Warren Buffett's annual shareholder letter is out, and we look at what LBYM means.
One of the best reads of the investing year is Warren Buffett's annual letter to Berkshire Hathaway shareholders. Unlike the annual reports put out by most companies, which tend to be full of stiff and stuffy corporate-speak where the most negative thing you'll be likely to read is that things are 'challenging', Buffett just tells it like it is. Over the years he has included many gems of wisdom, and as Kirkie001 has pointed out, the latest letter is out...
"Interestingly, it's only the second time in the last 10 years he's underperformed the S&P 500. The previous year, with the depths of the credit crunch related falls to contend with, however, was a significant outperformance."
The whole thing is highly recommended for those who simply want to improve their understanding of stock market investing, so do have a read and follow the links. As Kirkie001 says...
"As always, Buffet is following his own recommendation of clear, concise communication, and I'll be printing the letter off to read at my leisure over tomorrow morning's coffee. Better than the codswallop that I usually have to contend with in the Sunday papers."
Full circle
Dealing with debt can be hard, and the first step is often the painful one of having to accept some hard home truths -- what Foolish regulars often refer to as the 'lightbulb moment'. And that's what Jaffacinnabar faced back in 2005...
"I first posted on this board in 2005 when I realised I was getting into debt. To cut a long story short I was told some home truths and this lead to lots of big decisions including a personally heart-wrenching decision to sell my horse so that I didn't continue to get further into debt."
How have things turned out, five years on?
"Thanks to these guidelines and your fabulous advice we are not only finishing renovating the house we own in Australia (and are within AUD$25k of paying off the mortgage), we are also getting married in August this year (will all be paid in cash from savings) and finally the really really exciting news....my new horse is arriving in 3 days time (also paid for in cash and running costs all budgeted in)."
Now that is the kind of success story we love to read.
Use them or lose them
Britain's vast string of libraries are a great public resource, giving people access to far more books than they could possibly afford to buy. But Satsumaa worries that their days might be numbered...
"Ages ago I wrote a post about libraries and my then-rekindled love affair with them. I was really heartened to see so many people feeling the same way, but I am really rather sad that these invaluable resources are potentially in line for budget cuts as the public spending axe falls. So this is part anecdote, part plea to remind people about them and the never-a-truer-word-spoken 'use them or lose them'."
Are you saddened that people seem to be more interested in the daily antics of various groups of nonentities on so-called reality TV than they are in libraries? Well, you know what to do -- go read a book. And feel free to offer your thoughts on the thread.
LBYM
Talking of cheap resources, like those libraries that Satsumaa is so passionate about, is stock-in-trade for our "Living Below Your Means" board (known to the regulars as LBYM).
It covers everything from discussing how to plan a long-term budget in accordance with your income, to swapping tips on the latest bargains from the supermarkets. There's a handy guide to using the board here, which includes links to other people's ideas about the LBYM concept.
Last week's roundup: Community Share Picks For 2010
