The Virtue of “Pessimism” for Investors
I have always believed that investors with an overly optimistic view of the world have an inherent disadvantage and can be predisposed to overpay for securities. While I do not advocate being a pessimist in general, there are advantages that ...
Unwinding AIG’s Derivatives Exposure
I found a recent article by Carol Loomis regarding AIG's continuing troubles to be quite interesting. As most Berkshire Hathaway shareholders know, Carol Loomis is a longtime friend of Warren Buffett and also edits his annual letter each year. Read ...
Berkshire’s Q1 2009 Foreign Equity Performance
Earlier this week, I wrote about Berkshire Hathaway's equity portfolio results for Q1 2009. I based this analysis on the positions listed in the Form 13F report that institutional investment managers must file with the SEC each quarter. Form 13F ...
G-20 on Protectionism: Cause for Optimism
Leaders of the Group of 20 nations released a communiqué today outlining a number of measures intended to help the global economy recover from the current worldwide recession. While the details of the massive $1 trillion commitment quadrupling the capacity ...
Charlie Munger’s 2008 Letter to Wesco Shareholders
Charlie Munger's annual letter to shareholders of Wesco Financial Corporation was published on March 27. Wesco Financial is a publicly traded company that is 80 percent owned by Berkshire Hathaway. Charlie Munger is Berkshire Hathaway's longtime Vice Chairman and also ...