Warren Buffett's annual letters to shareholders have garnered a fanbase extending far beyond the investors of his own company.
Renowned for their wit, clarity, and accessibility, Buffett's shareholder communications have set a new benchmark for corporate dialogue, profoundly influencing other chief executives.
During his long tenure leading Berkshire Hathaway (BRK.B), Warren Buffett's advice on investing and business management impacted tens of millions. However, what left the deepest impression on a particular group of admirers—other CEOs—was his exceptional ability to craft shareholder letters that were vivid and deeply resonant.
Buffett stepped down as CEO of Berkshire in December, passing the dual roles of top executive and primary author of the shareholder letter to Greg Abel. Executives note that by infusing his letters with humor and personal anecdotes, often diverging from a standard operational review of Berkshire, Buffett elevated the previously dull corporate ritual to new heights and established a fresh standard. For those seeking to improve their own shareholder letters, this means a significant increase in effort.
"It's difficult," said Jamie Dimon, CEO of JPMorgan Chase, who has written over 20 such letters. "I'm always very happy when it's done."
Dimon read investment masters Benjamin Graham and David Dodd's "Security Analysis," which featured a preface by Buffett, in his youth. Later, he studied Buffett's annual letters to Berkshire shareholders, as well as those from the period before he took over the company when he managed an investment partnership.
Dimon stated that what most impressed him about Buffett's writing was his talent for explaining complex financial concepts in plain language. In a 2016 interview, Buffett said, "I write for people like my sisters. They are smart, read a lot, and have substantial investments in the company. They don't understand financial jargon, but they don't want to be talked down to either."
"I've always tried to emulate that," Dimon said.
Buffett's shareholder letters often span more than a dozen pages and are read by an audience far exceeding Berkshire's shareholder base. Many memorable quotes from the "Oracle of Omaha" over the years offer advice applicable to investors across all sectors. Examples include his famous adage, "Be fearful when others are greedy and greedy when others are fearful," and his exhortation to "never bet against America."
Of course, making complex topics accessible is easier said than done.
Dimon revealed that crafting his shareholder letter takes months. He aims to complete an outline before his January vacation, writes on weekends, and enlists employees from across JPMorgan's vast financial empire to help verify facts.
Tom Gayner, CEO of Markel Group, a holding company often called a "mini-Berkshire," said he primarily writes his shareholder letter during the quiet period between Christmas and New Year's Day, with his wife then proofreading it. He draws inspiration from Buffett's letters, striving to mimic their clear and straightforward style.
"I just think he's a wonderful mentor," Gayner said.
According to Lawrence Cunningham, author of the book "The Essays of Warren Buffett," the investor's letters gained popularity beyond Berkshire shareholders after the Black Monday stock market crash of 1987. That market plunge led investors to debate whether poorly designed automated trading or other market structure issues caused the sudden sell-off. Amid the confusion, many turned to Buffett for insight.
"That was a national conversation, and Warren was instrumental in explaining what happened," Cunningham said.
For Buffett himself, one of the most challenging aspects of writing the letter was accepting editorial feedback. Carol Loomis, a former Fortune journalist and longtime friend of Buffett, edited his letters for decades, starting in 1977.
Initially, Buffett would send drafts to Loomis via FedEx, and they would discuss revisions over the phone. However, Buffett, accustomed to autonomy, admitted he found it difficult to accept suggested changes at first, and he felt Loomis added too many commas.
"My first reaction was usually irritation, which was totally wrong," Buffett said during a telephone interview from his Omaha office. He defended his initial stance, saying, "That's just the way you are when you write."
Loomis continued editing Buffett's letters until 2024. The two now play bridge online almost every Monday evening. Buffett remarked that these games are far more harmonious than their past debates over punctuation. "I've matured a little bit by 95," he said.
Berkshire's Greg Abel released his first self-penned shareholder letter in February. Before its release, Abel joked that writing the letter was the toughest challenge he faced in his first two months as CEO.
Initial market feedback was positive. Abel said that after the letter was posted on Berkshire's website, he received encouraging messages from friends and colleagues.
However, Abel doesn't have much time to bask in the positive reception for the 2025 letter—he's already reminded that another one will be due in February 2027.
"It's a huge undertaking," Abel recalled thinking. "Warren said, 'It doesn't get easier. The second one will be just as hard, just as challenging.'"
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