Warren Buffett's 2024 letter just dropped. As always, it's a...
Kintsugi Investing@kintsugiinvest
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Feb 24, 2025
~3 min read
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Warren Buffett's 2024 letter just dropped.
As always, it's a masterclass in investing, business, and life.
Here are the most important lessons (and why they matter to you): 🧵
As always, it's a masterclass in investing, business, and life.
Here are the most important lessons (and why they matter to you): 🧵
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1. Mistakes are inevitable, even for Buffett.
Buffett openly admits to making errors in capital allocation and hiring.
Key: Fix mistakes fast. Charlie Munger called it 'thumb-sucking' when you delay. Move on and allocate better.
Buffett openly admits to making errors in capital allocation and hiring.
Key: Fix mistakes fast. Charlie Munger called it 'thumb-sucking' when you delay. Move on and allocate better.
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2. A single great investment can outweigh dozens of mistakes.
Their greatest investments, like Apple, GEICO and Ajit Jain, overcame their shortcomings.
Key: Focus on asymmetric bets: big upside, controlled downside.
Their greatest investments, like Apple, GEICO and Ajit Jain, overcame their shortcomings.
Key: Focus on asymmetric bets: big upside, controlled downside.
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3. Berkshire paid $26.8B in taxes, more than any company in U.S. history.
While many firms dodge taxes, Berkshire thrives by reinvesting earnings and compounding capital.
Key: Great businesses don’t need financial engineering.
While many firms dodge taxes, Berkshire thrives by reinvesting earnings and compounding capital.
Key: Great businesses don’t need financial engineering.
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4. The insurance business remains Berkshire’s backbone.
Buffett explains why Property & Casualty insurance is a unique business model:
• Collect premiums upfront.
• Claims get paid years (or decades) later.
• Meanwhile, Berkshire invests the 'float.'
Key: Patience + discipline = compounding machine.
Buffett explains why Property & Casualty insurance is a unique business model:
• Collect premiums upfront.
• Claims get paid years (or decades) later.
• Meanwhile, Berkshire invests the 'float.'
Key: Patience + discipline = compounding machine.
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5. Cash is for optionality, not for holding forever.
Buffett sees cash as dry powder.
Berkshire’s cash position shrank from $354B to $272B as it deployed capital into equities and buyouts.
Key: Stay liquid, but don’t hoard cash indefinitely.
Buffett sees cash as dry powder.
Berkshire’s cash position shrank from $354B to $272B as it deployed capital into equities and buyouts.
Key: Stay liquid, but don’t hoard cash indefinitely.
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6. 'We never look at where a candidate went to school. Never.'
Buffett and Munger prioritized business acumen over credentials.
Key: Many of Berkshire’s top executives (like Pete Liegl of Forest River) had no elite degrees, but built world-class businesses.
Buffett and Munger prioritized business acumen over credentials.
Key: Many of Berkshire’s top executives (like Pete Liegl of Forest River) had no elite degrees, but built world-class businesses.
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7. Japan is Buffett’s biggest international bet.
Berkshire owns stakes in Japan’s five largest trading houses, investments that have already gained billions.
Buffett also discussed increasing his stake beyond the previously agreed ceiling of 10%.
Key: They buy back shares at reasonable prices, pay strong dividends, and deploy capital wisely.
A masterclass in finding value globally.
Berkshire owns stakes in Japan’s five largest trading houses, investments that have already gained billions.
Buffett also discussed increasing his stake beyond the previously agreed ceiling of 10%.
Key: They buy back shares at reasonable prices, pay strong dividends, and deploy capital wisely.
A masterclass in finding value globally.
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8. Ignore macro noise. Focus on great businesses.
Buffett has seen recessions, wars, and bubbles.
His playbook never changes:
• Find businesses with durable moats
• Buy at a fair price
• Let compounding work
Key: Markets fluctuate. Business fundamentals don’t.
Buffett has seen recessions, wars, and bubbles.
His playbook never changes:
• Find businesses with durable moats
• Buy at a fair price
• Let compounding work
Key: Markets fluctuate. Business fundamentals don’t.
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9. 'We will forever deploy a majority of our money in equities.'
Buffett believes businesses (not bonds or cash) are the best way to protect and grow wealth.
Key: Inflation destroys purchasing power. Own productive assets.
Buffett believes businesses (not bonds or cash) are the best way to protect and grow wealth.
Key: Inflation destroys purchasing power. Own productive assets.
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10. The U.S. economy is still the greatest investing machine in history.
Buffett ends with gratitude for America’s capitalist system.
Key: 'America is Exhibit A. Our country’s progress over 235 years is beyond what even the most optimistic colonists could have imagined.'
Buffett ends with gratitude for America’s capitalist system.
Key: 'America is Exhibit A. Our country’s progress over 235 years is beyond what even the most optimistic colonists could have imagined.'
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Buffett’s 2024 lessons in 10 points:
1. Fix mistakes fast.
2. A few big wins drive outsized returns.
3. Reinvest to compound wealth.
4. Insurance is an unmatched cash flow model.
5. Cash is for opportunities, not sitting idle.
6. Real-world skills > fancy degrees.
7. Japan’s trading houses = Buffett’s big bet.
8. Ignore macro noise. Buy great businesses.
9. Equities > cash for long-term wealth.
10. America is still the best place to invest.
1. Fix mistakes fast.
2. A few big wins drive outsized returns.
3. Reinvest to compound wealth.
4. Insurance is an unmatched cash flow model.
5. Cash is for opportunities, not sitting idle.
6. Real-world skills > fancy degrees.
7. Japan’s trading houses = Buffett’s big bet.
8. Ignore macro noise. Buy great businesses.
9. Equities > cash for long-term wealth.
10. America is still the best place to invest.
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We’re Zee and @thehowietan:
• Financially free investors
• Focused on asymmetry & risk management
We share insights to help investors build & repair their portfolios.
Follow @kintsugiinvest for more.
If this was useful, Like & Repost to share the insights!
• Financially free investors
• Focused on asymmetry & risk management
We share insights to help investors build & repair their portfolios.
Follow @kintsugiinvest for more.
If this was useful, Like & Repost to share the insights!
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@thehowietan If you could ask Buffett one question after reading his 2024 letter, what would it be?
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• Increase returns
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kintsugiinvesting.kit.com/472d51f3e1
• Increase returns
• Reduce volatility
• Identify portfolio ‘leaks’ and plug them
Get it here (free for now):
kintsugiinvesting.kit.com/472d51f3e1