Bill Gates is a big fan of Warren Buffett.
Gates’ charity, The Gates Foundation, was gifted shares of Buffett’s Berkshire Hathaway worth almost $US30 billion back 2006 and Buffett serves as a trustee of the Foundation.
In a YouTube video posted Sunday, Gates talks a bit about why he likes this passage from the letter so much — it’s about the history of Buffett the investor and Berkshire the company.
In the video, Gates says that what works about what he calls the “Berkshire system” is that is maximizes the potential of businesses by giving them autonomy as well as the explicit support of the whole Berkshire organisation, even if mistakes are made.
Gates added that, “What really struck me this time about the letter was the value of experience. [Buffett] is better today than ever because he’s seen so many businesses and he understands business profitability so incredibly well,” and says this is the most important annual letter Buffett has ever written.