Before we get to the Weekend Reading list, I thought I’d share a few gems from Warren Buffett’s annual letter to Berkshire Hathaway shareholders.
On Berkshire’s track record…
It’s our job to increase intrinsic business value…at a faster rate than the market gains of the S&P. If we fail, however, our management will bring no value to our investors, who themselves can earn S&P returns by buying a low-cost index fund.
On looking for bargains…
Our total investment of about $12 billion soaks up much of what Berkshire earned last year. But we still have plenty of cash and are generating more at a good clip. So it’s back to work; Charlie and I have again donned our safari outfits and resumed our search for elephants.
As the consummate investor…
If you are a CEO who has some large, profitable project you are shelving because of short-term worries, call Berkshire. Let us unburden you.
Some of biggest Berkshire holdings…
- Wells Fargo & Co (over 450 million shares)
- Tesco PLC (over 415 million shares)
- Coca-Cola (400 million shares)
Although Buffett owns many dividend-paying companies, part of his reasoning why Berkshire does not pay a dividend…
The tax consequences for all taxpaying shareholders are inferior – usually far inferior – to those under the sell-off program. Under the dividend program, all of the cash received by shareholders each year is taxed whereas the sell-off program results in tax on only the gain portion of cash receipts.
On the biggest AGM in the world…May 4th, 2013 in Omaha, Nebraska…
If you are a big spender – or aspire to become one – visit Signature Aviation on the east side of the Omaha airport between noon and 5:00 p.m. on Saturday. There we will have a fleet of NetJets aircraft that will get your pulse racing. Come by bus; leave by private jet. Live a little.
With intelligence and wit that nobody can rival, I enjoyed reading Buffett’s latest letter to shareholders. If you have time this weekend, skim through it and check it out.
Next week, I have one final point of purchase code to giveaway for H&R Block Canada’s online tax program. Come back next week for that and some new blogposts.
Enjoy your weekend!
Boomer & Echo wrote about job security and preparing for the worst.
Young & Thrifty wondered if she had to choose between a career and having a family.
Million Dollar Journey disclosed the contents of his RRSP.
The Passive Income Earner reported some stellar dividend income in March.
My friends at Canadian Mortgage Trends shared some interesting nuggets from the latest quarterly reports by Canada’s Big 6 banks.
Big Cajun Man reminds us passive investing is not lazy investing.
Ha! Classic Buffett, “Come by bus; leave by private jet. Live a little.”
I remember a few years ago he wrote something like this: “Once you’ve flown private going back to commercial travel is like holding hands in kindergarten”
I loved that comment! Hope investing is going well. Stop by again soon.
He makes a good point. Some people don’t realize it but dividends have already been taxed once before shareholders can claim them. Then depending on the investor they may have to pay tax again on their dividend received lol. I’m thinking about buying some of BRK.B just so I can receive his letters to shareholders 🙂
It’s a great point for sure. Buffett talks a bunch more about dividends and why BRK doesn’t pay them in his shareholder letter. The interesting thing is, most of the companies he owns pay dividends and have done so for decades, another point he discusses in the letter. It’s a great read really.
Thanks for the kind mention!
As for Buffett, I agree with you that his wit and intelligence is unmatched by any. If his investing prowess wasn’t enough, he was also blessed with a wicked sense of humor.
Hope you have a good weekend! Keep up the great work.
Thanks for the inclusion, I am a recovering Active Investor (to quote Larry Swedroe).
I’m an addict of both investing strategies.
I think Buffett is having a tough time finding Elephants that are big enough to really move the needle.
Thanks for the mention!
I think so too, it might be some time before he finds what he is looking for.
I understand your reaction that the advisor who recommended leverage for a 75-year old widow should be fired, but I think there may be bigger fish. If this practice is widespread within IG because their representatives have been taught to promote leverage, then the blame goes much higher than a single advisor.
If this practice is widespread at IG, then there is a significant, corrupt culture-shift that has to change.
Ok Mark, I admit it, I have still not done my taxes. I was supposed to get them done this week but just haven’t gotten around to it. I think since it’s my first time doing it I keep putting it off. I can see why the convenience of handing it all over to a tax person works for most rather than learning how to do it on their own. Thanks for the mention. Do you garden at all? Have a great weekend Mark. Cheers
Me neither Mr. CBB. I am waiting on some blog income receipts to finalize my taxes. 🙂 Hopefully by end of the month!