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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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    Jolie, Salt, & trading suspsense for surprise

    Last week I went and saw Salt. Wow. The movie started with a bang and was off to the races with lots of great action. Unlike many action films where the characters perform stunts which are simply too hokey for me to buy into, I found myself believing in all but two of Salt’s. So I was wowed most of the time instead of thinking about whether they were using wires or what or that it was all so wrong and geeze don’t these guys have consultants? They weren’t as stunning as the opening of Casino Royale, but what is? 

    But it wasn’t just action. The premise and acting were all great as well (yes, I recant, I slammed Jolie a while back as an actress cast only for her face value; and while you know that’s one of the reasons why she was here, she still was convincing in her role). Furthermore, the story had a lot of great reversals and reveals. But this was also its ultimate downfall.

    When I got to the ending, I did not feel a climax release. No catharsis. No afterglow. It just ended and left me feeling empty. It’s an awful feeling. Totally unsatisfactory. Such a maddening cut off. 

    But why? It was all so good up to that point.

    *** SPOILERS ***

    As I was talking it over with Nellie I believe I indentified the answer: in their effort to be surprising, the director and writers removed everything that would have built suspense. So instead of getting a Sixth Sense ending where the surprise adds to the climax and gives it a wonderful texture, we got a slap of surpise and then nothing.

    For me to feel relief, triumph, and the desire to stand up and cheer–all those great climax emotions–I have to be worried about a character. Stressed, thinking they’re going to fail. They need to fight courageously against insurmountable odds and actually come to a point where it appears all is lost. Where I groan inside. All this creates massive pent up worry and anxiety for them. And at that point, the character snatches victory from the jaws of defeat.

    Boom! The climax floods me and it’s delight, relief, cheer, joy.

    It’s just like a football game where we bite our nails until the very end. Where our non-ranked team is playing the #3 team in the nation. Maybe we jump ahead in the second quarter, but in the third we fall behind. We make some great plays but can’t catch up. And when we do put points on the board, the other team immediately responds. There are three seconds left. We’ve stalled at the twenty yard line. We have one more play. From the moment it starts it appears to be broken, our QB is going down, and then . . . he passes to a running back who has made some space. Who is standing open in the end zone! Yeeeeeaaaaaaahhhhhh!

    In order to feel a release a climax, something has to build up. The thing that builds is worry, fret, desperate hope. This is what we mean when we talk about suspense. We know the team’s goal, see their predicament, see the overwhelming odds. See them about to lose it all. The dread of defeat and what will be lost rises.

    But in Salt the director and writers went for the effect of surprise instead of suspense and triumph. The moment Salt starts in on the Russian president I thought she was the bad guy. Yes, there was the bit about the spider that had me wondering. Yes, I knew she felt anguish about her husband being killed (that smart little reveal in her expression). I knew all of that. But the movie kept me busy thinking she was the bad guy up until almost the very end. Everything in the film lead me to believe this. Not because I didn’t get it. I got it precisely. It’s exactly what the director wanted. It was the setup for the big surprise/reversal at the end.

    But when they went for surprise by not letting the audience know what Salt was really up to, the immediately removed the possibility of suspense. So I didn’t feel any suspense at her infiltrating the old group of spies. No relief at her killing them–that was just her revenge. No suspsense when she went to the White House. Nothing when she chased the president down the elevator shaft. The whole time I was thinking, crap, they really did indoctrinate her. She’s bad.

    More importantly, there was no rooting, no worry building to release proportions.

    Not until the very end do we realize what she’s been trying to do. Oh, the role reversal with her and Ted Winter (btw, like Liev Schreiber who plays the part) was all a big surprise, as it was designed to be. But the surprise faded and there was . . . nothing to replace it. That’s how surprise works. It’s a relatively short effect. 

    Yes, she kills Winter. Yes, he was a threat at the end with his scissors, but I didn’t care that much. I hadn’t been whipped into a fever pitch. Not like I was in Gladiator with the emperor and the lead in the coliseum. There was no pressurized worry ready to burst. There wasn’t any because we hadn’t had any time for it to build and because by that time nothing for Salt was really at stake. The one meaningful thing she stood to loose–her relationship with her husband–was taken away from us in an earlier scene when he was shot dead. So what was at stake? A big old nuclear war. Well, who cares about that? Nobody. It’s too generalized. We cared about Salt and her husband.

    The result was that the director and writers traded climax for surprise. Alas.

    So here’s my conclusion. Surprise is a relatively easy effect to create. You simply have something unexpected but logical occur. Relief, triumph, climax needs something much different. And surprise can be a part of it. But in our effort to build surprise we must not remove the conditions necessary for please-dear-mother suspense. Suspense requires we root for and worry about a character for a significant period, our unease growing until it’s drawn taut, straining. All the time something significant has to be at stake. Something we can sympathize with. Something personal to the person we care about. Only then can we feel the climactic release. Only then will we stand up and cheer in holy-crap-no-way relief and delight.

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  • Suckling pig

    This from a gal I know who’s been touring Spain…

    I ate a quarter of a suckling pig today. I feel like a monster for eating such a young animal; a rotund, content, sleepily sluggish, well fed monster.

    If you’re going to kill an animal, kill it when it’s young. It so much more barbaric that way…

    And she sends along these pictures.

    Is that not the voice of a character speaking to you?

    Zing, Baby!

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  • Audio book is on the way

    This last week I listened to the reading of Bad Penny by Mikael Naramore on our trip down and back to Panguitch (and the forest fire from hell) and then later here at the house and was so happy I hooked up with Naramore. He’s done a wonderful job. He nailed the voices of Frank, Sam, Pinto, Carmen, Ed (ye slimy villain), and all the rest and delivered excellent sound. And the process was so easy.

    Right now ACX is doing its quality control on the production. When they clear it, it will be posted for sale on Audible, iTunes, and Amazon.

    I’m very excited to bring Frank to the audio market. I think he and Naramore are going to please a lot of listeners.

    Here’s the final cover for the audio book.

     

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  • Go Shoot Somebody, Feel like Captain Kirk

    Imagine running and dodging for thirty minutes through dimly lit corridors as kids with guns chase you down and shoot you with glee.

    That’s what happened to me recently.

    The kids were daughters 1, 2, and 3. On my team were dead-shot Nellie and daughter number 4. The dimly lit corridors were provided by the Cache Valley Fun Park. The guns were lasers.

    This was my first time playing laser tag, and I must report that we had an absolute blast. For twenty minutes we dodged and ran and shot with wild abandon. It’s like paintball without any of the pain, unless of course you crash into someone.

    Here’s how it works. You divide up into two, three, or four teams. The attendant gives each of you a vest and scans you onto the appropriate team (your laser has a bar code and is attached to the vest with a cord). There are markings on the front and back of each vest. If someone lasers those markings, you lose points. If you shoot someone else’s vest, you earn points. It’s that simple.

    All the teams go into the half-lit battle room–cut up with walls, corridors, and windows–and the game begins. You try to kill them. They try to kill you. You try to shoot their bases, but if you linger too long the bases shoot you. It quickly turns into chaos fun. You shoot someone only to have a daughter sneak up behind you and nail you in the back. You flee, waiting to regenerate, only to find that sneaking daughter has followed you through all the twists and curves and kills you the moment you come back to life. But the next time you escape, and you’re the one that’s got them running. It’s like a video game except better.

    The system automatically keeps score for each individual and each team so you can have a player on the losing team actually be the high scorer. We could have gone on for another hour.

    Of course, me and my exceedingly svelte figure might have had to take a breather. Or not. I don’t think twenty minutes of aerobics has ever passed so quickly. And I didn’t have to follow some gal in a pink leotard to do it.

    But you’re not there for the cardio-vascular benefit. Although I can see the ads now—the Laser Tag diet! Featuring Bob, a happy nerd who played laser tag for thirty minutes each day and lost 200 pounds. He could join up with Subway’s Jared so they could be geeky together. Hey, wait a minute. . . I’m smelling moo-lah!

    The only negative is that the game isn’t bargain basement cheap–$4/person for 10 minutes of play, $10/person for 30 minutes. So we might not do that every time we take the family to Logan for some fun, but you can bet we’ll be doing it again.

    Go shoot somebody. Feel like Captain Kirk. You’ll love it.

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