360° Coverage : Berkshire Hathaway's 1966 Letter To Shareholders

2 Updates
Berkshire Hathaway's 1966 Letter To Shareholders
Photo Credit: Forbes Business

Berkshire Hathaway's 1966 Letter To Shareholders

Mar 3 2014, 10:47am CST | by

I cast my peepers over Berkshire Hathaway’s 1966 shareholder letter this weekend, and based on my analysis, I am rating it a STRONG BUY/OUTPERFORM.  You can purchase the stock for under $20 per...

Filed under: news


32 weeks ago

Berkshire Hathaway's 1966 Letter To Shareholders

Mar 3 2014, 10:47am CST | by

I cast my peepers over Berkshire Hathaway’s 1966 shareholder letter this weekend, and based on my analysis, I am rating it a STRONG BUY/OUTPERFORM.  You can purchase the stock for under $20 per share as of 12/13/1966.

I know what you’re thinking.  ”Phil — a famous Benjamin Graham cracker like you — have you been smoking LSD?  Why would we buy a stock that is in outer space?  Just a couple of years ago it was selling for under $10.  Wait for it to come back down to earth, man.   After all, we’re safe as houses with Nifty-Fifty stocks like Polaroid and Sears.”

Ordinarily, I would agree with you.  But I am in possession of some inside information.  This stock is the lost Dutchman mine of Blackbeard’s Knights Templar.  Send in your box top and score all you can.  If you don’t, you’ll be bummed out.

Berkshire has recently come under the thumb of a  crew-cut whiz-kid named Warren Buffett, who hails from Omaha, Nebraska.  I have it on good authority that he ghost-wrote the annual letter.   Now I don’t know his motives — maybe he wants to become the “Textile King” and tool around in a Sedan Deville and bellbottoms.   But — maybe not.

What’s his bag?  Buffett runs an investment partnership that has posted some bodacious numbers.   This cat’s one groovy stock picker.  And look what he says right here in his letter: “…the Company has been searching for suitable acquisitions within, and conceivably without, the textile field.”  The company includes in its working capital “ …$5.4 million of marketable securities, composed of short-term municipal bonds, commercial paper, and common stock.

Then he lays it on us with a Beatle beat.  Buffett says, “
…it is the present intention of the directors to proceed toward the interim investment of a major portion of these funds in marketable common stocks . . . to participate in earnings derived outside of our textile business.”/>

Let me beam young Buffett a brainwave.  The rag business is nowheresville.  Take whatever earnings you can scrape together and allocate your capital elsewhere.  For example, have you considered insurance?  What about credit cards and newspapers and utilities and railroads?  Good Golly Miss Molly, even a candy company will do better than these ancient textile mills.

Berkshire has announced a very mellow dividend of ten cents per share.  Don’t Bogart that dividend, Warren!   Fat chance: I confidently predict this dividend will rise every year for decades to come.  You can write that one in Day-Glo.

Meanwhile…I’m thinking: Buffett might shutter his private investment partnership in a few years.  Then he could take the helm of Berkshire Hathaway full-time.  At that point, his psychedelic noodling will go straight to Berkshire’s bottom line.  If I’m right, one day his annual meeting could even become known as the ‘Hootenanny of Capitalism.’

* * *

[Note to Readers: I came up empty this week so I am recycling an old column from the archives.]

Source: Forbes Business


6 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (N ...
Source: Business Times Singapore   Full article at: Business Times Singapore


7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the doub ...
Source: Business Times Singapore   Full article at: Business Times Singapore


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

Red wine stimulates spinal bone density in men
London, Oct 17 (IANS) Resveratrol, a natural compound found in red wine and grapes, increases spinal bone density in men with metabolic syndrome, says Danish researchers, adding that this holds promise as a treatment for osteoporosis.
Jet lag can make you fat
London, Oct 17 (IANS) Frequent fliers should read this. According to researchers, disruption of the circadian clock alters the rhythms and composition of the microbial community in the gut, leading to obesity and metabolic problems.
Engineers 'lose' to reap laser gains
Washington, Oct 17 (IANS) Engineers at Washington University in St. Louis have shown a new way to reverse or eliminate energy loss in optical systems by, ironically, adding loss to a laser system to actually reap energy gains.
Diabetics with low testosterone risk heart disease
Washington, Oct 17 (IANS) Low testosterone could increase risk of heart disease in men with diabetes, research shows.

Latest from the Network

Bush shoe-tossing painting hits record at Doha auction
Doha, Oct 15 (IANS/EFE) A controversial painting by Iranian artist Mahmud Obaidi, depicting an Iraqi journalist throwing shoe in 2008 at then US president George W. Bush, was sold for $62,500 at a Sotheby's auction in...
Read more on Celebrity Balla
US offers $45 mn bounty for eight terror leaders
Washington, Oct 15 (IANS) The US said Tuesday it is offering rewards totalling up to 45 million dollars for information on eight key leaders of the Al Qaeda in the Arabian Peninsula (AQAP) terrorist organisation. The...
Read more on Politics Balla
UNSC extends peacekeeping mission's term in Abyei
United Nations, Oct 15 (IANS) The UN Security Council (UNSC) has renewed the mandate of the UN peacekeeping mission in the Abyei border region between Sudan and South Sudan. In an unanimously adopted resolution, the...
Read more on Politics Balla
Ebola cases in West Africa could reach 10,000 per week: WHO
Geneva, Oct 15 (IANS) The World Health Organisation (WHO) has warned that the Ebola epidemic in West Africa could reach 5,000 to 10,000 cases per week by the first week of December. "Quite frankly, ladies and...
Read more on Business Balla
Turkey, Singapore sign strategic partnership agreement
Ankara, Oct 15 (IANS) Turkey and Singapore have signed a strategic partnership agreement to boost economic, political and cultural cooperation, as well as security collaboration, during the official visit of...
Read more on Politics Balla
Christina Aguilera is returning to 'The Voice' USA
Christina Aguilera will return to 'The Voice' USA next year. The 'Your Body' hitmaker, who previously shared a rotating spot on the judging panel with Shakira, has been replaced by Gwen Stefani this season as she is...
Read more on Celebrity Balla
Kesha's music producer hits back
Kesha is being countersued by her record company boss, Dr. Luke. The 41-year-old music producer, who runs Kemosabe Records, claims the 27-year-old 'Tik Tok' singer is a liar and is trying to extort him after she accused...
Read more on Celebrity Balla
Jason Derulo won't get back together with Jordin Sparks
Jason Derulo insists his split from Jordin Sparks is permanent. The 'Talk Dirty' hitmaker, who recently ended his relationship with the 'No Air' singer after three years of dating, has ruled out getting back together...
Read more on Celebrity Balla
Josh Groban feels 'very lucky' to be dating Kat Dennings
Josh Groban feels ''very lucky'' to be dating Kat Dennings. The 'Brave' hitmaker was very nervous before singing in front of the '2 Broke Girls' actress for the first time at the Carousel of Hope Ball in Beverly Hills,...
Read more on Celebrity Balla
Australian Richard Flanagan wins 2014 Man Booker prize
London, Oct 15 (IANS) The first Man Booker prize to allow American nominees was Tuesday night won by an Australian, with Richard Flanagan triumphing for a novel of love and war that tells the harrowing stories of...
Read more on Celebrity Balla