名单参阅附录。

Cumulatively, over the 18 years of the program, Berkshire has made contributions of $130 million pursuant to the instructions of our shareholders. The rest of Berkshire's giving is done by our subsidiaries, which stick to the philanthropic patterns that prevailed before they were acquired (except that their former owners themselves take on the responsibility for their personal charities). In aggregate, our subsidiaries made contributions of $12.5 million in 1998, including in-kind donations of $2.0 million.

累计过去18年以来，Berkshire总计已依照股东意愿捐赠出高达1.3亿美元的款项，除了之外，Berkshire还透过旗下的子公司进行捐赠，而这些慈善活动都是早在他们被我们购并以前就行之有年的(先前的老板自行本身负责的个人捐赠计画之外除外)，总的来说，我们旗下的关系企业在1998年总计捐出1,250万美元，其中包含200万美元等值的物品。

To participate in future programs, you must own Class A share
that are registered in the name of the actual owner, not the nominee
name of a broker, bank or depository. Shares not so registered on
August 31, 1999, will be ineligible for the 1999 program. When you get
the contributions form from us, return it promptly so that it does not
get put aside or forgotten. Designations received after the due date will
not be honored.

想要参加这项计画者，必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在1999年8月31日之前完成登记，才有权利参与1999年的捐赠计画，当你收到表格后，请立即填写后寄回，以免被丢在一旁给忘记了，逾期恕不受理。

The Annual Meeting年度股东大会

This year's Woodstock for Capitalists will be held May 1-3, and we may face a problem. Last year more than 10,000 people attended our annual meeting, and our shareholders list has since doubled. So we don't quite know what attendance to expect this year. To be safe, we have booked both Aksarben Coliseum, which holds about 14,000 and the Holiday Convention Centre, which can seat an additional 5,000. Because we know that our Omaha shareholders will want to be good hosts to the out-of-towners (many of them come from outside the U.S), we plan to give those visitors first crack at the Aksarben tickets and to subsequently allocate these to greater Omaha residents on a first-come, first-served basis. If we exhaust the Aksarben tickets, we will begin distributing Holiday tickets to Omaha shareholders.

今年Berkshire的伍斯达克将在五月1号到3号举行，只是我们面临到一个问题，去年总计有超过一万名的股东来参加我们的年度股东会，而如今我们股东的人数又增加了一倍，这使得我们很难预估今年到底会有多少股东与会，为了安全起见，我们特别订下可容纳14,000名观众的阿肯萨本体育馆，另外外加5,000个座位的Holiday会议中心，而奥玛哈地区的股东们为了尽地主之谊，也特地将场地的前排座位让给外城市来的股东(很多都来自海外)，至于大奥玛哈地区的股东则采取先到先选的方式入座，如果阿肯萨本体育馆的门票发光了，就会开始发放Holiday会议中心的门票给奥玛哈地区的股东。

If we end up using both locations, Charlie and I will split our pre-meeting time between the two. Additionally, we will have exhibits and also the Berkshire movie, large television screens and microphones at both sites. When we break for lunch, many attendees will leave Aksarben, which means that those at Holiday can, if they wish, make the five-minute trip to Aksarben and finish out the day there. Buses will be available to transport people who don't have cars.

而万一要是两个场地还不够，查理跟我就会将正式会议前的时间分成两部份，此外，在两个会场我们都准备了展示品、Berkshire特别制作的影片、大型的电视屏幕以及麦克风，等到中午休息时间，许多与会者陆续离开阿肯萨本体育馆后，此时坐在Holiday会议中心的股东就可以利用简短的五分钟时间参观一下会场，然后一直待到会议结束，会后我们也备有巴士接送没有开车的股东。

The doors will open at both locations at 7 a.m. on Monday, and at 8:30 we will premier the 1999 Berkshire movie epic, produced by Marc Hamburg, our CFO. The meeting will last from 9:30 until 3:30, interrupted only by the short lunch break.

大门会在星期一早上七点开放，同时照例在八点半会播放由我们财务长Marc Hamburg精心制作具顶级水准的Berkshire 1999年电影短片供大家欣赏，扣除中午短暂的休息时间，整个会议将一直进行到下午三点半。

An attachment to the proxy material that is enclosed with this report explains how you can obtain the badge you will need for admission to the meeting and other events. As for plane, hotel and car reservations, we have again signed up American Express (800-799-6634) to give you special help. In our normal fashion, we will run buses from the larger hotels to the meeting. After the meeting, these will make trips back to the hotels and to Nebraska Furniture Mart, Borsheim's and the airport. Even so, you are likely to find a car useful.

后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，美国运通 (电话800-799-6634)将会很高兴为您提供相关安排服务，如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，当然你可能会觉得如何有一辆车就更方便了。

The full line of Berkshire products will be available atksarben, and the more popular items will also be at Holiday. Last year we set sales records across-the-board, moving 3,700 pounds of See's candy, 1,635 pairs of Dexter shoes, 1,150 sets of Quikut knives and 3,104 Berkshire shirts and hats. Additionally, $26,944 of World Book products were purchased as well as more than 2,000 golf balls with the Berkshire Hathaway logo. Charlie and I are pleased but not satisfied with these numbers and confidently predict new records in all categories this year. Our 1999 apparel line will be unveiled at the meeting, so please defer your designer purchases until you view our collection.

在阿肯萨本体育馆的会场我们也将备有Berkshire全系列的产品供大家选购，另外我们也会把其中最热门的商品陈列在Holiday会议中心，去年我们再度打破记录，大家总共搬走了3,700磅的糖果、1,635双的鞋子、1,150组Quikut小刀以及3,140件Berkshire的衣服与帽子，另外也卖出26,944美元的世界百科全书与相关出版品以及2,000颗上面印有Berkshire Logo的高尔夫球，老实说，查理跟我对于这样的成绩并不太满意，不过我们相当有信心今年一定能够再度刷新所有品项的记录，而我们1999年全新的服装也将在会议期间公布，所以请大家在看过我们的样式之前，暂且将今年的治装费保留住。

Dairy Queen will also be on hand and will again donate all proceeds to the Children's Miracle Network. Last year we sold about 4,000 Dilly? bars, fudge bars and vanilla/orange bars. Additionally, GEICO will have a booth that will be manned by a number of our top counselors from around the country, all of them ready to supply you with auto insurance quotes. In almost all cases, GEICO will be able to offer you a special shareholder's discount. Check out whether we can save you some money.

乳品皇后也将再度在现场摆设摊位，同时将所得全数捐给儿童希望联盟，去年我们总共卖出4,000根Dilly、雪花棒以及香草/橘子口味的巧克力棒，此外GEICO公司会再度派出各地区最优秀的业务员，在会场设立摊位，随时提供股东们汽车保单的报价，在大多数的情况下，GEICO都可以提供给你一个相当优惠的股东折扣，各位记得问看看是否能帮自己省下一笔钱。

Thpiece de resistance of our one-company trade show will be a 79-foot-long, nearly 12-foot-wide, fully-outfitted cabin of a 737 Boeing Business Jet ("BBJ"), which is NetJets' newest product. This plane has a 14-hour range; is designed to carry 19 passengers; and offers a bedroom, an office, and two showers. Deliveries to fractional owners will begin in the first quarter of 2000.

这次的会议还有另一位主秀，那就是79英尺长、12英尺宽、全配备的波音737商务机展示座舱(简称BBJ)，这是Netjet最新推出的产品，这架飞机飞行时数长达14个小时，可搭载19位乘客，并附有一个卧室、一间办公室以及两套淋浴设备，预计在2000年春季加入服务客户的行列。

The BBJ will be available for your inspection on May 1-3 near the entrance to the Aksarben hall. You should be able to minimize your wait by making your visit on Saturday or Sunday. Bring along your checkbook in case you decide to make an impulse purchase.

BBJ在五月1日到3日期间，将会陈列在阿肯萨本体育馆的大厅入口处，不想排队的人最好提早在星期六或星期日去参观，记得随身携带你的支票本，以备一时心动的不时之需。

NFM's mti-stored complex, located on a 75-acre site about a mile from Aksarben, is open from 10 a.m. to 9 p.m. on weekdays, and 10 a.m. to 6 p.m. on Saturdays and Sundays. This operation did $300 million in business during 1998 and offers an unrivaled breadth of merchandise -- furniture, electronics, appliances, carpets and computers -- all at can't-be-beat prices. During the April 30th to May 4th period, shareholders presenting their meeting badge will receive a discount that is customarily given only to its employees.

占地75英亩的NFM多层复合式建筑距离阿肯萨本体育馆约1英哩远，营业时间平日从早上10点到下午9点，星期六及星期日则从早上10点到下午6点， NFM 1998年单店的营业额高达三亿美元，提供各式各样的产品，举凡家具、电子产品、小家电、地毯以及计算机，全部都以超低的价格供大家选购，在四月30日到五月4日期间，股东只要持随股东开会通知单附赠的优惠券到NFM购买各类商品，都可获得员工价的优惠。

Borsheim's normally is closedn Sunday but will be open for shareholders from 10 a.m. to 6 p.m. on May 2nd. On annual meeting weekend last year, the store did an incredible amount of business. Sales were double those of the previous year, and the store's volume on Sunday greatly exceeded volume for any day in Borsheim's history. Charlie attributes this record to the fact that he autographed sales tickets that day and, while I have my doubts about this proposition, we are not about to mess with a winning formula. Please give him writer's cramp. On last year's Sunday, Borsheim's wrote 2,501 tickets during the eight hours it was open. For those of you who are mathematically challenged, that is one ticket every 11 seconds.

平时礼拜天不营业的波仙珠宝，特地在五月二日股东会当天会为股东与来宾开放，从中午开到下午6点，去年在股东会的那一个周末，我们缔造了历史最佳的记录，业绩比前一个年度成长一倍，星期天的单日销售额打破历史记录，查理臭屁的认为这完全要归功于当天他在现场接受大家用发票索取签名的缘故，当然我对于这样的推论持保留态度，我不认为这是成功方程式中的重要因子，在去年星期天短短8个小时的营业时间内，波仙总共开出了2,501张的发票，数学好的人可以掐指一算，这约等于每11秒钟开出一张发票，不过请大家千万不要对查理客气，务必让他签名签到手抽筋。

Shareholders who wish to avoid Sday's crowd can visit Borsheim's on Saturday (10 a.m.-5:30 p.m.) or on Monday (10 a.m.-8 p.m.). Be sure to identify yourself as a Berkshire owner so that Susan Jacques, Borsheim's CEO, can quote you a "shareholder-weekend" price. Susan joined us in 1983 as a $4-per-hour salesperson and was made CEO in 1994. This move ranks as one of my best managerial decisions.

怕挤的股东可以选择在星期六(早上10点到下午5点半)或星期一(早上10点到下午8点)光临波仙珠宝，记得向波仙的总裁-Susan Jacques 表明你Berkshire股东的身分，如此她才能够给各位股东周末的优惠价，Susan在1983年从每小时时薪4美元的业务员做起，并在1994年成为公司的总裁，这项人事调整事后证明是我一生中最佳的管理决策之一。

Bridge players can look forward to a thrill on Sunday, when Bob Hamman -- the best the game has ever seen -- will turn up to play with our shareholders in the mall outside of Borsheim's. Bob plays without sorting his cards -- hey, maybe that's what's wrong with my game. We will also have a couple of other tables at which another expert or two will be playing.

桥牌爱好者请屏息以待，桥牌界的传奇性人物Bob Hamman将会在星期天下午出席在波仙珠宝店外面大厅举办的一场桥牌大赛，Bob打牌从来不用整理排堆，嘿嘿!或许这就是我为什么一直打不好的原因，当然现场还会有其它高手出现与大家一起打牌。

Gorat's -- my favorite steakhouse -- will again be open especially for Berkshire shareholders on the Sunday night before the meeting. Though Gorat's served from 4 p.m. until about 1 a.m. last year, its crew was swamped, and some of our shareholders had an uncomfortable wait. This year fewer reservations will be accepted, and we ask that you don't come on Sunday without a reservation. In other years, many of our shareholders have chosen to visit Gorat's on Friday, Saturday or Monday. You can make reservations beginning on April 1 (but not before) by calling 402-551-3733. The cognoscenti will continue to order rare T-bones with double orders of hash browns.

我个人最爱的牛排馆-Gorat's为了Berkshire股东年会破例在星期天开门营业，虽然去年Gorat's牛排馆从下午四点开始营业，一直到半夜一点半，但是餐厅还是被拥挤的人群给挤爆了，以致于让许多股东等候多时，今年我们将减少订位人数，事先没有订位的人请勿前往以免向隅，当然股东也可选择在星期五、星期六或星期一前往，该餐厅从四月一号后才开始接受预订(电话402-551-3733)，识途的老马都知道要点丁骨牛排加上双份的牛肉丸。

The Omaha Golden Spikes (nee the Omaha Royals) will meet the Iowa Cubs on Saturday evening, May 1st, at Rosenblatt Stadium. Your Chairman, whose breaking ball had the crowd buzzing last year, will again take the mound. This year I plan to introduce my "flutterball." It's a real source of irritation to me that many view our annual meeting as a financial event rather than the sports classic I consider it to be. Once the world sees my flutterball, that misperception will be erased.

奥玛哈金钉鞋队(原奥玛哈皇家队)将于五月一日星期六晚上在Rosenblatt体育馆对上爱荷华州的小熊队，去年本人技惊四座的变化球，将会再度出现在投手丘上，不过今年我还预计祭出新练的上飘球，对于许多人将Berkshire股东会视为投资金融界而非体育界的盛事，我感到相当的气愤，相信等到世人看过我的上飘球后，应该就能导正大家这种错误的观念。

Our proxy statement includes instructions about obtaining tickets to the game and also a large quantity of other information that should help you to enjoy your visit. I particularly urge the 60,000 shareholders that we gained through the Gen Re merger to join us. Come and meet your fellow capitalists.

股东会资料将告诉大家如何取得球赛入场的门票，以及有关本次会议期间大量的旅游信息，在此我也特别呼吁经由购并通用再保而新加入的60,000名股东，一定要来见见其它资本主义的伙伴。

It wouldn't be right to close without a word about the 11.8 people who work with me in Berkshire's corporate office. In addition to handling the myriad of tax, regulatory and administrative matters that come with owning dozens of businesses, this group efficiently and cheerfully manages various special projects, some of which generate hundreds of inquiries. Here's a sample of what went on in 1998:

在年报结束前，我一定要再感谢一下在Berkshire企业总部与我一起共事的11.8位工作伙伴，除了平时要处理因为拥有数十家营利事业所衍生复杂难解的租税、法令与行政事务之外，这个团队同时还非常有效率且热心地管理许多特别的专案，包含了上千次的不厌其烦的回答，以下就是他们在1998年所做的一些工作。

?6,106 shareholders designated 3,880 charities to receive contributions.

?6,106位股东指定捐赠给3,880个慈善机关团体

?Kelly Muchemore processed about 17,500 admission tickets for the annual meeting, along with orders and checks for 3,200 baseball tickets.

?Kelly Muchemore处理超过17,500件股东会出席证，外加3,200件棒球赛的订单与支票

?Kelly and Marc Hamburg produced and directed the Aksarben extravaganza, a job that required them to arrange the presentations made by our subsidiaries, prepare our movie, and sometimes lend people a hand with travel and lodging.

?Kelly与Marc Hamburg负责制作、导演整个阿肯萨本秀，包含安排各个子公司所做的演示文稿、准备短片，有时还要协助来宾解决交通与食宿的问题

?Debbie Bosanek satisfied the varying needs of the 46 media organizations (13 of them non-U.S.) that covered the meeting, and meanwhile, as always, skillfully assisted me in every aspect of my job.

?Debbie Bosanek满足了46家采访媒体机构各种不同的需求(其中还包含13家外国媒体)，同时一如往常地协助我处理所有日常事务

?Debbie and Marc assembled the data for our annual report and oversaw the production and distribution of 165,000 copies. (This year the number will be 325,000.)

?Debbie及Marc负责整理股东会的报告并负责165,000份年报的制作与发送(今年的份数将增加至325,000份)

?Marc handled 95% of the details -- and much of the substance -- connected with our completing two major mergers.

?Marc负责处理95%以上的细节，同时更重要的是完成两件重大购并案的后续处理工作

?Kelly, Debbie and Deb Ray dealt efficiently with tens of thousands of requests for annual reports and financial information that came through the office.

?Kelly、Debbie以及Deb Ray非常快速地处理成千上万要求寄发年报及相关财务信息的回函

You and I are paying for only 11.8 people, but we are gettinwhat would at most places be the output of 100. To all of the 11.8, my thanks.

虽然我们只支付11.8人份的薪水，但我们所得到的成果却相当于100位人力的付出，对于这支11.8个人的团队，我衷心地致上个人的感谢之意。

一九九九

Our gain in net worth during 1999 was $358 million, which increased the per-share book value of both our Class A and Class B stock by 0.5%.Over the last 35 years (that is, since present management took over) per-share book value has grown from $19 to $37,987, a rate of 24.0% compounded annually.*

本公司1999年的净值增加了3.58亿美元，每股A股或B股的帐面净值皆成长了0.5%，累计过去35年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的37,987美元，年复合成长率约为24.0%*。

*All figures used in this report apply to Berkshire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30th that of the A.

*1在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股则拥有A级普通股三十分之一的权利。

The numbers on the facing page show just how poor our 1999 record was. We had the worst absolute performance of my tenure and, compared to the S&P, the worst relative performance as well. Relative results are what concern us: Over time, bad relative numbers will produce unsatisfactory absolute results.

首页上的数字完全显示出我们1999年的成绩是如何的不理想，这也是个人历年来表现最差的一年，不管从绝对数字或是与S&P 指数比较皆是如此，当然相对数字是我们比较在意的，只不过时间一久，相对较差的数字其绝对数值肯定也不会理想到哪里去。

Even Inspector Clouseau could find last year's guilty party: your Chairman. My performance reminds me of the quarterback whose report card showed four Fs and a D but who nonetheless had an understanding coach. "Son," he drawled, "I think you're spending too much time on that one subject."

即使是顽皮豹探长也知道谁是去年真正的犯人︰没错! 就是我本人，而我个人的表现让我想起一位成绩单上满是F跟一个D的四分卫，偏偏又遇到一个体谅人的教练轻声说到：「孩子，我想你把太多的时间摆在单一的科目之上了。」

My "one subject" is capital allocation, and my grade for 1999 most assuredly is a D. What most hurt us during the year was the inferior performance of Berkshire's equity portfolio -- and responsibility for that portfolio, leaving aside the small piece of it run by Lou Simpson of GEICO, is entirely mine. Several of our largest investees badly lagged the market in 1999 because they've had disappointing operating results. We still like these businesses and are content to have major investments in them. But their stumbles damaged our performance last year, and it's no sure thing that they will quickly regain their stride.

我所指的单一科目就是"资金的分配"，而很显然的我在1999年所获得的成绩就只有D，除此之外表现最惨的要算是Berkshire的股票投资组合了，至于该为这件事负责的，除了少部份的投资是由GEICO公司的Lou Simpson管理外，其余全部都要归咎于我本人，我们几件大型的投资标的，由于本身1999年的经营情况不佳，导致公司股价表现远落后于大盘，不过我们仍然对它们所处的产业情有独钟，同时也愿意继续与它们同在，只是它们的挫败严重影响到我们去年的表现，而且也不确定何时才能够回归正轨。

The fallout from our weak results in 1999 was a more-than-commensurate drop in our stock price. In 1998, to go back a bit, the stock outperformed the business. Last year the business did much better than the stock, a divergence that has continued to the date of this letter. Over time, of course, the performance of the stock must roughly match the performance of the business.

Berkshire 1999年积弱不振的表现，更导致公司的股价大幅下滑，相较之下， 1998年的股价反而表现的比本业还好，去年可说是刚好相反，直到年报发布之日止仍是如此，当然就长期而言，公司股价的表现大致上还是会与本业的表现相当。

Despite our poor showing last year, Charlie Munger, Berkshire's Vice Chairman and my partner, and I expect that the gain in Berkshire's intrinsic value over the next decade will modestly exceed the gain from owning the S&P. We can't guarantee that, of course. But we are willing to back our conviction with our own money. To repeat a fact you've heard before, well over 99% of my net worth resides in Berkshire. Neither my wife nor I have ever sold a share of Berkshire and -- unless our checks stop clearing -- we have no intention of doing so.

尽管去年表现不佳，不过Berkshire 主要的合伙人-查理孟格，跟我本人仍然预期Berkshire未来十年实质价值的成长率应该可以略微超越S&P 指数同期的表现，当然这种事没人敢打包票，不过我们依旧愿意以我们所有的身家作为担保，大家应该都知道，我个人的身家有99%以上都摆在Berkshire，我跟我内人从来就没有卖过一张Berkshire的股票，而且除非哪一天真的不够钱花，否则我们永远不会考虑出售任何一张股票。

Please note that I spoke of hoping to beat the S&P "modestly." For Berkshire, truly large superiorities over that index are a thing of the past. They existed then because we could buy both businesses and stocks at far more attractive prices than we can now, and also because we then had a much smaller capital base, a situation that allowed us to consider a much wider range of investment opportunities than are available to us today.

请注意我说的是"略微"超越S&P，因为对Berkshire来说，大幅超越S&P指数的情况已经成为历史，当初能够有这样的成绩，主要是因为那时不管企业或是股票的价格都相当低廉，而我们的资本规模相对也较小，那使得我们比现在有更多的投资机会可供选择。

Our optimism about Berkshire's performance is also tempered by the expectation -- indeed, in our minds, the virtual certainty -- that the S&P will do far less well in the next decade or two than it has done since 1982. A recent article in Fortune expressed my views as to why this is inevitable, and I'm enclosing a copy with this report.

此外我之所以对Berkshire未来的表现如此有信心的原因在于，我认为S&P在未来一、二十年的表现将远远不如过去十几年的表现，在最近的财星杂志我发表了一篇文章解释这种无可避免的缘由，在年报后面我也附了一份供大家参考。

Our goal is to run our present businesses well -- a task made easy because of the outstanding managers we have in place -- and to acquire additional businesses having economic characteristics and managers comparable to those we already own. We made important progress in this respect during 1999 by acquiring Jordan's Furniture and contracting to buy a major portion of MidAmerican Energy. We will talk more about these companies later in the report but let me emphasize one point here: We bought both for cash, issuing no Berkshire shares. Deals of that kind aren't always possible, but that is the method of acquisition that Charlie and I vastly prefer.
我们的目标是把现有的事业给经营好-这点对于现有优秀的经营阶层来说是件很简单的事，同时再设法取得具有相同竞争优势与优秀经理人的新事业，去年我们在这方面大有进展，不但买下了Jordan家具，同时还签约买下了MidAmerican能源大部分的股权，在报告的后段我还会详加介绍这两家公司，不过有一点我要强调的是，这两项购并案Berkshire全部皆以现金进行交易，没有发行任何新股，虽然这样的交易方式可遇不可求，但却也是查理跟我比较偏好的。

Guides to Intrinsic Value实质价值简介

I often talk in these pages about intrinsic value, a key, though far from precise, measurement we utilize in our acquisitions of businesses and common stocks. (For an extensive discussion of this, and other investment and accounting terms and concepts, please refer to our Owner's Manual on pages 55 - 62. Intrinsic value is discussed on page 60.)

在接下来的这一段，我要谈谈常常提到实质价值的观念，这是一个我们在进行企业购并与股票投资时，很重要但却很难明确界定的标准，(有关这个议题的广泛讨论，也包含其它投资与会计名词观念，请参阅股东手册)。

In our last four reports, we have furnished you a table that we regard as useful in estimating Berkshire's intrinsic value. In the updated version of that table, which follows, we trace two key components of value. The first column lists our per-share ownership of investments (including cash and equivalents but excluding assets held in our financial products operation) and the second column shows our per-share earnings from Berkshire's operating businesses before taxes and purchase-accounting adjustments (discussed on page 61), but after all interest and corporate expenses. The second column excludes all dividends, interest and capital gains that we realized from the investments presented in the first column. In effect, the columns show how Berkshire would look if it were split into two parts, with one entity holding our investments and the other operating all of our businesses and bearing all corporate costs.

在最近四年的年报中，我们提供了我们认为可以最能够估计Berkshire实质价值的一张表，在今年刚刚更新资料的表中，我们以拟制的方式将通用再保的数字加入其中，也就是假设该公司自年度一开始就为我们所拥有，第一栏的数字代表我们拥有每股的投资金额(包括现金与约当现金，但扣除财务金融单位持有的证券)，第二栏则是每股在扣除利息与营业费用之后，Berkshire来自本业的营业利益(但未扣除所得税与购买法会计调整数)，当然后者已经扣除了所有来自第一栏投资所贡献的股利收入、利息收入与资本利得，事实上，从这张表可以看出若是把Berkshire分拆成两部份的话会变成怎样，其结果就等于是一家持有我们投资部位的控股公司，以及另一家经营旗下所有事业负担全部成本盈亏的营利事业。

　
 
　
 
Pre-tax Earnings (Loss) Per Share
 

　Year
 
Investments Per Share
 
With All Income from Investments Excluded
 

1969
 
　$ 45
 
$ 4.39
 

1979
 
577
 
13.07
 

1989
 
7,200
 
108.86
 

1999
 
47,339
 
(458.55)
 

Here are the growth rates of the two segments by decade:下表是这两个部份每十年的成长率：

　
 
　
 
　
 
Pre-tax Earnings Per Share
 

　Decade Ending
 
　
 
Investments Per Share
 
With All Income from Investments Excluded
 

1979
 
 
 
29.0%
 
11.5%
 

1989
 
 
 
28.7%
 
23.6%
 

1999
 
 
 
20.7%
 
N.A.
 

Annual Growth Rate, 1969-1999
 
25.4%
 
N.A.
 

In 1999, our per-share investments changed very little, but our operating earnings, affected by negatives that overwhelmed some strong positives, fell apart. Most of our operating managers deserve a grade of A for delivering fine results and for having widened the difference between the intrinsic value of their businesses and the value at which these are carried on our balance sheet. But, offsetting this, we had a huge -- and, I believe, aberrational -- underwriting loss at General Re. Additionally, GEICO's underwriting profit fell, as we had predicted it would. GEICO's overall performance, though, was terrific, outstripping my ambitious goals.

1999年，我们每股投资金额变化不大，但是每股营业利益却因为几个重大的负面因素而大幅滑落，我们大部分的经理人都得到A级以上的评价，大幅增加各自事业的实质价值与显示在资产负债表上的帐面价值，只不过可惜的是这一切的努力通通都被通用再保异常的承保损失给抵消掉了，此外GEICO的承保利益也一如预期地下滑，虽然其整体表现仍然远远超越当初我订下的严格目标。

We do not expect our underwriting earnings to improve in any dramatic way this year. Though GEICO's intrinsic value should grow by a highly satisfying amount, its underwriting performance is almost certain to weaken. That's because auto insurers, as a group, will do worse in 2000, and because we will materially increase our marketing expenditures. At General Re, we are raising rates and, if there is no mega-catastrophe in 2000, the company's underwriting loss should fall considerably. It takes some time, however, for the full effect of rate increases to kick in, and General Re is therefore likely to have another unsatisfactory underwriting year.
展望今年我们并不预期承保获利能够大幅改进，虽然GEICO的实质价值应该还是能够以一个令人满意的幅度增加，但其承保成绩却一定会滑落，原因在于车险业者在2000年整体的表现肯定不佳，也因为我们将投入大笔的行销经费，至于通用再保，我们已开始调高保费，只要2000年不要再发生重大的意外灾害的话，该公司的承保损失应该会大幅减少，不过保费调整的效果要完全显现，可能需要一段时间，所以可以预期的是通用再保明年的承保成绩肯定也不会好到哪里去。

You should be aware that one item regularly working to widen the amount by which intrinsic value exceeds book value is the annual charge against income we take for amortization of goodwill -- an amount now running about $500 million. This charge reduces the amount of goodwill we show as an asset and likewise the amount that is included in our book value. This is an accounting matter having nothing to do with true economic goodwill, which increases in most years. But even if economic goodwill were to remain constant, the annual amortization charge would persistently widen the gap between intrinsic value and book value.

财报中有一个叫做商誉摊销的费用项目是大家要特别注意的，Berkshire每年固定提列的金额大约在五亿美元左右，这个动作使得资产负债表上商誉的会计数字逐年递减，但却与实质经济稳定成长的现况背道而驰，而就算是实质的经济商誉价值维持不变，每年固定提列的商誉摊销费用也会使得帐上的商誉与实际上的商誉价值间的差距日益扩大。

Though we can't give you a precise figure for Berkshire's intrinsic value, or even an approximation, Charlie and I can assure you that it far exceeds our $57.8 billion book value. Businesses such as See's and Buffalo News are now worth fifteen to twenty times the value at which they are carried on our books. Our goal is to continually widen this spread at all subsidiaries.
虽然我们无法给各位一个Berkshire实际价值的确切数字，这实在是很难去估算，不过查理跟我可以向各位保证，实际的数字绝对远超过578亿美元的帐面价值，许多事业包含水牛城新闻报与喜斯糖果在内的实际价值大概是帐面价值的十五到二十倍之间，不过我们的目标是继续让子公司扩大这样的差距。

A Managerial Story You Will Never Read Elsewhere别处读不到的经营故事

Berkshire's collection of managers is unusual in several important ways. As one example, a very high percentage of these men and women are independently wealthy, having made fortunes in the businesses that they run. They work neither because they need the money nor because they are contractually obligated to -- we have no contracts at Berkshire. Rather, they work long and hard because they love their businesses. And I use the word "their" advisedly, since these managers are truly in charge -- there are no show-and-tell presentations in Omaha, no budgets to be approved by headquarters, no dictums issued about capital expenditures. We simply ask our managers to run their companies as if these are the sole asset of their families and will remain so for the next century.

Berkshire的经营团队在许多方面都与众不同，举个例子来说，这些先生女士大部分都已经相当有钱，靠着自己经营的事业致富，他们之所以愿意继续留在工作岗位上，并不是因为缺钱或是有任何合约上的限制，事实上Berkshire并没有跟他们签订任何契约，他们之所以辛勤工作，完全是因为他们热爱自己的事业，而我之所以用"他们"这个字眼，是因为他们对这些事业完全负全责，不需要到奥玛哈做演示文稿，也不需要编预算送交总部核准，对于任何开支也没有繁复的规定，我们只是简单地要他们就像是经营自己祖传百年的事业一样来对待即可。

Charlie and I try to behave with our managers just as we attempt to behave with Berkshire's shareholders, treating both groups as we would wish to be treated if our positions were reversed. Though "working" means nothing to me financially, I love doing it at Berkshire for some simple reasons: It gives me a sense of achievement, a freedom to act as I see fit and an opportunity to interact daily with people I like and trust. Why should our managers -- accomplished artists at what they do -- see things differently?

查理跟我与这些经理人保持互动的模式，与我们和Berkshire所有股东保持的互动模式一致，那就是试着尽量站在对方的立场为大家设想，虽然我本人早就可以不必为了经济因素而工作，不过我还是很喜欢现在在Berkshire所做的这些事，原因很简单，因为这让我很有成就感、可以自由的去做我认为应该做的事，同时让我每天都有机会与欣赏及信赖的人一起共事，所以为什么我们旗下的经理人-
在各自产业卓然有成的大师，一定要有不同的想法呢?

In their relations with Berkshire, our managers often appear to be hewing to President Kennedy's charge, "Ask not what your country can do for you; ask what you can do for your country." Here's a remarkable story from last year: It's about R. C. Willey, Utah's dominant home furnishing business, which Berkshire purchased from Bill Child and his family in 1995. Bill and most of his managers are Mormons, and for this reason R. C. Willey's stores have never operated on Sunday. This is a difficult way to do business: Sunday is the favorite shopping day for many customers. Bill, nonetheless, stuck to his principles -- and while doing so built his business from $250,000 of annual sales in 1954, when he took over, to $342 million in 1999.

在与Berkshire母公司的关系上，我们的经理人通常恪守甘乃迪总统曾说过的名言，"不要问国家为你做了什么，问问你为国家做了什么?" 以下就是去年一个最明显的例子，这是有关R.C.Willey-犹它州家具业的霸主，Berkshire是在1995年从Bill Child家族买下这家公司的，Bill跟他大部分的经营团队都是摩门教徒，也因此他们的店星期天从来不开张，这样的惯例实在是不适合用在做生意上，因为对大部分的顾客来说，星期假日正是他们出外血拼的大好时机，不过尽管如此，Bill还是坚守这项原则，而且将这家店从1954年他接手时的25万美金营业额，一路成长到1999年的3.42亿美元。

Bill felt that R. C. Willey could operate successfully in markets outside of Utah and in 1997 suggested that we open a store in Boise. I was highly skeptical about taking a no-Sunday policy into a new territory where we would be up against entrenched rivals open seven days a week. Nevertheless, this was Bill's business to run. So, despite my reservations, I told him to follow both his business judgment and his religious convictions.

Bill认为R.C.Willey应该也能够在犹它州以外的地区成功开拓市场，因此在1997年我们在Boise设立一家分店，不过我还是相当怀疑这种星期天不营业的政策能否在陌生的地区抵抗每周七天无休的对手强力的竞争，当然由于这是Bill负责经营的事业，所以尽管我对这点持保留的态度，但是我还是尊重他的商业判断与宗教信仰。

Bill then insisted on a truly extraordinary proposition: He would personally buy the land and build the store -- for about $9 million as it turned out -- and would sell it to us at his cost if it proved to be successful. On the other hand, if sales fell short of his expectations, we could exit the business without paying Bill a cent. This outcome, of course, would leave him with a huge investment in an empty building. I told him that I appreciated his offer but felt that if Berkshire was going to get the upside it should also take the downside. Bill said nothing doing: If there was to be failure because of his religious beliefs, he wanted to take the blow personally.

Bill后来甚至提出一个非常特别的提案，那就是他愿意先花九百万美元，以私人的名义买下土地，等建筑物盖好，确定营运良好之后，再以成本价卖回给我们，而要是营运不如预期，那么公司可以不必付出一毛钱，虽然这样他必须独力承担庞大的损失，对此我告诉Bill很感谢他的提议，但若Berkshire想要获取投资的报酬，那么它也必须同时承担可能的风险，Bill没有多说什么，只是表示如果因为个人的宗教信仰而使得公司经营不善，他希望能够独力承担这个苦果。

The store opened last August and immediately became a huge success. Bill thereupon turned the property over to us -- including some extra land that had appreciated significantly -- and we wrote him a check for his cost. And get this: Bill refused to take a dime of interest on the capital he had tied up over the two years.
这家店后来顺利于去年八月开幕，立即造成当地的轰动，Bill随即就将产权办理过户，另外包含一些地价已高涨的土地，并收下我们以成本价开出的支票，还有一点必须特别说明，对于两年来陆续投入的资金，Bill婉拒收取任何一毛钱的利息。

　If a manager has behaved similarly at some other public corporation, I haven't heard about it. You can understand why the opportunity to partner with people like Bill Child causes me to tap dance to work every morning.

从来就没有一家公开发行公司的经理人会这样做，至少我个人没有听说过，所以各位不难想象能够与这样的经理人共事，让我每天早上上班时都雀跃不已。

A footnote: After our "soft" opening in August, we had a grand opening of the Boise store about a month later. Naturally, I went there to cut the ribbon (your Chairman, I wish to emphasize, is good for something). In my talk I told the crowd how sales had far exceeded expectations, making us, by a considerable margin, the largest home furnishings store in Idaho. Then, as the speech progressed, my memory miraculously began to improve. By the end of my talk, it all had come back to me: Opening a store in Boise had been my idea.

附带一提的是，在八月简单的开幕仪式之后，一个月后我们在Boise举行了盛大的开幕仪式，自然我也受邀参加开幕剪彩，(我必须强调看来你们的董事长还是有点用处的)，在致词时我告诉在场的来宾销售状况远超过我们当初的预期，让我们成为Idaho地区最大的家具店，远远将其它同业拋在脑后，而等到致词快结束时，我突然想起来，当初决定在Boise开店的，正是我的主意。

The Economics of Property/Casualty Insurance产物意外险的经营

　Our main business -- though we have others of great importance -- is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most critical of all, the long-term outlook for both of these factors.

保险是我们最主要的本业，当然其它事业也相当重要，想要了解Berkshire，你就必须知道如何去评估一家保险公司，其中主要的关键因素有(1)这个行业所能产生的浮存金数量(2)以及它的成本(3)最重要的是这些因素长期的展望。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. This pleasant activity typically carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.
首先浮存金是一项我们持有但却不属于我们的资金，在保险公司的营运中，浮存金产生的原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以因应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本若远高于货币市场利率时，它就像是一颗极酸的柠檬。

A caution is appropriate here: Because loss costs must be estimated, insurers have enormous latitude in figuring their underwriting results, and that makes it very difficult for investors to calculate a company's true cost of float. Errors of estimation, usually innocent but sometimes not, can be huge. The consequences of these miscalculations flow directly into earnings. An experienced observer can usually detect large-scale errors in reserving, but the general public can typically do no more than accept what's presented, and at times I have been amazed by the numbers that big-name auditors have implicitly blessed. In 1999 a number of insurers announced reserve adjustments that made a mockery of the "earnings" that investors had relied on earlier when making their buy and sell decisions. At Berkshire, we strive to be conservative and consistent in our reserving. Even so, we warn you that an unpleasant surprise is always possible.

有一点必须特别注意的是，因为损失成本必须仰赖估算，所以保险业者对于承保结算的成绩有相当大伸缩的空间，连带使得投资人很难正确地衡量一家保险公司真正的浮存金成本，估计错误，通常是无心，但有时却是故意，与真实的结果往往会有很大的差距，而这种结果直接反映在公司的损益表上，有经验的行家通常可以经由公司的准备提列情形发现重大的错误，但对于一般投资大众来说，除了被迫接受财务报表的数字之外，别无他法，而我个人常常被这些经过各大会计师事务所背书的财务报告所吓到，1999年有许多保险业者宣布对先前不当提列准备而导致投资人形成错误决策的骗术进行调整，不过在Berkshire，我们在提列准备时，都尽量采取最保守的做法，不过我还是要警告大家，保险业所发生的意外，通常都不会是什么好消息。

The table that follows shows (at intervals) the float generated by the various segments of Berkshire's insurance operations since we entered the business 33 years ago upon acquiring National Indemnity Company (whose traditional lines are included in the segment "Other Primary"). For the table we have calculated our float -- which we generate in large amounts relative to our premium volume -- by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting agents balances, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Got that?)
下表中所显示的数字是，Berkshire自取得国家产险公司经营权，进入保险事业33年以来所贡献的浮存金，(其中传统业务包含在其它主险项下)，在这张计算浮存金的表中，(相对于收到的保费收入，我们持有的浮存金部位算是相当大的)我们将所有的损失准备、损失费用调整准备、再保预先收取的资金与未赚取保费加总后，再扣除应付佣金、预付购并成本、预付税负以及取得再保业务的相关递延费用，得出浮存金的数额，弄清楚了吗??

Yearend Float (in $ millions)
 

Year
 
GEICO
 
General Re
 
Other Reinsurance
 
Other Primary
 
Total
 

1967
 
　
 
　
 
　
 
20
 
20
 

1977
 
　
 
　
 
40
 
131
 
171
 

1987
 
　
 
　
 
701
 
807
 
1,508
 

1997
 
2,917
 
　
 
4,014
 
455
 
7,386
 

1998
 
3,125
 
14,909
 
4,305
 
415
 
22,754
 

1999
 
3,444
 
15,166
 
6,285
 
403
 
25,298
 

Growth of float is important -- but its cost is what's vital. Over the years we have usually recorded only a small underwriting loss -- which means our cost of float was correspondingly low -- or actually had an underwriting profit, which means we were being paid for holding other people's money. Indeed, our cumulative result through 1998 was an underwriting profit. In 1999, however, we incurred a $1.4 billion underwriting loss that left us with float cost of 5.8%. One mildly mitigating factor: We enthusiastically welcomed $400 million of the loss because it stems from business that will deliver us exceptional float over the next decade. The balance of the loss, however, was decidedly unwelcome, and our overall result must be judged extremely poor. Absent a mega-catastrophe, we expect float cost to fall in 2000, but any decline will be tempered by our aggressive plans for GEICO, which we will discuss later.

浮存金持续成长虽然很重要，但是取得它的成本却更关键，多年以来，我们的承保损失一直控制在相当低的限度，这代表我们浮存金的成本也非常的低，有时甚至还有承保的利益，这等于是由别人付费来保管他们的钱，就像是我们1998年结算下来就有承保利益，只不过很不幸的，我们1999年发生了14亿美元的承保损失，这使得我们浮存金的成本一下暴增到5.8%，令人庆幸的是，其中有一笔4亿美元的损失，将可以在未来十年内提供给我们一笔高额的浮存金，当然其它的损失就让人觉得不太愉快，这样的成绩很明显的让人无法接受，除非再发生重大的天灾人祸，我们预期2000年的浮存金成本将会下降，不过任何的下降都必须面临GEICO强力行销计画的阻拦，关于这点在后面我还会再详细叙述。

There are a number of people who deserve credit for manufacturing so much "no-cost" float over the years. Foremost is Ajit Jain. It's simply impossible to overstate Ajit's value to Berkshire: He has from scratch built an outstanding reinsurance business, which during his tenure has earned an underwriting profit and now holds $6.3 billion of float.
能够取得这笔免成本的浮存金要归功于许多人，这其中贡献最大的当属Ajit Jain，他对于Berkshire贡献的价值实在是难以估算，在他的任期间，从无到有一手建立起Berkshire的再保险事业，如今不但持有63亿美元的浮存金，同时每年还维持稳定的承保获利。

In Ajit, we have an underwriter equipped with the intelligence to properly rate most risks; the realism to forget about those he can't evaluate; the courage to write huge policies when the premium is appropriate; and the discipline to reject even the smallest risk when the premium is inadequate. It is rare to find a person possessing any one of these talents. For one person to have them all is remarkable.

在Ajit的身上，我们看到一位核保人员如何运用智能将风险合理的订价，能够理性回绝无法衡量的风险，同时又能勇敢地接受高额但合理的保单，纪律地拒绝任何不合理订价的微小风险，我们很难在一般人身上找到这类的特点，而要三者合一更是绝无仅有。

Since Ajit specializes in super-cat reinsurance, a line in which losses are infrequent but extremely large when they occur, his business is sure to be far more volatile than most insurance operations. To date, we have benefitted from good luck on this volatile book. Even so, Ajit's achievements are truly extraordinary.

而自从Ajit全心全力投入巨灾的再保业务之后，这是损失发生及不稳定，但一发生即非常惨重的险种，可以肯定的是，Ajit绝对将面临比其它险种变动更大的状况，所幸到目前为止，Berkshire在这类业务的运气还算不错，但即便如此， Ajit的表现依然可圈可点。

In a smaller but nevertheless important way, our "other primary" insurance operation has also added to Berkshire's intrinsic value. This collection of insurers has delivered a $192 million underwriting profit over the past five years while supplying us with the float shown in the table. In the insurance world, results like this are uncommon, and for their feat we thank Rod Eldred, Brad Kinstler, John Kizer, Don Towle and Don Wurster.

其它规模较小但同等重要的"其它保险"营运一样为Berkshire增添了许多实质价值，总结过去五年来，这群保险公司为我们贡献了1.92亿美元的承保利益，外加下表所显示的浮存金，在保险世界里，能够有这样的成绩实属不易，这都要感谢Rod、Brad、John、Don等人。

As I mentioned earlier, the General Re operation had an exceptionally poor underwriting year in 1999 (though investment income left the company well in the black). Our business was extremely underpriced, both domestically and internationally, a condition that is improving but not yet corrected. Over time, however, the company should develop a growing amount of low-cost float. At both General Re and its Cologne subsidiary, incentive compensation plans are now directly tied to the variables of float growth and cost of float, the same variables that determine value for owners.

就像是先前我曾提过的，通用再保1999年的承保绩效相当的惨烈，(虽然投资利益足以让这家公司免于赤字)，我们的保费订价实在是过低，不管是国内或海外业务皆是如此，虽然目前情况已有改进但却尚未完全矫正过来，不过就长期而言，我认为这家公司应该还是能够稳定地贡献低成本的浮存金，目前在通用再保以及其位于科隆的子公司，经理人的绩效奖金多寡完全取决于浮存金成长速度以及其取得成本，这同时也是股东们最重视，也是决定公司价值的几项主要数据。

Even though a reinsurer may have a tightly focused and rational compensation system, it cannot count on every year coming up roses. Reinsurance is a highly volatile business, and neither General Re nor Ajit's operation is immune to bad pricing behavior in the industry. But General Re has the distribution, the underwriting skills, the culture, and -- with Berkshire's backing -- the financial clout to become the world's most profitable reinsurance company. Getting there will take time, energy and discipline, but we have no doubt that Ron Ferguson and his crew can make it happen.
虽然再保业者都有一套相当明确、合理的奖励计画，但实在是很能保证每年都能够有亮丽的成绩，再保业是变动相当大的产业，不管是通用再保或甚至是Ajit都很难免除业者杀价竞争的不当行为，不过通用再保拥有行销通路、承保技巧、企业文化等优势，加上在Berkshire强大的财务支持之下，极有潜力成为全世界获利最佳的再保公司，当然要达到这样的目标绝对需要时间、精力以及纪律，相信Ron Ferguson及其经营团队绝对能够完成这个目标。

GEICO (1-800-847-7536 or GEICO.com)盖可保险 (1-800-847-7536 or GEICO.com)

GEICO made exceptional progress in 1999. The reasons are simple: We have a terrific business idea being implemented by an extraordinary manager, Tony Nicely. When Berkshire purchased GEICO at the beginning of 1996, we handed the keys to Tony and asked him to run the operation exactly as if he owned 100% of it. He has done the rest. Take a look at his scorecard:

盖可1999年的成长十分惊人，原因很简单：一个绝佳的经营想法由最优秀的经理人-Tony Nicely加以落实，当Berkshire在1996年初买下盖可时，我们立刻把钥匙交到Tony的手上，请他把这家公司当作是自己拥有的一样的心态去经营，接下来就看他的表演，大家可以看一看他的成绩单。

Years
 
1993
 
1994
 
1995
 
1996
 
1997
 
1998
 
1999
 

New Auto Policies(1)(2)
 
346,882
 
384,217
 
443,539
 
592,300
 
868,430
 
1,249,875
 
1,648,095
 

Auto Policies In-Force(1)
 
2,011,055
 
2,147,549
 
2,310,037
 
2,543,699
 
2,949,439
 
3,562,644
 
4,328,900
 

1."Voluntary" only; excludes assigned risks and the like.

2.(2) Revised to exclude policies moved from one GEICO company to another.

In 1995, GEICO spent $33 million on marketing and had 652 telephone counselors. Last year the company spent $242 million, and the counselor count grew to 2,631. And we are just starting: The pace will step up materially in 2000. Indeed, we would happily commit $1 billion annually to marketing if we knew we could handle the business smoothly and if we expected the last dollar spent to produce new business at an attractive cost.

1995年，盖可花了3,300万美元在行销活动之上，旗下拥有652位电话咨询顾问，去年公司预算提高为2.42亿美元，咨询顾问的人数增加为2,631位，这还只是刚起步而已，展望2000年还会大幅的成长，行销预算预计会突破10亿美元，只要我们确认每一块钱都花在刀口之上，同时自信有能力顺利处理蜂拥而至的生意。

Currently two trends are affecting acquisition costs. The bad news is that it has become more expensive to develop inquiries. Media rates have risen, and we are also seeing diminishing returns -- that is, as both we and our competitors step up advertising, inquiries per ad fall for all of us. These negatives are partly offset, however, by the fact that our closure ratio -- the percentage of inquiries converted to sales -- has steadily improved. Overall, we believe that our cost of new business, though definitely rising, is well below that of the industry. Of even greater importance, our operating costs for renewal business are the lowest among broad-based national auto insurers. Both of these major competitive advantages are sustainable. Others may copy our model, but they will be unable to replicate our economics.

就目前而言，有两项因素会影响到保单取得成本，不利的是现在每增加一通询问电话的单位成本比过去大大提高，媒体曝光率虽然增加，但询问的响应却相对减少，也就是说在我们与竞争对手同时卯足全力加强宣传时，每家业者每段广告所贡献的询问电话也同步递减，所幸这种负面效果因为我们成交率(每通询问电话真正成交的比率)稳定地增加而减少，总的来说，我们新保单的取得成本虽然增加，但还是远低于同业的水准，而更重要的是，我们续约保单的营运成本更是全美保险业者当中最低的，这两项极重要的竞争优势应该可以继续维持下去，别人或许可以抄袭我们的营运模式，但他们绝对没有办法复制我们的经济规模。

The table above makes it appear that GEICO's retention of policyholders is falling, but for two reasons appearances are in this case deceiving. First, in the last few years our business mix has moved away from "preferred" policyholders, for whom industrywide retention rates are high, toward "standard" and "non-standard" policyholders for whom retention rates are much lower. (Despite the nomenclature, the three classes have similar profit prospects.) Second, retention rates for relatively new policyholders are always lower than those for long-time customers -- and because of our accelerated growth, our policyholder ranks now include an increased proportion of new customers. Adjusted for these two factors, our retention rate has changed hardly at all.
上表显示GEICO的保单续约率正在下降当中，这其中有两个原因造成此种假象，第一，过去几年来，我们的产品组合重心已从原先续约率本来就比较高的指定保户，转成续约率普遍比较低的标准与非标准保户，(虽然名称不同，但三者的获利水准差异不大)，第二，新保户的续约率通常都比长期保户的续约率来得低许多，而因为近年来我们的业务成长快速，所以新保户的比重相对提高，在扣除这两项因素之后，我们的续约率其实变化不大。

We told you last year that underwriting margins for both GEICO and the industry would fall in 1999, and they did. We make a similar prediction for 2000. A few years ago margins got too wide, having enjoyed the effects of an unusual and unexpected decrease in the frequency and severity of accidents. The industry responded by reducing rates -- but now is having to contend with an increase in loss costs. We would not be surprised to see the margins of auto insurers deteriorate by around three percentage points in 2000.

去年我就曾向各位表示1999年 GEICO以及整个保险业界的承保利润率将会下滑，事后证明确是如此，过去几年来由于意外发生的频率与严重性出乎意料的低，所以整个业界得以享有不错的利润率，而业者也因此陆续反应调降费率，只是好景不常，最近损失又有逐步上扬的趋势，所以要是2000年的承保利润率再下滑3个百分点的话，我们一点都不会感到意外。

Two negatives besides worsening frequency and severity will hurt the industry this year. First, rate increases go into effect only slowly, both because of regulatory delay and because insurance contracts must run their course before new rates can be put in. Second, reported earnings of many auto insurers have benefitted in the last few years from reserve releases, made possible because the companies overestimated their loss costs in still-earlier years. This reservoir of redundant reserves has now largely dried up, and future boosts to earnings from this source will be minor at best.

除此之外保险业还有两项因素可能使得意外发生的频率与程度加剧而受到伤害，第一是费率的反应通常需要一段时间，一方面是法律规范的限制，一方面是新费率要等到旧合约到期后才能开始实施，第二，许多保险同业由于几年来损失成本普遍高估，所以损失准备回冲的结果，使得财务报表上盈余看起来还不错，不过这些额外多出来的准备已损耗的差不多了，后续能够支撑盈余数字的准备数量将极其有限。

In compensating its associates -- from Tony on down -- GEICO continues to use two variables, and only two, in determining what bonuses and profit-sharing contributions will be: 1) its percentage growth in policyholders and 2) the earnings of its "seasoned" business, meaning policies that have been with us for more than a year. We did outstandingly well on both fronts during 1999 and therefore made a profit-sharing payment of 28.4% of salary (in total, $113.3 million) to the great majority of our associates. Tony and I love writing those checks.

为了慰劳同仁们的辛劳，从Tony以降，GEICO都利用两项，惟二的两项数据当作评估绩效与奖金分红的标准，1)是保费收入增长的比率；2)是续约保户(泛指投保超过一年的客户)的承保获利表现，1999这年两项数字都十分优异，因此我们加发了相当于28.4%年薪的奖金(金额合计1.133亿美元)给公司所有的同仁，Tony跟我一向很乐意签发这类支票。

At Berkshire, we want to have compensation policies that are both easy to understand and in sync with what we wish our associates to accomplish. Writing new business is expensive (and, as mentioned, getting more expensive). If we were to include those costs in our calculation of bonuses -- as managements did before our arrival at GEICO -- we would be penalizing our associates for garnering new policies, even though these are very much in Berkshire's interest. So, in effect, we say to our associates that we will foot the bill for new business. Indeed, because percentage growth in policyholders is part of our compensation scheme, we reward our associates for producing this initially-unprofitable business. And then we reward them additionally for holding down costs on our seasoned business.

在Berkshire，我们希望奖励规定不但明了易懂，且与我们希望同仁努力完成的目标方向一致，签发新保单的成本相当的高(而且如同刚刚提到的，还有越来越贵的趋势)，也因此如果将这部份的成本列入计算奖金的公式当中，这正是我们在入主GEICO前公司经营阶层的做法，此举无异让员工认为取得新保单是对他们的一种变相惩罚，虽然这明明对Berkshire来说是很有益处的一件事，所以我们站出来告诉员工，请大家放心公司会为新保单所付出的成本买单，甚且把保户成长率也当作是奖励公式的一部份，同仁得以因为这类新增加但不赚钱的保单而获得奖励，当然要是有人能够降低续约保户维持成本的，同样也能获得奖励。

Despite the extensive advertising we do, our best source of new business is word-of-mouth recommendations from existing policyholders, who on the whole are pleased with our prices and service. An article published last year by Kiplinger's Personal Finance Magazine gives a good picture of where we stand in customer satisfaction: The magazine's survey of 20 state insurance departments showed that GEICO's complaint ratio was well below the ratio for most of its major competitors.

虽然我们大举投入广告活动，但我们新保单的主要来源还是来自于原来保户的口耳相传，因为他们对于我们的服务与价格感到满意而向其它人推荐，去年私人理财杂志Kiplinger曾经发表一篇文章，贴切的说明GEICO在消费者心中满意的程度，该杂志总计在访问了20个州立保险部门后发现，GEICO的申诉比率最低，而且远低于主要竞争同业的平均数。

Our strong referral business means that we probably could maintain our policy count by spending as little as $50 million annually on advertising. That's a guess, of course, and we will never know whether it is accurate because Tony's foot is going to stay on the advertising pedal (and my foot will be on his). Nevertheless, I want to emphasize that a major percentage of the $300-$350 million we will spend in 2000 on advertising, as well as large additional costs we will incur for sales counselors, communications and facilities, are optional outlays we choose to make so that we can both achieve significant growth and extend and solidify the promise of the GEICO brand in the minds of Americans.

由于我们已建立了不错的口碑，所以很有可能我们每年只要花5,000万美元的广告费就可以维持既有的保单数量，但那仅仅是大胆的猜测，永远没有人知道其正确性，因为Tony仍然会持续地踩着强力广告的油门，(而我也会插一脚)，不过有一点我必须要强调的是，在2000年的3亿到3.5亿广告预算以及更多投资在销售顾问、通讯设备等花费当中，有绝大部份并非必要支出，但我们之所以仍然愿意投入，主要就是希望在提升保费收入成长的同时，还能维持甚至加强美国人心目中GEICO对于承诺付诸实现的形象。

Personally, I think these expenditures are the best investment Berkshire can make. Through its advertising, GEICO is acquiring a direct relationship with a huge number of households that, on average, will send us $1,100 year after year. That makes us -- among all companies, selling whatever kind of product -- one of the country's leading direct merchandisers. Also, as we build our long-term relationships with more and more families, cash is pouring in rather than going out (no Internet economics here). Last year, as GEICO increased its customer base by 766,256, it gained $590 million of cash from operating earnings and the increase in float.

就我个人观点而言，我认为这是Berkshire能够做的最好投资，经由大量广告， GEICO可以直接与更多的美国家庭建立起直接的关系，年复一年每个家庭平均提供1,100美元的资金给我们运用，这使得我们在众多销售各式各样产品的公司当中，成为全美最畅销的直销产品之一，而随着我们与更多的美国家庭建立起长期的关系，现金更将源源不绝的流入(在这里完全不靠网络)，去年随着GEICO的客户数量增加到766,256人，包含营业利润以及浮存金增加就贡献了5.9亿美元的资金。

In the past three years, we have increased our market share in personal auto insurance from 2.7% to 4.1%. But we rightfully belong in many more households -- maybe even yours. Give us a call and find out. About 40% of those people checking our rates find that they can save money by doing business with us. The proportion is not 100% because insurers differ in their underwriting judgments, with some giving more credit than we do to drivers who live in certain geographic areas or work at certain occupations. Our closure rate indicates, however, that we more frequently offer the low price than does any other national carrier selling insurance to all comers. Furthermore, in 40 states we can offer a special discount -- usually 8% -- to our shareholders. Just be sure to identify yourself as a Berkshire owner so that our sales counselor can make the appropriate adjustment.

过去三年以来，我们在汽车保险的占有率从原先的2.7%提高到4.1%，无疑地我们属于全美许多家庭的，甚至可能是你们家的，打个电话给我们试看看，大约有四成的人在看过我们的费率之后，会发现可以为他们省下一大笔钱，(我只所以没说100%的原因在于，每家保险业者对于风险的估计都不同，有些保险公司对于居住于某些特定地区的居民与从事某些特定职业的客户有偏好，不过我仍然坚信我们提供给一般民众的费率通常都低于其它全国性的业者，在随年报附赠的GEICO资料中，大家将可以看到我们提供给来自全美40州股东最高8%的折扣费率，至于其它州的股东也接受开放申请取得不等的折扣。

It's with sadness that I report to you that Lorimer Davidson, GEICO's former Chairman, died last November, a few days after his 97th birthday. For GEICO, Davy was a business giant who moved the company up to the big leagues. For me, he was a friend, teacher and hero. I have told you of his lifelong kindnesses to me in past reports. Clearly, my life would have developed far differently had he not been a part of it. Tony, Lou Simpson and I visited Davy in August and marveled at his mental alertness -- particularly in all matters regarding GEICO. He was the company's number one supporter right up to the end, and we will forever miss him.

在这里很遗憾地向各位报告， GEICO前董事长-Lorimer Davidson，于去年十一月去世，享年97岁，对于GEICO来说，大卫是带领公司跃上台面的企业巨人，而对我个人来说，他是我的偶像，亦师亦友，在过去年度的报告中，我不只一次的提到他对我个人的关照，很显然的要是没有他，我个人的一生可能要完全改观，Tony、Lou Simpson与我在去年八月还曾经去拜访他，对于他当时的记忆力还佩服不已，尤其是有关GEICO的点点滴滴，一直以来，他就是GEICO公司的头号支持者，我们将会永远地怀念他。

Aviation Services航空服务业

Our two aviation services companies -- FlightSafety International ("FSI") and Executive Jet Aviation ("EJA") -- are both runaway leaders in their field. EJA, which sells and manages the fractional ownership of jet aircraft, through its NetJetsR program, is larger than its next two competitors combined. FSI trains pilots (as well as other transportation professionals) and is five times or so the size of its nearest competitor.

我们旗下两家航空服务公司-国际飞安(FSI)以及企业主管飞行服务(EJA)都是各自产业的领导者，EJA所推出的NetJets计画，专门出售并为客户管理其拥有的专机部份所有权，目前的占有率超过其它两家主要竞争业者的总和，FSI则专门训练机师(也包含其它专门运输人员)，其规模是其它最大竞争业者的五倍。

Another common characteristic of the companies is that they are still managed by their founding entrepreneurs. Al Ueltschi started FSI in 1951 with $10,000, and Rich Santulli invented the fractional-ownership industry in 1986. These men are both remarkable managers who have no financial need to work but thrive on helping their companies grow and excel.

这些公司另外还有一项特点就是到目前为止，都还是由原来的创办人在经营，Al Ueltschi在1951年以10,000美元创立FSI，而Rich Santulli则是在1986年开创部份所有权事业，这两位都是相当杰出的企业家，目前他们早已不需要为了钱而工作，不过现在依然在自己的岗位上兢兢业业地让自己创立的公司继续发扬光大。

Though these two businesses have leadership positions that are similar, they differ in their economic characteristics. FSI must lay out huge amounts of capital. A single flight simulator can cost as much as $15 million -- and we have 222. Only one person at a time, furthermore, can be trained in a simulator, which means that the capital investment per dollar of revenue at FSI is exceptionally high. Operating margins must therefore also be high, if we are to earn a reasonable return on capital. Last year we made capital expenditures of $215 million at FSI and FlightSafety Boeing, its 50%-owned affiliate.

虽然两家公司所领导的产业相当类似，但却有很不相同的竞争形态，FSI需要相当密集的资本，光是一台飞行仿真器就要耗资1,500万，现在我们拥有222台，而且每一台仿真器，一次只能训练一位飞行员，这意味着每一元营收所要投入的资本支出相当的高，也因此要维持一定的投资报酬，营业毛利一定要够高，去年FSI与其持股50%的国际飞安-波音的资本支出达2.15亿美元。

At EJA, in contrast, the customer owns the equipment, though we, of course, must invest in a core fleet of our own planes to ensure
outstanding service. For example, the Sunday after Thanksgiving, EJA's busiest day of the year, strains our resources since fractions of 169 planes are owned by 1,412 customers, many of whom are bent on flying home between 3 and 6 p.m. On that day, and certain others, we need a supply of company-owned aircraft to make sure all parties get where they want, when they want.

相对的由于EJA的设备所有权属于客户，当然我们也必须投资一部份资金取得核心机队的所有权以维持高档的服务水准，举例来说，在EJA每年最忙碌的感恩节后的那个星期天，简直就把我们给忙坏了，由于169架飞机分别属于1,412位所有权人，许多人都想要在当天下午三点到六点使用飞机，所以我们绝对有必要准备额外自有的飞机，好让每个客人在任何时候到达任何他想要到的地方。

Still, most of the planes we fly are owned by customers, which means that modest pre-tax margins in this business can produce good returns on equity. Currently, our customers own planes worth over $2 billion, and in addition we have $4.2 billion of planes on order. Indeed, the limiting factor in our business right now is the availability of planes. We now are taking delivery of about 8% of all business jets manufactured in the world, and we wish we could get a bigger share than that. Though EJA was supply-constrained in 1999, its recurring revenues -- monthly management fees plus hourly flight fees -- increased 46%.

当然大部分的飞机还是属于客户所有，意思是说在这行只要有合理的税前毛利，股东的投资报酬就相当可观，现在我们客户拥有的飞机价值超过20亿美元，后续我们陆续又下了许多飞机订单，金额总计42亿美元，确实目前限制公司营运成长的主要因素就在于飞机数量，现在我们的订单约占全世界飞机制造交货量的8%，我们希望能够再提高这个比重，虽然EJA在1999年增加的供给量有限，但其固定的营收，也就是客户每个月固定按飞行时数缴交的管理费仍然成长了46%。

The fractional-ownership industry is still in its infancy. EJA is now building critical mass in Europe, and over time we will expand around the world. Doing that will be expensive -- very expensive -- but we will spend what it takes. Scale is vital to both us and our customers: The company with the most planes in the air worldwide will be able to offer its customers the best service. "Buy a fraction, get a fleet" has real meaning at EJA.

专机所有权的产业还在刚起步的阶段，EJA目前在欧洲尚在累积经济规模当中，长期而言我们将计画进军全世界的市场，当然要这样做，必须再投入相当大的资本，相当相当的大，不过只要值得，我们都愿意，对于我们与客户而言，规模经济是最关键的因素，只有在全世界各地拥有最多飞机的公司才能提供给客户最好的服务，"买下部份所有权，你就能拥有全部的机队"，在EJA将不只是个梦。

EJA enjoys another important advantage in that its two largest competitors are both subsidiaries of aircraft manufacturers and sell only the aircraft their parents make. Though these are fine planes, these competitors are severely limited in the cabin styles and mission capabilities they can offer. EJA, in contrast, offers a wide array of planes from five suppliers. Consequently, we can give the customer whatever he needs to buy -- rather than his getting what the competitor's parent needs to sell.

EJA还享有另外一个非常重要的优势，那就是它的两家主要竞争对手都只是国际飞机制造业者的子公司，所以它们被迫只能提供母公司制造的飞机，虽然这些都是好飞机，但竞争对手却因此大大受限于机舱形式以及能够提供的机种用途，相较之下，EJA则能够提供由全世界五大飞机制造公司所生产的全系列飞机，所以我们可以给客户任何他想要的飞机形式，而不是被动接受其母公司的飞机。

Last year in this report, I described my family's delight with the one-quarter (200 flight hours annually) of a Hawker 1000 that we had owned since 1995. I got so pumped up by my own prose that shortly thereafter I signed up for one-sixteenth of a Cessna V Ultra as well. Now my annual outlays at EJA and Borsheim's, combined, total ten times my salary. Think of this as a rough guideline for your own expenditures with us.

去年在年报当中，我曾经形容我的家族自从1995年来买下四分之一的(也就是每年200小时)的霍克1000型飞机所有权的愉快经验，不久之后，我又再接再厉签约买下一架Cessna V Ultra型六分之一的所有权，现在每年我在EJA以及波仙珠宝的花费大概是我年薪的十倍，如此大家可以据此推算你可以负担的底限在哪里。
During the past year, two of Berkshire's outside directors have also signed on with EJA. (Maybe we're paying them too much.) You should be aware that they and I are charged exactly the same price for planes and service as is any other customer: EJA follows a "most favored nations" policy, with no one getting a special deal.

去年，Berkshire有两位外部董事也与EJA签约买下部份所有权，(可见我们付给他们的酬劳过高)，我可以向大家保证我们付出的价格与得到的服务和其它客户并无二致，在EJA我们推行"最惠国待遇"政策，没有人可以得到特别的对待。

And now, brace yourself. Last year, EJA passed the ultimate test: Charlie signed up. No other endorsement could speak more eloquently to the value of the EJA service. Give us a call at 1-800-848-6436 and ask for our "white paper" on fractional ownership.
现在赶快加入我们的行列吧!因为EJA已经通过最严格的考验，连查理都已经签约了，再也没有比这个更能说明EJA提供的服务所代表的价值，记得打电话1-800-848-6436索取申请部份所有权的表格。

Acquisitions of 1999 1999年的购并活动

At both GEICO and Executive Jet, our best source of new customers is the happy ones we already have. Indeed, about 65% of our new owners of aircraft come as referrals from current owners who have fallen in love with the service.

不管是GEICO或者是EJA，我们新客户的来源主要还是来自于现有客户的介绍，事实上，在专机部份所有权计画中有65%的新客户是来自于现有满意公司服务的老客户所推介。

Our acquisitions usually develop in the same way. At other companies, executives may devote themselves to pursuing acquisition possibilities with investment bankers, utilizing an auction process that has become standardized. In this exercise the bankers prepare a "book" that makes me think of the Superman comics of my youth. In the Wall Street version, a formerly mild-mannered company emerges from the investment banker's phone booth able to leap over competitors in a single bound and with earnings moving faster than a speeding bullet. Titillated by the book's description of the acquiree's powers, acquisition-hungry CEOs -- Lois Lanes all, beneath their cool exteriors -- promptly swoon.

我们的购并行动发生的形态一向很类似，在别的公司，高阶主管通常亲自与投资银行家一起寻求可能的购并机会，所运用的拍卖程序相当制式化，在过程中银行业者准备的帐册让我想到童年时代读到的"超人"漫画，只不过在华尔街版，换成一家本来平淡无奇的公司进到了银行业者特地准备的电话亭后，摇身一变成了一跃升天，盈余成长飞快的超人，而抵挡不住卖方帐册所叙述的神力，购并案饥渴成痴的买方，就像是具有冷艳外表的露易丝，立刻融化在其膝下。

What's particularly entertaining in these books is the precision with which earnings are projected for many years ahead. If you ask the author-banker, however, what his own firm will earn next month, he will go into a protective crouch and tell you that business and markets are far too uncertain for him to venture a forecast.

而在这其中最有趣的是，这些资料所显示未来几年的盈余预测都相当明确，不过要是你问问编造这些报表的银行业者，他们自己银行下个月的盈余预估，他会马上露出警戒的神色告诉你，产业与市场的状况是如何变化多端，以致于他无法妄下定论。

Here's one story I can't resist relating: In 1985, a major investment banking house undertook to sell Scott Fetzer, offering it widely -- but with no success. Upon reading of this strikeout, I wrote Ralph Schey, then and now Scott Fetzer's CEO, expressing an interest in buying the business. I had never met Ralph, but within a week we had a deal. Unfortunately, Scott Fetzer's letter of engagement with the banking firm provided it a $2.5 million fee upon sale, even if it had nothing to do with finding the buyer. I guess the lead banker felt he should do something for his payment, so he graciously offered us a copy of the book on Scott Fetzer that his firm had prepared. With his customary tact, Charlie responded: "I'll pay $2.5 million not to read it."

以下有一则故事我忍不住想补充，故事发生在1985年，有一家非常大的投资银行受委托负责出售史考特-飞兹公司，然而在经过多方的推销后却仍无功而返，在得知这样的情况后，我立即写信给史考特-飞兹当时的总裁-Ralph Schey表达买下该公司的意愿，在这之前我从来没有与Ralph见过面，不过在一个礼拜之内我们便达成协议，可惜令人遗憾的是，在该公司与投资银行所签订的意向书中明订，一旦公司顺利找到买主便须支付250万美元给银行，即便最后的买主与该银行无关也要照付，事后我猜想，或许是该银行认为既然拿了钱，多少都应该办点事，所以他们好心地将先前准备的财务资料提供一份给我们，收到这样的礼物时，查理冷冷地响应说：「我宁愿再多付250万美元也不要看这些垃圾。」

At Berkshire, our carefully-crafted acquisition strategy is simply to wait for the phone to ring. Happily, it sometimes does so, usually because a manager who sold to us earlier has recommended to a friend that he think about following suit.
在Berkshire，我们精心设计的购并策略很简单-就是静静地等待电话铃响，可喜的是，有时还真管用，通常是先前加入我们集团的经理人，甲好道休报，建议其周遭的好朋友可以如法炮制。

Which brings us to the furniture business. Two years ago I recounted how the acquisition of Nebraska Furniture Mart in 1983 and my subsequent association with the Blumkin family led to follow-on transactions with R. C. Willey (1995) and Star Furniture (1997). For me, these relationships have all been terrific. Not only did Berkshire acquire three outstanding retailers; these deals also allowed me to become friends with some of the finest people you will ever meet.
在这里我不免要提到我们的家具事业，两年前我回想到当初在1983年我是如何买下内布拉斯加家具店，以及如何透过B太太家族与R.C.威利家具(1995年)及星辰家具(1997年)结缘的经过，就我个人而言，这些经验实在是棒极了， Berkshire不但得到了三家杰出的零售事业，同时也让我得以认识全天下最好的朋友。

Naturally, I have persistently asked the Blumkins, Bill Child and Melvyn Wolff whether there are any more out there like you. Their invariable answer was the Tatelman brothers of New England and their remarkable furniture business, Jordan's.

因此自然而然地，我就不断地询问B太太家族、Bill及Melvyn身旁有没有像你们一样好的人，他们异口同声的回答都是住在新英格兰州的Tatelman兄弟，以及他们优秀的事业-乔丹家具。

I met Barry and Eliot Tatelman last year and we soon signed an agreement for Berkshire to acquire the company. Like our three previous furniture acquisitions, this business had long been in the family -- in this case since 1927, when Barry and Eliot's grandfather began operations in a Boston suburb. Under the brothers' management, Jordan's has grown ever more dominant in its region, becoming the largest furniture retailer in New Hampshire as well as Massachusetts.
终于在去年我见到了Tatelman兄弟-Barry以及Eliot，很快地我们就签下由Berkshire买下乔丹家具的契约，如同先前的三次购并案，这也是一家家族企业，时间要追溯至1927年，当时由两兄弟的祖父在波士顿市郊创立，之后在两兄弟戮力经营下，不但成为当地家具业的龙头，更进一步跃升为新罕布什尔州以及麻州最大的家具零售店。

The Tatelmans don't just sell furniture or manage stores. They also present customers with a dazzling entertainment experience called "shoppertainment." A family visiting a store can have a terrific time, while concurrently viewing an extraordinary selection of merchandise. The business results are also extraordinary: Jordan's has the highest sales per square foot of any major furniture operation in the country. I urge you to visit one of their stores if you are in the Boston area -- particularly the one at Natick, which is Jordan's newest. Bring money.

Tatelman兄弟不光只是贩卖家具或者是管理店面，他们还提供上门的顾客一种全新的消费经验，他们称之为"血拼秀"，合家光顾的客人不但可以见到各式各样的商品，同时还可享受一段愉快的时光，这样的经营成果无疑让人印象深刻，乔丹家具拥有全美每平方英吋最高的营业额，如果你家住在波士顿地区，衷心建议你可上门看一看，尤其是位于Natick新开幕的那一家，记得要带钱!

Barry and Eliot are classy people -- just like their counterparts at Berkshire's three other furniture operations. When they sold to us, they elected to give each of their employees at least 50￠ for every hour that he or she had worked for Jordan's. This payment added up to $9 million, which came from the Tatelmans' own pockets, not from Berkshire's. And Barry and Eliot were thrilled to write the checks.

Barry与Eliot堪称为谦谦君子，就像是Berkshire旗下其它三家家具店一样，当他们顺利把公司卖给Berkshire之后，他们决定至少为店里的每位员工加发每小时50美分，乘以他们在该店任职时间的薪水，总计最后的金额是900万美元，全部由两兄弟个人而不是Berkshire的口袋支应，记得当时两兄弟在签支票时手还会发抖。

Each of our furniture operations is number one in its territory. We now sell more furniture than anyone else in Massachusetts, New Hampshire, Texas, Nebraska, Utah and Idaho. Last year Star's Melvyn Wolff and his sister, Shirley Toomim, scored two major successes: a move into San Antonio and a significant enlargement of Star's store in Austin.

我们旗下每一家家具店都是当地首屈一指的业者，目前我们在麻州、新罕布什尔州、德州、内布拉斯加州、犹它州以及爱达荷州等地的市场占有率都是第一，去年星辰家具的Melvyn连同他姊姊Shirly又再下两城，成功在圣安东尼奥以及奥斯丁大展身手。

There's no operation in the furniture retailing business remotely like the one assembled by Berkshire. It's fun for me and profitable for you. W. C. Fields once said, "It was a woman who drove me to drink, but unfortunately I never had the chance to thank her." I don't want to make that mistake. My thanks go to Louie, Ron and Irv Blumkin for getting me started in the furniture business and for unerringly guiding me as we have assembled the group we now have.
世上没有一家家具业的经营能够像Berkshire一样，这是我个人的乐趣，也是各位获利的关键所在，W.C. Fields曾经说过：「是女人让我沈于酒国，可惜我从来没有机会得以好好地谢谢她」，我不想犯下相同的错误，在此我要感谢Louie、Ron、Irv等人，是他们让我得以与家具业结缘，而且毫无犹疑地引导我组成现今的梦幻组合。

Now, for our second acquisition deal: It came to us through my good friend, Walter Scott, Jr., chairman of Level 3 Communications and a director of Berkshire. Walter has many other business connections as well, and one of them is with MidAmerican Energy, a utility company in which he has substantial holdings and on whose board he sits. At a conference in California that we both attended last September, Walter casually asked me whether Berkshire might be interested in making a large investment in MidAmerican, and from the start the idea of being in partnership with Walter struck me as a good one. Upon returning to Omaha, I read some of MidAmerican's public reports and had two short meetings with Walter and David Sokol, MidAmerican's talented and entrepreneurial CEO. I then said that, at an appropriate price, we would indeed like to make a deal.

接下去要报告的是第二个购并案，这件案子系透过我多年的好朋友，Level 3 通讯公司董事长，同时也是Berkshire董事-Walter Scott牵线而成，Walter个人也拥有相当多的人脉，其中他在一家能源事业-中美能源公司拥有相当多的股份，同时也担任该公司的董事，去年九月我们共同出席一场在加州举行的研讨会，Walter不经意地问我是否有兴趣投资中美能源公司，在当时我就直觉地认为这应该是一个很好的主意，回到奥玛哈之后，我看了一下中美能源的相关资料，并与Walter及中美能源才能兼具的总裁David Sokol短暂地见了两次面，当场我就表示，只要价位合适，我想成交的可能性很高。

Acquisitions in the electric utility industry are complicated by a variety of regulations including the Public Utility Holding Company Act of 1935. Therefore, we had to structure a transaction that would avoid Berkshire gaining voting control. Instead we are purchasing an 11% fixed-income security, along with a combination of common stock and exchangeable preferred that will give Berkshire just under 10% of the voting power of MidAmerican but about 76% of the equity interest. All told, our investment will be about $2 billion.

购并电力能源事业由于牵涉到包含1935年订定的公用事业控股公司法在内的各种行政法规而显得有些复杂，因此我们必须设计一个交易，以避免Berkshire取得多数的控制权，最后决定由我们出资购买11%固定收益的证券，加上部份普通股与可转换特别股的特殊组合，把Berkshire对中美能源的表决权压在10%以下，同时又能持有该公司76%的权益，总计全部加起来的投资金额超过20亿美元。

Walter characteristically backed up his convictions with real money: He and his family will buy more MidAmerican stock for cash when the transaction closes, bringing their total investment to about $280 million. Walter will also be the controlling shareholder of the company, and I can't think of a better person to hold that post.

而Walter也以具体的行动来支持这项合并案，他与他的家人同样投入了大笔的资金买进更多的中美能源股份，累计投资的金额超过2.8亿美元，这使得他成为拥有该公司控制权的大股东，我想再也找不到比他更适合这个职位的人了。

Though there are many regulatory constraints in the utility industry, it's possible that we will make additional commitments in the field. If we do, the amounts involved could be large.

虽然在能源事业有许多法规的限制，但我们极有可能在这个产业投入更多的资金，如果真的实行，这个数字铁定十分可观。

Acquisition Accounting购并案的会计处理

Once again, I would like to make some comments about accounting, in this case about its application to acquisitions. This is currently a very contentious topic and, before the dust settles, Congress may even intervene (a truly terrible idea).

再一次，我要对会计原则发表一些看法，这次是有关购并案的会计应用，到目前为止，这也是一项争议性相当高的议题，在所有事件尘埃落定以前，甚至连国会议员都有可能会介入干涉(这听起来令人感到不寒而栗)。

When a company is acquired, generally accepted accounting principles ("GAAP") currently condone two very different ways of recording the transaction: "purchase" and "pooling." In a pooling, stock must be the currency; in a purchase, payment can be made in either cash or stock. Whatever the currency, managements usually detest purchase accounting because it almost always requires that a "goodwill" account be established and subsequently written off -- a process that saddles earnings with a large annual charge that normally persists for decades. In contrast, pooling avoids a goodwill account, which is why managements love it.

当一家公司被购并，通常一般公认会计原则(GAAP)容许两种截然不同的会计处理方法：一种是购买法；另一种是权益合并法，要运用权益合并法，交易的标的必须是股票，至于购买法则使用现金或股票皆可，但不论如何，管理阶层通常很排斥使用购买法，因为在大多数的情况下，公司的会计帐上会因此多出一项叫做"商誉"的会计科目，而此商誉日后还要分年摊销，意思是说在合并完成后，公司每年都要提列一笔为数庞大的商誉摊销费用列为损益数字的减项，而且时间可能长达数十年，相对地，权益合并法就没有这样的麻烦，可想而知这种方法广受一般高阶经理人的欢迎。

Now, the Financial Accounting Standards Board ("FASB") has proposed an end to pooling, and many CEOs are girding for battle. It will be an important fight, so we'll venture some opinions. To begin with, we agree with the many managers who argue that goodwill amortization charges are usually spurious. You'll find my thinking about this in the appendix to our 1983 annual report, which is available on our website, and in the Owner's Manual on pages 55 - 62.

如今财务会计准则委员会(FASB)有意取消权益合并法之运用，此举让许多高阶经理人为之跳脚而群起反对，可以预见双方将会有一场激烈的纷争，为此我们必须站出来发表个人的意见，首先我们同意许多经理人认为商誉摊销根本就不切实际的说法，大家可以在1983年年报的附录(已公布于本公司网站)以及股东手册55-62页，找到我个人对这件事的看法。

For accounting rules to mandate amortization that will, in the usual case, conflict with reality is deeply troublesome: Most accounting charges relate to what's going on, even if they don't precisely measure it. As an example, depreciation charges can't with precision calibrate the decline in value that physical assets suffer, but these charges do at least describe something that is truly occurring: Physical assets invariably deteriorate. Correspondingly, obsolescence charges for inventories, bad debt charges for receivables and accruals for warranties are among the charges that reflect true costs. The annual charges for these expenses can't be exactly measured, but the necessity for estimating them is obvious.

对于强制规定摊销的会计原则，通常导致与现实严重不符，从而引发相当麻烦的问题，因为大部分的会计原则虽然无法准确地反应出实际状况，但最起码差异不大，举个例子来说，折旧费用的提列虽然无法完全地反映出实体资产价值减损的真实情况，但这种做法至少与现实发展的方向相一致，实体资产本来就必然会逐渐减损，同样的存货提列跌价损失、应收帐款提列呆帐费用以及保固责任提列准备都是反映潜在成本的合理做法，虽然这些费用成本难以准确的计算出来，但确实也有加以估计的必要。

In contrast, economic goodwill does not, in many cases, diminish. Indeed, in a great many instances -- perhaps most -- it actually grows in value over time. In character, economic goodwill is much like land: The value of both assets is sure to fluctuate, but the direction in which value is going to go is in no way ordained. At See's, for example, economic goodwill has grown, in an irregular but very substantial manner, for 78 years. And, if we run the business right, growth of that kind will probably continue for at least another 78 years.

但相对的，经济商誉在许多情况下，并不会减损或消失，事实上在大部分的案例中，商誉不但不减反而会随着时间的累积而增加，在某些特质上，经济商誉反而类似土地，两者的价值都会上下波动，但何时会增加，何时又会减少却不一定，以喜斯糖果的例子来说，在过去的78年来，其品牌价值以不规则但快速的速度成长，而只要我们经营得当，其品牌价值增长的态势很有可能再继续维持78年。

To escape from the fiction of goodwill charges, managers embrace the fiction of pooling. This accounting convention is grounded in the poetic notion that when two rivers merge their streams become indistinguishable. Under this concept, a company that has been merged into a larger enterprise has not been "purchased" (even though it will often have received a large "sell-out" premium). Consequently, no goodwill is created, and those pesky subsequent charges to earnings are eliminated. Instead, the accounting for the ongoing entity is handled as if the businesses had forever been one unit.

为了避免商誉不当的摊销，伟大的经理人们宁愿选择拥抱不当的权益合并法，这项会计创意源自于两条河川在汇流后就不必分彼此的概念，在这种观念下，一家被另一家更大公司购并的公司并不算是被"买下"的(虽然他们通常会得到相当的合并溢价)，从而推论合并的过程并没有商誉会产生，自然而然也就没有随后令人感到麻烦的商誉摊销发生，反而应该要把这两家公司当作一开始就是一体的来看待。

So much for poetry. The reality of merging is usually far different: There is indisputably an acquirer and an acquiree, and the latter has been "purchased," no matter how the deal has been structured. If you think otherwise, just ask employees severed from their jobs which company was the conqueror and which was the conquered. You will find no confusion. So on this point the FASB is correct: In most mergers, a purchase has been made. Yes, there are some true "mergers of equals," but they are few and far between.

有点咬文嚼字，事实上这与合并背后所代表的事实真相却大不相同，毫无疑问的，既然有交易，就一定有购并方与被购并方，不管你如何修饰交易的条件细节，一定有一方是被另一方买下，其实很简单，只要你问问交易双方的员工，谁是征服者，而谁又是被征服者，就知道是怎么一回事了，绝对不会搞混，所以从这个角度来看，FASB的坚持绝对是正确的，在大部分的购并案中，绝对有买卖的性质存在，当然确实也有对等的合并个案发生，但出现的机率实在是少之又少。

Charlie and I believe there's a reality-based approach that should both satisfy the FASB, which correctly wishes to record a purchase, and meet the objections of managements to nonsensical charges for diminution of goodwill. We would first have the acquiring company record its purchase price -- whether paid in stock or cash -- at fair value. In most cases, this procedure would create a large asset representing economic goodwill. We would then leave this asset on the books, not requiring its amortization. Later, if the economic goodwill became impaired, as it sometimes would, it would be written down just as would any other asset judged to be impaired.

查理跟我始终相信应该有一个与现实相接轨的方法可以同时满足FASB想要正确的反应买卖交易实质的看法，以及经理人反对商誉不当摊销的呼声，我认为首先购并公司应该要以公平市价认列其投资成本，不管是支付现金或是股票，当然在大多数的情况下，公司帐上会出现大笔的经济商誉，但我们应该让这项资产继续保留在会计帐上，而不是分年摊销，嗣后若公司的经济商誉真得有减损的情况，这不是没有可能，那么就按一般判断资产价值是否减损的方式去评估。

If our proposed rule were to be adopted, it should be applied retroactively so that acquisition accounting would be consistent throughout America -- a far cry from what exists today. One prediction: If this plan were to take effect, managements would structure acquisitions more sensibly, deciding whether to use cash or stock based on the real consequences for their shareholders rather than on the unreal consequences for their reported earnings.
如果我们提出的方案获得采用，预计将会追溯适用，以使得全美的购并会计处理原则都一致，而不是像现在一样乱象纷呈，可以预见的是，一旦这项方案开始施行，经理人一定会更审慎地处理购并案，小心评估到底应该使用现金或是攸关股东长远利益的股票，而不光只是看合并后的会计帐面损益而已。

In our purchase of Jordan's, we followed a procedure that will maximize the cash produced for our shareholders but minimize the earnings we report to you. Berkshire purchased assets for cash, an approach that on our tax returns permits us to amortize the resulting goodwill over a 15-year period. Obviously, this tax deduction materially increases the amount of cash delivered by the business. In contrast, when stock, rather than assets, is purchased for cash, the resulting writeoffs of goodwill are not tax-deductible. The economic difference between these two approaches is substantial.

在买下乔登家具的过程中，我们采用能够让Berkshire股东未来的现金流量极大，而帐列盈余最小的方式，为此Berkshire决定使用现金买下资产，此举让我们可以在分十五年摊提商誉费用时得到租税的抵减，而减税的效益，等于是让公司未来几年的现金流量明显的增加，相较之下，使用股票进行购并就没有这项好处，一次打销的商誉损失是无法用来抵税的，两者之间的经济实质差异再明显也不过了。

From the economic standpoint of the acquiring company, the worst deal of all is a stock-for-stock acquisition. Here, a huge price is often paid without there being any step-up in the tax basis of either the stock of the acquiree or its assets. If the acquired entity is subsequently sold, its owner may owe a large capital gains tax (at a 35% or greater rate), even though the sale may truly be producing a major economic loss.

从购并者的经济角度来看，最不划算的交易方式就是以股换股的做法，不但租税上没有任何好处，买方还要付出高额的购并溢价，而若买方之后再把这家公司卖掉，即使实际上公司承担庞大的经济损失，卖主还是要负担高额的资本利得税(税率往往高达35%以上)。

We have made some deals at Berkshire that used far-from-optimal tax structures. These deals occurred because the sellers insisted on a given structure and because, overall, we still felt the acquisition made sense. We have never done an inefficiently-structured deal, however, in order to make our figures look better.
不过在Berkshire我们也曾用过非租税最佳化的方式，主要的原因在于卖方基于某种原因的坚持，当然基本上我们也认为这样的规划还算合理，但是我们绝对不会因为要让帐面数字好看而牺牲任何的租税利益。

Sources of Reported Earnings帐列盈余的来源

The table that follows shows the main sources of Berkshire's reported earnings. In this presentation, purchase-accounting adjustments are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. For the reasons discussed on page 61, this form of presentation seems to us to be more useful to investors and managers than one utilizing generally accepted accounting principles (GAAP), which require purchase-premiums to be charged off business-by-business. The total earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

(in millions) Berkshire's Shareof Net Earnings (after taxes andPre-Tax Earningsminority interests)

Operating Earnings:　　Insurance Group:

 
 
Underwriting
 
Net Investment Income
 
Buffalo News
 
Finance and Financial Products Businesses
 
Flight Services
 
Home Furnishings
 
International Dairy Queen
 

1999
 
$(1,440)
 
24
 
22
 
2,482
 
55
 
125
 
225
 
79
 
56
 

1998
 
$(21)
 
269
 
17
 
974
 
53
 
205
 
181
 
(2)72
 
58
 

1999
 
$(927)
 
16
 
14
 
1,764
 
34
 
86
 
(1)132
 
46
 
35
 

1998
 
$(14)
 
175
 
10
 
731
 
32
 
133
 
110 (1)
 
(2)41
 
35
 

 
 
Jewelry
 
Scott Fetzer (excluding finance operation)
 
See's Candies
 
Shoe Group
 
Purchase-Accounting Adjustments
 
Interest Expense (3)
 
Shareholder-Designated Contributions
 
Other
 

1999
 
51
 
147
 
74
 
17
 
(739)
 
(109)
 
(17)
 
33
 

1998
 
39
 
137
 
62
 
33
 
(123)
 
(100)
 
(17)
 
60 (4)
 

1999
 
31
 
92
 
46
 
11
 
(648)
 
(70)
 
(11)
 
20
 

1998
 
23
 
85
 
40
 
23
 
(118)
 
(63)
 
(11)
 
45 (4)
 

 
 
Operating Earnings
 
Capital Gains from Investments
 
Total Earnings - All Entities
 

1999
 
1,085
 
1,365
 
$2,450
 

1998
 
1,899
 
2,415
 
$4,314
 

1999
 
671
 
886
 
$1,557
 

1998
 
1,277
 
1,553
 
$ 2,830
 

(1) Includes Executive Jet from August 7, 1998.
 
(3) Excludes interest expense of Finance Businesses.
 

(2) Includes Jordan's Furniture from November 13, 1999.
 
(4) Includes General Re operations for ten days in 1998.
 

Almost all of our manufacturing, retailing and service businesses had excellent results in 1999. The exception was Dexter Shoe, and there the shortfall did not occur because of managerial problems: In skills, energy and devotion to their work, the Dexter executives are every bit the equal of our other managers. But we manufacture shoes primarily in the U.S., and it has become extremely difficult for domestic producers to compete effectively. In 1999, approximately 93% of the 1.3 billion pairs of shoes purchased in this country came from abroad, where extremely low-cost labor is the rule.

回顾1999年，我们旗下的制造、零售与服务业的表现几乎接近完美，Dexter鞋业除外，不过该公司的问题不在于经营管理，就工作上的经验、活力与认真而言，Dexter与其它子公司优秀的经理人毫无二致，主要的原因还在于我们的制造据点位于美国本土，缺乏竞争优势，总计1999年，在美国13亿双的鞋子消耗量中，93%来自于进口，廉价的劳工成本是主要的关键因素。

Counting both Dexter and H. H. Brown, we are currently the leading domestic manufacturer of shoes, and we are likely to continue to be. We have loyal, highly-skilled workers in our U.S. plants, and we want to retain every job here that we can. Nevertheless, in order to remain viable, we are sourcing more of our output internationally. In doing that, we have incurred significant severance and relocation costs that are included in the earnings we show in the table.

若再加上H.H.Brown，我们是美国本土最大的鞋类生产业者，我们仍将尽力维持这样的局面，我们的美国工厂拥有最忠诚，且最有经验的工人，我们希望能够保留每一个职位，但尽管如此，为了保持弹性，我们不得不开始从海外寻找潜在的代工来源，也因此在下表年度帐上提列部门调整的损失。

A few years back, Helzberg's, our 200-store jewelry operation, needed to make operating adjustments to restore margins to appropriate levels. Under Jeff Comment's leadership, the job was done and profits have dramatically rebounded. In the shoe business, where we have Harold Alfond, Peter Lunder, Frank Rooney and Jim Issler in charge, I believe we will see a similar improvement over the next few years.

几年前，在全美拥有200家分店的贺兹柏格钻石，为了恢复原有高毛利而在营运上做了许多调整，在Jeff Comment的领导下，目标顺利达成，利润率快速的回升，同样的在鞋业，我们拥有Harold、Peter、Frank以及Jim担纲，我相信在未来几年内也能有相同的成果。

See's Candies deserves a special comment, given that it achieved a record operating margin of 24% last year. Since we bought See's for $25 million in 1972, it has earned $857 million pre-tax. And, despite its growth, the business has required very little additional capital. Give the credit for this performance to Chuck Huggins. Charlie and I put him in charge the day of our purchase, and his fanatical insistence on both product quality and friendly service has rewarded customers, employees and owners.

此外在这里要特别提到喜斯糖果，因为它去年的营业利润高达24%，自从我们在1972年以2,500万美元买下该公司以来，它已为我们贡献了8.57亿美元的税前净利，而尽管公司营运维持高成长，本身却不需要额外的资金加以支应，有鉴于Chuck Huggins过去优异的表现，我们在买下该公司的第一天起就把公司交给他负责，而他对产品品质与亲切服务的坚持，让顾客、员工与股东都受益良多。

Chuck gets better every year. When he took charge of See's at age 46, the company's pre-tax profit, expressed in millions, was about 10% of his age. Today he's 74, and the ratio has increased to 100%. Having discovered this mathematical relationship -- let's call it Huggins' Law -- Charlie and I now become giddy at the mere thought of Chuck's birthday.
Chuck的表现一天比一天好，记得他接手喜斯时的年纪是46岁，公司的税前获利(单位百万美元)大概是他年纪的10%，如今他高龄74岁，但这个比率却提高到100%，在发现这个有趣的数字之后，我们把它称之为Huggins定律，现在查理跟我只要想到Chuck的生日快到时，就暗自窃喜不已。

Additional information about our various businesses is given on pages 39 - 54, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 63 - 69, we have rearranged Berkshire's financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company.
有关其它关系企业的信息大家可以在39-54页找到，包含依照一般公认会计准则编制的部门别信息，此外在63-69页，你还可以找到经过重编，依照Berkshire四大部门编排的信息(非按一般公认会计准则编制)，这是查理跟我认为最能够完整呈现Berkshire现况的模式。

Look-Through Earnings完整透视盈余

Reported earnings are an inadequate measure of economic progress at Berkshire, in part because the numbers shown in the table presented earlier include only the dividends we receive from investees -- though these dividends typically represent only a small fraction of the earnings attributable to our ownership. Not that we mind this division of money, since on balance we regard the undistributed earnings of investees as more valuable to us than the portion paid out. The reason for our thinking is simple: Our investees often have the opportunity to reinvest earnings at high rates of return. So why should we want them paid out?

我们认为帐列盈余很难表现Berkshire实际的营运状况，部份原因在于列示在本公司帐上的股利收入，事实上仅占被投资公司收益的一小部份，其实我们并不要求盈余一定要分配，事实上对我们而言，我们更重视未分配的那一部份，因为他们极可能为我们创造出更高的价值，原因很简单，因为我们的被投资公司往往比母公司更有机会把资金投入到高投资报酬的用途之上，既然如此又何必一定要强迫他们把盈余分配回来呢?

To depict something closer to economic reality at Berkshire than reported earnings, though, we employ the concept of "look-through" earnings. As we calculate these, they consist of: (1) the operating earnings reported in the previous section, plus; (2) our share of the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. When tabulating "operating earnings" here, we exclude purchase-accounting adjustments as well as capital gains and other major non-recurring items.

为了要更真实的反应Berkshire实际的经营状况，于是乎我们运用了完整透视盈余的观念，这个数字总共包含(1)前段所提到的帐列盈余，加上(2)主要被投资公司的保留盈余，按一般公认会计原则未反应在我们公司帐上的盈余，扣除(3)若这些未反应的盈余分配给我们时，估计可能要缴的所得税。在这里我们所谓的营业盈余系已扣除资本利得、特别会计调整与企业其它非常态的项目。

The following table sets forth our 1999 look-through earnings, though I warn you that the figures can be no more than approximate, since they are based on a number of judgment calls. (The dividends paid to us by these investees have been included in the operating earnings itemized on page 13, mostly under "Insurance Group: Net Investment Income.")

各位可以从下表看出我们是如何计算出1999年透视盈余的，不过我还是要提醒各位这些数字只不过是估计数，很多都是基于简单的判断，(被投资公司所分配的股利收入已经列在13页的营业利益之内，大部分包含在保险事业的净投资收益项下)。

　
 
Berkshire's Approximate
 
Berkshire's Share of Undistributed
 

Berkshire's Major Investees
 
Ownership at Yearend(1)
 
Operating Earnings (in millions)(2)
 

American Express Company
 
11.3%
 
$228
 

The Coca-Cola Company
 
8.1%
 
144
 

Freddie Mac
 
8.6%
 
127
 

The Gillette Company.
 
9.0%
 
53
 

M&T Bank.
 
6.5%
 
17
 

The Washington Post Company
 
18.3%
 
30
 

Wells Fargo & Company
 
3.6%
 
108
 

Berkshire's share of undistributed earnings of major investees
 
707
 

Hypothetical tax on these undistributed investee earnings(3)
 
(99)
 

Reported operating earnings of Berkshire
 
1,318
 

Total look-through earnings of Berkshire
 
$ 1,926
 

(1) Does not include shares allocable to minority interests
(2) Calculated on average ownership for the year
(3) The tax rate used is 14%, which is the rate Berkshire pays on the dividends it receives

Investments投资

Below we present our common stock investments. Those that had a market value of more than $750 million at the end of 1999 are itemized.

下表是Berkshire 1999年市价超过七亿五千万美元以上的股票投资。12/31/99(dollars in millions)

Shares
 
Company
 
Cost*
 
Market
 

50,536,900
 
American Express Company
 
$1,470
 
$ 8,402
 

200,000,000
 
The Coca-Cola Company
 
1,299
 
11,650
 

59,559,300
 
Freddie Mac
 
294
 
2,803
 

96,000,000
 
The Gillette Company
 
600
 
3,954
 

1,727,765
 
The Washington Post Company
 
11
 
960
 

59,136,680
 
Wells Fargo & Company
 
349
 
2,391
 

　
 
Others
 
4,180
 
6,848
 

　
 
Total Common Stocks
 
$8,203
 
$37,008
 

* Represents tax-basis cost which, in aggregate, is $691 million less than GAAP cost.

We made few portfolio changes in 1999. As I mentioned earlier, several of the companies in which we have large investments had disappointing business results last year. Nevertheless, we believe these companies have important competitive advantages that will endure over time. This attribute, which makes for good long-term investment results, is one Charlie and I occasionally believe we can identify. More often, however, we can't -- not at least with a high degree of conviction. This explains, by the way, why we don't own stocks of tech companies, even though we share the general view that our society will be transformed by their products and services. Our problem -- which we can't solve by studying up -- is that we have no insights into which participants in the tech field possess a truly durable competitive advantage.

1999年我们只做了些许的变动，如同先前我曾提到的，去年有几家我们拥有重大投资部位的被投资公司其经营状况令人不甚满意，尽管如此，我们仍然相信这些公司拥有相当的竞争优势，可协助其继续稳定经营下去，这种可以让长期投资有不错成果的特点，是查理跟我还有点自信可以分辨得出的地方，只是有时我们也不敢百分之百保证一定没问题，这也是为什么我们从来不买高科技股票的原因，即使我们不得不承认它们所提供的产品与服务将会改变整个社会，问题是-就算是我们再想破头，也没有能力分辨出在众多的高科技公司中，到底是哪一些公司拥有长远的竞争优势。

Our lack of tech insights, we should add, does not distress us. After all, there are a great many business areas in which Charlie and I have no special capital-allocation expertise. For instance, we bring nothing to the table when it comes to evaluating patents, manufacturing processes or geological prospects. So we simply don't get into judgments in those fields.
不过我必须强调，不懂高科技一点都不会让我感到沮丧，毕竟在这个世界上本来就有很多产业是查理跟我自认没有什么特殊的经验，举例来说，专利权评估、工厂制程与地区发展前景等，我们就一窍不通，所以我们从来不会想要在这些领域妄下评论。

If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter. Predicting the long-term economics of companies that operate in fast-changing industries is simply far beyond our perimeter. If others claim predictive skill in those industries -- and seem to have their claims validated by the behavior of the stock market -- we neither envy nor emulate them. Instead, we just stick with what we understand. If we stray, we will have done so inadvertently, not because we got restless and substituted hope for rationality. Fortunately, it's almost certain there will be opportunities from time to time for Berkshire to do well within the circle we've staked out.

如果说我们有什么能力，那就是我们深知要在具竞争优势的范围内，把事情尽量做好，以及明了可能的极限在哪里，而要预测在变化快速产业中经营的公司，其长期的经营前景如何，很明显的已超过我们的能力范围之外，如果有人宣称有能力做类似的预测，且以公司的股价表现做为左证，则我们一点也不会羡慕，更不会想要去仿效，相反的，我们会回过头来坚持我们所了解的东西，如果不幸偏离轨道，那也一定是不小心的，绝非慌张莽撞想要得到合理的解释，还好可以确信的是Berkshire永远有机会找到它能力范围内可以做的事。

Right now, the prices of the fine businesses we already own are just not that attractive. In other words, we feel much better about the businesses than their stocks. That's why we haven't added to our present holdings. Nevertheless, we haven't yet scaled back our portfolio in a major way: If the choice is between a questionable business at a comfortable price or a comfortable business at a questionable price, we much prefer the latter. What really gets our attention, however, is a comfortable business at a comfortable price.

目前我们拥有的这些好公司的股票价格其实不甚吸引人，从另外一个角度来看，我们认为它们的本质比起股价表现要好得多，这也是为什么我们并不急着增加持股，尽管如此，我们也没有大幅降低持股部位，如果要在股价令人满意但有问题的公司与股价有问题但令人满意的公司作选择，我们宁愿选择后者，当然真正会引起我们兴趣的，是那种公司令人满意，同时股价也令人满意的标的。

Our reservations about the prices of securities we own apply also to the general level of equity prices. We have never attempted to forecast what the stock market is going to do in the next month or the next year, and we are not trying to do that now. But, as I point out in the enclosed article, equity investors currently seem wildly optimistic in their expectations about future returns.

我们对于目前大盘的股价表现与先前对于本身持股投资组合股价的看法一致，我们从来不会想要试图去预估下个月或下一年度的股市走势，过去不会，现在也不会，不过如同我在附录的文章中指出的，股市投资人现在对于目前持股未来可能的投资报酬实在是显得过于乐观。

We see the growth in corporate profits as being largely tied to the business done in the country (GDP), and we see GDP growing at a real rate of about 3%. In addition, we have hypothesized 2% inflation. Charlie and I have no particular conviction about the accuracy of 2%. However, it's the market's view: Treasury Inflation-Protected Securities (TIPS) yield about two percentage points less than the standard treasury bond, and if you believe inflation rates are going to be higher than that, you can profit by simply buying TIPS and shorting Governments.

我们认为企业获利的成长幅度，与一个国家的国内生产毛额(GDP)的成长率成一定关系，而我们估计目前GDP的年增率大概只有3%左右，此外再加上2%预估通货膨胀，当然查理跟我无法对于2%的准确性做任何保证，但这至少市场上一般的共识，预防通膨的国库券(TIPS)的利率大约也是一般政府公债减2个百分点左右，当然如果你感觉通货膨胀可能比这个数字还高，你大可以买进TIPS，同时放空政府公债。

If profits do indeed grow along with GDP, at about a 5% rate, the valuation placed on American business is unlikely to climb by much more than that. Add in something for dividends, and you emerge with returns from equities that are dramatically less than most investors have either experienced in the past or expect in the future. If investor expectations become more realistic -- and they almost certainly will -- the market adjustment is apt to be severe, particularly in sectors in which speculation has been concentrated.

而如果公司获利果真与GDP 预估5%的成长走势相当，那么大家在对美国企业进行评价时的预期，就不可能过于乐观，若再加计配发的股利，那么你可以得出的预计股票报酬率，可能远低于大部分投资人过去几年的投资绩效以及未来几年的投资预期，而如果投资人的期望可以变得更实际一点，我相信总有一天他们一定会，则股市将会进行一波相当大程度的修正，尤其是投机气氛特别重的那些类股。

Berkshire will someday have opportunities to deploy major amounts of cash in equity markets -- we are confident of that. But, as the song goes, "Who knows where or when?" Meanwhile, if anyone starts explaining to you what is going on in the truly-manic portions of this "enchanted" market, you might remember still another line of song: "Fools give you reasons, wise men never try."

总有一天Berkshire会有机会将大量的资金再度投入股市，这点我们相当有信心，不过就像有首歌的歌词是这样："不知在何处?不知在何时?"当然要是有人想要试着跟你解释为何现今股市会如此的疯狂，请记住另一首歌的歌词："笨蛋总是为不合理的事找理由，而聪明人则避而远之"。

Share Repurchases买回库藏股

Recently, a number of shareholders have suggested to us that Berkshire repurchase its shares. Usually the requests were rationally based, but a few leaned on spurious logic.

最近有一些股东建议Berkshire可以考虑从市场上买回公司的股份，通常这类的要求合情合理，但有时候他们背后依俟的逻辑却有点奇怪。

There is only one combination of facts that makes it advisable for a company to repurchase its shares: First, the company has available funds -- cash plus sensible borrowing capacity -- beyond the near-term needs of the business and, second, finds its stock selling in the market below its intrinsic value, conservatively-calculated. To this we add a caveat: Shareholders should have been supplied all the information they need for estimating that value. Otherwise, insiders could take advantage of their uninformed partners and buy out their interests at a fraction of true worth. We have, on rare occasions, seen that happen. Usually, of course, chicanery is employed to drive stock prices up, not down.

只有在一定条件下公司买回自家的股份才有意义，首先，公司在扣除短期周转所需之外还拥有多余的资金，(含现金与银行额度在内)，其次，其股价必须远低于其实质价值，关于这点我还有一点补充：股东必须还有足够信息来对公司进行评价，否则的话，公司内部人极有可能运用信息不对称的现象占不知情股东的便宜，以偏低的价格买到公司的股份，就Berkshire而言，符合上述条件的情形并不多见，当然一般而言，大部分的公司通常都会诱使股东把股价拉高而非压低。

The business "needs" that I speak of are of two kinds: First, expenditures that a company must make to maintain its competitive position (e.g., the remodeling of stores at Helzberg's) and, second, optional outlays, aimed at business growth, that management expects will produce more than a dollar of value for each dollar spent (R. C. Willey's expansion into Idaho).

我提到的公司资金需求大概有两种情况：首先，公司要保留维持其根本的竞争优势的基本开支(例如贺兹柏格钻石店的重新装潢)，第二，其它每投入一块钱能够创造出高于一块钱价值的那类支出(例如R.C.Willey家具店在爱达荷州新成立的据点)。

When available funds exceed needs of those kinds, a company with a growth-oriented shareholder population can buy new businesses or repurchase shares. If a company's stock is selling well below intrinsic value, repurchases usually make the most sense. In the mid-1970s, the wisdom of making these was virtually screaming at managements, but few responded. In most cases, those that did made their owners much wealthier than if alternative courses of action had been pursued. Indeed, during the 1970s (and, spasmodically, for some years thereafter) we searched for companies that were large repurchasers of their shares. This often was a tipoff that the company was both undervalued and run by a shareholder-oriented management.

当一家公司的资金超过前述的资金需求，一家以成长导向的公司股东可以考虑买进新事业或是买回公司自家的股份，要是公司的股价远低于其实质的价值，买回股份通常最有利，在1970年代，投资大众就曾大声呼吁公司的经营阶层采取类似的做法，不过当时却很少有公司响应，真正落实的事后证明大大增进了股东的利益，而为多余资金另外找出路的公司则惨不忍睹，确实在1970年代(以及以后断断续续好几年)，我们专门锁定那些大量买回自家股份的公司，因为这种举动通常暗示这是一家公司股价被低估，同时又拥有相当注重股东权益的经营阶层。

That day is past. Now, repurchases are all the rage, but are all too often made for an unstated and, in our view, ignoble reason: to pump or support the stock price. The shareholder who chooses to sell today, of course, is benefitted by any buyer, whatever his origin or motives. But the continuing shareholder is penalized by repurchases above intrinsic value. Buying dollar bills for $1.10 is not good business for those who stick around.

不过这种情况已成昨日黄花，虽然现在买回自家股份的公司比比皆是，但我们认为大部分的背后都隐含着一个令人鄙夷的动机，那就是为了要拉抬或支撑公司股价，这当然有利于在当时有意出售股份的股东，因为他们能够以不错的价格顺利出场，不管他的背景或出售的动机是什么，不过留下来的股东却因为公司以高于实质价值的价格买回股份而蒙受其害，以1.1美元的价格买进1块钱美钞的生意很明显的并不划算。

Charlie and I admit that we feel confident in estimating intrinsic value for only a portion of traded equities and then only when we employ a range of values, rather than some pseudo-precise figure. Nevertheless, it appears to us that many companies now making repurchases are overpaying departing shareholders at the expense of those who stay. In defense of those companies, I would say that it is natural for CEOs to be optimistic about their own businesses. They also know a whole lot more about them than I do. However, I can't help but feel that too often today's repurchases are dictated by management's desire to "show confidence" or be in fashion rather than by a desire to enhance per-share value.
查理跟我承认我们对于估计股票的实质价值还有点自信，但这也只限于一个价值区间，而绝非一个准确的数字，不过即便如此，我们还是很明显地可以看出许多公司目前以高价买回股份的举动，等于是让卖出股份的股东占尽留下来股东的便宜，当然站在公司的立场来看，大部分的主管对于自家公司有信心也是人之常情，但他们其实比我们更知道公司的一些内情，不管怎样，这些买回的举动总是让我认为压根就不是为了想要增进股东权益，而只不过是经营阶层想要展现自信或者一窝蜂跟进的心态而已。
Sometimes, too, companies say they are repurchasing shares to offset the shares issued when stock options granted at much lower prices are exercised. This "buy high, sell low" strategy is one many unfortunate investors have employed -- but never intentionally! Managements, however, seem to follow this perverse activity very cheerfully.
有时有的公司也会为了抵消先前发行低价认股选择权而买回股份，这种买高卖低的策略跟一般投资人无知的做法并无二致，但这种做法绝不像后者一样是无心的，然而这些经营阶层好象相当热衷于这种对于公司明显不利的举动。

Of course, both option grants and repurchases may make sense -- but if that's the case, it's not because the two activities are logically related. Rationally, a company's decision to repurchase shares or to issue them should stand on its own feet. Just because stock has been issued to satisfy options -- or for any other reason -- does not mean that stock should be repurchased at a price above intrinsic value. Correspondingly, a stock that sells well below intrinsic value should be repurchased whether or not stock has previously been issued (or may be because of outstanding options).

当然发放认股选择权与买回股份不见得就没有道理，但这是两码子事绝不能混为一谈，一家公司要决定买回自家的股份或发行新股，一定要有充分的理由，如果只是因为公司发行的认股权被行使或其它莫名其妙的原因，就要强迫公司以高于实质价值的代价买回股份，实在是没有什么道理，相反的，只要公司的股价远低于其合理的价值，则不管公司先前是否发行过多的股份或选择权，都应该积极买回流通在外的股份。

You should be aware that, at certain times in the past, I have erred in not making repurchases. My appraisal of Berkshire's value was then too conservative or I was too enthused about some alternative use of funds. We have therefore missed some opportunities -- though Berkshire's trading volume at these points was too light for us to have done much buying, which means that the gain in our per-share value would have been minimal. (A repurchase of, say, 2% of a company's shares at a 25% discount from per-share intrinsic value produces only a ?% gain in that value at most -- and even less if the funds could alternatively have been deployed in value-building moves.)

在过去，Berkshire确实有一段期间错过了买回自家股份的机会，一方面是由于我本身对于Berkshire的评价本来就比较保守，也因为当时我将大部分的注意力摆在如何将资金更有效地运用在其它方面之上，此外由于Berkshire本身的交易量本来就不大，实在是很难有机会买回足够的量，也就是说想要透过买回Berkshire股份提高公司实质价值的可能性实在是很低，举例来说，假设我们有机会以低于实质价值25%的价格买回2%流通在外的股份，也只不过是让公司每股的实质价值增加0.5%而已，更何况还要再考量把这些资金运用到其它更能够创造价值的其它用途之上所代表的机会成本。

Some of the letters we've received clearly imply that the writer is unconcerned about intrinsic value considerations but instead wants us to trumpet an intention to repurchase so that the stock will rise (or quit going down). If the writer wants to sell tomorrow, his thinking makes sense -- for him! -- but if he intends to hold, he should instead hope the stock falls and trades in enough volume for us to buy a lot of it. That's the only way a repurchase program can have any real benefit for a continuing shareholder.

在我们收到的这些信件中，有的仅仅是要求我们对外释放买回股份的讯息，以藉此拉抬公司股价(或阻止股价进一步下滑)，但其实一点也不关心公司的实质价值，我们认为若是这些人明天就打算出售股份，那么这样的想法还算合理，至少就他本身立场而言，然而要是他根本就没打算处分持股，则他应该祈祷公司的股价进一步下滑，好让我们有机会可以进场买回足够的股份，这是Berkshire唯一有可能藉由买回股份以增进股东权益的情况。

We will not repurchase shares unless we believe Berkshire stock is selling well below intrinsic value, conservatively calculated. Nor will we attempt to talk the stock up or down. (Neither publicly or privately have I ever told anyone to buy or sell Berkshire shares.) Instead we will give all shareholders -- and potential shareholders -- the same valuation-related information we would wish to have if our positions were reversed.

除非我们认为Berkshire的股价远低于其实质价值(经过保守的估算)，否则我们不会考虑买回自家股份，我们也不会发表任何意见来影响股价的高低走势，(不管是公开或私人的场合，我从来不会告诉任何人该买进或卖出Berkshire的股份)，相反的我们会设身处地的提供信息给所有的股东，也包含可能加入的潜在股东，藉此评估公司的价值。

Recently, when the A shares fell below $45,000, we considered making repurchases. We decided, however, to delay buying, if indeed we elect to do any, until shareholders have had the chance to review this report. If we do find that repurchases make sense, we will only rarely place bids on the New York Stock Exchange ("NYSE"). Instead, we will respond to offers made directly to us at or below the NYSE bid. If you wish to offer stock, have your broker call Mark Millard at 402-346-1400. When a trade occurs, the broker can either record it in the "third market" or on the NYSE. We will favor purchase of the B shares if they are selling at more than a 2% discount to the A. We will not engage in transactions involving fewer than 10 shares of A or 50 shares of B.

最近当A股的股价跌落到45,000美元以下时，我们一度曾考虑要开始买回股份，不过后来我们还是决定要等看看，至少等股东们有机会看到年度报告后再说，而如果我们真的要买进，我们将不会经由纽约证券交易所(NYSE)下单，我们只会接受那些直接找上门的卖单，因此如果你有意卖回股份，请要求你的经纪人直接打电话402-346-1400给Mark Millard，成交之后，经纪人可以第三市场或在NYSE申报，若是有B股愿意以A股2%以上的折价卖回我们也很乐意接受，但A股低于10股或B股低于50股的交易恕不受理。
Please be clear about one point: We will never make purchases with the intention of stemming a decline in Berkshire's price. Rather we will make them if and when we believe that they represent an attractive use of the Company's money. At best, repurchases are likely to have only a very minor effect on the future rate of gain in our stock's intrinsic value.
请大家特别注意一点，我们绝对不会为了要阻止Berkshire股价下滑而买回股份，我们之所以会这样做，完全是因为我们认为这样的资金运用对公司最有利，毕竟买回库藏股对提高公司股份未来的报酬率的影响实在是有限。

Shareholder-Designated Contributions股东指定捐赠计划

About 97.3% of all eligible shares participated in Berkshire's 1999 shareholder-designated contributions program, with contributions totaling $17.2 million. A full description of the program appears on pages 70 - 71.

大约有97.3%的有效股权参与1999年的股东指定捐赠计划，捐出的款项总计约1,720万美元，有关本计画详细的信息请参阅70-71页。

Cumulatively, over the 19 years of the program, Berkshire has made contributions of $147 million pursuant to the instructions of our shareholders. The rest of Berkshire's giving is done by our subsidiaries, which stick to the philanthropic patterns that prevailed before they were acquired (except that their former owners themselves take on the responsibility for their personal charities). In aggregate, our subsidiaries made contributions of $13.8 million in 1999, including in-kind donations of $2.5 million.

累计过去19年以来，Berkshire总计已依照股东意愿捐赠出高达1.47亿美元的款项，除了之外，Berkshire还透过旗下的子公司进行捐赠，而这些慈善活动都是早在他们被我们购并以前就行之有年的(先前的老板自行本身负责的个人捐赠计画之外除外)，总的来说，我们旗下的关系企业在1999年总计捐出1,380万美元，其中包含250万美元等值的物品。

To participate in future programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 2000, will be ineligible for the 2000 program. When you get the contributions form from us, return it promptly so that it does not get put aside or forgotten. Designations received after the due date will not be honored.

想要参加这项计画者，必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在2000年8月31日之前完成登记，才有权利参与2000年的捐赠计画，当你收到表格后，请立即填写后寄回，以免被丢在一旁给忘记了，逾期恕不受理。

The Annual Meeting年度股东大会

This year's Woodstock Weekend for Capitalists will follow a format slightly different from that of recent years. We need to make a change because the Aksarben Coliseum, which served us well the past three years, is gradually being closed down. Therefore, we are relocating to the Civic Auditorium (which is on Capitol Avenue between 18th and 19th, behind the Doubletree Hotel), the only other facility in Omaha offering the space we require.

今年资本家的伍斯达克周末将与往来的形态略有不同，由于前几年年会固定的举办地点-阿肯萨本体育馆即将关闭，所以今年我们将移师市立体育馆(位于首都街，双树饭店后方)，全奥玛哈地区大概只剩这里拥有足够我们使用的空间。
The Civic, however, is located in downtown Omaha, and we would create a parking and traffic nightmare if we were to meet there on a weekday. We will, therefore, convene on Saturday, April 29, with the doorsopening at 7 a.m., the movie beginning at 8:30 and the meeting itself commencing at 9:30. As in the past, we will run until 3:30 with a short break at noon for food, which will be available at the Civic's concession stands.
由于市立体育馆位于奥玛哈的市中心，可想而知要是我们于周末期间在那里举行股东会，铁定会造成停车与交通的梦魇，因此我们决定在4月29日星期六举行股东会，大门会在星期一早上七点开放，同时电影短片照例会在八点半播放，正式会议则从九点半开始，扣除中午短暂的休息时间，(市立体育馆外备有各类点心摊)，整个会议将一直进行到下午三点半。

An attachment to the proxy material that is enclosed with this report explains how you can obtain the credential you will need for admission to the meeting and other events. As for plane, hotel and car reservations, we have again signed up American Express (800-799-6634) to give you special help. In our normal fashion, we will run buses from the larger hotels to the meeting. After the meeting, the buses will make trips back to the hotels and to Nebraska Furniture Mart, Borsheim's and the airport. Even so, you are likely to find a car useful.
后面附有股东会开会投票的相关资料，向各位解释如何拿到入场所许的识别证，由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，美国运通 (电话800-799-6634)将会很高兴为您提供相关安排服务，如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，当然你可能会觉得如何有一辆车就更方便了。

We have scheduled the meeting in 2002 and 2003 on the customary first Saturday in May. In 2001, however, the Civic is already booked on that Saturday, so we will meet on April 28. The Civic should fit our needs well on any weekend, since there will then be more than ample parking in nearby lots and garages as well as on streets. We will also be able to greatly enlarge the space we give exhibitors. So, overcoming my normal commercial reticence, I will see that you have a wide display of Berkshire products at the Civic that you can purchase. As a benchmark, in 1999 shareholders bought 3,059 pounds of See's candy, $16,155 of World Book Products, 1,928 pairs of Dexter shoes, 895 sets of Quikut knives, 1,752 golf balls with the Berkshire Hathaway logo and 3,446 items of Berkshire apparel. I know you can do better.

今年(2001年)由于市立体育馆的预定时间已提早被订走，所以我们被迫将时间改成4月28日，但明(2002年)后年(2003年)的股东会我们仍将按照惯例在五月的第一个星期六举行，不论如何，市立体育馆应该能够满足我们的需要，因为周围拥有足够的停车位，同时提供的与会者空间将较以往宽敞许多，而我已成功克服了本身的商业坚持，我将保证各位在市立体育馆可以买到Berkshire一系列的产品，去年的记录是大家总共搬走了3,059磅的糖果、16,155美元的世界百科全书与相关出版品、1,928双Dexter鞋子、895组Quikut小刀以及1,725颗上面印有Berkshire Logo的高尔夫球和3,446件Berkshire的衣服与帽子，我相信今年的成绩一定会更好。

Last year, we also initiated the sale of at least eight fractions of Executive Jet aircraft. We will again have an array of models at the Omaha airport for your inspection on Saturday and Sunday. Ask an EJA representative at the Civic about viewing any of these planes.

去年我们开始试着推出EJA的专机所有权，今年的星期六与星期天，在奥玛哈机场，我们仍将展示一系列的机队供大家参观，请到市立体育馆向EJA的业务代表洽询参观的事宜。

Dairy Queen will also be on hand at the Civic and again will donate all proceeds to the Children's Miracle Network. Last year we sold 4,586 DillyR bars, fudge bars and vanilla/orange bars. Additionally, GEICO will have a booth that will be staffed by a number of our top counselors from around the country, all of them ready to supply you with auto insurance quotes. In most cases, GEICO will be able to offer you a special shareholder's discount. Bring the details of your existing insurance, and check out whether we can save you some money.

乳品皇后也将再度在市立体育馆现场摆设摊位，同时将所得全数捐给儿童希望联盟，去年我们总共卖出4,586根Dilly、雪花棒以及香草/橘子口味的巧克力棒，此外GEICO公司会再度派出各地区最优秀的业务员，在会场设立摊位，随时提供股东们汽车保单的报价，在大多数的情况下，GEICO都可以提供给你一个相当优惠的股东折扣，各位记得将自己现在的投保资料带来，看看是否能帮自己省下一笔钱。

Finally, Ajit Jain and his associates will be on hand to offer both no-commission annuities and a liability policy with jumbo limits of a size rarely available elsewhere. Talk to Ajit and learn how to protect yourself and your family against a $10 million judgment.

最后Ajit Jain跟他的同事也会在现场受理钜额无佣金年金与责任保险的服务，其最高上限是你在别的地方所找不到的，记得找Ajit聊聊如何帮你自己及家人规避1,000万美元以上的潜在风险。

NFM's newly remodeled complex, located on a 75-acre site on 72nd Street between Dodge and Pacific, is open from 10 a.m. to 9 p.m. on weekdays and 10 a.m. to 6 p.m. on Saturdays and Sundays. This operation offers an unrivaled breadth of merchandise -- furniture, electronics, appliances, carpets and computers -- all at can't-be-beat prices. In 1999 NFM did more than $300 million of business at its 72nd Street location, which in a metropolitan area of 675,000 is an absolute miracle. During the Thursday, April 27 to Monday, May 1 period, any shareholder presenting his or her meeting credential will receive a discount that is customarily given only to employees. We have offered this break to shareholders the last couple of years, and sales have been amazing. In last year's five-day "Berkshire Weekend," NFM's volume was $7.98 million, an increase of 26% from 1998 and 51% from 1997.

NFM位于道奇街与太平洋街，新改装的大卖场占地75英亩，营业时间平日从早上10点到下午9点，星期六及星期日则从早上10点到下午6点，提供各式各样的产品，举凡家具、电子产品、小家电、地毯以及计算机，全部都以超低的价格供大家选购，NFM 1999年单店的营业额超过三亿美元，以奥玛哈区区67.5万都会人口而言，实在称得上是个商业奇迹，在四月27日到五月1日股东会期间，股东只要持随股东开会通知单附赠的优惠券到NFM购买各类商品，都可获得员工价的优惠，自从这项优惠推出以来，销售业绩十分惊人，以去年股东会的五天期间，NFM的营业额高达798万美元，较前两年分别增加26%及51%。

Borsheim's -- the largest jewelry store in the country except for Tiffany's Manhattan store -- will have two shareholder-only events. The first will be a champagne and dessert party from 6 p.m.-10 p.m. on Friday, April 28. The second, the main gala, will be from 9 a.m. to 6 p.m. on Sunday, April 30. On that day, Charlie and I will be on hand to sign sales tickets. Shareholder prices will be available Thursday through Monday, so if you wish to avoid the largest crowds, which will form on Friday evening and Sunday, come at other times and identify yourself as a shareholder. On Saturday, we will be open until 7 p.m. Borsheim's operates on a gross margin that is fully twenty percentage points below that of its major rivals, so be prepared to be blown away by both our prices and selection.

波仙珠宝-全美单店营业额仅次于纽约曼哈顿蒂芬妮的珠宝店，在股东会期间将会有两场专为股东举办的展览会，第一场是在四月28日的鸡尾酒会，时间从下午6点到晚上10点，第二场主秀则在四月30日举行，从早上9点到下午6点，当天查理跟我也会出席，在现场接受大家凭发票索取签名，在星期四到星期一的股东会期间，波仙都将提供股东特惠价，所以如果你希望避开星期五晚上到星期天的拥挤人潮，你可以在其它的时间上门光顾，记得表明股东的身分，星期六我们会营业到晚上7点，波仙的营业毛利要比其它主要竞争对手要低20个百分点以上，所以请大家准备好席卷我们所有的商品吧!

In the mall outside of Borsheim's, we will again have Bob Hamman -- the best bridge player the game has ever seen -- available to play with our shareholders on Sunday. We will also have a few other experts playing at additional tables. In 1999, we had more demand than tables, but we will cure that problem this year.

照例桥牌界的传奇性人物Bob Hamman将会在星期天下午出席在波仙珠宝店外面大厅举办的一场桥牌大赛，除此之外还会有其它桥牌高手与股东们同乐，去年由于参加人数比预期多，造成牌桌不够，今年我们将改善这个问题。
Patrick Wolff, twice US chess champion, will again be in the mall playing blindfolded against all comers. He tells me that he has never tried to play more than four games simultaneously while handicapped this way but might try to bump that limit to five or six this year. If you're a chess fan, take Patrick on -- but be sure to check his blindfold before your first move.

Patrick Wolff-美国棋两度冠军，也会再度在会场蒙眼与所有挑战者对奕，他向我透露，他从来没有这样与四位以上的对手下棋，不过他今年会试着挑战同时对付五位甚至是六位对手，如果你也是个棋迷，记得到现场找Patrick挑战，但在下棋前记得要确定他的眼睛是否真的蒙住了。

Gorat's -- my favorite steakhouse -- will again be open exclusively for Berkshire shareholders on Sunday, April 30, and will be serving from 4 p.m. until about midnight. Please remember that you can't come to Gorat's on Sunday without a reservation. To make one, call 402-551-3733 on April 3 (but not before). If Sunday is sold out, try Gorat's on one of the other evenings you will be in town. I make a "quality check" of Gorat's about once a week and can report that their rare T-bone (with a double order of hash browns) is still unequaled throughout the country.
我个人最爱的牛排馆-Gorat's为了Berkshire股东年会破例在4月30日星期天开门营业，从下午四点开始营业，一直到午夜，请记得星期天事先若没有订位的人请勿前往以免向隅，要预约请在四月3日以后打电话(402-551-3733)，若订不到当天的位子，也可以试试其它晚上，每个星期我都会到Gorat做一次品质检查，而我可以向各位保证它的丁骨牛排加上双份的牛肉丸仍然是全美之最。

The usual baseball game will be held at Rosenblatt Stadium at 7 p.m. on Saturday night. This year the Omaha Golden Spikes will play the Iowa Cubs. Come early, because that's when the real action takes place. Those who attended last year saw your Chairman pitch to Ernie Banks.

按照往例棒球赛将于星期六晚上在Rosenblatt体育馆举行，今年奥玛哈金钉鞋队将对上爱荷华小熊队，记得早一点来，因为重头戏在一开始就会出现，去年有参加的人都知道，本人一开球就把球砸在Rrnie Banks的身上。
This encounter proved to be the titanic duel that the sports world had long awaited. After the first few pitches -- which were not my best, but when have I ever thrown my best? -- I fired a brushback at Ernie just to let him know who was in command. Ernie charged the mound, and I charged the plate. But a clash was avoided because we became exhausted before reaching each other.

这样的结果证明这是运动界期待已久的大对决，在前面几次不痛不痒的投球之后，(当然是因为我还没有使出绝招，只是不知道我的绝招何时才会出现!)，我狠狠地将球砸要Ernie的背上，好让他知道谁才是老大，Ernie立刻冲向投手丘，我也不甘示弱往本垒板前进，可惜的是在正面对决之前，两人早已气力放尽。

Ernie was dissatisfied with his performance last year and has been studying the game films all winter. As you may know, Ernie had 512 home runs in his career as a Cub. Now that he has spotted telltale weaknesses in my delivery, he expects to get #513 on April 29. I, however, have learned new ways to disguise my "flutterball." Come and watch this matchup.

Ernie对于他去年的表现感到非常不满意，所以整个冬天都在研究比赛时的录像带，大家可能知道，Ernie在小熊队时代拥有生涯512支全垒打的惊人记录，现在据可靠消息指出，他已经找到我投球的弱点，准备在4月29日当天挥出第513支全垒打，不过我也不是省油的灯，准备将我拿手的上飘球加以改良，记得到现场观赏这场精彩的大对决。

I should add that I have extracted a promise from Ernie that he will not hit a "come-backer" at me since I would never be able to duck in time to avoid it. My reflexes are like Woody Allen's, who said his were so slow that he was once hit by a car being pushed by two guys.

不过我也已经得到Ernie的保证，不会回敬我飞奔而来的滚地球，因为我实在是没有能力躲过，我的反应神经跟伍迪艾伦一样差，据说他曾经被一辆用两人手推的车子撞到。

Our proxy statement contains instructions about obtaining tickets to the game and also a large quantity of other information that should help you enjoy your visit in Omaha. Join us at the Capitalist Caper on Capitol Avenue

股东会资料将告诉大家如何取得球赛入场的门票，以及有关本次会议期间大量的旅游信息，股东会场见!

二零零零

Note: The following table appears in the printed Annual Report on the facing page of the Chairman's Letter and is referred to in that letter.附注：下表系董事长致股东信的参考资料，并载于年度报告的封面。

Berkshire's Corporate Performance vs. the S&P 500 Berkshire vs S&P 500指数的比较表Annual Percentage Change

Year
 
in Per-Share
　in Per-Share　Book Value of　Berkshire　　　　　　　　　    (1)　(1)　　　　
 
in S&P 500
　in S&P 500　with Dividends
　　　　　　Included
　　　　　　　(2)　(2)　　　　
 
Relative
　Relative　Results　　　　(1)-(2)
 

1965
 
23.8
 
10.0　10.
 
13.8　13.
 

1966
 
20.3
 
(11.7)
 
32.0　32.
 

1967
 
11.0
 
30.9　30.
 
(19.9)
 

1968
 
19.0
 
11.0　11.
 
8.0　8.
 

1969
 
16.2
 
(8.4)
 
24.6　24.
 

1970
 
12.0
 
3.9　3.
 
8.1　8.
 

1971
 
16.4
 
14.6　14.
 
1.8　1.
 

1972
 
21.7
 
18.9　18.
 
2.8　2.
 

1973
 
4.7
 
(14.8)
 
19.5　19.
 

1974
 
5.5
 
(26.4)
 
31.9　31.
 

1975
 
21.9
 
37.2　37.
 
(15.3)
 

1976
 
59.3
 
23.6　23.
 
35.7　35.
 

1977
 
31.9
 
(7.4)
 
39.3　39.
 

1978
 
24.0
 
6.4　6.
 
17.6　17.
 

1979
 
35.7
 
18.2　18.
 
17.5　17.
 

1980
 
19.3
 
32.3　32.
 
(13.0)
 

1981
 
31.4
 
(5.0)
 
36.4　36.
 

1982
 
40.0
 
21.4　21.
 
18.6　18.
 

1983
 
32.3
 
22.4　22.
 
9.9　9.
 

1984
 
13.6
 
6.1　6.
 
7.5　7.
 

1985
 
48.2
 
31.6　31.
 
16.6　16.
 

1986
 
26.1
 
18.6　18.
 
7.5　7.
 

1987
 
19.5
 
5.1　5.
 
14.4　14.
 

1988
 
20.1
 
16.6　16.
 
3.5　3.
 

1989
 
44.4
 
31.7　31.
 
12.7　12.
 

1990
 
7.4
 
(3.1)
 
10.5　10.
 

1991
 
39.6
 
30.5　30.
 
9.1　9.
 

1992
 
20.3
 
7.6　7.
 
12.7　12.
 

1993
 
14.3
 
10.1　10.
 
4.2　4.
 

1994
 
13.9
 
1.3　1.
 
12.6　12.
 

1995
 
43.1
 
37.6　37.
 
5.5　5.
 

1996
 
31.8
 
23.0　23.
 
8.8　8.
 

1997
 
34.1
 
33.4　33.
 
.7　.
 

1998
 
48.3
 
28.6　.
 
19.7　19.
 

1999
 
.5
 
21.0　21.
 
(20.5)
 

2000
 
6.5
 
(9.1)
 
15.6　15.
 

Average Annual Gain - 1965-2000
 
23.6%
 
11.8%　11.8
 
11.8%　11.8
 

Overall Gain - 1964-2000
 
207,821%
 
5,383%　5,383
 
202,438%　202,438
 

Notes: Data are for calendar years with these exceptions: 1965 and 1966, year ended 9/30; 1967, 15 months ended 12/31.
资料以历年制为准，除了1965年及1966年系至9/30;1967年则为至12/31的15个月。

Starting in 1979, accounting rules required insurance companies to value the equity securities they hold at market rather than at the lower of cost or market, which was previously the requirement. In this table, Berkshire's results through 1978 have been restated to conform to the changed rules. In all other respects, the results are calculated using the numbers originally reported.
从1979年开始，会计原则规定保险公司持有的股权投资必须采用市价法取代原先的成本与市价孰低法，在本表中，1978年以前的资料已依照该原则重新调整，除此之外，其它的数字皆依照原则的结果未作更动。

The S&P 500 numbers are pre-tax whereas the Berkshire numbers are after-tax. If a corporation such as Berkshire were simply to have owned the S&P 500 and accrued the appropriate taxes, its results would have lagged the S&P 500 in years when that index showed a positive return, but would have exceeded the S&P in years when the index showed a negative return. Over the years, the tax costs would have caused the aggregate lag to be substantial.
S&P 500指数系以税前为准，而Berkshire的数字则属于税后，如果Berkshire直接投资S&P 500并依此课征相关税负，则当S&P 500的报酬为正时，Berkshire的表现将不如S&P 500，相反地若S&P 500的报酬为负时，Berkshire的表现将优于S&P 500，就长期而言，Berkshire额外承担的税负成本将使得中间的差异日益扩大。

致Berkshire所有股东:

Our gain in net worth during 2000 was $3.96 billion, which increased the per-share book value of both our Class A and Class B stock by 6.5%. Over the last 36 years (that is, since present management took over) per-share book value has grown from $19 to $40,442, a gain of 23.6% compounded annually.*

本公司2000年的净值增加了39.6亿美元，每股A股或B股的帐面净值成长了6.5%，累计过去36年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的40,442美元，年复合成长率约为23.6%*。

All figures used in this report apply to Berhire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30th that of the A.

在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股则拥有A级普通股三十分之一的权利。

Overall, we had a decent year, our book-value gain having outpaced the performance of the S&P 500. And, though this judgment is necessarily subjective, we believe Berkshire’s gain in per-share intrinsic value moderately exceeded its gain in book value. (Intrinsic value, as well as other key investment and accounting terms and concepts, are explained in our Owner’s Manual on pages 59-66. Intrinsic value is discussed on page 64.)

总的来说，Berkshire去年的表现还算不错，不管是每股净值或价值的表现都超越S&P500指数，虽然这样的说法略显主观，但我们认为Berkshire每股实质价值的成长甚至超过帐面价值的成长，(不管是投资学或是会计学，实质价值都是相当关键的一个名词，有关实质价值详细的说明，请参阅股东手册)。

Furthermore, we completed two significant acquisitions that we negotiated in 1999 and initiated six more. All told, these purchases have cost us about $8 billion, with 97% of that amount paid in cash and 3% in stock. The eight businesses we’ve acquired have aggregate sales of about $13 billion and employ 58,000 people. Still, we incurred no debt in making these purchases, and our shares outstanding have increased only 1/3 of 1%. Better yet, we remain awash in liquid assets and are both eager and ready for even larger acquisitions.

去年我们一口气完成八件购并案，其中有两件从1999年就开始谈，这些案子的金额总计高达80亿美元，所有资金完全依靠自有资金支应，没有举债半毛钱，其中97%是以现金支付，其余3%则用股票，所以流通在外股份仅增加0.3个百分点而已，这八家企业的年营业额合计高达130亿美元，雇用员工58,000名，更棒的是目前我们手上的现金依然满满，随时准备再买下更大的公司。

I will detail our purchases in the next section of the report. But I will tell you now that we have embraced the 21st century by entering such cutting-edge industries as brick, carpet, insulation and paint. Try to control your excitement.

不要太着急，后面我还会再详细跟各位报告合并案的内容，在这里，我要向各位报告，展望21世纪，我们将大举进军砖块、地毯、隔热品与油漆等实体的尖端产业。

On the minus side, policyholder growth at GEICO slowed to a halt as the year progressed. It has become much more expensive to obtain new business. I told you last year that we would get our money’s worth from stepped-up advertising at GEICO in 2000, but I was wrong. We’ll examine the reasons later in the report.

另一方面，GEICO的保户成长速度出现停滞的现象，取得新保单的成本越来越高，去年我曾跟各位打包票说我们所投入大笔广告经费保证值回票价，事实证明我的判断是错误的，在报告的后段我们还会再仔细检讨原因。

Another negative - which has persisted for several years - is that we see our equity portfolio as only mildly attractive. We own stocks of some excellent businesses, but most of our holdings are fully priced and are unlikely to deliver more than moderate returns in the future. We’re not alone in facing this problem: The long-term prospect for equities in general is far from exciting.

另外还有一项几年来一直存在的负面消息，那就是目前我们的股票投资组合的价位还是没有太大的吸引力，我们确实拥有一些本质不错的股票，但这些公司的股价大多已合理反应其价值，所以在未来很难再有爆发性的投资报酬，这绝非单一现象，目前整体股市的长期前景并不像一般人想的那么乐观。

Finally, there is the negative that recurs annually: Charlie Munger, Berkshire’s Vice Chairman and my partner, and I are a year older than when we last reported to you. Mitigating this adverse development is the indisputable fact that the age of your top managers is increasing at a considerably lower rate - percentage-wise - than is the case at almost all other major corporations. Better yet, this differential will widen in the future.

最后还有一项每年都会发生的坏消息，那就是查理曼格-Berkshire的副董事长兼主要合伙人以及我本人，相较于去年又都老了一岁，所幸比起其它美国大企业来说，我们的主要经理人老化的速度可以说要慢得多(年度/年龄)，而且这种差异以后还会越来越大。

Charlie and I continue to aim at increasing Berkshire’s per-share value at a rate that, over time, will modestly exceed the gain from owning the S&P 500. As the table on the facing page shows, a small annual advantage in our favor can, if sustained, produce an anything-but-small long-term advantage. To reach our goal we will need to add a few good businesses to Berkshire’s stable each year, have the businesses we own generally gain in value, and avoid any material increase in our outstanding shares. We are confident about meeting the last two objectives; the first will require some luck.

就长期而言，查理跟我还是一样把Berkshire每股实质价值成长的速度锁定在稍微超过S&P500指数的目标上，如同封面上那张表所显示的，虽然只是每年几个百分点的差异，但只要能够持之以恒，久而久之也能产生不少的差距，当然每年为了达到这个目标，我们都必须固定再为Berkshire增添几家好公司，并让原先就已经拥有这些好公司的价值保持成长，同时还要避免流通在外的股数继续大幅膨胀，个人觉得要做到后两点没有太大问题，但第一点则真的要碰运气。

It’s appropriate here to thank two groups that made my job both easy and fun last year - just as they do every year. First, our operating managers continue to run their businesses in splendid fashion, which allows me to spend my time allocating capital rather than supervising them. (I wouldn’t be good at that anyway.)

在这里要特别感谢两组团队让我去年的工作一如往年般的轻松愉快，首先，我们旗下事业的经理人依然继续坚守岗位表现杰出，完全不让我操心，(当然这本来就不是我的专长)，使我可以将大部分的心思摆在如何运用资金之上。

Our managers are a very special breed. At most large companies, the truly talented divisional managers seldom have the job they really want. Instead they yearn to become CEOs, either at their present employer or elsewhere. Indeed, if they stay put, they and their colleagues are likely to feel they have failed.

我们旗下的经理人是非常特殊的一群，在大部分的公司，真正有能力的部门经理很少乐在本身的工作，他们通常渴望能够尽快晋升成为总裁，不论是在现在的公司或跳槽到别家公司都可以，而要是他们不积极争取，他自己本身以及其同事，反而会认定他为懦夫。

At Berkshire, our all-stars have exactly the jobs they want, ones that they hope and expect to keep throughout their business lifetimes. They therefore concentrate solely on maximizing the long-term value of the businesses that they "own" and love. If the businesses succeed, they have succeeded. And they stick with us: In our last 36 years, Berkshire has never had a manager of a significant subsidiary voluntarily leave to join another business.

在Berkshire，我们所有的明星经理人都乐在本身的工作，一份他们想要而且期望能够终生拥有的事业，也因此他们可以完全专注在如何把这份他们拥有且热爱事业的长期价值极大化，如果这份事业成功了，也就等于他们本身成功了，他们一直与我们同在，在Berkshire过去36年来，还没有听说过任何一位旗下事业经理人自动跳槽离开Berkshire的。

The other group to which I owe enormous thanks is the home-office staff. After the eight acquisitions more than doubled our worldwide workforce to about 112,000, Charlie and I went soft last year and added one more person at headquarters. (Charlie, bless him, never lets me forget Ben Franklin’s advice: "A small leak can sink a great ship.") Now we have 13.8 people.

还有另外一群伙伴，我要深深致上谢意，那就是Berkshire企业总部的员工，在新购并的八个事业加入之后，我们全球的员工总数增加到112,000人，为此查理跟我的态度稍微软化，答应让总部人员编制增加一名成为13.8人(查理这小子，总是提醒我富兰克林的名言，为山九仞，功亏一篑)。

This tiny band works miracles. In 2000 it handled all of the details connected with our eight acquisitions, processed extensive regulatory and tax filings (our tax return covers 4,896 pages), smoothly produced an annual meeting to which 25,000 tickets were issued, and accurately dispensed checks to 3,660 charities designated by our shareholders. In addition, the group dealt with all the routine tasks served up by a company with a revenue run-rate of $40 billion and more than 300,000 owners. And, to add to all of this, the other 12.8 are a delight to be around.

这一小群菁英再次创造了奇迹，2000年他们一口气处理了八件购并案大大小小各项事宜、应付例行法令行政规范与税务申报(光是申报书就厚达4,896页)、让总计25,000名股东出席的股东会圆满落幕并正确无误地发出股东指定捐赠的支票给3,660家慈善机构，除此之外，对于一家集团营业额高达400亿美金、股东超过30万人的大公司，其日常行政事务有多少可想而知，说到这里，有这12.8人在身边感觉真好。

I should pay to have my job.我实在是不应该领薪水，而要付薪水。

Acquisitions of 2000 2000年的购并案

Our acquisition technique at Berkshire is simplicity itself: We answer the phone. I’m also glad to report that it rings a bit more often now, because owners and/or managers increasingly wish to join their companies with Berkshire. Our acquisition criteria are set forth on page 23, and the number to call is 402-346-1400.

在Berkshire，我们的购并策略极其简单-那就是静待电话铃响，可喜的是，现在电话好象有点应接不暇，原因在于有越来越多的公司及其经理人慕名而来想要加入Berkshire的行列，关于我们购并公司的标准请参见年报23页，或请电402-346-1400。

Let me tell you a bit about the businesses we have purchased during the past 14 months, starting with the two transactions that were initiated in 1999, but closed in 2000. (This list excludes some smaller purchases that were made by the managers of our subsidiaries and that, in most cases, will be integrated into their operations.)

接下来让我详细向各位报告过去十四个月以来，我们到底买进了哪些公司，先说说两件从1999年就开始谈，并于2000年敲定的个案，(本表并未包含旗下子公司零零星星所买下规模较小的个案，通常它们都会被统一纳入个别子公司的营运报告中)。

I described the first purchase - 76% of MidAmerican Energy - in last year’s report. Because of regulatory constraints on our voting privileges, we perform only a "one-line" consolidation of MidAmerican’s earnings and equity in our financial statements. If we instead fully consolidated the company’s figures, our revenues in 2000 would have been $5 billion greater than we reported, though net income would remain the same.

第一个案子是中美能源76%的股权，在去年的报告中，我就曾提到，由于行政法规限制我们对该公司的控制权，所以我们只能透过长期投资权益法，将该公司的盈余与权益纳入母公司的财务报表之上，事实上要是能够将该公司的财务数字充分反应在母公司的帐上，则Berkshire的营收将至少增加50亿美元以上，当然损益数字并不会有任何变化。

On November 23, 1999, I received a one-page fax from Bruce Cort that appended a Washington Post article describing an aborted buyout of CORT Business Services. Despite his name, Bruce has no connection with CORT. Rather, he is an airplane broker who had sold Berkshire a jet in 1986 and who, before the fax, had not been in touch with me for about ten years.
1999年11月23号我收到由Bruce Cort署名的传真，后附一篇刊登在华盛顿邮报有关CORT商业服务公司标购失败的新闻，事实上，除了名字巧合之外，Bruce Cort与CORT公司完全没有关系，这位先生是一位中古飞机中介商，巧合的是，他本人还曾经在1986年卖过一架飞机给Berkshire，在这张传真之前，我已经有十年没有跟他有过任何接触。

I knew nothing about CORT, but I immediately printed out its SEC filings and liked what I saw. That same day I told Bruce I had a possible interest and asked him to arrange a meeting with Paul Arnold, CORT’s CEO. Paul and I got together on November 29, and I knew at once that we had the right ingredients for a purchase: a fine though unglamorous business, an outstanding manager, and a price (going by that on the failed deal) that made sense.
在此之前，我对CORT公司一无所知，但我马上调出该公司向证管会申报的文件，一看之下大喜过望，就在当天，我向Bruce表示我对该公司很有兴趣，并请他立即帮我安排与该公司总裁Paul Arnold会面，不久后Paul跟我在11月29号碰面，当下我就知道我们很有可能会成交，那是一家朴实无华的好公司，同时价格也合理(当然多多少少受到先前流标的影响)。

Operating out of 117 showrooms, CORT is the national leader in "rent-to-rent" furniture, primarily used in offices but also by temporary occupants of apartments. This business, it should be noted, has no similarity to "rent-to-own" operations, which usually involve the sale of home furnishings and electronics to people having limited income and poor credit.

拥有117个外部展示点，CORT是全美办公室家具出租(也有临时公寓使用者)的领导品牌，必须说明一点，这个行业与分期付款租赁并不相同，后者通常将目标锁定在推销电子产品及家具，给经济能力有限且信用记录不佳客户者。

We quickly purchased CORT for Wesco, our 80%-owned subsidiary, paying about $386 million in cash. You will find more details about CORT’s operations in Wesco’s 1999 and 2000 annual reports. Both Charlie and I enjoy working with Paul, and CORT looks like a good bet to beat our original expectations.
我们很快地透过持有80%股权的子公司Wesco名义以3.86亿美元的现金买下CORT，大家可以在Wesco 1999年及2000年的年报中找到更多有关CORT的讯息，查理跟我都很喜欢与Paul一起共事，而CORT的表现更超乎我们的预期，我们算是押对宝了。

Early last year, Ron Ferguson of General Re put me in contact with Bob Berry, whose family had owned U.S. Liability for 49 years. This insurer, along with two sister companies, is a medium-sized, highly-respected writer of unusual risks - "excess and surplus lines" in insurance jargon. After Bob and I got in touch, we agreed by phone on a half-stock, half-cash deal.
去年初，通用再保的董事长Ron Ferguson帮我联络上Bob Berry，其家族49年来一直拥有美国责任险公司，这家保险公司，加上其它两家姊妹公司都是属于中小型、声誉卓著的特殊险保险公司，套句保险业界的行话，那是好又多的业务，而Bob在与我接触之后，也同意以一半股票，一半现金的方式进行交易。

In recent years, Tom Nerney has managed the operation for the Berry family and has achieved a rare combination of excellent growth and unusual profitability. Tom is a powerhouse in other ways as well. In addition to having four adopted children (two from Russia), he has an extended family: the Philadelphia Belles, a young-teen girls basketball team that Tom coaches. The team had a 62-4 record last year and finished second in the AAU national tournament.
近几年来，都是由Tom Nerney为Berry家族经营这家公司，不论是成长速度或是获利能力的表现都相当突出，Tom本身更是精力充沛，不但亲自认养四名小孩(其中有两个来自俄国)，他本身还担任教练带领一支来自费城的青少女篮球队，这只球队去年拥有62胜4败的辉煌战绩，并在AAU全国锦标赛中夺得亚军。

Few property-casualty companies are outstanding businesses. We have far more than our share, and U.S. Liability adds luster to the collection.
好的产物意外险公司本来就不多，但我们却拥有不少，这超过我们应得之份，美国责任险公司的加入，无异为我们更增添辉煌。

Ben Bridge Jeweler was another purchase we made by phone, prior to any face-to-face meeting between me and the management. Ed Bridge, who with his cousin, Jon, manages this 65-store West Coast retailer, is a friend of Barnett Helzberg, from whom we bought Helzberg Diamonds in 1995. Upon learning that the Bridge family proposed to sell its company, Barnett gave Berkshire a strong recommendation. Ed then called and explained his business to me, also sending some figures, and we made a deal, again half for cash and half for stock.
Ben Bridge珠宝公司是另外一件靠电话成交的个案，在这之前我们双方连面对面谈话都没有，Ed Bridge是Barnett Helzberg的好朋友，1995年我们向Barnett买下贺兹柏格珠宝，Ed跟他的侄子Jon共同经营这家位于西岸拥有65家分店的珠宝公司，在听到Bridge有意出售公司之后， Barnett立刻强烈建议Berkshire买进，于是Ed打电话向我说明公司营运的状况，同时送了一些报表资料过来，然后双方就此成交，这次一样是一半现金，一半股票。

Ed and Jon are fourth generation owner-managers of a business started 89 years ago in Seattle. Both the business and the family - including Herb and Bob, the fathers of Jon and Ed - enjoy extraordinary reputations. Same-store sales have increased by 9%, 11%, 13%, 10%, 12%, 21% and 7% over the past seven years, a truly remarkable record.
早从89年前，该公司在西雅图创立之后，到现在Ed与Jon已经是第四代了，经营成员还包括Herb及Bob，他们分别是Jon与Ed的父亲，在当地享有盛誉，过去七年来，该公司的营业额分别成长了9%、11%、13%、10%、12%、21%及7%，这个记录真是惊人。

It was vital to the family that the company operate in the future as in the past. No one wanted another jewelry chain to come in and decimate the organization with ideas about synergy and cost saving (which, though they would never work, were certain to be tried). I told Ed and Jon that they would be in charge, and they knew I could be believed: After all, it’s obvious that your Chairman would be a disaster at actually running a store or selling jewelry (though there are members of his family who have earned black belts as purchasers).
对于该家族而言，公司的运作能否一如往常，至关重要，没有人愿意坐视其它珠宝连锁商趁虚而入，或是因为提出综效及降低成本等馊主意让公司营运走下坡(虽然大家可以预知这一点效果都不会有，但还是一定会被要求试看看)，然而我却明确告知仍由Ed及Jon负全责，他们也知道我说话算话，毕竟本人还有自知之明，要我负责经营一家珠宝专卖店，铁定会是一场灾难，虽然我的家人买珠宝买到可以获颁黑带的荣衔。

In their typically classy way, the Bridges allocated a substantial portion of the proceeds from their sale to the hundreds of co-workers who had helped the company achieve its success. We’re proud to be associated with both the family and the company.
令人敬佩的是，Bridges家族将出售事业的所得，与协助公司成功的数百位员工一起分享，我们很荣幸可以与这样的家族及公司建立关系。

In July we acquired Justin Industries, the leading maker of Western boots - including the Justin, Tony Lama, Nocona, and Chippewa brands - and the premier producer of brick in Texas and five neighboring states.
同年七月，我们买下西式靴子的领导厂商Justin企业，旗下品牌包含Justin、Tony Lama、Nocona及Chippewa，同时他们也是德州以及邻近五州砖块的主要制造商。

Here again, our acquisition involved serendipity. On May 4th, I received a fax from Mark Jones, a stranger to me, proposing that Berkshire join a group to acquire an unnamed company. I faxed him back, explaining that with rare exceptions we don’t invest with others, but would happily pay him a commission if he sent details and we later made a purchase. He replied that the "mystery company" was Justin. I then went to Fort Worth to meet John Roach, chairman of the company and John Justin, who had built the business and was its major shareholder. Soon after, we bought Justin for $570 million in cash.
再一次我们的购并之旅充满了惊奇，5月4号我收到一位署名Mark Jones的传真，我根本就不认识这个人，他提议Berkshire可以参与购并一家不知名的公司，我回传真给他，表示除非是特例，否则我们很少跟别人一起参与投资，不过要是他肯把资料送给我们参考，事后若购并成功，我们愿意支付他一笔介绍费，他回复说这家神秘公司叫做Justin，于是我便到Fort Worth与该公司董事长-John Roach及创办人兼大股东John Justin会面，不久之后，我们顺利以5.7亿美元的现金买下Justin公司。

John Justin loved Justin Industries but had been forced to retire because of severe health problems (which sadly led to his death in late February). John was a class act - as a citizen, businessman and human being. Fortunately, he had groomed two outstanding managers, Harrold Melton at Acme and Randy Watson at Justin Boot, each of whom runs his company autonomously.
John非常热爱Justin企业，但却由于健康问题不得不自公司退休，(后来他更不幸在隔年二月去世)，John是位优秀的市民、企业家以及人士，所幸他还网罗了两位杰出的经理人-Acme砖块的Harrold以及Justin靴子的Randy，两人各自独立经营这两家事业。

Acme, the larger of the two operations, produces more than one billion bricks per year at its 22 plants, about 11.7% of the industry’s national output. The brick business, however, is necessarily regional, and in its territory Acme enjoys unquestioned leadership. When Texans are asked to name a brand of brick, 75% respond Acme, compared to 16% for the runner-up. (Before our purchase, I couldn’t have named a brand of brick. Could you have?) This brand recognition is not only due to Acme’s product quality, but also reflects many decades of extraordinary community service by both the company and John
Justin.

Acme的规模稍大，22座工厂每年生产出超过10亿个砖块，大约占全美砖块总产出的11.7%，砖块产业有其区域性限制，在其经营的区域， Acme享有独霸的地位，当德州佬被问到知名砖块的品牌时，75%的人会想到Acme，远远超越第二位的16%，(很遗憾在买下这家公司之前，我竟连一个砖块品牌都不知道，不知道各位能不能? )这种品牌的认同度不仅仅归功于Acme的产品品质，更深深地反映出该公司几十年来深耕地方服务的成果。

I can’t resist pointing out that Berkshire - whose top management has long been mired in the 19th century - is now one of the very few authentic "clicks-and-bricks" businesses around. We went into 2000 with GEICO doing significant business on the Internet, and then we added Acme. You can bet this move by Berkshire is making them sweat in Silicon Valley.
而我也忍不住要指出Berkshire的经营阶层还老顽固地深陷在19世纪当中，如今又多了一项道地实在的产业，另一方面进入2000年，我们旗下的GEICO也经由网络做生意，但是后来我们又增添了Acme，我敢保证Berkshire的这项举动将使硅谷的那帮人汗流浃背。

In June, Bob Shaw, CEO of Shaw Industries, the world’s largest carpet manufacturer, came to see me with his partner, Julian Saul, and the CEO of a second company with which Shaw was mulling a merger. The potential partner, however, faced huge asbestos liabilities from past activities, and any deal depended on these being eliminated through insurance.
六月，Bob Shaw-Shaw企业的总裁-该公司是全世界最大的地毯制造商，带着其伙伴-Julian Saul(同行还有一位正与Shaw企业洽谈合并的公司总裁)，一起来见我，后者因为石绵案面临潜在庞大的诉讼赔偿，而合并交易能否成功要看这些或有负债能否透过保险来解决。

The executives visiting me wanted Berkshire to provide a policy that would pay all future asbestos costs. I explained that though we could write an exceptionally large policy - far larger than any other insurer would ever think of offering - we would never issue a policy that lacked a cap.
两位主管拜访我的目的是希望Berkshire能够提供他们一张保单以协助他们解决合并后所有未来潜在的石绵赔偿成本，我向他们解释到虽然我们可以签发的保单金额比任何其它保险业者都来得大，但却不可能发出金额没有上限的保单。

Bob and Julian decided that if we didn’t want to bet the ranch on the extent of the acquiree’s liability, neither did they. So their deal died. But my interest in Shaw was sparked, and a few months later Charlie and I met with Bob to work out a purchase by Berkshire. A key feature of the deal was that both Bob and Julian were to continue owning at least 5% of Shaw. This leaves us associated with the best in the business as shown by Bob and Julian’s record: Each built a large, successful carpet business before joining forces in 1998.

Bob跟Julian当场决定要是连我们都不敢下重注，赌被购并者潜在的风险，那么他们也不干，双方的交易最后因此告吹，不过在此同时我对Shaw企业却产生浓厚的兴趣，几个月后查理跟我与Bob会面敲定Berkshire买下该公司的细节，其中有一条相当重要的条款，那就是Bob跟Julian依然可以继续持有Shaw企业最少5%的股权，此举让我们可以与这个业界最优秀的经理人一起共事，如同Bob跟Julian过去几年来辉煌的战绩，各自在1998年加入我们之前皆已在地毯界建立了规模庞大的成功事业。

Shaw has annual sales of about $4 billion, and we own 87.3% of the company. Leaving aside our insurance operation, Shaw is by far our largest business. Now, if people walk all over us, we won’t mind.
Shaw的年营业额高达40亿美元，而我们则持有该公司87.3%的股权，除了既有的保险事业营运之外，Shaw成为我们目前最大的事业体，现在如果现在有人要从我们身上踩过去，我们一点都不会介意。

In July, Bob Mundheim, a director of Benjamin Moore Paint, called to ask if Berkshire might be interested in acquiring it. I knew Bob from Salomon, where he was general counsel during some difficult times, and held him in very high regard. So my answer was "Tell me more."
七月，Bob Mundheim-Benjamin油漆公司的董事打电话给我，问到Berkshire是否有兴趣买下该公司，我是在所罗门时代认识Bob的，当时他在该公司最困难的时候提供了许多宝贵的意见，我本人对他相当的敬重，所以我立即表示：「请继续说。」

In late August, Charlie and I met with Richard Roob and Yvan Dupuy, past and present CEOs of Benjamin Moore. We liked them; we liked the business; and we made a $1 billion cash offer on the spot. In October, their board approved the transaction, and we
completed it in December. Benjamin Moore has been making paint for 117 years and has thousands of independent dealers that are a vital asset to its business. Make sure you specify our product for your next paint job.
八月底，查理跟我与Richard Roob及Yvan Dupuy碰面，两人分别是Benjamin油漆公司前后任的总裁，我们与他们一见如故，也很欣赏这家公司，当场我们就开出10亿现金的条件，到了十月份，该公司董事会通过这项交易案，而我们则在十二月完成内部手续，Benjamin公司生产油漆已有117年的历史，并拥有数千家的独立经销商，这也是他们最珍贵的资产，记得下次买油漆时指名该公司的产品。

Finally, in late December, we agreed to buy Johns Manville Corp. for about $1.8 billion. This company’s incredible odyssey over the last few decades - too multifaceted to be chronicled here - was shaped by its long history as a manufacturer of asbestos products. The much-publicized health problems that affected many people exposed to asbestos led to JM’s declaring bankruptcy in 1982.
最后在十二月底，我们同意以18亿美元买下Johns Manville公司(简称JM)，这家公司过去几十年来创造了令人难以置信的传奇-族烦不及备载，其中又以生产石绵产品最为著名，当时因为石绵引发许多人致癌的健康问题而导致该公司在1982年宣布申请破产。

Subsequently, the bankruptcy court established a trust for victims, the major asset of which was a controlling interest in JM. The trust, which sensibly wanted to diversify its assets, agreed last June to sell the business to an LBO buyer. In the end, though, the LBO group was unable to obtain financing.
之后破产法庭为受害人成立了一笔信托基金，其中最主要的资产就是JM的多数股权，而这笔信托基金为了要分散其资产配置，于是在去年六月同意将该公司卖给一位融资购并业者，只是后来由于该业者无法顺利取得融资而使得交易告吹。

Consequently, the deal was called off on Friday, December 8th. The following Monday, Charlie and I called Bob Felise, chairman of the trust, and made an all-cash offer with no financing contingencies. The next day the trustees voted tentatively to accept our offer, and a week later we signed a contract.

之后到了12月8号星期五交易正式宣布取消，隔周，查理跟我打电话给Bob Felise-该信托基金的董事会主席，提出全部现金不必等候融资的条件，隔天信托基金临时表决接受我们的提案，并于一个星期后正式签订契约。

JM is the nation’s leading producer of commercial and industrial insulation and also has major positions in roofing systems and a variety of engineered products. The company’s sales exceed $2 billion and the business has earned good, if cyclical, returns. Jerry Henry, JM’s CEO, had announced his retirement plans a year ago, but I’m happy to report that Charlie and I have convinced him to stick around.
JM是全美商业用与工业用隔热材料的领导品牌，同时在屋顶装设与其它工业产品也占有相当大的市场，该公司的年营业额超过20亿美金，同时也享有不错的获利水准，(当然该公司还是有景气循环)，该公司总裁Jerry Henry本来已宣布一年后计画要退休，但在这里我很高兴向各位报告，查理跟我已经成功说服他继续留下来。

Two economic factors probably contributed to the rush of acquisition activity we experienced last year. First, many managers and owners foresaw near-term slowdowns in their businesses - and, in fact, we purchased several companies whose earnings will almost certainly decline this year from peaks they reached in 1999 or 2000. The declines make no difference to us, given that we expect all of our businesses to now and then have ups and downs. (Only in the sales presentations of investment banks do earnings move forever upward.) We don’t care about the bumps; what matters are the overall results. But the decisions of other people are sometimes affected by the near-term outlook, which can both spur sellers and temper the enthusiasm of purchasers who might otherwise compete with us.
去年购并案之所以会蜂拥而现，主要有两个原因，首先，许多经理人跟老板都预视到自己公司的产业即将走下坡，事实上在我们这次买下来的公司当中，确实就有好几家今年的盈余将会较1999年或2000年减少，不过对于这点我们并不介意，因为每个产业都会有景气循环，(只有在券商做的投资演示文稿中，盈余才会无止尽地成长)，我们不在乎这短期的波折，真正重要的是长期的结果，当然有些人会比较看重短期的成败，而这反而能增加卖方出售的意愿或降低其它潜在买家的竞争意愿。

A second factor that helped us in 2000 was that the market for junk bonds dried up as the year progressed. In the two preceding years, junk bond purchasers had relaxed their standards, buying the obligations of ever-weaker issuers at inappropriate prices. The effects of this laxity were felt last year in a ballooning of defaults. In this environment, "financial" buyers of businesses - those who wish to buy using only a sliver of equity - became unable to borrow all they thought they needed. What they could still borrow, moreover, came at a high price. Consequently, LBO operators became less aggressive in their bidding when businesses came up for sale last year. Because we analyze purchases on an all-equity basis, our evaluations did not change, which means we became considerably more competitive.
第二个能让我们在2000年这么顺的原因，是去年垃圾债券市场状况日益低迷，由于前两年垃圾债券投资人逐渐降低他们的标准，以不合理的价格买进许多体质不佳的公司债，浮滥的结果终究导致大量违约的出现，在这种状况下，习惯靠融资买下企业的投机者-就是习惯印股票换公司的那群人-便很难再借到足够的钱，而且就算能够借到，其成本也不便宜，也因此当去年有公司对外求售时，融资购并者(LBO)的活动力便锐减，而因为我们习惯以买下整家公司股权的方式投资，所以我们的评估方式没有太大的改变，这使得我们的竞争力大幅提高。

Aside from the economic factors that benefited us, we now enjoy a major and growing advantage in making acquisitions in that we are often the buyer of choice for the seller. That fact, of course, doesn’t assure a deal - sellers have to like our price, and we have to like their business and management - but it does help.
除了这两项有利于我们的外部因素之外，现在在进行购并时，我们自己本身也拥有另一项优势，那就是Berkshire通常都是卖方期望指定的买方，虽然这无法保证交易一定能谈成，一方面还要看卖方是否能接受我们的报价，一方面也要看我们喜不喜欢这家公司以及其经理阶层，但无可否认确实对交易的进行大有帮助。

We find it meaningful when an owner cares about whom he sells to. We like to do business with someone who loves his company, not just the money that a sale will bring him (though we certainly understand why he likes that as well). When this emotional attachment exists, it signals that important qualities will likely be found within the business: honest accounting, pride of product, respect for customers, and a loyal group of associates having a strong sense of direction. The reverse is apt to be true, also. When an owner auctions off his business, exhibiting a total lack of interest in what follows, you will frequently find that it has been dressed up for sale, particularly when the seller is a "financial owner." And if owners behave with little regard for their business and its people, their conduct will often contaminate attitudes and practices throughout the company.
另外我们还发现卖方是否在意公司将来的归属其实相当重要，我们喜爱与那些钟爱公司，而不只是斤斤计较出售公司能够得到多少钱的人往来，(当然我们也明瞭没有人会不爱钱)，当我们意识到有这样的情节存在时，通常代表了这家公司拥有相当重要的特质：诚实的帐务、产品的自信、客户的尊重以及一群专心一致的忠实员工，反之亦然，当一家公司的老板只一昧地想要卖一个好价钱，但却一点都不关心公司卖掉后的下场，那么你马上就会了解为什么他会急着想要卖公司的原因，尤其当他是靠借钱买下这家时，而当一家公司的老板表现出一点都不在乎公司死活时，公司的上上下下一定也会感染到这种气氛，使得其态度与行事作风跟着转变。

When a business masterpiece has been created by a lifetime - or several lifetimes - of unstinting care and exceptional talent, it should be important to the owner what corporation is entrusted to carry on its history. Charlie and I believe Berkshire provides an almost unique home. We take our obligations to the people who created a business very seriously, and Berkshire’s ownership structure ensures that we can fulfill our promises. When we tell John Justin that his business will remain headquartered in Fort Worth, or assure the Bridge family that its operation will not be merged with another jeweler, these sellers can take those promises to the bank.

要知道一家经典企业由一个企业家终其一生，有时甚至是好几代，以无微不至的用心与优异的才能建立时，对于老板来说，接手的人是否承续过去辉煌的历史是相当重要的一件事，关于这点，查理跟我相当有信心，Berkshire绝对可以提供这些企业一个美满的归宿，我们相当重视对于这些企业创办人所作的保证，而Berkshire的控股结构绝对可以确保我们的承诺顺利落实，当我们告知John Justin他的企业总部仍将留在Fort Worth或保证Bridge家族他们的公司绝不会与其它珠宝公司合并时，我们可是绝对说到做到。

How much better it is for the "painter" of a business Rembrandt to personally select its permanent home than to have a trust officer or uninterested heirs auction it off. Throughout the years we have had great experiences with those who recognize that truth and apply it to their business creations. We’ll leave the auctions to others.
就像是林布兰画作一样珍贵的公司，与其让信托人或不肖的子孙把它拍卖掉，还不如由画家本身选择其最后的归宿，这几年来我们与有这样认知的人士有过非常多愉快的经验，并让这些感觉一直延续到这些企业上，至于拍卖这玩意儿，就留给别人去用吧。

The Economics of Property/Casualty Insurance产物意外险的经营

Our main business - though we have others of great importance - is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company. The keydeterminants are: (1) the amount of float that the business generates; (2) its cost; and (3) most critical of all, the long-term outlook for both of these factors.
我们最主要的本业就是保险，当然其它事业也相当重要，想要了解Berkshire，你就必须知道如何去评估一家保险公司，其中主要的关键因素有(1)这个行业所能产生的浮存金数量(2)以及它的成本(3)最重要的是这些因素长期的展望。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. This pleasant activity typically carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.
首先浮存金是一项我们持有但却不属于我们的资金，在保险公司的营运中，浮存金产生的原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以因应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本若远高于货币市场利率时，它就像是一颗极酸的柠檬。

A caution is appropriate here: Because loss costs must be estimated, insurers have enormous latitude in figuring their underwriting results, and that makes it very difficult for investors to calculate a company's true cost of float. Errors of estimation, usually innocent but sometimes not, can be huge. The consequences of these miscalculations flow directly into earnings. An experienced observer can usually detect large-scale errors in reserving, but the general public can typically do no more than accept what's presented, and at times I have been amazed by the numbers that big-name auditors have implicitly blessed. Both the income statements and balance sheets of insurers can be minefields.
有一点必须特别注意的是，因为损失成本必须仰赖估算，所以保险业者对于承保结算的成绩有相当大伸缩的空间，连带使得投资人很难正确地衡量一家保险公司真正的浮存金成本，估计错误，通常是无心，但有时却是故意，与真实的结果往往会有很大的差距，而这种结果直接影响到公司的损益表上，有经验的行家通常可以经由公司的准备提列情形发现重大的错误，但对于一般投资大众来说，除了被迫接受财务报表的数字之外，别无他法，而我个人常常被这些经过各大会计师事务所背书的财务报告所吓到，许多保险公司的损益表与资产负债表上布满了许多地雷。

At Berkshire, we strive to be both consistent and conservative in our reserving. But we will make mistakes. And we warn you that there is nothing symmetrical about surprises in the insurance business: They almost always are unpleasant.
在Berkshire我们对于损失准备提列尽量采取保守且一贯的做法，但我们仍不免会犯错，不过我还是要警告大家，保险业本来就会发生很多意外，而且通常都不会是什么好消息。

The table that follows shows (at intervals) the float generated by the various segments of Berkshire’s insurance operations since we entered the business 34 years ago upon acquiring National Indemnity Company (whose traditional lines are included in the segment "Other Primary"). For the table we have calculated our float - which we generate in large amounts relative to our premium volume - by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting insurance-related receivables, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Don’t panic, there won’t be a quiz.)

下表中所显示的数字是，Berkshire自取得国家产险公司经营权，进入保险事业34年以来所贡献的浮存金，(其中传统业务包含在其它主险项下)，在这张计算浮存金的表中，(相对于收到的保费收入，我们持有的浮存金部位算是相当大的)我们将所有的损失准备、损失费用调整准备、再保预先收取的资金与未赚取保费加总后，再扣除应付佣金、预付购并成本、预付税负以及取得再保业务的相关递延费用后，所得出浮存金的数额，不要紧张，这不是什么考试!

Yearend Float (in $ millions)
 

Year
 
GEICO
 
General Re
 
OtherReinsurance
 
OtherPrimary
 
Total
 

1967
 
　
 
　
 
　
 
20
 
20
 

1977
 
　
 
　
 
40
 
131
 
171
 

1987
 
　
 
　
 
701
 
807
 
1,508
 

1997
 
2,917
 
　
 
4,014
 
455
 
7,386
 

1998
 
3,125
 
14,909
 
4,305
 
415
 
22,754
 

1999
 
3,444
 
15,166
 
6,285
 
403
 
25,298
 

2000
 
3,943
 
15,525
 
7,805
 
598
 
27,871
 

We’re pleased by the growth in our float during 2000 but not happy with its cost. Over the years, our cost of float has been very close to zero, with the underwriting profits realized in most years offsetting the occasional terrible year such as 1984, when our cost was a staggering 19%. In 2000, however, we had an underwriting loss of $1.6 billion, which gave us a float cost of 6%. Absent a mega-catastrophe, we expect our float cost to fall in 2001 - perhaps substantially - in large part because of corrections in pricing at General Re that should increasingly be felt as the year progresses. On a smaller scale, GEICO may experience the same improving trend.
对于2000年的浮存金成长我们感到相当欣慰，但却对其成本不甚满意，一直以来，我们浮存金成本通常都维持在接近于零的低水准，有时好的时候，还能享有可观的承保利益，来弥补像1984年那样糟糕的年度，当年的资金成本高达19%，不过2000年我们的承保损失却高达16亿美金，这使得我们的浮存金成本飙高至6%，除非再发生什么重大的灾难，否则我们预期2001年的浮存金成本将会大幅下降，主要的原因是General RE已经逐渐开始反映调整价格，至于GEICO虽然规模较小，但也应该会有同样的情形。

There are two factors affecting our cost of float that are very rare at other insurers but that now loom large at Berkshire. First, a few insurers that are currently experiencing large losses have offloaded a significant portion of these on us in a manner that penalizes our current earnings but gives us float we can use for many years to come. After the loss that we incur in the first year of the policy, there are no further costs attached to this business.
相较于其它保险同业，Berkshire现在有两项相当罕见但却越来越重要的因素影响到其浮存金的成本，第一是部份同业目前正面临相当严重的承保损失，迫使我们必须跟着分摊，而影响到我们短期的盈余表现，但另一方面也让我们在未来几年有更多的浮存金可以运用，而在保单第一年的损失发生过后，以后年度将不会再有这方面的成本。

When these policies are properly priced, we welcome the pain-today, gain-tomorrow effects they have. In 1999, $400 million of our underwriting loss (about 27.8% of the total) came from business of this kind and in 2000 the figure was $482 million (34.4% of our loss). We have no way of predicting how much similar business we will write in the future, but what we do get will typically be in large chunks. Because these transactions can materially distort our figures, we will tell you about them as they occur.

只要保单的价格合理，我们乐于接受这类先苦后甘的结果，在1999年所有的承保损失当中，有4亿美元(约占总损失的27.8%)是来自于这类的业务，至于2000年则有4.82亿美元(约占总损失的34.4%)，我们无法预测以后每年能够接到多少这类的业务，不过只要有案件金额通常都不小，而也由于这类的交易往往会严重影响到我们的损益数字，所以只要发生我一定会向各位报告。

Other reinsurers have little taste for this insurance. They simply can’
stomach what huge underwriting losses do to their reported results, even though these losses are produced by policies whose overall economics are certain to be favorable. You should be careful, therefore, in comparing our underwriting results with those of other insurers.
其它再保业者对这类业务往往没有多大兴趣，因为他们根本就无法接受其财务报表突然出现重大的损失，即便可以确定这类业务长期的结果都相当不错，所以各位在拿我们的数字跟其它同业做比较时，要特别注意这一点。

An even more significant item in our numbers - which, again, you won’t find much of elsewhere - arises from transactions in which we assume past losses of a company that wants to put its troubles behind it. To illustrate, the XYZ insurance company might have last year bought a policy obligating us to pay the first $1 billion of losses and loss adjustment expenses from events that happened in, say, 1995 and earlier years. These contracts can be very large, though we always require a cap on our exposure. We entered into a number of such transactions in 2000 and expect to close several more in 2001.
另外还有一个影响更大的因素，也是你在别的地方找不到的，那就是有些公司想要把过去发生但却不确定的损失解决掉，简单的说，有家XYZ保险公司在去年向我们买了一张保单，约定我们必须支付头10亿美元的损失再加上以前年度，比如说1995年后续的损失调整费用，这些合约的金额有可能相当大，当然不论如何，我们还是会定一个上限，我们在2000年签了几件这类的合约，到了2001年也会再签下几件。

Under GAAP accounting, this "retroactive" insurance neither benefits nor penalizes our current earnings. Instead, we set up an asset called "deferred charges applicable to assumed reinsurance," in an amount reflecting the difference between the premium we receive and the (higher) losses we expect to pay (for which reserves are immediately established). We then amortize this asset by making annual charges to earnings that create equivalent underwriting losses. You will find the amount of the loss that we incur from these transactions in both our quarterly and annual management discussion. By their nature, these losses will continue for many years, often stretching into decades. As an offset, though, we have the use of float - lots of it.
依据一般公认会计原则，这类追溯型的保险对于当年度的盈余不会有任何的影响，反倒是我们的报表因此增加了一项叫做"再保递延支出"的会计科目，将收到的保费收入与估计将支付的理赔损失(当然在此之前已先提列准备)的差额计入，之后我们再将分年摊销在这个科目项下的金额列为承保的损失，大家可以在季报与年报的经营说明中看到相关的信息，依其特性，这类的损失会持续发生很多年，甚至达几十年，当然相对的我们可以得到大笔浮存金的运用权利。
Clearly, float carrying an annual cost of this kind is not as desirable as float we generate from policies that are expected to produce an underwriting profit (of which we have plenty). Nevertheless, this retroactive insurance should be decent business for us.
很明显的，这类浮存金所负担的成本不像其它一般业务能够为我们带来承保利益 (这种好康的我们可是有很多)，尽管如此，追溯保险对我们来说，仍然算是不错的买卖。

The net of all this is that a) I expect our cost of float to be very attractive in the future but b) rarely to return to a "no-cost" mode because of the annual charge that retroactive reinsurance will lay on us. Also - obviously - the ultimate benefits that we derive from float will depend not only on its cost but, fully as important, how effectively we deploy it.

综合以上因素最后得到的结果是a)我预期以后浮存金的成本可以压得非常低， b)但由于必须负担前述提到的追溯再保险每年提列的费用，因此可能没有办法像以前一样完全不用成本。当然很明显的，这些浮存金对我们到底是好是坏，除了当初取得的成本外，我们运用这笔资金的效率高低也同等重要。

Our retroactive business is almost single-handedly the work of Ajit Jain, whose praises I sing annually. It is impossible to overstate how valuable Ajit is to Berkshire. Don’t worry about my health; worry about his.
而我们追溯再保险业务几乎完全由Ajit Jain一手包办，每年照例我都会给他褒奖一番，实在是很难去估计Ajit在Berkshire所代表的价值，大家除了关心我的健康之外，更应该关心他的健康。

Last year, Ajit brought home a $2.4 billion reinsurance premium, perhaps the largest in history, from a policy that retroactively covers a major U.K. company. Subsequently, he wrote a large policy protecting the Texas Rangers from the possibility that Alex Rodriguez will become permanently disabled. As sports fans know, "A-Rod" was signed for $252 million, a record, and we think that our policy probably also set a record for disability insurance. We cover many other sports figures as well.
去年，Ajit光靠着一家英国的主要保险公司的追溯再保险，就替我们收到24亿美元的再保费收入，这有可能创下业界的历史新高，之后，他又接了美国大联盟德州游骑兵队一张钜额保单，投保强打者Alex Rodrriguez可能终身不遂的风险，喜爱棒球的人士都知道，A-Rod曾以2.52亿美元的天价签约，我想我们的这张保单应该又创下了失能险的保额记录，此外我们也受理许多运动明星的保险。
In another example of his versatility, Ajit last fall negotiated a very interesting deal with Grab.com, an Internet company whose goal was to attract millions of people to its site and there to extract information from them that would be useful to marketers. To lure these people, Grab.com held out the possibility of a $1 billion prize (having a $170 million present value) and we insured its payment. A message on the site explained that the chance of anyone winning the prize was low, and indeed no one won. But the possibility of a win was far from nil.
此外Ajit也展现他多才多艺的天份，去年秋天他与一家网络公司Grab.com协商订出一张相当有趣的保单，该公司成立的目标是希望吸引数百万的网友到其网站，并从其中撷取有用的资料给行销公司，而为了要吸引网友上门，Grab.com推出了一个10亿美元的大奖(约等于1.7亿美元的现值)，万一真的有人中奖时，由我们保证支付这笔款项，当然网站上也强调得到这笔奖金的机会微乎其微，事后证明没有人得到，但在当时中奖的机率并非全无可能。
Writing such a policy, we receive a modest premium, face the possibility of a huge loss, and get good odds. Very few insurers like that equation. And they’re unable to cure their unhappiness by reinsurance. Because each policy has unusual - and sometimes unique - characteristics, insurers can’t lay off the occasional shock loss through their standard reinsurance arrangements. Therefore, any insurance CEO doing a piece of business like this must run the small, but real, risk of a horrible quarterly earnings number, one that he would not enjoy explaining to his board or shareholders. Charlie and I, however, like any proposition that makes compelling mathematical sense, regardless of its effect on reported earnings.
签下这类的保单，我们将可以预先收到为数可观的保费，但同样也必须面临潜在的重大损失，所幸机率上对我们有利，并不是所有的保险业者都爱玩这种游戏，因为他们没办法利用再保险来克服这样的不愉快感，由于每一张保单都不寻常，甚至有时拥有其独特性，保险业者通常无法透过一般的再保安排来规避这类突发的潜在重大损失，也因此几乎所有的保险公司总裁在经营事业时都必须面临这种机率不大但却又不容忽视可能深深影响单一季盈余数字的风险，这简直是有如芒刺在背，我想没有任何一位经理人会喜欢向董事会或股东会解释这中间的为难，不过对于查理跟我本人而言，只要算盘拨起来合理，我们根本就不在乎其对帐面损益数字可能的影响。

At General Re, the news has turned considerably better: Ron Ferguson, along with Joe Brandon, Tad Montross, and a talented supporting cast took many actions during 2000 to bring that company’s profitability back to past standards. Though our pricing is not fully corrected, we have significantly repriced business that was severely unprofitable or dropped it altogether. If there’s no mega-catastrophe in 2001, General Re’s float cost should fall materially.
至于General RE，情况变得比以前好多了，Ron Ferguson加上Joe Brandon与Tad Montross以及一班能干的团队在2000年实行了许多做法，让公司的获利回到过去的水平，虽然我们的订价还无法完全修正过来，但对于获利情况最差的那部份业务，我们已大幅调整价格或干脆舍弃掉，如果2001年没有再发生什么重大的天灾人祸，General RE的浮存金成本可望大幅下降。
The last couple of years haven’t been any fun for Ron and his crew. But they have stepped up to tough decisions, and Charlie and I applaud them for these. General Re has several important and enduring business advantages. Better yet, it has managers who will make the most of them.
过去几年，对于Ron跟他的团队来说并不好过，但所幸他们已经做出最困难的抉择，查理跟我仍然给予其肯定的掌声，General RE拥有许多重要且稳定的竞争优势，更棒的是，我相信其经理人一定能够充分发挥运用这些优势。
In aggregate, our smaller insurance operations produced an excellent underwriting profit in 2000 while generating significant float - just as they have done for more than a decade. If these companies were a single and separate operation, people would consider it an outstanding insurer. Because the companies instead reside in an enterprise as large as Berkshire, the world may not appreciate their accomplishments - but I sure do. Last year I thanked Rod Eldred, John Kizer, Don Towle and Don Wurster, and I again do so. In addition, we now also owe thanks to Tom Nerney at U.S. Liability and Michael Stearns, the new head of Cypress.
总的来说，其它规模较小的保险业务在2000年产生了可观的承保利益，同时一如过去十年来持续贡献大量的浮存金，如果把这些公司视为单一独立的企业，那么他们绝对可以称得上是一家经营绩效优异的保险公司，而因为这些事业隐身在Berkshire如此庞大的事业体中，外界无法理解他们的努力与成就，但至少我个人能够深深地体会地，去年我感谢过Rod、John、Don等人，今年则还要再加上美国责任险的Tom以及Cypress的新任主管Michael。

You may notice that Brad Kinstler, who was CEO of Cypress and whose praises I’ve sung in the past, is no longer in the list above. That’s because we needed a new manager at Fechheimer Bros., our Cincinnati-based uniform company, and called on Brad. We seldom move Berkshire managers from one enterprise to another, but maybe we should try it more often: Brad is hitting home runs in his new job, just as he always did at Cypress.
大家可能会发现过去我常称赞的Brad- Cypress公司的前任总裁，已不在上述的名单当中，那是因为我们位于辛辛那堤的制服公司-费区海默需要一位新的经理人，所以我们特地拜托Brad，在Berkshire我们很少调动经理人，不过现在看来我们应该要再多试一试，因为Brad在新职务上表现相当优异，就如同他原来在Cypress的表现一般。

GEICO (1-800-847-7536 or GEICO.com)盖可保险 (1-800-847-7536 or GEICO.com)

We show below the usual table detailing GEICO’s growth. Last year I enthusiastically told you that we would step up our expenditures on advertising in 2000 and that the added dollars were the best investment that GEICO could make. I was wrong: The extra money we spent did not produce a commensurate increase in inquiries. Additionally, the percentage of inquiries that we converted into sales fell for the first time in many years. These negative developments combined to produce a sharp increase in our per-policy acquisition cost.
下表是用来显示盖可保险成长幅度的一张表，去年我很兴奋地向各位报告我们2000年在广告行销的大笔投入，并强调每一分钱都节节实实花在刀口上，事实证明我错了，我们额外投入的经费并没有为我们相对增加询问的电话，而且平均每通询问电话最后成交的比率几年来也首度下滑，这些不利的发展使得我们平均每张保单的取得成本大幅增加。

Years
 
 
 
New AutoPolicies(1)
 
Auto PoliciesIn-Force(1)
 

1993
 
346,882
 
2,011,055
 

1994
 
384,217
 
2,147,549
 

1995
 
443,539
 
2,310,037
 

1996
 
592,300
 
2,543,699
 

1997
 
868,430
 
2,949,439
 

1998
 
1,249,875
 
3,562,644
 

1999
 
1,648,095
 
4,328,900
 

2000
 
1,472,853
 
4,696,842
 

　(1) "Voluntary" only; excludes assigned risks and the like.

Agonizing over errors is a mistake. But acknowledging and analyzing them can be useful, though that practice is rare in corporate boardrooms. There, Charlie and I have almost never witnessed a candid post-mortem of a failed decision, particularly one involving an acquisition. A notable exception to this never-look-back approach is that of The Washington Post Company, which unfailingly and objectively reviews its acquisitions three years after they are made. Elsewhere, triumphs are trumpeted, but dumb decisions either get no follow-up or are rationalized.
事后悔恨犯下的错误固然不对，但勇敢承认并虚心检讨原因却大有助益，虽然这种景象在美国企业的内部高层会议上并不常见，查理跟我本人几乎很少看到有人会诚心诚意的检讨一项错误的决策，尤其是跟购并案有关，唯一著名的例外是华盛顿邮报认真客观地检讨三年前的一项失败的购并案，除此之外，就只看到大家对成功的案子歌功颂德，至于愚蠢的决定则只字未提，置之不理。

The financial consequences of these boners are regularly dumped into massive restructuring charges or write-offs that are casually waved off as "nonrecurring." Managements just love these. Indeed, in recent years it has seemed that no earnings statement is complete without them. The origins of these charges, though, are never explored. When it comes to corporate blunders, CEOs invoke the concept of the Virgin Birth.
这类错误投资最后的下场往往是在财报上一次打销提列非常损失，专业经理人最喜欢这样搞，这使得近年来这类"不常"发生的科目，反而成为一般公司的损益表上的常客，至于它发生的原因则没有人愿意花时间去深究，CEO通常将它们归类为无性生殖。

To get back to our examination of GEICO: There are at least four factors that could account for the increased costs we experienced in obtaining new business last year, and all probably contributed in some manner.
回到GEICO的检讨，去年取得成本大幅增加主要归咎于四个原因，且全部都有一个共通点。

First, in our advertising we have pushed "frequency" very hard, and we probably overstepped in certain media. We’ve always known that increasing the number of messages through any medium would eventually produce diminishing returns. The third ad in an hour on a given cable channel is simply not going to be as effective as the first.
首先，我们的广告频率过高，在某些媒体的曝光实在是过度频繁，大家知道大量且密集透过媒体传递讯息的效果绝对是递减的，同样在有线电视，一个小时内连续第三波的广告，其效果绝对比不上第一波。
Second, we may have already picked much of the low-hanging fruit. Clearly, the willingness to do business with a direct marketer of insurance varies widely among individuals: Indeed, some percentage of Americans - particularly older ones - are reluctant to make direct purchases of any kind. Over the years, however, this reluctance will ebb. A new generation with new habits will find the savings from direct purchase of their auto insurance too compelling to ignore.
其次，所有的软柿子可能都已经被我们给捡光了，很明显的，虽然愿意经由直效行销参与投保的客户群分布甚广，但不论如何，老一辈的人就是不愿透过这种管道投保，当然时间站在我们这一边，这种排斥感终究会消退，新一代乐于接受新事物的年轻人，很快就会发现透过直接投保可以为他们省下大笔的保费。

Another factor that surely decreased the conversion of inquiries into sales was stricter underwriting by GEICO. Both the frequency and severity of losses increased during the year, and rates in certain areas became inadequate, in some cases substantially so. In these instances, we necessarily tightened our underwriting standards. This tightening, as well as the many rate increases we put in during the year, made our offerings less attractive to some prospects.
另外一个肯定会降低成交率的因素是GEICO的投保资格审核趋严，去年不管是事故发生的频率与严重性都提高，使得某些地区的费率变得不合理，在这种情况下，我们必须提高承保的标准，同时提高费率，这两项变动使得我们相对于其它对手的竞争力略微下降。

A high percentage of callers, it should be emphasized, can still save money by insuring with us. Understandably, however, some prospects will switch to save $200 per year but will not switch to save $50. Therefore, rate increases that bring our prices closer to those of our competitors will hurt our acceptance rate, even when we continue to offer the best deal.
当然我必须强调，对于大部分打电话上门投保的顾客来说，还他们是可以省下一大笔钱，不过比起过去可以省下200美元，现在只能省50美元，其吸引力确实大不如前，所以费率提升使得我们的价格与其它同业相近，绝对会影响我们在客户间受欢迎的程度。

Finally, the competitive picture changed in at least one important respect: State Farm - by far the largest personal auto insurer, with about 19% of the market - has been very slow to raise prices. Its costs, however, are clearly increasing right along with those of the rest of the industry. Consequently, State Farm had an underwriting loss last year from auto insurance (including rebates to policyholders) of 18% of premiums, compared to 4% at GEICO. Our loss produced a float cost for us of 6.1%, an unsatisfactory result. (Indeed, at GEICO we expect float, over time, to be free.) But we estimate that State Farm’s float cost in 2000 was about 23%. The willingness of the largest player in the industry to tolerate such a cost makes the economics difficult for other participants.
最后，产险业的竞争版图产生了一项重大变化，那就是目前排名第一市占率约19%的State Farm，对于费率调整的反应速度相当缓慢，虽然他的成本的增加幅度肯定与其它同业不相上下，State Farm去年的承保损失率(包含回馈保户的退佣)高达18%，相较之下GEICO则只有4%，即便如此我们浮存金的成本也高达6.1%，(相对于我们预估长期成本为零，这种结果当然不令人满意)，我们估算State Farm 2000年的浮存金成本将高达23%，而当市场上最大的玩家，竟然愿意忍受如此高的经营成本，其它业者的处境就可想而知了。

That does not take away from the fact that State Farm is one of America’s greatest business stories. I’ve urged that the company be studied at business schools because it has achieved fabulous success while following a path that in many ways defies the dogma of those institutions. Studying counter-evidence is a highly useful activity, though not one always greeted with enthusiasm at citadels of learning.
不过这仍然无损于State Farm身为美国企业最伟大的传奇故事之一，我不断建议商学院应该把这家成功的企业列为课堂的教材，因为他的成功过程有许多是挑战学术单位的教条，研究相反的例证是相当有用的方法，虽然并不是所有人都喜欢在学术殿堂中热烈地把它拿来讨论。

State Farm was launched in 1922, by a 45-year-old, semi-retired Illinois farmer, to compete with long-established insurers - haughty institutions in New York, Philadelphia and Hartford - that possessed overwhelming advantages in capital, reputation, and distribution. Because State Farm is a mutual company, its board members and managers could not be owners, and it had no access to capital markets during its years of fast growth. Similarly, the business never had the stock options or lavish salaries that many people think vital if an American enterprise is to attract able managers and thrive.
State Farm成立于1922年，由伊利诺州一位45岁半退休的农夫所创立，当初他是为了与纽约、费城与Hartfold长期垄断的傲慢保险业者对抗才成立State Farm的，相对于前者拥有资本、信誉与通路等强大优势，由于State Farm是合作社性质，所以他的董事与经理人不得拥有股份，因此在早期高成长时期，无法得到资本市场的资金挹注，同时他们也没有一般公司认为吸引优秀经理人赖以生存绝对必要的认股选择权或高额薪水。

In the end, however, State Farm eclipsed all its competitors. In fact, by 1999 the company had amassed a tangible net worth exceeding that of all but four American businesses. If you want to read how this happened, get a copy of The Farmer from Merna.
然后到最后，State Farm竟击败所有竞争对手，事实上截至1999年，该公司的净值仅次于其它四家美国大企业，如果你想知道他们是如何办到的，想办法弄一本"来自Merna的农夫"来看看。

Despite State Farm’s strengths, however, GEICO has much the better business model, one that embodies significantly lower operating costs. And, when a company is selling a product with commodity-like economic characteristics, being the low-cost producer is all-important. This enduring competitive advantage of GEICO - one it possessed in 1951 when, as a 20-year-old student, I first became enamored with its stock - is the reason that over time it will inevitably increase its market share significantly while simultaneously achieving excellent profits. Our growth will be slow, however, if State Farm elects to continue bearing the underwriting losses that it is now suffering.
尽管面对State Farm的强大优势，GEICO依然拥有更好的商业模式，其营运成本相当低，这个特点在一个已经一般商品化的产业中尤其重要，GEICO这项竞争优势早上1951年，我还是一个21岁的学生时便是如此，当时我便因此为这家公司着迷，并认为随着时间的过去，他的市场占有率以及获利绝对能够稳定提升，当然如果State Farm决定继续忍受现在这样的承保损失的话，GEICO的成长势必将受到影响而减缓。

Tony Nicely, GEICO’s CEO, remains an owner’s dream. Everything he does makes sense. He never engages in wishful thinking or otherwise distorts reality, as so many managers do when the unexpected happens. As 2000 unfolded, Tony cut back on advertising that was not cost-effective, and he will continue to do that in 2001 if cutbacks are called for (though we will always maintain a massive media presence). Tony has also aggressively filed for price increases where we need them. He looks at the loss reports every day and is never behind the curve. To steal a line from a competitor, we are in good hands with Tony.
Tom Nicely-GEICO公司的CEO，依然还是老板们梦寐以求的经营长才，他所作的一切都切中要点，当意外发生时，他从来不会像其它经理人一样将时间浪费在妄想逃避或扭曲事实上，2000年开始，他大举砍掉不具成本效益的广告，展望2001年若有必要他仍将继续维持相同的做法，(虽然我们依然会维持大量的媒体曝光率)，若有需要，Tony绝对会大幅的调涨保费价格，他每天都盯着报表，永远不落于人后，想要从竞争对手那边扳回一城，我们绝对是Tony的好帮手。
I’ve told you about our profit-sharing arrangement at GEICO that targets only two variables - growth in policies and the underwriting results of seasoned business. Despite the headwinds of 2000, we still had a performance that produced an 8.8% profit-sharing payment, amounting to $40.7 million.
过去我曾经向各位说明，GEICO的利润分享计画主要系于两项因素1)是保费收入增长的比率；2)是续约保户的承保获利表现，尽管面对2000年的产业逆境，我们仍然发出了约当8.8%年薪的奖金，金额约为4,070万美元。

GEICO will be a huge part of Berkshire’s future. Because of its rock-bottom operating costs, it offers a great many Americans the cheapest way to purchase a high-ticket product that they must buy. The company then couples this bargain with service that consistently ranks high in independent surveys. That’s a combination inevitably producing growth and profitability.
GEICO在Berkshire的未来仍将扮演相当重要的角色，由于其彻头彻尾的低营运成本，它能够提供美国大众最低消费最高品质的产品，这家公司所提供的服务在各项消费者调查报告中一直名列前茅，这样的组合将可确保公司继续维持成长与获利的态势。
In just the last few years, far more drivers have learned to associate the GEICO brand with saving money on their insurance. We will pound that theme relentlessly until all Americans are aware of the value that we offer.
近几年来，越来越多的驾驶人知道与GEICO投保可以省下大笔的保费，我们仍将继续大力宣传直到所有美国人都知道我们的价值所在为止。

Investments股票投资
Below we present our common stock investments. Those that had a market value of more than $1 billion at the end of 2000 are itemized.
下表是Berkshire 2000年市价超过十亿美元以上的股票投资。12/31/00(dollars in millions)

Shares
 
Company
 
Cost
 
Market
 

151,610,700
 
American Express Company
 
$1,470
 
$ 8,329
 

200,000,000
 
The Coca-Cola Company
 
1,299
 
12,188
 

96,000,000
 
The Gillette Company
 
600
 
3,468
 

1,727,765
 
The Washington Post Company
 
11
 
1,066
 

55,071,380
 
Wells Fargo & Company
 
319
 
3,067
 

 
 
Other
 
　　　　6,703
 
　　　　9,501
 

　
 
Total Common Stocks
 
$10,402
 
$37,619
 

In 2000, we sold nearly all of our Freddie Mac and Fannie Mae shares, established 15% positions in several mid-sized companies, bought the high-yield bonds of a few issuers (very few - the category is not labeled junk without reason) and added to our holdings of high-grade, mortgage-backed securities. There are no "bargains" among our current holdings: We’re content with what we own but far from excited by it.
在2000年我们几乎将所有Freddie Mac与Fannie Mae的持股出清，同时利用15%的资金买进几家中型的公司以及一些高收益的债券(少部份-并不属于垃圾债券等级)，另外加码一些优先顺位的抵押证券，目前我们的投资组合并没有太大的潜在利益，虽然对于这样的投资组合我们感到满意，但却没有什么可以令人期待的地方。

Many people assume that marketable securities are Berkshire’s first choice when allocating capital, but that’s not true: Ever since we first published our economic principles in 1983, we have consistently stated that we would rather purchase businesses than stocks. (See number 4 on page 60.) One reason for that preference is personal, in that I love working with our managers. They are high-grade, talented and loyal. And, frankly, I find their business behavior to be more rational and owner-oriented than that prevailing at many public companies.
许多人以为股票是Berkshire投资时的第一选择，这样的想法不太正确，自从1983年我们开始公开揭露经营准则后，我们就一再公开表示我们偏爱买下整家公司而非部份股权，其中一部份是私人理由，那就是我喜欢与经理人一起共事，他们是一群高水平、有才干同时忠诚度高的伙伴，而我必须坦言他们的行为远较一般上市大公司的经理人还要理性，还要以公司股东的利益为重。
But there’s also a powerful financial reason behind the preference, and that has to do with taxes. The tax code makes Berkshire’s owning 80% or more of a business far more profitable for us, proportionately, than our owning a smaller share. When a company we own all of earns $1 million after tax, the entire amount inures to our benefit. If the $1 million is upstreamed to Berkshire, we owe no tax on the dividend. And, if the earnings are retained and we were to sell the subsidiary - not likely at Berkshire! - for $1 million more than we paid for it, we would owe no capital gains tax. That’s because our "tax cost" upon sale would include both what we paid for the business and all earnings it subsequently retained.
当然除此之外还有一个重大的财务理由，而且是跟税负有关，根据税法规定，持有80%以上的股权比起拥有少数股权对Berkshire要有利的多，当一家完全由我们持有的公司税后赚了100万美元，这笔钱将全数纳到我们的口袋里， Berkshire不会因为收到股利而被课任何的税，而且如果我们将盈余全数保留，之后再把这家子公司出售-当然Berkshire是不可能做这样的事，那么就算之后的卖价超过100万美元，我们也不必为此支付任何的资本利得税，原因在于我们在税法上的成本包含我们先前买下该公司的成本以及以后年度保留的所有盈余。
Contrast that situation to what happens when we own an investment in a marketable security. There, if we own a 10% stake in a business earning $10 million after tax, our $1 million share of the earnings is subject to additional state and federal taxes of (1) about $140,000 if it is distributed to us (our tax rate on most dividends is 14%); or (2) no less than $350,000 if the $1 million is retained and subsequently captured by us in the form of a capital gain (on which our tax rate is usually about 35%, though it sometimes approaches 40%). We may defer paying the $350,000 by not immediately realizing our gain, but eventually we must pay the tax. In effect, the government is our "partner" twice when we own part of a business through a stock investment, but only once when we own at least 80%.
这与我们一般单纯持有上市公司的股票有相当大的不同，如果我们持有一家一年赚1,000万美元公司10%的股权时，则我们依比例分得的100万美元将必须负担额外的州政府与联邦所得税，那包含(1)大约14万美元股利税负(我们大部分的股利税率为14%)或(2)最少35万美元的资本利得税，如果这100万没有分配，而事后我们又把该公司处分(我们适用的税率约在35%左右，但有时也可能接近40%)，当然只要我们不处分该项投资，这笔税负将可以一直递延夏去，但最终我们还是必须支付这笔税金，事实上政府可以说是分享我们利润的主要合伙人之一，只是投资股票她要分两次，而投资事业则只能分一次。

Leaving aside tax factors, the formula we use for evaluating stocks and businesses is identical. Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.).
扣除税负因素不计，我们分析评估股票与事业的公式并无二致，事实上亘古至今，这个评估所有金融资产投资的公式从来就未曾改变，远从公元前600年某位先知头一次揭示就是如此，(虽然他可能也没有能力预知当时是公元前600年)。

The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was "a bird in the hand is worth two in the bush." To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush - and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.
奇迹之一就是在伊索寓言里，那历久弥新但不太完整的投资观念，也就是「二鸟在林，不如一鸟在手」，要进一步诠释这项原则，你必须再回答三个问题，你如何确定树丛里有鸟儿? 它们何时会出现，同时数量有多少? 无风险的资金成本是多少?(这里我们假定以美国长期公债的利率为准) 如果你能回答以上三个问题，那么你将知道这个树丛最高的价值有多少，以及你可能可以拥有多少鸟儿，当然小鸟只是比喻，真正实际的标的还是金钱。

Aesop’s investment axiom, thus expanded and converted into dollars, is immutable. It applies to outlays for farms, oil royalties, bonds, stocks, lottery tickets, and manufacturing plants. And neither the advent of the steam engine, the harnessing of electricity nor the creation of the automobile changed the formula one iota - nor will the Internet. Just insert the correct numbers, and you can rank the attractiveness of all possible uses of capital throughout the universe.
伊索的投资寓言除了可以进一步扩大解释成资金，也一样可以适用在农业、油田、债券、股票、乐透彩券以及工厂等，就算是蒸汽引擎的发明、电力设备的引用或汽车的问世一点都不会改变这样的定律，就连网际网络也一样，只能输入正确的数字，你就可以轻轻松松地选择出世上资金运用的最佳去处。

Common yardsticks such as dividend yield, the ratio of price to earnings or to book value, and even growth rates have nothing to do with valuation except to the extent they provide clues to the amount and timing of cash flows into and from the business. Indeed, growth can destroy value if it requires cash inputs in the early years of a project or enterprise that exceed the discounted value of the cash that those assets will generate in later years. Market commentators and investment managers who glibly refer to "growth" and "value" styles as contrasting approaches to investment are displaying their ignorance, not their sophistication. Growth is simply a component - usually a plus, sometimes a minus - in the value equation.
一般的准则，诸如股利报酬率、本益比甚至是成长率，除非他们能够提供一家企业未来现金流入流出的任何线索，否则与价值评估没有一点关联，有时成长甚至对价值有损，要是这项投资计画早期的现金流出大于之后的现金流入折现值，有些市场的分析师与基金经理人信誓旦旦地将"成长型"与"价值型"列为两种截然不同的投资典型，可以说是是无知，那绝不是真知灼见。成长只是一个要素之一，在评估价值时，可能是正面，也有可能是负面。

Alas, though Aesop’s proposition and the third variable - that is, interest rates - are simple, plugging in numbers for the other two variables is a difficult task. Using precise numbers is, in fact, foolish; working with a range of possibilities is the better approach.
可惜的是，虽然伊索寓言的公式与第三个变量-也就是资金成本相当简单易懂，但要弄清楚另外两个变量却有相当的困难，想要明确算出这两个变量根本就不可能，求出两者可能的范围倒是可行的办法。

Usually, the range must be so wide that no useful conclusion can be reached. Occasionally, though, even very conservative estimates about the future emergence of birds reveal that the price quoted is startlingly low in relation to value. (Let’s call this phenomenon the IBT - Inefficient Bush Theory.) To be sure, an investor needs some general understanding of business economics as well as the ability to think independently to reach a well-founded positive conclusion. But the investor does not need brilliance nor blinding insights.
只不过范围过大通常会导致结论仿真两可，而且估计越保守所得出的价格相较于价值较越低，也就是树丛最终出现鸟儿的数量，(我们姑且把这个现象称之为IBT-树丛无效率理论)，可以确定的是，投资人除了必须对于一家企业的经营有一定的了解外，并且要有能力独立思考以获致立论坚实的肯定结论，除此之外，投资人不须其它什么大道理或歪理论。

At the other extreme, there are many times when the most brilliant of investors can’t muster a conviction about the birds to emerge, not even when a very broad range of estimates is employed. This kind of uncertainty frequently occurs when new businesses and rapidly changing industries are under examination. In cases of this sort, any capital commitment must be labeled speculative.
另一个极端，有很多时候，即使是最聪明的投资人都没有办法提出小鸟确实会出现的证据，即使是在最宽松的假设下仍是如此，这种不确定性在检验新事业或是快速变化的产业尤其明显，在这种状况下，任何资金的投入都难脱投机的嫌疑。

Now, speculation - in which the focus is not on what an asset will produce but rather on what the next fellow will pay for it - is neither illegal, immoral nor un-American. But it is not a game in which Charlie and I wish to play. We bring nothing to the party, so why should we expect to take anything home?
如今投机主义-亦即不管资产真实的价值，只看下一个人会用多少价格买进的观念-事实上，这不但不违法、也不算不道德，甚至不能说是非美国式，但也绝非查理跟我愿意玩的游戏，既然我们两手空空参加派对，那么我们又如何期望能从派对中满载而归呢?

The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities - that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future - will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.
投资与投机之间永远是一线之隔，尤其是当所有市场的参与者都沉浸在欢愉的气氛当中时更是如此，再也没有比大笔不劳而获的金钱更让人失去理性，在经历过这类经验之后，再正常的人也会像参加舞会的灰姑娘一样被冲昏了头，他们明知在舞会中多待一会-也就是继续将大笔的资金投入到投机的活动之上，番瓜马车与老鼠驾驶现出原形的机率就越高，但他们还是舍不得错过这场盛大舞会的任何一分钟，所有人都打算继续待到最后一刻才离开，但问题是这场舞会中的时钟根本就没有指针!

Last year, we commented on the exuberance - and, yes, it was irrational - that prevailed, noting that investor expectations had grown to be several multiples of probable returns. One piece of evidence came from a Paine Webber-Gallup survey of investors conducted in December 1999, in which the participants were asked their opinion about the annual returns investors could expect to realize over the decade ahead. Their answers averaged 19%. That, for sure, was an irrational expectation: For American business as a whole, there couldn’t possibly be enough birds in the 2009 bush to deliver such a return.
去年我们对于这种失序的状态大加批评，这实在是太不合理了，我们赫然发现投资人的预期得到超过数倍他们可能得到的报酬，一份潘伟伯证券公司在1999年进行的调查报告显示，当投资人被问到自己预期未来十年内的年平均投资报酬有多少，答案平均是19%，这很明显的是不当的预期，对整个美国树丛来说，到2009年为止，根本就不可能藏有这么多鸟儿。

Far more irrational still were the huge valuations that market participants were then putting on businesses almost certain to end up being of modest or no value. Yet investors, mesmerized by soaring stock prices and ignoring all else, piled into these enterprises. It was as if some virus, racing wildly among investment professionals as well as amateurs, induced hallucinations in which the values of stocks in certain sectors became decoupled from the values of the businesses that underlay them.
更夸张的是，目前市场参与者对于一些长期而言明显不可能产生太高价值或甚至根本就没有任何价值的公司，给予极高的市值评价，然而投资人依然被持续飙涨的股价所迷惑，不顾一切地将资金蜂拥投入到这类企业，这情形就好象是病毒一样，在专业法人与散户间广为散播，引发不合理的股价预期而与其本身应有的价值明显脱钩。

This surreal scene was accompanied by much loose talk about "value creation." We readily acknowledge that there has been a huge amount of true value created in the past decade by new or young businesses, and that there is much more to come. But value is destroyed, not created, by any business that loses money over its lifetime, no matter how high its interim valuation may get.
伴随着这种不切实际的景况而来的，还有一种荒唐的说法叫做「价值创造」，我们承诺过去数十年来，许多新创事业确实为这个世界创造出许多价值，而且这种情况还会继续发生，但我们打死都不相信，那些终其一生不赚钱，甚至是亏钱的企业能够创造出什么价值，他们根本是摧毁价值，不管在这期间他们的市值曾经有多高都一样。
What actually occurs in these cases is wealth transfer, often on a massive scale. By shamelessly merchandising birdless bushes, promoters have in recent years moved billions of dollars from the pockets of the public to their own purses (and to those of their friends and associates). The fact is that a bubble market has allowed the creation of bubble companies, entities designed more with an eye to making money off investors rather than for them. Too often, an IPO, not profits, was the primary goal of a company’s promoters. At bottom, the "business model" for these companies has been the old-fashioned chain letter, for which many fee-hungry investment bankers acted as eager postmen.
在这些案例中，真正产生的只是财富移转的效应，而且通常都是大规模的，部份可耻的不肖商人利用根本就没有半只鸟的树丛，从社会大众的口袋中骗走大笔的金钱，(这其中也包含他们自己的朋友与亲人)，事实证明泡沫市场创造出泡沫公司，这是一种赚走投资人手中的钱而不是帮投资人赚钱的幌子，通常这些幕后推手的最终目标不是让公司赚钱，而是让公司上市挂牌，说穿了这只不过老式连锁信骗局的现代版，而靠手续费维生的证券商就成了专门送信的邮差帮凶。

But a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street - a community in which quality control is not prized - will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.
然而任何的泡沫都经不起针刺，当泡沫破灭，不可避免的会有一大票菜鸟学到教训，第一课，不论是什么东西，只要有人要买，华尔街那帮人都会想办法弄来卖给你，第二课，投机这玩意儿看似简单，其实岸潮汹涌。

At Berkshire, we make no attempt to pick the few winners that will emerge from an ocean of unproven enterprises. We’re not smart enough to do that, and we know it. Instead, we try to apply Aesop’s 2,600-year-old equation to opportunities in which we have reasonable confidence as to how many birds are in the bush and when they will emerge (a formulation that my grandsons would probably update to "A girl in a convertible is worth five in the phonebook."). Obviously, we can never precisely predict the timing of cash flows in and out of a business or their exact amount. We try, therefore, to keep our estimates conservative and to focus on industries where business surprises are unlikely to wreak havoc on owners. Even so, we make many mistakes: I’m the fellow, remember, who thought he understood the future economics of trading stamps, textiles, shoes and second-tier department stores.

在Berkshire，我们从来没有妄想要从一堆不成气候的公司中，挑出幸运儿，我们自认没有这种超能力，这点我们绝对有自知之明，相反的我们试着遵循2,600年来既有的古老伊索寓言，耐心研究某些树丛里到底有多少鸟儿，以及他们出现的时机，(或许以后我的孙子可能会把它改为五个电话簿上的女孩，不如一个敞篷车上的女孩)，当然我们永远没有办法精准地预估一家公司每年现金流入与流出的状况，所以我们试着用比较保守的角度去估算，同时将重心锁定在那些比较不会让股东错估情势的公司上头，即便是如此，我们还是常常犯错，大家可能还记得我本人就曾经自称是相当熟悉集邮、纺织、制鞋以及二流百货公司等产业的人士。
Lately, the most promising "bushes" have been negotiated transactions for entire businesses, and that pleases us. You should clearly understand, however, that these acquisitions will at best provide us only reasonable returns. Really juicy results from negotiated deals can be anticipated only when capital markets are severely constrained and the whole business world is pessimistic. We are 180 degrees from that point.

近来，我们最看好的树丛要算是经由协议买下整家公司，这种方法确实让我们感到相当满意，不过大家要记住，这类的购并交易顶多让我们有一个合理的回报，想要有超额的报酬一定要等到资本市场非常惨淡，整个企业界普遍感到悲观之时，机会才会出现，目前我们离那种状况还很远。

Sources of Reported Earnings帐列盈余的来源

The table that follows shows the main sources of Berkshire's reported earnings. In this presentation, purchase-accounting adjustments are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. For the reasons discussed on page 65, this form of presentation seems to us to be more useful to investors and managers than one utilizing generally accepted accounting principles (GAAP), which require purchase-premiums to be charged off business-by-business. The total net earnings we show in the table are, of course, identical to the GAAP total in our audited financial statements.

下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，过去我一再地强调我们认为这样的表达方式，较之一般公认会计原则要求以个别企业基础做调整，不管是对投资者或是管理者来说，更有帮助，当然最后损益加总的数字仍然会与经会计师查核的数字一致。

　
 
(in millions)
 

　
 
Pre-Tax Earnings
 
Berkshire's Share of Net Earnings
(after taxes and minority interests)
 

　
 
2000
 
1999
 
2000
 
1999
 

Operating Earnings: Insurance Group:
 
　
 

Underwriting - Reinsurance
 
$(1,399)
 
$(1,440)
 
$(899)
 
$(927)
 

Underwriting - GEICO
 
(224)
 
24　2
 
(146)
 
16　1
 

Underwriting - Other Primary
 
38　3
 
22　2
 
24　2
 
14　1
 

Net Investment Income
 
2,747　2,74
 
2,482　2,48
 
1,929　1,92
 
1,764　1,76
 

Finance and Financial Products Business
 
556　55
 
125　12
 
360　36
 
86　8
 

　　　Flight Services
 
213　21
 
225　22
 
126　12
 
132　13
 

　　　MidAmerican Energy (76% owned)
 
197　19
 
--　-
 
109　10
 
--　-
 

　　　Retail Operations
 
175　17
 
130　13
 
104　10
 
77　7
 

Scott Fetzer (excluding finance operation)
 
122　12
 
147　14
 
80　8
 
92　9
 

　　　Other Businesses
 
225　22
 
210　21
 
134　13
 
131　13
 

　　　Purchase-Accounting Adjustments
 
(881)
 
(739)
 
(843)
 
(648)
 

　　　Corporate Interest Expense
 
(92)
 
(109)
 
(61)
 
(70)
 

　Shareholder-Designated Contributions
 
(17)
 
(17)
 
(11)
 
(11)
 

　　　Other
 
　　　　39　
 
　　　25　
 
　　　　30　
 
　　15　
 

Operating Earnings
 
1,699　1,69
 
1,085　1,08
 
936　93
 
671　67
 

Capital Gains from Investments
 
3,955　
 
1,365　
 
2,392　
 
　　886　
 

Total Earnings - All Entities
 
$5,654　$5,65
 
$2,450　$2,45
 
$3,328　$3,32
 
$1,557　$1,55
 

Most of our manufacturing, retailing and service businesses did at least reasonably well last year.

The exception was shoes, particularly at Dexter. In our shoe businesses generally, our attempt to keep the bulk of our production in domestic factories has cost us dearly. We face another very tough year in 2001 also, as we make significant changes in how we do business.
去年，我们旗下的制造、零售与服务业的表现都相当不错，唯一的例外是制鞋业，尤其是Dexter，为了让所有的制造据点尽量留在美国境内，我们付出了极大的代价，即便我们之后做了一番调整，但2001年仍将是辛苦的一年。

I clearly made a mistake in paying what I did for Dexter in 1993. Furthermore, I compounded that mistake in a huge way by using Berkshire shares in payment. Last year, to recognize my error, we charged off all the remaining accounting goodwill that was attributable to the Dexter transaction. We may regain some economic goodwill at Dexter in the future, but we clearly have none at present.
事后看来，我在1993年斥资买下Dexter根本是个错误，更惨的是当时我还是用Berkshire股份换来的，为此我们在去年将当初帐上购入Dexter所有的商誉一次打销掉，虽然部份商誉在未来可能有机会回复，但就目前而言，该公司的商誉可说是一毛不值。

The managers of our shoe businesses are first-class from both a business and human perspective. They are working very hard at a tough - and often terribly painful - job, even though their personal financial circumstances don’t require them to do so. They have my admiration and thanks.
于公于私我们制鞋事业的经理人都称得上是一流的，他们在非常艰苦的环境下努力工作，即便他们早已不必为了五斗米而折腰，为此我衷心地佩服并感谢他们。

On a more pleasant note, we continue to be the undisputed leader in two branches of Aircraft Services - pilot training at FlightSafety (FSI) and fractional ownership of business jets at Executive Jet (EJA). Both companies are run by their remarkable founders.
另外一方面，我们很高兴能继续在两项航空服务业中称霸-一是飞行员训练的国际飞安公司(FSI)，一是部份飞机所有权的主管专机公司(EJA)，两家公司目前依然由其杰出的创办人经营着。

Al Ueltschi at FSI is now 83 and continues to operate at full throttle. Though I am not a fan of stock splits, I am planning to split Al’s age 2-for-1 when he hits 100. (If it works, guess who’s next.)
FSI的Al Ueltschi今年83岁，目前仍然处于全速前进的状态，虽然我本身不喜欢股票分割这玩意儿，但我却计画在Al 100岁时，将他的年龄一分为二。(如果此举确实可行，大家应该猜得到下一个会轮到谁!)

We spent $272 million on flight simulators in 2000, and we’ll spend a similar amount this year. Anyone who thinks that the annual charges for depreciation don’t reflect a real cost - every bit as real as payroll or raw materials - should get an internship at a simulator company. Every year we spend amounts equal to our depreciation charge simply to stay in the same economic place - and then spend additional sums to grow. And growth is in prospect for FSI as far as the eye can see.
2000年我们投资2.72亿美元在购买飞行仿真器上头，今年的投资金额也约当此数，有谁胆敢说每年的折旧费用不算是真正的成本的，应该请他到飞行仿真公司打打工，让他知道每一分折旧都跟薪资或原料成本一样真实，每一年我们都必须投入约当于折旧金额的资金在更新设备上，以维持既有的竞争优势，而如果我们想要成长的话，就必须再投入额外的资金，对于FSI而言，其目前成长的前景依然可期。
Even faster growth awaits EJA (whose fractional-ownership program is called NetJetsR). Rich Santulli is the dynamo behind this business.
另一方面，成长更快速的是EJA(其飞机部份所有权称之为NetJet)，Rich Santulli是背后主要的推手。

Last year I told you that EJA’s recurring revenue from monthly management fees and hourly usage grew by 46% in 1999. In 2000 the growth was 49%. I also told you that this was a low-margin business, in which survivors will be few. Margins were indeed slim at EJA last year, in part because of the major costs we are incurring in developing our business in Europe.
去年，我告诉大家EJA 1999年每月固定的管理费加上钟点费成长了46%，到了2000年成长幅度增加为49%，我也曾向各位报告说这个行业的毛利不高，所以能够存活的家数不多，去年EJA的利润率确实相当微薄，部份的原因是因为我们正在努力扩展欧洲的业务当中。

Regardless of the cost, you can be sure that EJA’s spending on safety will be whatever is needed. Obviously, we would follow this policy under any circumstances, but there’s some self-interest here as well: I, my wife, my children, my sisters, my 94-year-old aunt, all but one of our directors, and at least nine Berkshire managers regularly fly in the NetJets program. Given that cargo, I applaud Rich’s insistence on unusually high amounts of pilot training (an average of 23 days a year). In addition, our pilots cement their skills by flying 800 or so hours a year. Finally, each flies only one model of aircraft, which means our crews do no switching around among planes with different cockpit and flight characteristics.
不论成本有多高，只要是为了安全考量，EJA愿意不惜血本，在任何情况下，我们都会坚持这项政策，因为这其中还掺杂有个人的因素在里头，包含我本人、内人、小孩、姊妹、高龄94岁的阿姨、Berkshire的所有董事(除了一位例外)以及其它9位主要经理人都是NetJet的常客，在这里我要特别为Rich维持飞行员一年平均达23天高时数训练的坚持给予掌声，此外我们的飞行员一年平均都维持800小时以上的飞行时数以强化本身的飞行技巧，同时每位飞行员只固定飞一种机型，这意思是说，他们不必常常在不同种飞机机舱间换来换去。

EJA’s business continues to be constrained by the availability of new aircraft. Still, our customers will take delivery of more than 50 new jets in 2001, 7% of world output. We are confident we will remain the world leader in fractional ownership, in respect to number of planes flying, quality of service, and standards of safety.
虽然EJA的业务依然受限于飞机供给有限的数量，但是2001年至少有50架飞机会加入服务的行列，这约占全世界飞机出厂数量的7%，我们有信心可以继续在部份飞机所有权这行业中维持领先的地位，不管是以飞机数量、服务品质以及安全可靠性来说，皆是如此。

Additional information about our various businesses is given on pages 42-58, where you will also find our segment earnings reported on a GAAP basis. In addition, on pages 67-73, we have rearranged Berkshire’s financial data into four segments on a non-GAAP basis, a presentation that corresponds to the way Charlie and I think about the company.
有关其它关系企业的信息大家可以在42-58页找到，包含依照一般公认会计准则编制的部门别信息，此外在67-73页，你还可以找到经过重编，依照Berkshire四大部门编排的信息(非按一般公认会计准则编制)，这是查理跟我认为最能够完整呈现Berkshire现况的模式。

Look-Through Earnings完整透视盈余

Reported earnings are an inadequate measure of economic progress at Berkshire, in part because the numbers shown in the table on page 15 include only the dividends we receive from investees - though these dividends typically represent only a small fraction of the earnings attributable to our ownership. To depict something closer to economic reality at Berkshire than reported earnings, though, we employ the concept of "look-through" earnings. As we calculate these, they consist of: (1) the operating earnings reported on page 15; plus; (2) our share of the retained operating earnings of major investees that, under GAAP accounting, are not reflected in our profits, less; (3) an allowance for the tax that would be paid by Berkshire if these retained earnings of investees had instead been distributed to us. When tabulating "operating earnings" here, we exclude purchase-accounting adjustments as well as capital gains and other major non-recurring items.
我们认为帐列盈余很难表现Berkshire实际的营运状况，部份原因在于第15页列示在本公司帐上的股利收入，事实上仅占被投资公司收益的一小部份，为了要更真实的反应Berkshire实际的经营状况，于是乎我们运用了完整透视盈余的观念，这个数字总共包含(1)前段第15页所提到的帐列盈余，加上(2)主要被投资公司的保留盈余，按一般公认会计原则未反应在我们公司帐上的盈余，扣除(3)若这些未反应的盈余分配给我们时，估计可能要缴的所得税。在这里我们所谓的营业盈余系已扣除资本利得、特别会计调整与企业其它非常态的项目。

The following table sets forth our 2000 look-through earnings, though I warn you that the figures can be no more than approximate, since they are based on a number of judgment calls. (The dividends paid to us by these investees have been included in the operating earnings itemized on page 15, mostly under "Insurance Group: Net Investment Income.")
各位可以从下表看出我们是如何计算出2000年透视盈余的，不过我还是要提醒各位这些数字只不过是估计数，很多都是基于简单的判断，(被投资公司所分配的股利收入已经列在15页的营业利益之内，大部分包含在保险事业的净投资收益项下)。

Berkshire's Major Investees
 
Berkshire's Approximate Ownership at Yearend(1)
 
Berkshire's Share of Undistributed
Operating Earnings (in millions)(2)
 

American Express Company
 
11.4%
 
$265　$26
 

The Coca-Cola Company
 
8.1%
 
160　16
 

Freddie Mac
 
0.3%
 
106　10
 

The Gillette Company
 
9.1%
 
51　5
 

M&T Bank
 
7.2%
 
23　2
 

The Washington Post Company
 
18.3%
 
18　1
 

Wells Fargo & Company
 
3.2%
 
　　　117　
 

Berkshire's share of undistributed earnings of major investees
 
740　74
 

Hypothetical tax on these undistributed investee earnings(3)
 
(104)
 

Reported operating earnings of Berkshire
 
　1,779　1,77
 

Total look-through earnings of Berkshire
 
$ 2,415　$ 2,41
 

(1) Does not include shares allocable to minority interests

(2) Calculated on average ownership for the year

(3) The tax rate used is 14%, which is the rate Berkshire pays on most dividends it receives

Full and Fair Reporting详实客观的财务报告

At Berkshire, full reporting means giving you the information that we would wish you to give to us if our positions were reversed. What Charlie and I would want under that circumstance would be all the important facts about current operations as well as the CEO’s frank view of the long-term economic characteristics of the business. We would expect both a lot of financial details and a discussion of any significant data we would need to interpret what was presented.
在Berkshire，所谓详实的报告代表着今天如果角色互换，我希望各位能够提供所有我们想要知道的信息，这包含了目前经营的重大讯息以及CEO对于公司长远发展的真正看法，当然要解释这些讯息必须辅以相关的财务资料。

When Charlie and I read reports, we have no interest in pictures of personnel, plants or products. References to EBITDA make us shudder - does management think the tooth fairy pays for capital expenditures? We’re very suspicious of accounting methodology that is vague or unclear, since too often that means management wishes to hide something. And we don’t want to read messages that a public relations department or consultant has turned out. Instead, we expect a company’s CEO to explain in his or her own words what’s happening.
当查理跟我在阅读财务报告时，我们对于人员、工厂或产品的介绍没有多大兴趣，有关扣除折旧摊销税负利息前的盈余(EBITDA)的引用更让我们胆颤心惊，难道经营阶层真的认为拿牙齿就可以换来大笔的资本支出吗?(注:美国小孩相信牙齿掉时，只要把牙齿藏在枕头底下，tooth fairy就会拿钱来换你的牙齿)，对于那些仿真不清的会计原则，我们一向抱持怀疑的态度，因为经营阶层通常都会藉此掩盖来一些事实，此外我们也不想读那些由公关部门或顾问所提供的资料，我们希望能够由CEO自己亲自解释实际发生的状况。

For us, fair reporting means getting information to our 300,000 "partners" simultaneously, or as close to that mark as possible. We therefore put our annual and quarterly financials on the Internet between the close of the market on a Friday and the following morning. By our doing that, shareholders and other interested investors have timely access to these important releases and also have a reasonable amount of time to digest the information they include before the markets open on Monday. This year our quarterly information will be available on the Saturdays of May 12, August 11, and November 10. The 2001 annual report will be posted on March 9.
对我们来说，详实的报告代表我们30万位合伙人可以同时得到相同的信息，至少能够尽可能地做到，因此我们习惯将季报与年报在星期五收盘后透过网络统一对外公布，如此一来，股东们与所有关心Berkshire的投资人都可以及时的得到重要的讯息，同时在星期一开盘之前，有足够的时间吸收消化相关的信息，今年我们的季报分别会在5月12号、8月11号及11月10号星期六公布，至于2001年的年报则会在3月9号公开。
We applaud the work that Arthur Levitt, Jr., until recently Chairman of the SEC, has done in cracking down on the corporate practice of "selective disclosure" that had spread like cancer in recent years. Indeed, it had become virtually standard practice for major corporations to "guide" analysts or large holders to earnings expectations that were intended either to be on the nose or a tiny bit below what the company truly expected to earn. Through the selectively dispersed hints, winks and nods that companies engaged in, speculatively-minded institutions and advisors were given an information edge over investment-oriented individuals. This was corrupt behavior, unfortunately embraced by both Wall Street and corporate America.
对于证管会主席Arthur Levitt近来大力打击企业如癌症般扩散的选择性透露做法喝采，确实近年来许多大企业习惯引导分析师或大股东的盈余预估刚好符合公司本身的盈余预期(或只差一点)几乎已成常态，透过选择性地揭露信息，不论公司是如何挤眉弄眼，投机性的机构法人与投资顾问因此得到比以投资为导向的散户更多的内线，这实在是一种堕落的行为，不幸的这在华尔街与美国企业间广受欢迎。

Thanks to Chairman Levitt, whose general efforts on behalf of investors were both tireless and effective, corporations are now required to treat all of their owners equally. The fact that this reform came about because of coercion rather than conscience should be a matter of shame for CEOs and their investor relations departments.
由于Levitt主席为投资人所做的努力，美国企业现在才得以被要求要公平对待所有的股东与投资人，同时我们也为这些CEO与公关部门基于被动而非主动才这样做感到羞耻。
One further thought while I’m on my soapbox: Charlie and I think it is both deceptive and dangerous for CEOs to predict growth rates for their companies. They are, of course, frequently egged on to do so by both analysts and their own investor relations departments. They should resist, however, because too often these predictions lead to trouble.
最后站在这个肥皂箱上，我再发表一点个人的看法，那就是查理跟我认为CEO预估公司未来成长率是相当危险且不当的，他们通常是在分析师与公关部门要求下才这样做的，但我认为他们应该要坚决抗拒，因为这样做通常会惹来许多不必要的麻烦。

It’s fine for a CEO to have his own internal goals and, in our view, it’s even appropriate for the CEO to publicly express some hopes about the future, if these expectations are accompanied by sensible caveats. But for a major corporation to predict that its per-share earnings will grow over the long term at, say, 15% annually is to court trouble.
CEO自己心中有一个目标不是件坏事，甚至我们认为CEO公开发表个人心中的愿景是很好的一件事，如果这些期望能够附带合理的条件，但如果一家大公司公开的宣称每股盈余长期可以维持15%的年成长率的话，那肯定会招致许多不必要的麻烦。
That’s true because a growth rate of that magnitude can only be maintained by a very small percentage of large businesses. Here’s a test: Examine the record of, say, the 200 highest earning companies from 1970 or 1980 and tabulate how many have increased per-share earnings by 15% annually since those dates. You will find that only a handful have. I would wager you a very significant sum that fewer than 10 of the 200 most profitable companies in 2000 will attain 15% annual growth in earnings-per-share over the next 20 years.

其原因在于这种高标准只有在极少数的企业才有可能做得到，让我们做一个简单的测试，根据历史记录，1970年与1980年代，在200家盈余最高的公司当中，算算到底有几家在此之后能够继续维持15%的年盈余成长率，你会发现，能够达到这个目标的公司少之又少，我可以跟你打赌，在2000年获利最高的200家公司当中，能够在接下来的20年年平均成长率达到15%的公司，绝对不超过10家。

The problem arising from lofty predictions is not just that they spread unwarranted optimism. Even more troublesome is the fact that they corrode CEO behavior. Over the years, Charlie and I have observed many instances in which CEOs engaged in uneconomic operating maneuvers so that they could meet earnings targets they had announced. Worse still, after exhausting all that operating acrobatics would do, they sometimes played a wide variety of accounting games to "make the numbers." These accounting shenanigans have a way of snowballing: Once a company moves earnings from one period to another, operating shortfalls that occur thereafter require it to engage in further accounting maneuvers that must be even more "heroic." These can turn fudging into fraud. (More money, it has been noted, has been stolen with the point of a pen than at the point of a gun.)

过高的预估不但造成没有根据的乐观，麻烦的是此举还会导致CEO行为的腐化，这么多年来，查理跟我已经看过很多CEO不专注于本业而热衷于运用一些非经济的手段来达成他们先前所做的盈余预估，更糟的的是，在用尽营运上的各种手段之后，被逼得走投无路的经理人最后还会运用各种会计方法无所不用其极的做假帐，这种会计骗术会产生滚雪球效应，一旦今天你挪用以后的盈余，明天你就要变本加厉地挪用以后的盈余，到最后从造假演变为贪污，(毕竟用笔偷钱要比用枪抢钱要来得容易得多了)。

Charlie and I tend to be leery of companies run by CEOs who woo investors with fancy predictions. A few of these managers will prove prophetic - but others will turn out to be congenital optimists, or even charlatans. Unfortunately, it’s not easy for investors to know in advance which species they are dealing with.
查理跟我对于那些习惯以绚丽的盈余预估吸引投资人的CEO所带领的公司，总是报以怀疑的态度，或许少数的经理人确实能说到做到，但大部分的经理人最后都变成无可救药的乐观派，甚至可以说是骗子，不幸的是，投资人实在是很难事先分辨出他们到底是在跟哪一种人打交道。

I’ve warned you in the past that you should not believe everything you read or hear about Berkshire - even when it is published or broadcast by a prestigious news organization. Indeed, erroneous reports are particularly dangerous when they are circulated by highly-respected members of the media, simply because most readers and listeners know these outlets to be generally credible and therefore believe what they say.
过去我就一再警告大家千万不要将你在外面听到或读到有关Berkshire的任何消息信以为真，即使这消息来自最具权威的新闻单位也一样，错误报导的杀伤力确实相当高，特别是它们是从令人崇敬的媒体人士口中传出来的，因为读者与观众一向倾向相信这些管道所传出来的讯息。

An example is a glaring error about Berkshire’s activities that appeared in the December 29 issue of The Wall Street Journal, a generally excellent paper that I have for all of my life found useful. On the front page (and above the fold, as they say) The Journal published a news brief that said, in unequivocal terms, that we were buying bonds of Conseco and Finova. This item directed the reader to the lead story of the Money and Investing section. There, in the second paragraph of the story, The Journal reported, again without any qualification, that Berkshire was buying Conseco and Finova bonds, adding that Berkshire had invested "several hundred million dollars" in each. Only in the 18th paragraph of the story (which by that point had jumped to an insidepage) did the paper hedge a bit, saying that our Conseco purchases had been disclosed by "people familiar with the matter."
有关Berkshire错误讯息最离谱的是刊登在12月29号华尔街日报的一则新闻，那是一份一直以来我认为相当有用的报纸，在当天的头版上(而且是头条)，刊登了一则简短的讯息，以肯定的语气报导Berkshire正大举买进Conseco与Finova的公司债，这条消息又导引读者到投资理财专栏的专题报导，在那篇文章的第二段，华尔街日报再一次毫无保留的指出Berkshire正积极买进Conseco与Finova的公司债，并强调金额已达数亿美元之谱，只有到了文章的第18段(那时文章已换到新闻的内页)，文章才含蓄地表示买进Conseco的消息是由熟悉内情的人士所透露。

Well, not that familiar. True, we had purchased bonds and bank debt of Finova - though the report was wildly inaccurate as to the amount. But to this day neither Berkshire nor I have ever bought a share of stock or a bond of Conseco.
嗯! 这篇报导不太对，没错，我们确实买进Finova的公司债与银行债权，只是金额与报纸所说的有很大的出入，而但到目前为止，Berkshire公司以及我本人从来就没有买进过Conseco任何的股份或者是债券。

Berkshire is normally covered by a Journal reporter in Chicago who is both accurate and conscientious. In this case, however, the "scoop" was the product of a New York reporter for the paper. Indeed, the 29th was a busy day for him: By early afternoon, he had repeated the story on CNBC. Immediately, in lemming-like manner, other respected news organizations, relying solely on the Journal, began relating the same "facts." The result: Conseco stock advanced sharply during the day on exceptional volume that placed it ninth on the NYSE most-active list.
有一位芝加哥报纸的记者长期追踪Berkshire，其报导就相当详实严谨，至于这一回，这则"独家新闻"则是纽约报社记者所捅的偻子，我想29号当天应该是他相当忙碌的一天，因为下午他又在CNBC重复相同的报导，过了不久，一窝蜂效应产生，其它的新闻媒体开始跟进争相报导相关新闻，其根据来源就完全只靠这则报导，结果竟造成Conseco的股价在当天爆量大涨，成为当天纽约交易所前十大成交量的公司之一。

During all of the story’s iterations, I never heard or read the word "rumor." Apparently reporters and editors, who generally pride themselves on their careful use of language, just can’t bring themselves to attach this word to their accounts. But what description would fit more precisely? Certainly not the usual "sources say" or "it has been reported."
在整篇报导当中，我没有看到或听到"谣传"这个字眼，很显然的，一向对于以使用语言相当谨慎而自豪记者与编辑，实在是很难将这个字眼引用在自己的报导当中，然而到底该用什么样的方式来形容呢? 我想应该也不是"消息来源指出"或是"据报导"等。

A column entitled "Today’s Rumors," however, would not equate with the self-image of the many news organizations that think themselves above such stuff. These members of the media would feel that publishing such acknowledged fluff would be akin to L’Osservatore Romano initiating a gossip column. But rumors are what these organizations often publish and broadcast, whatever euphemism they duck behind. At a minimum, readers deserve honest terminology - a warning label that will protect their financial health in the same way that smokers whose physical health is at risk are given a warning.
若把这个专栏取名为"今日谣传"，这实在是很难让新闻媒体将之与自我形象划上等号，这些新闻从业人员可能会觉得刊登这类明显的错误就好象是L'Osservatore Romano(编按:该报专门追踪教宗与教廷的讯息)开辟了一个小道消息专栏一样，这些媒体机构确实经常广泛报导各种未经证实的谣言，不管他们用了多少借口作推托，最起码，读者应该看到诚实的用语-以保护投资人本身的财产身家，这就好象香烟盒上都会印有请吸烟者注意本身身体健康的警语。

The Constitution’s First Amendment allows the media to print or say almost anything. Journalism’s First Principle should require that the media be scrupulous in deciding what that will be.
美国宪法第一修正案允许媒体自由刊登或发表任何信息，但新闻学的第一项原则却要求媒体在判断此真义时必须要小心谨慎。

Miscellaneous其它事项

In last year’s report we examined the battle then raging over the use of "pooling" in accounting for mergers. It seemed to us that both sides were voicing arguments that were strong in certain respects and seriously flawed in others. We are pleased that the Financial Accounting Standards Board has since gone to an alternative approach that strikes us as very sound.
去年年报我们检讨企业购并时是否能使用"权益结合法"的论战，看起来两方的论点各有其立场，但也有各自的缺点，在此之后，我们欣然见到财务会计准则委员会提出了一个替代方法让我们觉得相当满意。
If the proposed rule becomes final, we will no longer incur a large annual charge for amortization of intangibles. Consequently, our reported earnings will more closely reflect economic reality. (See page 65.) None of this will have an effect on Berkshire’s intrinsic value. Your Chairman, however, will personally benefit in that there will be one less item to explain in these letters.
如果这个提案获得采用，以后我们每年将可以不必再提列大笔的无形资产摊销费用，我们的帐列盈余也因此更能够真实反映实际的经营状况，(请参阅第65页)，虽然这些都不会影响到Berkshire本身的实质价值，但身为公司的董事会主席，我个人将可因此不必在这一方面再多费唇舌。

I’m enclosing a report - generously supplied by Outstanding Investor Digest - of Charlie’s remarks at last May’s Wesco annual meeting. Charlie thinks about business economics and investment matters better than anyone I know, and I’ve learned a lot over the years by listening to him. Reading his comments will improve your understanding of Berkshire.
这里我检附了一份广为杰出投资人文摘散发的报告-那是查理在去年五月
Wesco股东年会的一番谈话，查理在企业经营与股票投资方面的见解一向比我
更深刻，而我个人更从他身上受益匪浅，阅读他的评论绝对有助于你对
Berkshire的了解。

In 1985, we purchased Scott Fetzer, acquiring not only a fine business but the services of Ralph Schey, a truly outstanding CEO, as well. Ralph was then 61. Most companies, focused on the calendar rather than ability, would have benefited from Ralph’s talents for only a few years.
1985年我们买下史考特飞兹，买到的不但一家公司，还附带一位优秀的经理人-Ralph Schey，当时Ralph 61岁，对大部分注重年龄而非能力的公司来说， Ralph为其服务的时日可能已不多。

At Berkshire, in contrast, Ralph ran Scott Fetzer for 15 years until his retirement at the end of 2000. Under his leadership, the company distributed $1.03 billion to Berkshire against our net purchase price of $230 million. We used these funds, in turn, to purchase other businesses. All told, Ralph’s contributions to Berkshire’s present value extend well into the billions of dollars.
但是在Berkshire却正好相反，Ralph之后又在史考特飞兹待了15年，直到2000年底他正式退休为止，在他的领导的期间，相较于当初2.3亿美元的买进成本，该公司前前后后总共贡献了10.3亿美元的盈余给Berkshire，而我们又利用这些资金再买进其它的企业，算下来，Ralph为Berkshire所贡献的价值可能已超过数十亿美元。

As a manager, Ralph belongs in Berkshire’s Hall of Fame, and Charlie and I welcome him to it.
身为一位专业经理人，Ralph绝对可以列入Berkshire的名人堂，查理跟我本身欢迎他的加入。

A bit of nostalgia: It was exactly 50 years ago that I entered Ben Graham’s class at Columbia. During the decade before, I had enjoyed - make that loved - analyzing, buying and selling stocks. But my results were no better than average.
又到了怀旧时间，约莫50年前，我在哥伦比亚大学修了葛拉罕老师的课，在此之前的十年，我一直盲目地从事分析、买进然后卖出股票的动作，但当时的成绩却是平平。

Beginning in 1951 my performance improved. No, I hadn’t changed my diet or taken up exercise. The only new ingredient was Ben’s ideas. Quite simply, a few hours spent at the feet of the master proved far more valuable to me than had ten years of supposedly original thinking.
从1951年起我的投资绩效开始改善，并非我改变饮食或运动习惯，唯一的改变是其间增加了葛拉罕的观念，当时在大师面前沈浸几个小时的效果远远大于我个人过去十年来独自的摸索。
In addition to being a great teacher, Ben was a wonderful friend. My debt to him is incalculable.
除了是一位伟大的老师，葛拉罕更是一位难得的挚友，他对我的恩情比天高比海深。

Shareholder-Designated Contributions股东指定捐赠计划

About 97% of all eligible shares participated in Berkshire's 2000 shareholder-designated contributions program, with contributions totaling $16.9 million. A full description of the program appears on pages 74-75.
大约有97%的有效股权参与2000年的股东指定捐赠计划，捐出的款项总计约1,690万美元，有关本计画详细的信息请参阅74-75页。

Cumulatively, over the 20 years of the program, Berkshire has made contributions of $164 million pursuant to the instructions of our shareholders. The rest of Berkshire's giving is done by our subsidiaries, which stick to the philanthropic patterns that prevailed before they were acquired (except that their former owners themselves take on the responsibility for their personal charities). In aggregate, our subsidiaries made contributions of $18.3 million in 2000, including in-kind donations of $3 million.
累计过去20年以来，Berkshire总计已依照股东意愿捐赠出高达1.64亿美元的款项，除了之外，Berkshire还透过旗下的子公司进行捐赠，而这些慈善活动都是早在他们被我们购并以前就行之有年的(先前的老板自行本身负责的个人捐赠计画之外除外)，总的来说，我们旗下的关系企业在2000年总计捐出1,830万美元，其中包含300万美元等值的物品。

To participate in future programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 2001 will be ineligible for the 2001 program. When you get the contributions form from us, return it promptly so that it does not get put aside or forgotten. Designations received after the due date will not be honored.
想要参加这项计画者，必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在2001年8月31日之前完成登记，才有权利参与2001年的捐赠计画，当你收到表格后，请立即填写后寄回，以免被丢在一旁给忘记了，逾期恕不受理。

The Annual Meeting年度股东大会

Last year we moved the annual meeting to the Civic Auditorium, and it worked very well for us. We will meet there again on Saturday, April 28. The doors will open at 7 a.m., the movie will begin at 8:30, and the meeting itself will commence at 9:30. There will be a short break at noon for food, with sandwiches available at the Civic’s concession stands. Except for that interlude, Charlie and I will answer questions until 3:30.
去年我们将股东会举办的地点移到市立体育馆，结果令人相当满意，今年4月28号星期六我们将再度在这里聚会，大门会在当天早上七点开放，同时电影短片照例会在八点半播放，正式会议则从九点半开始，扣除中午短暂的休息时间， (会场外备有三明治等各类点心)，除了中午休息时间外，查理跟我本人会在现场回答大家各类问题直到下午三点半为止。

For the next couple of years, the Civic is our only choice. We must therefore hold the meeting on either Saturday or Sunday to avoid the traffic and parking nightmare that would occur on a weekday. Shortly, however, Omaha will have a new Convention Center with ample parking. Assuming that the Center is then available to us, I will poll shareholders to see whether you wish to return to a Monday meeting. We will decide that vote based on the wishes of a majority of shareholders, not shares.
在未来几年内，市立体育馆将是我们唯一的选择，而为了解决交通与停车问题，我们只能在星期六或星期天举行，以避开平日的交通阻塞，所幸在不久之后，奥玛哈将会有一个大型的新会议中心诞生，拥有宽敞的停车场，等到这个会议中心完成之后，我会再发问券询问大家将会议时间改回星期一的看法，届时我们将以股东投票人数而非股权比例来决定。

An attachment to the proxy material that is enclosed with this report explains how you can obtain the credential you will need for admission to this year’s meeting and other events. As for plane, hotel and car reservations, we have again signed up American Express (800-799-6634) to give you special help. In our normal fashion, we will run buses from the larger hotels to the meeting. After the meeting, the buses will make trips back to the hotels and to Nebraska Furniture Mart, Borsheim's and the airport. Even so, you are likely to find a car useful.
后面附有股东会开会投票的相关资料，向各位解释如何拿到入场所许的识别证，由于预期会有相当多的人与会，我们建议大家最好先预订机位与住宿，美国运通 (电话800-799-6634)将会很高兴为您提供相关安排服务，如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，当然你可能会觉得如何有一辆车会更方便。

We have added so many new companies to Berkshire this year that I’m not going to detail all of the products that we will be selling at the meeting. But come prepared to carry home everything from bricks to candy. One new product, however, deserves special note: Bob Shaw has designed a 3 x 5 rug featuring an excellent likeness of Charlie. Obviously, it would be embarrassing for Charlie - make that humiliating - if slow sales forced us to slash the rug’s price, so step up and do your part.
今年由于我们又新加入了许多公司，所以我就不再详细说明在现场会提供什么产品供大家选购，总之从糖果到砖块应有尽有，不过有一项新产品值得特别向各位推荐，那就是Bob Shaw 专门以查理的形貌所设计3x5 的地毯，很显然的若这款地毯销售情形不佳而迫使我们降价的话，查理的面子可能会挂不住，所以请大家千万响应支持他。

GEICO will have a booth staffed by a number of its top counselors from around the country, all of them ready to supply you with auto insurance quotes. In most cases, GEICO will be able to offer you a special shareholder's discount (usually 8%). Bring the details of your existing insurance and check out whether we can save you some money.
GEICO公司会再度派出各地区最优秀的业务员，在会场设立摊位，随时提供股东们汽车保单的报价，在大多数的情况下，GEICO都可以提供给你一个相当优惠的股东折扣(大约8%)，各位记得将自己现在的投保资料带来，看看是否能帮自己省下一笔钱。
At the Omaha airport on Saturday, we will have the usual array of aircraft from Executive Jet available for your inspection. Just ask an EJA representative at the Civic about viewing any of these planes. If you buy what we consider an appropriate number of items during the weekend, you may well need your own plane to take them home.
星期六在奥玛哈机场，我们仍将展示一系列的机队供大家参观，请到市立体育馆向EJA的业务代表洽询参观的事宜，如果你股东会买了一大推相关产品，我相信你一定也需要用自己的飞机把它们带回家。

At Nebraska Furniture Mart, located on a 75-acre site on 72nd Street between Dodge and Pacific, we will again be having "Berkshire Weekend" pricing, which means we will be offering our shareholders a discount that is customarily given only to employees. We initiated this special pricing at NFM four years ago and sales during the "Weekend" grew from $5.3 million in 1997 to $9.1 million in 2000.
位于道奇街与太平洋街的内布拉斯加家具店NFM，再度会有Berkshire周特价，我们将特别提供给股东原先只有员工可以享有的优惠价，我们在四年前首次推出这种促销活动，营业额更一举从1997年的530万美元成长到2000年的910万美元。

To get the discount, you must make your purchases between Wednesday, April 25 and Monday, April 30 and also present your meeting credential. The period’s special pricing will even apply to the products of several prestige manufacturers that normally have ironclad rules against discounting but that, in the spirit of our shareholder weekend, have made an exception for you. We appreciate their cooperation. NFM is open from 10 a.m. to 9 p.m. on weekdays and 10 a.m. to 6 p.m. on Saturdays and Sundays.
想要享有折扣记得在4月25号星期三到4月30号星期一间采购，并出示股东开会证明，在这期间的特卖活动也适用于许多原本从不打折的顶级品牌，这可是为了股东会才特别破例，我们很感谢他们的配合，NFM的营业时间平日从早上10点到下午9点，星期六及星期日则从早上10点到下午6点。

Borsheim's - the largest jewelry store in the country except for Tiffany's Manhattan store - will have two shareholder-only events. The first will be a cocktail reception from 6 p.m. to 10 p.m. on Friday, April 27. The second, the main gala, will be from 9 a.m. to 5 p.m. on Sunday, April 29. Shareholder prices will be available Thursday through Monday, so if you wish to avoid the large crowds that will assemble on Friday evening and Sunday, come at other times and identify yourself as a shareholder. On Saturday, we will be open until 6 p.m. Borsheim's operates on a gross margin that is fully twenty percentage points below that of its major rivals, so the more you buy, the more you save (or at least that’s what my family always tells me).
波仙珠宝-全美单店营业额仅次于纽约曼哈顿蒂芬妮的珠宝店，在股东会期间将会有两场专为股东举办的展览会，第一场是在四月27日星期五的鸡尾酒会，时间从下午6点到晚上10点，第二场主秀则在四月29日星期天举行，从早上9点到下午6点，从星期四到星期一的股东会期间，波仙都将提供股东特惠价，所以如果你希望避开星期五晚上到星期天的拥挤人潮，你可以在其它的时间上门光顾，记得表明股东的身分，星期六我们会营业到晚上7点，波仙的营业毛利要比其它主要竞争对手要低20个百分点以上，所以买得越多省得越多，(这是我的家人告诉我的)

In the mall outside of Borsheim's, we will have local bridge experts available to play with our shareholders on Sunday. Bob Hamman, who normally is with us, will be in Africa this year. He has promised, however, to be on hand in 2002. Patrick Wolff, twice U.S. chess champion, will also be in the mall, taking on all comers - blindfolded! Last year, Patrick played as many as six games simultaneously - with his blindfold securely in place - and demolished his opponents.
照例在星期天下午波仙珠宝店外面大厅将举办的一场桥牌大赛，桥牌界的传奇性人物Bob Hamman，由于今年要到非洲所以不克出席，不过他已经承诺2002年一定会再度出席。Patrick Wolff-美国棋两度冠军，也会再度在会场蒙眼与所有挑战者对奕，去年他一口气同时与六位对手下棋，并获得全胜。

As if all this isn’t enough to test your skills, our Borsheim’s Olympiad this year will also include Bill Robertie, one of only two players to twice win the backgammon world championship. Backgammon can be a big money game, so bring along your stock certificates.
如果你认为这还不够看，今年的波仙奥林匹亚棋艺大赛将新增Bill Robertie-两度世界双陆旗冠军，双陆旗的赌注通常都不小，所以记得把你的Berkshire股票带来。

Gorat's - my favorite steakhouse - will again be open exclusively for Berkshire shareholders on Sunday, April 29, and will be serving from 4 p.m. until 10 p.m. Please remember that you can't come to Gorat's on Sunday without a reservation. To make one, call 402-551-3733 on April 2 (but not before). If Sunday is sold out, try Gorat's on one of the other evenings you will be in town. If you order a rare T-bone with a double order of hash browns, you will establish your credentials as an epicure.
我个人最爱的牛排馆-Gorat's为了Berkshire股东年会破例在4月29日星期天开门营业，从下午4点开始营业，一直到晚上10点，请记得星期天事先若没有订位的人请勿前往以免向隅，要预约请在四月2日以后打电话(402-551-3733)，若订不到星期天的位子，也可以试试其它晚上，如果你点的是丁骨牛排加上双份的牛肉丸的话，你就有资格被称作是老饕。

The usual baseball game will be held at Rosenblatt Stadium at 7 p.m. on Saturday night. This year the Omaha Golden Spikes will play the New Orleans Zephyrs. Ernie Banks is again going to be on hand to - bravely - face my fastball (once clocked at 95 mpm - miles per month).
例行的棒球赛将于星期六晚上7点在Rosenblatt体育馆举行，今年奥玛哈金钉鞋队将对上纽奥良西风队，Rrnie Banks将再度勇敢地站上打击区面对我的快速球(据说球速约在95英哩.. .. .. ..每个月!)

My performance last year was not my best: It took me five pitches to throw anything resembling a strike. And, believe me, it gets lonely on the mound when you can’t find the plate. Finally, I got one over, and Ernie lashed a line drive to left field. After I was yanked from the game, the many sports writers present asked what I had served up to Ernie. I quoted what Warren Spahn said after Willie Mays hit one of his pitches for a home run (Willie’s first in the majors): "It was a helluva pitch for the first sixty feet."
去年我的表现未达最佳状态，我投了五次才勉强丢出一记好球，相信我，当你在投手丘上却找不到本垒板时的感觉有多孤单，最后我勉强挤出一记好球，Ernie将之击到左外野，在我被拉出球场后，许多运动记者问我对上Ernie时作何感想?我引述Warren Spahn在被Willie Mays击出全垒打时所说的话(那是Willie大联盟的第一发全垒打)：「这真是一个好的开始。」

It will be a different story this year. I don’t want to tip my hand, so let’s just say Ernie will have to deal with a pitch he has never seen before.
今年的剧情将会不太一样，我将不会再透露我的球路，我只能说Ernie今年要面对的将是与以往截然不同的球路。

Our proxy statement contains instructions about obtaining tickets to the game and also a large quantity of other information that should help you enjoy your visit in Omaha. There will be plenty of action in town. So come for Woodstock Weekend and join our Celebration of Capitalism at the Civic.
股东会资料将告诉大家如何取得球赛入场的门票，以及大量有关奥玛哈的旅游资讯，股东会期间将有许多活动，所以一定要来参加资本家的伍斯达克嘉年华会。

二零零一                                                                                 Note: The following table appears in the printed Annual Report on the facing page of the Chairman's Letter and is referred to in that letter.附注：下表系董事长致股东信的参考资料，并载于年度报告的封面。

Berkshire's Corporate Performance vs. the S&P 500Berkshire vs S&P 500指数的比较表

　
 
Annual Percentage Change
 
　
 

Year
 
in Per-Share
　in Per-Share　 Book Value of　　Berkshire
　　　　　(1)　(1)　
 
in S&P 500
　in S&P 500　 with Dividends　 Included
　　　　　　　　　　　　　　　(2)　(2)　
 
Relative
　Relative　 Results
　　　　　　　　　　(1)-(2)
 

1965
 
23.8　23.
 
10.0　10.
 
13.8　13.
 

1966
 
20.3　20.
 
(11.7)
 
32.0　32.
 

1967
 
11.0　11.
 
30.9　30.
 
(19.9)
 

1968
 
19.0　19.
 
11.0　11.
 
8.0　8.
 

1969
 
16.2　16.
 
(8.4)
 
24.6　24.
 

1970
 
12.0　12.
 
3.9　3.
 
8.1　8.
 

1971
 
16.4　16.
 
14.6　14.
 
1.8　1.
 

1972
 
21.7　21.
 
18.9　18.
 
2.8　2.
 

1973
 
4.7　4.
 
(14.8)
 
19.5　19.
 

1974
 
5.5　5.
 
(26.4)
 
31.9　31.
 

1975
 
21.9　21.
 
37.2　37.
 
(15.3)
 

1976
 
59.3　59.
 
23.6　23.
 
35.7　35.
 

1977
 
31.9　31.
 
(7.4)
 
39.3　39.
 

1978
 
24.0　24.
 
6.4　6.
 
17.6　17.
 

1979
 
35.7　35.
 
18.2　18.
 
17.5　17.
 

1980
 
19.3　19.
 
32.3　32.
 
(13.0)
 

1981
 
31.4　31.
 
(5.0)
 
36.4　36.
 

1982
 
40.0　40.
 
21.4　21.
 
18.6　18.
 

1983
 
32.3　32.
 
22.4　22.
 
9.9　9.
 

1984
 
13.6　13.
 
6.1　6.
 
7.5　7.
 

1985
 
48.2　48.
 
31.6　31.
 
16.6　16.
 

1986
 
26.1　26.
 
18.6　18.
 
7.5　7.
 

1987
 
19.5　19.
 
5.1　
 
14.4　14.
 

1988
 
20.1　20.
 
16.6　16.
 
3.5　3.
 

1989
 
44.4　44.
 
31.7　31.
 
12.7　12.
 

1990
 
7.4　7.
 
(3.1)
 
10.5　10.
 

1991
 
39.6　39.
 
30.5　30.
 
9.1　9.
 

1992
 
20.3　20.
 
7.6　7.
 
12.7　12.
 

1993
 
14.3　14.
 
10.1　10.
 
4.2　4.
 

1994
 
13.9　13.
 
1.3　1.
 
12.6　12.
 

1995
 
43.1　43.
 
37.6　37.
 
5.5　5.
 

1996
 
31.8　31.
 
23.0　23.
 
8.8　8.
 

1997
 
34.1　34.
 
33.4　33.
 
.7　.
 

1998
 
48.3　48.
 
28.6　28.
 
19.7　19.
 

1999
 
.5　.
 
21.0　21.
 
(20.5)
 

2000
 
6.5　6.
 
(9.1)
 
15.6　15.
 

2001
 
(6.2)
 
(11.9)
 
5.7　5.
 

Average Annual Gain - 1965-2001
 
22.6%
 
11.0%
 
11.6%
 

Overall Gain - 1964-2001
 
194,936
 
4,742%
 
190,194
 

Notes: Data are for calendar years with these exceptions: 1965 and 1966, year ended 9/30; 1967, 15 months ended 12/31.
资料以历年制为准，除了1965年及1966年系至9/30;1967年则为至12/31的15个月。

Starting in 1979, accounting rules required insurance companies to value the equity securities they hold at market rather than at the lower of cost or market, which was previously the requirement. In this table, Berkshire's results through 1978 have been restated to conform to the changed rules. In all other respects, the results are calculated using the numbers originally reported.
从1979年开始，会计原则规定保险公司持有的股权投资必须采用市价法取代原先的成本与市价孰低法，在本表中，1978年以前的资料已依照该原则重新调整，除此之外，其它的数字皆依照原则的结果未作更动。

The S&P 500 numbers are pre-tax whereas the Berkshire numbers are after-tax. If a corporation such as Berkshire were simply to have owned the S&P 500 and accrued the appropriate taxes, its results would have lagged the S&P 500 in years when that index showed a positive return, but would have exceeded the S&P in years when the index showed a negative return. Over the years, the tax costs would have caused the aggregate lag to be substantial.
S&P 500指数系以税前为准，而Berkshire的数字则属于税后，如果Berkshire直接投资S&P 500并依此课征相关税负，则当S&P 500的报酬为正时，Berkshire的表现将不如S&P 500，相反地若S&P 500的报酬为负时，Berkshire的表现将优于S&P 500，就长期而言，Berkshire额外负担的税负成本将使得中间的差异日益扩大。

致Berkshire公司全体股东:

Berkshire’s loss in net worth during 2001 was $3.77 billion, which decreased the per-share book value of both our Class A and Class B stock by 6.2%. Over the last 37 years (that is, since present management took over) per-share book value has grown from $19 to $37,920, a rate of 22.6% compounded annually.*
本公司2001年的净值减少了37.7亿美元，每股A股或B股的帐面净值减少了6.2%，累计过去37年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的37,920美元，年复合成长率约为22.6%*。

*All figures used in this report apply to Berkshire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30th that of the A.
*1在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股则拥有A级普通股三十分之一的权利。

Per-share intrinsic grew somewhat faster than book value during these 37 years, and in 2001 it probably decreased a bit less. We explain intrinsic value in our Owner’s Manual, which begins on page 62. I urge new shareholders to read this manual to become familiar with Berkshire’s key economic principles.
过去37年以来，每股实质价值成长的速度一直高于帐面净值增加的幅度，不过时至2001年情况可能有所改变，有关实质价值的说明请参见62页的股东手册，我建议新加入的股东多看看这本手册，如此方能对Berkshire的一些主要经营原则有所了解。

Two years ago, reporting on 1999, I said that we had experienced both the worst absolute and relative performance in our history. I added that "relative results are what concern us," a viewpoint I’ve had since forming my first investment partnership on May 5, 1956. Meeting with my seven founding limited partners that evening, I gave them a short paper titled "The Ground Rules" that included this sentence: "Whether we do a good job or a poor job is to be measured against the general experience in securities." We initially used the Dow Jones Industrials as our benchmark, but shifted to the S&P 500 when that index became widely used. Our comparative record since 1965 is chronicled on the facing page; last year Berkshire’s advantage was 5.7 percentage points.

两年前，在1999年的报告中，我曾提到当时「我们经历了有史以来最惨烈的表现，不论是从绝对或相对的角度来看」，我还说「我们比较重视相对的结果」，这个观念从我在1956年5/5成立第一个投资合伙事业时就已成形，犹记得当天晚上，我与7位有限合伙人开会时，我给了在场的每个人一张便条纸，上面罗列了一些「基本原则」，其中有一条是这样写的：「我们的成绩到底好不好，要看整体股市表现而定」，一开始我们是以道琼工业指数为标竿，后来则改用接受度较高的S&P 500指数，两者从1965年迄今的比较记录列示在年报的首页上，去年Berkshire以5.7%的差距胜出。
Some people disagree with our focus on relative figures, arguing that "you can’t eat relative performance." But if you expect - as Charlie Munger, Berkshire’s Vice Chairman, and I do - that owning the S&P 500 will produce reasonably satisfactory results over time, it follows that, for long-term investors, gaining small advantages annually over that index must prove rewarding. Just as you can eat well throughout the year if you own a profitable, but highly seasonal, business such as See’s (which loses considerable money during the summer months) so, too, can you regularly feast on investment returns that beat the averages, however variable the absolute numbers may be.
有些人并不认同我们将重点摆在相对数字的做法，认为"相对绩效并不保证就能获利"，但如果你抱持与查理跟我本人一样的观念，预期S&P 500指数长期的绩效应该会相当不错的话，则就长期而言，只要投资人的绩效每年都能比它好一点，其结果自然而然也颇为可观，就如同喜斯糖果那般，虽然一年四季营运波动很大(基本上每年夏天它都是在亏钱)，但每年结算都获利的公司，拥有它保证可以让你躺着收钱。

Though our corporate performance last year was satisfactory, my performance was anything but. I manage most of Berkshire’s equity portfolio, and my results were poor, just as they have been for several years. Of even more importance, I allowed General Re to take on business without a safeguard I knew was important, and on September 11th, this error caught up with us. I’ll tell you more about my mistake later and what we are doing to correct it.
虽然去年我们企业的整体表现还算令人满意，但我个人的表现却刚好相反，我本身管理Berkshire大部分的股票投资，但其成绩却乏善可陈，而且这情况已经维持好几年了，更要命的是，我竟允许通用再保在没有安全保障的情况下做生意，而911事件的发生正好把我们逮个正着，后面我还会向大家报告我所犯的错误，以及我们要如何来改正它。

Another of my 1956 Ground Rules remains applicable: "I cannot promise results to partners." But Charlie and I can promise that your economic result from Berkshire will parallel ours during the period of your ownership: We will not take cash compensation, restricted stock or option grants that would make our results superior to yours.
另外还有一条1956年的基本原则，现在看来倒还适用，那就是「我个人不敢保证绩效」，不过查理跟我可以向各位保证，在持有Berkshire股票期间所得到的效益，绝对会与我们本身的相同，我们不会靠领取奖金或股票选择权等方式，使得我们所得到的利益优于各位。

Additionally, I will keep well over 99% of my net worth in Berkshire. My wife and I have never sold a share nor do we intend to. Charlie and I are disgusted by the situation, so common in the last few years, in which shareholders have suffered billions in losses while the CEOs, promoters, and other higher-ups who fathered these disasters have walked away with extraordinary wealth. Indeed, many of these people were urging investors to buy shares while concurrently dumping their own, sometimes using methods that hid their actions. To their shame, these business leaders view shareholders as patsies, not partners.

此外，我也将继续将个人99%以上的身家财产摆在Berkshire上面，我和我内人过去从来就没有卖过任何Berkshire的股份，而且以后也没有打算要卖，查理跟我对于近年来，许多让公司亏损累累的经理人与公司高层，竟然能够带着丰厚的利润弃股东们扬长而去感到相当不耻，这些人在公开场合鼓励投资人高价买进公司股份的同时，自己却暗中将股票倒到市场上，这些可耻的企业领导人简直把股东当作是自己的禁脔而非伙伴。
Though Enron has become the symbol for shareholder abuse, there is no shortage of egregious conduct elsewhere in corporate America. One story I’ve heard illustrates the all-too-common attitude of managers toward owners: A gorgeous woman slinks up to a CEO at a party and through moist lips purrs, "I’ll do anything - anything - you want. Just tell me what you would like." With no hesitation, he replies, "Reprice my options."
虽然恩隆公司已经成为企业弊案的典型案例，但这种贪婪的行为在美国企业当中却绝非特例，就像我个人就曾听过一个故事，显示经理人心中普遍存在对待股东的一种心态，在一场宴会上，有位美丽媱娇的女士溜到一位总裁的面前，用那性感的嘴唇说到，「只要你想要，我愿意为你做任何事!」，只见这位总裁立刻毫不犹豫地回答说：「那好，请给我更多的股票选择权!」

One final thought about Berkshire: In the future we won’t come close to replicating our past record. To be sure, Charlie and I will strive for above-average performance and will not be satisfied with less. But two conditions at Berkshire are far different from what they once were: Then, we could often buy businesses and securities at much lower valuations than now prevail; and more important, we were then working with far less money than we now have. Some years back, a good $10 million idea could do wonders for us (witness our investment in Washington Post in 1973 or GEICO in 1976). Today, the combination of ten such ideas and a triple in the value of each would increase the net worth of Berkshire by only ? of 1%. We need "elephants" to make significant gains now - and they are hard to find.
最后再补充一点看法，那就是往后Berkshire将很难再维持以往的盛况，虽然查理跟我仍然会尽力维持水准以上的表现，且永远不会感到自满，无奈现今有两个环境条件已与过去截然不同，在以前我们可以很容易的就买到许多价廉物美的公司及股票，同时我们当时运用的资金规模也比现在少得多，许多年以前，一个1,000万美金的好案子就可以让我们雀跃不已，比如说像1973年的华盛顿邮报或1976年的GEICO保险等投资，然而时至今日，就算是30个这样的案子，也仅仅能让Berkshire的净值增加0.25%而已，我们需要像大象般的大案子才有可能使得净值大幅成长，只不过这样的个案实在是少之又少。

On the positive side, we have as fine an array of operating managers as exists at any company. (You can read about many of them in a new book by Robert P. Miles: The Warren Buffett CEO.) In large part, moreover, they are running businesses with economic characteristics ranging from good to superb. The ability, energy and loyalty of these managers is simply extraordinary. We now have completed 37 Berkshire years without having a CEO of an operating business elect to leave us to work elsewhere.
从好的方面来看，我们拥有一群坚强的经理人阵容，(大家可以在Robert Miles刚出版的新书-华伦巴菲特的经理人-中，读到更多有关他们的事迹)，而且大部分由他们所经营的事业，其竞争力在各自的产业中，可以说都是数一数二的，他们的能力、精力与忠诚度都属最优等，个人经营Berkshire 37年以来，旗下还没有任何一位经理人离开我们跳槽到别家公司的。

Our star-studded group grew in 2001. First, we completed the purchases of two businesses that we had agreed to buy in 2000 - Shaw and Johns Manville. Then we acquired two others, MiTek and XTRA, and contracted to buy two more: Larson-Juhl, an acquisition that has just closed, and Fruit of the Loom, which will close shortly if creditors approve our offer. All of these businesses are led by smart, seasoned and trustworthy CEOs.
我们星光满布的经营团队在2001年又增添了一群生力军，首先我们完成了二件从2000年就开始谈的案子，Shaw地毯及Johns Manville，此外又买下了另外两家公司-MiTek及XTRA，同时手上还有其它两件个案-Larson-Juhl最近才刚结案以及Fruit of the Loom纺织，后者只等债权人会议通过我们的提案，以上这些企业皆由兼具智能、理性以及值得信赖的CEO所领导。

Additionally, all of our purchases last year were for cash, which means our shareholders became owners of these additional businesses without relinquishing any interest in the fine companies they already owned. We will continue to follow our familiar formula, striving to increase the value of the excellent businesses we have, adding new businesses of similar quality, and issuing shares only grudgingly.
此外，去年所有的购并案全部皆以现金买断，这代表我们的股东可以不必牺牲原先就拥有优秀企业的任何权益，同时还能成为这些新加入公司的幕后老板，往后我们仍将继续维持这个策略，在想尽办法增加现有优秀企业的价值，以及寻找新的优秀企业加入的同时，还能不轻易的增加流通在外的股份。

Acquisitions of 2001 2001年的购并案

A few days before last year’s annual meeting, I received a heavy package from St. Louis, containing an unprepossessing chunk of metal whose function I couldn’t imagine. There was a letter in the package, though, from Gene Toombs, CEO of a company called MiTek. He explained that MiTek is the world’s leading producer of this thing I’d received, a "connector plate," which is used in making roofing trusses. Gene also said that the U.K. parent of MiTek wished to sell the company and that Berkshire seemed to him the ideal buyer. Liking the sound of his letter, I gave Gene a call. It took me only a minute to realize that he was our kind
of manager and MiTek our kind of business. We made a cash offer to the U.K. owner and before long had a deal.
就在去年股东会的前几天，我收到从圣路易寄来的一个大包裹，里面装了一块看不出做何用途的金属，包裹里还有一封信，署名Gene Toombs-他是一家叫做MiTek公司的总裁，他解释说MiTek是专门制造这玩意儿的世界级领导厂商，也就是用来做屋梁的连接板，他进一步表示MiTek的英国母公司有意出售这家公司，他认为Berkshire应该是最合适的买家，我相当欣赏他写这封信的语气，所以当下打电话给他，几分钟的谈话，我就发觉他是属于我们类型的经理人，而MiTek也是我们想要的公司类型，于是我们报了一个价给其英国母公司，没多久后就正式成交。

Gene’s managerial crew is exceptionally enthusiastic about the company and wanted to participate in the purchase. Therefore, we arranged for 55 members of the MiTek team to buy 10% of the company, with each putting up a minimum of $100,000 in cash. Many borrowed money so they could participate.

Gene所带领的经营团队对于公司相当有信心，愿意参与这次的购并交易，所以最后我们安排由55位经营成员取得10%的股权，每人最低的投资金额为10万美元，其中很多人都是靠借钱参与投资。
As they would not be if they had options, all of these managers are true owners. They face the downside of decisions as well as the upside. They incur a cost of capital. And they can’t "reprice" their stakes: What they paid is what they live with.
这些没有认股选择权的经理人真的称得上是公司的拥有者，完全站在股东的立场设想，他们真正愿意与公司同甘共苦，自己承担资金成本，也没有办法让自己的认股价格重新修正，要怎么收获先怎么栽。

Charlie and I love the high-grade, truly entrepreneurial attitude that exists at MiTek, and we predict it will be a winner for all involved.
查理跟我欣赏存在MiTek的这种高格调、真正的企业家精神，我们相信这绝对可以创造出多赢的局面。
In early 2000, my friend, Julian Robertson, announced that he would terminate his investment partnership, Tiger Fund, and that he would liquidate it entirely except for four large holdings. One of these was XTRA, a leading lessor of truck trailers. I then called Julian, asking whether he might consider selling his XTRA block or whether, for that matter, the company’s management might entertain an offer for the entire company. Julian referred me to Lew Rubin, XTRA’s CEO. He and I had a nice conversation, but it was apparent that no deal was to be done.

2000年初，我的好朋友Julian Robertson宣布将结束其投资合伙事业-老虎基金，除了四项主要的持股投资之外，其余的投资将全部予以结算，其中包含了XTRA公司-货柜拖车租赁的领导业者，于是我打电话给Julian问到他及公司的经营团队是否有意将整家公司出售，Julian建议我直接连络XTRA的总裁-Lew Rubin，后来我们两个人相谈甚欢，可惜的是双方似乎很难达成交易。
Then in June 2001, Julian called to say that he had decided to sell his XTRA shares, and I resumed conversations with Lew. The XTRA board accepted a proposal we made, which was to be effectuated through a tender offer expiring on September 11th. The tender conditions included the usual "out," allowing us to withdraw if the stock market were to close before the offer’s expiration. Throughout much of the 11th, Lew went through a particularly wrenching experience: First, he had a son-in-law working in the World Trade Center who couldn’t be located; and second, he knew we had the option of backing away from our purchase. The story ended happily: Lew’s son-in-law escaped serious harm, and Berkshire completed the transaction.
之后到了2001年六月，Julian打电话给我表示他决定出售XTRA的股份，于是我恢复与Lew的谈判，终于XTRA的董事会接受了我们的提案，由我们对外提出公开收购，截止日订为9/11，这项公开收购案订有一项例行条款，约定买方有退出的权利，如果在收购截止日前，股市有重大异常的变化，谁也没想到9/11当天，Lew竟经历了上上下下煎熬的难忘经验，一开始，他有一位在纽约世贸中心上班的女婿下落不明，其次，他很清楚我们有权取消整个收购案，所幸最后故事有个圆满的结局，Lew的女婿侥幸逃过一劫，而Berkshire则如原先预期完成了收购案。

Trailer leasing is a cyclical business but one in which we should earn decent returns over time. Lew brings a new talent to Berkshire, and we hope to expand in leasing.
货柜车租赁业的景气循环相当明显，不过它仍是一个我们预期能够得到长期合理报酬的行业，Lew为Berkshire带来一项我们欠缺的Know-how，我们期望将来能够扩张在租赁业的布局。

On December 3rd, I received a call from Craig Ponzio, owner of Larson-Juhl, the U.S. leader in custom-made picture frames. Craig had bought the company in 1981 (after first working at its manufacturing plant while attending college) and thereafter increased its sales from $3 million to $300 million. Though I had never heard of Larson-Juhl before Craig’s call, a few minutes talk with him made me think we would strike a deal. He was straightforward in describing the business, cared about who bought it, and was realistic as to price. Two days later, Craig and Steve McKenzie, his CEO, came to Omaha and in ninety minutes we reached an agreement. In ten days we had signed a contract.

12/3我收到Larson-Juhl老板Craig Ponzio的一通电话，该公司是美国订制相框的领导厂商，Craig是在1981年买下这家公司的(这也是他大学时代打工的第一家公司)，自此公司的营业额从300万美元成长到3亿美元，虽然在Craig打电话给我之前，我完全不知道有这家公司的存在，不过几分钟的谈话令我感到我们很有可能达成交易，他对于企业现况坦率直言，同时也在乎买方的来历背景，至于所提价格也相当合理，两天之后，Craig跟公司总裁Steve McKenzie来到奥玛哈，前后只花了90分钟双方就达成共识，并于十天后正式签订合约。
Larson-Juhl serves about 18,000 framing shops in the U.S. and is also the industry leader in Canada and much of Europe. We expect to see opportunities for making complementary acquisitions in the future.

Larson-Juhl提供服务给全美18,000家相馆，同时也是加拿大及欧洲大部分地区的领导厂商，我们期望在不久的未来还有类似的购并机会。
As I write this letter, creditors are considering an offer we have made for Fruit of the Loom. The company entered bankruptcy a few years back, a victim both of too much debt and poor management. And, a good many years before that, I had some Fruit of the Loom experience of my own.
在我写这封信的同时，Fruit of the Loom的债权人正在考虑接受我们的提案，这家公司由于负债过于沉重加上管理不当，在几年前宣布破产，而事实上，在许多年以前，我个人也曾与Fruit of the Loom有过接触的经验。

In August 1955, I was one of five employees, including two secretaries, working for the three managers of Graham-Newman Corporation, a New York investment company. Graham-Newman controlled Philadelphia and Reading Coal and Iron ("P&R"), an anthracite producer that had excess cash, a tax loss carryforward, and a declining business. At the time, I had a significant portion of my limited net worth invested in P&R shares, reflecting my faith in the business talents of my bosses, Ben Graham, Jerry Newman and Howard (Micky) Newman.
1955年八月，当时我还是纽约一家投资公司，葛拉罕-纽曼公司仅有的五位员工之一(包含三位经理加上二位秘书)，当时葛拉罕-纽曼所掌控一家专门生产无烟煤，名叫费城碳铁的公司(P&R)，该公司拥有多余的资金、可扣抵的税务亏损以及日益下滑的业务，在当时我将个人有限资金的大部份投资在这家公司上头，此举充分反映我对老板们-包含班哲明葛拉罕、杰瑞纽曼以及霍华纽曼等人投资哲学的信仰。

This faith was rewarded when P&R purchased the Union Underwear Company from Jack Goldfarb for $15 million. Union (though it was then only a licensee of the name) produced Fruit of the Loom underwear. The company possessed $5 million in cash - $2.5 million of which P&R used for the purchase - and was earning about $3 million pre-tax, earnings that could be sheltered by the tax position of P&R. And, oh yes: Fully $9 million of the remaining $12.5 million due was satisfied by non-interest-bearing notes, payable from 50% of any earnings Union had in excess of $1 million. (Those were the days; I get goosebumps just thinking about such deals.)

这样的信仰在P&R决定以1,500万美元从Jack Goldfarb手中买下联合内衣公司时获得了丰厚的回报，联合公司(虽然它只是被授权生产的厂商)当时专门生产Fruit of the Loom的内衣，该公司拥有500万美元的现金-其中250万美元被P&R用来购并用，另外每年约300万美元的税前盈余，将因P&R本身亏损部位而得到免税的利益，另外更棒的是在剩下的1,250万美元尾款当中，有整整900万美元是开出免付利息的票据，由联合公司日后年度盈余超过100万美元时提拨半数支付，(真是令人怀念的往日时光，每当想起这类的交易就让我雀跃不已)。
Subsequently, Union bought the licensor of the Fruit of the Loom name and, along with P&R, was merged into Northwest Industries. Fruit went on to achieve annual pre-tax earnings exceeding $200 million.
后来，联合公司进一步买下Fruit of the Loom的商标权，同时跟着P&R并入西北工业，Fruit后来累计的税前获利超过2亿美元。

John Holland was responsible for Fruit’s operations in its most bountiful years. In 1996, however, John retired, and management loaded the company with debt, in part to make a series of acquisitions that proved disappointing. Bankruptcy followed. John was then rehired, and he undertook a major reworking of operations. Before John’s return, deliveries were chaotic, costs soared and relations with key customers deteriorated. While correcting these problems, John also reduced employment from a bloated 40,000 to 23,000. In short, he’s been restoring the old Fruit of the Loom, albeit in a much more competitive environment.

John Holland是Fruit营运最辉煌时期的经营者，然而John却于1996年宣布退休，之后的管理当局竟大幅举债，其中部份的资金被用来购并一堆没有效益的公司，公司最后终于宣布破产，John后来又回锅走马上任，并对于营运进行大幅改造，在John回来之前，交货总是一团混乱、成本激增、与主要客户之间的关系日益恶化，而John在陆续解决这些问题之后，也开始裁减公司不当的冗员，将员工人数由40,000人减为23,000人，简言之，他又让Fruit of the Loom回复到原来的模样，只是外在的产业环境竞争却日益激烈。
Stepping into Fruit’s bankruptcy proceedings, we made a proposal to creditors to which we attached no financing conditions, even though our offer had to remain outstanding for many months. We did, however, insist on a very unusual proviso: John had to be available to continue serving as CEO after we took over. To us, John and the brand are Fruit’s key assets.
在Fruit进入破产程序之后，我们提出了一项提案，其中并无任何融资计画，且有效期间长达数个月，不过在此同时我们也坚持几项特殊的条款，首先我们要求在接手之后，John必须继续担任公司的总裁，因为在我们看来，John跟Fruit的商标是该公司最主要的资产。

I was helped in this transaction by my friend and former boss, Micky Newman, now 81. What goes around truly does come around.

在这项合并交易中，我得到昔日老板兼好友，现年61岁的麦克纽曼相当多的帮助，我们的友情常在。

Our operating companies made several "bolt-on" acquisitions during the year, and I can’t resist telling you about one. In December, Frank Rooney called to tell me H.H. Brown was buying the inventory and trademarks of Acme Boot for $700,000.

我们旗下的子公司在去年也进行了几项购并案，其中有一件我一定要提，去年十二月，Frank Rooney 打电话给我表示H.H. Brown正打算以70万美元买下Acme 靴子的存货及商标权。
That sounds like small potatoes. But - would you believe it? - Acme was the second purchase of P&R, an acquisition that took place just before I left Graham-Newman in the spring of 1956. The price was $3.2 million, part of it again paid with non-interest bearing notes, for a business with sales of $7 million.
这听起来好象没什么大不了， 但你知道吗? Acme是继P&R之后的第二件购并案，时间大约是我在1956年春天离开葛拉罕-纽曼公司之前不久，当时的交易价格是320万美元，其中也包含无息分期支票，买下年营业额700万美元的公司。

After P&R merged with Northwest, Acme grew to be the world’s largest bootmaker, delivering annual profits many multiples of what the company had cost P&R. But the business eventually hit the skids and never recovered, and that resulted in our purchasing Acme’s remnants.
而在P&R与西北公司合并后，Acme持续成长跃居全世界规模最大的靴子制造商，每年的获利是当初P&R投资成本的好几倍，不过后来该公司的营运还是不免逐渐走下坡，乃至于剩下最后残存的资产被我们所收买。

In the frontispiece to Security Analysis, Ben Graham and Dave Dodd quoted Horace: "Many shall be restored that now are fallen and many shall fall that are now in honor." Fifty-two years after I first read those lines, my appreciation for what they say about business and investments continues to grow.
在葛拉罕与陶德所着的证券分析一书中，开头引用Horace的一句名言，「十年河东，十年河西。」在我头一次听到这句话的52年后，我个人对于这句话描写企业与投资真理的体认日益加深。

In addition to bolt-on acquisitions, our managers continually look for ways to grow internally. In that regard, here’s a postscript to a story I told you two years ago about R.C. Willey’s move to Boise. As you may remember, Bill Child, R.C. Willey’s chairman, wanted to extend his home-furnishings operation beyond Utah, a state in which his company does more than $300 million of business (up, it should be noted, from $250,000 when Bill took over 48 years ago). The company achieved this dominant position, moreover, with a "closed on Sunday" policy that defied conventional retailing wisdom. I was skeptical that this policy could succeed in Boise or, for that matter, anyplace outside of Utah. After all, Sunday is the day many consumers most like to shop.

除了这些附带的购并案，我们的经理人仍然不断的寻找内部自我成长的方法，关于这一点，这里有一则两年前我告诉各位R.C.Willey进军Boise的后话，大家应该还记得，R.C.Willey的董事长Bill Child想将业务拓展到犹他州以外的地区，他的公司在当地的年营业额超过3亿美元，(Bill在48年前接手时的营业额只有25万美元)，这家公司是在违反商业法则，坚持星期天不营业的情形下达成独霸的地位，然而我还是很怀疑这项原则是否也能在Boise地区或是任何犹他州以外的地方成功推行，毕竟星期天是许多消费者出外血拼的日子。
Bill then insisted on something extraordinary: He would invest $11 million of his own money to build the Boise store and would sell it to Berkshire at cost (without interest!) if the venture succeeded. If it failed, Bill would keep the store and eat the loss on its disposal. As I told you in the 1999 annual report, the store immediately became a huge success - and it has since grown.
Bill 当时很坚持一件特别的事，那就是他希望先用自己的钱投资1,100万美元成立Boise的分店，然后等分店经营顺遂后，再以成本卖回给Berkshire(而且不算利息)，而万一如果失败，Bill将自行负担开店的损失，而正如我在1999年年报中提过的，该店事后证明相当成功而且业绩持续成长。

Shortly after the Boise opening, Bill suggested we try Las Vegas, and this time I was even more skeptical. How could we do business in a metropolis of that size and be closed on Sundays, a day that all of our competitors would be exploiting? Buoyed by the Boise experience, however, we proceeded to locate in Henderson, a mushrooming city adjacent to Las Vegas.

在Boise分店开张后不久，Bill又建议可以到Las Vegas试试看，这次我则抱持更怀疑的态度，我们怎么可能在这个规模如此大的城市开店，同时还在同业大发利市的星期天打烊，不过受到Boise经验的鼓舞，我们还是决定进军Hendersn-一个邻近Las Vegas的新兴城市。
The result: This store outsells all others in the R.C. Willey chain, doing a volume of business that far exceeds the volume of any competitor and that is twice what I had anticipated. I cut the ribbon at the grand opening in October - this was after a "soft" opening and a few weeks of exceptional sales - and, just as I did at Boise, I suggested to the crowd that the new store was my idea.

结果是：这家店的营业额打破R.C.Willey其它连锁店的记录，业绩比当地所有的竞争对手都还要好，业绩达到我原先预估的两倍，在进行几个礼拜的试卖会后，我受邀在10月的正式开幕仪式莅临剪彩，而如同我在Boise时一样，向在场来宾暗示这是我个人的构想。
It didn’t work. Today, when I pontificate about retailing, Berkshire people just say, "What does Bill think?" (I’m going to draw the line, however, if he suggests that we also close on Saturdays.)
不过此举显然无效，现在每当我对于零售业侃侃而谈时，公司的人一定会说，喔!那Bill又是怎么想呢? (不过我必须先说明我最后的底线，如果他敢提议星期六也休息就给我走着瞧)。

The Economics of Property/Casualty Insurance产物意外险的经营
Our main business - though we have others of great importance - is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most critical of all, the long-term outlook for both of these factors.
我们最主要的本业就是保险，当然其它事业也相当重要，想要了解Berkshire，你就必须知道如何去评估一家保险公司，其中主要的关键因素有(1)这个行业所能产生的浮存金数量(2)以及它的成本(3)最重要的是这些因素长期的展望。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. This pleasant activity typically carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an "underwriting loss," which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.
首先浮存金是一项我们持有但却不属于我们的资金，在保险公司的营运中，浮存金产生的原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以支应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本远高于货币市场利率时，它就像是一颗极酸的柠檬。

Historically, Berkshire has obtained its float at a very low cost. Indeed, our cost has been less than zero in about half of the years in which we've operated; that is, we've actually been paid for holding other people's money. Over the last few years, however, our cost has been too high, and in 2001 it was terrible.

根据过去的记录显示，Berkshire 一向能够以很低的成本取得浮存金，确实在Berkshire经营的这些年来，有半数以上的年头，浮存金的成本甚至低于零，也就是说这实际上等于是别人要付费请我们帮他们保管资金，然而最近这几年，我们的成本大幅飙涨，而2001年尤其恐怖。
The table that follows shows (at intervals) the float generated by the various segments of Berkshire's insurance operations since we entered the business 35 years ago upon acquiring National Indemnity Company (whose traditional lines are included in the segment "Other Primary"). For the table we have calculated our float - which we generate in large amounts relative to our premium volume - by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting insurance-related receivables, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Got that?)
下表中所显示的数字是，Berkshire自取得国家产险公司经营权，进入保险事业35年以来所贡献的浮存金，(其中传统业务包含在其它主险项下)，在这张计算浮存金的表中，(相对于收到的保费收入，我们持有的浮存金部位算是相当大的)我们将所有的损失准备、损失费用调整准备、再保预先收取的资金与未赚取保费加总后，再扣除应付佣金、预付购并成本、预付税负以及取得再保业务的相关递延费用，得出浮存金的数额，弄清楚了吗??

Yearend Float (in $ millions)
 

Year
 
GEICO
 
General Re
 
OtherReinsurance
 
Other Primary
 
Total
 

1967
 
 
 
 
 
 
 
20
 
20
 

1977
 
 
 
 
 
40
 
131
 
171
 

1987
 
 
 
 
 
701
 
807
 
1,508
 

1997
 
2,917
 
 
 
4,014
 
455
 
7,386
 

1998
 
3,125
 
14,909
 
4,305
 
415
 
22,754
 

1999
 
3,444
 
15,166
 
6,285
 
403
 
25,298
 

2000
 
3,943
 
15,525
 
7,805
 
598
 
27,871
 

2001
 
4,251
 
19,310
 
11,262
 
685
 
35,508
 

Last year I told you that, barring a mega-catastrophe, our cost of float would probably drop from its 2000 level of 6%. I had in mind natural catastrophes when I said that, but instead we were hit by a man-made catastrophe on September 11th - an event that delivered the insurance industry its largest loss in history. Our float cost therefore came in at a staggering 12.8%. It was our worst year in float cost since 1984, and a result that to a significant degree, as I will explain in the next section, we brought upon ourselves.
去年我曾告诉各位，除非发生什么重大的灾难，否则我们浮存金的成本将可由2000年6%的高档往下降，当时我心里想到的是自然天灾之类的意外，但任谁也想不到发生的竟是911恐怖份子攻击事件这样的人祸，它造成保险业有史以来最重大的损失，也让我们的浮存金成本大举飙高到12.8%，这是自1984年以来最惨的记录，而且大部分的责任，在后段我还会再详加解释，要归咎于我们自己。

If no mega-catastrophe occurs, I - once again - expect the cost of our float to be low in the coming year. We will indeed need a low cost, as will all insurers. Some years back, float costing, say, 4% was tolerable because government bonds yielded twice as much, and stocks prospectively offered still loftier returns. Today, fat returns are nowhere to be found (at least we can't find them) and short-term funds earn less than 2%. Under these conditions, each of our insurance operations, save one, must deliver an underwriting profit if it is to be judged a good business. The exception is our retroactive reinsurance operation (a business we explained in last year's annual report), which has desirable economics even though it currently hits us with an annual underwriting loss of about $425 million.
如果没有发生重大的灾害，我个人再度预期，明年度我们的浮存金成本将会大幅降低，我们确实极需要降低成本，我想其它业者也是一样，几年前，4%的浮存金成本还算可以忍受，因为当时政府的公债利率是其两倍以上，而股市预期也能提供相当不错的报酬，然而时至今日，丰厚的投资报酬已不复见(至少我们无法找到)，短期资金的报酬低于2%，在这种情况下，我们旗下所有的保险事业，除了追溯再保险业务(去年的年报曾详加介绍过，虽然目前一年让我们必须额外承担4.25亿美元的承保损失，但就长期而言却有相当的经济价值)，都必须能够创造出承保获利才能称得上是好公司。

Principles of Insurance Underwriting保险业承保的几项原则
When property/casualty companies are judged by their cost of float, very few stack up as satisfactory businesses. And interestingly - unlike the situation prevailing in many other industries - neither size nor brand name determines an insurer's profitability. Indeed, many of the biggest and best-known companies regularly deliver mediocre results. What counts in this business is underwriting discipline. The winners are those that unfailingly stick to three key principles:
当产物意外险公司以浮存金成本来判定公司的好坏时，很少有公司的成绩可以令人感到满意，而有趣的是，不像一些产业普遍存在的现象，规模或品牌并非保险公司获利的关键，事实上许多最大最有名的保险公司其成绩表现大多平平，这个行业最要紧的是承保的纪律原则，真正成功的公司必须坚守以下三项重要原则：

1.They accept only those risks that they are able to properly evaluate (staying within their circle of competence) and that, after they have evaluated all relevant factors including remote loss scenarios, carry the expectancy of profit. These insurers ignore market-share considerations and are sanguine about losing business to competitors that are offering foolish prices or policy conditions.

1.他们只接受能够妥善衡量的风险，(也就是谨守自己的能力范围)，在谨慎评估所有相关因素，包含最微小的损失可能在内，然后得出获利的期望值，这些公司从来不以市场占有率为意，同时在看到同业为抢夺客户而杀价竞争或提供不合理的理赔条件时，也不会跃跃欲试。

2.They limit the business they accept in a manner that guarantees they will suffer no aggregation of losses from a single event or from related events that will threaten their solvency. They ceaselessly search for possible correlation among seemingly-unrelated risks.

2.要严格限制承接的业务内容，以确保公司不会因为单一意外及其连带事件而累积理赔损失，导致公司的清偿能力发生疑虑，同时不遗余力地寻找任何看似不相关的风险间，彼此可能的潜在关联。

3.They avoid business involving moral risk: No matter what the rate, trying to write good contracts with bad people doesn't work. While most policyholders and clients are honorable and ethical, doing business with the few exceptions is usually expensive, sometimes extraordinarily so.

3.他们避免涉入可能引发道德风险的业务，不管其费率多么诱人，不要妄想在坏人身上占到任何便宜，大部分的客户其诚信都值得信赖，所以不必要与有道德疑虑的人打交道，事后证明通常其成本远比想象中的高。

The events of September 11th made it clear that our implementation of rules 1 and 2 at General Re had been dangerously weak. In setting prices and also in evaluating aggregation risk, we had either overlooked or dismissed the possibility of large-scale terrorism losses. That was a relevant underwriting factor, and we ignored it.
911事件的发生证明在通用再保，我们对于第一条与第二条的执行力相当的差，在设定费率及评估累计的可能风险，我们不是忽略就是低估了大规模恐怖事件发生的可能性，那是一项相当要紧的承保因素，偏偏我们竟把它给忽略了。

In pricing property coverages, for example, we had looked to the past and taken into account only costs we might expect to incur from windstorm, fire, explosion and earthquake. But what will be the largest insured property loss in history (after adding related business-interruption claims) originated from none of these forces. In short, all of us in the industry made a fundamental underwriting mistake by focusing on experience, rather than exposure, thereby assuming a huge terrorism risk for which we received no premium.

举例来说，产险在订定价格时，我们通常都会参酌过去的经验，只预期可能会遇到过去发生诸如飓风、火灾、爆炸及地震等灾害，不过谁也没有想到产险史上最大的理赔损失(在加上其它相关的业务中断理赔)与上述原因都没有任何关系，简言之，产险业的所有从业人员都犯下了最基本的承保错误，那就是过于注重过去的经验，而未顾及真正暴露的风险，其结果导致我们在承担庞大的恐怖份子活动风险的同时，却没有为此收取任何一分的保费。

Experience, of course, is a highly useful starting point in underwriting most coverages. For example, it's important for insurers writing California earthquake policies to know how many quakes in the state during the past century have registered 6.0 or greater on the Richter scale. This information will not tell you the exact probability of a big quake next year, or where in the state it might happen. But the statistic has utility, particularly if you are writing a huge statewide policy, as National Indemnity has done in recent years.
经验，当然是承保大部分风险最有用的出发点，举例来说，保险公司在承保加州地震险时，绝对必须了解过去一百年来，当地地震规模在芮氏六级以上发生的次数，虽然这类信息无法明确地告诉你明年发生地震的确实机率，或者是可能发生的地点，但统计数字还是有其效用，尤其当你像国家产险最近几年那样，承受整个州的地震险时更是如此。

At certain times, however, using experience as a guide to pricing is not only useless, but actually dangerous. Late in a bull market, for example, large losses from directors and officers liability insurance ("D&O") are likely to be relatively rare. When stocks are rising, there are a scarcity of targets to sue, and both questionable accounting and management chicanery often go undetected. At that juncture, experience on high-limit D&O may look great.

不过在某些时候，运用过去的经验当作依据来订定保费价格，不但没有用，有时反而相当的危险，举例来说，前几年股市正旺时，董事及经理人的责任险(D&O)实际上发生重大损失的机率少之又少，当股票价格上涨，很难找到适合的目标可以告，而此时作假帐及管理舞弊通常不会引起太多的注意，在此种情势下，业者在高上限D&O的经验肯定相当不错。
But that's just when exposure is likely to be exploding, by way of ridiculous public offerings, earnings manipulation, chain-letter-like stock promotions and a potpourri of other unsavory activities. When stocks fall, these sins surface, hammering investors with losses that can run into the hundreds of billions. Juries deciding whether those losses should be borne by small investors or big insurance companies can be expected to hit insurers with verdicts that bear little relation to those delivered in bull-market days. Even one jumbo judgment, moreover, can cause settlement costs in later cases to mushroom. Consequently, the correct rate for D&O "excess" (meaning the insurer or reinsurer will pay losses above a high threshold) might well, if based on exposure, be five or more times the premium dictated by experience.
不过这正是风险暴露可能爆炸的时候，离谱的公开释股、盈余操控、连环信式的股票拉抬以及一些无聊的举动等行为大举出笼，然而等到股价暴跌时，所有的罪恶都一一浮现，总计超过数千亿美元的损失使得投资人一败涂地，而决定这些损失到底该由小额投资人或是大型保险公司来承担的陪审团，其打击保险公司所采用的证词是过去股票市场当红时所听不到的，只要出现一个大案子，就有可能导致以后的理赔损失大幅增加，因此D&O超额保险的正确费率(意思是保险业者及再保业者赔偿超过上限)若真要考量暴露的风险，极有可能是现行依照经验所订保费的五倍以上。
Insurers have always found it costly to ignore new exposures. Doing that in the case of terrorism, however, could literally bankrupt the industry. No one knows the probability of a nuclear detonation in a major metropolis this year (or even multiple detonations, given that a terrorist organization able to construct one bomb might not stop there). Nor can anyone, with assurance, assess the probability in this year, or another, of deadly biological or chemical agents being introduced simultaneously (say, through ventilation systems) into multiple office buildings and manufacturing plants. An attack like that would produce astronomical workers' compensation claims.
保险业者往往会发现没有注意到新暴露风险的代价相当的高，而若是遇到恐怖活动这种情况，更可能造成保险公司实质上的破产，没有人知道今年在主要大都会发生核子爆炸的可能性(或甚至是连环爆炸，假若恐怖份子组织一旦有能力制造的话，铁定不会只有一颗)，而也没有人能百分之百确定，今年或明年，致命的生化武器被大量运用(比如说透过空调系统)进入办公大楼及工厂的机率有多高，诸如此类的攻击事件有可能造成天文数字的劳保理赔金额。

Here's what we do know:在这里我们确信：

a.The probability of such mind-boggling disasters, though likely very low at present, is not zero.

a.这类震慑人心灾难的可能性，现在虽然很低，但绝非没有可能。

b.The probabilities are increasing, in an irregular and immeasurable manner, as knowledge and materials become available to those who wish us ill. Fear may recede with time, but the danger won't - the war against terrorism can never be won. The best the nation can achieve is a long succession of stalemates. There can be no checkmate against hydra-headed foes.

b.这种可能性，正以一种不规则且难以衡量的速度逐渐增加当中，随时仇视我们的敌人渐渐掌握伤害我们的信息及资源，恐惧的心理或许会随着时间慢慢淡化，但危险却依然存在，对抗恐怖活动的战争永远不会结束，我们能够得到最好的结果是让问题控制在一定程度之下，对于铲除仇视我们的狂热份子绝无根治之道。

c.Until now, insurers and reinsurers have blithely assumed the financial consequences from the incalculable risks I have described.

c.直到目前为止，保险及再保业者仍然不自知地承担以上我提到的这种无法预估风险的财务后果。

d.Under a "close-to-worst-case" scenario, which could conceivably involve $1 trillion of damage, the insurance industry would be destroyed unless it manages in some manner to dramatically limit its assumption of terrorism risks. Only the U.S. Government has the resources to absorb such a blow. If it is unwilling to do so on a prospective basis, the general citizenry must bear its own risks and count on the Government to come to its rescue after a disaster occurs.

d.在最坏的状况下，有可能产生1兆美元的经济损失，整个保险产业将因此崩溃，除非经营者能够将恐怖攻击风险承担的上限大幅压低在一定的水准以下，我想只有美国政府本身有能力承受如此大的重击，如果政府不愿意积极地担下此重责大任，任由人民负担所有的风险，则只有等灾难真的发生之后，再由政府出面来收拾残局。
Why, you might ask, didn't I recognize the above facts before September 11th? The answer, sadly, is that I did - but I didn't convert thought into action. I violated the Noah rule: Predicting rain doesn't count; building arks does. I consequently let Berkshire operate with a dangerous level of risk - at General Re in particular. I'm sorry to say that much risk for which we haven't been compensated remains on our books, but it is running off by the day.
或许有人会问，为何我不在911事件发生之前，就提出这项警讯?? 我的回答是，我确实有想到这点，但可惜的是我并未将想法化为举体的行动，关于这点我严重违反了诺亚的原则，「能够准确预测下雨不厉害，重要的是要去建方舟」，我等于是让Berkshire在相当危险的情况下经营，尤其是通用再保，而且我必须承认，截至目前我们还在免费为大家承担无可预测的风险，所幸这种情况已随着时间慢慢减少。
At Berkshire, it should be noted, we have for some years been willing to assume more risk than any other insurer has knowingly taken on. That's still the case. We are perfectly willing to lose $2 billion to $2? billion in a single event (as we did on September 11th) if we have been paid properly for assuming the risk that caused the loss (which on that occasion we weren't).
在Berkshire，有一点必须说明的是，多年以来我们一直有强烈的意愿承担比其他业者更多的风险，即便是现在也是如此，前提是保费要合理，对于单一事件我们愿意承担最多20亿到25亿美元的可能损失(就像是911那样的损失规模，只可惜那时我们没有收到一毛钱的保费)。

Indeed, we have a major competitive advantage because of our tolerance for huge losses. Berkshire has massive liquid resources, substantial non-insurance earnings, a favorable tax position and a knowledgeable shareholder constituency willing to accept volatility in earnings. This unique combination enables us to assume risks that far exceed the appetite of even our largest competitors. Over time, insuring these jumbo risks should be profitable, though periodically they will bring on a terrible year.
确实我们勇于承担钜额损失的意愿，使得我们的竞争优势大幅提高，Berkshire拥有大量的流动资产、极高的非保险事业盈余、有利的租税架构以及愿意容忍盈余上下变动的优秀股东阵容，这种独特的组合，让我们可以承担远比其它竞争对手更高的潜在风险，长期而言，接受这类钜型风险肯定有利可图，虽然在某些年度的成绩可能惨不忍睹。
The bottom-line today is that we will write some coverage for terrorist-related losses, including a few non-correlated policies with very large limits. But we will not knowingly expose Berkshire to losses beyond what we can comfortably handle. We will control our total exposure, no matter what the competition does.
目前我们的底限是愿意承接恐怖份子攻击事件的保单，包含一些非相关事件极高的风险上限，但我们绝不愿意让Berkshire在不知情的情况下，曝露于我们无法妥善处理的损失，我们会将整体的风险部位控制在一定程度之内，不论外在的市场竞争状况如何都一样。
Insurance Operations in 20012001年保险事业营运状况
Over the years, our insurance business has provided ever-growing, low-cost funds that have fueled much of Berkshire's growth. Charlie and I believe this will continue to be the case. But we stumbled in a big way in 2001, largely because of underwriting losses at General Re.
多年以来，我们旗下的保险事业提供了Berkshire大量低成本，成长所需的资金，查理跟我都认为这样的态势仍将继续维持下去，谁知道我们竟在2001年跌了一大跤，主要的原因就在于通用再保大幅的承保亏损。

In the past I have assured you that General Re was underwriting with discipline - and I have been proven wrong. Though its managers' intentions were good, the company broke each of the three underwriting rules I set forth in the last section and has paid a huge price for doing so. One obvious cause for its failure is that it did not reserve correctly - more about this in the next section - and therefore severely miscalculated the cost of the product it was selling. Not knowing your costs will cause problems in any business. In long-tail reinsurance, where years of unawareness will promote and prolong severe underpricing, ignorance of true costs is dynamite.
过去我一再保证，通用再保的承保一向相当有原则，事实证明我的看法有误，虽然管理阶层的出发点甚佳，但公司还是违反了前面我提到的三项原则，更为此付出极大的代价，其中一个失败的主要原因就在于损失准备提列不当，在后段我还会再详细说明，从而因此严重低估了某些尚在销售的保单成本，对许多企业来
说，搞不清楚自己的成本是相当严重的问题，在长天期的再保险业，多年的无知
将导致保费订价过低的影响加重，不了解成本结构就像是一颗不定时的炸弹。
Additionally, General Re was overly-competitive in going after, and retaining, business. While all concerned may intend to underwrite with care, it is nonetheless difficult for able, hard-driving professionals to curb their urge to prevail over competitors. If "winning," however, is equated with market share rather than profits, trouble awaits. "No" must be an important part of any underwriter's vocabulary.
此外，通用再保过于热衷追求或保有客户，即便所有人都知道要小心谨慎地承接业务，但还是很难让有才干又肯努力的杰出经理人克制压倒竞争对手的欲望，但如果胜利的定义是争取市场占有率而非获利率的话，那么麻烦就随时准备上门，勇敢地说"不"字，是任何保险从业人员字典里应该必备的一个字。

At the risk of sounding Pollyannaish, I now assure you that underwriting discipline is being restored at General Re (and its Cologne Re subsidiary) with appropriate urgency. Joe Brandon was appointed General Re's CEO in September and, along with Tad Montross, its new president, is committed to producing underwriting profits. Last fall, Charlie and I read Jack Welch's terrific book, Jack, Straight from the Gut (get a copy!). In discussing it, we agreed that Joe has many of Jack's characteristics: He is smart, energetic, hands-on, and expects much of both himself and his organization.
虽然听起来有点过度乐观，不过我还是向各位保证通用再保(以及其子公司科隆再保)的承保纪律目前正在恢复当中，Joe Brandon已在九月被任命为通用再保的新任总裁，再加上新任总经理Tad Montross皆致力于转亏为盈，去年秋天，查理跟我在读了奇异总裁-杰克威尔许的新书-直言无讳(赶快去买一本来看)，在经过讨论后，我们都认为Joe拥有许多杰克谈到的特点，他相当聪明、有活力、经验也够，同时对本身及组织都有深切的自我期许。

When it was an independent company, General Re often shone, and now it also has the considerable strengths Berkshire brings to the table. With that added advantage and with underwriting discipline restored, General Re should be a huge asset for Berkshire. I predict that Joe and Tad will make it so.
当她还是一家独立的公司时，通用再保就相当出色，如今她又有Berkshire在背后提供许多奥援，在增添助力以及承保纪律逐渐恢复的情况下，我们想通用再保应该可以成为Berkshire最重要的资产之一，我预期Joe跟Tad一定办得到。

At the National Indemnity reinsurance operation, Ajit Jain continues to add enormous value to Berkshire. Working with only 18 associates, Ajit manages one of the world's largest reinsurance operations measured by assets, and the largest, based upon the size of individual risks assumed. I have known the details of almost every policy that Ajit has written since he came with us in 1986, and never on even a single occasion have I seen him break any of our three underwriting rules. His extraordinary discipline, of course, does not eliminate losses; it does, however, prevent foolish losses. And that's the key: Just as is the case in investing, insurers produce outstanding long-term results primarily by avoiding dumb decisions, rather than by making brilliant ones.
在国家产险的再保业务方面，Ajit Jain继续为Berkshire增添了许多价值，只靠着18位同仁的协助，Ajit管理全世界前几大(以资产计)的再保险业务，而若以承担的整体风险来算，更是全世界第一，自从他1986年加入以来，对于他承接的所有保单，我知之甚详，但我从来没有发现他违背前述三项原则，虽然他严格的纪律无法保证绝不会发生损失，但他确实可以避免不必要的错误，这就是关键，就像是我们在投资时一样，保险业者想要有优异的长期绩效，靠的不是少数的成功个案，而是如何持续避免做出愚蠢的决定。

Since September 11th, Ajit has been particularly busy. Among the policies we have written and retained entirely for our own account are (1) $578 million of property coverage for a South American refinery once a loss there exceeds $1 billion; (2) $1 billion of non-cancelable third-party liability coverage for losses arising from acts of terrorism at several large international airlines; (3) ￡500 million of property coverage on a large North Sea oil platform, covering losses from terrorism and sabotage, above ￡600 million that the insured retained or reinsured elsewhere; and (4) significant coverage on the Sears Tower, including losses caused by terrorism, above a $500 million threshold. We have written many other jumbo risks as well, such as protection for the World Cup Soccer Tournament and the 2002 Winter Olympics. In all cases, however, we have attempted to avoid writing groups of policies from which losses might seriously aggregate. We will not, for example, write coverages on a large number of office and apartment towers in a single metropolis without excluding losses from both a nuclear explosion and the fires that would follow it.
自从911事件发生之后，Ajit就变得异常忙碌，在我们承接且全部自留在公司帐上的保单，主要有(1)南美洲炼油厂损失超过10亿美元以上的5.78亿美元意外险(2)数家国际航空公司10亿美元恐怖份子攻击事件不得撤销第三责任险(3)北海原油平台5亿英镑恐怖份子攻击及恶意破坏的产物意外险，以及超过6亿英镑以上业者自留或再保损失(4)芝加哥Sears大楼恐怖份子攻击事件超过5亿美元以上的损失等；此外我们也接了许多项超大型的意外险，例如世界杯足球赛以及2002年冬季奥运等，但不论是那一件个案，我们都尽量避免会发生连锁反应大量累积损失的保单，比如说，我们不会一口气接下位于同一个大都会的办公及住宅大楼大量的意外险，除非排除核子爆炸及后续可能引发的火灾损失。

No one can match the speed with which Ajit can offer huge policies.
After September 11th, his quickness to respond, always important, has become a major competitive advantage. So, too, has our unsurpassed financial strength. Some reinsurers - particularly those who, in turn, are accustomed to laying off much of their business on a second layer of reinsurers known as retrocessionaires - are in a weakened condition and would have difficulty surviving a second mega-cat. When a daisy chain of retrocessionaires exists, a single weak link can pose trouble for all. In assessing the soundness of their reinsurance protection, insurers must therefore apply a stress test to all participants in the chain, and must contemplate a catastrophe loss occurring during a very unfavorable economic environment. After all, you only find out who is swimming naked when the tide goes out. At Berkshire, we retain our risks and depend on no one. And whatever the world's problems, our checks will clear.
提到承接钜额保单的速度，没有人可以比得上Ajit，在911事件发生之后，他的快速反应，就变成一个相当重要的竞争优势，当然还有我们引以为傲的财务实力，某些再保同业，尤其是那些习惯将大部分的风险转嫁给其它再保业者俗称倒退派的保险公司的情况都相当凄惨，而且很有可能无法在承受第二次大灾难的发生，当致命的连锁关系产生时，一个微妙的关连可能导致全面的崩溃，当保险业者在衡量自身再保安排的健全性时，必须谨慎地试探整个连环所有参与者的抗压性，并深切地思考当一件大灾难万一在非常困难的经济状况下发生时该如何自处，毕竟只有在退潮时，你才能够发现到底是谁在裸泳，在Berkshire，我们将所有的风险自留，独立承担绝不依赖他人，而不论世上发生什么问题，我们的支票保证永远都能够兑现。

Ajit's business will ebb and flow - but his underwriting principles won't waver. It's impossible to overstate his value to Berkshire.
Ajit的业务量或许会有潮起潮落，但他的承保原则绝不改变，他在Berkshire的价值永远不可限量。
GEICO, by far our largest primary insurer, made major progress in 2001, thanks to Tony Nicely, its CEO, and his associates. Quite simply, Tony is an owner's dream.
GEICO我们目前最大的初级保险公司，在该公司总裁Tony Nicely及所有同仁的努力下，于2001年有重大进展，毫无疑问，Tony是老板心目中的明星经理人。

GEICO's premium volume grew 6.6% last year, its float grew $308 million, and it achieved an underwriting profit of $221 million. This means we were actually paid that amount last year to hold the $4.25 billion in float, which of course doesn't belong to Berkshire but can be used by us for investment.
GEICO去年的保费收入成长了6.6%，浮存金净增加3.08亿美元，并贡献了2.21亿美元的承保利益，这代表去年我们在帮别人保管42.5亿资金的同时，还有一笔额外的收入，虽然这笔浮存金不属于Berkshire所有，但却可以为我们运用，进行各项投资。

The only disappointment at GEICO in 2001 - and it's an important one - was our inability to add policyholders. Our preferred customers (81% of our total) grew by 1.6% but our standard and non-standard policies fell by 10.1%. Overall, policies in force fell .8%.
在2001年，GEICO唯一让人感到失望的是我们无法进一步增加保户数量，我们的指定保户(约占总保户的81%)成长了1.6%，但标准型与非标准型的保单则下滑了10.1%，总的来说，有效保单数量减少了0.8%。
New business has improved in recent months. Our closure rate from telephone inquiries has climbed, and our Internet business continues its steady growth. We, therefore, expect at least a modest gain in policy count during 2002. Tony and I are eager to commit much more to marketing than the $219 million we spent last year, but at the moment we cannot see how to do so effectively. In the meantime, our operating costs are low and far below those of our major competitors; our prices are attractive; and our float is cost-free and growing.
最近几个月，新保单业务有复苏现象，我们的电话行销成交率正在攀升之中，至于网络行销业务则稳定成长，因此我们预期2002年的保单数量至少将可维持些许的成长，Tony跟我都急于想要投入比去年2.19亿美元还要多的行销预算，但直到目前为止，我们仍然找不到如何有效运用的方法，在此同时，我们的营运成本依旧远低于其它主要的竞争对手，我们的价格相当具吸引力，而我们的浮存金依旧不须成本且持续成长当中。

Our other primary insurers delivered their usual fine results last year. These operations, run by Rod Eldred, John Kizer, Tom Nerney, Michael Stearns, Don Towle and Don Wurster had combined premium volume of $579 million, up 40% over 2000. Their float increased 14.5% to $685 million, and they recorded an underwriting profit of $30 million. In aggregate, these companies are one of the finest insurance operations in the country, and their 2002 prospects look excellent.
我们其它初级的保险公司去年的表现依旧出色，由Rod、John、Don、Tom、Michael等人带领的各家保险事业，总计贡献了5.79亿美元的保费收入，较2000年成长了四成，浮存金则增加14.5%成为6.85亿美元，外加3,000万美元的承保利益，总的来说，这些公司堪称全美最好的保险公司之一，展望2002年他们的前景依然可期。

"Loss Development" and Insurance Accounting损失调整及保险业会计。

Bad terminology is the enemy of good thinking. When companies or investment professionals use terms such as "EBITDA" and "pro forma," they want you to unthinkingly accept concepts that are dangerously flawed. (In golf, my score is frequently below par on a pro forma basis: I have firm plans to "restructure" my putting stroke and therefore only count the swings I take before reaching the green.)
不当的名词是正确思考的敌人，当一家公司或基金经理人使用诸如"EBITDA"(扣除利息税负及折旧摊销前的盈余)及"pro forma"(拟制)等名词时，通常代表他们意图引导你错误地接受某些严重偏差的概念，(在高尔夫球场上，我的成绩通常拟制性地低于par标准杆：关键在于推杆，由于我正在进行一套改造计画，因此我只将到达果岭以前的杆数列入计算)。

In insurance reporting, "loss development" is a widely used term - and one that is seriously misleading. First, a definition: Loss reserves at an insurer are not funds tucked away for a rainy day, but rather a liability account. If properly calculated, the liability states the amount that an insurer will have to pay for all losses (including associated costs) that have occurred prior to the reporting date but have not yet been paid. When calculating the reserve, the insurer will have been notified of many of the losses it is destined to pay, but others will not yet have been reported to it. These losses are called IBNR, for incurred but not reported. Indeed, in some cases (involving, say, product liability or embezzlement) the insured itself will not yet be aware that a loss has occurred.
在保险业的会计制度中，"损失调整"是被广泛运用的工具，但同时也是被严重误导的名词，首先，关于是它的定义：保险业者提列的损失准备并非业者提拨以备雨天不时之需的资金，实际上它应该是一个负债科目，如果能经由合理地估算，这项负债代表业者在财务报表截止日已经发生所有损失但尚未支付的可能金额 (包含所有相关成本)，在计算损失时，保险业者除了已经被正式告知必须支付的损失外，还必须包含那些尚未被告知的潜在损失，后者通称为IBNR(意即已经发生但尚未告知)的损失，事实上，在某些情况下(比如说产品责任险或员工忠诚险)，被保人本身甚至还不知道损失已经发生了。

It's clearly difficult for an insurer to put a figure on the ultimate cost of all such reported and unreported events. But the ability to do so with reasonable accuracy is vital. Otherwise the insurer's managers won't know what its actual loss costs are and how these compare to the premiums being charged. GEICO got into huge trouble in the early 1970s because for several years it severely underreserved, and therefore believed its product (insurance protection) was costing considerably less than was truly the case. Consequently, the company sailed blissfully along, underpricing its product and selling more and more policies at ever-larger losses.
对于保险公司来说，实在是很难事先去准确地算出这些已告知及未告知意外事件的最终成本，但具备合理估计的能力却相当重要，否则保险业的经理人将无从得知本身真实的经营成本，从而订定合理的保费，GEICO在1970年代发生经营危机，就是因为它连续好几年严重低估了损失准备，因而大大低估了其产品的成本，导致公司在不知情的状况下，以不当的价格出售其保单，卖得越多，亏得就越多。

When it becomes evident that reserves at past reporting dates understated the liability that truly existed at the time, companies speak of "loss development." In the year discovered, these shortfalls penalize reported earnings because the "catch-up" costs from prior years must be added to current-year costs when results are calculated. This is what happened at General Re in 2001: a staggering $800 million of loss costs that actually occurred in earlier years, but that were not then recorded, were belatedly recognized last year and charged against current earnings. The mistake was an honest one, I can assure you of that. Nevertheless, for several years, this underreserving caused us to believe that our costs were much lower than they truly were, an error that contributed to woefully inadequate pricing. Additionally, the overstated profit figures led us to pay substantial incentive compensation that we should not have and to incur income taxes far earlier than was necessary.
当保险公司在期后发现，损失准备明显地与现实的潜在负债不一致时，公司便将"损失调整"这个科目搬出来，这些以前年度遗留下来的补提成本，却必须在实际发现的年度报表上认列，这正是2001年通用再保身上所发生的案例，以前年度总计8亿美元的累积损失，一口气在去年的财务报表上显现出来，我可以向各位保证，这个数字应该是相当中肯的了，尽管如此，多年来的准备提列不当，让我们误以为我们的成本远低于实际数字，这又导致我们不当的订价，除此之外，过度高估的盈余数字，也让我们为此支付额外的奖金以及所得税。

We recommend scrapping the term "loss development" and its equally ugly twin, "reserve strengthening." (Can you imagine an insurer, upon finding its reserves excessive, describing the reduction that follows as "reserve weakening"?) "Loss development" suggests to investors that some natural, uncontrollable event has occurred in the current year, and "reserve strengthening" implies that adequate amounts have been further buttressed. The truth, however, is that management made an error in estimation that in turn produced an error in the earnings previously reported. The losses didn't "develop" - they were there all along. What developed was management's understanding of the losses (or, in the instances of chicanery, management's willingness to finally fess up).
因此我们强烈建议废除"损失调整"这个会计科目，以及另外一个类似的丑陋字眼"强化损失准备"(那么要是有保险公司因为发现其先前提列的准备过高，而在冲回损失准备时，是不是该用"削减损失准备"的字眼呢?)。表面上，"损失调整"告诉投资人，某些自然，不可控制的事件在最近年度发生，至于"损失准备强化"则暗示损失准备已被适当地补提增强。然而事实却是，管理当局在先前的估计发生错误，导致以前年度的盈余不实，损失本身并没有任何改变，它一直都在哪里，改变的是管理当局对于损失的认知(或是在管理当局明知故犯的情况下，最后终于承认其所犯的错误)。

A more forthright label for the phenomenon at issue would be "loss costs we failed to recognize when they occurred" (or maybe just "oops"). Underreserving, it should be noted, is a common - and serious - problem throughout the property/casualty insurance industry. At Berkshire we told you of our own problems with underestimation in 1984 and 1986. Generally, however, our reserving has been conservative.
我认为关于这种现象更贴切的名词应该是"未能及时发现的损失成本"或者可以简称为"哦!哦!"，必须说明的是损失提列不足是产险业界普遍存在的严重问题，在Berkshire，我们就曾在1984年及1986年告诉大家，我们发生过的估计不足问题，不过通常来说，我们的损失提列政策算是相当的稳健保守。

Major underreserving is common in cases of companies struggling for survival. In effect, insurance accounting is a self-graded exam, in that the insurer gives some figures to its auditing firm and generally doesn't get an argument. (What the auditor gets, however, is a letter from management that is designed to take his firm off the hook if the numbers later look silly.) A company experiencing financial difficulties - of a kind that, if truly faced, could put it out of business - seldom proves to be a tough grader. Who, after all, wants to prepare his own execution papers?
损失严重提列不足的现象在经营状况不佳的保险公司尤其常见，事实上，保险业的会计可以说是一项自己评分的考试，对于保险业者自结的财务报表数字，查核的会计师通常都不会有太大的意见，(会计师要的通常是一封，万一数字发生重大偏差，可以用来撇清关系的客户声明书)，一家面临财务困难的公司，通常对于自我评分的要求都不会太高，以免真得经营不下去，毕竟没有人会想要替自己签下处以死刑的判决书。

Even when companies have the best of intentions, it's not easy to reserve properly. I've told the story in the past about the fellow traveling abroad whose sister called to tell him that their dad had died. The brother replied that it was impossible for him to get home for the funeral; he volunteered, however, to shoulder its cost. Upon returning, the brother received a bill from the mortuary for $4,500, which he promptly paid. A month later, and a month after that also, he paid $10 pursuant to an add-on invoice. When a third $10 invoice came, he called his sister for an explanation. "Oh," she replied, "I forgot to tell you. We buried dad in a rented suit."
而且就算公司有足够的诚意，还是很难保证能够适当地提列损失，我曾经说过一个关于一位旅居海外人士的故事，话说有天这位仁兄接到姐姐告知父亲过世的消息，他回复表示可能无法回到家乡参加父亲的葬礼，不过倒是愿意负担所有的丧葬费用，后来他果然收到一张4,500元美金的帐单，二话不说他立即付清，可是谁知不久之后，他又收到一张10美元的收据，月覆一月，皆是如此，他不解的询问姐姐到底是怎么一回事，他姐姐回复道：「哦!我忘了告诉你，爸的寿衣是用租的。」

There are a lot of "rented suits" buried in the past operations of insurance companies. Sometimes the problems they signify lie dormant for decades, as was the case with asbestos liability, before virulently manifesting themselves. Difficult as the job may be, it's management's responsibility to adequately account for all possibilities. Conservatism is essential. When a claims manager walks into the CEO's office and says "Guess what just happened," his boss, if a veteran, does not expect to hear it's good news. Surprises in the insurance world have been far from symmetrical in their effect on earnings.
在保险业经营中，有许多这类租来的寿衣，有时候这类的问题甚至会隐藏数十年不被发现，就像是石绵赔偿问题，但一发就不可收拾，虽然这项工作有点棘手，但管理当局有责任适当的将所有可能性列入考量，保守稳健绝对有其必要，当损失理赔部门的经理走进总经理的办公室说到：「猜猜发生了什么事?」他的老板，如果是老鸟，应该知道肯定不会是什么好消息，保险世界的意外，对于盈余的影响通常不会非常一致。

Because of this one-sided experience, it is folly to suggest, as some are doing, that all property/casualty insurance reserves be discounted, an approach reflecting the fact that they will be paid in the future and that therefore their present value is less than the stated liability for them. Discounting might be acceptable if reserves could be precisely established. They can't, however, because a myriad of forces - judicial broadening of policy language and medical inflation, to name just two chronic problems - are constantly working to make reserves inadequate. Discounting would exacerbate this already-serious situation and, additionally, would provide a new tool for the companies that are inclined to fudge.
也由于存在着这种偏差的经验，所以当有人盲目地认为产物意外险的损失准备由于反应的是未来必须支付的款项，所以在经过现值折算后，应该会小于实际上的负债，我个人认为这种想法有点可笑，当然损失准备若系经过准确估算，按现值加以折现或许可以接受，但由于几项不可抗力的因素-举两个存在已久的问题，保单条款的任意延伸以及医疗通膨，使得损失准备长期以来处于提列不当的景况，折现只会让原来存在的问题变得更加严重，并且让某些不肖公司平添回旋的空间。

I'd say that the effects from telling a profit-challenged insurance CEO to lower reserves through discounting would be comparable to those that would ensue if a father told his 16-year-old son to have a normal sex life. Neither party needs that kind of push.
我必须说，告诉一家在获利边缘挣扎的保险公司总经理可以透过折现将损失准备降低，其结果就好象是一位父亲告诉自己16岁的儿子可以自由地享受正常的性生活一般，我想两者都不需要这种揠苗式的助长。

Sources of Reported Earnings帐列盈余的来源
The table that follows shows the main sources of Berkshire's reported earnings. In this presentation, purchase-accounting adjustments (primarily relating to "goodwill") are not assigned to the specific businesses to which they apply, but are instead aggregated and shown separately. This procedure lets you view the earnings of our businesses as they would have been reported had we not purchased them. In recent years, our "expense" for goodwill amortization has been large. Going forward, generally accepted accounting principles ("GAAP") will no longer require amortization of goodwill. This change will increase our reported earnings (though not our true economic earnings) and simplify this section of the report.
下表显示Berkshire帐列盈余的主要来源，在这张表中商誉的摊销数与购买法会计调整数会从个别被投资公司分离出来，单独加总列示，之所以这样做是为了让旗下各事业的盈余状况，不因我们的投资而有所影响，近年来我们在商誉摊销的金额相当庞大，从今以后，一般公认会计原则将不再要求商誉必须摊销，此举将提高我们的帐面盈余(虽然实质的经济盈余一点变动都没有)，并大幅简化这部份的报告。(in millions)

　
 
Pre-Tax Earnings
 
Berkshire's Shareof Net Earnings (after taxes andminority interests)
 

Operating Earnings: Insurance Group
 
2001
 
2000
 
2001
 
2000
 

Underwriting - Reinsurance
 
$(4,318)
 
$(1,416)
 
$(2,824)
 
$(911)
 

Underwriting - GEICO
 
221　22
 
(224)
 
144　14
 
(146)
 

Underwriting - Other Primary
 
30　3
 
25　2
 
18　1
 
16　1
 

Net Investment Income
 
2,824　2,82
 
2,773　2,77
 
1,968　1,96
 
1,946　1,94
 

Building Products(1)
 
461　46
 
34　3
 
287　28
 
21　2
 

Finance and Financial Products Business
 
519　51
 
530　53
 
336　33
 
343　34
 

Flight Services
 
186　18
 
213　21
 
105　10
 
126　12
 

MidAmerican Energy (76% owned)
 
600　60
 
197　19
 
230　23
 
109　10
 

Retail Operations
 
175　17
 
175　17
 
101　10
 
104　10
 

Scott Fetzer (excluding finance operation)
 
129　12
 
122　12
 
83　8
 
80　8
 

Shaw Industries(2)
 
292　29
 
--　-
 
156　15
 
--　-
 

Other Businesses
 
179　17
 
221　22
 
103　10
 
133　13
 

Purchase-Accounting Adjustments
 
(726)
 
(881)
 
(699)
 
(843)
 

Corporate Interest Expense
 
(92)
 
(92)
 
(60)
 
(61)
 

Shareholder-Designated Contributions
 
(17)
 
(17)
 
(11)
 
(11)
 

Other
 
　　　　25　
 
　　　39　
 
　　　16　
 
　　　30　
 

Operating Earnings
 
488　48
 
1,699　1,69
 
(47)
 
　936　93
 

Capital Gains from Investments
 
1,320　
 
3,955　
 
842　
 
2,392　
 

Total Earnings - All Entities
 
$1,808　$1,80
 
$5,654　$5,65
 
$ 795　$ 79
 
　$3,328　$3,32
 

(1) Includes Acme Brick from August 1, 2000; Benjamin Moore from December 18, 2000; Johns Manville from February 27, 2001; and MiTek from July 31, 2001.

(2) From date of acquisition, January 8, 2001.

Here are some highlights (and lowlights) from 2001 relating to our non-insurance activities:
以下是2001年我们非保险事业相关的重点摘要：

?Our shoe operations (included in "other businesses") lost $46.2 million pre-tax, with profits at H.H. Brown and Justin swamped by losses at Dexter.

我们的制鞋事业营运(包含在其它事业当中)税前损失为4,620万美元，其中H.H.Brown有获利，但Justin仍深陷在损失泥沼当中。
I've made three decisions relating to Dexter that have hurt you in a major way: (1) buying it in the first place; (2) paying for it with stock and (3) procrastinating when the need for changes in its operations was obvious. I would like to lay these mistakes on Charlie (or anyone else, for that matter) but they were mine. Dexter, prior to our purchase - and indeed for a few years after - prospered despite low-cost foreign competition that was brutal. I concluded that Dexter could continue to cope with that problem, and I was wrong.
至于在Dexter方面，我当初的三项决定，让大家损失惨重：(1)是把她买下来(2)是用Berkshire股票做交换(3)是在明显需要做改变的时刻却犹豫迟疑，我实在很想将这些过错推到曼格身上(或者其它任何一个人都可以)，但无奈这确实是我的错，Dexter在我们正式买下的前后几年，确曾享受过几年的好光景，一直到面临海外低成本产品的激烈竞争，当时我认为Dexter应该有能力解决这样的问题，没想到我的判断错误。

We have now placed the Dexter operation - which is still substantial in size - under the management of Frank Rooney and Jim Issler at H.H. Brown. These men have performed outstandingly for Berkshire, skillfully contending with the extraordinary changes that have bedeviled the footwear industry. During part of 2002, Dexter will be hurt by unprofitable sales commitments it made last year. After that, we believe our shoe business will be reasonably profitable.
现在我们将Dexter的营运重任交付给H.H.Brown的Frank及Jim，这些人在Berkshire表现优异，即便在鞋业剧烈的产业波动下，仍能运用各项技巧生存下来，在2002年的前半段，Dexter仍将受到先前所签订不赚钱的合约所影响，但在那之后，我们的鞋业可望回到合理的获利水准。

?MidAmerican Energy, of which we own 76% on a fully-diluted basis, had a good year in 2001. Its reported earnings should also increase considerably in 2002 given that the company has been shouldering a large charge for the amortization of goodwill and that this "cost" will disappear under the new GAAP rules.

我们持股76%的中美能源公司，在2001年的表现相当不俗，虽然必须承担大笔的商誉摊销费用，但预期2002年获利仍将大幅成长，而依照一般公认会计原则，以后这类帐面成本将不再出现。
Last year MidAmerican swapped some properties in England, adding Yorkshire Electric, with its 2.1 million customers. We are now serving 3.6 million customers in the U.K. and are its 2nd largest electric utility. We have an equally important operation in Iowa as well as major generating facilities in California and the Philippines.
去年中美能源买进了一些位于英国的产业，其中包含拥有210万用户的约克夏电力，目前我们在英国拥有360万的用户，在全英国排名第二位，此外我们在爱荷华州、加州及菲律宾都拥有重大的发电设施。

At MidAmerican - this may surprise you - we also own the second-largest residential real estate brokerage business in the country. We are market-share leaders in a number of large cities, primarily in the Midwest, and have recently acquired important firms in Atlanta and Southern California. Last year, operating under various names that are locally familiar, we handled about 106,000 transactions involving properties worth nearly $20 billion. Ron Peltier has built this business for us, and it's likely he will make more acquisitions in 2002 and the years to come.
在中美能源公司底下，说来各位可能会相当惊奇，我们还拥有全美第二大的房屋中介公司，我们在许多大都市的排名都居首位，尤其是中西部的城市，最近还买下了亚特兰大及南加州几家相当大的中介公司，去年以当地知名的品牌经营，我们总共处理了10万6,000多件的房屋交易，总成交值高达200亿美元，负责为我们建立这项事业的是Ron Peltier，而且我们在2002年以后的几年内，还有可能再继续买下更多的中介公司。

?Considering the recessionary environment plaguing them, our retailing operations did well in 2001. In jewelry, same-store sales fell 7.6% and pre-tax margins were 8.9% versus 10.7% in 2000. Return on invested capital remains high.                   即便在景气衰退的大环境底下，我们的零售业在2001年的表现仍可圈可点，其中珠宝业的单店平均营业额虽然下滑了7.6%，税前获利由2000年的10.7%降为8.9%，不过股东投资报酬率仍然相当的高。

Same-store sales at our home-furnishings retailers were unchanged and so was the margin - 9.1% pre-tax - these operations earned. Here, too, return on invested capital is excellent.

至于家具的单店营业额则维持不变，税前营利依然保持在9.1%的高檔，整体的股东投资报酬依旧相当出色。
We continue to expand in both jewelry and home-furnishings. Of particular note, Nebraska Furniture Mart is constructing a mammoth 450,000 square foot store that will serve the greater Kansas City area beginning in the fall of 2003. Despite Bill Child's counter-successes, we will keep this store open on Sundays.
不论是在珠宝或是家具业，我们仍然持续扩张，其中要特别提到的是内布拉斯加家具店NFM目前正在兴建一座45万平方公尺超大的旗舰店，预计在2003年秋天落成，届时将可服务堪萨斯市广大的群众，虽然有Bill Childs成功的反面例证在前面，我们还是决定在星期天开张营业。

?The large acquisitions we initiated in late 2000 - Shaw, Johns Manville and Benjamin Moore - all came through their first year with us in great fashion. Charlie and I knew at the time of our purchases that we were in good hands with Bob Shaw, Jerry Henry and Yvan Dupuy, respectively - and we admire their work even more now. Together these businesses earned about $659 million pre-tax.
至于我们在2000年底进行的几项购并案-Shaw地毯、Johns Manville耐火材料及Benjanmin油漆等公司，都顺利圆满地渡过了与我们在一起的第一个年头，查理跟我在买下她们的当头，就知道Bob Shaw、Jerry Henry及Yvan Dupuy都是个别产业的个中好手，但现在我们更感谢他们为我们所做的一切，这些公司去年总计为我们赚进了6.59亿美元的税前盈余。

Shortly after yearend we exchanged 4,740 Berkshire A shares (or their equivalent in B shares) for the 12.7% minority interest in Shaw, which means we now own 100% of the company. Shaw is our largest non-insurance operation and will play a big part in Berkshire's future.
在年度结束的不久之后，我们又以4,740股的Berkshire A股(或等值的B股)买下Shaw地毯剩余的12.7%股权，意思是说在此之后，我们将持有该公司100%的股权，Shaw地毯目前是我们非保险的最大事业，在未来也将在Berkshire扮演重要角色。

?All of the income shown for Flight Services in 2001 - and a bit more - came from FlightSafety, our pilot-training subsidiary. Its earnings increased 2.5%, though return on invested capital fell slightly because of the $258 million investment we made last year in simulators and other fixed assets. My 84-year-old friend, Al Ueltschi, continues to run FlightSafety with the same enthusiasm and competitive spirit that he has exhibited since 1951, when he invested $10,000 to start the company. If I line Al up with a bunch of 60-year-olds at the annual meeting, you will not be able to pick him out.
2001年的航空服务所有盈余都来自我们的飞行员训练子公司-飞安公司，实际盈余数字还超过此数，虽然股东投资报酬因为去年大笔投资2.58亿美元在添购飞行仿真器等设备上而略微下降，但盈余仍成长了2.5%，我84岁的老友Al Ueltschi继续以当初在1951年用1万美元创立公司时，同样的热情与毅力来经营飞安公司，如果我在股东会上让Al跟一群60几岁的老先生坐在一起，你可能分辨不出他来。

After September 11th, training for commercial airlines fell, and today it remains depressed. However, training for business and general aviation, our main activity, is at near-normal levels and should continue to grow. In 2002, we expect to spend $162 million for 27 simulators, a sum far in excess of our annual depreciation charge of $95 million. Those who believe that EBITDA is in any way equivalent to true earnings are welcome to pick up the tab.
911事件发生之后，商业飞机训练业务受到严重影响，而且截至目前为止依旧没有改善的迹象，不过我们的业务大宗-商务及一般飞行的训练则维持在近乎正常的水准，并有可能继续维持成长，展望2002年，我们预计斥资1.62亿美元添购27架飞行仿真器，这笔投资金额远超过我们一年的9,500万美元的折旧金额，我们欢迎那些爱用EBITDA(扣除利息税负及折旧摊销前的盈余)的人士来为我们买单。

Our NetJetsR fractional ownership program sold a record number of planes last year and also showed a gain of 21.9% in service income from management fees and hourly charges. Nevertheless, it operated at a small loss, versus a small profit in 2000. We made a little money in the U.S., but these earnings were more than offset by European losses. Measured by the value of our customers' planes, NetJets accounts for about half of the industry. We believe the other participants, in aggregate, lost significant money.
去年我们的NetJets飞机部份所有权计画卖出了创纪录的飞机架数，同时管理费收入及钟点费也大幅成长了21.9%，但即便如此，相较于2000年的小赚，其营运还是呈现小幅亏损，虽然我们在美国的业务有获利，但这些盈余却不足以弥补我们在欧洲发生的损失，若以我们客户拥有的飞机价值来看，NetJets的占有率大概超过整个产业的半数，因此我们推断其他竞争对手肯定大幅亏损。

Maintaining a premier level of safety, security and service was always expensive, and the cost of sticking to those standards was exacerbated by September 11th. No matter how much the cost, we will continue to be the industry leader in all three respects. An uncompromising insistence on delivering only the best to his customers is embedded in the DNA of Rich Santulli, CEO of the company and the inventor of fractional ownership. I'm delighted with his fanaticism on these matters for both the company's sake and my family's: I believe the Buffetts fly more fractional-ownership hours - we log in excess of 800 annually - than does any other family. In case you're wondering, we use exactly the same planes and crews that serve NetJet's other customers.
要维持高等级的安全服务水准，其代价肯定相当高昂，这种情况在911事件发生之后更是如此，不过不论成本有多高，我们还是努力在这些方面成为产业趋势的领导者，对于服务丝毫不打折扣的坚持早已深植在该公司总裁兼飞机部份所有权创始人Rich Santulli的基因里头，于公于私，我个人对于Santulli的执着皆感到相当欣慰，我相信巴菲特家族是全世界使用飞机部份所有权时数最频繁的家庭-去年整个家族的飞行总时数超过800个小时，大家不必怀疑，我们所使用的飞机与机组员与其它所有客户并无二致。

NetJets experienced a spurt in new orders shortly after September 11th, but its sales pace has since returned to normal. Per-customer usage declined somewhat during the year, probably because of the recession.
在911事件发生之后，NetJets的订单曾经出现短暂爆增的情况，但不久之后其销售速度就回到正常的水准，每位客户平均使用的时数甚至略微下滑，我想这多少跟景气不佳有些关联。

Both we and our customers derive significant operational benefits from our being the runaway leader in the fractional ownership business. We have more than 300 planes constantly on the go in the U.S. and can therefore be wherever a customer needs us on very short notice. The ubiquity of our fleet also reduces our "positioning" costs below those incurred by operators with smaller fleets.
由于NetJets在产业的领导地位，使得我们及客户皆受益良多，目前我们拥有遍布全美300架飞机，让客户在很短的时间内就能得到想要的服务，这种特性让我们可以大幅减少飞机停在地面上的成本。

These advantages of scale, and others we have, give NetJets a significant economic edge over competition. Under the competitive conditions likely to prevail for a few years, however, our advantage will at best produce modest profits.
我们拥有的规模经济等优点让NetJets在面临竞争时拥有强大的优势，只是在前几年竞争如此激烈的情况下，这些优势顶多只能让我们获得些许利润。

?Our finance and financial products line of business now includes XTRA, General Re Securities (which is in a run-off mode that will continue for an extended period) and a few other relatively small operations. The bulk of the assets and liabilities in this segment, however, arise from a few fixed-income strategies, involving highly-liquid AAA securities, that I manage. This activity, which only makes sense when certain market relationships exist, has produced good returns in the past and has reasonable prospects for continuing to do so over the next year or two.
在财务及金融商品业务方面，我们目前包含XTRA、通用再保证券(目前正处于逐渐结束的状态)以及其它一些规模比较小的业务，这部份的资产与负债的发生，包含我个人亲自管理的三A超高评等的有价证券，起源于维持固定收益的策略，这部份的业务只有在市场符合某些特定状况存在时才有用，过去以来一直为我们贡献不错的报酬，展望未来几年内，仍将维持这样的态势。

Investments股票投资

Below we present our common stock investments. Those that had a market value of more than $500 million at the end of 2001 are itemized.
下表是Berkshire 2001年市价超过5亿美元以上的股票投资。12/31/01(dollars in millions)

Shares
 
Company
 
Cost
 
Market
 

151,610,700
 
American Express Company
 
$ 1,470
 
$ 5,410
 

200,000,000
 
The Coca-Cola Company
 
1,299
 
9,430
 

96,000,000
 
The Gillette Company
 
600
 
3,206
 

15,999,200
 
H&R Block, Inc.
 
255
 
715
 

24,000,000
 
Moody's Corporation
 
499
 
957
 

1,727,765
 
The Washington Post Company
 
11
 
916
 

53,265,080
 
Wells Fargo & Company
 
306
 
2,315
 

 
 
Others
 
　　4,103
 
　　　5,726
 

 
 
Total Common Stocks
 
$8,543
 
$28,675
 

We made few changes in our portfolio during 2001. As a group, our larger holdings have performed poorly in the last few years, some because of disappointing operating results. Charlie and I still like the basic businesses of all the companies we own. But we do not believe Berkshire's equity holdings as a group are undervalued.
我们的投资组合在2001年几乎没有什么变动，总的来说，我们主要的投资部位近几年来的表现乏善可陈，有些本身的营运本就不尽理想，然而查理跟我还是相当喜爱这些公司的本业经营现况，不过我们也不认为现在这些投资组合的股价有受到任何的低估。

Our restrained enthusiasm for these securities is matched by decidedly lukewarm feelings about the prospects for stocks in general over the next decade or so. I expressed my views about equity returns in a speech I gave at an Allen and Company meeting in July (which was a follow-up to a similar presentation I had made two years earlier) and an edited version of my comments appeared in a December 10th Fortune une version of my 1999 talk at our website www.berkshirehathaway.com. Charlie and I believe that American business will do fine over time but think that today's equity prices presage only moderate returns for investors. The market outperformed business for a very long period, and that phenomenon had to end. A market that no more than parallels business progress, however, is likely to leave many investors disappointed, particularly those relatively new to the game.
我们对于持有股票保留的态度与我们对于当前股市未来十年内的前景不表乐观的看法相一致，我在七月份一场Allen公司举办会议中的演讲，表达了个人对于投资股市的看法，(早在两年前我就已经表达过类似的看法)，同时在同年12/10的财富杂志中有关于个人看法的修正版，我也将之检附在年报之后，各位也可以在公司的网站上www.berkshirehathaway.com 看到财富杂志1999年版文章，查理跟我相信就长期而言，我们仍看好美国企业的发展，但目前股票的价格注定了投资人只能得到一般的报酬，股市的表现已有好一段时间优于公司本身的表现，而这种现象终将结束，市场不可能永远超越企业本身的发展，我想这将让许多投资人大失所望，尤其是那些股市新手。

Here's one for those who enjoy an odd coincidence: The Great Bubble ended on March 10, 2000 (though we didn't realize that fact until some months later). On that day, the NASDAQ (recently 1,731) hit its all-time high of 5,132. That same day, Berkshire shares traded at $40,800, their lowest price since mid-1997.
当然也有一些人偶尔可以享受到特别的例外，就像是在2000/3/10正式结束的大泡沫(虽然我们实际要等到好几个月后才发现这项事实)，在那天纳斯达克指数创下5,132点的历史新高(现在约为1,731点)，在同一天，Berkshire的股价则以自1997年以来的最低价40,800美元收盘。

During 2001, we were somewhat more active than usual in "junk" bonds. These are not, we should emphasize, suitable investments for the general public, because too often these securities live up to their name. We have never purchased a newly-issued junk bond, which is the only kind most investors are urged to buy. When losses occur in this field, furthermore, they are often disastrous: Many issues end up at a small fraction of their original offering price and some become entirely worthless.
2001年我们在垃圾债券市场的活动较以往频繁，但我们必须强调，这类投资并不适合一般投资大众，因为在通常的情况下，这些债券正如其名，我们从来没有买过一般投资人最热衷的初次发行垃圾债券，因为一旦发生违约，其损失必定惨重，有许多债券投资者最后仅能收回一小部份的资金，有的最后甚至变成壁纸，使得投资人血本无归。

Despite these dangers, we periodically find a few - a very few - junk securities that are interesting to us. And, so far, our 50-year experience in distressed debt has proven rewarding. In our 1984 annual report, we described our purchases of Washington Public Power System bonds when that issuer fell into disrepute. We've also, over the years, stepped into other apparent calamities such as Chrysler Financial, Texaco and RJR Nabisco - all of which returned to grace. Still, if we stay active in junk bonds, you can expect us to have losses from time to time. Occasionally, a purchase of distressed bonds leads us into something bigger. Early in the Fruit of the Loom bankruptcy, we purchased the company's public and bank debt at about 50% of face value. This was an unusual bankruptcy in that interest payments on senior debt were continued without interruption, which meant we earned about a 15% current return. Our holdings grew to 10% of Fruit's senior debt, which will probably end up returning us about 70% of face value. Through this investment, we indirectly reduced our purchase price for the whole company by a small amount.
尽管风险颇大，我们不时还是可以找到少数-非常少数能够引起我们兴趣的垃圾债券，而截至目前为止，总计个人50多年的垃圾债投资经验感觉还算不错，在1984年的年报中，我们曾提到当初投资经营发生状况的华盛顿公用电力系统公司债，而这些年来我们也陆续介入其它有问题的公司债，诸如克莱斯勒金融公司、德士古石油及RJR 纳贝斯可饼干等，事后这些公司也都能重返光采，然而如果我们一直积极投入垃圾债券市场的话，总有一天我们会发生损失，不过偶尔买进一些问题债也有可能让我们钓到大鱼，在Fruit of the Loom宣布破产的初期，我们以相当于面额50%的价格买进该公司的债券与银行债权，该公司的破产个案相当特殊，因为公司并未停止支付有担保债务的利息，这等于让我们一年得到约当15%的收益，目前我们持有Fruit of the Loom有担保债权的比例提高到10%，而且最后我们很有可能收回相当于面额70%的本金，经由这笔投资，我们等于间接降低了整个购并案的投资金额。

In late 2000, we began purchasing the obligations of FINOVA Group, a troubled finance company, and that, too, led to our making a major transaction. FINOVA then had about $11 billion of debt outstanding, of which we purchased 13% at about two-thirds of face value. We expected the company to go into bankruptcy, but believed that liquidation of its assets would produce a payoff for creditors that would be well above our cost. As default loomed in early 2001, we joined forces with Leucadia National Corporation to present the company with a prepackaged plan for bankruptcy.
在2000年底，我们开始陆续买进FINOVA公司的债权，那是一家发生问题的财务金融公司，而此举又间接促成了另一笔投资案，FINOVA当时约有110亿美元的债务流通在外，我们以面额三分之二的价位买进了其中约13%的债权，我们预估这家公司将难逃破产的命运，但确信在清算这家公司之后，债权人估计可以收回的金额将超过当初投资的成本，而该公司果然在2001年初无法清偿债务，于是我们乃联合Leucadia公司向FINOVA提出一项解决方案。

The plan as subsequently modified (and I'm simplifying here) provided that creditors would be paid 70% of face value (along with full interest) and that they would receive a newly-issued 7?% note for the 30% of their claims not satisfied by cash. To fund FINOVA's 70% distribution, Leucadia and Berkshire formed a jointly-owned entity - mellifluently christened Berkadia - that borrowed $5.6 billion through FleetBoston and, in turn, re-lent this sum to FINOVA, concurrently obtaining a priority claim on its assets. Berkshire guaranteed 90% of the Berkadia borrowing and also has a secondary guarantee on the 10% for which Leucadia has primary responsibility. (Did I mention that I am simplifying?).
这个提案后来经过修正(过程简单说明如下)，每位债权人可以先拿到面额70%的本金(以及所有利息)，至于剩下的30%则领取利率7.5%的分期应付票据，而为了让FINOVA顺利支付这70%的本金，Leucadia跟Berkshire合组一家新公司-结合两者取了一个相当好听的名字Berkadia，由这家新公司向FleetBoston金融公司借了56亿美元，然后再将这笔资金转借给FINOVA，并由其取得FINOVA资产第一顺位的抵押权，Berkshire则提供Berkadia 借款金额90%的保证，剩下的10%则由Leucadia负责担保，Berkshire则为第二顺位的保证人 (我刚刚有说要简单说明了吗?)。

There is a spread of about two percentage points between what Berkadia pays on its borrowing and what it receives from FINOVA, with this spread flowing 90% to Berkshire and 10% to Leucadia. As I write this, each loan has been paid down to $3.9 billion.
在Berkadia付给FleetBoston的利息费用与收到FINOVA的利息收入间，有2%的差距，这2%的利差分成90%与10%由Berkshire与Leucadia分配，而截至我写年报为止，这笔借款已经还到剩下39亿美元。
As part of the bankruptcy plan, which was approved on August 10, 2001, Berkshire also agreed to offer 70% of face value for up to $500 million principal amount of the $3.25 billion of new 7?% bonds that were issued by FINOVA. (Of these, we had already received $426.8 million in principal amount because of our 13% ownership of the original debt.) Our offer, which was to run until September 26, 2001, could be withdrawn under a variety of conditions, one of which became operative if the New York Stock Exchange closed during the offering period. When that indeed occurred in the week of September 11th, we promptly terminated the offer.
在2001/8/10通过的破产计画中，Berkshire同意以面额70%的价格买下FINOVA预备发行总额32.5亿美元7.5%的分期票券中的5亿美元，(在这之前，我们已先收到4.268亿美元，这是我们先前投资13%债权所收回的本金)，我们这项报价除了几项特殊的状况外，在2001/9/26前都有效，其中一条就是纽约证券交易所在报价期间不会关闭，谁知后来竟发生911事件，于是我们马上取消这项提案。

Many of FINOVA's loans involve aircraft assets whose values were significantly diminished by the events of September 11th. Other receivables held by the company also were imperiled by the economic consequences of the attack that day. FINOVA's prospects, therefore, are not as good as when we made our proposal to the bankruptcy court. Nevertheless we feel that overall the transaction will prove satisfactory for Berkshire. Leucadia has day-to-day operating responsibility for FINOVA, and we have long been impressed with the business acumen and managerial talent of its key executives.
FINOVA许多贷款的价值系于飞机资产，在911事件发生后，这些资产价值大为减损，而其它应收帐款在该事件发生后也产生相当大的质变，也因此FINOVA的本质与前景已不若当初我们向破产法庭提案时那般，尽管如此，我们还是觉得整个交易对Berkshire来说还算有利，Leucadia对于FINOVA每日的营运付全责，我们一直对于其主要经理人精细的商业判断能力与管理才能印象深刻。
It's deja vu time again: In early 1965, when the investment partnership I ran took control of Berkshire, that company had its main banking relationships with First National Bank of Boston and a large New York City bank. Previously, I had done no business with either. Fast forward to 1969, when I wanted Berkshire to buy the Illinois National Bank and Trust of Rockford. We needed $10 million, and I contacted both banks. There was no response from New York. However, two representatives of the Boston bank immediately came to Omaha. They told me they would supply the money for our purchase and that we would work out the details later.
又到了似曾相识的时间了，早在1965年，当投资合伙事业正式入主Berkshire时，公司主要的往来银行是波士顿的第一国家银行以及纽约花旗银行，不过在此之前我个人与这两家并无往来，后来到了1969年，当Berkshire有意买下伊利诺州国家银行以及洛克福信托公司时，我们需要1,000万美元的资金，于是我连络这两家银行，花旗银行方面没有任何响应，但另一方面波士顿银行却立即派了两位代表到奥玛哈，他们明确表示愿意提供购并所需的资金，至于详细细节可以等稍后再谈。
For the next three decades, we borrowed almost nothing from banks. (Debt is a four-letter word around Berkshire.) Then, in February, when we were structuring the FINOVA transaction, I again called Boston, where First National had morphed into FleetBoston. Chad Gifford, the company's president, responded just as Bill Brown and Ira Stepanian had back in 1969 - "you've got the money and we'll work out the details later."
在这之后的数十年内，我们几乎不向银行借钱，(债务对Berkshire来说不过是一个普通的名词而已)，不过到了去年二月，当我们在规划FINOVA的投资架构时，我再度打电话给位于波士顿的这家银行，当时的第一国家银行已经改名为FleetBoston，该银行的总裁-Chad Gifford的响应与当初1969年Bill Brown及Ira Stepanian一模一样，"没关系!钱你先拿去用，细节稍后再谈"。

And that's just what happened. FleetBoston syndicated a loan for $6 billion (as it turned out, we didn't need $400 million of it), and it was quickly oversubscribed by 17 banks throughout the world. Sooooo . . . if you ever need $6 billion, just give Chad a call - assuming, that is, your credit is AAA.
事情一如这般，由FleetBoston出面主办的一项60亿美元的联贷案(结果实际上也没有用到那么多)，立刻得到全世界17家银行的超额认购，所以如果你需要60亿美元的资金，可以打电话给Chad，…只要你的信用评等是三A最高等级。

One more point about our investments: The media often report that "Buffett is buying" this or that security, having picked up the "fact" from reports that Berkshire files. These accounts are sometimes correct, but at other times the transactions Berkshire reports are actually being made by Lou Simpson, who runs a $2 billion portfolio for GEICO that is quite independent of me. Normally, Lou does not tell me what he is buying or selling, and I learn of his activities only when I look at a GEICO portfolio summary that I receive a few days after the end of each month. Lou's thinking, of course, is quite similar to mine, but we usually end up in different securities. That's largely because he's working with less money and can therefore invest in smaller companies than I. Oh, yes, there's also another minor difference between us: In recent years, Lou's performance has been far better than mine.

关于投资还有一点要说明，报章媒体经常报导说"巴菲特正在买进"这支或那支股票，其中大多是媒体经由Berkshire向主管机关申报的文件中推敲出蛛丝马迹，这些报导有时正确，但有时Berkshire申报的交易也有可能是Lou Simpson的杰作，他个人独立管理GEICO 20亿美元的投资部位，通常Lou不会告诉我，他正在买进或卖出什么股票，而通常我是在每个月结束后几天看到投资月报表时才知道他的进出动作，当然Lou的思考模式与我非常相近，但通常我们买进的股票截然不同，主要的原因在于他管理的资金相较于我这边规模小了许多，因此他只能投资一些小型类股，哦! 当然我们之间还有一点不太相同，那就是他的投资绩效比起我来要好太多了。

Charitable Contributions慈善捐赠

Berkshire follows a highly unusual policy in respect to charitable contributions - but it's one that Charlie and I believe is both rational and fair to owners.

关于慈善捐赠，Berkshire所采取的做法与其它企业有显著的不同，但这却是查理跟我认为对股东们最公平且合理的做法。
First, we let our operating subsidiaries make their own charitable decisions, requesting only that the owners/managers who once ran these as independent companies make all donations to their personal charities from their own funds, instead of using company money. When our managers are using company funds, we trust them to make gifts in a manner that delivers commensurate tangible or intangible benefits to the operations they manage. Last year contributions from Berkshire subsidiaries totaled $19.2 million.
首先，我们让旗下个别的子公司依其个别状况决定各自的捐赠，只要求先前经营该企业的老板与经理人在捐赠给私人的基金会时，必须改用私人的钱，而非公款，当他们运用公司的资金进行捐赠时，我们则相信他们这么做，可以为所经营的事业增加有形或无形的收益，总计去年，Berkshire的子公司捐赠金额高达1,920万美元。

At the parent company level, we make no contributions except those designated by shareholders. We do not match contributions made by directors or employees, nor do we give to the favorite charities of the Buffetts or the Mungers. However, prior to our purchasing them, a few of our subsidiaries had employee-match programs and we feel fine about their continuing them: It's not our style to tamper with successful business cultures.
至于在母公司方面，除非股东指定，否则我们不进行任何其它形式的捐赠，我们不会依照董事或任何其它员工的意愿进行捐赠，同时我们也不会特别独厚巴菲特家族或曼格家族相关的基金会，虽然在买下公司之前，部份公司就存在有员工指定的捐赠计画，但我们仍支持他们继续维持下去，干扰经营良好公司的运作，并不是我们的作风。

To implement our owners' charitable desires, each year we notify registered holders of A shares (A's represent 86.6% of our equity capital) of a per-share amount that they can instruct us to contribute to as many as three charities. Shareholders name the charity; Berkshire writes the check. Any organization that qualifies under the Internal Revenue Code can be designated by shareholders. Last year Berkshire made contributions of $16.7 million at the direction of 5,700 shareholders, who named 3,550 charities as recipients. Since we started this program, our shareholders' gifts have totaled $181 million.
为了落实股东们的捐赠意愿，每年我们都会通知A股股东的合法登记人(A股约占Berkshire所有资本的86.6%)，他们可以指定捐赠的每股金额，至多可分给三家指定慈善机构，由股东指名慈善机构，Berkshire则负责开支票，只要国税局IRS认可的慈善机构都可以捐赠，去年在5,700位股东的指示下，Berkshire捐出了1,670万美元给3,550家慈善机构，自从这项计画推出之后，累计捐赠的金额高达1.81亿美元。

Most public corporations eschew gifts to religious institutions. These, however, are favorite charities of our shareholders, who last year named 437 churches and synagogues to receive gifts. Additionally, 790 schools were recipients. A few of our larger shareholders, including Charlie and me, designate their personal foundations to get gifts, so that those entities can, in turn, disburse their funds widely.
大部分的上市公司都回避对宗教团体的捐赠，但这却是我们股东们最偏爱的慈善团体，总计去年有437家教会及犹太教堂名列受捐赠名单，此外还有790间学校，至于包含查理跟我本人在内的一些大股东，则指定个人的基金会作为捐赠的对象，从而透过各自的基金会做进一步的分配运用。

I get a few letters every week criticizing Berkshire for contributing to Planned Parenthood. These letters are usually prompted by an organization that wishes to see boycotts of Berkshire products. The letters are invariably polite and sincere, but their writers are unaware of a key point: It's not Berkshire, but rather its owners who are making charitable decisions - and these owners are about as diverse in their opinions as you can imagine. For example, they are probably on both sides of the abortion issue in roughly the same proportion as the American population. We'll follow their instructions, whether they designate Planned Parenthood or Metro Right to Life, just as long as the charity possesses 501(c)(3) status. It's as if we paid a dividend, which the shareholder then donated. Our form of disbursement, however, is more tax-efficient.
每个星期，我都会收到一些批评Berkshire捐赠支持计画生育的信件，这些信件常常是由一个希望Berkshire受到抵制的单位所策划推动，这些信件的措词往往相当诚挚有礼，但他们却忘了最重要的一件事，那就是做出此项捐赠决定的并非Berkshire本身，而是其背后的股东，而这些股东的意见可想而知本身就非常的分歧，举例来说，关于堕胎这个问题，股东群中支持与反对的比例与美国一般民众的看法比例相当，我们必须遵从他们的指示，不论他们决定捐给计画生育或者是生命之光，只要这些机构符合税法501(c)(3)的规定，这就等于是我们支付股利，然后由股东自行捐赠出去一样，只是这样的形式在税负上比较有利。

In neither the purchase of goods nor the hiring of personnel, do we ever consider the religious views, the gender, the race or the sexual orientation of the persons we are dealing with. It would not only be wrong to do so, it would be idiotic. We need all of the talent we can find, and we have learned that able and trustworthy managers, employees and suppliers come from a very wide spectrum of humanity.
不论是在采购物品或是聘用人员，我们完全不会有宗教上、性别上、种族上或性向上的考量，那样的想法不但错误，而且无聊，我们需要人才，而在我们能干又值得信赖的经理人、员工与供货商当中，充满了各式各样的人士。
To participate in our future charitable contribution programs, you must own Class A shares that are registered in the name of the actual owner, not the nominee name of a broker, bank or depository. Shares not so registered on August 31, 2002 will be ineligible for the 2002 program. When you get the contributions form from us, return it promptly. Designations received after the due date will not be honored.

想要参加这项计画者，必须拥有A级普通股，同时确定您的股份是登记在自己而非股票经纪人或保管银行的名下，同时必须在2002年8月31日之前完成登记，才有权利参与2002年的捐赠计画，当你收到表格后，请立即填写后寄回，逾期恕不受理。
The Annual Meeting年度股东大会

This year's annual meeting will be on Saturday, May 4, and we will again be at the Civic Auditorium. The doors will open at 7 a.m., the movie will begin at 8:30, and the meeting itself will commence at 9:30. There will be a short break at noon for food. (Sandwiches can be bought at the Civic's concession stands.) Except for that interlude, Charlie and I will answer questions until 3:30. Give us your best shot.
今年的股东会将在5/4星期六举行，地点还是在市立体育馆，大门会在当天早上七点开放，同时电影短片照例会在八点半播放，正式会议则从九点半开始，扣除中午短暂的休息时间， (会场外有供应三明治等各类点心)，除了中午休息时间外，查理跟我本人会在现场回答大家各类问题直到下午三点半，记得将你的问题准备好。

For at least the next year, the Civic, located downtown, is the only site available to us. We must therefore hold the meeting on either Saturday or Sunday to avoid the traffic and parking nightmare sure to occur on a weekday. Shortly, however, Omaha will have a new Convention Center with plenty of parking facilities. Assuming that we then head for the Center, I will poll shareholders to see whether you wish to return to the Monday meeting that was standard until 2000. We will decide that vote based on a count of shareholders, not shares. (This is not a system, however, we will ever institute to decide who should be CEO.)
至少在明年以前，位于市中心的市立体育馆仍将是我们唯一的选择，而为了解决交通与停车问题，我们只能在星期六或星期天举行，以避开平日的交通阻塞，所幸在不久之后，奥玛哈将会有一个大型的新会议中心诞生，拥有宽敞的停车场，等到这个会议中心完成之后，我会再发问券询问大家将会议时间改回2000年以前在星期一开会的惯例，届时我们将以股东投票人数而非股权比例来决定。(当然这并非一般的做法，各位休想比照此做法选出新任总裁)

An attachment to the proxy material that is enclosed with this report explains how you can obtain the credential you will need for admission to the meeting and other events. As for plane, hotel and car reservations, we have again signed up American Express (800-799-6634) to give you special help. They do a terrific job for us each year, and I thank them for it.
后面附有股东会开会投票的相关资料，向各位解释如何拿到股东会入场及其它活动必须的识别证，至于有关机位、住宿、租车等预订服务，我们很高兴与美国运通(电话800-799-6634)再次签约为您提供相关安排，每年他们都为大家提供非常好的服务，在此谨代表大家向他们说声谢谢。

In our usual fashion, we will run buses from the larger hotels to the meeting. Afterwards, the buses will make trips back to the hotels and to Nebraska Furniture Mart, Borsheim's and the airport. Even so, you are likely to find a car useful.

如同以往，我们会安排巴士接送大家往返各大旅馆与会场之间，并在会后接送大家到内布拉斯加家具店与波仙珠宝店或是到饭店与机场，当然即便如此你可能会觉得如果有一辆车会更方便。
We have added so many new companies to Berkshire this year that I'm not going to detail all of the products that we will be selling at the meeting. But come prepared to carry home everything from bricks to candy. And underwear, of course. Assuming our Fruit of the Loom purchase has closed by May 4, we will be selling Fruit's latest styles, which will make you your neighborhood's fashion leader. Buy a lifetime supply.
今年由于我们又新加入了许多公司，所以我就不再详细说明在现场会提供什么产品供大家选购，总之从糖果到砖块应有尽有，当然还有内衣，假设Fruit of the Loom的购并能在5/4以前顺利结案的话，我们也会在现场销售Fruit的最新款式，保证让你在街坊邻居间成为时尚领导，记得一次买个够。

GEICO will have a booth staffed by a number of its top counselors from around the country, all of them ready to supply you with auto insurance quotes. In most cases, GEICO will be able to give you a special shareholder discount (usually 8%). This special offer is permitted by 41 of the 49 jurisdictions in which we operate. Bring the details of your existing insurance and check out whether we can save you money.
GEICO公司会再度派出各地区最优秀的业务员，在会场设立摊位，随时提供股东们汽车保单的报价，在大多数的情况下，GEICO都可以提供给你一个相当优惠的股东折扣(大约8%)，这个特别优惠在我们有营业据点的49州中的41州都有效，各位记得将自己现在的投保资料带来，看看是否能帮自己省下一笔钱。

At the Omaha airport on Saturday, we will have the usual array of aircraft from NetJetsR available for your inspection. Just ask a representative at the Civic about viewing any of these planes. If you buy what we consider an appropriate number of items during the weekend, you may well need your own plane to take them home. And, if you buy a fraction of a plane, we might even throw in a three-pack of briefs or boxers.

星期六在奥玛哈机场，我们仍将展示一系列的机队供大家参观，请到市立体育馆向EJA的业务代表洽询参观的事宜，如果你股东会买了一大推相关产品，我相信你一定也需要用自己的飞机把它们带回家，如果你真的买下飞机的部份所有权，我们还会附赠几个大行李箱。
At Nebraska Furniture Mart, located on a 75-acre site on 72nd Street between Dodge and Pacific, we will again be having "Berkshire Weekend" pricing, which means we will be offering our shareholders a discount that is customarily given only to employees. We initiated this special pricing at NFM five years ago, and sales during the "Weekend" grew from $5.3 million in 1997 to $11.5 million in 2001.
位于道奇街与太平洋街的内布拉斯加家具店NFM，再度会有Berkshire周特卖，我们将特别提供给股东原先只有员工可以享有的优惠价，我们在五年前首次推出这种促销活动，营业额更一举从1997年的530万美元成长到2001年的1,150万美元。

To get the discount, you must make your purchases on Thursday, May 2 through Monday, May 6 and also present your meeting credential. The period's special pricing will even apply to the products of several prestigious manufacturers that normally have ironclad rules against discounting but that, in the spirit of our shareholder weekend, have made an exception for you. We appreciate their cooperation. NFM is open from 10 a.m. to 9 p.m. on weekdays and 10 a.m. to 6 p.m. on Saturdays and Sundays.
想要享有折扣记得在5/2星期四到5/6星期一间采购，并出示股东开会证明，在这期间的特卖活动也适用于许多原本从不打折的顶级品牌，这可是为了股东会才特别破例，我们很感谢他们的配合，NFM的营业时间平日从早上10点到下午9点，星期六及星期日则从早上10点到下午6点。

Borsheim's - the largest jewelry store in the country except for Tiffany's Manhattan store - will have two shareholder-only events. The first will be a cocktail reception from 6 p.m. to 10 p.m. on Friday, May 3. The second, the main gala, will be from 9 a.m. to 5 p.m. on Sunday, May 5. Shareholder prices will be available Thursday through Monday, so if you wish to avoid the large crowds that will assemble on Friday evening and Sunday, come at other times and identify yourself as a shareholder. On Saturday, we will be open until 6 p.m. Borsheim's operates on a gross margin that is fully twenty percentage points below that of its major rivals, so the more you buy, the more you save (or at least that's what my wife and daughter tell me). Come by and let us perform a walletectomy on you.
波仙珠宝-全美单店营业额仅次于纽约曼哈顿蒂芬妮的珠宝店，在股东会期间将会有两场专为股东举办的展览会，第一场是在5/3星期五的鸡尾酒会，时间从下午6点到晚上10点，第二场主秀则在5/5星期天举行，从早上9点到下午6点，从星期四到星期一的股东会期间，波仙都将提供股东特惠价，所以如果你希望避开星期五晚上到星期天的拥挤人潮，你可以在其它的时间上门光顾，记得表明股东的身分，星期六我们会营业到晚上7点，波仙的营业毛利要比其它主要竞争对手要低20个百分点以上，所以买得越多省得越多，(这是我的家人告诉我的)，记得来到现场，让我们替你的荷包减减肥。

In the mall outside of Borsheim's, we will have some of the world's top bridge experts available to play with our shareholders on Sunday afternoon. We expect Bob and Petra Hamman along with Sharon Osberg to host tables. Patrick Wolff, twice U.S. chess champion, will also be in the mall, taking on all comers - blindfolded! Last year, Patrick played as many as six games simultaneously - with his blindfold securely in place - and this year will try for seven. Finally, Bill Robertie, one of only two players who have twice won the backgammon world championship, will be on hand to test your skill at that game. Come to the mall on Sunday for the Mensa Olympics.

星期天下午，我们照例会在波仙珠宝店外面大厅为股东们举办的一场桥牌大赛，邀请多位世界级桥牌顶尖高手与大家同乐，Hamman兄弟及Sharon Osberg预期都将出席，另外Patrick Wolff-美国棋两度冠军，也会再度在会场蒙眼与所有挑战者对奕，去年他一口气同时与六位对手下棋，今年他将同时挑战七位对手，最后两度世界双陆旗冠军-Bill Robertie，也会莅临测试各位双陆旗的实力，记得星期天到现场参加奥林匹亚棋艺大赛。
Gorat's - my favorite steakhouse - will again be open exclusively for Berkshire shareholders on Sunday, May 5, and will be serving from 4 p.m. until 10 p.m. Please remember that to come to Gorat's on Sunday, you must have a reservation. To make one, call 402-551-3733 on April 1 (but not before). If Sunday is sold out, try Gorat's on one of the other evenings you will be in town. Show your sophistication by ordering a rare T-bone with a double order of hash browns.
我个人最爱的牛排馆-Gorat's为了Berkshire股东年会破例在5/5日星期天开门营业，从下午4点开始营业，一直到晚上10点，请记得星期天事先若没有订位的人请勿前往以免向隅，要预约请在4/1以后打电话(402-551-3733)，若订不到星期天的位子，也可以试试其它晚上，记得你点的是丁骨牛排加上双份的牛肉丸，如此人家就知道你是识途老马。

The usual baseball game will be held at Rosenblatt Stadium at 7 p.m. on Saturday night. This year the Omaha Royals will play the Oklahoma RedHawks. Last year, in an attempt to emulate the career switch of Babe Ruth, I gave up pitching and tried batting. Bob Gibson, an Omaha native, was on the mound and I was terrified, fearing Bob's famous brush-back pitch. Instead, he delivered a fast ball in the strike zone, and with a Mark McGwire-like swing, I managed to connect for a hard grounder, which inexplicably died in the infield. I didn't run it out: At my age, I get winded playing a hand of bridge.
例行的棒球赛将于星期六晚上7点在Rosenblatt体育馆举行，今年奥玛哈皇家队将对上奥克拉荷玛红鹰队，去年为了仿效贝比鲁斯的传奇挥击，我弃投从打，在奥玛哈出身的选手-Bob Gibson站上投手丘后，我当场被吓坏了，因为Bob以内角上飘球著名，谁知道他最后投出的竟是正中直球，那时只见我用力使出马奎尔式的挥击，击出内野方向的软弱滚地球，我并没有往一垒跑，因为以我这个年纪，只适合在桥牌桌上驰骋。

I'm not sure what will take place at the ballpark this year, but come out and be surprised. Our proxy statement contains instructions for obtaining tickets to the game. Those people ordering tickets to the annual meeting will receive a booklet containing all manner of information that should help you enjoy your visit in Omaha. There will be plenty of action in town. So come for Woodstock Weekend and join our Celebration of Capitalism at the Civic.
我不确定今年球场会发生什么事，记得到现场体验惊奇，股东会资料将告诉大家如何取得球赛入场的门票，所有决定参加股东会的股东将会收到一大本册子，内含大量有关奥玛哈的旅游信息，股东会期间将有许多活动，所以一定要来参加资本家的伍斯达克嘉年华会，并到市立体育馆参与资本主义的飨宴。

Finally, I would like to thank the wonderful and incredibly productive crew at World Headquarters (all 5,246.5 square feet of it) who make my job so easy. Berkshire added about 40,000 employees last year, bringing our workforce to 110,000. At headquarters we added one employee and now have 14.8. (I've tried in vain to get JoEllen Rieck to change her workweek from four days to five; I think she likes the national recognition she gains by being .8.)
最后我要感谢Berkshire企业总部(占地约5,246平方英呎)那群最棒、生产力最高的员工，是他们让我的工作轻松愉快，Berkshire去年增加了40,000名员工，使得员工总数增加到110,000人，为此总部人员编制增加一名成为14.8人(虽然我试图说服JoEllen Rieck将她的每周上班天数从4天改为5天，不过我想她还是喜欢当那个0.8)。

The smooth handling of the array of duties that come with our current size and scope - as well as some additional activities almost unique to Berkshire, such as our shareholder gala and designated-gifts program - takes a very special group of people. And that we most definitely have.

以我们目前的规模，为了要顺利处理好所有的日常业务，同时还要加上Berkshire特有的一些活动-诸如股东盛会及指定捐赠计画等，我们绝对必须有一群特别的人，而可以肯定的是我们已经找到合适的对象。

Note: The following table appears in the printed Annual Report on the facing page of the Chairman's Letter and is referred to in that letter.

附注：下表系董事长致股东信的参考资料，并载于年度报告的封面。

Berkshire's Corporate Performance vs. the S&P 500

Berkshire vs S&P 500指数的比较表

Annual Percentage Change

in Per-Share in S&P 500Book Value of with Dividends RelativeBerkshire Included ResultsYear (1) (2) (1)-(2)

1965
 
23.8 10.0 13.8
 
1985
 
48.2 31.6 16.6
 

1966
 
20.3 (11.7) 32.0
 
1986
 
26.1 18.6 7.5
 

1967
 
11.0 30.9 (19.9)
 
1987
 
19.5 5.1 14.4
 

1968
 
19.0 11.0 8.0
 
1988
 
20.1 16.6 3.5
 

1969
 
16.2 (8.4) 24.6
 
1989
 
44.4 31.7 12.7
 

1970
 
12.0 3.9 8.1
 
1990
 
7.4 (3.1) 10.5
 

1971
 
16.4 14.6 1.8
 
1991
 
39.6 30.5 9.1
 

1972
 
21.7 18.9 2.8
 
1992
 
20.3 7.6 12.7
 

1973
 
4.7 (14.8) 19.5
 
1993
 
14.3 10.1 4.2
 

1974
 
5.5 (26.4) 31.9
 
1994
 
13.9 1.3 12.6
 

1975
 
21.9 37.2 (15.3)
 
1995
 
43.1 37.6 5.5
 

1976
 
59.3 23.6 35.7
 
1996
 
31.8 23.0 8.8
 

1977
 
31.9 (7.4) 39.3
 
1997
 
34.1 33.4 .7
 

1978
 
24.0 6.4 17.6
 
1998
 
48.3 28.6 19.7
 

1979
 
35.7 18.2 17.5
 
1999
 
5 21.0 (20.5)
 

1980
 
19.3 32.3 (13.0)
 
2000
 
6.5 (9.1) 15.6
 

1981
 
31.4 (5.0) 36.4
 
2001
 
(6.2) (11.9) 5.7
 

1982
 
40.0 21.4 18.6
 
2002
 
10.0 (22.1) 32.1
 

1983
 
32.3 22.4 9.9
 
Average Annual Gain 1965-2002
 
22.2 10.0 12.2
 

1984
 
13.6 6.1 7.5
 
Overall Gain 1964-2002
 
214,433 3,663
 

Notes: Data are for calendar years with these exceptions: 1965 and 1966, year ended 9/30; 1967, 15 months ended 12/31.

资料以历年制为准，除了1965年及1966年系至9/30;1967年则为至12/31的15个月。

Starting in 1979, accounting rules required insurance companies to value the equity securities they hold at market rather than at the lower of cost or market, which was previously the requirement. In this table, Berkshire's results through 1978 have been restated to conform to the changed rules. In all other respects, the results are calculated using the numbers originally reported.

从1979年开始，会计原则规定保险公司持有的股权投资必须采用市价法取代原先的成本与市价孰低法，在本表中，1978年以前的资料已依照该原则重新调整，除此之外，其它的数字皆依照原则的结果未作更动。

The S&P 500 numbers are pre-tax where as the Berkshire numbers are after-tax. If a corporation such as Berkshire were simply to have owned the S&P 500 and accrued the appropriate taxes, its results would have lagged the S&P 500 in years when that index showed a positive return, but would have exceeded the S&P in years when the index showed a negative return. Over the years, the tax costs would have caused the aggregate lag to be substantial.

S&P 500指数系以税前为准，而Berkshire的数字则属于税后，如果Berkshire直接投资S&P 500并依此课征相关税负，则当S&P 500的报酬为正时，Berkshire的表现将不如S&P 500，相反地若S&P 500的报酬为负时，Berkshire的表现将优于S&P 500，就长期而言，Berkshire额外负担的税负成本将使得中间的差异日益扩大。

BERKSHIRE HATHAWAY INC.
波克夏海瑟崴股份有限公司
To the Shareholders of Berkshire Hathaway Inc.:
致Berkshire公司全体股东:
Our gain in net worth during 2002 was $6.1 billion, which increased the per-share book value of both our Class A and Class B stock by 10.0%. Over the last 38 years (that is, since present management took over) per-share book value has grown from $19 to $41,727, a rate of 22.2% compounded annually.*

本公司2002年的净值增加了61亿美元，每股A股或B股的帐面净值增加了10.0%，累计过去38年以来，也就是自从现有经营阶层接手之后，每股净值由当初的19元成长到现在的41,727美元，年复合成长率约为22.2%*。

*All figures used in this report apply to Berkshire's A shares, the successor to the only stock that the company had outstanding before 1996. The B shares have an economic interest equal to 1/30th that of the A.

*1在年报中所谓的每股数字系以A级普通股约当数为基础，这是本公司在1996年以前流通在外唯一的一种股份，B级普通股则拥有A级普通股三十分之一的权利。

In all respects 2002 was a banner year. I’ll provide details later, but here’s a summary:
从任何角度来看，2002年无异是丰收的一年，后面我会再详加说明，以下是几点总结：
Our various non-insurance operations performed exceptionally well, despite a sluggish economy. A decade ago Berkshire’s annual pre-tax earnings from our non-insurance businesses was $272 million. Now, from our ever-expanding collection of manufacturing, retailing, service and finance businesses, we earn that sum monthly.
尽管外界景气低迷，但Berkshire旗下所有非保险事业的表现都异常优异，十年前，我们非保险事业的税前盈余为2.72亿美元，但时至今日，在持续大举扩张零售、制造、服务以及金融事业版图之后，这数字约当我们一个月的获利。

Our insurance group increased its float to $41.2 billion, a hefty gain of $5.7 billion. Better yet, the use of these funds in 2002 cost us only 1%. Getting back to low-cost float feels good, particularly after our poor results during the three previous years. Berkshire’s reinsurance division and GEICO shot the lights out in 2002, and underwriting discipline was restored at General Re.
2002年我们旗下保险事业的浮存金大幅增加了57亿美元，累积达到412亿美元，更棒的是，运用这些资金的成本仅为1%，能够回到以往低成本浮存金的感觉真好，特别是经历过惨淡的前三年，Berkshire的再保险部门以及GEICO车险在2002年都大放异彩，而General RE的承保纪律也已恢复。
Berkshire acquired some important new businesses – with economic characteristics ranging from good to great, run by managers ranging from great to great. Those attributes are two legs of our “entrance” strategy, the third being a sensible purchase price. Unlike LBO operators and private equity firms, we have no “exit” strategy – we buy to keep. That’s one reason why Berkshire is usually the first – and sometimes the only – choice for sellers and their managers.

Berkshire购并了几项重要的新事业，其产业竞争力在各自的业界均堪称数一数二，并由优秀的经理人所管理，这些特点是我们"进入"策略决定关键的两只脚，至于合理的价格则是第三只脚，不过不同于一般融资购并者LBO及私人投资银行，我们并没有所谓的"退出"策略，在买进以后，我们就把它们好好地放着，这也是为何Berkshire往往成为许多卖方以及其经理人，心目中的首选，有时甚至是唯一的选择。

Our marketable securities outperformed most indices. For Lou Simpson, who manages equities at GEICO, this was old stuff. But, for me, it was a welcome change from the last few years, during which my investment record was dismal.
我们的股票投资组合表现超越市场上大多数的指数，对于负责管理GEICO保险资金的Lou Simpson来说，这是司空见惯的事，但就我个人而言，却是在经历过好几个悲惨的年头后，终于获得翻身。

The confluence of these favorable factors in 2002 caused our book-value gain to outstrip the performance of the S&P 500 by 32.1 percentage points. This result is aberrational: Charlie Munger, Berkshire’s vice chairman and my partner, and I hope to achieve – at most – an average annual advantage f a few points. In the future, there will be years in which the S&P soundly trounces us. That will in fact almost certainly happen during a strong bull market, because the portion of our assets committed to common stocks has significantly declined. This change, of course, helps our relative performance in down markets such as we had in 2002.

综合以上这些有利的因素，造就我们的帐面净值大幅超越S&P 500指数达到32.1个百分点，这样的成绩有点反常，Berkshire的副董事长兼主要合伙人-查理曼格跟我本人最希望的是Berkshire每年都能稳定的超越指数几个百分点就好，我想在以后的某些年度，极有可能会看到S&P指数大幅超越我们的表现，尤其是当股市大幅上涨的年头，主要的原因在于目前我们在股市投资占总资产的比例已大幅下降，当然也由于是这样的转变，让我们在2002年股市大幅回档之际，仍能维持不错的绩效。
I have another caveat to mention about last year’s results. If you’ve been a reader of financial reports in recent years, you’ve seen a flood of “pro-forma” earnings statements – tabulations in which managers invariably show “earnings” far in excess of those allowed by their auditors. In these presentations, the CEO tells his owners “don’t count this, don’t count that –just count what makes earnings fat.” Often, a forget-all-this-bad-stuff message is delivered year after year without management so much as blushing.
关于去年的结果，我还有一点要补充，如果你经常阅读最近几年上市公司的财务报表，你会发现满是所谓"拟制性盈余"这类的报表-这种报表所显示的盈余数字往往都远高于经过会计师签证的查核数，而公司高阶经理人会告诉股东们，"不要理这个，不要管那个，只要算那些会让盈余数字好看一点的就好了"，而管理当局对于这类"过去种种，譬如昨日死"的现象年复一年地出现，早就习以为常，一点都不会感到脸红。
We’ve yet to see a pro-forma presentation disclosing that audited earnings were somewhat high. So let’s make a little history: Last year, on a pro-forma basis, Berkshire had lower earnings than those we actually reported.

我们还没有看过有那家公司的拟制报表，其盈余是低于会计师查核数字的，现在就让我们来编一个故事，故事的大纲是：去年就拟制基础而言，Berkshire的盈余数字远低于会计师的查核数字。
That is true because two favorable factors aided our reported figures. First, in 2002 there was no megacatastrophe, which means that Berkshire (and other insurers as well) earned more from insurance than if losses had been normal. In years when the reverse is true – because of a blockbuster hurricane, earthquake or man-made disaster – many insurers like to report that they would have earned X “except for” the unusual event. The implication is that since such megacats are infrequent, they shouldn’t be counted when “true” earnings are calculated. That is deceptive nonsense. “Except for” losses will forever be part of the insurance business, and they will forever be paid with shareholders’ money.

我之所以会如此说，也并非全然凭空捏造，去年有两项有利的因素，让我们的财报数字特别好看，第一，由于2002年没有发生什么重大的灾难，所以Berkshire(也包括其它所有保险业者)赚取的盈余比一般正常的年度要多得多，反之亦然。然而奇怪的是要是遇到飓风、地震与其它人为灾害频传的歹年冬时，许多保险同业往往会声明"要是"没有发生XX灾难，本公司的盈余应可达到预计目标，意思是说，由于这类灾难的发生相当特殊，所以不应该列入"正常"的盈余科目计算，这根本就是一派胡言，要知道"特殊灾难"损失本来就是保险业司空见惯的事，而且绝对必须要由公司背后的股东来买单。
Nonetheless, for the purposes of this exercise, we’ll take a page from the industry’s book. For last year, when we didn’t have any truly major disasters, a downward adjustment is appropriate if you wish to “normalize” our underwriting result.

不论如何，我们还是继续完成这次的练习，由于去年我们没有遇到什么重大的灾难，所以实有必要将帐面盈余向下调整，以算出正常合理的承保绩效。
Secondly, the bond market in 2002 favored certain strategies we employed in our finance and financial products business. Gains from those strategies will certainly diminish within a year or two – and may well disappear.

其次，2002年的债券市场特别有利于我们金融产品部门的策略运作，这类的利得在未来一两年内很可能会逐渐缩减，甚至完全消失。
Soooo . . . “except for” a couple of favorable breaks, our pre-tax earnings last year would have been about $500 million less than we actually reported. We’re happy, nevertheless, to bank the excess. As Jack Benny once said upon receiving an award: “I don’t deserve this honor – but, then, I have arthritis, and I don’t deserve that either.”

所以呢. . . 在"扣除"这几项有利的短暂因素后，我们去年实际的税前获利将比帐面减少约5亿美元，当然没有人会嫌盈余太多，就像是Jack Benny在得奖后所发表的感言：「我实在是不配得到这个奖项，但这就像是我不应该得到关节炎一样」。

We continue to be blessed with an extraordinary group of managers, many of whom haven’t the slightest financial need to work. They stick around, though: In 38 years, we’ve never had a single CEO of a subsidiary elect to leave Berkshire to work elsewhere. Counting Charlie, we now have six managers over 75, and I hope that in four years that number increases by at least two (Bob Shaw and I are both 72). Our rationale: “It’s hard to teach a new dog old tricks.” Berkshire’s operating CEOs are masters of their crafts and run their businesses as if they were their own. My job is to stay out of their way and allocate whatever excess capital their businesses generate. It’s easy work.

Berkshire旗下一直有一大群杰出的经理人为我们打拼着，且其中绝大部分都已经可以不必再为这份薪水工作，但他们依然坚守岗位，38年来还没有任何一位经理人离开Berkshire跳槽到他处上班，包含查理在内，目前我们共有6位经理人的年龄超过75岁，预期4年后还会再增加2名(那就是Bob Shaw跟我本人，我们现年都是72岁)，我们的观念是，「实在是很难教新狗老把戏!」Berkshire的所有经理人都是各自行业的佼佼者，并把公司当作是自己的事业一样在经营，至于我的任务其实相当简单，那就是站在旁边默默鼓励，尽量不要碍着他们，并好好地运用他们所赚来的大笔资金。

My managerial model is Eddie Bennett, who was a batboy. In 1919, at age 19, Eddie began his work with the Chicago White Sox, who that year went to the World Series. The next year, Eddie switched to the Brooklyn Dodgers, and they, too, won their league title. Our hero, however, smelled trouble. Changing boroughs, he joined the Yankees in 1921, and they promptly won their first pennant in history.

提到管理模式，我个人的偶像是一个叫做Eddie Bennett的球僮，1919年，年仅19岁的Eddie开始他在芝加哥白袜队的职业生涯，当年度白袜队立刻就打进世界大赛，隔年Eddie跳槽到布鲁克林道奇队，果不其然，又让道奇队赢得世界大赛，之后不久，这位传奇性的人物发现苗头不对，接着转换跑道到纽约洋基队，此举更使得洋基队在1921年赢得队史上的第一座世界大赛冠军。
Now Eddie settled in, shrewdly seeing what was coming. In the next seven years, the Yankees won five American League titles. What does this have to do with management? It’s simple – to be a winner, work with winners. In 1927, for example, Eddie received $700 for the 1/8th World Series share voted him by the legendary Yankee team of Ruth and Gehrig. This sum, which Eddie earned by working only four days (because New York swept the Series) was roughly equal to the full-year pay then earned by batboys who worked with ordinary associates. Eddie understood that how he lugged bats was unimportant; what counted instead was hooking up with the cream of those on the playing field. I’ve learned from Eddie. At Berkshire, I regularly hand bats to many of the heaviest hitters in American business.

自此Eddie仿佛预知接下来会发生什么事，决定安顿下来，果不其然，洋基队在往后的七年间，五度赢得美联的冠军，或许有人会问，这跟管理模式有什么相干?? 很简单-那就是想要成为一个赢家，就是与其它赢家一起共事，举例来说，1927年， Eddie因为洋基赢得世界大赛(当年棒球界传奇人物贝比鲁斯也在阵中)而分到700美元的奖金，这笔钱大约相当于其它球僮一整年的收入，结果Eddie总共只工作4天就拿到手(因为当年度洋基队四连胜横扫对手)，Eddie很清楚地知道他如何拎球棒并不重要，重要的是他能为球场上最当红的明星拎球棒才是关键，我从Eddie身上学到很多，所以在Berkshire，我就经常为美国商业大联盟的超级强打者拎球棒。
Acquisitions购并活动
We added some sluggers to our lineup last year. Two acquisitions pending at yearend 2001 were completed: Albecca (which operates under the name Larson-Juhl), the U.S. leader in custom-made picture frames; and Fruit of the Loom, the producer of about 33.3% of the men’s and boy’s underwear sold in the U.S. and of other apparel as well. Both companies came with outstanding CEOs: Steve McKenzie at Albecca and John Holland at Fruit. John, who had retired from Fruit in 1996, rejoined it three years ago and rescued the company from the disastrous path it had gone down after he’d left. He’s now 70, and I am trying to convince him to make his next retirement coincident with mine (presently scheduled for five years after my death – a date subject, however, to extension).

去年我们的打击阵容又增添了好几位强打者，两件从2001年就开始谈的案子在去年结案，全美相框订做业的领导厂商Albecca(以Larson-Jhul品牌经营)以及Fruit of the Loom纺织公司，全美约有1/3的男士及儿童内衣系由该公司制造，当然该公司还有销售其它服装，两家公司都由相当优秀的经理人领军，Albecca有Steve MaKenzie，而Fruit of the Loom则有John Holland，后者在1996年自该公司退休，三年前又回锅挽救该公司免于毁灭的命运，他今年70岁，现在我正努力说服他跟我同进退(目前我个人预定在死后5年再办理退休，并且有可能会视状况予以延长)。
We initiated and completed two other acquisitions last year that were somewhat below our normal size threshold. In aggregate, however, these businesses earn more than $60 million pre-tax annually. Both operate in industries characterized by tough economics, but both also have important competitive strengths that enable them to earn decent returns on capital.

此外，去年我们另外又完成的其它两件规模较小的购并案，不过两家公司加起来的年度税前获利超过6,000万美元，虽然两者所处的产业竞争都相当激烈，但却同样拥有相当的竞争优势，使得我们的投资依然能够维持不错的报酬率。
The newcomers are:这两位新成员分别是

(a) CTB, a worldwide leader in equipment for the poultry, hog, egg production and grain industries; and

(a)CTB-全世界鸡、猪等农畜养殖设备的领导厂商
(b) Garan, a manufacturer of children’s apparel, whose largest and best-known line is GaranimalsR.
(b)Garan-童装生产厂商，以Garanimals等著名品牌对外行销。
These two companies came with the managers responsible for their impressive records: Vic Mancinelli at CTB and Seymour Lichtenstein at Garan. The largest acquisition we initiated in 2002 was The Pampered Chef, a company with a fascinating history dating back to 1980. DorisChristopher was then a 34-year-old suburban Chicago home economics teacher with a husband, two little girls, and absolutely no business background. Wanting, however, to supplement her family’s modest income, she turned to thinking about what she knew best – food preparation. Why not, she wondered, make a business out of marketing kitchenware, focusing on the items she herself had found most useful?
两家公司的经理人过去都拥有令人印象深刻的成绩，CTB的Vic Mancinelli以及Garan的Seymour Lichtenstein，至于在2002年开始进行的购并案中，规模最大的就属The Pampered Chef(TPC)-这也是一家拥有辉煌历史的传奇公司，时间回溯到1980年，当时34岁的Doris Christopher还是一位芝加哥郊区家庭经济学的教师，与先生育有2个小女儿的她，完全就没有任何商业经验，为了要补贴家庭微薄的收入，她想到运用本身最拿手的绝活-准备食物，她在想想是不是可以利用家里的餐具来做点生意，这是她自己认为身边最派得上用场的东西。

To get started, Doris borrowed $3,000 against her life insurance policy – all the money ever injected into the company – and went to the Merchandise Mart on a buying expedition. There, she picked up a dozen each of this and that, and then went home to set up operations in her basement.
为了要创业，Doris利用寿险保单质借了3,000美元，这也是她仅有的一次资金投入，然后到大卖场进行一趟采购之旅，买了一大堆烹饪餐具，然后回到家里的地下室展开事业。
Her plan was to conduct in-home presentations to small groups of women, gathered at the homes of their friends. While driving to her first presentation, though, Doris almost talked herself into returning home, convinced she was doomed to fail.
她的计画是集合一群女性友人到其朋友家里进行展示，记得在第一次出发公开展示的路上，Doris几乎要说服自己放弃打道回府。
But the women she faced that evening loved her and her products, purchased $175 of goods, and TPC was underway. Working with her husband, Jay, Doris did $50,000 of business in the first year. Today – only 22 years later – TPC does more than $700 million of business annually, working through 67,000 kitchen consultants. I’ve been to a TPC party, and it’s easy to see why the business is a success. The company’s products, in large part proprietary, are well-styled and highly useful, and the consultants are knowledgeable and enthusiastic. Everyone has a good time. Hurry to pamperedchef.com on the Internet to find where to attend a party near you.
所幸当晚她所遇到的女性朋友们相当喜爱她及她的产品，总共买了175美元的东西，TPC于焉诞生，在她的先生Jay的帮忙之下，Doris头一年总共做了50,000美元的生意，22年后的今天，TPC的年营业额高达7亿美元，共有67,000名餐饮顾问，我自己也曾经参加过TPC的宴会，很轻易地就能发现这个行业成功的原因，公司的产品大部分都是独家专用、造型设计优美且深具实用性，而餐饮顾问的经验丰富且非常热心，这使得与会的每一位客人都尽兴而归，赶快上pamperedchef.com网站看看如何才能就近参加她们所举办的派对。
Two years ago, Doris brought in Sheila O’Connell Cooper, now CEO, to share the management load, and in August they met with me in Omaha. It took me about ten seconds to decide that these were two managers with whom I wished to partner, and we promptly made a deal. Berkshire shareholders couldn’t be luckier than to be associated with Doris and Sheila.

两年前，Doris找到现任总裁-Sheila O'Connell Cooper加入，以分担管理重责，两人在八月联袂来到奥玛哈与我会面，我前后只花了10秒钟的时间就确定我想要这两个人加入我们的团队，当下双方就签订合约，能够与Doris与Sheila在一起共事，Berkshire的股东实在是再幸运也不过了。

Berkshire also made some important acquisitions last year through MidAmerican Energy Holdings (MEHC), a company in which our equity interest is 80.2%. Because the Public Utility Holding Company Act (PUHCA) limits us to 9.9% voting control, however, we are unable to fully consolidate MEHC’s financial statements.

去年透过持股80.2%的中美能源MEHC，Berkshire也进行了几项重要的购并案，由于公用事业控股公司法(PUHCA)限制我们只能拥有该公司9.9%的投票权，所以我们无法将MEHC的财务数字，完全并到母公司的财务报表之中。
Despite the voting-control limitation – and the somewhat strange capital structure at MEHC it has engendered – the company is a key part of Berkshire. Already it has $18 billion of assets and delivers our largest stream of non-insurance earnings. It could well grow to be huge. Last year MEHC acquired two important gas pipelines. The first, Kern River, extends from Southwest Wyoming to Southern California. This line moves about 900 million cubic feet of gas a day and is undergoing a $1.2 billion expansion that will double throughput by this fall. At that point, the line will carry enough gas to generate electricity for ten million homes. The second acquisition, Northern Natural Gas, is a 16,600 mile line extending from the Southwest to a wide range of Midwestern locations. This purchase completes a corporate odyssey of particular interest to Omahans.

尽管受限于投票控制权的限制，使得MEHC现在的资本结构有点奇怪，但该公司仍然Berkshire非常重要的一部份，目前它的资产总额达到180亿美元，并成为Berkshire非保险事业盈余的主要来源，展望未来，其成长依然可期，去年MEHC买下了两条重要的天然气管线，第一条是从怀俄明州到南加州，名为肯特河的管线，每天运送9亿立方英呎的天然气，且目前我们又另外投资12亿美元进行扩充，预计在今年秋天完工后，运输能量可增加一倍，届时将可满足1,000万个家庭用户所需，第二条路线则是从美国西南部一路延伸到中西部，全长16,600英哩，名为「北方天然」的管线，这项购并案更是引起奥玛哈地区居民的注意，传为企业美谈。

From its beginnings in the 1930s, Northern Natural was one of Omaha’s premier businesses, run by CEOs who regularly distinguished themselves as community leaders. Then, in July, 1985, the company – which in 1980 had been renamed InterNorth – merged with Houston Natural Gas, a business less than half its size. The companies announced that the enlarged operation would be headquartered in Omaha, with InterNorth’s CEO continuing in that job. Within a year, those promises were broken. By then, the former CEO of Houston Natural had taken over the top job at InterNorth, the company had been renamed, and the headquarters had been moved to Houston. These switches were orchestrated by the new CEO – Ken Lay – and the name he chose was Enron.

自从1930年代初期，「北方天然」一直是奥玛哈地区著名的企业之一，由地方上流社会的领导人士所经营，不过该公司在1985年(1980年改名为InterNorth)被规模不到它一半的休斯敦天然气所购并，该公司当时曾宣布将让总部继续设在奥玛哈，并让原CEO继续留任，只是不满一年，这些承诺就被打破，休斯敦天然气的原任总裁接掌总裁职位，总部也搬到休斯敦，更有甚者，连公司名称都被后来新继任的总裁-Ken Lay改名为. . . .「安隆」!!。

Fast forward 15 years to late 2001. Enron ran into the troubles we’ve heard so much about and borrowed money from Dynegy, putting up the Northern Natural pipeline operation as collateral. The two companies quickly had a falling out, and the pipeline’s ownership moved to Dynegy. That company, in turn, soon encountered severe financial problems of its own. MEHC received a call on Friday, July 26, from Dynegy, which was looking for a quick and certain cash sale of the pipeline. Dynegy phoned the right party: On July 29, we signed a contract, and shortly thereafter Northern Natural returned home. When 2001 began, Charlie and I had no idea that Berkshire would be moving into the pipeline business. But upon completion of the Kern River expansion, MEHC will transport about 8% of all gas used in the U.S. We continue to look for large energy-related assets, though in the electric utility field PUHCA constrains what we can do.

时光飞逝，话说到了15年之后的2001年，安隆营运发生重大困难，被迫向另一家能源公司Dynegy借钱，并以「北方天然」这条管线作为质押担保品，结果不久之后，这条管线的所有权就移转到Dynegy的名下，只是没想到Dynegy过不了多久也发生严重的财务问题， MEHC在7/26星期五接到Dynegy公司打来的电话，对方希望将这条管线立即变现以取得现金，我想他们算是找对人了，紧接着在7/29，我们就签订了一项合约，就这样「北方天然」终于回到家乡的怀抱，早在2001年初，查理跟我压根就没想到，我们会介入能源管线业的经营，不过在完成肯特河管线扩充案之后，MEHC所运送的天然气，将占全美使用量的8%，而在这之后，我们仍将继续寻求大型的能源事业投资案，虽然在能源产业，PUHCA依然对我们还有诸多限制。

A few years ago, and somewhat by accident, MEHC found itself in the residential real estate brokerage business. It is no accident, however, that we have dramatically expanded the operation. Moreover, we are likely to keep on expanding in the future. We call this business HomeServices of America. In the various communities it serves, though, it operates under the names of the businesses it has acquired, such as CBS in Omaha, Edina Realty in Minneapolis and Iowa Realty in Des Moines. In most metropolitan areas in which we operate, we are the clear market leader.

几年前，MEHC在无意中，发现自己介入不动产中介业的经营，只是后来我们大幅扩张这方面的业务却绝非意外，更有甚者，我们有意在未来继续拓展营运规模，我们将之称呼为"美国人的居家服务"，虽然依照地区的不同，我们以取得当地据点时的原名称对外经营，比如说奥玛哈的CBS、明尼拿波里市的Edina不动产或Des Moines的艾荷华不动产等，在多数我们有营运的大都会中，我们都是市场的领导者。
HomeServices is now the second largest residential brokerage business in the country. On one side or the other (or both), we participated in $37 billion of transactions last year, up 100% from 2001. Most of our growth came from three acquisitions we made during 2002, the largest of which was Prudential California Realty. Last year, this company, the leading realtor in a territory consisting of Los Angeles, Orange and San Diego Counties, participated in $16 billion of closings. In a very short period, Ron Peltier, the company’s CEO, has increased HomeServices’ revenues –and profits – dramatically. Though this business will always be cyclical, it’s one we like and in which we continue to have an appetite for sensible acquisitions.

居家服务现在是全美第二大的住宅不动产中介商，我们去年参与了总值370亿美元的不动产交易案，(包含单边或双边)，较2001年增加了一倍，大部分的成长动力来自于我们在2002年进行的三项购并案，其中最大的一件是保德信加州不动产，该公司是洛杉矶、橘郡及圣地亚哥等地最大的业者，去年促成的不动产成交总额高达160亿美元，该公司的CEO-Ron Peltier在相当短的时间之内，就让居家服务的营收及获利大幅成长，虽然这个行业的产业循环波动性相当的大，但仍然不失为我们想要继续进行购并扩张的行业。

Dave Sokol, MEHC’s CEO, and Greg Abel, his key associate, are huge assets for Berkshire. They are dealmakers, and they are managers. Berkshire stands ready to inject massive amounts of money into MEHC – and it will be fun to watch how far Dave and Greg can take the business.

Dave Sokol-MEHC的CEO及其主要伙伴Greg Abel，现在已成为Berkshire珍贵的资产，他们是梦想创造者，更是优秀的经理人，Berkshire已准备好要挹注大量的资金到MEHC，相当期待Dave与Greg会如何运用这些资金开疆辟土。

The Economics of Property/Casualty Insurance产物意外险的经营

Our core business — though we have others of great importance — is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most critical of all, the long-term outlook for both of these factors.

我们最主要的本业就是保险，当然其它事业也相当重要，想要了解Berkshire，你就必须知道如何去评估一家保险公司，其中主要的关键因素有(1)这家公司所能产生的浮存金数量(2)以及它的成本(3)最重要的是这些因素长期的展望。

To begin with, float is money we hold but don't own. In an insurance operation, float arises because premiums are received before losses are paid, an interval that sometimes extends over many years. During that time, the insurer invests the money. This pleasant activity typically carries with it a downside: The premiums that an insurer takes in usually do not cover the losses and expenses it eventually must pay. That leaves it running an “underwriting loss,” which is the cost of float. An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money. Moreover, the downward trend of interest rates in recent years has transformed underwriting losses that formerly were tolerable into burdens that move insurance businesses deeply into the lemon category.

首先浮存金是一项我们持有但却不属于我们的资金，在保险公司的营运中，浮存金产生的原因在于保险公司在真正支付损失理赔之前，一般会先向保户收取保费，在这期间保险公司会将资金运用在其它投资之上，当然这样的好处也必须要付出代价，通常保险业者收取的保费并不足以支应最后支付出去的相关损失与费用，于是保险公司便会发生承保损失，这就是浮存金的成本，而当一家公司取得浮存金成本，就长期而言低于从其它管道取得资金的成本时，它就有存在的价值，否则一旦保险事业取得浮存金的成本远高于货币市场利率时，它就像是一颗极酸的柠檬。

Historically, Berkshire has obtained its float at a very low cost. Indeed, our cost has been less than zero in many years; that is, we’ve actually been paid for holding other people’s money. In 2001, however, our cost was terrible, coming in at 12.8%, about half of which was attributable to World Trade Center losses. Back in 1983-84, we had years that were even worse. There’s nothing automatic about cheap float.

根据过去的记录显示，Berkshire 一向能够以很低的成本取得浮存金，确实在Berkshire经营的这些年来，有半数以上的年头，浮存金的成本甚至低于零，也就是说这实际上等于是别人要付费请我们帮他们保管资金，然而最近这几年，我们的成本大幅飙涨，2001年尤其恐怖，资金成本大幅飙涨至12.8%，其中半数归因于世界贸易大楼损失，回顾过去，我们在1983到1984年间，也曾有过更悲惨的记录，便宜的浮存金绝非凭空而降。
The table that follows shows (at intervals) the float generated by the various segments of Berkshire’s insurance operations since we entered the business 36 years ago upon acquiring National Indemnity Company (whose traditional lines are included in the segment “Other Primary”). For the table we have calculated our float — which we generate in large amounts relative to our premium volume — by adding net loss reserves, loss adjustment reserves, funds held under reinsurance assumed and unearned premium reserves, and then subtracting insurance-related receivables, prepaid acquisition costs, prepaid taxes and deferred charges applicable to assumed reinsurance. (Got that?)

下表中所显示的数字是，Berkshire自取得国家产险公司经营权，进入保险事业36年以来所贡献的浮存金，(其中传统业务包含在其它主险项下)，在这张计算浮存金的表中，(相对于收到的保费收入，我们持有的浮存金部位算是相当大的) 我们将所有的损失准备、损失费用调整准备、再保预先收取的资金与未赚取保费加总后，再扣除应付佣金、预付购并成本、预付税负以及取得再保业务的相关递延费用，得出浮存金的数额，弄清楚了吗?

Yearend Float (in $ millions) Other OtherYear GEICO General Re Reinsurance Primary Total

1967
 
1977
 
1987
 
1997
 
1998
 
1999
 
2000
 
2001
 
2002