significant earnings of investees that standard accounting rules
do not permit us to report. On page 15, we list five major
investees from which we received dividends in 1989 of about $45
million, after taxes. However, our share of the retained earnings
of these investees totaled about $212 million last year, not
counting large capital gains realized by GEICO and Coca-Cola. If
this $212 million had been distributed to us, our own operating
earnings, after the payment of additional taxes, would have been
close to $500 million rather than the $300 million shown in the
table.
除了帐列盈余数字之外，实际上我们受惠于会计原则不能认列的盈余，后面我烈
示出五家主要被投资公司在1989年收到的税后现金股利收入合计是4,500万
美元，然而若依照投资比例我们可以分得的税后盈余却高达2.12亿美元，这还
不包含我们在GEICO与Coca-Cola身上所获得的资本利得，而若将这应得的
2.12亿盈余分给我们，则在扣除应付的所得税之后，公司帐列的盈余可能会大
幅增加为5亿美元，而不是现在的3亿美元。
The question you must decide is whether these undistributed
earnings are as valuable to us as those we report. We believe
they are - and even think they may be more valuable. The reason
for this a-bird-in-the-bush-may-be-worth-two-in-the-hand
conclusion is that earnings retained by these investees will
be deployed by talented, owner-oriented managers who
sometimes have better uses for these funds in their own
businesses than we would have in ours. I would not make such a
generous assessment of most managements, but it is appropriate in
these cases.
你应该判断的关键在于这些未分配的盈余与我们帐上已经列示的盈余同样的珍
贵，甚至我们相信他们以后可能还更有价值，这一鸟在林更是两鸟在手的道理，
就像是与其把盈余交到我们手中，还不如留给我们信任有才干的经理人继续运用
发挥，通常我对一般的经理人不会有这么高的评价，但以这几家公司来说，的确
是实至名归。
In our view, Berkshire's fundamental earning power is best
measured by a "look-through" approach, in which we append our
share of the operating earnings retained by our investees to our
own reported operating earnings, excluding capital gains in both
instances. For our intrinsic business value to grow at an average
of 15% per year, our "look-through" earnings must grow at about
the same pace. We'll need plenty of help from our present
investees, and also need to add a new one from time to time, in
order to reach this 15% goal.
就我们的观点，Berkshire的基本获利能力可以用直接法来衡量，也就是我们将
被投资公司真正应分给我们的盈余加到帐列的营业利益之上，同时扣除我们在这
些投资已实现的资本利得，所以如果说我们想要让企业的实质价值每年平均以
15%的速度成长，我们的直接盈余也必须要以同等的速度增加，因此我们相当需
要现有的被投资公司给予我们更多的支持，同时也需要时时增加新进的成员才有
办法达到这15%的目标。
Non-Insurance Operations
非保险营运
In the past, we have labeled our major manufacturing,
publishing and retail operations "The Sainted Seven." With our
acquisition of Borsheim's early in 1989, the challenge was to
find a new title both alliterative and appropriate. We failed:
Let's call the group "The Sainted Seven Plus One."
在过去我们将主要的制造、出版与零售业昵称为七个圣徒，在1989年波仙珠宝
加入后，马上面临的一个问题就是要找到一个贴切又好听的名词，但到目前为止
我们还没有想到，现在姑且将他们称作为「七加一个圣徒」吧。
This divine assemblage - Borsheim's, The Buffalo News,
Fechheimer Bros., Kirby, Nebraska Furniture Mart, Scott Fetzer
Manufacturing Group, See's Candies, World Book - is a collection
of businesses with economic characteristics that range from good
to superb. Its managers range from superb to superb.
这神圣的组合-波仙珠宝、水牛城日报、费区海默、寇比吸尘器、内布拉斯加家
具、史考特费兹、喜斯糖果与世界百科全书等公司，可以说是模范企业的绝佳组
合，他们的管理人也可以说是好的不能再好了。
Most of these managers have no need to work for a living;
they show up at the ballpark because they like to hit home runs.
And that's exactly what they do. Their combined financial
statements (including those of some smaller operations), shown on
page 49, illustrate just how outstanding their performance is. On
an historical accounting basis, after-tax earnings of these
operations were 57% on average equity capital. Moreover, this
return was achieved with no net leverage: Cash equivalents have
matched funded debt. When I call off the names of our managers -
the Blumkin, Friedman and Heldman families, Chuck Huggins, Stan
Lipsey, and Ralph Schey - I feel the same glow that Miller
Huggins must have experienced when he announced the lineup of his
1927 New York Yankees.
大部分的管理人根本就不需要为了讨生活而工作，他们参加球队的原因只是为了
要击出全垒打，事实上这正是他们常常有的表现，他们合并的财务报表(加上一
些较小的事业)，显示他们的表现是如此的优异，以历史投资成本做基准，他们
现在每年的税后盈余高达平均股东权益的57%，更甚者，他们并不靠举债，帐
上所拥有的现金就足以清偿所有的借款，当我念到这些管理人的名字- the
Blumkin, Friedman, Heldman families, Chuck Huggins, Stan Lipsey 与
Ralph Schey，这感觉就好象是名教练Miller Huggins 在宣布1927纽约洋基
队的先发阵容一样。
Let's take a look, business by business:
现在让我们逐一来检视。
o In its first year with Berkshire, Borsheim's met all
expectations. Sales rose significantly and are now considerably
better than twice what they were four years ago when the company
moved to its present location. In the six years prior to the
move, sales had also doubled. Ike Friedman, Borsheim's managing
genius - and I mean that - has only one speed: fast-forward.
在波仙珠宝加入Berkshire的第一年，它达到我们所有的预期目标，营业额大幅
成长，较四年前刚搬到现址的时候要好上一倍，事实上在搬来之的六年前，它的
业绩早已成长了一倍，Ike Friedman 波仙珠宝的管理天才，只有一种速度，那
就是全速前进！
If you haven't been there, you've never seen a jewelry store
like Borsheim's. Because of the huge volume it does at one
location, the store can maintain an enormous selection across all
price ranges. For the same reason, it can hold its expense ratio
to about one-third that prevailing at jewelry stores offering
comparable merchandise. The store's tight control of expenses,
accompanied by its unusual buying power, enable it to offer
prices far lower than those of other jewelers. These prices, in
turn, generate even more volume, and so the circle goes 'round
and 'round. The end result is store traffic as high as 4,000
people on seasonally-busy days.
如果你还没有到过那里，你一定没有看过有珠宝店像波仙那样，由于销量非常
大，所以在那里你可以看到各式各样、各种价格的种类，同样的理由，它的营业
费用开销大概只有一般同类型珠宝店的三分之一，对于费用的严格控管，加上优
异的采购能力，使得它所贩售的商品要比其它珠宝店要来的便宜许多，而便宜的
价格又吸引更多的顾客上门，良性循环的结果，使得该店在忙季的单日人潮流量
高达四千人。
Ike Friedman is not only a superb businessman and a great
showman but also a man of integrity. We bought the business
without an audit, and all of our surprises have been on the plus
side. "If you don't know jewelry, know your jeweler" makes sense
whether you are buying the whole business or a tiny diamond.
Ike Friedman 不但是个优秀的商人、表演者，更是品格高尚的人，买下这家店
时，我们没有查帐，事后所有的惊奇完全都是正面的，有句话说不懂珠宝没有关
系，但你一定要有认识的珠宝商，这句话真的好有道理，不管是你要买一颗小小
的钻石或是要买下一整家店都一样。
A story will illustrate why I enjoy Ike so much: Every two
years I'm part of an informal group that gathers to have fun and
explore a few subjects. Last September, meeting at Bishop's Lodge
in Santa Fe, we asked Ike, his wife Roz, and his son Alan to come
by and educate us on jewels and the jewelry business.
有一段故事可以说明为何我个人如此喜爱Ike，每两年我都会参加一个非正式的
聚会，大家一起同乐并探索新事物，去年九月，在圣塔菲与主教会面，我邀请Ike
跟他的太太与儿子为大家讲解珠宝。
Ike decided to dazzle the group, so he brought from Omaha
about $20 million of particularly fancy merchandise. I was
somewhat apprehensive - Bishop's Lodge is no Fort Knox - and I
mentioned my concern to Ike at our opening party the evening
before his presentation. Ike took me aside. "See that safe?" he
said. "This afternoon we changed the combination and now even the
hotel management doesn't know what it is." I breathed easier. Ike
went on: "See those two big fellows with guns on their hips?
They'll be guarding the safe all night." I now was ready to
rejoin the party. But Ike leaned closer: "And besides, Warren,"
he confided, "the jewels aren't in the safe."
Ike为了加深大家的印象，所以特地从奥玛哈带了总值超过2,000万美元的各式
珠宝，当时我个人有点担心，因为主教的住所并非像福克斯堡那般坚固，所以当
晚在活动开始之前，我特别向Ike表达个人的关切，Ike把我拉到一旁说，看到
那保险箱没 下午时我们早已掉过包，所以根本没有人可能分得清真或假，听
到这话，我放心多了，Ike接着又说，看到旁边那两个腰配枪枝的彪形大汉没 他
们会整晚守护着这只保险箱，正当我舒口气准备会到宴会中时，Ike小声说到更
重要的，真正的珠宝并不在保险箱里！
How can we miss with a fellow like that - particularly when
he comes equipped with a talented and energetic family, Alan,
Marvin Cohn, and Don Yale.
我们怎么能够错过这样一号人物呢 尤其是当他背后还有一个兼具才能与活力
的家族。
o At See's Candies we had an 8% increase in pounds sold, even
though 1988 was itself a record year. Included in the 1989
performance were excellent same-store poundage gains, our first
in many years.
喜斯糖果去年糖果的销售磅数再创新高，比前一年度又增加了8%，而且单店的
平均销售磅数经过好几年来，首次呈现正成长。
Advertising played an important role in this outstanding
performance. We increased total advertising expenditures from $4
million to $5 million and also got copy from our agency, Hal
Riney & Partners, Inc., that was 100% on the money in conveying
the qualities that make See's special.
广告在这家杰出的企业中扮演着很重要的角色，去年我们的广告预算从原先的
400万增加到500万美元，透过我们的广告代理商Hal Riney 将钱百分之百花
在传达喜斯糖果之所以能够如此特别的品质之上。
In our media businesses, such as the Buffalo News, we sell
advertising. In other businesses, such as See's, we are buyers.
When we buy, we practice exactly what we preach when we sell. At
See's, we more than tripled our expenditures on newspaper
advertising last year, to the highest percentage of sales that I
can remember. The payoff was terrific, and we thank both Hal
Riney and the power of well-directed newspaper advertising for
this result.
在我们的媒体事业，像是水牛城报纸，我们贩售广告，在其它的事业，像是喜斯
糖果，我们是广告客户，反而变成买主，然而当我们买广告时，我们做事的方式
跟我们当初在卖广告的诉求是一致的，去年喜斯糖果在报纸广告上的花费增加了
有三倍之多，是我印象之中占营业额的最高比例，不过所得到的回报却更是惊人，对于能有这样
的成绩，我们相当感谢Hal Riney与报纸的宣传效果。
See's splendid performances have become routine. But there
is nothing routine about the management of Chuck Huggins: His
daily involvement with all aspects of production and sales
imparts a quality-and-service message to the thousands of
employees we need to produce and distribute over 27 million
pounds of candy annually. In a company with 225 shops and a
massive mail order and phone business, it is no small trick to
run things so that virtually every customer leaves happy. Chuck
makes it look easy.
喜斯杰出的表现好象变得很自然，但Chuck Huggins的管理却绝对不是侥幸，
每天他都全心全意专注于生产与销售各个环节，将品质与服务的观念传达给公司
上上下下几千位员工，每年销售超过2,700万磅的糖果，在一家拥有225家店
面，再加上一个邮购与电话中心，要让每个客户都能够满心欢喜的离去，实在不
是一件简单的事，不过这差事到了Chuck的手上，总是让人感觉轻松自在。
o The Nebraska Furniture Mart had record sales and excellent
earnings in 1989, but there was one sad note. Mrs. B - Rose
Blumkin, who started the company 52 years ago with $500 - quit in
May, after disagreeing with other members of the Blumkin
family/management about the remodeling and operation of the
carpet department.
内布拉斯加家具店的业绩与盈余在1989年又创新高，但是这伴随着一项坏消
息，52年前以500美元创立这家店的B太太，由于与家族其它成员在内部改装
与地毯部门的营运上意见不合，在五月决定离职。
Mrs. B probably has made more smart business decisions than
any living American, but in this particular case I believe the
other members of the family were entirely correct: Over the past
three years, while the store's other departments increased sales
by 24%, carpet sales declined by 17% (but not because of any lack
of sales ability by Mrs. B, who has always personally sold far
more merchandise than any other salesperson in the store).
B太太可能是现存美国人中最聪明的生意人，但在这件事上我却必须站在家族其
他成员的这一边，过去三年来，当店内其它部门营收平均成长24%之时，地毯
销售却减少17%，(这并不是代表B太太的销售技巧退步，因为她个人卖的商品
绝对比店内其它营业员要多的多)。
You will be pleased to know that Mrs. B continues to make
Horatio Alger's heroes look like victims of tired blood. At age
96 she has started a new business selling - what else? - carpet
and furniture. And as always, she works seven days a week.
大家应该很高兴B太太让Horatio Alger笔下的英雄看起来像是浴血奋战后的失
败者，以96岁的高龄，她却执意再另创新事业，而且还是一样，卖家具跟地毯，
同样地，每个礼拜工作七天。
At the Mart Louie, Ron, and Irv Blumkin continue to propel
what is by far the largest and most successful home furnishings
store in the country. They are outstanding merchants, outstanding
managers, and a joy to be associated with. One reading on their
acumen: In the fourth quarter of 1989, the carpet department
registered a 75.3% consumer share in the Omaha market, up from
67.7% a year earlier and over six times that of its nearest
competitor.
在原来的家具店，B太太的子孙们还是继续支撑这家全美最大也最成功的家具事
业，他们实在是相当优秀的生意人，管理者，跟他们一起相处实在是很愉快的一
件事。有一件事可以显示他们的聪明才智，在1989年第四季，地毯部门在奥玛
哈地区的市场占有率从前一年度的67.7%增加到75.3%，相当于第二名竞争者
的六倍。
NFM and Borsheim's follow precisely the same formula for
success: (1) unparalleled depth and breadth of merchandise at one
location; (2) the lowest operating costs in the business; (3) the
shrewdest of buying, made possible in part by the huge volumes
purchased; (4) gross margins, and therefore prices, far below
competitors'; and (5) friendly personalized service with family
members on hand at all times.
NFM与波仙遵循的是相同的成功模式(1)商品种类齐全、应有尽有(2)营运成本极
低(3)大量采购进货成本低(4)毛利高但售价因销量压低(5)亲切的服务与家族式
的管理。
Another plug for newspapers: NFM increased its linage in the
local paper by over 20% in 1989 - off a record 1988 - and remains
the paper's largest ROP advertiser by far. (ROP advertising is
the kind printed in the paper, as opposed to that in preprinted
inserts.) To my knowledge, Omaha is the only city in which a home
furnishings store is the advertising leader. Many retailers cut
space purchases in 1989; our experience at See's and NFM would
indicate they made a major mistake.
另外提供一则新闻插播，NFM在1989年增加20%的报纸广告量，依旧是当地
报纸的最大广告客户，(ROP是指印在报纸上的广告，与事先印好的夹报有别)，
就我所知，奥玛哈是唯一一个以家具业者为最大报纸广告客户的地区，许多客户
在1989年都大砍广告量，但是就我们在喜斯糖果与NFM的经验来说，这实在
是个天大的错误。
o The Buffalo News continued to star in 1989 in three
important ways: First, among major metropolitan papers, both
daily and Sunday, the News is number one in household penetration
- the percentage of local households that purchase it each day.
Second, in "news hole" - the portion of the paper devoted to news
- the paper stood at 50.1% in 1989 vs. 49.5% in 1988, a level
again making it more news-rich than any comparable American
paper. Third, in a year that saw profits slip at many major
papers, the News set its seventh consecutive profit record.
水牛城日报在1989年有三点特别值得一提，首先在所有主要的都会报纸中(不
管是平时或是假日)，水牛城的家庭渗透率是最高的(即当地家庭每天订购报纸的
户数)，第二是新闻比率(报纸所有版面中，新闻所占的比率)，相较于1988年的
49.5%，1989年则是50.1%，这比率代表水牛城报纸的新闻内容要比其它同类
