Thursday, February 25, 2010
Tuesday, February 16, 2010
Warren Buffett's Correspondence
Warren Buffett
Buffett wrote he "did some dumb things in investments" in 2008.
"Last year I made a major mistake of commission (and maybe more; this one sticks out). Without urging from Charlie or anyone else, I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. I in no way anticipated the dramatic fall in energy prices that occurred in the last half of the year.
"I still believe the odds are good that oil sells far higher in the future than the current $40-$50 price. But so far I have been dead wrong. Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars.
"I made some other already-recognizable errors as well. They were smaller, but unfortunately not that small. During 2008, I spent $244 million for shares of two Irish banks that appeared cheap to me. At year end we wrote these holdings down to market: $27 million, for an 89 percent loss. Since then, the two stocks have declined even further.
"The tennis crowd would call my mistakes 'unforced errors.'"
"On the plus side last year, we made purchases totaling $14.5 billion in fixed-income securities issued by Wrigley, Goldman Sachs and General Electric. We very much like these commitments, which carry high current yields that, in themselves, make the investments more than satisfactory. But in each of these three purchases, we also acquired a substantial equity participation as a bonus. To fund these large purchases, I had to sell portions of some holdings that I would have preferred to keep (primarily Johnson & Johnson, Procter & Gamble and ConocoPhillips). However, I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits."
Buffett wrote he "did some dumb things in investments" in 2008.
"Last year I made a major mistake of commission (and maybe more; this one sticks out). Without urging from Charlie or anyone else, I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. I in no way anticipated the dramatic fall in energy prices that occurred in the last half of the year.
"I still believe the odds are good that oil sells far higher in the future than the current $40-$50 price. But so far I have been dead wrong. Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars.
"I made some other already-recognizable errors as well. They were smaller, but unfortunately not that small. During 2008, I spent $244 million for shares of two Irish banks that appeared cheap to me. At year end we wrote these holdings down to market: $27 million, for an 89 percent loss. Since then, the two stocks have declined even further.
"The tennis crowd would call my mistakes 'unforced errors.'"
"On the plus side last year, we made purchases totaling $14.5 billion in fixed-income securities issued by Wrigley, Goldman Sachs and General Electric. We very much like these commitments, which carry high current yields that, in themselves, make the investments more than satisfactory. But in each of these three purchases, we also acquired a substantial equity participation as a bonus. To fund these large purchases, I had to sell portions of some holdings that I would have preferred to keep (primarily Johnson & Johnson, Procter & Gamble and ConocoPhillips). However, I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits."
Thursday, February 11, 2010
Electronic Communication
http://wps.prenhall.com/chet_gerson_workwriting_1/106/27328/6996017.cw/index.html
http://wps.prenhall.com/chet_gerson_workwriting_1/106/27328/6996016.cw/index.html
After you have reviewed the netiquette policies in these other companies, develop a guide for using e-mail effectively and efficiently. Follow the instructions below and select any three topics to research on. Develop at least five-seven sentences as guidelines on each topic. Post on your blog:
http://wps.prenhall.com/chet_gerson_workwriting_1/106/27328/6996020.cw/index.html
http://wps.prenhall.com/chet_gerson_workwriting_1/106/27328/6996016.cw/index.html
After you have reviewed the netiquette policies in these other companies, develop a guide for using e-mail effectively and efficiently. Follow the instructions below and select any three topics to research on. Develop at least five-seven sentences as guidelines on each topic. Post on your blog:
http://wps.prenhall.com/chet_gerson_workwriting_1/106/27328/6996020.cw/index.html
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