A 39.6% return. $1.6 billion added from Coca-Cola and Gillette alone. By any measure,1991 was a year of triumph for Berkshire Hathaway. But Warren Buffett wasn’t celebrating. He was explaining why the same company can be worth 25 times earnings one day and 10 times earnings the next, without reporting a single bad quarter. The answer lies in a distinction that most investors ignore, and that business schools rarely teach. The letter contained
