According to Warren Buffett the shares of Berkshire Hathaway at the end of each year are held by approximately 98% same people who held them at the beginning of the year. There are good reasons Buffett prefers it this way:

1. The annual reports can be continuously built upon there is not much need for any narratives to Berkshire’s quarterly reports. As Buffett puts it: “…it is difficult to say anything new or meaningful each quarter about events of long term significance.� Reporting only once a year also causes the shareholders to pay close attention because “…when [the shareholders] receive a communication from [management] it comes from the fellow [shareholders] are paying to run the business� and not from a staff specialist or public relations consultant.

2. “You can’t be all things to all men simultaneously seeking different owners with different interests.� Buffett explains further: “In large part companies obtain the shareholder constituency that they seek and deserve. If they focus thinking and communications on short term results they will, in large part, attract shareholders who focus on the same factors.�

On the end Buffett concludes through an analogy with a restaurant owner: “We much prefer owners who like our service and menu and who return year after year.�

Source: http://berkshirehathaway.com/letters/1979.html

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