Warren Buffett

Arguably the best-known investor on the planet. Buffett is known for the world-class returns he has produced for over 30 years from his investment conglomerate, Berkshire Hathaway, and for his witty and insightful chairman's letter in Berkshire's annual report. Adding in the investment record of Buffett's partnership, which he ran from 1956 to 1968 before sinking his capital into Berkshire, then his record from 1956 to 2001 showed an annual compound growth rate of 24.5%, enough to turn $1,000 into $i9m. Over the same period, the pre-tax return from the S&P 500 index was 10.1% a year.

Buffett is characterised as an exponent of value investing and he learned his trade from Benjamin Graham, who first espoused that particular cause. In many respects, however, Buffett's investment style is far removed from Graham's. It focuses on the "business franchise", the idea that there is a small cadre of exceptional businesses whose advantages mean that they are protected from everyday economics. Brand-name corporations, or those which can grow on the back of bigger corporations - "gross royalty businesses" such as advertising agencies - are good examples.

Annual report

All companies whose owners have a limited liability to the financial obligations of their company must publish an annual report, which is sent to the owners and lodged with a central authority for public inspection. For companies whose shares are listed on a recognised stock exchange, the annual report will almost certainly contain a mix of statutory information and information given voluntarily by the management. The statutory information includes a profit and loss account (income statement in the United States), balance sheet (statement of financial position in the United States) and cash flow statement, together with explanatory notes to these.