On Health Care Industry

Question: Opinion on the healthcare industry and its costs? Buffett: We looked at healthcare costs, which were exploding a few years ago. Workman’s Comp costs have risen dramatically, and are huge for us. $6,000-$7,000 per employee. That’s in inflationary part of the US economy and we and our employees can’t control it. Health costs will […]

Buffett on Good Businesses

By Warren Buffett This article is an excerpt from Warren Buffett’s Letter to Berkshire Shareholders, 1987 Gypsy Rose Lee announced on one of her later birthdays: “I have everything I had last year; it’s just that it’s all two inches lower.” As the table shows, during 1987 almost all of our businesses aged in a more upbeat way. […]

Buffett on Railroad Industry

[Q: What are your views on the railroad industry?] I don’t think the railroad industry will be a lot more exciting, but the competitive position of the railroads has improved somewhat since 20 years ago. There’s been progress on labor issues and an improved competitive position vis-a-vis truckers. Higher oil prices hurt railroads, but hurt […]

Buffett on Newspaper Industry

[Q – Are you still down on newspapers? Ipad and other e-reading technologies – will it end up with contraction in earnings retained by content provider or by distributor?] WB: When money at newspapers came from advertising – it was on average about 75%, they used to be only game in town, and what a […]