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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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    I recently watched a move and two British TV mini-series that were just terrific.

    The movie is News of the World. It’s a Western set in 1870, starring Tom Hanks as Captain Jefferson Kyle Kidd, a former Confederate officer who makes a living traveling from town to town in Texas and reading newspapers to local residents for an admission fee of ten cents.

    After departing Wichita Falls, Kidd comes across an overturned wagon on the road and finds the driver, a black freedman, had been lynched. He also finds the stray, young white girl who only speaks Kiowa (the language of an American Indian tribe), that the freedman has been transporting.

    Kidd learns from the girl’s paperwork that she is Johanna Leonberger, who had been kidnapped and by Kiowa six years earlier. She doesn’t speak English. Doesn’t want to go with Kidd. But Kidd is tasked with getting her to safety. Of course there are all sorts of perils and issues along the way that threaten that goal.

    There’s suspense, action, drama, bad guys, and some poignant moments that will move your heart strings. If you like westerns or Tom Hanks, I think you’ll love this movie. It’s the best western I’ve seen in a long time.

    ***

    Those of you enjoyed Downton Abbey will be very happy to hear that Julian Fellowes, who was the executive producer for that series and wrote many of the episodes, is back and has written two more historical dramas with that same type of feel.

    The first is Dr. Thorne,a three-episode miniseries based on the novel by Anthony Trollope.

    It’s set in the late 1800s. Mary Thorne and Frank Gresham, the only son and heir of the squire of Greshamsbury, fall in love. However, Frank’s parents want him to marry wealth because they have very little to leave their son. Mary is penniless and of suspicious birth. She’s not anything at all that would help Frank in the world. And so the drama begins. You get to enjoy the historical setting, the manners, and romantic suspense.

    The second is Belgravia, a six-episode miniseries set in the 1800s and based on the novel by Julian Fellowes himself.

    For you geography buffs, Belgravia is an actual place, an affluent district of London. And the story set there is about two couples. The first, the Richmonds, are part of the aristocracy. The other, the Trenchards, are from the business class.

    The Richmond’s had one child, a son. The Trenchards had one child, a daughter. The two fell in love. But the son was killed in the battle of Waterloo. And the daughter died in childbirth. However, it was an illegitimate childbirth that the Richmonds don’t know about. The Trenchards thought it best, to retain the reputation of their daughter, to have someone else raise him.

    Twenty-five years later, however, both couples still feel the hole those deaths left in their hearts. Mrs. Trenchard feels it’s time to reveal the truth to the Mrs. Richmond. But it does not go as planned. Especially not when the Richmond’s nephew wants the Richmond’s inheritance and is willing to remove all obstacles in his path.

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  • No. I’m Fine by Howard and Sandra Tayler

    Robison_Wells____Green_Hills_Photography_0-201x300Sometimes it’s the small things that make the most difference.

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    HowardTayler2So what happened next? Well, nothing. We had a great retreat and went home. But the story doesn’t end there. See, if an issue is taboo, it becomes very difficult to deal with it. As an individual, a couple, a family, a community. In fact, hiding something like this only creates more problems. For example, if Robison ever says he’s going out to pick up some hammers, we  now know that we probably ought to have someone go with him (grin). So Robison not only wanted to educate us, he also wanted to help bring mental illness out of the dark. And he’s talked about this issue in a number of different places.

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    Go read “No. I’m Fine” and “Married to Depression”. You’ll be glad you did.

    While we’re talking about this, those of you who have been following this blog know that I’ve had a few dust-ups with depression myself. I wrote about it and the tools I used to deal with it then and when it tries to come back to town. After reading the Tayler’s stuff, you’ll want to look at it as well.

    Edit 9/14: Addeded links to “Married to Depression”

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    The Myth of Being More Productive by Multitasking

    One of my personal flaws is my monkey fascination. I am interested in too many things. For example, when I was at the university I wanted to major in English, History, Dutch, Art, and graduate with Honors.

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    All this did was stress my marriage to the point that my wife was considering giving me the pink slip. Of course, being so involved in so many projects I had no idea I was in danger of being layed off.

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    In business, I’ve watched some friends focus, focus, focus. They’ve put in their time and have become very successful at what they do. They’ve worked hard. . . at one thing. On the other hand, you have those of us who haven’t yet been able to give up that danged monkey brain. (Although I will give myself credit–for the last five years I’ve been trying to reduce. Trying to focus. I’m failing spectacularly. But I figure sooner or later my efforts will pay off.)

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    Maybe less really is more.

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