The DQYDJ Weekender, 2/27/2016

August 22nd, 2020 by 
PK

It's Berkshire Hathaway shareholder letter day!  Many of you know that Warren Buffett pens an annual note to shareholders about the company, the economy and... life.  Here's the section everyone will be talking about:

America’s population is growing about .8% per year (.5% from births minus deaths and .3% from net migration). Thus 2% of overall growth produces about 1.2% of per capita growth. That may not sound impressive. But in a single generation of, say, 25 years, that rate of growth leads to a gain of 34.4% in real GDP per capita. (Compounding’s effects produce the excess over the percentage that would result by simply multiplying 25 x 1.2%.) In turn, that 34.4% gain will produce a staggering $19,000 increase in real GDP per capita for the next generation. Were that to be distributed equally, the gain would be $76,000 annually for a family of four. Today’s politicians need not shed tears for tomorrow’s children.

Indeed, most of today’s children are doing well. All families in my upper middle-class neighborhood regularly enjoy a living standard better than that achieved by John D. Rockefeller Sr. at the time of my birth. His unparalleled fortune couldn’t buy what we now take for granted, whether the field is – to name just a few – transportation, entertainment, communication or medical services. Rockefeller certainly had power and fame; he could not, however, live as well as my neighbors now do.

Warren Buffett, Annual Shareholder Letter to Berkshire Hathaway shareholders

As for the rest of the business, I've been leveling up my own railway building skills.  Do you think this qualifies me as a railroad baron?

Picture of a wooden train set with multiple levels

Click to View in Glorious Detail

Links We Liked!

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK lives in New Hampshire with his wife, kids, and dog.

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