You gave a six-year-old boy his Laker dream And I'll always love you for it. But I can't love you obsessively for much longer. This season is all I have left to give. My heart can take the pounding My mind can handle the grind But my body knows it's time to say goodbye.

By the time I admitted that I needed a hip operation, I had denied it for so long that it was a breakthrough to suddenly say, “I need this.” I knew I would probably never dance again, but I had no choice. By that time, I just wanted to be normal. I wanted to walk down the street without limping. I couldn’t tie my shoes. I couldn’t put slacks on. I was the farthest thing from a person who ever could dance and do all those extremely incredible extensions and contortions that we do.

As many of you know, the past three years have presented me with challenges in the form of injuries and surgeries. I've worked hard to return to full competitive form. But I also know my body's capacities and limits, and its message to me lately has been clear. I am 41 years old. I have played more than 1,500 matches over 24 years. Tennis has treated me more generously than I ever would have dreamt, and now I must recognize when it is time to end my competitive career.

No, I think they were two totally different careers, because when I was acting, I was always impersonating different people, so it was never me—it was never myself. When I started to sing, I suddenly felt naked. I mean, I knew that was going to happen, because that’s the reason why I couldn’t do it before—when I was a teenager, I just couldn’t play in front of anyone at all—it was impossible, my hands started to shake, my voice was gone, and I was so self-conscious of what people would think about what I was doing. Because I didn’t know how to play songs that anybody knew—all I knew how to play were my own songs, and so I had this feeling of having my own chords and my own things that weren’t—I was afraid of being judged as doing nonsense music. But then maybe what the acting did to me was that I got more courage to do what I really wanted to do, even though I had all these fears that were still inside me.

The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it.

The asset I most value, aside from health, is interesting, diverse, and long-standing friends.

We have two pieces of regrettable news this year. First, Gladys Kaiser, my friend and assistant for twenty-five years, will give up the latter post after the 1993 annual meeting, though she will certainly remain my friend forever. Gladys and I have been a team, and though I knew her retirement was coming, it is still a jolt.

This pledge will leave my lifestyle untouched and that of my children as well. They have already received significant sums for their personal use and will receive more in the future. They live comfortable and productive lives.

Most investors, of course, have not made the study of business prospects a priority in their lives. If wise, they will conclude that they do not know enough about specific businesses to predict their future earning power. I have good news for these non-professionals: The typical investor doesn't need this skill. ... The goal of the non-professional should not be to pick winners – neither he nor his "helpers" can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.

The extraordinary delegation of authority now existing at Berkshire is the ideal antidote to bureaucracy. In an operating sense, Berkshire is not a giant company but rather a collection of large companies. At headquarters, we have never had a committee nor have we ever required our subsidiaries to submit budgets (though many use them as an important internal tool). We don't have a legal office nor departments that other companies take for granted: human relations, public relations, investor relations, strategy, acquisitions, you name it. We do, of course, have an active audit function; no sense being a damned fool.