Every year, in the Annual Report of Berkshire Hathaway, there’s a section called “Chairman’s Letter” and it’s penned by Warren Buffett himself. It’s a letter for his shareholders and it reveals Warren’s latest thoughts, investment ideas and theories.
I knew about these letters some time back but never really paid attention to them until recently. Three weeks ago, I read a wonderful book called “The Essays of Warren Buffett: Lessons for Corporate America”. The book contains the letters to shareholders from the various years and they are categorized according to different topics for easy read. After reading that book, I realised that I could learn so much from reading the letters alone than reading any other book out there. Most of the books out there on value investing and Warren Buffett are a spin-off off his thoughts revealed in the letters. So, I went to download the letters from the Berkshire Hathaway website, printed them out and got them binded and am reading them now slowly.
The latest 2010 letter was just released yesterday. Catch hold of the letter at http://www.berkshirehathaway.com/letters/2010ltr.pdf now. If you don’t have time to read the whole letter, do read pages 22 and 23. That section is very helpful for our personal finance and also for our investments.