Buffett cited Pete Liegl, the late founder of Forest River, an RV manufacturer that Berkshire acquired in 2005. Liegl, who had an MBA from Western Michigan University, took the company to new heights. “During the next 19 years, Pete shot the lights out. No competitor came close to his performance,” Buffett noted.
He also referenced Bill Gates, who left Harvard after three semesters to build Microsoft. “Look at my friend, Bill Gates, who decided that it was far more important to get underway in an exploding industry that would change the world than stick around for a parchment that he could hang on the wall,” Buffett wrote.
Another example was Ben Rosner, who built a $44 million retail empire despite never advancing beyond the sixth grade. His step-granddaughter Jessica Toonkel once told Buffett, “Ben never went past 6th grade.”
For his part, Buffett attended three universities—the University of Nebraska-Lincoln, Penn’s Wharton School, and Columbia University—but insisted that business acumen is often inherent. “I’ve observed, however, that a very large portion of business talent is innate with nature swamping nurture,” he said.
Mistakes Are Inevitable—Correct Them Fast
Buffett is no stranger to errors. Over the years, he has misjudged business prospects and hired the wrong people. Between 2019 and 2023, his shareholder letters mentioned “mistake” or “error” 16 times.“The cardinal sin is delaying the correction of mistakes,” he warned. For him, the key is not avoiding errors altogether but addressing them swiftly before they spiral out of control.
One Winning Decision Can Change Everything
Buffett believes that while mistakes come and go, a single great decision can define an entire business. “Our experience is that a single winning decision can make a breathtaking difference over time,” he wrote.
He pointed to pivotal moments in Berkshire Hathaway’s history: acquiring GEICO, bringing former McKinsey consultant Ajit Jain into management, and partnering with Charlie Munger, who served as vice chairman for more than four decades.
“Mistakes fade away; winners can forever blossom,” Buffett remarked.
Saving and Reinvestment Are Key to Growth
Buffett emphasised that the United States has thrived because of a culture of saving and reinvestment.
Since the country’s founding, “We needed many Americans to consistently save and then needed those savers or other Americans to wisely deploy the capital thus made available,” he explained.
Likewise, Berkshire Hathaway’s shareholders have prospered by reinvesting dividends instead of spending them. Buffett had a message for regulators as well: “Never forget that we need you to maintain a stable currency, and that result requires both wisdom and vigilance on your part.”
Buffett’s annual letters are more than financial reports—they offer lessons in business and life. This year, he reinforced a few key principles: success is not about a prestigious education, mistakes must be fixed quickly, and one great decision can reshape the future. Above all, saving and reinvesting remain the cornerstones of lasting prosperity.
