If you don't understand a company, if you can't explain it to a ten-year-old in 2 minutes or less, don't own it. - Peter Lynch

Corporate profits are up fifty-five-fold since World War II, and the stock market is up sixtyfold. Four wars, nine recessions, eight presidents, and one impeachment didn’t change that.

Since the early 1980s, the Berkshire annual reports have informed shareholders of the performance of the holdings of the company and new investments, updated the status of the insurance and the reinsurance industry, and (since 1982) have listed acquisition criteria about business Berkshire would like to purchase. The report is generously laced with examples, analogies, stories, and metaphors containing the do's and dont's of proper investing in stocks.

By putting your stocks into categories you’ll have a better idea of what to expect from them.