Nuggets from Buffett


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!

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3 Responses to Nuggets from Buffett

  1. Tom McCallum says:

    Scott, as you know I’m a fellow disciple too.

    Quick thought. Those who click through on the link to the site for the first time will be stunned at the massive budget shelled out on the website for Berkshire Hathaway, one of the largest market cap companies out there.

    Saracasm aside now, it is a great illustration of the fact that content trumps creative in the new world of online engagement.

    Don’t ask me (yet) how they can monetise it, but there WILL be a place in this Brave New World for quality journalists and other writers !

  2. […] for reminding me recently of the influence Buffett’s teachings can have in his most recent blog. Scott, I totally agree when you say that Buffett’s annual letter is “required reading […]

  3. Yosof Ewing says:

    Hi Scott

    Looking over your Blog the name Buffet leapt up at me. Having just recently finished reading The Snowball I went straight there, I have to thank you for reminding me that this was not a work of fiction and to that end I, for the first time downloaded “The Letter”. Awe inspiring doesn’t quite cover it, the guy is simply a legend.

    Best part about Mr Buffet for me, other than his talent at increasing share value, is his unstinting adhesion to his core principles, that to me is worth more than all the dollars in the Federal reserve.

    Favourite quote from the book and one I use in decision making processes often – “….[are] you an innovator, an imitator or one of the incompetent masses?” That pretty much sums up every human on the planet!!

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