This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buffett Speaks: Highlights From His Annual Letter

OMAHA, Neb. -- Investors eagerly await Warren Buffett's letter to Berkshire Hathaway (BRK.A - Get Report) (BRK.B - Get Report) shareholders each year for its plain-spoken insight into the billionaire's financial strategy and economic predictions.

Buffett had plenty of good news to discuss Saturday, March 1, as he recounted the performance of his Omaha, Neb., based company with humor and wit. He also dispensed some investing advice.

Here's some of what Buffett had to say:

___

Swing Both Ways When It Comes to Investing

Buffett said Berkshire likes to buy businesses outright, but also will invest large sums in stock or partial ownership of a company to increase its profit opportunities.

"Woody Allen stated the general idea when he said: 'The advantage of being bisexual is that it doubles your chances for a date on Saturday night.' Similarly, our appetite for either operating businesses or passive investments doubles our chances of finding sensible uses for our endless gusher of cash."

___

Know Your Limitations

"You don't need to be an expert in order to achieve satisfactory investment returns. But if you aren't, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don't swing for the fences. When promised quick profits, respond with a quick 'no.'"

For investors who don't have the skills or time to estimate the value of investments, Buffett recommends making regular purchases of a low-cost stock index fund and resisting the urge to actively trade.

"So ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm."

___

Longevity

The 83-year-old Buffett devoted a section of his letter to praising Rose Blumkin and her Nebraska Furniture Mart home furnishings store, which Berkshire bought in 1983.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BRK.A $212,585.00 -0.89%
BRK.B $141.09 -0.70%
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs