原文信息：
- 标题：1986 Letter to Wesco Shareholders
- 作者：Charles Munger
- 发表时间：1987-02-13
- 链接：Wesco Financial Corporation Letters 1983-2009
- 中文翻译：Antigravity (Gemini 3 Flash)
To Our Shareholders:
致各位股东：
Consolidated “normal” operating income (i.e., before all unusual operating income and all net gains from sales of securities) for the calendar year 1986 increased to 1.68 per share) from 1.17 per share) in the previous year. Consolidated net income (i.e., after unusual operating income and all net gains from sales of securities) decreased to 2.32 per share) from 7.24 per share) in the previous year.
1986 日历年度，合并“常规”经营净收益（即剔除所有非寻常经营收益及出售证券的所有净收益）从上一年度的 8,347,000 美元（每股 1.17 美元）增至 11,934,000 美元（每股 1.68 美元）。合并净收益（即计入非寻常经营收益及出售证券的所有净收益）从上一年度的 51,541,000 美元（每股 7.24 美元）降至 16,524,000 美元（每股 2.32 美元）。
A highly unusual capital gain, of a not-likely-to-recur type, from disposition of General Foods stock caused most of the net income in 1985. The table below gives particulars.
1985 年的大部分净收益源于处置通用食品公司（General Foods）股票所产生的极不寻常且不太可能重演的资本收益。下表列出了具体明细。
Wesco has three major subsidiaries, Mutual Savings, in Pasadena, Precision Steel, headquartered in Chicago and engaged in the steel warehousing and specialty metal products businesses, and Wesco-Financial Insurance Company, headquartered in Omaha and currently engaged in the reinsurance business. Consolidated net income for the two years just ended breaks down as follows(1):
Wesco 拥有三家主要子公司：位于帕萨迪纳的互助储蓄银行（Mutual Savings）；总部位于芝加哥、从事钢材仓储和特种金属产品业务的精密钢材公司（Precision Steel）；以及总部位于奥马哈、目前从事再保险业务的 Wesco 金融保险公司（Wes-FIC）。截至刚刚结束的两个年度，合并净收益细分如下（1）：
| (in 000s except for per-share amounts) | Amount December 31,1986 | Per Wesco Share December 31,1986 | Amount December 31,1985 | Per Wesco Share December 31,1985 |
|---|---|---|---|---|
| ”Normal” net operating income (loss) of: | $ 11,934 | $ 1.68 | $ 8,347 | $ 1.17 |
| 1.Mutual Saving | 2,159 | .30 | 3,342 | .47 |
| 2.Precision Steel businesses | 1,701 | .24 | 2,010 | .28 |
| 3.Wesco-Financial Insurance business | 6,615 | .93 | (359) | (.05) |
| 3.1.Underwriting | (1,469) | (.21) | (1,584) | (.22) |
| 3.2.Investment activity | 8,084 | 1.14 | 1,225 | .17 |
| 4.All other “normal” net operating income (2) | 1,459 | .21 | 3,354 | .47 |
| Fluctuation in market value of GNMA futures contract | — | — | 1,671 | .24 |
| Net gains on sales of securities (3) | 4,590 | .64 | 41,523 | 5.83 |
| Wesco consolidated net income | $ 16,524 | $ 2.32 | $ 51,541 | $ 7.24 |
| （金额单位：千美元，除每股数据外） | 1986年12月31日金额 | 1986年每股金额 | 1985年12月31日金额 | 1985年每股金额 |
|---|---|---|---|---|
| “常规”经营净收益（亏损）： | $ 11,934 | $ 1.68 | $ 8,347 | $ 1.17 |
- 互助储蓄银行 | 2,159 | .30 | 3,342 | .47
- 精密钢材业务 | 1,701 | .24 | 2,010 | .28
- Wesco 金融保险业务 | 6,615 | .93 | (359) | (.05) 3.1 承保业务 | (1,469) | (.21) | (1,584) | (.22) 3.2 投资活动 | 8,084 | 1.14 | 1,225 | .17
- 所有其他“常规”经营净收益（2）| 1,459 | .21 | 3,354 | .47 GNMA 期货合约市值波动 | — | — | 1,671 | .24 证券销售净收益（3）| 4,590 | .64 | 41,523 | 5.83 Wesco 合并净收益 | 2.32 | 7.24
(1) All figures are net of income taxes.
（1）所有数字均为税后净值。
(2) After deduction of interest and other corporate expenses. Income was from ownership of the Mutual Savings headquarters office building, primarily leased to outside tenants, and interest and dividend income from cash equivalents and marketable securities owned outside the savings and loan and insurance subsidiaries.
（2）扣除利息及其他公司开支后的金额。收益主要来自互助储蓄银行总部大楼的所有权（主要租赁给外部租户），以及在储蓄贷款和保险子公司之外持有的现金等价物和可售证券产生的利息和股息收益。
(3) The 1985 figure includes a 4.83 per share) gain realized by Wesco on the sale of its General Foods Corporation common stock to Philip Morris Company in connection with the latter’s publicly announced tender offer.
（3）1985 年的数据包括 Wesco 将持有的通用食品公司普通股出售给菲利普·莫里斯公司（Philip Morris Company）而实现的 34,363,000 美元（每股 4.83 美元）的收益，该交易与后者公开宣布的要约收购有关。
This supplementary breakdown of earnings differs somewhat from that used in audited financial statements which follow standard accounting convention. The supplementary breakdown is furnished because it is considered useful to shareholders.
这种补充性的收益细分与按照标准会计惯例编制的审计财务报表所使用的细分略有不同。提供这种补充细分是因为我们认为这对股东很有帮助。
Mutual Savings
互助储蓄银行
Mutual Savings’ “normal” net operating income of 3,342,000 figure the previous year.
1986 年互助储蓄银行的“常规”经营净收益为 2,159,000 美元，比上一年度的 3,342,000 美元下降了 35%。
Separate balance sheets of Mutual Savings at yearend 1985 and 1986 are set forth at the end of this annual report. They show (1) total savings accounts rising to 269 million the year before, (2) a very high ratio of shareholders’ equity to savings account liabilities (probably the highest for any mature U.S. savings and loan association), (3) a substantial portion of savings account liabilities offset by cash equivalents and marketable securities, (4) a loan portfolio (mostly real estate mortgages) of about 83 million at the end of 1985, and (5) favorable effects of securities gains, which caused net worth to decline only 7.5 million to the parent corporation.
本年报末尾列出了互助储蓄银行 1985 年底和 1986 年底的独立资产负债表。它们显示：（1）储蓄存款总额从上一年的 2.69 亿美元增至 2.82 亿美元；（2）股东权益与储蓄账户负债的比率极高（可能是美国任何成熟储蓄贷款协会中最高的）；（3）很大一部分储蓄账户负债由现金等价物和可售证券抵消；（4）截至 1986 年底，贷款组合（主要是房地产抵押贷款）约为 7,900 万美元，比 1985 年底的 8,300 万美元下降了 6%；（5）受证券收益的有利影响，尽管向母公司支付了 750 万美元的股息，但 1986 年的净值仅下降了 300 万美元。
The loan portfolio at the end of 1986, although containing almost no risk of loss from defaults, bore an average interest rate of only 7.48%, probably the lowest for any U.S. savings and loan association and about equal to the average interest rate which now must be paid to hold savings accounts. This, of course, leaves no net interest margin to cover operating costs. However, the unrealized depreciation in the loan portfolio is now more than offset by unrealized appreciation in Mutual Savings’ interest-bearing securities and preferred stocks. Such unrealized appreciation at December 31,1986 was about $17 million.
截至 1986 年底的贷款组合虽然几乎没有违约损失风险，但平均利率仅为 7.48%，这大概是美国所有储蓄贷款协会中最低的，并且几乎等同于目前为维持储蓄账户而必须支付的平均利率。这自然导致没有任何净息差来覆盖经营成本。然而，贷款组合中的未实现贬值现在已因互助储蓄银行持有的生息证券和优先股的未实现增值而得到超额补偿。截至 1986 年 12 月 31 日，此类未实现增值约为 1,700 万美元。
As pointed out in footnote 14 to the accompanying financial statements, the $54.8 million book value of Wesco’s equity in Mutual Savings at December 31, 1986, overstates the amount realizable, after taxes, from sale or liquidation at book value. If all Mutual Savings’ assets, net of liabilities, were to be sold, even pursuant to a plan of complete liquidation, for the $54.8 million in book value reported under applicable accounting convention, the parent corporation would receive much less than $54.8 million after substantial income taxation imposed because about $47 million of what is designated shareholders’ equity for accounting purposes is considered bad debt reserves for most tax purposes.
正如随附财务报表附注 14 所指出的，Wesco 在互助储蓄银行持有的权益账面价值（截至 1986 年 12 月 31 日为 5,480 万美元）
高估了按账面价值出售或清算后可实现的税后金额。如果互助储蓄银行的所有资产扣除负债后，即使根据完整清算计划
按适用会计惯例报告的 5,480 万美元账面价值出售，母公司收到的金额也将远低于 5,480 万美元，因为出于会计目的
指定的约 4,700 万美元股东权益在大多数税务目的下被视为坏账准备金，从而会被征收巨额所得税。
There is, however, in Mutual Savings, not only a buried plus value in unrealized appreciation of securities, but also a buried plus value in real estate. The foreclosed property on hand (mostly 22 largely oceanfront acres in Santa Barbara) has become worth over a long holding period much more than its $1.6 million balance sheet carrying cost. Reasonable, community-sensitive development of this property has been delayed over 11 years in the course of administration of land-use laws. But we are optimistic that delay will end in 1987 and that the Santa Barbara and Montecito communities will be very pleased with development into 32 houses interspersed with large open areas. Mutual Savings plans to make the development first rate in every respect, and unique in the quality of its landscaping.
然而，互助储蓄银行不仅在证券的未实现增值中蕴藏着额外价值，在房地产中也同样如此。
公司持有的止赎财产（主要是位于圣巴巴拉的约 22 英亩沿海土地）经过长期的持有，
其价值已远超 1.6 百万美元的资产负债表账面价值。由于土地利用法律的行政执行，
该物业合理且兼顾社区需求的开发已被推迟了 11 年。但我们乐观地认为，这种延误将在 1987 年结束，
圣巴巴拉和蒙特西托（Montecito）社区将会对这一开发项目感到非常满意，该项目计划建造 32 栋房屋，
并点缀以大片绿地空间。互助储蓄银行计划在各方面都将该项目打造为一流水平，并在景观质量上做到独具特色。
The buried plus value in real estate is limited by the small number of houses allowed (32) and by the fact that only a minority of such houses (12) will have any significant ocean view. Additional limitation will come from prospective high cost of private streets, sewage and utility improvements and connections, and landscaping. And, most important of all, various charges and burdens imposed by governmental bodies will drastically reduce our potential recovery from what it would have been had the zoning and development climate of the early 1970s continued into 1987.
房地产中的潜伏价值受到允许建造房屋数量较少（32 栋）的限制，且只有少数房屋（12 栋）拥有明显的海景。此外，私人街道、排污和公用事业设施的改进与连接以及景观美化的预期高成本，也将进一步限制其价值。最重要的一点是，政府机构征收的各种费用和负担，将使我们的潜在回收金额相比于如果 20 世纪 70 年代早期的规划和开发气候持续到 1987 年的情况大打折扣。
Balancing all merits and demerits, Mutual Savings, as it has been managed under present conditions by the writer and others, continues to be a mediocre business from the shareholders’ point of view.
权衡所有优缺点，由本人及其他人在目前条件下经营的互助储蓄银行，从股东的角度来看，仍然是一项平庸的业务。
Mutual Savings’ good points are:
互助储蓄银行的优点包括：
(1) high asset quality and sound balance sheet;
（1）极高的资产质量和稳健的资产负债表；
(2) a maturity match of interest-bearing assets and liabilities which makes risk of insolvency near zero, whatever happens to interest rates; and
（2）生息资产与负债的久期匹配，使得无论利率如何波动，破产风险都趋近于零；
(3) a deserved reputation for high quality service to account holders, achieved at below-average cost to the institution in an efficient one-large-office operation, as distinguished from a many-small-branch-offices operation.
（3）在为账户持有人提供高质量服务方面享有盛誉，这是通过高效的单一大型办公室运营实现的，其成本低于同行业的平均水平，这与多网点、小分支的运营模式截然不同。
Mutual Savings’ bad points are:
互助储蓄银行的缺点包括：
(1) all recent growth in savings accounts, considered on an incremental-effects basis, has been loss business because interest and other costs incurred exceed income obtained by employing proceeds in short-term interest-bearing assets;
（1）从增量效应来看，近期储蓄账户的所有增长都是亏损业务，因为支付的利息和其他成本超过了将所得资金投入短期生息资产所获得的收入；
(2) a burdensome position under the FSLIC account-insurance system causes payments of ever-higher amounts into the system to help bail out more venturesome savings and loan associations which become insolvent, with the payments being required despite the fact that Mutual Savings imposes almost no risk on FSLIC;
（2）在联邦储蓄贷款保险公司（FSLIC）的账户保险体系下处于被动地位，导致必须向该体系支付越来越多的费用，以帮助救助那些因激进而破产的储蓄贷款协会，尽管事实上互助储蓄银行几乎没有给 FSLIC 带来任何风险；
(3) “normal” net operating income is below an acceptable rate of return on present book value of shareholders’ equity, with such return reaching an acceptable level over recent years only with help from securities gains and other unusual items;
（3）“常规”经营净收益低于当前股东权益账面价值的可接受回报率，近几年来，这种回报率只有在证券收益和其他非常规项目的帮助下才达到可接受水平；
(4) it would not be easy to leave the savings and loan business, should this course of action ever be desired, without a large income tax burden of a type not applied to corporations other than savings and loan associations;
（4）如果哪天想要退出储蓄贷款业务，并非易事，因为会面临一种不适用于除储蓄贷款协会以外企业的巨额所得税负担；
(5) as explained in last year’s annual report, the regulatory structure of the savings and loan business creates a competitive situation in which it is hard to make respectable profits through careful operations; and
（5）正如去年的年报所述，储蓄贷款业务的监管结构造成了一种竞争环境，使得通过谨慎经营很难获得体面的利润；
(6) management has not yet found an acceptable remedy for any of the previously listed bad points, despite years of trying.
（6）尽管尝试多年，管理层尚未为上述任何缺点找到可接受的补救措施。
Moreover, comparisons of post-1984 financial results for Mutual Savings with results for many other and more typical savings and loan associations in California continue to leave Mutual Savings looking inferior, to put it mildly. As interest rates went down these other associations, which have greater financial leverage and operated less fearfully than Mutual Savings during former high-interest periods, came to have loan and investment portfolios which (1) now are worth more on average than book value and (2) now produce a high return on book value of shareholders’ equity, after deduction of operating expenses and interest to account holders at present rates. Any Wesco shareholder who thinks Mutual Savings has any expertise in predicting and profiting from interest rate changes can look at the 1985-1986 record and despair.
此外，将 1984 年后互助储蓄银行的财务结果与加州许多其他更典型的储蓄贷款协会的结果进行比较，仍使互助储蓄银行显得相形见绌，这还是往好里说的。随着利率下降，这些其他协会由于拥有更高的财务杠杆，且在之前的高利率时期不像互助储蓄银行那样畏手畏脚，它们的贷款和投资组合现在：（1）平均价值高于账面价值；（2）在扣除经营开支和按当前利率支付给账户持有人的利息后，其股东权益账面价值产生了很高的回报。任何认为互助储蓄银行在预测利率变化并从中获利方面有任何专长的 Wesco 股东，只要看看 1985-1986 年的记录就会感到绝望。
Despite the fact that some other savings and loan associations did much better after 1984 than Mutual Savings, and are now much better poised to report good figures for 1987, we plan to continue operating only in ways acceptable in our own judgment, anticipating as a consequence widely fluctuating and sometimes inadequate returns. In the future, however, Mutual Savings will make and purchase more loans. Now that Mutual Savings’ oid mortgage loans have declined in amount and increased in market value (the market value increase being caused both by a decline in generally prevailing interest rates and by a shortening of remaining loan life), new loans will be added as seems wise, with a target that at least 60% of assets be in housing-related loans. New direct loans aggregating $9 million were made in 1986, all adjustable rate mortgages with no cap on future interest rate changes but with an extremely low “spread” for the lender. In recent months the total of all loans on hand has risen as new loans made exceeded principal payoffs on old loans.
尽管其他一些储蓄贷款协会在 1984 年后的表现远好于互助储蓄银行，且目前更有可能在 1987 年报告亮眼的数据，但我们仍计划仅以我们认为可接受的方式继续经营，即便后果是回报会剧烈波动，且有时会不尽如人意。不过，未来互助储蓄银行将发放并购买更多贷款。鉴于互助储蓄银行旧的抵押贷款金额已经下降且市值已经上升（市值的上升源于普遍利率的下降和剩余贷款寿命的缩短），我们将明智地增加新贷款，目标是至少 60% 的资产为住房相关贷款。1986 年共发放了总计 900 万美元的新直接贷款，全部为可调利率抵押贷款，对未来利率变化不设上限，但贷款人的息差极低。近几个月来，由于新发放贷款超过了旧贷款的本金偿还，手头的贷款总额有所增加。
With assets not employed in direct real-estate lending, Mutual Savings continues not only to make payments to FSLIC far in excess of fair charges for risks imposed on FSLIC but also to employ a large part of total assets in short-term loans to the Federal Home Loan Bank. These practices are pro-social but will continue to reduce profits.
对于未用于直接房地产贷款的资产，互助储蓄银行不仅继续向 FSLIC 支付远超其所加风险公平价格的费用，还将总资产的很大一部分用于向联邦住宅贷款银行（Federal Home Loan Bank）提供短期贷款。这些做法有益于社会，但将继续降低利润。
Mutual Savings also continues to support the Federal Home Loan Bank Board in its efforts to change the present rules of the savings and loan business to augment average soundness of FSLIC-insured associations and prevent recurrence of widespread insolvencies like those now bedevilling the industry.
互助储蓄银行还继续支持联邦住宅贷款银行委员会（Federal Home Loan Bank Board）努力改变目前的储蓄贷款行业规则，以增强 FSLIC 承保协会的平均稳健性，并防止像目前正困扰该行业的普遍破产现象再次发生。
Precision Steel
精密钢材
Wesco’s Precision Steel subsidiary, located in the outskirts of Chicago at Franklin Park, Illinois, was acquired for approximately $15 million on February 28, 1979. The price was roughly book value for a company which carried its inventories on a conservative LIFO accounting basis and which contained significant cash balances.More important, the company had reached its position from a modest beginning through maintenance of sound, customer-oriented business values inculcated over a long time by a gifted founder and his successors. Precision Steel owns a well-established steel service center business and a subsidiary engaged in the manufacture and distribution of tool room supplies and other specialty metal products.
Wesco 的精密钢材子公司位于伊利诺伊州富兰克林公园的芝加哥郊区，于 1979 年 2 月 28 日以约 1500 万美元的价格收购。对于一家采用保守的后进先出（LIFO）会计准则进行库存核算且拥有大量现金余额的公司来说，这个价格大致相当于其账面价值。更重要的是，这家公司从微小的起点出发，通过长期坚持由天才创始人及其继任者所灌输的稳健且以客户为导向的商业价值观，确立了其市场地位。精密钢材拥有一项成熟的钢材服务中心业务，以及一家从事工具室用品和其他特种金属产品制造 and 分销的子公司。
Precision Steel’s businesses contributed 2,010,000 in 1985. The decrease in 1986 profit occurred in spite of increased revenues (up 2% to $52,304,000).
1986 年，精密钢材的业务为“常规”经营净收益贡献了 1,701,000 美元，比 1985 年的 2,010,000 美元下降了 15%。1986 年利润的下降发生在收入增长（增长 2% 至 52,304,000 美元）的情况下。
Under the skilled leadership of David Hillstrom, Precision Steel’s businesses are now quite satisfactory, taking into account the financial leverage put into Wesco’s consolidated picture incident to their acquisition.
在戴维·希尔斯特伦（David Hillstrom）的卓越领导下，考虑到因收购该公司而引入 Wesco 合并报表的财务杠杆，精密钢材目前的经营状况相当令人满意。
Shortly after Wesco’s purchase of Precision Steel, a substantial physical expansion of steel warehousing facilities was authorized, involving a new building in Charlotte, North Carolina. The new building and the whole North Carolina operation are now very successful, contributing $10,172,000 to 1986 sales at a profit margin higher than has prevailed in the long-established Chicago headquarters’ facility.
在 Wesco 收购精密钢材后不久，我们批准了一次重大的钢材仓储设施扩建，包括在北卡罗来纳州夏洛特新建一座建筑。这座新大楼及整个北卡罗来纳业务目前非常成功，为 1986 年贡献了 10,172,000 美元的销售额，且利润率高于历史悠久的芝加哥总部工厂。
Precision Steel’s businesses, despite their mundane nomenclature, are steps advanced on the quality scale from mere commodity-type businesses.Many customers of Precision Steel, needing dependable supply on short notice of specialized grades of high-quality, cold-rolled strip steel, reasonable prices, technical excellence in cutting to order, and remembrance when supplies are short, rightly believe that they have no fully comparable alternative in Precision Steel’s market area. Indeed, many customers at locations remote from Chicago and Charlotte (for instance, Los Angeles) seek out Precision Steel’s service.
精密钢材的业务尽管名称听起来平凡，但从质量等级来看，它们比单纯的大宗商品型业务高出一个档次。精密钢材的许多客户需要在短时间内获得可靠的高质量、冷轧带钢特种牌号供应，且要求价格合理、按订单切割的技术卓越，并希望在供应紧张时能得到优先照顾。这些客户正确地认为，在精密钢材的市场范围内，没有完全可比的替代选择。事实上，许多远离芝加哥和夏洛特的客户（例如洛杉矶）也会寻求精密钢材的服务。
Wesco remains interested in logical expansion of Precision Steel’s businesses, using available liquid assets.
Wesco 仍有兴趣利用现有的流动资产对精密钢材的业务进行合理的扩张。
Wesco-Financial Insurance Company
Wesco 金融保险公司
A new business was added to the Wesco group in 1985, in co-venture with Wesco’s 80% owner and ultimate parent corporation,Berkshire Hathaway Inc.
1985 年，Wesco 集团新增了一项业务，这是与 Wesco 持股 80% 的所有者及最终母公司伯克希尔·哈撒韦公司（Berkshire Hathaway Inc.）合作开展的合资项目。
With the enthusiastic approval of all Wesco’s directors, including substantial Wesco shareholders in the Peters and Caspers families, without whose approval such action would not have been taken, Wesco in 1985 invested 36.2 million was invested in January 1986.
在得到 Wesco 全体董事（包括彼得斯和卡斯珀斯家族的主要股东）热烈批准的前提下——如果没有他们的批准，我们绝不会采取此行动——Wesco 于 1985 年将 4,500 万美元的现金等价物投入到新成立的、全资持有的、在内布拉斯加州注册的保险公司 Wesco-Financial Insurance Company（简称“Wes-FIC”）。1986 年 1 月又追加投资了 3,620 万美元。
The new subsidiary, Wes-FIC, has reinsured, through another Berkshire Hathaway insurance company subsidiary as intermediary-without-profit, 2% of the entire book of insurance business of the long-established Fireman’s Fund Corp. (listed on the NYSE). Wes-FIC thereby assumed the benefits and burdens of Fireman’s Fund’s prices, costs and losses under a contract covering all insurance premiums earned by Fireman’s Fund during a four-year period commencing September 1,1985. The arrangement puts Wes- FIC in almost exactly the position it would have been in if it, instead of Fireman’s Fund, had directly written 2% of the business. Differences in results should occur only from the investment side of insurance, as Wes-FIC, instead of Fireman’s Fund, invests funds from “float” generated. Wes-FIC’s share of premiums earned in 1986 exceeded $67 million.
新成立的子公司 Wes-FIC 通过另一家伯克希尔·哈撒韦保险子公司作为非营利中介，对历史悠久的消防员基金公司（Fireman’s Fund Corp.，在纽交所上市）的全部保险业务进行了 2% 的再保险。根据一份涵盖消防员基金公司自 1985 年 9 月 1 日开始的四年内所有已赚保险费的合同，Wes-FIC 借此承担了消防员基金公司的定价、成本和损失的收益与负担。这一安排使 Wes-FIC 所处的位置几乎与它直接承保这 2% 业务（而非通过消防员基金公司）完全一致。结果的差异应仅来自保险的投资端，因为是由 Wes-FIC 而非消防员基金公司来投资产生的“浮存金”。Wes-FIC 在 1986 年分享的已赚保费超过了 6,700 万美元。
Wes-FIC’s separate financial statements, covering the brief period of its existence, September 1, 1985, to December 31, 1986, are included on page 30 of this Annual Report, and show that Wes-FIC’s net income for 1986 was 359,000) for its first 4 months of operation in 1985. The 1986 net income figure included securities gains, net of income taxes, of $352,000.
Wes-FIC 独立的财务报表（涵盖其从 1985 年 9 月 1 日成立到 1986 年 12 月 31 日的简短存续期）包含在本年报第 30 页。报表显示 Wes-FIC 1986 年的净收益为 6,967,000 美元，而 1985 年前四个月的运营则有少量亏损（359,000 美元）。1986 年的净收益数字中包含了 352,000 美元的税后证券净收益。
It is in the nature of even the finest casualty insurance businesses that in keeping their accounts they must estimate and deduct all future costs and losses from premiums already earned. Uncertainties inherent in this undertaking make financial statements more mere “best honest guesses” than is typically the case with accounts of non-insurance-writing corporations. And the reinsurance portion of the casualty insurance business, because it contains one or more extra links in the loss-reporting chain, usually creates more accounting uncertainty than the non-reinsurance portion. Wesco shareholders should remain aware, not only of the inherent imperfections of Wes-FIC’s accounting, but also of the inherent cyclicality of its business.
即使是最好的财险公司，其业务本质也决定了在记账时必须从已赚保费中预估并扣除所有未来的成本和损失。这种内在的不确定性使得保险公司的财务报表相比非保险类公司，更多地呈现为一种“诚实的最优假设”。而在财险业务的再保险环节，由于在损余报告链条中多出了一个或多个环节，通常比非再保险业务具有更高的会计不确定性。Wesco 股东不仅应意识到 Wes-FIC 会计核算中固有的缺陷，还应注意其业务固有的周期性。
However, Wesco hopes for: (1) a reasonable return on its investment over the four years of the Fireman’s Fund reinsurance contract, and (2) possible future reinsurance contracts with other insurers.
尽管如此，Wesco 仍希望：（1）在为期四年的消防员基金再保险合同期内获得合理的投资回报；（2）未来可能与其他保险公司签订再保险合同。
We very much like our association with Fireman’s Fund, a real class operation, and with Jack Byrne, its CEO, who displayed great integrity, intelligence and vigor in returning GEICO Corporation to glory before he took his present position.
我们非常喜欢与消防员基金公司合作，这是一家真正顶级的企业。我们也高度评价其 CEO 杰克·伯恩（Jack Byrne），他在担任现职前，曾以卓越的正真、智慧和活力带领 GEICO 公司重铸辉煌。
All Other “Normal” Net Operating Income
所有其他“常规”经营净收益
All other “normal” net operating income, net of interest paid and general corporate expenses, decreased to 3,354,000 in 1985. Sources were (1) rents ($2,229,000 gross, excluding rent from Mutual Savings) from Wesco’s Pasadena office building block (predominantly leased to outsiders although Mutual Savings is the ground floor tenant) and (2) interest and dividends from cash equivalents and market- able securities held by Precision Steel and its subsidiaries and at the parent company level. The great decrease in interest and dividends received in this “other income” cate- gory was caused by the transfer of assets to Wes-FIC, where income is now classified as insurance income.
扣除已付利息和一般公司开支后的所有其他“常规”经营净收益，从 1985 年的 3,354,000 美元降至 1986 年的 1,459,000 美元。其来源包括：（1）来自 Wesco 帕萨迪纳办公大楼区块的租金（总额 2,229,000 美元，不包括互助储蓄银行支付的租金；该大楼虽由互助储蓄银行租用底层，但主要租赁给外部人员）；以及（2）由精密钢材及其子公司以及母公司层面持有的现金等价物和可售证券产生的利息和股息。此类“其他收益”中收到的利息和股息大幅减少，是由于资产转移到了 Wes-FIC，现在那里的收益被归类为保险收益。
Net Gains on Sales of Securities
证券销售净收益
Wesco’s aggregate net gains on sales of securities, combined, after income taxes, decreased to 41,523,000 in 1985.
Wesco 合并后的税后证券销售净收益总额，从 1985 年的 41,523,000 美元降至 1986 年的 4,590,000 美元。
Bowery Savings Bank
鲍里储蓄银行 (The Bowery Savings Bank)
In 1985 Wesco, in another co-venture with its parent corporation, approved by Wesco’s directors in the same manner as the Wes-FIC co-venture, joined a group which invested $100,000,000 cash in a newly organized, New York-chartered savings bank.
The new bank then took over the name, assets and liabilities of the insolvent Bowery Savings Bank in the city of New York. The takeover received (1) much needed assistance from FDIC, the federal agency, akin to FSLIC, which insures deposits in banks, and (2) the blessing of New York bank regulators. Wesco invested 12,384,000, and other unrelated investors invested the balance of the $100,000,000.
1985 年，Wesco 再次与其母公司合作——由 Wesco 董事会以与 Wes-FIC 合资相同的方式批准——加入了一个投资 1 亿美元现金成立新纽约州注册储蓄银行的团体。该新银行随后接管了纽约市已破产的鲍里储蓄银行（Bowery Savings Bank）的名称、资产和负债。此次接管得到了：（1）FDIC 的急需援助（FDIC 是类似于 FSLIC 的联邦机构，负责为银行存款提供保险）；以及（2）纽约银行监管机构的认可。Wesco 投资了 900 万美元，伯克希尔·哈撒韦的其他子公司投资了 1,238.4 万美元，其他无关投资者投资了剩余部分。
The terms of the FDIC assistance, which include income-assistance payments over many years to the newly organized bank, are extremely complex but can be fairly summarized as far from adequate to assure that the investors will make a profit. This is as it should be when 5 billion bank, albeit one with many sick assets.
FDIC 的援助条款非常复杂，包括多年向新成立的银行支付收益补助金，但可以公平地总结为：这些援助远不足以保证投资者一定能获利。当以 1 亿美元购买一家拥有 50 亿美元资产（尽管其中包含许多问题资产）银行的高杠杆剩余股权头寸时，理应如此。
Any minority-position investment with such extreme financial leverage (in effect buying with a 2% down payment), involving a troubled company in a demanding environment, can fairly be called a venture-capital type investment for Wesco. In our judgment, the prospect for gain justified the risk of loss.
任何带有如此极端财务杠杆（实际上是用 2% 的首付购买）、涉及在严酷环境下的困境公司的少数股权投资，对 Wesco 而言都可以公平地被称为一种“风险投资”型的投资。我们判断，获利的前景足以支撑损失的风险。
This investment continues to be carried at cost in Wesco’s accompanying financial statements, and we continue in guarded optimism regarding our position.
在 Wesco 随附的财务报表中，这项投资继续按成本入账，我们对自己的头寸保持谨慎乐观。
Consolidated Balance Sheet and Related Discussion
合并资产负债表及相关讨论
Wesco’s consolidated balance sheet (1) retains a strength befitting a company whose consolidated net worth supports large outstanding promises to others and (2) reflects a continuing slow pace of acquisition of additional businesses because few are found available, despite constant search, at prices deemed rational from the standpoint of Wesco shareholders.
Wesco 的合并资产负债表：（1）保持了与其合并净资产规模相称的实力，足以支撑其对他人作出的巨额未决承诺；（2）反映了新增业务收购步伐持续缓慢，因为尽管我们不断寻找，但从 Wesco 股东的角度来看，很少能找到价格合理的标的。
As indicated in Note 3 to the accompanying financial statements, the aggregate market value of Wesco’s marketable equity securities was higher than their aggregate carrying value at December 31, 1986 by about 5 million one year earlier. The consolidated aggregate market value of all marketable securities, including bonds and other fixed-income securities, exceeded aggregate carrying value by about 17 million of this unrealized appreciation lies within the savings and loan subsidiary.
如随附财务报表附注 3 所示，截至 1986 年 12 月 31 日，Wesco 可售权益证券的总市值比其总账面价值高出约 1,300 万美元，较一年前的约 500 万美元略有上升。所有可售证券（包括债券和其他固定收益证券）的合并总市值超过总账面价值约 2,300 万美元。如前所述，其中约 1,700 万美元的未实现增值存在于储蓄贷款子公司中。
Wesco’s Pasadena real estate, a full block (containing (1) about 125,000 first class net rentable square feet, including Mutual Savings’ space, in a modern office building, plus (2) an additional net rentable 34,000 square feet of economically marginal space in old buildings requiring expensive improvement), has a market value substantially in excess of carrying value, demonstrated by (1) mortgage debt (3,091,000) in Wesco’s balance sheet at December 31, 1986, and (2) substantial current net cash flow (about $1 million per year) to Wesco after debt service on the mortgage.The modern office building is 96% rented, despite a glut of vacant office space in Pasadena. We charge just-below-standard rents and run the building as a sort of first-class club for tenants we admire. With these practices, a prime location and superior parking facilities, we anticipate future increases in cash flow, but at no better rate than the rate of inflation.
Wesco 在帕萨迪纳的房地产占据了整个街区，包含：（1）现代办公楼中约 125,000 平方英尺的一流净可租面积（包括互助储蓄银行使用的空间）；以及（2）旧建筑中另外 34,000 平方英尺的经济效益边际净可租面积（这些旧建筑需要昂贵的改造）。该房地产的市值远高于账面价值，这体现在：（1）该房地产抵押债务（利率 9.25% 固定，总额 4,940,000 美元）目前已超过其在 Wesco 1986 年 12 月 31 日资产负债表上的折旧后账面价值（3,091,000 美元）；（2）在偿还抵押贷款债务后，目前每年为 Wesco 提供约 100 万美元的可观净现金流。尽管帕萨迪纳办公空间过剩，但这栋现代办公楼的租出率仍高达 96%。我们收取略低于标准的租金，并将这栋建筑运营成一个服务于我们所钦佩租户的一流“俱乐部”。凭借这些做法、优越的地理位置和卓越的停车设施，我们预计未来现金流会继续增加，但增速可能不会超过通货膨胀率。
Wesco remains in a prudent position when total debt is compared to total shareholders’ equity and total liquid assets. Wesco’s practice has been to do a certain amount of long-term borrowing in advance of specific need, in order to have maximum financial flexibility to face both hazards and opportunities.
当将总债务与总股东权益及总流动资产进行比较时，Wesco 仍处于审慎地位。Wesco 的惯例是在具体需求出现之前进行一定数量的长期借款，以便拥有最大的财务灵活性来面对危机和机遇。
It is expected that the balance sheet strength of the consolidated enterprise will in due course be used in one or more business extensions. The extension activity, however, requires patience, as suitable opportunities are not always present.
预计合并企业的资产负债表实力将在适当时候用于一项或多项业务扩张。然而，扩张活动需要耐心，因为合适的时机并不总是存在。
As indicated in Schedule I accompanying Wesco’s financial statements, investments, both those in the savings and loan and reinsurance subsidiaries and those held temporarily elsewhere pending sale to fund business extension, tend to be concentrated in very few places. Through this practice of concentration of investments, better understanding is sought with respect to the few decisions made.
如随附财务报表附录 I 所示，无论是储蓄贷款和再保险子公司的投资，还是为了资助业务扩张而暂时持有的待售投资，都倾向于高度集中在少数几个地方。通过这种集中投资的做法，我们力求对所做的少数决策有更深入的理解。
The ratio of Wesco’s annual reported consolidated net income to reported consolidated shareholders’ equity, about 19% in 1984-86, was dependent to a very large extent on securities gains, irregular by nature. This recent ratio is almost certain to continue to decline, probably sharply, as it did in 1986. Neither possible future acquisitions of other businesses nor possible future securities gains appear likely to help much in the short term. The business acquisition game continues to be crowded with optimistic players who usually force prices for low-leverage acquirers like Wesco to levels where return-on-investment prospects are modest. And future securities gains are likely to prove harder to come by for very simple reasons. Because securities generally traded lower several years ago than they do now, relative to the intrinsic values of the businesses represented by the securities, creating more obviously sound investments then than now, and because prospects for above-average returns tend to go down as assets managed go up, it is now, early in 1987, even easier than it was early in 1986, to predict less desirable future results. It is also easy for any sophisticated Wesco shareholder, reviewing either (i) this virtual reprint of last year’s letter or (ii) Wesco’s marketable securities disclosed herein, to diagnose (correctly) that the decision-makers are now even more dry of good ideas than they were a year earlier.
Wesco 年度报告的合并净收益与报告的合并股东权益之比，在 1984-86 年间约为 19%，这在很大程度上取决于性质上不规则的证券收益。这一比率几乎肯定会继续下降，甚至可能像 1986 年那样大幅下降。无论是未来可能的业务收购还是证券收益，短期内似乎都无法提供太大帮助。业务收购游戏依然挤满了乐观的玩家，他们通常会将价格推高到像 Wesco 这样低杠杆收购者只能获得平庸回报的水平。至于未来的证券收益，由于几个非常简单的原因，很可能会变得更难获得：因为几年前证券的交易价格普遍低于现在（相对于其代表的企业内在价值），当时比现在更容易找到稳健的投资机会；而且由于资产管理规模扩大，获得超额回报的前景往往会下降。因此，在 1987 年初预测未来业绩不如人意，甚至比 1986 年初还要容易。任何老练的 Wesco 股东，只要审阅一下这封几乎是去年信件翻版的函件，或者审阅一下此处披露的 Wesco 可售证券，都能（正确地）诊断出决策者现在的“金点子”比一年前还要枯竭。
The considerable, and higher than normal, liquidity of Wesco’s consolidated financial position as this is written does not result from our forecast that business conditions are about to worsen, or that interest rates are about to rise, or that common stock prices are about to fall. Wesco’s condition results, instead, from our simply not finding opportunities for more aggressive use of capital with which we are comfortable.
在撰写本文时，Wesco 合并财务状况所表现出的显著且高于正常的流动性，并非源于我们预测商业环境即将恶化、利率即将上升或股市即将下跌。相反，Wesco 的这种现状仅仅是因为我们没有找到能让我们放心地更积极地使用资本的机会。
Wesco continues to try more to profit from always remembering the obvious than from grasping the esoteric (including much modern “strategic planning” and “portfolio theory”). Such an approach, while it has worked fairly well on average in the past and will probably work fairly well over the long-term future, is bound to encounter periods of dullness and disadvantage as it limits action. Moreover, the approach is being applied to no great base position. Wesco is sort of scrambling through the years without owning a single business, even a small one, with enough commercial advantage in place to pretty well assure high future returns on its capital. In contrast, Berkshire Hathaway, Wesco’s parent corporation, owns a fair number of such high-return businesses.
Wesco 继续致力于从“永远记住显而易见的事实”中获利，而不是去钻研深奥的东西（包括许多现代的“战略规划”和“组合理论”）。这种方法虽然在过去平均运作良好，且在长期未来可能也会继续奏效，但在限制行动的同时，也注定会遇到沉闷和不利的时期。此外，这种方法并没有应用在一个强大的基础头寸之上。Wesco 多年来可谓是在苦苦挣扎，却没能拥有一家（哪怕是很小的）具有足够商业优势、能确保未来资本高回报的企业。相比之下，Wesco 的母公司伯克希尔·哈撒韦则拥有相当多此类高回报企业。
On January 22, 1987, Wesco increased its regular quarterly dividend from 16.5 cents per share to 17.5 cents per share, payable March 12, 1987, to shareholders of record as of the close of business on February 20,1987.
1987 年 1 月 22 日，Wesco 将其定期季度股息从每股 16.5 美分增加到 17.5 美分，将于 1987 年 3 月 12 日支付给截至 1987 年 2 月 20 日收盘时在册的股东。
This annual report contains Form 10-K, a report filed with the Securities and Exchange Commission, and includes detailed information about Wesco and its subsidiaries as well as audited financial statements bearing extensive footnotes. As usual, your careful attention is sought wvith respect to these items.
本年报包含提交给证券交易委员会的 Form 10-K 报告，其中包括有关 Wesco 及其子公司的详细信息，以及带有详尽附注的审计财务报表。一如既往，希望各位对这些内容予以密切关注。
Charles T.Munger
查理·T·芒格
Chairman of the Board
董事长
February 13, 1987
1987 年 2 月 13 日