6 insights from Buffett's 1987 letter you shouldn't miss

In our previous stories, we've unpacked several of Warren Buffett's key investing principles, and this time, we dive into his 1987 letter to Berkshire Hathaway shareholders, which is a treasure trove of insights that remain incredibly relevant. As always, Buffett's sharp observations on business strategy, capital allocation, and investment discipline provide valuable lessons that transcend decades. Let's break down the six critical themes that stood out in this letter. Consistency and returns: The case for stability In the investing world, change is often equated with excitement. But Buffett argues that the best returns usually come from companies that have been doing the same thing for decades. Businesses that constantly encounter significant changes are prone to mistakes and failures. On the flip side, those that have remained steadfast in their operations, consistently delivering value to customers, tend to build robust franchises and deliver higher returns. Investors tend to get swept up by the allure of rapid transformation, assign

This article was originally published on April 01, 2025.