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Buffett’s Letter to Berkshire Hathaway Shareholders on 2008

I got my masters degree in accounting and information systems. While going to school I started an investment club and learned about a man named Warren Buffett.

Warren Buffett is humble, full of folksy humor, and trades places with Bill Gates as the richest man in the world, depending on the year you’re counting. His annual letters to his shareholders are a delight to read. This year’s is full of wisdom about the current financial crisis. Moreover, within a few minutes of reading you will be able to get some key insights that can help as you evaluate the plans being hatched in Washington and how to prevent this particular type of crisis from happening again. 

If you’re not that into finance, I recommend reading:

 

  1. The introduction starting on page 2 and ending on page 3
  2. The “Finance and Financial Products” section starting on page 10 and running through page 12

Once you’ve read those, if you want to laugh and see Buffet’s humor, skip to page 21 where Buffett talks about the annual meeting of shareholders. Tell me you wouldn’t want to attend.

The Berkshire Hathaway homepage

This year’s letter to shareholders (you will click on 2008 because he’s discussing the results of that year)

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  • Temple Grandin, Butternut Soup, & Five Guys

    Must-See Movie

    Time magazine has named her one of the 100 most influential people in the world. This summer, the National Cattlemen’s Beef Association’s honored her with the Lifetime Achievement Award. She serves as an animal-welfare consultant for international companies like McDonalds, Wendy’s International, and Burger King. Her work has transformed the design of cattle handling facilities worldwide. In fact, fifty percent of the cattle in the U.S. and Canada are handled in equipment she has designed for meat plants.

    She is one of the most fascinating people I have read or listened to. Her name is Temple Grandin. And she’s autistic. When she was four years old she couldn’t speak a word. The doctors, at the time, wanted her mother to commit her to an institution. But her mother wouldn’t accept that. Temple learned to read. She was tormented in junior high and high school. But she persevered, got into college, was almost expelled, and ultimately earned a PhD in animal science.

    Recently, HBO produced a film about her called Temple Grandin. It is one of the best films I have seen in the last five years. It’s full of drama, heartache, triumph, and good humor. When you’re done, Temple Grandin will likely become one of your heroes.

    Claire Danes does a fabulous job playing Temple. The movie also features Julie Ormond as Temple’s mother, Catherine O’Hara as her aunt, and David Strathairn as Dr. Carlock. Earlier this year, the film won seven Emmy Awards. But I didn’t need that to know how good it was. All I had to do was look at my wife and girls who sat rapt as the story unfolded. Get it on DVD. And if you want to know more about Grandin’s ideas, go to www.grandin.com.

    Squash Devils

    My wife was recently possessed by an evil squash spirit.

    How do I know this?

    Simple. Have any of you out there ever been sitting around and suddenly got a mighty hankering for pureed squash? Even when you were in the Gerber bottle stage?

    No, didn’t think so.

    So what else would explain her sudden need for a bowl of butternut bisque?

    Alas, I did recall once having a tasty pumpkin soup in a fancy restaurant in California, and so I didn’t immediately call the Brethren in for an exorcism. Instead I went to allrecipes.com and looked up a recipe for her.

    I found “Butternut Squash Soup II” by someone named Maplebird, which inspired tons of confidence since all the great chefs are named after tree-animal mixes.

    Then Nellie made the soup. I partook. And the evil spirit must have jumped into me because I’m telling you right now that I could not get enough of it. The mouth feel, the taste—the TASTE. There wasn’t a thing squashy about it.

    Folks, this is the real deal. And at least 494 other people out on allrecipes agree with me and have rated it an average of 4.5 starts out of 5.

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    • 1 medium carrot, chopped
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    • 1 medium butternut squash – peeled, seeded, and cubed
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    Melt the butter in a large pot, and cook the onion, celery, carrot, potatoes, and squash 5 minutes, or until lightly browned. Pour in enough of the chicken stock to cover vegetables. Bring to a boil. Reduce heat to low, cover pot, and simmer 40 minutes, or until all vegetables are tender.

    Transfer the soup to a blender, and blend until smooth. Return to pot, and mix in any remaining stock to attain desired consistency. Season with salt and pepper. Say a prayer and call for a priest or someone with the Melchizedek priesthood to be on hand just in case.

    Burger Salvation

    Okay, I know some of you are rolling your eyes. Squash? Have you got to be kidding?

    If that’s you, then let me recommend Five Guys burgers and fries. Burgers started to bore me years ago. But a buddy recently recommended Five Guys, and I’m so glad I went. They’re a national chain. In Utah, we have eight of their joints from Layton to Orem.

    They don’t offer salads or wraps or yogurt. They make four kinds of burgers, three kinds of dogs, and two kinds of fries. That’s it. You order the toppings you want–the regular things like grilled onion, cheese, and pickle, but you can also get grilled mushrooms, bacon, jalapenos, and BBQ sauce. More importantly, your burger is cooked fresh, right before your eyes. No microwaved unmeat retrieved from a mystery bin. It comes to you hot and juicy. The fries, cooked in 100% peanut oil, are served up sizzling. And there are a lot of them. I ate mine with a Cherry Coke.

    If you’re ever in the mood for burgers and fries, you’ve got to try Five Guys.

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  • Growing Your Own Replacement Parts

     

    This is simply incredible. Watch the video about Claudia Castillo growing a replacement to part of her windpipe with her own stem cells. She didn’t grow the complete tube, but nevertheless…

    Ms Castillo, who was born in Colombia, had suffered a tuberculosis infection that ravaged her airways, leaving her unable to do simple domestic tasks. Disease had caused her windpipe, or trachea, to collapse just at the point where it entered her lung. Without the pioneering operation in June, the lung would have been removed. Today she again has a normal life and is able to look after her two children. She can walk up stairs without getting breathless and has even been dancing.

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    And does this mean as we age, we’ll be able to swap out the old for new? How will that affect aging? This is simply incredible.

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    Superstars Writing Seminar DVDs

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  • Toy Story 3, How to Train Your Dragon, Rumbi Island Grill

    Toy Story 3

    It’s interesting that two of the most enjoyable films this year are both animated. The first is Toy Story 3. We all know how awful sequels can be, and, in fact, I didn’t like Toy Story 2 all that much. But Pixar defied the sequel slump with this one.

    Andy has grown up and is going to college. From a toy’s point of view, that’s tantamount to death because Andy has to clean out his room, and what is he going to do with all that junk anyway? The last few remaining toys barely miss the garbage truck and get sent, by accident, to the local day care instead. Sounds great for a toy, right? They’ll get played with every day forever. But things are not as they seem at the day care, and our crew of toys is put on the fast track to an early death. Will they be able to escape when the other toys there are ruled mob-style by a big pink teddy bear that smells of strawberries?

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    How to Train Your Dragon

    Dreamworks’ How to Train Your Dragon, based on the novel by Cressida Cowell, is the movie I should have seen for my birthday. Instead, we went to the mind-numbing Clash of Titans. I still cringe at some of the massive plot holes in that one, even though Medusa rocked. Which only proves, once again, that cool effects can’t save a bad story. How to Train Your Dragon, on the other hand, delivers cool monsters, but never once did the writers make the mistake of thinking that cool monsters is what the story was about.

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    Rumbi Island Grill

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    Orson Card’s Literary Boot Camp

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    Orson Card has just announced the dates and location for this year’s literary boot camp. This one is in North Carolina. Card usually usually holds a session in the west every other year. But here’s the deal: east or west, if you are a new writer, this is THE workshop to attend. It is hands-down THE best workshop I have ever attended.

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