Monday, March 2, 2009

A little light reading, especially for young people

It's hard to believe that I've never before read the entirety of one of Warren Buffet's letters to shareholders in Berkshire Hathaway even though I've often read praise of them. Having read his 2008 letter (just released with the annual report) I now know that the praise has been well deserved. If all business executives acted, talked and wrote as straight as Buffett the world would be a much better place. If any one politician ever did the same we would all have to pinch ourselves to be sure that we hadn't died and gone to heaven.

The 2008 letter to shareholders is complicated but by the time you're done he's explained a lot of things about markets and investing very clearly. As a bonus he does a great job of explaining derivatives and their risks. It's also worthwhile to click on the "owners manual" and read that.

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