Berkshire Hathaway (BRK-A) indicated Monday that it plans to release its 2008 shareholder letter this Saturday. This has undoubtedly been a year where a lot has happened at Berkshire—and in the economy—and many investors will likely be anxious to hear Chairman Warren Buffett’s thoughts on a number of topics.
Buffett has already indicated his view on some issues this year, from his Op-Ed piece in the New York Times last fall, to the myriad of appearances he has made on various television shows over the last few months. What I’ll be looking to learn more about, though, in this year’s shareholder’s letter, is more details—or perspectives—on some of the new investments Berkshire made during 2008. In my mind, at least, this has truly been a watershed year, as the current market panic has offered Berkshire—and other long-term investors—the opportunity to plant several investment seeds for the future, at varying depths. In fact, Berkshire has been able to put more capital to work in one year, than I would have thought it would have been able to do over the next few years, and as a result, Buffett has probably been able to move the needle on Berkshire’s long-term valuation. I’ll also be looking to learn more about Berkshire’s derivative positions, as they have caused a lot of uncertainty over the last few months, and have also likely impacted the share price to some extent. While Berkshire received cash up-front in its derivatives positions--which eliminates the conglomerate’s counterparty risk--the general fear of derivatives these days has certainly affected some investors’ perception of Berkshire. As such, I’ll be hoping to learn a little more about the details of some of these positions. And finally, I always pay attention to any general market or economic commentaries from Berkshire, as historically these observations have tended to be very prescient.
Please be sure to check back this weekend for my analysis of Berkshire’s earnings, as well as my commentary on any investing nuggets included in the 2008 shareholder letter. You might also be interested to know, that this article was mentioned in a recent Associated Press article, which I have linked here.
Justin
The content contained in this blog represents the opinions of Mr. Fuller. This commentary in no way constitutes investment advice. It should never be relied on in making an investment decision, ever. Nor are these comments meant to be a solicitation of business. This content is intended solely for the entertainment of the reader, and the author.
