Letter to Shareholders 2009

http://www.berkshirehathaway.com/letters/2008ltr.pdf

This year's letter (22 pages) from the chairman (Warren Buffett) is a better read than normal. Here are a few of my favourite sentences:

• 4 “We're certain, for example, that the economy will be in shambles throughout 2009 - and, for that matter, probably well beyond - but that conclusion does not tell us whether the stock market will rise or fall.”
• 5 “When investing, pessimism is your friend, euphoria the enemy.”
• 5 “We like buying underpriced securities . . .”
• 7 “we…hold the purchased companies through thick and thin (though we prefer thick and thicker)”
• Mr Buffett's brief comments on the new “leveraged-buyout operators” now re-labeled “private equity” were marvelous. 7

If you are into this type of reading, but do not have much time, be certain to read pages 15, 16 and 17 of this PDF file. It is loaded with a variety of most interesting comments are many topics. On page 16, for instance, this sentence.

• “Clinging to cash equivalents or long-term government bonds at present yields is almost certainly a terrible policy if continued for long.”
• Connolly Comment - Beware of people who claim to speak in Mr. Buffet's name. Read the words of 'The Charirman' himself. An exception would be Chapter 9 about Warren Buffet in Value Investing from Graham to Buffett and Beyond by Greenwald et all, 2001. This is my favourite value investing text, especially the chapter on Seth Klarman from page 231. I must get my book report on Value Investing from Graham to Buffett and Beyond posted sometime.