Warren Buffett and Partner Charlie Munger Reveal Their Best Business Advice For 2023The CEO and chairman of Berkshire Hathaway shared his partner in crime at the company's best aphorisms in his annual letter.

ByGabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

JOHANNES EISELE / Contributor I Getty Images
Warren Buffett and Charlie Munger.

Warren Buffett, the "Oracle of Omaha" and chairman and CEO of Berkshire Hathaway, is known forsharing adviceand philosophies — and he continued that tradition in his 2022 annual shareholder letter, which was published on Saturday.

"Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services," he wrote in this year's letter, for example.

Related:Warren Buffett Defends Stock Buybacks In Annual Shareholder Letter

Berkshire is an investment firm with a market cap ofover $600 billion, and the letter is addressed to its shareholders. In it, he also shared his feelings onstock buybacks— and outlined his favorite pieces of advice from his partner in crime at Berkshire, vice chairman Charlie Munger.

In this year's letter, he called Munger a "great partner." The tworeportedlymet at a dinner in 1959 and have been business partners and friends since. Buffett even told CNBC that, after he met Munger, "I knew that this guy [was] going to be in my life forever."

"Charlie and I think pretty much alike. But what it takes me a page to explain, he sums up in a sentence," Buffett wrote in the recent letter, saying that many of the following life and business takes were taken from a "recent podcast."

On business

Munger had several choice pieces of advice about business and investing. Here are a few:

"The world is full of foolish gamblers, and they will not do as well as the patient investor," he wrote. Hathaway has owned portions of some companies for a long time, such as American Express, a portion costing $1.3 billion it purchased in 1995, which is still paying out dividends,per the letter.

Related:Warren Buffett Makes More Than $120 Billion on Apple's $3 Trillion Milestone: 'It's Probably the Best Business I Know in the World'

In a similar vein, the lettersaid that the Munger and Buffett don't keep their minds on the "froth of the market" and instead sit on "good long-term investments." The market was not kind to Berkshire this year, with its major fluctuations helping to contribute to some $22.8 billion, in losses, at least on paper, per theNew York Times.

The pair also gave some advice about adapting to change:

"You have to keep learning if you want to become a great investor. When the world changes, you must change.

Warren and I hated railroad stocks for decades, but the world changed and finally the country had four huge railroads of vital importance to the American economy. We were slow to recognize the change, but better late than never."

On life

年代ome of the advice on life in the letter related to how a person thinks about their death. "Early on, write your desired obituary – and then behave accordingly," the letter advised.

Buffett's letter also urged people to be readers, particularly "the deceased you admire and detest." In a somewhat related note, if you're concerned about having the mental space to read the classics, "having a long attention span and the ability to concentrate on one thing for a long time is a huge advantage," the letter advised.

Boat metaphors were also used:

"Don't bail away in a sinking boat if you can swim to one that is seaworthy."

While most of the advice came from Munger, Buffett ended the letter with thoughts of his own. "Find a very smart high-grade partner – preferably slightly older than you – and then listen非常carefully to what he says."

Buffett is 92, and Munger is 99.

For the full letter,click here.

Wavy Line
Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine.

Editor's Pick

We're Now Finding Out TheDamaging Results of The Mandated Return to Office— And It's Worse Than We Thought.
He 'Grew Up in Bars' and Was Drinking By Age 10 — But Entrepreneurs Changed His Life. Now a Business Owner Himself,He's Paying It Forward.
LinkedIn Changed Its Algorithms — Here's How YourPosts Will Get More Attention Now
'Focus Is Just as Important as Passion': How to Avoid雷竞技手机版企业家精神缺失症in Franchising
Lock
Kevin O'Leary Recommends This6-Step Strategyfor Making Money on Social Media
Lock
ThisMindset Shift Changed My Life— And Gave Me the Courage to Leave My Well-Paid Full-Time Job.

Related Topics

Growing a Business

This 25-Year-Old Has 5 Restaurants, $6 Million in Revenue and a Simple Slogan: 'Don't Be a Dick'

Here's how François Reihani started Dallas-based La La Land Kind Cafe, which hires teenagers and young adults as they exit the foster system and helps them build careers.

Business News

Costco Hilariously Messes Up Birthday Cake Design: 'This Should Be Framed'

A Costco customer tried to draw a diagram to help bakery employees understand the cake design he wanted, but it didn't work out as planned.

Business News

How to Make Money Online: 32 Proven Ways to Make Extra Money Fast

年代ee how you can make money online, plus more details on how to bring in the bucks quickly.

Business News

Costco Cracks Down on Membership Sharing: 'We Don't Feel It's Right'

The wholesaler is now asking for a photo ID with the membership card at checkout.

Marketing

46% of All Google Searches Have to Do With Location, One Report Says — and Purchases Often Follow. Here's How to Boost Your Business' Visibility Locally.

Explore proven techniques and actionable tips to help you enhance your business visibility in your community and stay ahead of the competition.