Warren Buffet's 2010 Letter

[RickDuris]

The URL below is Warren Buffet's most recent shareholder letter. Again, great reading. In it, he shares the story of the acquisition of GEICO.

http://www.rickduris.com/warrenbuffe...lderletter.pdf

- Rick Duris

[Rezbi]

Hmm...

I guess I'm not the market.

[Alex Cohen]

Originally Posted by RickDuris

The URL below is Warren Buffet's most recent shareholder letter. Again, great reading. In it, he shares the story of the acquisition of GEICO.

http://www.rickduris.com/warrenbuffe...lderletter.pdf

- Rick Duris

He starts off with a great contrast showing how dramatically Berkshire has out-performed the S&P 500 over the years.

(Contrast can be a powerful persuasion tactic.)

Alex

[ewenmack]

Interesting to see how Rezbi bypassed the persuasion element and Alex picked it up.

You certainly won't find it in his letter and other "unlikely" places if you aren't tuned into it.

Best,
Ewen

[Rezbi]

Originally Posted by ewenmack

Interesting to see how Rezbi bypassed the persuasion element and Alex picked it up.

You certainly won't find it in his letter and other "unlikely" places if you aren't tuned into it.

Best,
Ewen

Thing is, if you're not the market you won't even bother looking far enough to find the persuasion element.

I looked at the first page and left.

[ewenmack]

Originally Posted by Rezbi

Thing is, if you're not the market you won't even bother looking far enough to find the persuasion element.

I looked at the first page and left.

Mmm, thought this was a copywriting forum, where you get to see persuasion elements outside your market which can be transferred to yours.

Jay Abraham and Dan Kennedy do and teach it.

Not picking on you Rezbi, just saying.

Best,
Ewen

[Jesus Perez]

This was a great read, Rick. Thanks!

"Next time, Warren, please make an appointment" was classic.

The old letter from 1939 on page 23 is worth the read alone.

[MichaelHiles]

Warren's letters rock the house and I can't wait to get them every year. He clearly shows why he's a business titan, and can communicate with a candid style to wealthy investors just like he was talking straight to them over a drink at a cocktail party.

He does have some "persuasion elements" but moreso just because his likeable style is so candid. He's under a lot of SEC restrictions about what he can and can't say to shareholders. But anytime I've ever heard him speak in person, it's literally the same candor and style.

If anything, it's a lesson in just writing with your authentic voice.

[ewenmack]

Actually, his persuasion abilities are awesome, when you think he gets multi billions of investors money when his stock picks have been pitiful compared to mine over the last two years.

Best,
Ewen

[Rezbi]

Originally Posted by ewenmack

Mmm, thought this was a copywriting forum, where you get to see persuasion elements outside your market which can be transferred to yours.

Jay Abraham and Dan Kennedy do and teach it.

Not picking on you Rezbi, just saying.

Best,
Ewen

No probs.

I understand what you mean but, when you read as much as I do, listen to so many audios and watch so many vids, it gets a bit too much when the source is, to me, utterly mind numbing.

[AzzamS]

Although the letter was a bore to me, this guys power of persuasion is awesome

[Rezbi]

Obviously you guys recognise the points of persuasion. For those of us who are forced in to slumber before the first two lines, how about a quick - or even detailed - critique of the most powerfully persuasive arguments in this document.

Go on, give us lesser beings a lesson in copywriting.

[MikeHumphreys]

Originally Posted by ewenmack

Actually, his persuasion abilities are awesome, when you think he gets multi billions of investors money when his stock picks have been pitiful compared to mine over the last two years.

Best,
Ewen

Persuasion abilities don't really matter for Warren Buffett.

His track record is that he's the best long-term buy & hold stock picker over the last 30+ years... may be even ever. People who own shares of his Berkshire Hathaway aren't worried about the last 2 years performance b/c they're thrilled with the returns they've enjoyed for even longer.

[MikeHumphreys]

Originally Posted by Rezbi

No probs.

I understand what you mean but, when you read as much as I do, listen to so many audios and watch so many vids, it gets a bit too much when the source is, to me, utterly mind numbing.

I agree Rezbi.

If it's a topic that isn't much interest to you, then it's hard to stay interested in it long enough to read the whole letter.

It's one thing if you want to clinically dissect something as a copywriter to see what makes it tick.

But on a personal level, the persuasion tactics don't matter if the topic doesn't resonate with you.

[prophetmktg]

Originally Posted by RickDuris

The URL below is Warren Buffet's most recent shareholder letter. Again, great reading. In it, he shares the story of the acquisition of GEICO.

http://www.rickduris.com/warrenbuffe...lderletter.pdf

- Rick Duris

Yea there's a lot to learn from Mr. Buffet and Mr. Munger. They are true business geniuses. I was at the shareholder meeting for the last two years and it was a ton of fun! "The Woodstock Of Capitalism" as it's known.

Planning on heading back to Omaha again this year. Anyone else going??

[prophetmktg]

Charlie munger made an awesome quote (or rather restated a quote) about the only two things you need to know about a business are: 1.) marketing,
2.) how to find great people (they have incredible managers and run their entire multi-billion dollar business with only 12 people working in Omaha! Everything else is "outsourced" to their managers around the world) and
3.) how to determine the value of a business (in other words understanding value)....

[Ross Bowring]

Fun read Rick, thanks for posting it.

--- Ross

[Rezbi]

Originally Posted by Ross Bowring

Fun read Rick, thanks for posting it.

--- Ross

Fun!!?

What, are you on something!?

LSD, maybe?

Look, ma, I can fly... wheeeeeeee...

[ewenmack]

Originally Posted by Rezbi

Fun!!?

What, are you on something!?

LSD, maybe?

Look, ma, I can fly... wheeeeeeee...

Who would of thought it could be such a love hate relationship with the oracle!

Maybe we should call him the Lady Gaga of investing.

Best,
Ewen

[ARSuarez]

Originally Posted by ewenmack

Who would of thought it could be such a love hate relationship with the oracle!

Maybe we should call him the Lady Gaga of investing.

Best,
Ewen

You just wrote the title for his next biography:

"The Lady Gaga of Investing: Life and Times of Warren Buffett"

[Rezbi]

Originally Posted by ARSuarez

You just wrote the title for his next biography:

"The Lady Gaga of Investing: Life and Times of Warren Buffett"

Warren Buffet Goes Gaga Over Latest Shareholder Letter
Well, Someone Has To

[ewenmack]

Better scrub the whole Lady Gaga thing...there's question marks over "it's" sex.

Wouldn't want to imply that scenario on Mr Buffet.

Best,
Ewen

[RickDuris]

I did not post Buffet's letter with the intention of demonstrating his persuasion or copywriting abilities.

I posted because the last time I posted something similar, others appreciated, and b) it's a prime example of clear-headed business writing. When such topics can be awfully dry and impersonal.

Plus, coming from the wealthiest man in the US doesn't hurt either.

- Rick Duris

PS: Attention Parrot Heads: Did you know Warren is related to Jimmy Buffet? Yep! Look it up!

[Jag82]

Originally Posted by RickDuris

Plus, coming from the wealthiest man in the US doesn't hurt either.

And also the greatest and most influential investor of ALL time!

[ClassicContentSolutions]

One of the greatest things I love about Warren Buffett is his power of persuasion mixed with the fact that he's never "lost touch with reality". I had the pleasure of meeting him several years back, as an employee of GEICO. He came into our office wearing a Hawaiian shirt and handed out ice cream bars to each and every employee. We all agreed that he reminded us of someone's favorite uncle or grandpa, instead of one of the richest men in the world.

[Rezbi]

Originally Posted by ClassicContentSolutions

One of the greatest things I love about Warren Buffett is his power of persuasion mixed with the fact that he's never "lost touch with reality". I had the pleasure of meeting him several years back, as an employee of GEICO. He came into our office wearing a Hawaiian shirt and handed out ice cream bars to each and every employee. We all agreed that he reminded us of someone's favorite uncle or grandpa, instead of one of the richest men in the world.

All that cash and he gives you guys just one bar of ice cream?

Man... that's cheap.

[Rezbi]

Originally Posted by RickDuris

I did not post Buffet's letter with the intention of demonstrating his persuasion or copywriting abilities.

I posted because the last time I posted something similar, others appreciated, and b) it's a prime example of clear-headed business writing. When such topics can be awfully dry and impersonal.

Plus, coming from the wealthiest man in the US doesn't hurt either.

- Rick Duris

PS: Attention Parrot Heads: Did you know Warren is related to Jimmy Buffet? Yep! Look it up!

For my part, Rick, I was just messin' with everyone.

[RickDuris]

Originally Posted by Rezbi

For my part, Rick, I was just messin' with everyone.

YOU WILL PAY FOR THAT, REZBI!!!

Now you have give your dissection of the piece. *WE* want it on all our desktops by Friday. No excuses.

- Rick Duris

PS: Do what I ask, Rezbi--and it will change your life.

Let me share a personal story.

Almost 20 years ago, I went to a Jay Abraham & Tony Robbins event. As one of the exercises, Jay went out and bought over 700 different magazines at local newstands.

Attendees were encouraged to pick a magazine we were LEAST likely to read for nightly homework. To look for marketing strategies we could adapt and adopt in our own business.

(I picked a magazine on naval history, as I remember.)

Today, I go to a newsstand or library and read magazines I would never be interested in.

Today, I am challenging you.

Dissect Buffet's piece copywriting-wise--even though it's a yawn for you. Actually, it's perfect for you.

Then share your insights with the group.

I guarantee if you take the assignment seriously, you'll thank me later.

(And next time, you'll twice about messing with us. )

[yukon]

Warrens most impressive comment, talking about investing money from Geico policy holders (free money to invest).

Insurance float – money we temporarily hold in our insurance operations that does not belong to us – funds $66 billion of our investments.

[lometogo]

You know, Rick, I've heard about Buffet's annual letters to shareholders for years, but had never read one.

What a delight, in so many ways.

The main thing I come away with, however, is that this is one incredibly nice, kind, and giving man.

I wonder: does he personally write this letter?

[Daniel Harper]

Buffet has an amazing track record, but don't be fooled by the Cuddly 'Ol Uncle Warren routine.

He's a rent seeking scumbag.

[Rezbi]

Originally Posted by Daniel Harper

Buffet has an amazing track record, but don't be fooled by the Cuddly 'Ol Uncle Warren routine.

He's a rent seeking scumbag.

Aren't they all.

It's all a front with these guys. They like to give the impression they're angels, but really they're devils.

[lometogo]

Originally Posted by Rezbi

Aren't they all.

It's all a front with these guys. They like to give the impression they're angels, but really they're devils.

And who exactly are "these guys" you refer to?

I don't think WB gives the impression he's an angel but the tone of his letter indicates he has certain values which make him and his company a great place to work.

I sense, and have read in many other places, that he uses a "hands off, eyes on" management approach.

[Daniel Harper]

Buffet advocates for a reinstatement of the estate tax. Now why would he do that? Because he owns/has a stake in 6 insurance companies. And insurance companies make a ton of money from people who buy life insurance policies to get around that particular tax.

It also makes it easier for him to gobble up family owned businesses when the owner dies and his descendants can't afford the taxes on the estate, so they are forced to liquidate.

Buffet also lobbied for tougher rules on trading derivatives that would require financial traders to set aside money for potential losses. Then he turned around and sought an exemption for Berkshire Hathaway's own derivatives trading. Sen Ben Nelson of Nebraska complied and slipped the language into the bill.

Buffet is no capitalist. He's just another rent seeker, buying off politicians and manipulating the system to his advantage.

That said, I made a nice profit w/Berkshire Hathaway before selling about a year ago.

If you can't beat 'em, join 'em I guess.

[Daniel Harper]

I guess my point is, take everything Buffet says with a grain of salt. He may be trying to manipulate some aspect of the market in order to benefit himself.

All of these financial guys talk their book. They aren't offering you up disinterested observations. They have their own agendas.

[sun2son]

'Authentic Voice' - right on the mark.

That voice - seems to me -also includes empathy - which makes him 'relatable' to his audience.

s2s

[AdamWagner]

Thank you for sharing! Anything we can learn from Warren Buffet is a positive

[ewenmack]

Originally Posted by MikeHumphreys

His track record is that he's the best long-term buy & hold stock picker over the last 30+ years... may be even ever.

Not according to this article Mike How Donald G. Smith Outperforms Warren Buffett

Best,
Ewen

[John Breese]

I admire Buffett quite a bit, so I thought I'd contribute this video series to the conversation.

It's not about copy, but I'm sure a few here will enjoy it nonetheless:

YouTube - Warren Buffett MBA Talk - Part 1

[packerfan]

Originally Posted by John Breese

I admire Buffett quite a bit, so I thought I'd contribute this video series to the conversation.

It's not about copy, but I'm sure a few here will enjoy it nonetheless:

YouTube - Warren Buffett MBA Talk - Part 1

Just wanted to say thanks for posting. I watched all of this (9 or 10 parts) and there so much awesome information and wisdom.

[yukon]

[related link]

What you have in common with one of the richest men in the world!

[Don Halbert]

I'd seen those videos before but they are none the less classics.

[GlobalMedia]

Hi John Breese, Thanks for sharing this video with us. It's not only informative but also encouraging. Mr. Buffett have certainly moved the mass..