My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

Warren Buffett's 2009 Annual Letters to Berkshire Shareholders

Contributed by mm | March 7, 2010 9:28 PM PST

6401-buffett.jpgThe Oracle's Annual Letter to Berkshire Shareholders is always a good read. Finally, I found some time during the weekend to go over the letter and the 2009 annual report. Owning 600 Class-B shares, I'm of course happy with the stock's performance and especially recent stock price spike. I've been owning Berkshire since 2005, and I am sure I will be happy shareholders for many more years.

Predictably, the annual letter started with the Berkshire Hathaway book value change with comparison to S&P 500 index, and certainly, the Oracle is taking pride in BRK's consistently market-beating performance:

"[W]e have never had any five-year period beginning with 1965-69 and ending with 2005-09 – and there have been 41 of these – during which our gain in book value did not exceed the S&P’s gain."

This time, thanks to the recent BNSF acquisition, Buffett went to length to re-introduce each of Berkshire's business segments. If you are a new shareholder, you might want to read the Owner's Manual as well.

The annual letter has been put under microscope by all financial journalists in the last weeks or so, so more repetition won't add much value. I will just quote some interesting paragraphs:

Buffett Admitting His Mistake in the Rare Occasions of Micro-Managing at Berkshire:

---

For many years I had struggled to think of side products that we could offer our millions of loyal GEICO customers. Unfortunately, I finally succeeded, coming up with a brilliant insight that we should market our own credit card. I reasoned that GEICO policyholders were likely to be good credit risks and, assuming we offered an attractive card, would likely favor us with their business. We got business all right – but of the wrong type.

...

Our pre-tax losses from credit-card operations came to about $6.3 million before I finally woke up. We then sold our $98 million portfolio of troubled receivables for 55¢ on the dollar, losing an additional $44 million.


---

On Betting Big When Big Opportunities Show Up

---

We told you last year that very unusual conditions then existed in the corporate and municipal bond markets and that these securities were ridiculously cheap relative to U.S. Treasuries. We backed this view with some purchases, but I should have done far more. Big opportunities come infrequently. When it's raining gold, reach for a bucket, not a thimble.

---

On the Housing Bubble and Aftermath

---

People thought it was good news a few years back when housing starts – the supply side of the picture – were running about two million annually. But household formations – the demand side – only amounted to about 1.2 million. After a few years of such imbalances, the country unsurprisingly ended up with far too many houses.

There were three ways to cure this overhang: (1) blow up a lot of houses, a tactic similar to the destruction of autos that occurred with the "cash-for-clunkers" program; (2) speed up household formations by, say, encouraging teenagers to cohabitate, a program not likely to suffer from a lack of volunteers or; (3) reduce new housing starts to a number far below the rate of household formations.

Our country has wisely selected the third option, which means that within a year or so residential housing problems should largely be behind us, the exceptions being only high-value houses and those in certain localities where overbuilding was particularly egregious. Prices will remain far below "bubble" levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means because the bubble burst.

---


On the Painful Decision to Close the BNSF Deal with Some Berkshire Stocks

---

In evaluating a stock-for-stock offer, shareholders of the target company quite understandably focus on the market price of the acquirer's shares that are to be given them. But they also expect the transaction to deliver them the intrinsic value of their own shares – the ones they are giving up. If shares of a prospective acquirer are selling below their intrinsic value, it's impossible for that buyer to make a sensible deal in an all-stock deal. You simply can't exchange an undervalued stock for a fully-valued one without hurting your shareholders.

...

In the end, Charlie and I decided that the disadvantage of paying 30% of the price through stock was offset by the opportunity the acquisition gave us to deploy $22 billion of cash in a business we understood and liked for the long term. It has the additional virtue of being run by Matt Rose, whom we trust and admire. We also like the prospect of investing additional billions over the years at reasonable rates of return. But the final decision was a close one. If we had needed to use more stock to make the acquisition, it would in fact have made no sense. We would have then been giving up more than we were getting.

...

When stock is the currency being contemplated in an acquisition and when directors are hearing from an advisor, it appears to me that there is only one way to get a rational and balanced discussion. Directors should hire a second advisor to make the case against the proposed acquisition, with its fee contingent on the deal not going through. Absent this drastic remedy, our recommendation in respect to the use of advisors remains: "Don't ask the barber whether you need a haircut."

This Post Has Received 59 Comments. Share Your Opinions Too.


RobertTog Commented on January 10, 2017

[url=http://cialis5mg.site/]cialis 5mg online[/url] [url=http://abilifyonline.club/]abilify[/url] [url=http://stromectolonline.click/]stromectol[/url] [url=http://inderal-la.cricket/]inderal[/url] [url=http://advairhfa.date/]advair[/url] [url=http://altace.us/]altace[/url]


MichaelNub Commented on January 28, 2017

wh0cd782972 [url=http://celebrex-200mg.gdn/]celebrex[/url] [url=http://propeciageneric.click/]cheap propecia no prescription[/url] [url=http://benicar-online.us/]benicar[/url] [url=http://metforminhydrochloride.site/]metformin[/url] [url=http://cialiscostperpill.site/]cialis order[/url] [url=http://retina.lol/]retin a[/url] [url=http://buystrattera.website/]strattera cost[/url] [url=http://cipro-500.us/]cipro 500[/url]


Bennyanymn Commented on February 6, 2017

wh0cd873068 [url=http://lisinopril5mg.us/]lisinopril 5 mg[/url] [url=http://buycitalopram-7.top/]citalopram hbr 10 mg for anxiety[/url] [url=http://levitra20mgprice.gdn/]levitra 20mg prices[/url] [url=http://anafranil-1.top/]anafranil[/url] [url=http://advairdiskus.club/]advair diskus[/url] [url=http://azithromycin-online.us/]buy azithromycin online[/url] [url=http://buystromectol.club/]buy stromectol[/url]


TracyNuami Commented on February 8, 2017

wh0cd564796 [url=http://indocin2017.us.com/]indocin tablets[/url] [url=http://amitriptyline365.us.com/]amitriptyline[/url] [url=http://inderal.us.com/]buy inderal[/url] [url=http://betnovate.us.com/]Betnovate[/url] [url=http://tenormin.org/]tenormin[/url] [url=http://buytenormin.us.com/]tenormin mastercard[/url] [url=http://buyretina.us.com/]BUY RETIN-A[/url] [url=http://flagyl.us.com/]flagyl w/o rx[/url] [url=http://toradol.us.com/]toradol[/url]


MichaelNub Commented on February 16, 2017

wh0cd863964 [url=http://anafranil.us.com/]anafranil[/url] [url=http://elimite.us.com/]elimite[/url]


KennethCed Commented on February 26, 2017

wh0cd61198 [url=http://lisinopril.us.com/]lisinopril online[/url] [url=http://albendazole2017.us.com/]ALBENDAZOLE ONLINE[/url] [url=http://desyrel.top/]explained here[/url] [url=http://lynoral.bid/]lynoral mail order[/url]


Bennyanymn Commented on February 27, 2017

wh0cd771120 [url=http://buy-inderal.com/]Buy Inderal[/url] [url=http://buybenicar.com/]Buy Benicar[/url] [url=http://celexa2016.us.com/]CELEXA[/url]


CharlesLiede Commented on March 19, 2017

wh0cd767276 [url=http://buyinderal2.top/]found it[/url] [url=http://prednisone2010.top/]sterapred[/url] [url=http://buyadalat6.us/]buy adalat[/url] [url=http://buyinderal2016.top/]inderal[/url]


Mb smown Commented on March 28, 2017

viagra y otros medicamentos similares
[url=http://buyviagraonlinenrx.com]buy viagra online[/url]
no prescription viagra
buy viagra


Jeofivy Commented on March 29, 2017


Jeofivy Commented on March 29, 2017


Jeofivy Commented on March 29, 2017


Jeofivy Commented on March 29, 2017


EugeneOrert Commented on April 1, 2017

wh0cd682898 [url=http://prozacnorx.us.com/]prozac tablets[/url] [url=http://propecianorx.us.com/]propecia no rx[/url] [url=http://sildenafilnorx.us.com/]citrate sildenafil[/url]


AaronSit Commented on April 1, 2017

wh0cd938634 [url=http://propecianorx.us.com/]order propecia online[/url] [url=http://viagrageneric.us.org/]viagra generic[/url]


CharlesLiede Commented on May 10, 2017

wh0cd856133 [url=http://onlinekamagra.us.com/]kamagra cost[/url] [url=http://buytamoxifen.us.org/]BUY TAMOXIFEN[/url] [url=http://onlinelisinopril.us.com/]url lisinopril hctz prescription[/url]


AaronSit Commented on May 28, 2017

wh0cd454076 [url=http://cheapviagra247.us.org/]Cheap Viagra[/url] [url=http://synthroid24.us.org/]synthroid[/url]


Bennyanymn Commented on May 30, 2017

wh0cd223076 [url=http://cephalexin24h.us.org/]cephalexin[/url] [url=http://prednisolone.us.com/]prednisolone with no rx[/url]


MichaelNub Commented on June 13, 2017

wh0cd810847 [url=http://buytenormin4.top/]tenormin[/url] [url=http://buyyasmin11.top/]buy yasmin online usa[/url] [url=http://buysildenafil20.top/]sildenafil[/url] [url=http://buytenormin9.top/]tenormin 50mg[/url] [url=http://buyprednisone2015.gdn/]prednisone[/url] [url=http://buymetformin-3.gdn/]buying metformin er[/url] [url=http://buyneurontin2011.top/]neurontin 400mg[/url]


TracyNuami Commented on June 17, 2017

wh0cd95796 [url=http://amitriptyline247.us.org/]amitriptyline without a prescription[/url] [url=http://gabapentin.us.com/]neurontin[/url]


KennethCed Commented on June 17, 2017

wh0cd213167 [url=http://buysynthroid10.top/]synthroid 137 mcg[/url] [url=http://buyprednisone20.top/]prednisone[/url] [url=http://lasix17.top/]lasix[/url] [url=http://buyrevia7.top/]revia[/url]


MichaelNub Commented on June 27, 2017

wh0cd100599 [url=http://propecia24.us.org/]finasteride[/url] [url=http://albuterol24.us.org/]albuterol[/url] [url=http://celexa247.us.org/]celexa[/url]


MelvinDonge Commented on August 20, 2017

e generic viagra 100mg box
every|[url=http://erectionpillsvcl.com/viagra-without-a-doctor-prescription]discount viagra online[/url]
dana adams viagra


Derekhef Commented on August 20, 2017

b super viagra became
hot|[url=http://viagraicn.com/viagra-bill]red viagra[/url]
where can i buy viagra


FrankieJaw Commented on August 21, 2017

y cialis online cannot [url=http://cialisyc.com]tadalafil online[/url] cialis


JuliusClema Commented on August 21, 2017

u levitra coupon arm [url=http://levitrayc.com]vardenafil[/url] levitra online
p modafinil called [url=http://modafinilyc.com]provigil[/url] provigil generic
u prednisone 5mg delight [url=http://prednisoneyc.com]prednisone 10mg[/url] prednisone online


AlfredCaf Commented on August 24, 2017

wh0cd633348 [url=http://motrin800.us.org/]purchase motrin online[/url] [url=http://tamoxifen247.us.com/]buy nolvadex[/url]


AlfredCaf Commented on August 29, 2017

wh0cd898616 [url=http://provera.mba/]provera[/url] [url=http://amitriptyline.zone/]elavil generic[/url]


JorgeGremn Commented on September 3, 2017

buy cialis viagra levitra
viagra without prescription
can get sample viagra
[url=http://bfviagrajlu.com/#]viagra without a doctor prescription[/url]
buying viagra over the counter at boots


Dennislaf Commented on September 4, 2017

cheap viagra sale
viagra without prescription
viagra 100 mg walgreens price
[url=http://bfviagrajlu.com/#]viagra without a doctor prescription[/url]
how good is generic viagra


Dennislaf Commented on September 4, 2017

cialis levitra viagra price comparison
viagra without doctor
singapore viagra price
[url=http://bfviagrajlu.com/#]viagra without a doctor prescription[/url]
mail order viagra legitimate


Richardfaw Commented on September 5, 2017

generic vs real viagra
viagra without a doctor prescription
cuanto tiempo dura el efecto del sildenafil 50 mg
[url=http://bfviagrajlu.com/#]viagra without prescription[/url]
generic viagra consumer reports


Richardfaw Commented on September 5, 2017

tomar viagra com energetico
viagra without a doctor prescription
sildenafil cheap online
[url=http://bfviagrajlu.com/#]viagra without a doctor prescription[/url]
viagra online pharmacy no prescription


KennethCed Commented on September 7, 2017

wh0cd2838733 [url=http://atenolol.systems/]tenormin no prescription[/url] [url=http://citalopramhbr.reisen/]citalopram hbr 20 mg[/url]


Derrickhot Commented on September 8, 2017

drug & alcohol treatment
alcohol rehab facilities
how long does it take to become addicted to heroin
[url=http://drugrehabtrustedclinic.com/]alcohol rehab facilities[/url]
oxycodone dependency


Ronaldknodo Commented on September 8, 2017

crystal meth addiction
alcohol rehab facilities
acid drug effects on body
[url=http://drugrehabtrustedclinic.com/]alcohol rehab[/url]
someone on meth


Danielamupt Commented on September 12, 2017

viagra sale usa
viagra generic cheap
[url=http://hdviagramdt.com/]viagra generic 100mg[/url]
viagra pfizer buy


AaronSit Commented on September 14, 2017

[url=http://avodart.store/]avodart[/url] [url=http://levitrageneric.pro/]buy levitra vardenafil[/url]


Bennyanymn Commented on September 14, 2017

[url=http://cephalexin250mg.us.org/]buy cephalexin[/url] [url=http://doxycycline100mg.us.org/]buy doxycycline[/url]


Louistit Commented on September 15, 2017

generico do viagra dosagem
buy viagra online
[url=http://viagrajfeg.com/]viagra online pharmacy[/url]
where to buy viagra from
cialis online
[url=http://cialisdmge.com/]online cialis[/url]
cost cialis 5mg


Bennyanymn Commented on September 15, 2017

[url=http://cipro247.us.com/]cipro online[/url] [url=http://cialispills.us.org/]cialis price compare[/url]


Patrickagift Commented on September 15, 2017

cheap real cialis
buy viagra online
[url=http://viagrajfeg.com/]buy viagra[/url]
can i buy generic viagra
cialis buy
[url=http://cialisdmge.com/]buy cialis online[/url]
precios de cialis generico


CharlesLiede Commented on September 15, 2017

[url=http://levitraprice.pro/]levitra price[/url] [url=http://methotrexate.schule/]methotrexate[/url]


CarlosLes Commented on September 15, 2017

cialis generico alle erbe
buy viagra
[url=http://viagrajfeg.com/]viagra online pharmacy[/url]
buy viagra online now
cialis online pharmacy
[url=http://cialisdmge.com/]online cialis[/url]
viagra generico farmacia online


CharlesLiede Commented on September 16, 2017

[url=http://erythromycin500mg.us.org/]erythromycin[/url] [url=http://fluoxetine247.us.com/]buy Fluoxetine[/url]


RickyCiX Commented on September 16, 2017

can you buy viagra over the counter in europe
viagra 100
cheap bulk viagra
[url=http://gdoviagrakjyu.com/#]viagra 100[/url]
is it easy to get a viagra prescription


CharlesLiede Commented on September 16, 2017

[url=http://fluoxetine20mg.us.org/]purchase fluoxetine[/url] [url=http://doxycyclineprice.us.org/]buy doxycycline[/url] [url=http://colchicine247.us.com/]purchase colchicine[/url]


AlfredCaf Commented on September 16, 2017

[url=http://hydrochlorothiazide12.us.org/]hydrochlorothiazide[/url] [url=http://effexorxr.us.org/]Effexor[/url] [url=http://medrolpack.us.org/]buy medrol online[/url]


ClintonSoisa Commented on September 17, 2017

viagra generico contraindicaciones
viagra 100 mg
buying viagra in cuba
[url=http://gdoviagrakjyu.com/#]viagra 100[/url]
viagra where to buy in canada


AndrewRom Commented on September 17, 2017

cialis for sale online in canada
cialis canada
cialis c5 pill
[url=http://fgocialisgfeb.com/#]buy cialis[/url]
where to buy cialis online in uk


AshleyMoigh Commented on September 17, 2017

cutting cialis pills in half
cialis from canada
cialis buy online cheap
[url=http://fgocialisgfeb.com/#]cialis online canada pharmacy[/url]
cheapest generic cialis no prescription


Donnienurce Commented on September 17, 2017

cialis sale london
cialis online canada pharmacy
where can i order cialis
[url=http://fgocialisgfeb.com/#]cialis canada[/url]
cialis daily for sale


WilliamTuh Commented on September 19, 2017

canadian online pharmacies
Canadian Online Pharmacy
online pharmacies that do not require a prescription
[url=http://ehmcanadaufgpharmacypo.com/#]Canadian Drugs[/url]
reputable canadian online pharmacies


VetbFlandy Commented on September 20, 2017

ca payday loan laws - http://personalnerloan.org/ backers for payday loan opperations bad credit personal loan ’


Kennithmus Commented on September 20, 2017

how to order viagra pills
viagra no prescription
cheap viagra 150 mg
[url=http://dyviagrahwithoutbdoctorklprescription.com/#]viagra without doctor[/url]
generic viagra online forum


LmmnFreen Commented on September 20, 2017

get a payday loan - http://personalervxv.com/
fast payday loan online online personal loans ’


Felipeoccab Commented on September 21, 2017

prescription drug
canadian drugs
northwest pharmacy
[url=http://canadianpharmacyrxbsl.com/?duloxetine-side-effects]duloxetine side effects[/url]
canadian drugstore
viagra gГ©nГ©rique


Llkmemedy Commented on September 22, 2017

buy viagra in canada
viagra online
viagra substitute
viagra ’


Rolandfup Commented on September 23, 2017

cialis cheap canada
buy cialis online
buy viagra cialis online canada
[url=http://vgcialistylbuyjl.com/#]online cialis[/url]
cheapest cialis new zealand


Add Your Comments










Remember personal information?




(It will take a few moments for your comment to be published. Please do not close the window until then.)


Read More ... 312 Posts In The Same Category










This page was last rebuilt at September 23, 2017 01:52 AM PST. (932 Words)
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)