(berkshirehathaway.com)
To read the annual letter go here.
Sunday, February 28, 2010
Warren Buffett: "When It's Raining Gold, Reach For a Bucket"
(CNBC.com) Warren Buffett has a new nugget of pithy advice for investors in his new letter to Berkshire shareholders: "When it's raining gold, reach for a bucket, not a thimble."
Buffett recalls that last year's letter called corporate and municipal bonds "ridiculously cheap" compared to U.S. Treasuries. And we says Berkshire did "back" that view by making some purchases, but "I should have done far more. Big opportunities come infrequently."
Read the entire article
Buffett recalls that last year's letter called corporate and municipal bonds "ridiculously cheap" compared to U.S. Treasuries. And we says Berkshire did "back" that view by making some purchases, but "I should have done far more. Big opportunities come infrequently."
Read the entire article
Grantham’s ‘Horrifically Early’ Calls Challenge GMO
(Bloomberg) Jeremy Grantham warned in January 2000 that U.S. equities were “more overpriced than at any time in the last 70 years due to the massive overpricing of technology and especially dot-com stocks.”
By the end of 2002, the Standard & Poor’s 500 Index had fallen 40 percent and technology shares were down 73 percent. The forecast didn’t help his firm, Grantham Mayo Van Otterloo Co., because he’d been bearish since 1997. Assets declined 45 percent in the late 1990s as customers sought out better- performing mutual funds that liked the technology stocks Grantham disdained
Read the entire article
By the end of 2002, the Standard & Poor’s 500 Index had fallen 40 percent and technology shares were down 73 percent. The forecast didn’t help his firm, Grantham Mayo Van Otterloo Co., because he’d been bearish since 1997. Assets declined 45 percent in the late 1990s as customers sought out better- performing mutual funds that liked the technology stocks Grantham disdained
Read the entire article
Sunday, February 21, 2010
A Parable by Charles Munger
(slate.com) In the early 1700s, Europeans discovered in the Pacific Ocean a large, unpopulated island with a temperate climate, rich in all nature's bounty except coal, oil, and natural gas. Reflecting its lack of civilization, they named this island "Basicland."
The Europeans rapidly repopulated Basicland, creating a new nation. They installed a system of government like that of the early United States. There was much encouragement of trade, and no internal tariff or other impediment to such trade. Property rights were greatly respected and strongly enforced. The banking system was simple. It adapted to a national ethos that sought to provide a sound currency, efficient trade, and ample loans for credit-worthy businesses while strongly discouraging loans to the incompetent or for ordinary daily purchases.
Read Munger's entire piece here
The Europeans rapidly repopulated Basicland, creating a new nation. They installed a system of government like that of the early United States. There was much encouragement of trade, and no internal tariff or other impediment to such trade. Property rights were greatly respected and strongly enforced. The banking system was simple. It adapted to a national ethos that sought to provide a sound currency, efficient trade, and ample loans for credit-worthy businesses while strongly discouraging loans to the incompetent or for ordinary daily purchases.
Read Munger's entire piece here
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