Thursday, April 27, 2006
A Buffett of Sound Financial Advice
Perhaps the finest stock picker and financial wizard in the land is a modest, unassuming elderly fellow from Omaha, Nebraska. Chaos is speaking, of course, of Warren Buffett, the "Oracle of Omaha." His longterm record with the company he owns, BerkshireHathaway, is far and away superior than any that come to mind. Buffett is a value investor, buying companies that are fundamentally sound, undervalued, and holding them for decades. The antithesis of most financial advisors today, his every utterance is scrutinized with the same attention one usually finds lavished on the chairman of the Federal Reserve. Where that gentleman is paid to obscure, however, Buffett delights in plain speaking. This extended windup is to introduce Chaos' faithful readers to Buffett's annual report, wherein he recaps the previous year's results and offers a few cogent insights. Here it is: those not actually holding the shares (at $19,000 per share, Chaos didn't think anyone here had some...) may want to scroll down to around page 17 to get Buffett's take on the US current account deficit. Think it's a coincidence Buffett has invested in euros and a large amount of silver? Chaos believes that the US dollar will soon be exposed to entropy; overseas investments are strongly recommended.