How has your investment paid off, Warren?
Oh, I see.
The man considered by many to be the greatest investor of all time just had his worst year ever.
Mr. Buffett, in his annual letter, read closely by shareholders and nonshareholders alike, reported Berkshire in 2008 lost 9.6% in book value per share, a common metric Berkshire uses to track performance. That marks the biggest decline since Mr. Buffett took over in 1965, when it was a family-run East Coast textile maker.
Mr. Buffett conceded he “did some dumb things.”
What about the future, Warren?
Unemployment rate in U.S. will go well above its current levels before the downturn ends.
Inflation has the “potential” to be worse than the 1970s.
How did this happen, Warren?
“In my view, it’s an economic war, and–I don’t think anybody on December 7th would have said a `war is a terrible thing to waste, and therefore we’re going to try and ram through a whole bunch of things and–but we expect to–expect the other party to unite behind us on the–on the big problem.’ It’s just a mistake, I think, when you’ve got one overriding objective, to try and muddle it up with a bunch of other things.”
This sounds dire, Warren. What are you doing to overcome “the dumb things” you did in 2008?
Oh, I see.