
In a climate where quarterly earnings and one-year performance metrics dominate headlines, Berkshire Hathaway (BRK.A)(BRK.B) CEO Warren Buffett offered a contrarian viewpoint on how to truly measure a company’s success.
“We never take the one-year figure very seriously. After all, why should the time required for a planet to circle the sun synchronize precisely with the time required for business actions to pay off? Instead, we recommend not less than a five-year test as a rough yardstick of economic performance.”