1969年12月5日致合伙人信

This letter is to supply you with some published information relating to our two controlled companies (and their four principal operating components), as well as to give you my general views regarding their operations. My comments are not designed to give you loads of detailed information prospectus-style, but only my general "slant" as I see the businesses at this time.

本信旨在向您提供与我们的两家控股公司（及其四大主要运营组成部分）相关的一些公开信息，并就其运营情况给出我的总体看法。我的评论并非旨在为您提供招股说明书式的海量详细信息，而仅是我对当前这些业务的总体“倾向性”观点。

At yearend, BPL will own 800,000 of 1,000,000 shares outstanding of Diversified Retailing Company. First Manhattan Company and Wheeler, Munger & Company will each own 100,000 shares. DRC previously owned 100% of Hochschild, Kohn & Company of Baltimore, and currently owns 100% of Associated Retail Stores (formerly named Associated Cotton Shops). On December 1st, DRC sold its entire interest in H-K to Supermarkets General Corp. for $5,045,205 of cash plus non-interest bearing SGC notes for $2 million due 2-1-70, and $4,540,000 due 2-1-71. The present value of these notes approximates $6.0 million so, effectively, DRC received about $11 million on the sale. Various warranties were made by DRC in connection with the sale, and, while we expect no claims pursuant to the contract, a remote contingent liability always exists while warranties are in force.

截至年底，BPL 将持有 Diversified Retailing Company（DRC）100 万股流通股中的 80 万股。First Manhattan Company 和 Wheeler, Munger & Company 将各持有 10 万股。DRC 此前全资拥有位于巴尔的摩的 Hochschild, Kohn & Company，目前全资拥有 Associated Retail Stores（前身为 Associated Cotton Shops）。12 月 1 日，DRC 将其在 H-K 的全部权益出售给 Supermarkets General Corp.，获得 5,045,205 美元现金，外加 SGC 出具的无息票据，金额分别为 200 万美元（1970 年 2 月 1 日到期）和 4,540,000 美元（1971 年 2 月 1 日到期）。这些票据的现值约为 600 万美元，因此 DRC 实质上通过这笔出售获得了约 1100 万美元。DRC 就此次出售做出了各项保证，尽管我们预计不会因合同产生任何索赔，但只要保证有效，始终存在极小的或有负债。

Associated Retail Stores has a net worth of about $7.5 million. It is an excellent business with a strong financial position, good operating margins and a record of increasing sales and earnings in recent years. Last year, sales were about $37.5 million and net income about $1 million. This year should see new records in sales and earnings, with my guess on the latter to be in the area of $1.1 million after full taxes.

Associated Retail Stores 的净值约为 750 万美元。这是一家优秀的企业，财务状况稳健，营业利润率良好，并且近年来销售额和盈利持续增长。去年，销售额约为 3750 万美元，净利润约为 100 万美元。本年度销售额和盈利应会再创新高，我估计税后净利润将在 110 万美元左右。

DRC has $6.6 million in debentures outstanding (prospectus with full description of the business as of December 18th, 1967 and the debenture terms will be sent you upon request) which have one unusual feature in that if I, or an entity controlled by me, is not the largest shareholder of DRC, the debentureholders have the right to present their debentures for payment by the company at par.

DRC 有 660 万美元的未偿债券（如有需求，可向您寄送包含截至 1967 年 12 月 18 日业务完整描述及债券条款的招股说明书），这些债券有一项特殊条款：如果我或我控制的实体不再是 DRC 的最大股东，债券持有人有权要求公司以面值兑付其债券。

Thus, DRC has tangible net assets of about $11.50 - $12.00 per share, an excellent operating business and substantial funds available for reinvestment in other operating businesses. On an interim basis, such funds will be employed in marketable securities.

因此，DRC 的每股有形净资产约为 11.50 至 12.00 美元，拥有优秀的运营业务以及可用于再投资其他运营业务的充裕资金。在过渡期间，这些资金将投资于有价证券。

Berkshire Hathaway Inc. has 983,582 shares outstanding, of which BPL owns 691,441. B-H has three main operating businesses, the textile operation, the insurance operation (conducted by National Indemnity Company and National Fire & Marine Insurance Company, which will be collectively called the insurance company) and the Illinois National Bank and Trust Company of Rockford, Illinois. It also owns Sun Newspapers Inc, Blacker Printing Company and 70% of Gateway Underwriters, but these operations are not financially significant relative to the total.

伯克希尔·哈撒韦公司（Berkshire Hathaway Inc.）发行在外股份为 983,582 股，其中 BPL 持有 691,441 股。B-H 拥有三大主要运营业务：纺织业务、保险业务（由 National Indemnity Company 和 National Fire & Marine Insurance Company 共同开展，合称保险公司）以及位于伊利诺伊州罗克福德的伊利诺伊国民银行与信托公司（Illinois National Bank and Trust Company）。此外还拥有 Sun Newspapers Inc、Blacker Printing Company 以及 Gateway Underwriters 70% 的股权，但这些业务在整体中的财务重要性较低。

The textile operation presently employs about $16 per share in capital and, while I think it has made some progress relative to the textile industry generally, cannot be judged a satisfactory business. Its return on capital has not been sufficient to support the assets employed in the business and, realistically, an adequate return has less than an even chance of being averaged in the future. It represents the best segments of the business that existed when we purchased control four and one-half years ago. Capital from the other segments has been successfully redeployed - first, on an interim basis into marketable securities and, now on a permanent basis into insurance and banking. I like the textile operating people - they have worked hard to improve the business under difficult conditions - and, despite the poor return, we expect to continue the textile operation as long as it produces near current levels.

纺织业务目前每股占用约 16 美元的资本，虽然我认为相较于整个纺织行业，它已取得一定进步，但仍不能算作令人满意的业务。其资本回报率不足以支持业务中投入的资产，且现实地看，未来平均实现充足回报的可能性不足一半。它代表了我们四年半前取得控股权时该业务中最好的部分。其他部分的资本已被成功重新配置——最初暂时配置于有价证券，现在则永久性地转入了保险和银行业务。我欣赏纺织业务的运营人员——他们在艰难条件下努力改善业务——尽管回报不佳，但只要其产出接近当前水平，我们就会继续维持纺织业务。

The insurance operation (of which B-H owns virtually 100%) and the bank (where B-H owns 97.7%) present a much happier picture. Both are first-class businesses, earning good returns on capital and stacking up well on any absolute or comparative analysis of operating statistics. The bank has about $17 per share of net tangible assets applicable to B-H, and the insurance company approximately $15. I would estimate their normal current earning power to be about $4 per share (compared to about $3.40 from operations pro-forma in 1968), with good prospects for future growth on the combined $32 of tangible net assets in the bank and insurance company. Adding in the textile business and miscellaneous assets, and subtracting parent company bank debt of about $7 million, gives a tangible net asset value of about $43 per share for B-H, or about $45 stated book value, allowing for the premium over tangible assets paid for the bank.

保险业务（B-H 持有其几乎 100% 的股权）和银行（B-H 持有 97.7% 的股权）则呈现出更为乐观的景象。两者均为一流企业，资本回报率良好，在任何绝对或比较性的运营统计分析中都表现优异。银行归属于 B-H 的每股有形净资产约为 17 美元，保险公司约为 15 美元。我估计它们目前的正常盈利能力约为每股 4 美元（相比之下，1968 年形式运营收益约为 3.40 美元），且在银行和保险公司合计 32 美元有形净资产的基础上，未来具有良好的增长前景。加上纺织业务和其他杂项资产，并减去母公司约 700 万美元的银行债务后，B-H 的每股有形净资产价值约为 43 美元，若考虑收购银行时支付的有形资产溢价，报表账面价值约为 45 美元。

One caveat - when I talk above of tangible net assets. I am valuing the $75 million of bonds held by the insurance company and bank at amortized cost. This is in accord with standard accounting procedures used in those industries and also in accord with the realities of their business operations where it is quite unlikely that bonds will have to be sold before maturity. At today's historically low bond prices, however, our bonds have a market value substantially below carrying value, probably on the order of $10 per share of B-H stock.

有一点需要说明——当我上文谈论有形净资产时，我对保险公司和银行持有的 7500 万美元债券是按摊余成本计价的。这符合这些行业使用的标准会计程序，也符合其业务运营的现实情况，即债券在到期前需要出售的可能性极小。然而，按照目前历史低位的债券价格，我们债券的市场价值远低于账面价值，可能相当于每股 B-H 股票约 10 美元。

Between DRC and B-H, we have four main operating businesses with three of them in my opinion, definitely first class by any of the usual standards of evaluation. The three excellent businesses are all run by men over sixty who are largely responsible for building each operation from scratch. These men are hard working, wealthy, and good – extraordinarily good. Their age is a negative, but it is the only negative applicable to them. One of the reasons I am happy to have a large segment of my capital in B-H and DRC is because we have such excellent men in charge of the operating businesses.

在 DRC 和 B-H 中，我们拥有四大主要运营业务，其中按我的看法，有三项按照任何常规评估标准都绝对属于一流。这三项优秀业务均由年过六十的男士运营，他们很大程度上从零开始缔造了每项业务。这些人勤奋、富有且品行优良——极其优秀。年龄是一个不利因素，但这是适用于他们的唯一不利因素。我乐于将大部分资本投入 B-H 和 DRC 的原因之一，就是我们有如此优秀的运营负责人。

We have various annual reports, audits, interim reports, proxy materials prospectuses, etc… applicable to our control holdings and we will be glad to supply you with any item you request. I also solicit your written questions and will send to all partners the questions and answers shortly before yearend. Don't hesitate to ask any question at all that comes to mind - if it isn't clear to you, it probably isn't clear to others - and there is no reason for any of you to be wondering about something that I might clear up.

我们持有各种年度报告、审计报告、中期报告、委托投票材料、招股说明书等，涉及我们的控股资产，并乐意向您提供任何您所需的资料。同时，我也征求您的书面问题，并将在年底前向所有合伙人发送问题与解答。请随时提出任何您想到的问题——如果您不明了，很可能其他人也不明了——没有理由让您对某些事情心存疑虑，而我或许可以澄清。

DRC and B-H presently pay no dividends and will probably pay either no dividends or very modest dividends for some years to come. There are a number of reasons for this. Both parent companies have borrowed money - we want to maintain a good level of protection for depositors at the bank and policyholders at the insurance company - some of the operating companies have very satisfactory ways to utilize additional capital - and we are hopeful of finding new businesses to both diversify and augment our earning power.

DRC 和 B-H 目前不派发股息，且在未来的若干年内很可能继续不派发或仅派发极微薄的股息。这存在多方面原因。两家母公司都有借款——我们希望为银行的储户和保险公司的保单持有人维持良好的保障水平——部分运营企业有非常令人满意的途径来利用新增资本——并且我们希望找到新业务，以分散投资并增强盈利能力。

My personal opinion is that the intrinsic value of DRC and B-H will grow substantially over the years. While no one knows the future, I would be disappointed if such growth wasn't at a rate of approximately 10% per annum. Market prices for stocks fluctuate at great amplitudes around intrinsic value but, over the long term, intrinsic value is virtually always reflected at some point in market price. Thus, I think both securities should be very decent long-term holdings and I am happy to have a substantial portion of my net worth invested in them. You should be unconcerned about short-term price action when you own the securities directly, just as you were unconcerned when you owned them indirectly through BPL. I think about them as businesses, not “stocks”, and if the business does all right over the long term, so will the stock.

我个人的看法是，DRC 和 B-H 的内在价值将随着岁月的推移大幅增长。尽管无人知晓未来，但如果这样的增长未达到约年化 10% 的速度，我将会感到失望。股票市价会围绕内在价值大幅波动，但长期来看，内在价值几乎总会在某个时点反映在市场价格上。因此，我认为这两只证券应该是非常不错的长期持有品种，并且我很高兴自己净资产的很大一部分投资于它们。当您直接持有这些证券时，不必担忧短期价格波动，正如您过去通过 BPL 间接持有时无需担忧一样。我将其视为企业，而非“股票”，如果企业的长期表现良好，股票也会如此。

I want to stress that I will not be in a managerial or partnership status with you regarding your future holdings of such securities. You will be free to do what you wish with your stock in the future and so, of course, will I. I think that there is a very high probability that I will maintain my investment in DRC and B-H for a very long period, but I want no implied moral commitment to do so nor do I wish to advise others over an indefinite future period regarding their holdings. The companies, of course, will keep all shareholders advised of their activities and you will receive reports as issued by them, probably on a semi-annual basis. Should I continue to hold the securities, as I fully expect to do, my degree of involvement in their activities may vary depending upon my other interests. The odds are that I will take an important position on matters of policy, but I want no moral obligation to be other than a passive shareholder, should my interests develop elsewhere.

我想强调，对于您未来持有这些证券，我将不处于管理或合伙关系地位。您未来可以自行决定如何处理您的股票，我当然也一样。我认为极大概率我会在非常长的时间内保持对 DRC 和 B-H 的投资，但我不想对此做出任何隐含的道德承诺，也不愿在未来无限期地为他人提供持股建议。当然，这些公司会向所有股东通报其活动，您将按他们所发的报告收到信息，可能是每半年一次。若我继续持有这些证券（我完全预期如此），我对他们活动的参与程度将根据我的其他兴趣而有所变化。很有可能我会在政策事务上发挥重要作用，但我不想承担除被动股东以外的任何道德义务，假如我的兴趣转向别处的话。

We presently plan to make the initial BPL cash distribution on January 5th, which will now come to at least 64% of January 1, 1969 capital less any distributions (including monthly payments) you have received from us since January 1, 1969. There is now pending a public offering, headed by Merrill, Lynch, Pierce, Fenner & Smith, of our Blue Chip Stamps holdings which, if completed this month as expected, should bring the figure to at least 70%.

我们目前计划于 1 月 5 日进行 BPL 的首次现金分配，该金额至少将达到 1969 年 1 月 1 日资本减去自 1969 年 1 月 1 日以来您从我们这里收到的任何分配（包括每月付款）后的 64%。目前，由美林、皮尔斯、芬纳与史密斯公司（Merrill, Lynch, Pierce, Fenner & Smith）牵头的我们持有的 Blue Chip Stamps 股份的公开发行正在进行中，若如预期于本月完成，该比例应至少提升至 70%。

If you wish Bill and me to give you our ideas regarding bonds in March, you should purchase U.S. Treasury Bills maturing in late March with the applicable portion of the January 5th distribution. Then advise us in the last week of February of the amount you wish to invest in bonds and we will let you know our thoughts.

如果您希望 Bill 和我在三月份就债券提供我们的想法，您应使用 1 月 5 日分配中相应的部分购买三月下旬到期的美国国库券。然后在二月的最后一周告知我们您希望投资债券的金额，我们将告知您我们的想法。

About the middle of January (as soon as the exact amounts are figured and shares are received from the Transfer Agent after having been registered in your name) we will distribute the DRC and B-H stock applicable to your partnership interest and subsequently advise you of your tax basis and acquisition date attributable to the stock. Such shares will be "legended" as described in the enclosed letter from Monen, Seidler & Ryan. These stock certificates are valuable and should be kept in a safe place.

大约在一月中旬（一旦计算出确切数额，并且股票经过户代理登记在您名下后收到），我们将分配与您的合伙权益相应的 DRC 和 B-H 股票，随后告知您该股票的税基和取得日期。如附信中 Monen, Seidler & Ryan 所述，这些股票将带有“说明标记”。这些股票凭证价值不菲，应妥善保管。

In past letters I had expressed the hope that BPL could supply a mechanism whereby you could, if you wished, automatically convert your DRC and B-H to cash. I have had two law firms consider extensively the status of these shares in your hands following the liquidation and the accompanying letters (which should be saved and kept with the shares) give their conclusions. As you can see, it is not an area that produces simple, clear-cut guidelines. I see no prudent way to implement the alternatives I had previously been considering. Therefore, you must follow the guidelines they set forth if you wish to dispose of your shares. As you probably realize, the restrictions on subsequent sale apply more severely to Susie and me (because of my continued "insider" position) than they probably do to you. Substantial quantities of securities often are sold via the "private sale" option described in paragraph (3) of the opinion. If the rules become clearer or more simplified in the future, I will be sure to let you know.

在以往的信件中，我曾表示希望 BPL 能提供一种机制，使您如果愿意，可以自动将您持有的 DRC 和 B-H 转换为现金。我已请两家律师事务所深入研究了清算后这些股票在您手中的状况，随附的信件（应妥善保存并与股票一同保管）给出了他们的结论。如您所见，这并非一个能产生简单、明确指引的领域。我看不到任何审慎的方式来实现我之前考虑的替代方案。因此，若您希望处置您的股票，必须遵循他们提出的指引。您可能已意识到，后续出售的限制对 Susie 和我（由于我持续的“内部人”身份）可能比您更为严格。大量证券通常通过意见书中第（3）段描述的“私人出售”方式卖出。若未来规则变得更加清晰或简化，我一定会让您知晓。

At the time of distribution of DRC and B-H, I will advise you of the values applied to such shares at 1969 yearend. You will receive our audit and tax letter about the end of January. It presently appears that sale of our Blue Chip shares and a substantial increase in value of DRC and B-H will bring our overall gain for the year to slightly over 6%.

在分配 DRC 和 B-H 股票时，我将告知您这些股票在 1969 年底所采用的价值。您将在 1 月底前后收到我们的审计和税务信函。目前看来，我们出售 Blue Chip 股票以及 DRC 和 B-H 价值的大幅增长，将使我们本年度的整体收益略超 6%。

My next letter will be in late December, summarizing the questions and answers regarding DRC and B-H. and also supplying a final estimate on the January 5th cash distribution.

我的下一封信将在 12 月下旬，总结有关 DRC 和 B-H 的问答，并将提供 1 月 5 日现金分配的最终估计。

Warren E. Buffett
WEBI glk
Enclosures:
Legal opinion. Monen, Seidler & Ryan
Concurring opinion, Munger, Tolles. Hills & Rickershauser 1968 Annual Report. Berkshire Hathaway. Inc.
1969 Semi-Annual Report. Berkshire Hathaway. Inc.
April 3. 1969 letter to Shareholders. Berkshire Hathaway. Inc. 1968 Annual Report. Diversified Retailing Company. Inc.
Financial information regarding Associated Retail Stores. Inc. Financial information regarding Illinois National Bank & Trust Co. 1969 Best's Report. National Indemnity Company
1969 Best's Report. National Fire & Marine Insurance Company

沃伦·E·巴菲特
WEBI glk
附件：
法律意见书。Monen, Seidler & Ryan
同意意见书，Munger, Tolles, Hills & Rickershauser
1968 年年度报告。Berkshire Hathaway, Inc.
1969 年半年度报告。Berkshire Hathaway, Inc.
1969 年 4 月 3 日致股东信。Berkshire Hathaway, Inc.
1968 年年度报告。Diversified Retailing Company, Inc.
关于 Associated Retail Stores, Inc. 的财务信息。关于 Illinois National Bank & Trust Co. 的财务信息。
1969 年 Best 报告。National Indemnity Company
1969 年 Best 报告。National Fire & Marine Insurance Company