Buffett's Annual Letter: Insight into the 'Three Pillars' of Berkshire's Intrinsic Value

Ravi Nagarajan submits:Warren Buffett released his annual letter to shareholders (.pdf) this morning along with Berkshire Hathaway’s 2009 annual report (.pdf). Our full package of analysis on Berkshire Hathaway will be available soon as part the Berkshire Hathaway 2010 Briefing Book.

Each year Warren Buffett and Charlie Munger answer questions in front of crowds of tens of thousands of Berkshire Hathaway shareholders in Omaha, Nebraska. The question and answer sessions provide great wisdom on economics, investing and management. Here are some of the highlights I have found from the meeting yesterday. Buffett, Munger praise Google’s ‘moat’

By Morningstar: With Berkshire Hathaway's (BRK.A) annual meeting--the Woodstock of Capitalism--set for Saturday, May 4, many investors are preparing to flock to Omaha once again to hear pearls of wisdom both from Berkshire's chairman Warren Buffett and vice chairman Charlie Munger.

Warren Buffett, America’s most famous investor, holds himself to a high standard. That’s why he described 2012, a year in which his conglomerate Berkshire Hathaway achieved a total gain for its shareholders of $24.1 billion, as “subpar.” As Buffett pointed out, for the ninth time in 48 years, Berkshire’s book value gain (14.4%) was less than the S&P’s gain (16%). This mea culpa of sorts kicks off Buffett’s annual letter, which was released on Friday.

Warren Buffett, America’s most famous investor, holds himself to a high standard. That’s why he described 2012, a year in which his conglomerate Berkshire Hathaway achieved a total gain for its shareholders of $24.1 billion, as “subpar.” As Buffett pointed out, for the ninth time in 48 years, Berkshire’s book value gain (14.4%) was less than the S&P’s gain (16%). This mea culpa of sorts kicks off Buffett’s annual letter, which was released on Friday.

Warren Buffett continues to write his excellent annual shareholder letter. It is a pleasure to read them every year. I have selected a few passages to include:

By Carlos X. Alexandre:cThis morning Berkshire Hathaway (BRK.A) announced that it would buy back some stock, according to Bloomberg, qualifying the intended purchase by stating that up to a 10% premium over book value would be paid.