article thumbnail

Warren Buffett's 2010 Shareholder Letter: What to Expect

Harvard Business Review

26, many thousands of people around the world will download Warren Buffett's 2010 shareholder letter. To help you see what is different in his 2010 letter — I offer a partial list of Buffett principles from last year's letter. But why compare apples (book value) to oranges (share price and dividends)? This Saturday, Feb.

Letter 15
article thumbnail

Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Global capital balances more than doubled between 1990 and 2010 — from $220 trillion (about 6.5 Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. times global GDP).

ROE 14