Warren Buffett's Annual Letter To Shareholders

Berkshie Hathaway released Warren Buffett's Annual Letter to Shareholders today on their website. As always its a very good read for nearly any investor.

My Key Takeaways

  • Additional insight into BH culture. Warren clearly creates a special culture in Berkshire Hathaway and emphasizes its importance in the company's performance. From my perspective as a manager (and leader of a small team) in a very large business this is really powerful stuff. its refreshing to see.
  • Buffett hints at continued economic recovery? - The letter mentions a recovery in the housing market will begin in the next year or so and I got a sense of some confidence that more big acquisitions are on the way, etc. Personally I have been concerned about the rapid increase in valuation of the stock market and am not as confident as I was as to the future return.
  • Buffett shared some perspective on leverage and emergency funds. He included a family letter from his grandfather on the importance of an emergency fund. After reading I feel a bit more comfortable holding larger amounts of cash these days. I have been feeling a bit nervous and eager to put my increased cash reserves to work.
  • Buffett included a copy of a corporate memo to Berkshire business managers. I think the memo really underscores the culture at Berkshire and shows how Buffett sets the tone for the rest of Berkshire Hathway's companies.

Also Im expecting my 2nd favorite annual letter to shareholders from Prem Wasta, the CEO of Fairfax Financial to be published in the next week or two.

More posts on Buffet on 2millionblog.com

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Comments (5)

You seem to be an avid follower of Buffet's, but you have no money in BRK-B, any reason?

Sure - I don't think its cheap enough yet. I almost made an investment in BRK right before it entered the SP500, but I didn't get my act together in time.

Buffet's an enigma! When the rest of the world goes one direction he goes the other and proves them right!

It is good to know how positive he is about the US economy!

Always good to have a large emergency fund around when you work at IBM. Their large "resource actions" will continue indefinitely.

Cash reserves are always important, no matter how the global economy is going, b/c you never know when a personal crisis might arise.

I echo the sentiments of the previous commenter about having some sense of relief that Buffet believes we are truly recovering.

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,938,393


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