We’re what you might call unabashed fans and students of Warren Buffett, Charlie Munger, and what they’ve built at Berkshire Hathaway over the last 60 years. It’s easily one of the most remarkable American business success stories of all time.

Berkshire’s business model has been a major influence on how we’ve built Purpose Group. Case in point: I’ve read all of their annual reports, mostly from this 965 page book, Berkshire Hathaway Letters to Shareholders.

That’s a lot of Warren wisdom to soak up. I’d also recommend The Snowball and Poor Charlie’s Almanack.

When their 2024 annual report came out earlier this year, I, of course, devoured it. Rumor has it that Warren might not be writing them for much longer, which will be a sad day for me and many others.

Three takeaways from Berkshire’s 2024 Annual Letter

1. Lead with Radical Honesty: Embrace—and Own—Mistakes

Buffett opens the letter with a humility you rarely see in business at this scale (though is very common in his letters…an attribute I admire greatly):

“Sometimes I’ve made mistakes in assessing the future economics of a business I’ve purchased for Berkshire—each a case of capital allocation gone wrong…The cardinal sin is delaying the correction of mistakes or what Charlie Munger called ‘thumb-sucking.’ Problems, he would tell me, cannot be wished away. They require action, however uncomfortable that may be.”

This resonates on a deep level with our corporate ethos. Business isn’t about perfection; it’s about evolving with eyes wide open, calling out errors fast, and acting decisively, because real purpose isn’t afraid of the truth. When you lead with radical honesty, you invite transformation.

2. Play the Long Game (No Matter What the World Is Doing)

Buffett reminds shareholders that compounding only works when you commit—through thick and thin, and this long-term approach is core to Purpose Group’s vision:

“For sixty years, Berkshire shareholders endorsed continuous reinvestment and that enabled the company to build its taxable income. Cash income-tax payments to the U.S. Treasury, minuscule in the first decade, now aggregate more than $101 billion…and counting.”

At Purpose Group, we know sustainable business is built on vision, patience, and reinvesting in people and purpose—not quarterly quick wins. “Long-term compounding” isn’t just a finance buzzword—it’s a philosophy for life and leadership.

3. People (Not Pedigrees or Process) Power Performance

Buffett singles out managers whose resumes wouldn’t earn a second glance at an MBA fair:

“One further point in our CEO selections: I never look at where a candidate has gone to school. Never!…I’ve observed, however, that a very large portion of business talent is innate with nature swamping nurture.”

This is the Purpose Group people-first playbook, word for word. We invest in trust, not titles. We develop leaders from any background—if they have character, credibility, and a sense of mission. The best results, in our experience, often come from “unconventional” risk-takers who align with a larger “why.”

In fact, we wrote something similar in our post, We favor people-based businesses:

Our methodology is at its strongest when we can create a unified, passionate team of people who can support each other, working together toward a common goal.

Bonus: Purpose Is Not a Slogan—It’s Your North Star

Buffett’s most powerful lesson is, as always, culture and clarity. He closes with a note to the government—yet it reads as a message to all stakeholders:

“So thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”

If you swap “Uncle Sam” for your employees, customers, or community, you get the heart of Purpose Group’s mission: Use business as a force for good, take care of those with the “short straws”, and insist on stewardship—because that is what enduring value is made of.

The Bottom Line:
Buffett’s 2024 Letter isn’t just an annual update; it’s a reminder (and validation) that leading with transparency, investing with patience, betting on people, and anchoring everything in authentic purpose isn’t soft—it’s the source of resilient, superior results.

Or, as we say at Purpose Group: It’s not about being the best at selling fish—it’s about building a company where every person, every day, makes a difference.