Photo credit: bunnicula
It’s that time of year, when Warren Buffett publishes his annual letter to shareholders of Berkshire Hathaway. It’s required reading for anyone operating, or interested in business.
Amongst this year’s gems include:
“Are we supposed to applaud because the dog that fouls our lawn is a Chihuahua rather than a Saint Bernard?”
If you want to find out what he’s talking about download the shareholder letter on trhe Berkshire Hathaway website for free.
More seriously, on the opportunities that have presented themselves since the credit crunch, this stood out:
“We’ve put a lot of money to work during the chaos of the last two years. It’s been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance. In the end, what counts in investing is what you pay for a business – through the purchase of a small piece of it in the stock market – and what that business earns in the succeeding decade or two.”
Since I became a Berkshire shareholder I’ve travelled to Omaha twice and met Buffett himself, and last year even had a brief chat with Bill Gates, a long time friend, and board colleague of Buffett.
A hat tip to Richard Emanuel who first made me aware of Buffet’s annual letter, for which I will be forever in his debt!