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Archive for August, 2007

US Subprime Mortgage Crisis

For the past few weeks, financial markets around the world have been rattled by the US subprime mortgage crisis triggered by the sharp fall in US housing prices. The collapse that Bear Stearns suffered might just be the tip of the iceberg. How and why has the effects spread so rapidly?

It’s actually a complex story involving subprime borrowers, Mortgage-Backed Securities (MBS), Collateralized Debt Obligations (CDOs), investment bankers, hedge funds, Credit Default Swap (CDS), Synthetic CDOs, institutional investors and even retail investors. Let’s try to look at the whole picture.

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Berkshire Contribution to the Treasury

Joke by Warren Buffett

Berkshire truly went all out for the Treasury last year. In connection with the General Re merger, we wrote a $30 million check to the government to pay an SEC fee tied to new shares created by the deal. We understand that this payment set an SEC record. Charlie and I are enormous admirers of what the Commission has accomplished for American investors. We would rather, however, have found another way to show our admiration.

Berkshire Annual Letter 1998 (Part 1)

Being owned by Berkshire can make the best of managers even more effective. All the ritualistic and non-productive activities like board meetings, press interviews, presentations by investment bankers or talks with financial analysts that go with the job of CEO are eliminated.

Managers are given a simple mission. Run the business as if:

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Power Spot For Buffett’s Urn

Joke by Warren Buffett:

Whatever the future holds. I make you one promise. I’ll keep 99% of my networth in Berkshire for as long as I am around. How long will that be? My model is the loyal democrat in Fort Wayne who asked to be buried in Chicago so that he could stay active in the party. To that end, I’ve already selected a “power spot” at the office for my urn.

A Warren Buffett Special on U.S. News

The August 6, 2007 print edition of U.S. News & World Report had a 10-page special on Warren Buffett. Here are some snippets:

…Continue reading » A Warren Buffett Special on U.S. News

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