Warren Buffet's 2010 Letter

Hmm...

I guess I'm not the market.

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

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.

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.

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

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.

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??

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)....

Fun read Rick, thanks for posting it.

--- Ross

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.

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?

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

He's a rent seeking scumbag.

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.

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.

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

[related link]

http://www.warriorforum.com/main-int...men-world.html

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

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..