Buffett's 1985-86 letters dispel cash flow, book value myths

Warren Buffett's 1985 and 1986 letters to Berkshire Hathaway shareholders are packed with timeless lessons—the kind that make you rethink how you look at businesses and investments. From commodity traps to flawed incentive plans and the myth of cash flow, Buffett's insights are as relevant today as they were back then. In continuation of our story series, we have laid out key takeaways from Buffett's 1985 and 1986 letters.

This article was originally published on March 31, 2025.