The table in the Annual Report, referenced in the Chairman's Letter, compares Berkshire Hathaway's annual percentage change in per-share book value to the S&P 500's annual percentage change with dividends included from 1965 to 2000. Berkshire consistently outperformed the S&P 500 in most years, with notable years of significant outperformance including 1966 (32.0%), 1974 (31.9%), 1977 (39.3%), and 1981 (36.4%). However, there were a few years where the S&P 500 outperformed Berkshire, such as 1967 (-19.9%), 1975 (-15.3%), and 1980 (-13.0%). The data highlights Berkshire's strong long-term performance relative to the S&P 500, with particularly high gains in years like 1976 (59.3%) and 1985 (48.2%). Overall, the table underscores Berkshire Hathaway's robust growth in book value per share compared to the broader market over the 35-year period. In 2001, Berkshire Hathaway Inc. experienced a net worth loss of $3.77 billion, reducing the per-share book value of both Class A and Class B stock by 6.2%. Despite this, over the past 37 years, the per-share book value has grown from $19 to $37,920, achieving a compounded annual growth rate of 22.6%. The intrinsic value per share has grown slightly faster than the book value over this period and likely decreased less in 2001. The data provided includes adjustments for changes in accounting rules starting in 1979, which required insurance companies to value equity securities at market value. The S&P 500 numbers are pre-tax, while Berkshire's are after-tax, affecting comparative performance. New shareholders are encouraged to read the Owner's Manual for a deeper understanding of Berkshire's economic principles. Two years ago, Warren Buffett reported that 1999 marked both the worst absolute and relative performance in Berkshire's history. He emphasized that relative results are the primary concern, a principle he has held since starting his first investment partnership in 1956. Initially, the Dow Jones Industrials was used as a benchmark, later switching to the S&P 500. The comparative record since 1965 shows that last year, Berkshire outperformed the S&P 500 by 5.7 percentage points. Despite satisfactory corporate performance last year, Buffett acknowledges a personal mistake in managing Berkshire's equity portfolio and outlines efforts to correct it. He emphasizes that he and Charlie Munger will ensure shareholders' economic results parallel their own, without taking superior compensation. Buffett criticizes the unethical behavior of some corporate leaders who profit while shareholders suffer, using Enron as an example.