2008-02-29 – Friday – Berkshire’s shares were worth U.S. $140,000 EACH – this is a 30% increase within 12 months!
The Sage calls time on insurance party and points out to shareholders to ‘… be prepared for lower insurance earnings for the next few years.’
Nonetheless, Berkshire’s potential problems seem pale in comparison with the disastrous choices made by others in financial services.
What is interesting is not just how Warren Buffett makes money but, as well, how well he uses new media to get his message across.
HOW DOES BUFFETT USE THE WEB
Buffett’s Berkshire acquired Business Wire in March 2006. This firm pushes press releases to the media and much more. Business Wire President and CEO Cathy Baron Tamraz has argued strongly against firms using their websites for earnings disclosure. In fact, she was one of the fiercest critics of Sun Microsystems last year when the company asked the Securities and Exchange Commission to recognize that posting disclosure documents on company websites can meet the requirements of Regulation FD.
Business Wire’s owner, Berkshire chose not to listen to Business Wire. It published a short earnings release last November (638 words). Investors were referred to the complete report (disclosures) on the company’s website. Get the full story here from the IR Web Report:
Earnings releases the Warren Buffett way
Nevertheless, not only uses Buffett the web for financial disclosure information, his annual shareholder report is also exemplary when it comes to straight talk. It is refreshingly short.
This year’s shareholder report is again without fancy graphics.
On p. 22, the shareholder report concludes with this paragraph:
‘At 84 and 77, Charlie and I remain lucky beyond our dreams. We were born in America; had terrific parents who saw that we got good educations; have enjoyed wonderful families and great health; and came equipped with a “business” gene that allows us to prosper in a manner hugely disproportionate to that experienced by many people who contribute as much or more to our society’s well-being. Moreover, we have long had jobs that we love, in which we are helped in countless ways by talented and cheerful associates. Every day is exciting to us; no wonder we tap-dance to work. But nothing is more fun for us than getting together with our shareholder-partners at Berkshire’s annual meeting. So join us on May 3rd at the Qwest for our annual Woodstock for Capitalists. We’ll see you there.
Download the less than 500 KB pdf file right here. It is a masterpiece of public relations and straight talk, refreshing:
BERKSHIRE HATHAWAY INC. SHAREHOLDER LETTER 2007
The above also illustrates nicely how one can communicate more effectively using the web or social media. Always interesting when older people show the younger folks how to do it better.
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