Issuer Amortized Value of Bonds Market
------ ------------------- ------------
ACF Industries ................ $ 93,918(2) $118,683
American Express .............. 300,000 263,265(1)(2)
Champion International ........ 300,000(2) 300,000(1)
First Empire State 40,000 50,000(1)(2)
RJR Nabisco 222,148(2) 285,683
Salomon 700,000(2) 714,000(1)
USAir 358,000(2) 232,700(1)
Washington Public Power Systems 158,553(2) 203,071
(1)Fair value as determined by Charlie and me
(1)公平价值是由查理跟我来判断
(2) Carrying value in our financial statements
(2)是指财务报表上的帐面价值
Our $40 million of First Empire State preferred carries a 9%
coupon, is non-callable until 1996 and is convertible at $78.91 per
share. Normally I would think a purchase of this size too small for
Berkshire, but I have enormous respect for Bob Wilmers, CEO of
First Empire, and like being his partner on any scale.
我们在第一帝国9%收益率的特别股投资了4,000万美元，在1996年前公司无
法赎回，每股转换价格订为78.91美元，通常我会认为这样的规模对于
Berkshire来说实在是太小了，但由于我们对于该公司总裁Bob Wilmers实在
是过于崇敬，所以不管金额大小，还是希望有机会能与他一起合伙共事。
Our American Express preferred is not a normal fixed-income
security. Rather it is a "Perc," which carries a fixed dividend of
8.85% on our $300 million cost. Absent one exception mentioned
later, our preferred must be converted three years after issuance,
into a maximum of 12,244,898 shares. If necessary, a downward
adjustment in the conversion ratio will be made in order to limit
to $414 million the total value of the common we receive. Though
there is thus a ceiling on the value of the common stock that we
will receive upon conversion, there is no floor. The terms of the
preferred, however, include a provision allowing us to extend the
conversion date by one year if the common stock is below $24.50 on
the third anniversary of our purchase.
至于美国运通的投资则不是一般的固定收益证券，它算是一种Perc-每年可以为
我们3亿美元的投资贡献8.85%的股利收入，除了接下来会提到的一个特点，
那就是我们的特别股在发行后的三年可以转换成最多12,244,898股的普通
股，若有必要我们可转换的股份可能会向下调整，以确定我们所收到的股份总值
不能够超过4.14亿美元，虽然对于可能取得的普通股价值有其上限，但相对地
却没有下限，不过这样的特别条款还包含若是三年期限到时公司股价低于24.5
美元时，可以有权请求延长转换期限一年。
Overall, our fixed-income investments have treated us well,
both over the long term and recently. We have realized large
capital gains from these holdings, including about $152 million in
1991. Additionally, our after-tax yields have considerably exceeded
those earned by most fixed-income portfolios.
总的来说，不管最近或是是长期而言，我们在固定收益证券上的投资表现还算不
错，靠着这样的投资我们赚取大量的资本利得，在1991年这个数字大约在1.52
亿美元左右，此外我们的税后投资报酬率也远高于一般的固定收益证券。
Nevertheless, we have had some surprises, none greater than
the need for me to involve myself personally and intensely in the
Salomon situation. As I write this letter, I am also writing a
letter for inclusion in Salomon's annual report and I refer you to
that report for an update on the company. (Write to: Corporate
Secretary, Salomon Inc, Seven World Trade Center, New York, NY
10048) Despite the company's travails, Charlie and I believe our
Salomon preferred stock increased slightly in value during 1991.
Lower interest rates and a higher price for Salomon's common
produced this result.
不过在这期间也发生一些小意外，当然没有像所罗门事件那样让我本人都跳进
去，当我在撰写这封信时，我也同时写了一封信要放在所罗门的年度报告之内，
我顺便提出来算是对于该公司近况的一份报告，(写给纽约第七世贸大楼所罗门
公司)，虽然公司遭逢不幸，但查理跟我都相信，目前低利率的环境加上所罗门
普通股的股价回升，使我们在所罗门的特别股价值已略见增加。
Last year I told you that our USAir investment "should work
out all right unless the industry is decimated during the next few
years." Unfortunately 1991 was a decimating period for the
industry, as Midway, Pan Am and America West all entered
bankruptcy. (Stretch the period to 14 months and you can add
Continental and TWA.)
去年我曾告诉各位除非航空业的经营环境在未来几年内加速恶化，否则我们在美
国航空的投资应该可以有不错的结果，不过很不幸的随着中美、泛美与美西航空
相继倒闭，1991年正是航空业加速恶化的一年，(若是把时间延长为14个月，
则还要包括大陆航空与TWA两家航空公司)。
The low valuation that we have given USAir in our table
reflects the risk that the industry will remain unprofitable for
virtually all participants in it, a risk that is far from
negligible. The risk is heightened by the fact that the courts have
been encouraging bankrupt carriers to continue operating. These
carriers can temporarily charge fares that are below the industry's
costs because the bankrupts don't incur the capital costs faced by
their solvent brethren and because they can fund their losses - and
thereby stave off shutdown - by selling off assets. This burn-thefurniture-
to-provide-firewood approach to fare-setting by bankrupt
carriers contributes to the toppling of previously-marginal
carriers, creating a domino effect that is perfectly designed to
bring the industry to its knees.
表上我们对于在美国航空投资的评价之所以如此的低，反应出整个产业目前所面
临到的获利前景不佳的风险，这个风险又因为法院鼓励已经宣布破产的航空公司
继续营运而更加提高，这些同业得以用比一般成本还低的价格，因为它们完全可
以不必在乎其它还咽咽一息的同业所需负担的资金成本，因为为了避免营运停
摆，它们可以靠着变卖资产来弥补所发生的损失，这种拆家具拿来当材火烧的做
法，有可能进一步危及其它营运还算正常的同业，然后引发骨牌效应，使得整个
产业一败涂地。
Seth Schofield, who became CEO of USAir in 1991, is making
major adjustments in the airline's operations in order to improve
its chances of being one of the few industry survivors. There is no
tougher job in corporate America than running an airline: Despite
the huge amounts of equity capital that have been injected into it,
the industry, in aggregate, has posted a net loss since its birth
after Kitty Hawk. Airline managers need brains, guts, and
experience - and Seth possesses all three of these attributes.
Seth Schofield在1991年成为美国航空公司的总裁，正对整个公司的营运做出
相当重大的调整，期能增加其成为航空业仅存的几位幸存者之一，在美国没有比
经营一家航空公司还要困难的行业，虽然大笔的资金已经投入到这个产业，但是
从小鹰号诞生开始，航空业历史累积加总所产生的损失却是相当惊人，航空公司
的经理人需要的不只是智能、勇气还要再加上经验，而毫无疑问的，Seth 同时
具有以上三项的特质。
Miscellaneous
其它事项
About 97.7% of all eligible shares participated in Berkshire's
1991 shareholder-designated contributions program. Contributions
made through the program were $6.8 million, and 2,630 charities
were recipients.
大约有97.7%的有效股权参与1991年的股东指定捐赠计划，总计约680万美
元捐出的款项分配给2,630家慈善机构。
We suggest that new shareholders read the description of our
shareholder-designated contributions program that appears on pages
48-49. To participate in future programs, you must make sure your
shares are registered in the name of the actual owner, not in the
nominee name of a broker, bank or depository. Shares not so
registered on August 31, 1992 will be ineligible for the 1992
program.
我们敦促新加入的股东，仔细阅读年报上有关股东捐赠计画的详细内容，如果在
未来年度内，你想要参加这类的计画，我们强烈建议你将股份登记在自己而不是
受托人的名下，必须在1992年8月31日之前完成登记，才有权利参与1992
年的捐赠计画。
In addition to the shareholder-designated contributions that
Berkshire distributes, managers of our operating businesses make
contributions, including merchandise, averaging about $1.5 million
annually. These contributions support local charities, such as The
United Way, and produce roughly commensurate benefits for our
businesses.
Berkshire除了透过股东指定捐赠计画对外捐赠之外，我们旗下事业的经理人每
年也会透过公司对外捐赠，包含商品在内每年平均金额约在150万美元左右。
这些捐赠主要是赞助当地像是联合劝募等慈善团体，所得的效益应该与我们所捐
出的相当。
However, neither our operating managers nor officers of the
parent company use Berkshire funds to make contributions to broad
national programs or charitable activities of special personal
interest to them, except to the extent they do so as shareholders.
If your employees, including your CEO, wish to give to their alma
maters or other institutions to which they feel a personal
attachment, we believe they should use their own money, not yours.
然而不管是旗下事业或是母公司的经理人在利用Berkshire的资金对外捐赠给
全国性组织或特别利益团体时，都是以站在股东利益立场所应该做的，相对地若
是你的员工也包含CEO在内，想要与其校友会或其它人建立个人关系的，我们
认为他们最好是用自己的钱，而不是从你的口袋里掏钱。
* * * * * * * * * * * *
The faithful will notice that, for the first time in some
years, Charlie's annual letter to Wesco shareholders is not
reprinted in this report. Since his letter is relatively barebones
this year, Charlie said he saw no point in including it in these
pages; my own recommendation, however, is that you get a copy of
the Wesco report. Simply write: Corporate Secretary, Wesco
Financial Corporation, 315 East Colorado Boulevard, Pasadena, CA
91101.
死忠的巴菲特迷可能会发现，许多年来头一次大家在年报中找不到查理孟格写给
Wesco股东的信，主要是因为他认为今年的报告相当阳春，所以没有必要附在
我们的年报中，不过我个人还是建议，想办法写信给Wesco公司的秘书，就可
以拿到Wesco的年报。
* * * * * * * * * * * *
Malcolm G. Chace, Jr., now 88, has decided not to stand for
election as a director this year. But the association of the Chace
family with Berkshire will not end: Malcolm III (Kim), Malcolm's
son, will be nominated to replace him.
现年88岁的Malcolm Chace二世，决定从今年起不再担任本公司的董事，但
Berkshire与Chace家族的关系却不会断，他儿子也就是Malcolm三世会接替
其位置继续担任本公司董事。
In 1931, Malcolm went to work for Berkshire Fine Spinning
Associates, which merged with Hathaway Manufacturing Co. in 1955 to
form our present company. Two years later, Malcolm became Berkshire
Hathaway's Chairman, a position he held as well in early 1965 when
he made it possible for Buffett Partnership, Ltd. to buy a key
block of Berkshire stock owned by some of his relatives. This
purchase gave our partnership effective control of the company.
Malcolm's immediate family meanwhile kept its Berkshire stock and
for the last 27 years has had the second-largest holding in the
company, trailing only the Buffett family. Malcolm has been a joy
to work with and we are delighted that the long-running
relationship between the Chace family and Berkshire is continuing
to a new generation.
1931年Malcolm进入Berkshire针织工厂工作，后来该公司在1955年与
Hathaway工业合并，成为现在的Berkshire Hathaway，之后两年他接任本公
司董事长的职位，直到1965年由他一手促成巴菲特合伙事业买下他与亲人大部
分的股权，而使得我们成功入主该公司，之后Malcolm家族在往后的27年内
继续持有本公司的股份成为仅次于巴菲特家族，本公司第二大股东，Malcolm
一直是个很容易相处的伙伴，我们很高兴Chase家族与巴菲特家族的感情能够
延续到下一代。
* * * * * * * * * * * *
The annual meeting this year will be held at the Orpheum
Theater in downtown Omaha at 9:30 a.m. on Monday, April 27, 1992.
Attendance last year grew to a record 1,550, but that still leaves
plenty of room at the Orpheum.
今年的股东会预计在1992年4月27日，星期一早上9点30分在位于奥玛哈
市中心的Orpheum中心召开，去年股东会参加人数又创新高突破1,550人，
不过会场还是剩下很多座位。
We recommend that you get your hotel reservations early at one
of these hotels: (1) The Radisson-Redick Tower, a small (88 rooms)
but nice hotel across the street from the Orpheum; (2) the much
larger Red Lion Hotel, located about a five-minute walk from the
Orpheum; or (3) the Marriott, located in West Omaha about 100 yards
from Borsheim's and a twenty minute drive from downtown. We will
have buses at the Marriott that will leave at 8:30 and 8:45 for the
meeting and return after it ends.
我们建议大家最好先向以下旅馆预订房间(1)Radisson-Redick旅馆-就位在
Orpheum中心对街拥有88个房间的一家小旅馆(2)较大一点的Red Lion旅馆
-离Orpheum中心约五分钟路程，或是(3)Marriott位在奥玛哈西区，离波仙珠
宝店约100公尺，开车到市中心约需20分钟，届时将会有巴士接送大家往返
股东会会场。
Charlie and I always enjoy the meeting, and we hope you can
make it. The quality of our shareholders is reflected in the
quality of the questions we get: We have never attended an annual
meeting anywhere that features such a consistently high level of
intelligent, owner-related questions.
查理跟我一直都很喜欢开股东会，我也希望大家能够来参加，我们股东的素质可
由大家所提出的问题看得出来，我们参加过很多股东会，但从来没有别的公司的
股东像Berkshire的股东一样由高智能水准与经营者荣枯与共的股东组合。
An attachment to our proxy material explains how you can
obtain the card you will need for admission to the meeting. With
the admission card, we will enclose information about parking
facilities located near the Orpheum. If you are driving, come a
little early. Nearby lots fill up quickly and you may have to
walk a few blocks.
后面附有股东会开会投票的相关资料，跟各位解释如何拿到入场所许的识别证，
因为开会当天会场不好停车，我们特地为大家预留了一些位置，附件也有相关说
明供大家参考。
As usual, we will have buses to take you to Nebraska Furniture
Mart and Borsheim's after the meeting and to take you from there to
downtown hotels or the airport later. I hope that you will allow
plenty of time to fully explore the attractions of both stores.
Those of you arriving early can visit the Furniture Mart any day of
the week; it is open from 10 a.m. to 5:30 p.m. on Saturdays and
from noon to 5:30 p.m. on Sundays. While there, stop at the See's
Candy Cart and find out for yourself why Americans ate 26 million
pounds of See's products last year.
一如往年，会后我们备有巴士带大家到内布拉斯加家具店与波仙珠宝店或是到饭
店与机场，我希望大家能有多一点的时间好好探索这两家店的奥妙，当然早几天
到的股东也可利用假日逛逛家具店，星期六从早上10点到下午5点30分，星
期日则从中午开到下午5点30分，到那里时记得到喜斯糖果摊逛逛，了解一下
为何美国人一年能够吞下2,600万磅的喜斯糖果。
Borsheim's normally is closed on Sunday, but we will be open
for shareholders and their guests from noon to 6 p.m. on Sunday,
April 26. Borsheim's will also have a special party the previous
evening at which shareholders are welcome. (You must, however,
write Mrs. Gladys Kaiser at our office for an invitation.) On
display that evening will be a 150-year retrospective of the most
exceptional timepieces made by Patek Philippe, including watches
once owned by Queen Victoria, Pope Pius IX, Rudyard Kipling, Madame
Curie and Albert Einstein. The centerpiece of the exhibition will
be a $5 million watch whose design and manufacture required nine
years of labor by Patek Philippe craftsmen. Along with the rest of
the collection, this watch will be on display at the store on
Sunday - unless Charlie has by then impulsively bought it.
波仙星期天通常不开门营业，但在股东会期间特别为股东与来宾开放，4月26
日星期天从中午开到下午6点，同时前一天晚上还将为所有股东举行一个特别
的Party，(但必须事先向我们办公室的Gladys Kaiser女士登记取得邀请函)，
当晚将会展示Patek Philippe过去150年来的作品回顾，包含英国维多利亚女
皇、教宗Pius四世与爱因斯坦等历史名人所拥有的手表，另外会场中的重头戏
是一只由Patek Philippe工匠设计打造，耗时一年价值500万美元的手表，如
无意外也会随着其它物品一起展出，除非查理忍不住诱惑先买下了它。
Nicholas Kenner nailed me - again - at last year's meeting,
pointing out that I had said in the 1990 annual report that he was
11 in May 1990, when actually he was 9. So, asked Nicholas rather
caustically: "If you can't get that straight, how do I know the
numbers in the back [the financials] are correct?" I'm still
searching for a snappy response. Nicholas will be at this year's
meeting - he spurned my offer of a trip to Disney World on that
day - so join us to watch a continuation of this lop-sided battle
