Warren Buffett’s Letter to Shareholders for 2007
Mar 3rd, 2008 by Martin Lee
Warren Buffett has just released his latest annual letter to his Berkshire shareholders a few days ago. While I haven’t read through the entire thing yet, a quick scan shows Warren critisising pension funds for their over-optimistic projections of their returns.
And get this, Warren Buffett thinks that the 8% assumed by the funds is not realistic. Since most pension funds have about a quarter of their assets in bonds or cash, they will need to generate probably 9-10% on their equity holdings to achieve the overall 8%. According to Buffett, the compounded return in the Dow in the 20th century is only about 5%.
You can download and read the entire letter here:
Warren Buffett Letter to Shareholders
I’ve read some of Buffetts Letters /Annual Shareholders meetings in the past as well. He usually leans on the conservative side to leave room for error laced with heavy honesty and a sense of humor. But he’s like the guy who drops off his shirt at the cleaners and has to go pick it up before they start because it turns out he left the winning lottery ticket in his pocket….again. He’s just a winner. He studied Benjamin Graham – which to many of us is like the parables in the bible – but Warren being the prophet of investing – always seems to see the light. He can be the Pastor of my Portfolio any day of the week – year or month – including Sundays…Amen.
Yes, Warren Buffett has a good sense of humour. You won’t see it elsewhere in the annual reports of other companies.