such inequities. (We subscribe to the view Jack Benny expressed
upon receiving an acting award: "I don't deserve this, but then,
I have arthritis and I don't deserve that either.")
也因此当初这些明星经理人加入时，我们并抱持着极高的期待，事后证明得到的
结果远高于预期，我们获得远高于我们所应得的，当然我们很乐意接受这样不公平的对待，
我们借用杰克班尼在获得最佳男主角时的感言：「我不应该得到这个奖项，
但同样地我也不应该得到关节炎。」
Beyond the Sainted Seven, we have our other major unit,
insurance, which I believe also has a business value well above
the net assets employed in it. However, appraising the business
value of a property-casualty insurance company is a decidedly
imprecise process. The industry is volatile, reported earnings
oftentimes are seriously inaccurate, and recent changes in the
Tax Code will severely hurt future profitability. Despite these
problems, we like the business and it will almost certainly
remain our largest operation. Under Mike Goldberg's management,
the insurance business should treat us well over time.
除了这七个圣徒之外，我们还有一项主要的事业-保险，同样地我也认为
它的价值远高于其帐列的资产，只是要评估一家产物意外险公司的价值
就没有办法那么明确了，这个产业变动很大，报表所列的获利数字有时
会有很大的偏差，而且最近税法修正对我们未来年度的获利有很大的影响，
尽管如此保险事业仍会是我们经营事业的最大重心，在Mike Goldberg的管理之下，
保险事业的报酬仍可期待。
With managers like ours, my partner, Charlie Munger, and I
have little to do with operations. in fact, it is probably fair
to say that if we did more, less would be accomplished. We have
no corporate meetings, no corporate budgets, and no performance
reviews (though our managers, of course, oftentimes find such
procedures useful at their operating units). After all, what can
we tell the Blumkins about home furnishings, or the Heldmans
about uniforms?
有这些优秀的专业经理人，在事业的日常营运上，查理孟格跟我实在是
没有什么好费心思的地方，事实上，平心而论我们管的越多，可能只会把事情搞砸，
在Berkshire我们没有企业会议，也没有年度预算，更没有绩效考核
(当然各个企业单位因应自身所需，有自己的一套管理办法) ，但总的来说，
我们实在没有什么可以告诉指导Blumkin如何去卖家具事业或是指导
Heldman家族如何经营制服事业。
Our major contribution to the operations of our subsidiaries
is applause. But it is not the indiscriminate applause of a
Pollyanna. Rather it is informed applause based upon the two
long careers we have spent intensively observing business
performance and managerial behavior. Charlie and I have seen so
much of the ordinary in business that we can truly appreciate a
virtuoso performance. Only one response to the 1987 performance
of our operating managers is appropriate: sustained, deafening
applause.
我们对于这些所属事业单位最重要的支持就是适时地给予掌声，但这绝对不是在
做烂好人，相反地这是长久下来我们深入观察这些企业的经营结果与管理当局的
作为所给予的正面肯定，我们两个人这些年来看过太多平庸企业的表现，所以我们
是真正地珍惜他们艺术级的演出，对于1987年旗下子公司整体的表现，
我们只能报以热烈的掌声，而且是震耳欲聋的掌声。
Sources of Reported Earnings
盈余的来源
下表显示Berkshire主要盈余的来源，其中商誉的摊销与购买法的会计调整数，
特别从各个企业挑出汇总成单独一栏，事实上这样的目的是为了让旗下事业的
经营绩效，不因我们买下他们而有所影响，在1983与1986年的年报中，
我已不只一次的解释这样的表达方式会比依照一般公认会计原则更符合
管理当局与投资者的需要，当然最后加总结算的数字，还是会与会计师
出具的财务报表上的盈余数字完全一致。
The table on the following page shows the major sources of
Berkshire's reported earnings. In the table, amortization of
Goodwill and other major purchase-price accounting adjustments
are not charged against the specific businesses to which they
apply but, instead, are aggregated and shown separately. In
effect, this procedure presents the earnings of our businesses as
they would have been reported had we not purchased them. In
appendixes to my letters in the 1983 and 1986 annual reports, I
explained why this form of presentation seems to us to be more
useful to investors and managers than the standard GAAP
presentation, which makes purchase-price adjustments on a
business-by business basis. The total net earnings we show in
the table are, of course, identical to the GAAP figures in our
audited financial statements.
In the Business Segment Data on pages 36-38 and in the
Management's Discussion section on pages 40-44 you will find much
additional information about our businesses. In these sections
you will also find our segment earnings reported on a GAAP basis.
I urge you to read that material, as well as Charlie Munger's
letter to Wesco shareholders, describing the various businesses
of that subsidiary, which starts on page 45.
在后面的部门别信息中，大家可以找到个别事业的详细信息，除此之外，
我也强烈建议大家一定要看查理写给Wesco股东叙述其旗下事业情况的一封信
1987
Unit:
US'000
Earnings Before
Income Tax
After
Income
Tax
PercentTotal
Berkshire
Share
Berkshire
Share
Earnings from Operation
Insurance Group
Underwriting (55,429) (20,696)
Net Investment Income 152,483 136,658
Buffalio News 39,410 21,304
Fechheimer 13,332 6,580
Kirby 22,408 12,891
Nebraska Furniture Mart 16,837 7,554
Scott Fetzer-Diversified 30,591 17,555
See's Candies 31,693 17,363
Wesco Financial Corporation-
Parent 6,209 4,978
World Book 25,745 15,136
Amortization of Goodwill (2,862) (2,862)
Interest on Debt (11,474) (5,905)
Shareholder's Contribution (4,938) (2,963)
Other 16,914 7,152
0 280,919 214,745
Realized Securities Gain 27,319 19,807
Total Earnings-all entities 0 308,238 234,552
Gypsy Rose Lee在她晚年的一场生日宴会上宣布：「我还是拥有去年所有的一切，
现在唯一的差别是全部都矮了两吋。」
如同本表所示，在1987年几乎我们所有的事业都又成长的一岁。
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.
我们旗下这些事业实在是没有什么新的变化可以特别提出报告的，
所谓没有消息就是好消息，剧烈的变动通常不会有特别好的绩效，
当然这与大部分的投资人认为的刚好相反，大家通常将最高的本益比
给予那些擅长画大饼的企业，这些美好的远景会让投资人不顾现实经营的情况，
而一昧幻想未来可能的获利美梦，对于这种爱做梦的投资人来说，任何路边的野花，
都会比邻家的女孩来的具吸引力，不管后者是如何贤慧。
There's not a lot new to report about these businesses - and
that's good, not bad. Severe change and exceptional returns
usually don't mix. Most investors, of course, behave as if just
the opposite were true. That is, they usually confer the highest
price-earnings ratios on exotic-sounding businesses that hold out
the promise of feverish change. That prospect lets investors
fantasize about future profitability rather than face today's
business realities. For such investor-dreamers, any blind date
is preferable to one with the girl next door, no matter how
desirable she may be.
经验显示，能够创造盈余新高的企业，现在做生意的方式通常与其五年前
甚至十年前没有多大的差异，当然管理当局绝对不能够太过自满，因为
企业总有不断的机会可以改善本身的服务、产品线、制造能力等等，
且绝对必须要好好把握，不过一家公司若是为了改变而改变，反而可能
增加犯错的机会，讲的更深入一点，在一块动荡不安的土地之上，是不太
可能建造一座固若金汤的城堡，而具有这样稳定特质的企业却是持续创造
高获利的关键。
Experience, however, indicates that the best business
returns are usually achieved by companies that are doing
something quite similar today to what they were doing five or ten
years ago. That is no argument for managerial complacency.
Businesses always have opportunities to improve service, product
lines, manufacturing techniques, and the like, and obviously
these opportunities should be seized. But a business that
constantly encounters major change also encounters many chances
for major error. Furthermore, economic terrain that is forever
shifting violently is ground on which it is difficult to build a
fortress-like business franchise. Such a franchise is usually
the key to sustained high returns.
先前提到财星杂志的研究，可以充分支持我的论点，在1977年到1986年间，
总计1,000家中只有25家能够达到连续十年平均股东权益报酬率达到20%的标准，
且没有一年低于15%的双重标准，而这些优质企业同时也是股票市场上的宠儿，
在所有的25家中有24家的表现超越S&P500指数。
The Fortune study I mentioned earlier supports our view.
Only 25 of the 1,000 companies met two tests of economic
excellence - an average return on equity of over 20% in the ten
years, 1977 through 1986, and no year worse than 15%. These
business superstars were also stock market superstars: During the
decade, 24 of the 25 outperformed the S&P 500.
这些财富之星可能让你大开眼界，首先相对于本身支付利息的能力，
他们所运用的财务杠杆极其有限，一家真正好的公司是不需要借钱的，
第二除了有一家是所谓的高科技公司，另外少数几家属于制药业以外，
大多数的公司产业相当平凡普通，大部分现在销售的产品或服务与十年前
大致相同，(虽然数量或是价格、或是两者都有，比以前高很多)，
这些公司的记录显示，充分运用现有产业地位，或是专注在单一领导的
产品品牌之上通常是创造企业暴利的不二法门。
The Fortune champs may surprise you in two respects. First,
most use very little leverage compared to their interest-paying
capacity. Really good businesses usually don't need to borrow.
Second, except for one company that is "high-tech" and several
others that manufacture ethical drugs, the companies are in
businesses that, on balance, seem rather mundane. Most sell nonsexy
products or services in much the same manner as they did ten
years ago (though in larger quantities now, or at higher prices,
or both). The record of these 25 companies confirms that making
the most of an already strong business franchise, or
concentrating on a single winning business theme, is what usually
produces exceptional economics.
事实上我们在Berkshire的经验正是如此，我们的专业经理人所以能够
缔造优异的成绩，所从事的业务相当平凡，但重点是把它们做到极致，
经理人致力于保护企业本身、控制成本，基于现有能力寻找新产品与
新市场来巩固既有优势，他们从不受外界诱惑，钜细靡遗地专注于
企业之上，而其成绩有目共睹。
Berkshire's experience has been similar. Our managers have
produced extraordinary results by doing rather ordinary things -
but doing them exceptionally well. Our managers protect their
franchises, they control costs, they search for new products and
markets that build on their existing strengths and they don't get
diverted. They work exceptionally hard at the details of their
businesses, and it shows.
以下是近况报导
Here's an update:
克里思蒂小姐嫁给一位考古学家，她曾说︰「配偶最理想的职业就是考古学家，
因为你越老，他就越有兴趣」，事实上应该是商学院而非考古学系的学生，
需要多多研究B太太-这位NFM高龄94岁的负责人。
o Agatha Christie, whose husband was an archaeologist, said
that was the perfect profession for one's spouse: "The older you
become, the more interested they are in you." It is students of
business management, not archaeologists, who should be interested
in Mrs. B (Rose Blumkin), the 94-year-old chairman of Nebraska
Furniture Mart.
五十年以前B太太以五百块美金创业，到如今NFM已是全美远近驰名的家具量贩店，
但是B太太还是一样从早到晚，一个礼拜工作七天，掌管采购、销售与管理，
我很确定她现在正蓄势待发，准备在未来的五到十年内，全力冲刺再创高峰，
也因此我已说服董事会取消一百岁强迫退休的年龄上限，(也该是时候了，
随着时光的流逝，越来我越相信这个规定是该修改了)
Fifty years ago Mrs. B started the business with $500, and
today NFM is far and away the largest home furnishings store in
the country. Mrs. B continues to work seven days a week at the
job from the opening of each business day until the close. She
buys, she sells, she manages - and she runs rings around the
competition. It's clear to me that she's gathering speed and may
well reach her full potential in another five or ten years.
Therefore, I've persuaded the Board to scrap our mandatory
retirement-at-100 policy. (And it's about time: With every
passing year, this policy has seemed sillier to me.)
去年(1987年) NFM的销货净额是一亿四千多万美元，较前一年度成长8%，
这是全美独一无二的一家店，也是全美独一无二的家族，B太太跟她三个儿子
拥有天生的生意头脑、品格与冲劲，且分工合作，团结一致。
Net sales of NFM were $142.6 million in 1987, up 8% from
1986. There's nothing like this store in the country, and
there's nothing like the family Mrs. B has produced to carry on:
Her son Louie, and his three boys, Ron, Irv and Steve, possess
the business instincts, integrity and drive of Mrs. B. They work
as a team and, strong as each is individually, the whole is far
greater than the sum of the parts.
B太太家族的杰出表现，不但让身为股东的我们受益良多，NFM的客户们
更受惠更大，只要选择NFM的产品据估计光是1987年就可省下至少三千万美元，
换句话说若客户到别处去买可能要贵上这么多钱。
The superb job done by the Blumkins benefits us as owners,
but even more dramatically benefits NFM's customers. They saved
about $30 million in 1987 by buying from NFM. In other words,
the goods they bought would have cost that much more if purchased
elsewhere.
去年我接到一封无名氏所写的相当有趣的信︰「很遗憾看到Berkshire第二季
的获利下滑，想要提高 贵公司的获利吗? 有一个不错的法子，去查查NFM
的产品售价，你会发现他们把一、两成的获利空间白白奉送给客户，
算算一年一亿四千万的营业额，那可是二千八百万的利润，这个数字
实在是相当可观，再看看别家家具、地毯或是电器用品的价格，
你就会发现把价格调回来是再合理不过了
谢谢
一位竞争同业留」
You'll enjoy an anonymous letter I received last August:
"Sorry to see Berkshire profits fall in the second quarter. One
way you may gain back part of your lost. (sic) Check the pricing
at The Furniture Mart. You will find that they are leaving 10%
to 20% on the table. This additional profit on $140 million of
sells (sic) is $28 million. Not small change in anyone's pocket!
Check out other furniture, carpet, appliance and T.V. dealers.
Your raising prices to a reasonable profit will help. Thank you.
/signed/ A Competitor."
NFM will continue to grow and prosper by following Mrs. B's
maxim: "Sell cheap and tell the truth."
展望未来NFM在B太太「价格公道实在」的座右铭领导下，必将继续成长茁壮。
o在全美相同规模(或甚至更大)的报纸中，水牛城报纸有两个特点
第一、它在平时与假日的普及率最高(即订户数在该地区家户数的比率)，
第二是新闻比率最高(新闻版面占总版面的比率)
o Among dominant papers of its size or larger, the Buffalo
News continues to be the national leader in two important ways:
(1) its weekday and Sunday penetration rate (the percentage of
households in the paper's primary market area that purchase it);
and (2) its "news-hole" percentage (the portion of the paper
devoted to news).
事实上一份报纸能够同时拥有这两项特色绝对不是巧合，因为新闻内容越丰富，
也就越能吸引更广泛的读者，从而提高普及率，当然除了量之外，新闻品质
也很重要，这不但代表要有好的报导与编辑，也代表要有实时性与关联性，
为了让报纸成为读者们不可或缺的东西，它必须能够马上告诉读者许多他们
想要知道的事情，而不是等读者们都已知道后，事后报纸才刊登出来。
It may not be coincidence that one newspaper leads in both
categories: an exceptionally "newsrich" product makes for broad
audience appeal, which in turn leads to high penetration. Of
course, quantity must be matched by quality. This not only
means good reporting and good writing; it means freshness and
relevance. To be indispensable, a paper must promptly tell its
readers many things they want to know but won't otherwise learn
until much later, if ever.
以水牛城日报来说我们平均每24小时出七个版本，每次内容都会更新，
举一个简单的例子就足以让人感到惊奇，光是每天的讣文就会更新七次，
也就是说每则新增的讣文会在报纸上连续刊登七个版。
At the News, we put out seven fresh editions every 24 hours,
each one extensively changed in content. Here's a small example
that may surprise you: We redo the obituary page in every edition
of the News, or seven times a day. Any obituary added runs
through the next six editions until the publishing cycle has been
