Some Recurring Themes of Berkshire Hathaway Inc. (BRK.A) Chairman Warren Buffett’s Newsletters

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Berkshire Hathaway Inc. (NYSE:BRK.A) chairman and billionaire, Warren Buffett, has always been keen on spreading his perception and knowledge beyond the Wall Street. It was clear that he loved audience that he was always charming and with wit whenever he expressed his perception either on the market or about the company’s performance. In the past several decades, he has kept the investors in the loop with his annual letters to their shareholders. The next one will become due on Saturday based on the experience. There are already expectations that it would include some colorful analogies, as well as, some references to day-to-day topics.

Repeated Mention Of Bugs

The past year suggested that Berkshire Hathaway Inc. (NYSE:BRK.A)’s Chairman repeatedly talked about business to make a point on the nasty surprises companies can face even while others were hiding it. He wrote last year that bad news surfaces serially and frequently as far as the business world was concerned, likening it to a cockroach in a kitchen and his relatives creeping up as the days go by. There are also some other recurring themes that he was unable to avoid in the past. For instance, in 2011, he ventured to offer a fresh take, i.e. on Aesop’s sayings. Buffett had to revisit the ‘bird in the hand’ phrase while explaining the frustration in respect of the long waiting period for higher interest rates.

Buffett might have preferred to discover a fresh option to invest cash. He wrote saying that the day was far off and that it might come any time for him and went on to update Aesop saying that a girl in a convertible was valued five in the phone book. He also spoke about market bubbles and indicated that the risky decision could sometimes avoid market uncertainty thought not forever. In 2008, at the height of financial crisis, he wrote that a big amount of financial folly was exposed as house prices started falling. On top of that, he said that investors could see who was swimming naked when the  tide went out and that being a witness to some of the big financial institution was an ugly sight to watch.

Highlight His Favorite Businesses

Berkshire Hathaway Inc. (NYSE:BRK.A)’s Chairman always takes the opportunity of highlight some of his favorite businesss through the letters. That included luxury-aircraft firm, NetJets, as well as, See’s Candies, the makers of lollipops. During the annual meeting of the company, it would be a sure bet that there would be a shout-out to car insurer Geico apart from the instructions for its investors to take policies.

Berkshire Hathaway Inc. (NYSE:BRK.A)’s Buffett also pointed out the growth side of See’s in 2008 by referring the Bible. He said that the command of the Bible is to be fruitful, as well as, multiply was the one phrase that it takes seriously in Berkshire.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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