Assorted Links
2. The Master of money or what makes Warren Buffet tick
3. Popularity ≠ Importance on the web (who would have guessed)
4. The flying spaghetti monster is in control
Buffett Letter to Shareholders
Warren Buffett is probably the greatest investor alive. He is CEO and chairman of Berkshire Hathaway. His annual letter to shareholders is here. Even if you are not into investments you will find it amusing.
As the year progressed, a series of life-threatening problems within many of the world’s great financial institutions was unveiled. This led to a dysfunctional credit market that in important respects soon turned non-functional. The watchword throughout the country became the creed I saw on restaurant walls when I was young: “In God we trust; all others pay cash.”
…
As predicted in last year’s report, the exceptional underwriting profits that our insurance businesses realized in 2007 were not repeated in 2008. Nevertheless, the insurance group delivered an underwriting gain for the sixth consecutive year. This means that our $58.5 billion of insurance “float” – money that doesn’t belong to us but that we hold and invest for our own benefit – cost us less than zero. In fact, we were paid $2.8 billion to hold our float during 2008. Charlie and I find this enjoyable.
Over the last 44 years with Buffett at the helm, Bershire’s per-share book value has increased from $19 in 1965 to more than $73,000 as of today. He is the real superman.
Warren Buffett Writes:
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
in an op-ed piece for the New York Times.
